Audit, Finance and Enterprise Committee Meeting Mon 01 July 2019

This meeting was done and over with in 33 minutes:
Remarkable. But then again, it's more like what some people say is "business-as-usual". 4 audits not completed.
A review provides limited assurance on an organization's financial statements. ... This “does it make sense” analysis is useful when the organization needs some assurance about their financial statements, but not the higher level of assurance provided by an audit

> Chairperson Duff called the meeting to order at 4:00 p.m,
> There were no items from citizens present.
> It was moved by Committeemember Freeman, seconded by Committeemember Luna, that the recommended Audit Plan proposal for FY 2019/20 be forwarded to full Council for approval
Upon tabulation of votes, it showed:
AYES - Duff-Freeman-Luna

NAYS - None

> Chairperson Duff declared the motion carried unanimously by those present

> Without objection, the meeting adjourned at 4:33 p.m.

Jennifer Duff - Chairperson
Mark Freeman
David Luna
Christopher Brady - Ex Officio
________________________________________________________________________

File #:

19-0771

Type:

Presentation

Status:

Agenda Ready

In control:

Audit, Finance and Enterprise Committee

On agenda:

7/1/2019

Title:

Hear a presentation and discuss the following audits: 1. Development Services Fees and Charges 2. Facilities Contract Monitoring (Follow-Up Review) 3. Police Supplies and Equipment (Follow-Up Review) 4. CDBG Contract Monitoring (Follow-Up Review) 5. FY 2019 Citywide Cash Funds

Attachments:

1. Presentation 2. Development Services Fees & Charges 3. Facilities Maintenance Contract Monitoring Follow-up Review 4. MPD Supplies and Equipment Follow-up Review 5. CDBG Contract Monitoring Follow-up Review 6. FY2019 Citywide Cash Funds

_______________________________________________________________________

File #:

19-0772

Type:

Presentation

Status:

Agenda Ready

In control:

Audit, Finance and Enterprise Committee

On agenda:

7/1/2019

Title:

Hear a presentation, discuss, and provide a recommendation on the proposed Audit Plan for FY 2019/20.

Attachments:

1. Presentation 2. FY 2020 Audit Plan

______________________________________________________________________

PROPOSED AUDIT PLAN FY 2019/2020
Mission 
The City Auditor’s office provides audit, consulting, and investigative services to identify and minimize risks, maximize efficiencies, improve internal controls and strengthen accountability to Mesa’s citizens. 

Audit Plan Purpose and Considerations 
The Audit Plan is a Council-approved document which outlines the planned activities of the City Auditor’s office for the year.

Factors considered when selecting audits may include:
• Requests or suggestions received from the City Council or City Manager.
• Statutory mandates and/or volume of regulations (highly regulated vs. unregulated).
• Prior audit history or lack thereof. 
• Activities commonly susceptible to fraud.
• Complexity of operations, significant changes in operations, or high turnover.
• Cash handling volume and number of locations.
• Impact and likelihood of potential adverse events (risk management/control failures).

The Audit Plan intentionally exceeds our capacity by approximately 20%, in order to provide flexibility to adjust the timing of a project to accommodate the needs of the client, while also managing our resources most efficiently.

Audits which are not completed in the current year may be carried forward to the next year, as is the case with four of this year’s audits*. 
Audits Planned for FY 2019/2020 
Audit Subject Area Initial Objectives
4 NOT COMPLETED

* Business Services/ Purchasing Division – Procurement Processes 
Determine whether effective controls are in place to prevent or detect errors, fraud, waste, or abuse, and ensure compliance with policies, statutes, and other applicable requirements.
* Fire & Medical – Transport Services & Billing
Determine whether effective controls are in place to ensure all eligible costs are recovered, billing services meet contract terms, and other financial risks are mitigated. 
* HR/Employee Benefits – Claims Admin. Contract 
Determine whether effective controls are in place to ensure accuracy, compliance, and performance expectations are being met.
* Utilities – Metering Processes
Determine whether effective controls are in place to ensure usage is accurately metered and recorded for billing purposes.
______________________________________________________________________
FINDINGS:
Development Services –Fees and Charges
Follow-up Review
5
What did we find?
• Cash handling controls need improvement.
• Fees and charges not updated in DIMES
• Manual changes to permit fees are not monitored.
• System access administration needs improvement
• Internal audit process needs improvement.

> Fees and Charges Follow-up Review
8
System Access
• Implement controls to remove access for terminated/transferred employees.
Internal Monitoring
• Develop a more effective audit process
• Staff training
• Standard forms and procedures
• Follow-up process
-----------------------------------------------------------------------------------------------------------------------
Facilities Maintenance Contract Monitoring Report Date: 04/25/2019
A follow-up review to ensure action plans were successfully implemented.

Police Department Supplies & Equipment Report Date: June 19, 2019
A follow-up review to ensure action plans were successfully implemented.
____________________________________________________________________