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THEN.[Audit Committee Meeting on June 15, 2021.]
GOOD AFTERNOON, EVERYONE.AND WELCOME TO THE JUNE 15TH, 2021 MEETING OF THE GARLAND CITY COUNCIL AUDIT COMMITTEE.
I AM CHAIR OF THE COMMITTEE WITH ME.
I HAVE DEPUTY MAYOR PRO TEM, DEBRA MORRIS AND COUNCIL MEMBER, BJ WILLIAMS, ALONG WITH OUR CITY AUDITOR, UH, CHAD JOHNSON, AND A NUMBER OF OTHER LUMINARIES LET'S GET RIGHT TO THE AGENDA.
UH, FIRST ITEM ON THE AGENDA IS APPROVAL OF THE MARCH 15TH, 2021 MEETING MINUTES.
UM, CAN WE, CAN WE TURN OFF THE SCREEN SHARE PLEASE? THANK YOU.
UM, UH, HAS EVERYONE HAD A CHANCE TO REVIEW THE MINUTES? YES.
DO WE HAVE A MOTION TO APPROVE ALL THOSE IN FAVOR? AYE.
THE MINUTES ARE APPROVED UNANIMOUSLY.
MOVING ON TO ITEM NUMBER TWO, THE POLICE SCHOOL RESOURCE OFFICER SRO PROGRAM.
CHAIRMAN AUDIT COMMITTEE MEMBERS TEST.
UH, AS YOU MAY REMEMBER, THIS AUDIT WAS REQUESTED BY OUR PRIOR COUNCIL MEMBER, COUNCILMAN GIVENS, AND APPROVED BY THE CITY COUNCIL BACK IN SEPTEMBER OF 2020.
UH, THERE ARE TWO OBJECTIVES FOR THIS AUDIT.
PLUS ONE WAS TO VERIFY THAT THE SERVICES PROVIDER AND PAYMENTS RECEIVED ARE IN ACCORDANCE WITH THE TERMS AND CONDITIONS LISTED IN THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY.
AND GISP PART TWO IS TO IDENTIFY THE ACTUAL CITY COST TO PARTICIPATE IN THE PROGRAM.
UH, THE SCOPE OF THE AUDIT COVER, UH, GST INVOICING ACTIVITY AND SRO EXPENDITURES ON FISCAL YEAR 19 AND 2020.
MANY OF YOU ARE AWARE THE CITY ENTERED INTO THIS AGREEMENT BACK IN.
I BELIEVE BACK IN NINTH, IT'S BEEN A LONG TIME.
UH, SINCE THEN THIS PROGRAM HAS, UH, EXPANDED AND, UH, WE HAVE A GREAT RELATIONSHIP WITH THE GARLAND INDEPENDENT SCHOOL DISTRICT.
UM, OUR POLICE DEPARTMENT PROVIDES, UH, ABOUT 35, SEVERAL OFFICERS, UH, UM, FOR, UM, UH, GSP HIGH SCHOOL, MIDDLE SCHOOLS AND ELEMENTARY SCHOOLS.
IN ADDITION TO THAT, THE OFFICERS WHO WORK AT SPECIAL EVENTS AND ATHLETIC EVENTS SUCH AS APPLE HAVING HUMANS.
AND I BELIEVE SHE, BRIAN IS HERE.
AND ALSO SAVANNAH, I DO WANT TO THANK THE, THE POLICE DEPARTMENT FOR ALL THE ASSISTANCE THAT WE RECEIVED DURING THIS AUDIT TED DIMITRA, WHICH, UH, CONDUCTED THIS AUDIT.
SO I'M GOING TO TURN THIS OVER TO HIM.
HE'S GONNA GET YOU SOME MORE BACKGROUND AND ALSO AS WELL AS, UH, COLOR THE FINDINGS AND RECOMMENDATIONS THAT WE'VE HAD.
JEN ALREADY SAID EVERYTHING I WAS GOING TO.
SO IF WE DON'T HAVE ANY QUESTIONS, I GUESS WE CAN GO ONTO THE NEXT AGENDA.
SO, UH, AGAIN, SO, UH, IS WHAT I'D LIKE TO DO IS TO, UH, THANKS TO VANNA FOR ENDURING ALL THE QUESTIONS AND, UH, UH, RELATE THAT I HAD RELATED TO THIS, UH, AUDIT.
AND I THINK JARED HAD ALREADY TALKED ABOUT SOME OF THE BACKGROUND AND, UH, BUT I'M GOING TO ADD A LITTLE BIT MORE TO IT.
AND LIKE YOU SAID, THAT, UH, WE HAVE ABOUT 35, UH, PERSONNEL GENDER SIGNS IN THE SRO AND THAT, AND THE MEMO OF UNDERSTANDING OR THE MOU ALLOWS US TO COST SHARE OF THE SALARY, THE REGULAR SALARY BENEFITS AND OVERTIME.
AND CURRENTLY, UH, THERE W UH, THE WAY THAT'S MADE UP, WE HAVE EIGHT, UH, OFFICERS THAT ARE, UH, CHARGED A HUNDRED PERCENT AND 27 OFFICERS AND ONE ADMIN THAT ARE CHARGED 50%.
AND THEN OF COURSE, ON ANY OVERTIME THAT IS USED, WE GET TO CHARGE THAT A HUNDRED PERCENT AND THE MOU, AS IT WAS STATED DURING YOUR COURSE OF THE AUDIT, UH, DOES NOT CONTAIN ANY, UH, COST SHARING LANGUAGE FOR NON-PAYROLL EXPENDITURES.
AND I THINK THIS WAS PART OF, UM, ONE OF THE THINGS THAT COUNCILMAN GIVENS WAS ON.
SO IF I CAN GIVE A LITTLE BIT MORE ON THIS, I LIKE TO POINT OUT THAT THE CHART ON PAGE FIVE,
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JEN, DO I NEED TO GO THROUGH THE, UH, SCOPE AND METHODOLOGY? OKAY.SO, UH, THE CHART ON PAGE FIVE ON THIS IS KIND OF A PRE-COURSE TO WHAT WE'LL, WHAT I'LL TALK ABOUT FROM THE AUDIT ITEMS. AND I JUST WANTED TO POINT OUT ON THIS IS THAT WE KIND OF HAVE THREE DIFFERENT CALENDARS THAT WE HAVE TO DEAL WITH.
I SHOULD SAY, THEY'RE NOT WE, THAT SAMANTHA GETS TO HAVE FUN WITH.
AND, UH, THAT'S THE GIS D SCHOOL YEAR, WHICH GOES FROM AUGUST TO JULY, BUT SHE ACTUALLY STARTS PREPPING IN MARCH FOR THEIR, UH, FOR THEIR BUDGET.
SO SHE ACTUALLY STARTS THIS WAY BACK IN MARCH.
AND THEN WE, OF COURSE, WE'D HAVE THE GARLAND'S FISCAL YEAR FROM, UH, UH, OCTOBER THROUGH, UH, UH, SEPTEMBER.
AND THEN WE HAVE ANY THIRD PARTY CALENDARS AND THIRD PARTIES AND HAVE A CALENDAR YEAR, AND THAT WOULD BE LIKE TM ARRESTS, OR EVEN FROM AN INSURANCE PERSPECTIVE.
AND SO, UH, UH, ANY QUESTIONS ON THERE? OKAY.
SO THERE ARE THREE ITEMS THAT I'D LIKE TO GO AHEAD AND PRESENT TODAY.
AND THE FIRST ALBUM IS THE BENEFITS CALCULATION.
SO, UH, LIKE I ALREADY MENTIONED, THE MOU ALLOWS FOR US TO CHARGE, UM, BENEFITS, WHICH IN THIS CASE AS A T ON REST RATES AND THE HEALTH INSURANCE RATES ON ANY PAYROLL EXPENDITURES CANES, AND, UH, UH, I MENTIONED THE CALENDARS AND IT HAS AN IMPACT ON THESE CALCULATIONS BECAUSE SAVANNAH STUFF WAY BACK IN MARCH, BUT ALL OF THE STUFF THAT SHE GETS IS DERIVED FROM EITHER PRIOR YEARS ARE FROM THE BUDGET, UH, FROM THE BUDGET DEPARTMENT.
AND SO CONSEQUENTLY, MOST OF THE RATES USED ARE A PRIOR YEAR, OUR BUDGET AMOUNT THAT THAT HAS BEEN DETERMINED, BUT IT'S NOT THE ACTUAL RATES.
AND SO THAT'S ALL OKAY TO COME UP WITH SOME ROUGH NUMBERS AND EXCUSE ME FOR THE BENEFITS.
BUT SO THE, THE ISSUE ON THIS CASE WAS THAT IF THOSE RATES CHANGE, WE DON'T ALWAYS GO BACK AND CORRECT ANY PRIOR INVOICES OR CHANGE THE RATE GOING FORWARD.
SO FOR THE TMRMS RATE, YOU CAN SEE IN THIS CHART HERE, THEY DON'T FLUCTUATE THAT MUCH, AND IT'S NOT THAT BIG OF A DEAL.
SO OVER THE COURSE OF THE AUDIT PERIOD, WE'RE TALKING ABOUT $4,000.
SO THAT'S NOT THAT THAT'S, THAT'S NOT A LOT OF MONEY, BUT WHEN WE, WHEN WE GET TO THE HEALTH INSURANCE, THOSE RATES CAN FLUCTUATE A LITTLE BIT MORE.
AND AS WHAT HAPPENS AGAIN, THESE RATES COME FROM THE BUDGET DEPARTMENT, AND THERE'S ONE RATE THAT THE, THAT THE BUDGET DEPARTMENT AND CORRECT ME IF I'M SAYING THIS WRONG, ALISON, UH, BUT, UH, THERE'S ONE RATE THAT APPLIED TO ALL EMPLOYEES THROUGHOUT THE CITY.
SO IN THIS CASE, LET'S LOOK AT FISCAL YEAR 19 OR 20, THAT WAS 11 TO 75.
SO THAT GOES TO ALL DEPARTMENTS, UH, THROUGHOUT THE CITY, REGARDLESS OF WHAT BENEFIT CLASS YOU ACTUALLY.
AND SO YOU CAN SEE ON THIS NEXT CHART HERE, WHERE THIS IS JUST AN EXAMPLE FROM 2020.
SO YOU CAN SEE THAT HERE'S THE DIFFERENT TYPES OF COVERAGE CHARGES, DEPENDING ON THE SINGLE MARRIAGE.
YOU HAVE JUST A FAMILY SPOUSES, WHATEVER IT IS, BASE OR PREMIUM.
AND SO IN THIS CHART RIGHT HERE, UH, RELATE TO JESSIE SRO PERSONNEL.
AND YOU CAN SEE HERE THAT THERE WAS ONLY ONE PERSON WHO HAD THE BASE FILES AND THEY WERE CHARGED LIM 75, BUT THAT ACTUAL COST ON THAT WOULD BE 1330.
SO AGAIN, WHEN WE CHARGE OUR, WHEN WE'RE INVOICING, WE'RE INVOICING AT THAT 11 TO 75.
SO OVER THE COURSE OF THE YEAR FOR 2020, YOU CAN SEE A, A DIFFERENCE ON, ON THAT OF ABOUT $40,000 OVER THE COURSE OF A YEAR.
AND SO, AS WHAT WE DID, WE RECOMMENDED THAT, UH, UH,
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THAT, UH, UH, GPD WORK WITH GIF D TO DEFINE AN ACCEPTABLE METHODOLOGY, TO CALCULATE THE BENEFITS IN THE MOU, AND THEN TO UPDATE THE PROCESS, TO REFLECT ANY METHODOLOGY CHANGES, ARM RATE CHANGES IN THAT CASE, AND, UH, UH, GPD CONCURRED WITH THE ISSUE AND IS WHAT THEY DO IS SEND A LETTER OUT.UH, WHEN, UH, WE, WHEN WE SEND A BUDGET TO THEM AT THE BEGINNING OF THE YEAR, UH, THE BUDGETING PROCESS, WE SEND A LETTER OUT THERE THAT SAYS THAT THERE MAY BE POTENTIAL CHANGES, AND THAT IF THERE ARE ANY CHANGES, THEY WILL GO AHEAD AND RE INVOICE FOR THE CORRECT AMOUNTS, ANY, UH, QUESTIONS OR COMMENTS ON THAT ONE?
THEN HERE IS THE, UH, LIKE I MENTIONED, AND THIS IS ALL RELATED TO NON-PAYROLL SRO EXPENDITURES.
LIKE I MENTIONED, THE, THE MOU ONLY ALLOWS FOR MS. EXCUSE ME, MR. CHAIR.
I CAME IN LATE AT A QUESTION, PLEASE HERE.
ARE, WOULD YOU GO BACK TO THE PREVIOUS SCREEN WHERE YOU HAD INPUT THERE, WHERE YOU HAD IMPLEMENTATION DATE? CAN YOU SCROLL UP A LITTLE BIT? OKAY.
IMPLEMENTATION DATE AND YOU YOU'VE GOT, IT'S GOING, SCROLL DOWN, SCROLL DOWN, PLEASE.
OR THE IMPLEMENTATION DATE IS MENTIONED.
WHERE IS THAT? IT'S PAGE 10 AND PAGE 10.
I WAS LOOKING FOR A DATE, RIGHT? LOOKING AT YOUR RECOMMENDATION THERE.
AND THEN THE IMPLEMENTATION DATE IS OWN GOING.
MY QUESTION IS, IS THAT NORMAL? WHY DON'T, WHY ISN'T THERE A TARGET.
IF WE'RE USING AN, AN ONGOING IMPLEMENTATION IMPLEMENTATION DATE, AT WHAT POINT DO WE GO BACK AND ASSESS THAT THE APPROPRIATE ADJUSTMENTS HAVE BEEN MADE TO MINIMIZE THE VARIANCES BETWEEN, UH, BETWEEN, UM, WHAT'S, WHAT'S ACTUAL AND, AND, UH, WHAT, UH, WHAT WE ARE ACTUALLY BEING REIMBURSED FOR AND WHAT, WHAT IT'S ACTUALLY COSTING US.
SO HOW, HOW CAN THIS, MY QUESTION IS HOW CAN, HOW CAN WE TRACK AND EVALUATE BASED ON AN ONGOING IMPLEMENTATION DATE? COUNCILMEN, I BELIEVE, UH, CHIEF BRIAN, CORRECT ME IF I'M WRONG, ONGOING MEANS THEY WILL EVALUATE THIS ON AN ANNUAL BASIS.
SO EVERY YEAR THEY WILL COMPARE THE BUDGET WITH THE ACTUAL THAN THE ACTUAL ARE MORE THAN THE BUDGETED COSTS.
THEY WILL GO AHEAD AND REACH OUT TO GIS D TO OBTAIN THAT ADDITIONAL FUNDING FROM THEM.
I BELIEVE THAT'S WHAT IT MEANS BY ONGOING.
WE'LL BE ADJUSTING THROUGHOUT THE YEAR AS THE, AS THE RAGING.
THAT, THAT CLEARS IT UP JUST ANNUALLY MEANS MEAN SOMETHING TELLS ME IT'S MORE SPECIFIC THAN ONGOING THAT, THAT, I GUESS WE'RE JUST TALKING ABOUT LANGUAGE THERE, BUT I WAS CONCERNED ABOUT THE TRACK, THE TRACKING AND OUR FREQUENTLY, WE WERE MAKING THAT ADJUSTMENT.
SO WHAT YOU'RE SAYING TOO, THEY SAID THAT'S LOOKED AT ON AN ANNUAL BASIS SET CORRECTLY.
IT'LL BE OCTOBER 1ST WILL BE ONE DAY, JANUARY 1ST, THE NEW YEAR WILL BE A DAY.
SO WE, MULTIPLE TIMES THROUGHOUT THE YEAR, WE WILL ADJUST THAT.
AND IF THERE ARE ANY CHANGES, THEN THEY'LL MAKE THOSE CHANGES DURING THE YEAR AS WELL.
IS THAT CORRECT? YEAH, THAT'S CORRECT.
WE'LL MAKE THOSE CHANGES DURING THE YEAR WHEN THAT ADJUSTMENT NEEDS TO BE MADE.
THANKS VERY MUCH THAT CLEARS IT UP.
THANK YOU, MR. CHAIR, CAN YOU, SO THIS IS, UH, LIKE I MENTIONED, THAT THE MOU DOES NOT PROVIDE FOR NON-PAYROLL EXPENDITURES.
SO THE GOOD PART ON THIS IS THAT WHEN WE SAY NON-PAYROLL, WE'RE TALKING PRIMARILY VEHICLES, WEAPONS,
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AMMUNITIONS, UNIFORMS, TRAINING, AND OTHER MINOR CHARGES THAT ARE ATTRIBUTABLE TO A TOTAL OFFICER COSTS.AND BY FAR BY FAR, THE TOTAL COST IS THE SALARIES AND THE OVERTIME AND THE BENEFITS.
AND, AND THEN GOING FORWARD, UH, I'M JUST KIND OF SKIPPING AHEAD A LITTLE BIT HERE.
THEY ARE, INCLUDING THEY ARE INCLUDING A PHASED IN APPROACH TO THE VEHICLES, TO CHARGING VEHICLES AS WELL, VEHICLE COSTS.
SO WE'VE GOT 99% COVERED FOR THE MOST PART, BUT WHEN WE WENT TO GO DO OUR ANALYSIS, WE CAN, WE COULD VALIDATE EVERYTHING FROM THE PAYROLL THAT WE'RE CHARGING ACCORDINGLY, UH, AS, OR THAT WE'RE CHARGING AS WE SHOULD.
AND I SAID, SINCE WE HAVE NOT BEEN CHARGING ANY OTHER COSTS, WE, UH, FOUND OUT THAT THE, UM, UH, WHAT THE COST OF THE VEHICLES WERE, UH, FROM THE FLEET DEPARTMENT, WE OBTAINED THAT FROM TERRY'S GROUP.
AND THEN WHEN WE LOOK AT THE OTHER ITEMS, THE OTHER ITEMS, THE WAY, THE WAYS OF THE POLICE DEPARTMENT, WITHOUT GETTING INTO TONS OF DETAIL, THEY HAVE DIFFERENT COST CENTERS WHERE THEY CHARGE EVERYTHING TO.
SO LIKE SRO HAS THEIR OWN COST CENTER, BUT FOR THINGS THAT ARE BAR BOUGHT IN BULK OR ACROSS THE DEPARTMENT MAY GO TO A DIFFERENT COST CENTER AND THOSE ITEMS. SO I CAME IN THERE, SHE KNEW UNIFORMS, WEAPONS, AND TRAININGS THERE IN THOSE COST CENTERS.
AND THAT'S NOT, IT'S NOT FEASIBLE TO TRY TO MAINTAIN THOSE COSTS FOR EACH DEPARTMENT WITHIN THE, WITHIN GPD.
AND THEN AS YOU CAN SEE FROM VARIOUS CONVERSATIONS WE'VE HAD WITH THE CHIEF AND, UH, AND HIS DEPARTMENT THAT THE MAJORITY OF THE AMMUNITION IS USED BY SWAT AND BY ROOKIES AND THE SRO, OFFICER'S ONLY USED A SMALL AMOUNT EVERY YEAR, JUST FOR TRAINING.
AND SAME THING FOR UNIFORMS IS THAT ROOKIES GET EVERYTHING FULLY OUTFITTED IN AT THE BEGINNING, BUT THE SRO PEOPLE ARE MORE TENURE AND THEY ONLY GET AN, A UNIFORM EVERY FIVE YEARS.
SO THERE'S NO ANNUAL COST TO THAT FOR THE MOST PART.
AND THEN THE SAME THINGS WITH WEAPONS, THOSE ARE ONLY REPLACED ON AN AS NEEDED BASIS AND THEN TRAINING THAT GOES TO ALL OFFICERS, UH, ALL OFFICERS, UH, THROUGHOUT THE YEAR, AND THEN THAT'S REQUIRED.
SO IT WAS, WE WEREN'T ABLE TO, BY LOOKING AT ALL THE NUMBERS, THERE WASN'T ANYTHING THAT WE CAN COME UP WITH THAT ACTUALLY HAS THIS, AS IT WERE NOT CHARGING A BUNCH OF COSTS TO, OR THAT WERE NOT COST SHARING, A BUNCH OF COSTS TO, WITH, OR WITH GIS, WITH THE EXCEPTION OF THE VEHICLES.
JAN, LET ME SEE THAT, THAT CHARGE ACTUALLY IN THE BACKGROUND, ISN'T IT.
SO THIS IS, THIS IS THIS KIND OF ELUDES TO THOSE NUMBERS DOWN THERE.
I MEAN, WHEN I WAS JUST TALKING WITH THAT THERE, SO YOU CAN SEE WHERE WE ALL THE COSTS THAT WE WERE ABLE TO PAINT ONLY APPROXIMATELY $6,000 OF THE NON-PAYROLL COSTS IS WHAT WE'RE NOT CHARGING THE VEHICLES, BUT WE WILL START CHARGING THE VEHICLE.
SO THERE'S A PHASED IN APPROACH.
AND SO LET ME GET BACK TO THAT.
SO WE HAD RECOMMENDED, UH, TO WORK, UH, FOR GBD TO WORK A GIS NEED TO DETERMINE IF THERE SHOULD BE ANY CHANGES TO THE EMR, WILL YOU, AND, UH, AND ANY OTHER RELATED NON-PAYROLL COSTS AND EXCUSE ME, SUBSEQUENT TO THE MEETING AND 2019 WITH COUNSEL GPD, HARES WORKED OUT AN AGREEMENT WITH, UH, JISD TO PHASE IN AND START CHARGING FOR THOSE VEHICLES.
AND THEN AS, AS, UH, THE SRO MANAGEMENT INDICATED THAT THAT THE COSTS ARE FAIRLY MINIMAL AND IT'S NOT WORTH, AND I'M, I'M JUST AS ME SAYING THIS THERE'S THERE'S, THERE WOULD BE A LOT OF TIME AND EFFORT INVOLVED TO TRY TO ALLOCATE SIX OR $10,000 WORTH OF COST EVERY YEAR.
SO IT WAS PROBABLY NOT A COST BENEFIT SCENARIO THAT WE WANT TO GO FORWARD WITH.
UH, JUST, JUST TO CLARIFY, UM, WHEN, WHEN AN OFFICER
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BECOMES AN SRO, YOU'RE TALKING ABOUT A, PROBABLY A 10 TO 12 TO 15 YEAR OFFICER, THAT OFFICER HAS ALREADY BEEN ISSUED UNIFORM, UM, BELT, UH, UH, WEAPONS, UH, HE'S, HE'S COMPLETELY ISSUED.SO TO COMPARE, UM, THAT OFFICER WITH THE OVERALL COST OF, OF MAYBE A NEW OFFICER IS NOT AN ACCURATE COMPARISON.
AND SO THESE OFFICERS ARE OFFICERS THAT ALREADY HAVE BEEN ISSUED THEIR EQUIPMENT, AND THEY'VE HAD THEM FOR SOME TIME, UH, THE AMMUNITION AS WELL.
MOST OF OUR AMMUNITION THAT WE USE IS SHOT UP BY SWAT TEAM AND BY NEW RECRUITS THROUGH THE TRAINING PROGRAM.
AND SO, UM, YOU KNOW, WHEN THEY LOOKED AT THE OVERALL COST OF AMMUNITION AND DIVIDED IT UP BY THE NUMBER OF OFFICERS, THAT'S NOT AN ACCURATE PICTURE OF WHAT OUR SRO OFFICERS SHOOT, WHEN YOU REALLY DRILL DOWN TO JUST THE SRO OFFICERS, THAT'S A VERY SMALL NOMINAL COST.
AND SO OUR RECOMMENDATION WAS NOT TO INCLUDE THAT COST IN, INTO THIS NEGOTIATION.
IT IS A VERY SMALL COST WHEN YOU'RE TALKING ABOUT A 10 TO 15 YEAR OFFICER, THE VEHICLES, WE AGREE TO SEVERAL YEARS AGO, AND WE'VE ALREADY STARTED PHASING IN THOSE COSTS.
AND THEY'LL BE AT 50% AND SAVANNAH CORRECT ME IF I'M WRONG, BUT THERE'LL BE 50% NEXT YEAR, I BELIEVE.
JUST CLARIFYING SOME OF THEM QUESTIONS.
THE THIRD ITEM IS RELATED TO OVERTIME AND, UH, I'M GONNA START WITH THE END.
SO THE GOOD THING IS, IS THAT DURING THE TESTING, WE HAD A COUPLE OF YEARS TESTING IN THERE THREE YEARS OF TESTING AND, UH, SAVANNAH AND HER TEAM HAD ALREADY IMPLEMENTED A SOLUTION AS THIS EARLY 2019.
AND ANY OF THE TESTING I DID AFTER THAT POINT IN TIME, THERE WERE NO VARIANCES.
SO THE VARIANCES OCCURRED IN THE OVERTIME CHARGES PRIOR TO EARLY 2019.
AND IT WAS ROUGHLY ABOUT $17,000.
AND THERE'S WHAT WAS HAPPENING HERE IS THAT THE OFFICERS FILL OUT A TIME SHEET, A GIF D TIME SHEET, AND THEN THAT GETS APPROVED AND SENT BACK TO GIS D.
AND WE WERE BILLING FROM THAT TIME SHEET, BUT THEN THE OFFICER'S ALSO INPUT THEIR TIME INTO THE TIMEKEEPING SYSTEM FOR THE DEPARTMENT.
AND SO THERE WAS NO RECONCILIATION OR NO VALIDATIONS, THE TIME SHEETS AND THAT WE SUBMITTED DGI ISD AND THE TIME AND THE TIME IT WAS ENTERED OR WHERE THE SAME ARE EQUAL, RATHER.
SO I SAID, BASED UPON OUR TESTING, WE FOUND THAT, BUT I SAID THE GOOD THING THOUGH, THEY HAD ALREADY CORRECTED THE SITUATION IN EARLY 19 AND WE, AND THERE'S NO FURTHER ISSUES ON THAT.
UH, ANY OTHER QUESTIONS? NOTHING.
SO, AGAIN, I'D LIKE TO THANK, UH, SAVANNAH, YOU KNOW, SHE HAD TO ENDURE A LOT OF QUESTIONS ON THIS AND SEAN DEFINITELY APPRECIATE HER TIME.
AND I KNOW SHE'S JUST WAITING FOR THE NEXT AUDIT TO COME TO COME BY.
I MEAN, SOMEBODY ELSE CAN TAKE OVER GERMANY.
ONE THING TO POINT OUT, UM, GIS D PAYS THE REGULAR SALARIES AND BENEFITS OF THE ESL STAFF FOR THE ENTIRE YEAR.
BUT THAT MEANS EVEN WHEN THE SCHOOL IS OUT THERE PAYING, PAYING THE FULL FULL AMOUNT.
SO THAT'S SOMETHING THAT I THINK IT'S IMPORTANT FOR THE COMMITTEE TO BE AWARE OF.
AS TED MENTIONED, I WANT TO THANK CHIEF BRIAN AND HIS STAFF, UH, FOR WORKING WITH US AND COMPLETING THE OFF AIRMAN.
WELL, NOW YOU CAN SEE IT NOW I CAN SEE YOU.
UM, YEAH, JUST THIS, THIS IS A QUICK QUESTION.
I DID NOT WANT TO SCROLL BACK TO THE BEGINNING, BUT JUST FOR MY OWN CLARITY, WHEN WE'RE TALKING ABOUT CORRECTING THE METHODOLOGY, UM, THAT HASN'T BEEN ADJUSTING THE RATE OR, OR ENABLING US TO MAKE CORRECTIONS TO PREVIOUS INVOICES, I SAW EARLIER THAT THE, THE CURRENT MOU DOESN'T INCLUDE LANGUAGE BASICALLY TO ALLOW US TO RECOUP OVER PAYMENTS.
AND I'M ASSUMING THOSE TWO THINGS ARE, ARE, UM, RELATED.
SO IF WE ARE TALKING ABOUT CORRECTING METHODOLOGY,
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WOULD THAT ENABLE US TO RECOUP OVER PAYMENTS THAT WE'VE MADE OR TOO MUCH MONEY THAT WE HAVE, UM, GIVEN TO GISP FOR THINGS TO GET THAT BACK.CAUSE IN SOME CASES IT LOOKED LIKE WE OVERPAID IN SOME SIGNIFICANT AREAS.
DOES THAT MAKE SENSE, CHIEF BRIAN, CORRECT ME IF I'M WRONG.
MY UNDERSTANDING IS WE'RE NOT GOING BACK AND YEAH.
SO, SO HOW I'M GETTING THE BETTER, HEY, MARK LEE, CAN YOU HEAR ME? MAYBE IT'S DONE.
UH, SO, AND I'M GETTING A BAD ECHO.
IF EVERYONE WHO'S NOT SPEAKING, COULD PLEASE MUTE.
I THINK WE COULD CUT THIS PROBLEM OFF AND SAVANNAH JUMP IN IF I'M WRONG, BUT HOW WE WERE FIGURING THE INSURANCE IS WE WOULD START THE YEAR AND FIGURE THE INSURANCE.
THIS IS OUR INSURANCE FOR THE ENTIRE YEAR, WHILE OUR INSURANCE CHANGED, AS WE WENT THROUGH THE YEAR, YOU KNOW, IT, IT WOULD, IT MAY CHANGE IN OCTOBER.
AND, UM, THAT WAS NOT PART OF THE AGREEMENT THAT WE HAD REACHED.
YOU KNOW, WE HAD REACHED A MOU, IT'S NOT A BINDING CONTRACT.
IT'S AN MOU THAT THIS WAS WHAT WE WERE GOING TO CHARGE.
UM, WE ACTUALLY HAVE NOT CHANGED THE MOU YET BECAUSE I'M WAITING FOR THIS, UH, AUDIT COMMITTEE TO GIVE DIRECTION.
BUT OUR PLAN IS TO CHANGE THE MOU TO SAY, UH, WE'LL ADJUST AS THE ADJUSTMENTS OCCURRED.
SO SINCE WE HAVE NOT REACHED THAT AGREEMENT WITH THEM YET, AND I'M SURE WE'LL GET TO THAT POINT, I WOULD RECOMMEND WE START FROM THIS POINT GOING FORWARD.
WE'RE, WE'RE TRYING TO MAINTAIN THIS GOOD RELATIONSHIP WE HAVE WITH GIS D AND, AND INSTEAD OF GOING BACK, TRYING TO RECRUIT WHEN WE DID NOT HAVE THAT AGREEMENT, UM, I MEAN, OUR RECOMMENDATION IS, IS TO START WITH THIS AUDIT COMMITTEE AND MOVE FORWARD WITH IT, WITH THE NEW MOU.
AND I WASN'T CLEAR, I WASN'T SUGGESTING THAT WE GO BACKWARDS IN TIME, JUST THAT AS WE MOVE FORWARD, THAT THE NEW METHODOLOGY AND MOU THAT WE HAVE IN PLACE WILL INDEED ALLOW US MOVING FORWARD TO RECOUP OVERPAYMENTS.
AND I'M ASSUMING THAT TO BE TRUE, BUT I JUST WANTED TO HEAR THAT.
I MUST HAVE MISUNDERSTOOD, BUT YEAH, I PROBABLY SAID IT WRONG.
WE'RE WAITING FOR THIS AUDIT COMMITTEE TO GIVE DIRECTION, BUT THAT IS OUR PLAN IS TO, TO, AND, AND I'VE ALREADY DISCUSSED THIS WITH GIS D AND I I'VE ALREADY BEEN TOLD THEY'RE GOOD WITH THAT.
UM, THEY WANT TO PAY THEIR FAIR SHARE.
SO WE'RE JUST WAITING FOR DIRECTION FROM THIS COMMITTEE.
UH, BJ, DO WE HAVE ANYTHING CHAIRMAN? I DON'T, I DON'T HAVE ANYTHING ELSE.
UM, I DON'T KNOW THAT WE HAVE MUCH IN THE WAY OF DIRECTION THAT WE CAN GIVE YOU CHIEF.
I THINK THAT PROBABLY NEEDS TO COME OR REPORT IT TO THE FULL COUNCIL.
UM, I MEAN, PRETTY MUCH I THINK IS AS I EXPECTED AND I WOULD GUESS THE OTHER MEMBERS OF THE COMMITTEE EXPECTED IT, THIS ESSENTIALLY ESSENTIALLY SHOWED THAT WE'RE DOING IT RIGHT.
I MEAN, WE'RE JUST VERY MUCH, WE'RE TALKING ABOUT VERY MINOR DIFFERENTIALS IN, IN HOWEVER YOU GUYS WANT TO APPROACH IT.
I WOULD BE FINE IF YOU RECONCILED IT AT THE END OF SOME YEAR, ONCE A YEAR OR SOMETHING AND WENT BACK AND SAID, OH, NO, THIS CHANGED AS OPPOSED TO DOING ONGOING, WHATEVER.
CAUSE WE'RE TALKING ABOUT SMALL AMOUNTS OF MONEY.
I DON'T WANT TO NICKEL AND DIME GIS D I DON'T WANT THEM TO NICKEL AND DIME US.
THEY PROVIDE THE SRO PROGRAM, I THINK IS EXTREMELY, IT'S EXTREMELY VALUABLE, FORCED ANYONE WHO HAS, UH, AS YOU KNOW, WORKS IN SCHOOLS, HAS KIDS IN THE SCHOOLS, ANY OF THAT STUFF, ANY CONNECTION TO THE SCHOOL, BUT ALSO TO ALL OF OUR CITIZENS.
UM, THE FACT THAT WE HAVE OFFICERS IN THE SCHOOLS DEALING WITH ISSUES, UH, THERE, AND, AND GATHERING IN INTEL THAT THEY CAN SHARE AND COORDINATE WITH THE REST IS INCREDIBLY VALUABLE.
AND I THINK AS JED NOTED, SO IN THE SUMMER GIC PAYS FOR THAT, BUT WE ACTUALLY GET THAT.
I MEAN, THEY'RE MOSTLY ARDS, IS THAT CORRECT? YEAH, THAT'S CORRECT.
YOU KNOW, WE DO THE SAFE STREETS, TASK FORCE EVERY SUMMER, AND THAT'S MAINLY MADE UP OF OUR SRO.
AND THAT'S BEEN AN ABSOLUTELY HUGE BENEFIT.
UM, I KNOW, I THINK IT WAS LAST YEAR OR THE YEAR BEFORE WE USE IT TO, TO ADDRESS A LOT OF ISSUES DOWN IN DISTRICT FIVE ALONG, UM, NORTHWEST HIGHWAY IN IT.
AND SO THERE'S A LOT OF BENEFITS OF THIS PROGRAM.
UM, AND I APPRECIATE IT VERY MUCH AND, AND HOPEFULLY, UH, JET, IF YOU COULD FORWARD A COPY OF THIS TO FORMER COUNCILMAN GIVENS, UM, YOU KNOW, THIS WAS ALL BASICALLY THIS, FOR WHATEVER REASON, THE SRO PROGRAM HAS BEEN KIND OF SOMETHING A LITTLE BIT
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IN HIS CROSS SINCE HE'S BEEN ON THE COUNCIL.AND SO I THINK PERHAPS IT WILL BE PLEASED TO SEE THAT THAT THE COSTS ARE SHARED APPROPRIATELY.
UM, I, I, I DO CONCUR WITH, UM, WITH DEPUTY MAYOR PRO TEM MORE ABOUT, YOU KNOW, I WOULD LIKE TO SEE, UM, THE MOU WITH THE WORK OF W MAYBE A LIGHT TOUCH FROM THE CITY ATTORNEY'S OFFICE, UH, MORE ACCURATELY REFLECT, YOU KNOW, EXACTLY WHAT THE, WHAT THE TRANSACTION IS AND HOW IT WORKED OUT IT'S FUNDED.
AND, UM, AND I'LL CERTAINLY RECOMMEND THAT, UH, WHEN THIS GOES UP, IT GOES UP TO THE COUNCIL, BUT BY AND LARGE, THIS PROGRAM OPERATES AS, UM, AS IT WAS INTENDED TO.
AND I APPRECIATE YOU ALL APPRECIATE Y'ALL GOING THROUGH THE AUDIT PROCESS ON THIS ONE.
THANK YOU CHAIRMAN AGAIN, KUDOS TO SAVANNAH.
I MEAN, SHE'S ONE THAT MAKES THIS WHOLE OPERATION ROLL, SO THANK YOU.
IT JUST, UH, JUST GO BACK, GET A COPY OF THAT AND SNIP THAT AND JUST KEEP PLAYING IT, YOU KNOW, WHEN REVIEW TIME COMES UP, YOU KNOW, MAYBE POST IT, UH, ANYWAY.
ALL RIGHT, WELL, THANK YOU BOTH VERY MUCH.
AND WITH THAT, UH, WE'LL CLOSE OUT THIS ITEM.
WE'LL SEND THIS UP TO COUNCIL.
ANY ISSUES ON THAT? NO THING, NONE.
LET'S MOVE FORWARD THEN TO ITEM NUMBER THREE, WHICH IS THE, UH, THE FUEL CARD AUDIT CHAIRMAN.
THIS AUDIT WAS ACTUALLY REQUESTED BY THE CITY MANAGER, UH, AND BRIAN IS NOT HERE TODAY.
A LITTLE BACKGROUND BACK WHEN WE DID AN AUDIT IN 2015, A P-CARD DUPLICATE PERMANENT AUDIT, INTERNAL AUDIT HAS RECOMMENDED THAT WE NEED TO CONSIDER THIS CONTINUING TO FEED FUEL CARD PROGRAM AND ISSUE PEACOCKS.
INSTEAD, LET ME GIVE YOU A LITTLE BACKGROUND ABOUT THIS ONE.
UH, THE CITY ENTERED INTO AN AGREEMENT WITH A COMPANY CALLED VOYAGER, UH, FOR, FOR, FOR THE USE OF THIS FUEL CARDS.
MAINLY THERE ARE FOUR DEPARTMENTS THAT CURRENTLY USE THIS, UM, THIS FUEL CARD.
IT'S THE FIRE DEPARTMENT, POLICE DEPARTMENT, COLLIN POWER AND LIGHT AND CITY ADMINISTRATION.
THIS CAR IS MAINLY USED TO PURCHASE FUEL GRADES THAT ARE NOT AVAILABLE AT CITY FUEL STATIONS, OR WHEN THE WORKLOAD IS OUTSIDE THE CITY LIMITS.
SO THAT'S THE MAIN PURPOSE OF THIS FUEL CARDS ANYWAYS.
SO EVEN THOUGH WE MADE A RECOMMENDATION IN 2015, WE HAVE DECIDED THAT THE CITY HAS DECIDED TO CONTINUE TO USE IT, BUT THE CITY MANAGER REQUESTED AN AUDIT, AND I BELIEVE WE'RE GOING BACK TO OUR 2015 AUDIT RECOMMENDATION.
AND AT THIS POINT, MANAGEMENT IS IN THE PROCESS OF, UH, THIS IS IN THE PROCESS OF, UH, DISCONTINUING, CONTINUING THIS, THIS PROGRAM A LITTLE BIT MORE INFORMATION.
I TOLD YOU, THERE ARE FOUR DEPARTMENTS, UH, THAT ARE MAINLY USING THIS, UH, WERE USING THIS, UH, THIS CARD, APPROXIMATELY AS OF DECEMBER 28, THERE WERE 79 CARDS WHICH HAVE BEEN ISSUED.
UH, THESE CARDS ARE ISSUED TO NOT EMPLOYEES, BUT INSTEAD THEY ARE ISSUED TO EITHER CALLS OR FIRE STATIONS.
AND HOWEVER, MULTIPLE EMPLOYEES CAN HAVE ACCESS TO THESE.
UH, THEY HAVE, CAN HAVE THEIR OWN CREDENTIAL AND CAN USE THIS CARD TO FILL IN THEIR CARD.
SO FLEET HANDLED, UH, EVERYONE ELSE EXCEPT, UM, THE FIRE DEPARTMENT AND FIRE DEPARTMENT HANDLED, UM, THEIR OWN NEEDS.
UM, ALEX PAUL STAR CONDUCTED THIS AUDIT.
UH, I KNOW HE'S NOT GOING TO GO OVER ALL THE DETAILS, UH, SINCE THE PROGRAM IS GOING AWAY.
HOWEVER, I THINK IT'S STILL IMPORTANT TO KNOW WHAT WE FOUND WHEN WE DID THE AUDITS.
SO ALEX WE'LL, WE'LL KIND OF GO THROUGH THE FINDINGS THAT WE HAD.
AND, UH, SO WE CAN GET STARTED WITH THE, UH, THE FINDING NUMBER ONE, THE DEPARTMENT USAGE REVIEW.
SO FOR THIS FINDING, WE OBTAINED ALL OF THE VOYAGER PURCHASES THAT WERE MADE IN FY 19 AND 20.
AND WE PERFORMED A REVIEW OF THOSE.
AND WE NOTICED THERE WAS ONE DEPARTMENT THAT HAD MORE SPIN THAN THE OTHER DEPARTMENTS DID.
AND WE ALSO NOTED THAT THERE WAS MORE OF A, I COULD JUMP IN PERCENTAGE OF THE SPIN, LIKE AN FYI 20.
WE TALKED TO THAT DEPARTMENT AND THE, UH, THE DEPARTMENT HAD VALID REASONS WHY FOR THOSE CHARGES.
UM, SO THAT, THAT WASN'T ANYTHING LIKE THOUGHT EVERYTHING THAT THEY TOLD US FOR THOSE CHARGES CHECKED OUT.
BUT WHILE WE DID THAT REVIEW, WE ALSO NOTED THAT THERE WAS ONE USER WHO HAD A, A HIGH, UH,
[00:35:01]
DOLLARS, UH, OR A HIGH AMOUNT SPENT ON HIS, UH, VOYAGER ACCOUNT FOR HIS CARD.UM, AND WE KNOW THAT THERE WERE MULTIPLE PURCHASES THROUGHOUT, UM, SOME, SOME DAYS, AND THERE WERE SOME, SOME FUEL CHARGES THAT WERE MADE IN GARLAND AND THE NEIGHBORING CITIES INSTEAD OF USING THE FUEL STATIONS ON THE SAME USER'S ACCOUNT.
AND SO AFTER SOME MORE CONVERSATIONS, WE NOTED THAT THIS PERSON WAS SHARING THEIR CREDENTIALS WITHIN OR WITH OTHER EMPLOYEES.
SO THERE WAS MULTIPLE PEOPLE USING THE SAME CREDENTIALS TO MAKE PURCHASES.
AND ALSO WE NOTED THAT THERE WERE FIVE USERS WHO WERE MAKING PURCHASES WITH THE VOYAGER CARD NEAR THEIR HOMETOWNS, AND WE DID SOME MORE RESEARCH AND WE FOUND THAT NONE OF THEM HAD A SIGN TAKE THEM AGREEMENT, BUT, UM, WE, WE BROUGHT THAT UP WITH THE MANAGEMENT.
AND SINCE THEN FOUR OF THOSE EMPLOYEES HAVE A TAKE-HOME AGREEMENT AND THE REMAINING EMPLOYEE DOESN'T DRIVE A CITY VEHICLE ANYMORE.
SO THEY DON'T NEED ONE ANYMORE.
THE LAST PART OF THIS FINDING IS THAT, UH, WE, WE FOUND THAT THE ADMINS ARE RESPONSIBLE FOR PROVING THE INVOICES FOR PAYMENTS, WHICH INCLUDES LIKE A REVIEW THAT THEY DO, BUT THE EDMUNDS WEREN'T SENDING THESE INVOICES TO THE DEPARTMENTS.
SO LIKE THE DEPARTMENTS, WEREN'T REALLY SURE ABOUT THE INVOICE DETAILS AND COULDN'T REALLY, UM, LIKE MAKE ANY CONCLUSIONS OR COULDN'T REALLY SAY ANYTHING TO THOSE ADMINS.
UM, CAUSE THEY NEVER EVER WERE RECEIVING THE INVOICES.
AND WE ALSO NOTED THAT THERE WEREN'T ANY REPORTS THAT THE ADMINS WERE SENDING AND THAT THE, UH, THE EDMONDS WAS SENDING INTO THE DEPARTMENTS.
WE WERE HOPING THAT SOME SORT OF REPORT WAS CREATED AT THAT HAD SOMETHING LIKE, UM, THE AMOUNT SPENT BY DEPARTMENT AND THE EMPLOYEE, THE NUMBER OF PURCHASES BY DEPARTMENT AND EMPLOYEE, THE HISTORICAL COMPARISONS AND ANY IDENTIFIED IRREGULARITIES.
AND THAT'S FOR THE FINDING ONE.
UM, AND SO ALL THE FINDINGS ON THIS REPORT ALL HAD THE SAME RECOMMENDATION.
I MEAN, I MEAN, SORRY, I'LL HAVE THE SAME ACTION PLAN.
UM, AND SO I KIND OF FIGURED I WOULD JUST GO OVER THIS ONCE AND, UH, JUST, JUST KNOW THAT THIS COVERS ALL THE REST OF THEM.
SO WE WON'T BE GOING OVER ANY OTHER ACTION PLANS FOR THIS.
AND THE EXTRA PLAN IS THAT THE CITY ADMINISTRATION, THE VOYAGER PROGRAM WILL BE TERMINATED AT THE END OF JUNE, 2021.
THE PURCHASING DEPARTMENT WILL ALLOW THE NECESSARY FIELDS IN THE P-CARD SYSTEM TO ALLOW FLEET, TO CONTINUE TRACKING VEHICLE MILEAGE.
THE CITY OF GARLAND ALREADY HAS A WELL-ESTABLISHED P-CARD PROGRAM WITH INTERNAL CONTROLS AND RESPONSIBILITIES OUTLINED IN POLICY TO MITIGATE AGAINST THE RISK OF FRAUD OR ABUSE.
INTERNAL CONTROLS INCLUDE MONTHLY APPROVALS FOR MANAGING DIRECTORS FOR ALL P-CARD TRANSACTIONS AND PERIODIC REVIEW OF P-CARD ACTIVITY BY THE PURCHASING DEPARTMENT.
IN ADDITION, THE FINANCE DEPARTMENT IS CURRENTLY WORKING ON IMPLEMENTING A NEW EXPENSE REPORTING SOFTWARE THAT PROVIDED ADDITIONAL ANALYTICS AND CONTROLS TO THE P-CARD PROGRAM.
THE FINANCE DEPARTMENT WILL BE COORDINATING WITH THE FIRE FLEET, POLICE AND GPL REGARDING THE TRANSITION IMMEDIATELY.
AND THE IMPLEMENTATION IS JUNE 30TH, 2021.
ANY QUESTIONS FOR THIS ONE SO FAR? YEAH.
WE CAN GO TO THE, UH, THE NEXT FINDING, UH, DECOMMISSIONED VEHICLES WITH THE VOYAGER FUEL CARD.
SO FOR THIS ONE, WE OBTAINED A LISTING OF, UH, VEHICLES THAT WERE BEING DECOMMISSIONED AND ALSO A LISTING OF THE VOYAGER VEHICLE LISTING AND VOYAGER CARD LISTING.
AND SO WE DID A COMPARISON BETWEEN THOSE AND WE FOUND THAT THERE WAS AN 11 DECOMMISSIONED VEHICLES THAT WERE STILL ACTIVE IN VOYAGER AND 11 CARDS THAT WERE TIED TO DECOMMISSION VEHICLES THAT WERE STILL ACTIVE IN VOYAGER.
AND TWO OF THOSE CARDS HAD, UM, VOYAGER CHARGES AFTER THEY WERE DECOMMISSIONED QUESTIONS ON THIS ONE.
OKAY, GO TO THAT NEXT ONE, FINDING THREE, THE CARD ACCESS FOR THIS ONE, WE'VE GOT A LISTING OF THE VOYAGER, UM, USER ACCESS.
UH, AND WE REVIEWED THIS AND WE FOUND THAT THERE WERE 31 TERMINATED EMPLOYEES WHO STILL HAD A ACCESS TO VOYAGER AND THAT THERE WAS
[00:40:01]
AN 11 EMPLOYEES THAT HAD THEIR ACCESS REMOVED, BUT IT TOOK LONGER THAN THREE BUSINESS DAYS AFTER THEY WERE TERMINATED.AND THERE WERE FOUR EMPLOYEES THAT HAD CARD ACCESS, BUT THEY WORKED IN A DEPARTMENT THAT DIDN'T USE VOYAGER DURING THE SCOPE OF THE YADDA.
ANY QUESTIONS FOR THIS ONE? OKAY.
GO TO THAT NEXT ONE, FINDING FOR THE VOYAGER ADMINISTRATION OR AT ADMINISTRATIVE ACCESS RATES.
SO THIS FINDING IS KIND OF LIKE THE, UH, THE NUMBER THREE, WHERE WE GOT A LISTING OF THE VOYAGER USERS, BUT THIS ONE WAS TO LOOK AT THEIR USER ACCESS RIGHTS LEVEL.
SO TO SEE WHAT USERS HAVE THE ABILITY TO DO IN VOYAGER, UM, THAT HAVE ACCESS TO IT.
AND WE FOUND THAT THERE WAS ONLY ONE LEVEL OF ADMINISTRATIVE ACCESS RIGHTS AND VOYAGER.
SO THAT MEANS ANYBODY WHO HAS THE ADMINISTRATIVE LEVEL WOULD BE ABLE TO MAKE CHANGES IN VOYAGEURS AND WE'LL BE ABLE TO MAKE CHANGES IN THE VOYAGER SYSTEM.
AND WE NOTED THAT THERE WERE FOUR TERMINATED EMPLOYEES, UM, THAT STILL HAD ACCESS TO VOYAGER ADMIN ACCESS RIGHTS.
AND, UH, BASED ON THE CURRENT ROLE WE FOUND, THERE WERE THREE EMPLOYEES WHO DIDN'T NEED TO HAVE THEIR ADMINISTRATION ACCESS RIGHTS, ANY QUESTIONS ON THIS ONE? OKAY.
UH, FIVE, THE UNUTILIZED VOYAGER CARDS.
SO WE USE THE SAME, UH, LISTING OF VOYAGER CHARGES AND WE FOUND THAT THERE WERE 20 CARDS, 26 VEHICLES AND 297 EMPLOYEES THAT DIDN'T MAKE ANY FUEL PURCHASES DURING OUR SCOPE OF THE AUDIT.
SO IT JUST SHOWS THAT SOME OF THE CARDS AREN'T ALWAYS BEING UTILIZED.
THE LAST ONE, THE FINDING NUMBER SIX OPERATING WITHOUT AN EXECUTED EXECUTED CONTRACT.
SO THE CITY HAS BEEN USING THE VOYAGER SERVICE SINCE THE EARLY TWO THOUSANDS.
UM, BUT WE WEREN'T, BUT WE WEREN'T ABLE TO LOCATE LIKE A, UH, THE SIGNED CONTRACT FOR THIS, UH, THIS VOYAGER.
WAS THERE ANY MORE QUESTIONS ABOUT THIS ONE CHAIRMAN? I BELIEVE COUNCILMAN WILLIAMS HAVE JUST, I CAN'T SEE ANYBODY.
SO JUST, IF YOU HAVE A QUESTION, ANYBODY, SORRY.
SO YOU SHOULD BE ABLE TO NOT YOUR FAULT.
ANYONE HAS A QUESTION AT ANY TIME, JUST JUMP IN.
UM, I WANT YOU TO SAY THIS LAST IT'S OBVIOUS, YOU SAID THAT, THAT THIS PROGRAM IS, IS, UH, IS GOING TO MOST SMALL.
UM, BUT IF I WERE, AND TELL ME IF I'M WRONG, IF I WERE TO CHARACTERIZE THE FINDINGS, UM, THERE WAS A SERIOUS LACK OF INTERNAL CONTROLS.
THAT'S IF I HAD TO TAKE AN UMBRELLA APPROACH TO THIS AND TONAL CONTROLS, AND EVEN THOUGH WE ARE GETTING RID OF THIS PROGRAM CORRECTLY, I MEAN, I'M CORRECT.
AND, UM, NARROWING DOWN USING THE P CARD WITH THE FINDINGS BY, UH, THE TAKE HOME PIECE, UH, EMPLOYEES WHO WERE THE DECOMMISSIONED, UH, VEHICLES THAT WERE STILL LISTED, UH, EMPLOYEES WHO WERE NOT COOL HAD, UM, HAD TERMINATED.
SO THOSE ARE OBVIOUS SIGNALS OF LACK OF INTELLIGENT TRAILS.
UM, SO MY QUESTION IS WHAT, AND I HAVEN'T LOOKED AT, OF COURSE IT LOOKED AT ALL YOUR RECOMMENDATIONS, BUT WHAT STEPS, JUST THE AUDIT TEAM FIELD FIND THAT, UM, TO PROVIDE TO MANAGEMENT, UH, THAT ALTHOUGH THE PROGRAM IS, IS GOING TO GOING TO BE TERMINATED, UM, THE ISSUE OF INTERNAL CONTROL OR JUST OVERALL DISCUSSIONS WITH MANAGEMENT, AND THEN THE FLIP, WHAT LEVEL OF DISCUSSIONS HAVE TAKEN PLACE, BECAUSE THERE WERE SOME, THERE'S SOME REAL SIGNS BASED ON THESE FINDINGS, UH, THAT THERE WAS A SERIOUS LACK OF PARENTAL CONTROLS.
[00:45:01]
SO, JEN, I GUESS MY QUESTION IS WHAT WAS THE EXTENT OF THOSE DISCUSSIONS? AND AGAIN, UNDERSTANDING THAT THIS PROGRAM IS GOING TO BE TERMINATED.UM, BUT WE ALL WE HAVEN'T BEEN SHARING OR WE JUST GO ON WITH THESE FINDINGS AND SAYINGS THAT SINCE THE PROGRAM IS TERMINATED, WE JUST KIND OF GONNA KIND OF LEAVE WELL ENOUGH ALONE OR DID SOME DISCUSSIONS AT LEAST TO WAIT, RAISED THE LEVEL OF AWARENESS AND TO FOCUS MORE ON ACCOUNTABILITY FOR THESE KINDS OF WHAT IN GENERAL, WHAT THE REPORT REFLECTS, UH, JARED, CAN YOU ADDRESS JUST THAT FOR ME? YEAH, IT SOUNDS TO ME AND I BELIEVE BRIAN HAD SOME CONCERNS, UH, WITH THIS PROGRAM.
THAT'S WHY HE CAME TO ME AND ASKED ME FOR THE AUDIT.
UM, SO, AND, AND, AND AS I MENTIONED EARLIER, BACK IN 2015, WE DID RECOMMEND THIS, UH, DUE TO, TO, WE NEED TO THINK OF MOVING AWAY FROM THIS PROGRAM.
EVERY DEPARTMENT, UH, HAS A REVIEW PROCESS IN PLACE.
SO EVERY TRANSACTIONS IS SUPPOSED TO LEE AND I BELIEVE FOR THE MOST PART IS BEING REVIEWED IS, IS, SHOULD BE REVIEWED BY THE EACH SUPERVISOR.
THEN IT GOES TO THE MANAGING DIRECTORS.
SO THEY ARE SEEING, UM, WHAT EVERY EMPLOYEE IS BUYING.
IS THERE A JUSTIFICATION, IS THERE A TREND OF BUYING WHEN, WHEN, WHEN YOU DON'T NEED TO STUFF LIKE THAT WITH THIS PROGRAM, WHAT HAPPENED WAS, UH, FLEET WOULD RECEIVE, UH, THE INVOICING, OBVIOUSLY FLEET DOESN'T KNOW THE NEED OF EVERY DEPARTMENT.
UM, SO FLEET TOOK IT UP THEMSELVES AND THERE, THEY MADE THE EFFORT TO MAKE THE PAYMENT, UH, TO BE IN COMPLIANCE WITH, UH, W WITH OUR PAYMENT TERMS WITH THE COMPANY.
BUT, UH, TRUTHFULLY THEY WOULDN'T KNOW WHAT INTERNAL AUDIT REQUIREMENTS ARE, UH, ALL OF THAT STUFF.
SO COULD WE HAVE A FEW YEARS BACK, UH, ANY TO, TO DEFEND THEM A LITTLE BIT, THEY WERE PROVIDING CERTAIN REPORTS TO, UH, TO DEPARTMENTS.
AND, AND HONESTLY THAT REPORT WAS NOT BEING CAREFULLY REVIEWED, UH, BECAUSE THIS WAS NOT A BIG PROGRAM.
UH, BUT THESE ARE THE TYPE OF SMALLER PROGRAMS IS WHERE THINGS COULD GO WRONG.
WHEN WE DO CASH COUNT AUDIT CUSTOMER SERVICE, THEY BRING THE MOST, THEY DEAL WITH MOST OF THE CASH AND THEY DO A LOT OF TRANSACTIONS THERE, BUT THEY USUALLY HAVE BETTER INTERNAL CONTROLS THEN GO INTO A SMALLER DEPARTMENT BECAUSE EVEN THOUGH THEY DON'T BRING THAT MUCH MONEY, UH, THAT'S WHERE WE LOSE SIGHT.
AND SO I BELIEVE THAT'S WHAT HAPPENED IN THIS CASE, UH, SINCE THIS WAS A SMALL PROGRAM, NOT THE, EVERY DEPARTMENT IS USING THIS CARD, ONLY A FEW DEPARTMENTS.
AND SO IT WAS KIND OF PUT IT ASIDE AND THERE WASN'T MUCH OF A DISCUSSION OR REVIEW.
I DID SPEAK TO BRIAN BRADFORD, UH, AND MATT, UH, TO GIVE THEM CREDIT FOR IT.
MATT STEPPED IN AND DURING OUR DISCUSSION, UH, HE, AND HE SAID, UH, WELL, UH, THIS SHOULD BE UNDER ME.
UH, AND, UH, AND HE'S, AND THAT'S WHY, UH, HIM AND MITCH AND BRIAN MADE THE DECISION, UH, THAT WE SHOULD MOVE FORWARD, UH, EVERY YEAR FROM THIS PROGRAM.
UH, WE JUST NEED TO STRENGTHEN OUR REVIEW OF CURRENT REVIEWS OF P-CARD.
AND, UH, AS MENTIONED IN HERE, MATT IS IMPLEMENTING A NEW EXPENSE REPORT SYSTEM, AND THERE WILL BE FURTHER REVIEW, UH, IN THAT THEY WILL BE ABLE TO PRODUCE REPORTS.
THEY WILL BE ABLE TO LOOK AT TRENDS.
SO I FEEL LIKE GOING AWAY FROM THIS PROGRAM IS THE RIGHT LIGHT THING, AND THERE WILL BE BETTER CONTROLS AND, AND BRIAN AND MITCH AND MATT THERE, THEY ALL TOOK IT VERY SERIOUSLY.
AND THAT'S WHY WE'RE GOING AWAY FROM THIS.
AND MY FINAL QUESTION IS ANY, ANY COMMENTARY OR FEEDBACK FROM SENIOR LEVEL MANAGEMENT ON THE SWITCH GOING STRICTLY TO PCARD, UM, FROM AN OPERATIONAL STANDPOINT, ANY PMK, HOW IS THIS SWITCH OURS? AND IN THIS PROGRAM, THIS SWITCH ANY FEEDBACK FROM SENIOR MANAGEMENT, UM, ON THEIR OPERATION, FROM AN OPERATION, THOSE THAT ARE IMPACTED BY THIS CHANGE, ANY FEEDBACK THERE, TALKING WITH FIRE CHIEF, I MEAN, FIRE CHIEF, SINCE THE BEGINNING OF THIS AUDIT, HE WAS ACTUALLY A PROPONENT OF GOING AWAY FROM THIS PROGRAM.
HE'S LIKE, JEN, MY RECOMMENDATION IS TO GO AWAY.
MY STAFF WILL NEED TO ADJUST A LITTLE BIT.
THEY WON'T HAVE THIS AVOID CARD, BUT WE HAVE THE P-CARD.
I WOULD RATHER GO IN A WAY FROM AN OPERATIONAL PERSPECTIVE I HAVE IN AND TOM HANCOCK, WHO IS HERE.
I TALKED TO TOM ABOUT GPL BECAUSE THEY'RE, THEY'RE ARE A MAJOR PLAYER IN THIS CASE.
AND DIDN'T SOUND LIKE THERE IS AN ISSUE WITH GP AND L AS WELL.
[00:50:01]
FROM AN OPERATIONAL PERSPECTIVE, YOU ALREADY HAVE A PROCESS IN PLACE WITH PCARD.UM, WE HAVE A REVIEW PROCESS IN PLACE.
AND, UH, AND USUALLY WHEN AN EMPLOYEE LEAVES FROM A DEACTIVATION PERSPECTIVE, MOST DEPARTMENTS WILL MAKE SURE THEIR PCARDS ARE TAKEN AWAY AND THEY'LL BE ACTIVATED.
AND THEN, SO THEY ALL FELT LIKE IT LETS MORE AND MORE FROM THIS.
AND SO, SO WE'LL HAVE BETTER ACCOUNTABILITY AND TRANSPARENCY.
THANK YOU, MR. CHAIRMAN, UH, CHEROKEE THIS TOMMY, HOW CAN I MAKE A QUICK COMMENT, PLEASE? UH, YEAH, YOU KNOW, TO, TO DAN'S POINT, I THINK WE CAN DEAL WITH IT.
WE, WE, YOU KNOW, THERE MAY BE A SITUATION WHERE, YOU KNOW, OUR P CARDS, UH, SEEM TO BE COMPROMISED MORE THAN THE DIVORCE OR CARDS HAD IN THE PAST.
AND SO, YOU KNOW, WE HAVE SOME TRANSMISSION EMPLOYEES THAT TRAVEL OUTSIDE THE TERRITORY.
SO, YOU KNOW, THERE'S A POSSIBILITY IF, IF YOU KNOW, THEY'RE TRAVELING OUT TO WEST TEXAS OR SOMEWHERE ELSE AND, AND, UH, THEIR P CARD GETS COMPROMISED.
UH, YOU KNOW, THEY WILL HAVE TO, YOU KNOW, POTENTIALLY IF THEY'RE TRAVELING ALONE, HAVE TO PUT FUEL IN COMPANY VEHICLES WITH PERSONAL CREDIT CARDS OR, OR SOMETHING OF THAT NATURE, AND WE'LL HAVE TO HANDLE THAT TYPE OF REIMBURSEMENT.
BUT, YOU KNOW, THAT'S REALLY THE ONLY THING THAT, THAT WE'VE TALKED ABOUT, THAT, THAT, THAT MIGHT COME UP WITH ELIMINATING THE PROGRAM, BECAUSE THE P-CARD, IF YOU HAD A BORAGE, A CARD AND A P CARD, THEN THE P CARD WOULD KIND OF BE THE BACKUP, UH, IN A SITUATION LIKE THAT.
BUT NOW YOU, THE BACKUP WILL BE THE EMPLOYEE'S PERSONAL CARD.
SO WE WERE, WE WERE EVEN TALKING ABOUT, YOU KNOW, UH, THE POSSIBILITY OF HAVING, UH, SOME SORT OF BACKUP P CARD AS WELL TO MAYBE OVERCOME THAT, YOU KNOW, BUT WE'LL TALK ABOUT THAT DOWN THE ROAD, BUT I JUST WANT TO MENTION THAT'S THE ONLY THING THAT WE, WE ARE A BIT CONCERNED ABOUT THAT WE MIGHT HAVE A SITUATION OR TWO HERE AND THERE, BUT WE'LL, WE'LL, WE'LL MANAGE THROUGH IT'S, BUT I DID WANT TO MENTION IT.
IS, IS, IS THAT A PROBLEM HISTORICALLY FOR YOU GUYS, WITH YOU HAVE TRANSMISSION GUYS HAVING THEIR PEAK HUDGE P-CARD SHUTDOWN? UH, YES.
WE ESPECIALLY, UH, ESPECIALLY WHEN WE ADDED THE, UH, TMPA, UH, EMPLOYEES INTO THE GARLAND FOLD, UH, THEY HAD SITUATIONS WHERE THEIR P CARDS WERE COMPROMISED AND THEY WEREN'T ABLE TO PAY FOR EXPENSES, UH, AND THEY WERE, YOU KNOW, DOWN THERE OUT OF TOWN.
UM, AND THAT'S KINDA WHY WE ADDED THAT THE BIG EXPENSE THAT YOU SAW ON FROM 19 TO 24 G P AND L WAS ADDING THOSE FOLKS TO THE PROGRAM.
SO, UH, THAT'S WHY THAT, THAT WAS A BIG INCREASE THERE.
UM, BUT YOU KNOW WHAT, WE'LL JUST, LIKE I SAID, WE'LL, WE'LL MANAGE THROUGH IT.
I THINK HOPE WE'RE ALL FOR THE CITY IT'S BEST.
UH, I AGREE TO, TO DO AWAY WITH THE PROGRAM AND WE'LL, WE'LL MANAGE THROUGH IT, BUT, UH, YOU KNOW, THAT WE MAY HAVE TO TALK ABOUT SOME SORT OF, UH, YOU KNOW, BACKUP, EMERGENCY CARTERS OR SOMETHING.
MAYBE IF IT GETS TO BE, UH, YOU KNOW, WHERE IT'S, IT'S NOT MANAGEABLE, BUT WE, WE FULLY EXPECT THAT WE CAN, WE CAN FIGURE IT OUT, BUT I DID WANT TO MENTION THAT.
ANYONE ELSE? UM, THANK YOU FOR THE EXTENSIVE AUDIT ON THIS.
UM, I THINK IT'S PROBABLY THE RIGHT DIRECTION TO GO IN, AS WE'VE SAID, YOU KNOW, THAT THAT MANAGEMENT HAS MADE TO ELIMINATE THIS PROGRAM.
UM, YEAH, WE, WE RUN INTO LITTLE THINGS LIKE THIS ALL THE TIME.
SOMETIMES I THINK THE SMALLER PROGRAMS ARE THE, ARE THE HARDER ONES TO MANAGE BECAUSE WE'RE LESS LIKELY TO, TO BE AS CONCERNED, PARTICULARLY SOMETHING LIKE THIS, WHERE YOU HAVE A FUEL CARD FOR THE PURPOSE OF LIMITING THE RISK, UM, OR THE POTENTIAL RISK FROM USAGE.
BUT, UM, IT, IT'S CERTAINLY, YOU KNOW, NOT THE BEST CIRCUMSTANCE TO, TO, TO PUT THE RESPONSIBILITY FOR CONTROL, WITHOUT GIVING FOLKS THE TOOLS TO, TO MANAGE, TO MANAGE THAT ACROSS MULTIPLE DEPARTMENTS.
SO I THINK PUTTING IT INTO, INTO MATHS DEPARTMENT WILL WORK, PUTTING IT ON, YOU KNOW, WHATEVER.
HOWEVER, MATT WANTS TO HANDLE IT.
AND, UM, WE'LL JUST MOVE FORWARD.
I'M GLAD IT DOESN'T LOOK LIKE THERE WAS ANY, YOU KNOW, THERE'S, THERE ARE ISSUES OF CONCERN, BUT WE DIDN'T SUFFER ANY MAJOR LOSSES.
SO THANK YOU GUYS FOR, FOR PUTTING IT THROUGH ANYTHING ELSE.
WE GOOD WITH SENDING THAT UP TO COUNCIL.
AND THAT WILL CONCLUDE THAT ITEM.
UH, BRIAN, DO I NEED TO READ THE EXECUTIVE SESSION PIECES? YES, I DO.
UH, THAT'LL CONCLUDE THE PUBLIC PORTION OF OUR PROGRAM HERE AND NOW WE'LL MOVE INTO EXECUTIVE SESSION.
UM, THE GPL RISK OVERSIGHT COMMITTEE BRIEFING FOR TWO SECTION 5, 5, 1 0.08, SIX AND 5 5, 2 0.133, THE TEXAS GOVERNMENT CODE
[00:55:01]
DEALING WITH COMPETITIVE MATTERS.THE CITY COUNCIL MAY RESET FROM OPEN SESSION BEING CLOSED EXECUTIVE SESSION FOR DISCUSSION.
DO I HAVE TO READ ALL THIS FRAME? HAVE I READ ENOUGH OF ANY OF THE LISTED AGENDA ITEM THREE, ONE MORE OF THE FOLLOWING MATTERS? I DON'T HAVE TO READ ALL THAT.
I JUST DON'T WANT TO HAVE TO READ THE WHOLE SEVEN PARAGRAPHS.
LET'S UM, LET'S PLAN ON RECONVENING THEN.
UH, YOU SHOULD ALL HAVE YOUR, FOR THOSE YOU'RE SUPPOSED TO BE THERE.
YOUR EXECUTIVE SESSION LINK LET'S PLAN ON RECONVENING THERE AT 3 35, BUT NINE MINUTES.