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[00:00:01]

ALL RIGHT, EVERYBODY.

LET'S GO AHEAD AND GET STARTED.

[Audit Committee Meeting on September 21, 2021.]

ARE WE RECORDING OR WHATEVER WE DO.

OKAY.

THANK YOU EVERYONE.

WELCOME TO THE SEPTEMBER 21ST, 2021 MEETING OF THE GARLAND CITY COUNCIL AUDIT COMMITTEE.

I AM RICH, ALBAN AND CHAIR OF THE COMMITTEE I HAVE WITH ME, UH, DEPUTY MAYOR PRO TEM, BJ WILLIAMS AND COUNCIL MEMBER, ROBERT JOHN SMITH.

THE FIRST ITEM WE HAVE ON THE AGENDA TODAY IS THE APPROVAL OF THE JUNE 15TH, 2021 MEETING MINUTES.

WE HAVE MOVE AND APPROVAL ON FAVOR.

AYE MINUTES ARE APPROVED.

I'LL GO AHEAD AND SIGN THEM THE APPROPRIATE TIME.

LET'S GO AHEAD AND MOVE TO THE SECOND ITEM ON THE AGENDA, WHICH IS THE WEAVER PRESENTATION OF THE FISCAL YEAR 2021 AUDIT THURMAN.

WE HAVE SARAH DEMPSEY, UH, CLAIRE RUTIN AND MAGOO LULLABY HERE, UH, TO PROVIDE YOU WITH THEIR AUDIT PLAN.

AND I BELIEVE MAY HULU WILL COVER SOME OF THE IT STUFF.

OKAY.

THE, WELL, THANK YOU ALL FOR HAVING US.

I DON'T KNOW.

Y'ALL CAN HEAR ME.

I SAID, OKAY.

YES, WE'RE HERE FOR THE INTERIM FROM 9 30, 21 AUDIT.

WE CAME OUT AND DID TWO WEEKS OF INTERIM FIELD WORK.

UM, WE STARTED SOME IT ORG AS WELL.

SO THAT'S WHAT MAHAL WAS HERE TO TALK TO YOU ABOUT AS WELL.

SO I'LL GO THROUGH THE PRESENTATION, UM, FOR THE INTRODUCTION.

SO THIS IS THE TEAM.

UH, WE HAVE MYSELF AS THE AUDIT PARTNER, CLAIRE'S THE SENIOR MANAGER, AND THEN WE ALSO HAVE A SENIOR THAT COMES OUT ASSOCIATES.

WE HAVE THE IT ADVISORY GROUP, A DATA ANALYTICS GROUP THAT HELPS OUT.

UM, THESE ARE JUST SOME OF THE MAIN PLAYERS THAT COME AND DO THE AUDIT, WHICH HAPPENS JANUARY AND FEBRUARY DURING THE YEAR.

SO WE'VE GOT THE TWO YEARS, TWO WEEKS OF INTERIM, AND THEN WE COME BACK AND DO ABOUT SIX WEEKS OF FIELD WORK.

NOT TWO YEARS.

IT FEELS LIKE IT, BUT IT'S NOT.

UM, SO THIS IS THE, FOR THEM NOT US, WE ENJOY IT.

UH, THIS IS OUR ENGAGEMENT PLANNING TIMELINE.

SO THIS IS WHERE YOU CAN SEE WHEN WE COME OUT FOR INTERIM, WHEN WE'RE HERE FOR FIELD WORK, WHEN WE'RE PRESENTING TO YOU, AND WHEN WE'RE PRESENTING THE AUDIT, A LOT OF DISCUSSIONS WILL GO BACK AND FORTH IN BETWEEN.

BUT, UM, WE EXPECT TO ISSUE IN MARCH OF 2022.

AGAIN, THERE'VE BEEN NO, UM, ISSUES THAT HAVE COME UP DURING THE INTERIM THAT WOULD DELAY THE TIMELINE THAT WE'VE HAD IN THE PAST, OR THAT THAT WOULD MAKE US, UH, YOU KNOW, CHANGE THE TIMELINE OF ISSUING THE REPORT.

SO OUR APPROACH IS A RISK-BASED AUDIT.

WE'RE LOOKING AT WHERE THOSE FINANCIAL STATEMENTS COULD BE MATERIALLY MISSTATED.

SO THE CITY PREPARES THE FINANCIAL STATEMENTS, WHICH IS, UM, YOU KNOW, IT'S NOT SEEN A LOT.

UH, THAT MEANS YOU HAVE A VERY COMPETENT GROUP THAT CAN, CAN PREPARE SUCH A LARGE REPORT.

UM, AND SO THEY'RE PREPARING THE FINANCIAL STATEMENTS AND WE'RE GOING IN AND WE'RE AUDITING THOSE BALANCES.

SO WHEN WE START THE AUDIT, WE HAVE TO LOOK FOR WHERE COULD THOSE, UH, WORK WITH THOSE STATEMENTS BE MISSTATED.

SO WE LOOK AT MANAGEMENT OVERRIDE OF CONTROLS, UH, THE INFORMATION TECHNOLOGY PIECE, UH, WE'RE LOOKING AT CAPITAL PROJECTS, ACCRUED LIABILITIES, UH, ANY SORT OF LIABILITY THAT COULD BE MISSING.

AND THEN WE MAKE SURE THAT, UH, REVENUE ISN'T OVERSTATED.

SO A LOT OF OUR PROCEDURES ARE AROUND, UH, OVERSTATEMENT OF REVENUE AND THEN ALSO COMPLIANCE WITH THOSE FEDERAL EXPENDITURES.

SO, UM, THE SINGLE AUDIT IS A MAJOR PIECE OF OUR AUDIT AS WELL.

SO FOR THE AUDIT PROCESS, WE COME OUT AT INTERIM, WHICH WE'VE DONE, THAT'S COMPLIANCE, TESTING, INTERNAL CONTROL TESTING.

WE'RE OUT DURING THE FISCAL YEAR OF 2021.

WE'RE WALKING THROUGH PAYROLL, WE'RE WALKING THROUGH, UH, THE DISBURSEMENT PROCESS.

SO, UH, WE'RE GOING THROUGH THE SIGNIFICANT ACCOUNTING AND TRANSACTION CYCLES AND MAKING SURE THAT THEY'RE OPERATING AS DESIGNED.

AND WE'RE ALSO TESTING CONTROLS, OVERBID PROCEDURES AND UTILITY BILLING, AS WELL AS THE PROPERTY TAX RECEIPTS.

UH, AS, AS PART OF OUR AUDIT, THE INTERNAL AUDIT DEPARTMENT HELPS US AS WELL.

THEY DO SOME OF THE CASH DISBURSEMENT TESTING, UH, SINGLE AUDIT TESTING AND UTILITY RECEIPTS TESTING.

AND THEN WE COME BACK THROUGH AND RE PERFORM SOME OF THOSE PROCEDURES, THAT DATA ANALYTICS WORK THAT WE DO, UM, BASICALLY BECAUSE OF THE LARGE AMOUNTS OF DATA, THIS HELPS US ISOLATE TO THOSE UNUSUAL ITEMS. WE'RE DOING THAT FOR JOURNAL ENTRIES, MAKING SURE THAT THERE'S NO UNUSUAL TRANSACTIONS RUNNING THROUGH THE GL AND THEN VENDOR ANALYSIS.

SO AS PART OF THE RESPONSIBILITIES, UM, WE ARE OPINING ON THE FINANCIAL STATEMENTS

[00:05:01]

AND THEN WE'RE ALSO PERFORMING TESTS TO ENSURE COMPLIANCE WITH LAWS, REGULATIONS, UH, AND THEN MAKING SURE THAT THOSE BALANCES ARE MATERIALLY, CORRECT.

UH, FOR THE SINGLE AUDIT, THE MAJOR PROGRAMS, THE CORONAVIRUS RELIEF FUND, THE EMERGENCY RENT PAYMENT, AND THEN THE VOUCHER PROGRAM, OUR THREE MAJOR FUNDS THIS YEAR.

SO WE'LL BE TESTING THOSE.

UM, THEY EACH HAVE DIFFERENT COMPLIANCE REQUIREMENTS.

AND SO WE DO GIVE AN OPINION ON COMPLIANCE FOR THOSE PROGRAMS. AND THEN MCGILL IS GOING TO GO THROUGH THE IT UPDATE, UH, TALK TO YOU ABOUT THE IN-SCOPE SYSTEMS THAT ARE DONE IN THE CONTROL AREAS THAT ARE TESTED.

SO THE IT WORK THAT WE PERFORM IS REALLY AROUND, UH, GENERAL CONTROLS, UH, OVER THE, THE SYSTEMS THAT ARE RELEVANT FOR THE FINANCIAL AUDIT.

UM, SO EACH OF THESE SYSTEMS THAT ARE WITHIN OUR SCOPE COVER DIFFERENT FINANCIAL PROCESSES, REVENUE, UH, PAYROLL, ET CETERA, UH, ALONG WITH THE NETWORK ENVIRONMENT, UM, AS WELL, AND THE SCOPE OF THE CONTROLS THAT WE COVER.

SO THESE ARE IT GENERAL CONTROLS, UM, IN THE GENERAL AREA AROUND CHANGES TO SYSTEMS. SO WE LOOK AT CONTROLS OVER HOW CHANGES ARE AUTHORIZED, IF THERE'S A PROCESS FOR TESTING AND APPROVING CHANGES BEFORE THEY'RE MOVING INTO PRODUCTION AND HOW, UH, THAT THAT ENVIRONMENT IS SEPARATED FOR WHO CAN ACTUALLY DEVELOP IN AND MIGRATE CHANGES TO PRODUCTION.

UH, FROM A COMPUTER OPERATION STANDPOINT, WE'RE LOOKING AT, UH, PHYSICAL ACCESS TO THE SYSTEMS, UH, THE, THE SERVERS, UH, AS WELL AS CONTROLS OVER BACKUPS AND AVAILABILITY OF, UH, IF THE SYSTEM WERE TO FAIL AND, AND THE BACKUP DATA WAS, UH, REQUIRED TO BE, UM, UH, USED, UH, AND THEN AROUND ACCESS TO PROGRAMS AND DATA, YOU LOOK AT SECURITY CONTROLS OVER, UH, HOW USERS ARE ADDED TO THE SYSTEMS, UM, HOW USERS ARE REMOVED FROM THE SYSTEMS WHEN THEY'RE, THEY NO LONGER NEED ACCESS, UH, ADMINISTRATIVE ACCESS, AS WELL AS AUTHENTICATION, CONTROLS, PASSWORDS, AND THOSE TYPES OF THINGS.

UM, AND SO THAT'S, THAT'S GENERALLY THE AREA WE COVER.

IF THERE ARE ANY ISSUES, WE LOOK AT THE IMPACT TO, TO, TO THE OTHER CONTROLS ON THE FINANCIAL SIDE, UM, FOR THE AUDIT, THERE ARE PRONOUNCEMENTS THAT WILL BE IMPLEMENTED THIS YEAR, GATSBY 84 IS FIDUCIARY ACTIVITIES.

AND THERE ISN'T A SIGNIFICANT IMPACT BECAUSE, UM, THERE IS THE OPEB TRUST FUND.

A LOT OF GOVERNMENT ENTITIES HAVE THESE AGENCY FUNDS, AND THOSE WILL HAVE SOME EFFECTS, BUT JUST DUE TO THE WAY THAT THAT GARLAND HAS SET UP THIS, THIS ONE DOES NOT HAVE AN IMPACT, A SIGNIFICANT IMPACT, UM, GADSBY 90, ALSO NOT A SIGNIFICANT IMPACT.

SO WHEN YOU LOOK AT THE FINANCIAL STATEMENTS AT THE END OF 21, WHEN WE'RE IN THE MARCH MEETING, IT SHOULD LOOK SIMILAR, NO NEW PRONOUNCEMENTS THAT WOULD MAKE IT, UH, TWO, TWO DIFFERENT FROM THE PREVIOUS YEAR.

AND THEN THESE ARE JUST DISCUSSION TOPICS.

UM, JUST TO LET YOU KNOW WHAT THE AUDITING STANDARDS ARE, IF YOU EVER WANTED TO TALK TO US, WE REPORT TO THIS GROUP.

SO IF THERE'S EVER ANY CONCERNS OR ANYTHING, YOU HAVE OUR EMAIL ADDRESS, PHONE NUMBER, AND WE WOULD WANT TO YOU TO BE ABLE TO REACH OUT, TO TALK TO US ABOUT THIS, YOU KNOW, UM, IF THERE HAS BEEN ANY CHANGE OF GOVERNANCE STRUCTURE, IF WE NEED TO REPORT TO SOMEONE DIFFERENT, PLEASE LET US KNOW.

AND THEN ANY MATTERS THAT YOU'VE SEEN THAT YOU THINK WE SHOULD TAKE INTO CONSIDERATION DURING OUR AUDIT.

SO I WANTED TO JUST LET YOU HAVE THE SLIDE AND NO, UM, AFTER THAT'S MY CONTACT INFORMATION, AND THEN I'M HERE FOR ANY QUESTIONS THAT YOU MIGHT HAVE ABOUT THE AUDIT PROCESS.

THANK YOU VERY MUCH.

ANY QUESTIONS, PLEASE GO RIGHT AHEAD.

JUST ONE, CAN YOU ELABORATE A LITTLE BIT ON, YOU MENTIONED THE PARISH FUNDING.

CAN YOU TALK A LITTLE BIT MORE ABOUT THAT? WHAT DOES THAT LOOK LIKE? SURE.

SO AS PART OF THAT AND THE SCOPE OF THAT.

OKAY.

SO, UM, THE DEPARTMENT OF TREASURY WILL PUT TOGETHER A COMPLIANCE SUPPLEMENT.

SO THE MONEY THAT YOU'VE RECEIVED, THE DEPARTMENT OF TREASURY WILL BASICALLY PUT OUT AN AUDIT PROGRAM FOR US.

THEY HAVE FREQUENTLY ASKED QUESTIONS OF HOW THE MONEY CAN BE SPENT.

UH, AND SO IT'S, IT'S REALLY GOING THROUGH AND READING WHAT THE DEPARTMENT OF TREASURY HAS PUT OUT THERE AND DID GARLAND COMPLY WITH THOSE REQUIREMENTS.

SO, UM, AND, AND ANY SIN, SINGLE AUDIT, THAT'S REALLY WHAT WE'RE DOING IS GOING TO THAT, THAT DEPARTMENT'S, UH, COMPLIANCE SUPPLEMENT.

AND THEY TELL US, WE WANT YOU TO LOOK AT ALLOWABILITY OF EXPENDITURES.

WE WANT YOU TO LOOK AT, UH, THE CASH MANAGEMENT PROCESS.

AND SO THEY'LL HAVE SPECIFIC AREAS.

AND THEN WE GO IN AND TEST THOSE.

AND YOU'LL NOTICE IF WE, IF YOU LOOK AT LAST YEAR'S REPORT COMPARED TO WHAT WE'LL

[00:10:01]

GIVE YOU ALL THIS YEAR FOR THE AUDIT, WE HAVE, WE TESTED CARES LAST YEAR AS WELL.

BUT THIS PORTION OF HERE'S THIS YEAR WAS THAT LEFTOVER AMOUNT THAT HADN'T GOTTEN SPENT LAST YEAR.

AND THE COMPLIANCE SUPPLEMENT THAT THE OMB RELEASED THIS YEAR WITH THE DEPARTMENT OF TREASURY SAID THAT ALL COVID RELATED FUNDS HAD TO BE CONSIDERED HIGH RISK FOR THIS NEXT YEAR.

AND SO THAT'S WHY WE HAVE TO RE GO IN AND TEST THOSE.

IS THAT A HIGH RISK PROGRAM AGAIN THIS YEAR, EVEN THOUGH WE AUDITED IT LAST YEAR, SO THAT'S WHY WE'RE TESTING IT AGAIN.

OKAY.

AND ONE OF THE THINGS COOL.

TO WHAT EXTENT IS THERE ANY ROLL UP ONCE YOU'VE DONE YOUR AUDIT? DO WE HAVE, ROLLED UP BACK TO OMB A FEDERAL OVERSIGHT AUTHORITIES.

IS THIS INFORMATION AND RESULTS ABOUT AUDIT? IS THERE ANY ROLL UP, ARE THERE ANY ROLL UP REQUIREMENTS BACK TO THE, THE REPORTS ARE SUBMITTED ONLINE TO THE FEDERAL CLEARINGHOUSE, IF THAT'S WHAT YOU'RE REFERRING TO.

SO LAST YEAR DURING OUR SINGLE AUDIT, UH, THAT SUBMISSION WENT IN AND THEN AT THE END OF THE SINGLE AUDIT, IT WILL GO AS WELL.

SO THEY DO HAVE COPIES OF EVERY AUDIT.

THEY SEE THE AMOUNT OF EXPENDITURES THAT GARLAND HAS IN TOTAL, AND THEN THEY SEE WHAT WAS SELECTED AS THE MAJOR PROGRAM FOR TESTING, BECAUSE YOU'LL HAVE, YOU KNOW, UP TO 15 GRANTS, BUT WE ONLY HAVE TO TEST TO GET TO 20% OF EXPENDITURES.

SO THERE ARE SOME GRANTS THAT AREN'T GETTING TESTED AND THEY, THEY SEE WHICH GRANTS WERE SELECTED FOR TESTING WHAT OUR OPINION WAS AND ANY FINDINGS.

OKAY.

ANY OTHER QUESTIONS? QUESTIONS FROM STAFF? ANYONE? NO QUESTIONS, NOTHING.

I DON'T HAVE ANYTHING TO ADD EITHER, EXCEPT THANKS FOR, THANKS FOR COMING, BUT IT'S ALWAYS GOOD TO SEE YOU.

I THINK IT'S ALL OKAY.

THE NEXT ITEM ON THE AGENDA ITEM NUMBER THREE IS THE SCOFF LAW PROGRAM ON CHAIRMAN.

UM, THIS AUDIT WAS REQUESTED BY MR. BRADFORD, AS WELL AS MR. SLAY.

UH, UH, LET ME GIVE YOU A LITTLE HISTORY ABOUT THIS PROGRAM.

UM, TH THIS IS THE SCOFFLAW PROGRAM.

BASICALLY.

THIS IS, UH, A PROGRAM WHERE IF A VEHICLE OWNER HAS A PAST DUE FINES, FEES OR TAXES, OR, AND SO BASICALLY IF THEY'RE DELINQUENT IN THEIR PAYMENT TO THE CITY ON ANY TRAFFIC VIOLATION, UM, CD CAN, UM, GO THROUGH DIRECTLY WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLE, OR, UH, WE CAN OUTSOURCE IT THROUGH THE DALLAS COUNTY TO PUT A HOLD ON THEIR REGISTRATION UNTIL THOSE FINES ARE PAID.

UM, SO THAT IS WHAT THIS PROGRAM.

SO IN 2009, THE CITY ENTERED AN AGREEMENT WITH DALLAS COUNTY, UH, TO ENFORCE THIS PROGRAM, UH, BACK IN 2011, WE DID AN AUDIT.

UM, HOWEVER, UH, AS YOU ARE AWARE, A LOT OF THINGS HAVE CHANGED SINCE THEN.

UM, A SAFE LIGHT, A RED LIGHT CAMERA VIOLATIONS ARE NO LONGER APPLICABLE.

SO THIS IS SLIGHTLY DIFFERENT.

OBVIOUSLY THERE'S A COST ASSOCIATED WITH THIS PROGRAM THAT WE HAVE TO PAY, UH, DALLAS COUNTY.

SO THE CITY MANAGER AND THE MANAGING DIRECTOR OF CUSTOMER SERVICE, UH, ONE OF US TO LOOK INTO IT, TO SEE IF THIS PROGRAM IS COST EFFECTIVE.

AND ALSO IF THE INFORMATION SUBMITTED TO DALLAS COUNTY, ARE THERE SUFFICIENT? ARE THE FEES AS ASSESSED BY DALLAS COUNTY? ARE THEY IN COMPLIANCE WITH THE AGREEMENT? SO THOSE WERE THE OBJECTIVES FOR THIS AUDIT.

OUR SCOPE COVERED, UH, FROM JANUARY, 2018 THROUGH DECEMBER, 2020, PATRICIA MOORE DID THIS AUDIT.

SO I'M GOING TO TURN THIS OVER TO HER.

SHE'S GOING TO KIND OF GO OVER A LITTLE BIT MORE ABOUT WHAT WE DID AND WHAT WE FOUND.

SO THE CITY, IN ADDITION TO THE SCOFFLAW PROGRAM CAN Y'ALL HEAR ME OKAY, I'M GOING TO ASK THIS.

IN ADDITION TO THE SCOFFLAW PROGRAM, THE CITY USES ADDITIONAL, UH, AVENUES FOR COLLECTIONS, INCLUDING ISSUING ARREST WARRANTS AND TURNING OVER THE CASES TO COLLECTION AGENCIES.

AS JEN SAID, WE ENTERED INTO THIS, UH, IN OUR LOCAL AGREEMENT IN 2009.

AND THE, THE RIGHTS THAT DALLAS COUNTY IS CHARGING US HAVE REMAINED THE SAME THROUGHOUT THE TIME PERIOD.

SO THE DALLAS COUNTY CHARGES $5 AND 24 CENTS PER CASE.

IF THE CASE MEETS SCAFFOLD ELIGIBILITY, IF IT DOES NOT, THEY CHARGE $1 PER CASE TO LIST IT ON THE DALLAS COUNTY WANTED WEBSITE.

IN 2017, THE TEXAS TRANSPORTATION CODE WAS UPDATED TO STATE THAT THE DENIAL REGISTRATION EXPIRES ON THE SECOND ANNIVERSARY AFTER DMV APPROVAL.

AFTER THE TWO YEARS EXPIRES, THE SCOFF FLAG ON THE VEHICLE RECORD IS REMOVED, AND THE OWNER MAY PROCEED WITH REGISTRATION

[00:15:01]

OF THEIR VEHICLE.

THE WARRANT REMAINS IN PLACE, AND THE FINES AND FEES ARE STILL DUE.

SO THERE'S TWO PIECES TO THE PROCESS.

THE FIRST IS THE REQUEST FOR THE FLAG, THE ACCEPTANCE BY DALLAS COUNTY AND THE APPROVAL BY DMV ON A MONTHLY BASIS, THE CITY OF GARLAND SUBMITS, UM, CASES TO DALLAS COUNTY VIA FTPS.

THE COUNTY ACCEPTS THE CASES AND ADDS INDIVIDUALS TO THE WANTED WEBSITE.

THEY SEND THE FLAG REQUESTS ONTO TECHSTOP DMV VIA FTPS AND DMB DETERMINES ELIGIBILITY.

IF IT'S APPROVED, THE VEHICLE RECORD IS FLAG AND PREVENTED FROM REGISTRATION FOR TWO YEARS.

AND IF NOT APPROVED, THE OWNER CONTINUES TO REGISTER THEIR VEHICLE.

THIS IS BECAUSE IT'S THROUGH THE FTPS SYSTEM, THE MUNICIPAL COURT CITATION MAINTENANCE SYSTEM REFLECTS EACH OF THESE ACTIVITIES.

AT THE POINT IN TIME, WHEN AN INDIVIDUAL RESOLVES THEIR CASE, UH, THE CITY IS REQUIRED TO NOTIFY DALLAS COUNTY ON A DAILY BASIS BASIS OF THOSE CLEARANCES.

SO AGAIN, THE CITY NOTIFIES THE COUNTY VIA FTPS.

IF THE CASE WAS RESOLVED, THE COUNTY ACCEPTS THE CLEAR, REMOVES THE INDIVIDUAL FROM THE WANTED WEBSITE, AND THEN SUBMITS THE REQUEST TO CLEAR TO DMV.

DMV CLEARS THE SCALPEL FLAG REPORTS BACK TO DALLAS COUNTY THAT IT'S BEEN DISPOSED.

AND AT THE VA, THE RE THE OWNER MAY GO AHEAD AND REGISTER THEIR VEHICLE.

WHEN THE CASE IS CLEARED, SPECIFIC CODING IS USED IN THE MUNICIPAL COURT LOCATION MAINTENANCE SYSTEM TO INDICATE HOW IT WAS CLEARED.

THE USE OF A WCW CODE, WHICH WE'LL REFER TO AS THE PAID AT WINDOW, UH, CODE IS INDICATED.

UH, AND IT MEANS THAT THEY CAME IN AND PAID VIA WALK-IN INTERNET PHONE MAIL OR NIGHT DROP, BECAUSE IT IS A CHALLENGE TO DETERMINE IF AN INDIVIDUAL RESORTS THEIR CASE DUE TO BEING SCOFFED.

LOT.

THIS CODE IS THE MOST LIKELY INDICATOR.

SO DURING THE AUDIT SCOPE, THE CITY SUBMITTED 21,509 MINUTES COURT TRAFFIC CITATION CASES, 4,973 WERE SCOFFLAW FLAGGED, WHICH IS 23% OF THOSE 22,920.

ONE OF THE FLOOD CASES HAD BEEN CLEARED IN 2052.

WE'RE STILL FLAGGED THE REMAINING 16,536 CASES WERE INELIGIBLE FOR SCALPEL LIGHTING FOR VARIOUS REASONS WHICH MAY INCLUDE MISSING A, BEEN MISSING A LICENSE PLATE NUMBER FOR THE DRIVER OF THE VEHICLE WAS NOT THE OWNER.

SO TO DETERMINE HOW THESE T 2,921 CASES WERE CLEARED, WE REQUESTED ADDITIONAL INFORMATION FROM THE COURT CITATION MAINTENANCE SYSTEM.

WE RECEIVED INFORMATION ONLY FOR 2,888 CASES AS SUCH.

WE LIMITED OUR ANALYSIS TO THOSE.

SO THE CHART ON PAGE 10 INDICATES THE VARIOUS, UH, CATEGORIES OF CLEARANCES.

THE ONE ON THE FAR LEFT, THE TEN ONE IS THE 910 CASES, UM, THAT WERE CLEARED WITH THE WCW PAID AT WINDOW, CODING THE CHART HERE AT THE BOTTOM.

LET'S SEE, CAN YOU HOLD THAT ONE UP WITH THE BUBBLES? YEAH.

SO LET ME BACK UP AND SAY THE 2,888 CASES THAT WERE CLEARED COLLECTED 452,786 OF THOSE 910 WORK CLASSIFIED AS THE WCW CODING INDICATING THE GREATEST POSSIBILITY THAT THEY WERE SCOFFED LOFT FLAG, OR THOSE NINE HUNDRED AND TEN THREE HUNDRED TWENTY $1,433 WAS COLLECTED.

SO THE, THE CASES THAT WERE REFLECTED IN THE MUNICIPAL COURT SYSTEM FOR TXDOT APPROVAL, THAT COUNT WAS 835.

AND THE AMOUNT COLLECTED WAS 297.

WE DRILLED DOWN EVEN FURTHER TO, UH, TO DETERMINE THE NUMBER OF PAYMENTS OR THE AMOUNT OF PAYMENTS THAT WERE MADE AFTER THE SCOFF, ALL FIGHTING.

SOME PEOPLE WERE SET UP ON PAYMENT PLANS AND HAD BEEN PAYING THE DEFAULTED.

WE DIDN'T COUNT THOSE PAYMENTS.

SO THAT AMOUNT OF TO $267,032, THEN B BECAUSE OF THE TWO YEAR EXPIRATION LIMITATION, WE DETERMINED HOW MANY OF THOSE CASES WERE CLEARED WITHIN TWO YEARS OF BEING FLAGGED.

AND THAT RESULTED IN 750 CASES WITH A COLLECTION OF 258,145.

THE COST OF THE PROGRAM TO THE CITY FOR THE THREE-YEAR PERIOD WAS $42,594, AN AVERAGE OF 14,198 PER YEAR.

SO AS PREVIOUSLY NOTED, THERE WERE 21,509 CASES SUBMITTED TO THE COUNTY.

AND 23% WERE APPROVED BY DMV TEXTBOOKS, 77,

[00:20:01]

SINCE THE TEXAS ADMINISTRATIVE CODE CHAPTER TWO 17 WAS ADMITTED IN 2015 TO INDICATE THAT THE VEHICLE IDENTIFICATION NUMBER WAS A REQUIREMENT.

UM, MANY OF OUR CASES WERE AUTOMATICALLY INELIGIBLE.

33% OF THE 16 THAT WERE NOT ELIGIBLE WAS DUE TO NOT HAVING THE VAN WITHOUT THE VAN.

LIKE I SAID, THEY ARE AUTOMATICALLY KNOWLEDGEABLE TO FURTHER ANALYZE THE CAUSE OF NO BEN BEING IN THE SYSTEM, WE SAMPLED 68 OF THE 5,438 CASES SUBMITTED OF THOSE 68 CASES.

35 WERE ISSUED ELECTRONICALLY AND 33 WERE ISSUED MANUALLY WHEN THEY ISSUED CITATIONS ELECTRONICALLY, THEY'RE SCANNED.

THE BARCODE IS SCANNED FROM THEIR REGISTRATION STICKER, WHICH AUTOMATICALLY INSERTS THE VEN TO THE CITATION.

HOWEVER, THE VIN DID NOT APPEAR IN THE REPORTS THAT WERE EX EXPORTED FROM THE DALLAS COUNTY WEBSITE ON 16 OF THOSE.

SO I INQUIRED WITH GARLAND PD ABOUT THE REMAINING 19 ELECTRONIC CITATIONS.

THAT I'M SORRY, IT WAS 19 THAT DID NOT REFLECT THE VAN.

AND THIS WOULD REVEAL THAT 17 OF THOSE 19 WERE TEMPORARY OR PAPER TAGS.

AND BECAUSE THOSE GET ISSUED A PERMANENT LICENSE PLATE NUMBER, THERE WAS NO WAY TO TRACK THAT.

UM, I WAS NOT ABLE TO VERIFY THE REMAINING TWO.

UM, WHEN WE ASKED GARLAND PD ABOUT THE VAN NOT BEING RETRIEVED, THEY SAID IT MAY BE BECAUSE THE BARCODE WAS NOT READABLE DUE TO RAIN OR POOR PRINT QUALITY.

AND ADDITIONALLY PARTYING WITH ME, YOU REUSE PAPER TAGS AS A RESULT OF SUBMITTING CASES WITHOUT EVENT, THE CITY PAID $5,438 JUST FOR THE INDIVIDUAL TO BE LISTED ON THE DALLAS COUNTY, WANTED A WEBSITE THAT MAY NOT HAVE BEEN FULLY AWARE OF THE 2015 CODE AMENDMENT REQUIRING THE BIN UPON SUBMISSION, OR THIS COULD HAVE BEEN A FILE TRANSFER ERROR OBSERVATION.

NUMBER TWO WAS A SCOFFLAW EXPIRATIONS.

THE TEXAS TRANSPORTATION CODE WAS ALSO WAS AMENDED TO TAKE EFFECT IN SEPTEMBER, 2017, STATING THE INFORMATION PROVIDED TO MAKE A DETERMINATION EXPIRES ON THE SECOND ANNIVERSARY OF THE DATE, THE INFORMATION WAS PROVIDED.

AND I CONFIRMED THAT WITH DMV SCOFFLAWS EXPIRED TWO YEARS AFTER APPROVAL BY DMV.

ONCE THE TWO YEARS ELAPSES REGISTRATION CAN NO LONGER BE DENIED AND THE SCOFFLAW FLIGHT IS CLEARED FROM THE VEHICLE RECORD.

ALTHOUGH THE FONT IS OUTSTANDING IN THE WARRANT REMAINS IN PLACE DURING THE AUDIT PERIOD.

THERE WERE, AS I SAID, PREVIOUSLY, 2,921 CASES CLEARED, AND I SAMPLED 67 OF THOSE CASES TO REVIEW FURTHER 26 OF THE 67 CASES HAD BEEN CLEARED IN THE MUNICIPAL COURT CITATION MAINTENANCE SYSTEM DUE TO EXPIRATION AFTER FURTHER TESTING, NONE OF THE 26 CASES HAD BEEN SCOFFED OFF FLAG AND THE MUNICIPAL COURT MAINTENANCE SYSTEM FOR THE FULL TWO YEAR PERIOD.

THE TIME PERIOD RANGED FROM THREE TO 667 DAYS, BUT 17 OF THE 26 EXPIRED IN LESS THAN ONE YEAR STAFF WAS NOT FULLY AWARE OF THE IMPLICATIONS OF THE TWO YEAR EXPRESSION OR THE SHORTENED EXPIRATION TIMEFRAME OCCURRING IN THE SYSTEM.

THE CITY IS PAYING A FEE AND NOT RECEIVING THE FULL TWO YEAR BENEFIT OF THE SOFTBALL PROGRAM.

OBSERVATION.

NUMBER THREE, IS THERE ANY QUESTIONS BEFORE I MOVE ON SO FAR, I WAS JUST GOING TO HOLD TO THE END.

OKAY.

OKAY.

UH, OBSERVATION NUMBER THREE, THE DATE OF TRANSFER ANOMALIES DURING A REVIEW OF THE MUNICIPAL COURT CITATION MAINTENANCE SYSTEM DATA, THERE WERE 75 CASES THAT DID NOT HAVE ANY INDICATION IN THE MUNICIPAL COURT SYSTEM THAT THEY WERE SCUFFLE FLAGGED.

HOWEVER, THEY DID APPEAR IN THE DETAILED SCOFFLAW REPORTS THAT WERE EXPORTED FROM THE DALLAS COUNTY WEBSITE, AND THE CITY WAS CHARGED THE $5 AND 24 CENTS LAGGING FREE FOR EACH ONE, OBSERVATION NUMBER FOUR, DATE GAPS IN DATA TRANSFERS FOR 25 OF THE 67 CASES TESTED WITH A CLEARED STATUS, SEVEN DAYS ELAPSED BETWEEN BEING CLEARED IN THE SYSTEM AND CONFIRMATION BEING DISPOSED BY THE COUNTY THAT WAS DEEMED TO BE REASONABLE.

HOWEVER, THERE WERE 23 CASES THAT DID NOT HAVE A CONFIRMATION OF BEING DISPOSED BY THE COUNTY FOR A RANGE OF NINE TO 359 DAYS AFTER BEING TIMELY CLEAR WITH BOB MUNICIPAL COURT, THE REMAINING 19 WERE CLEAR DUE TO HAVING AN IMPROPER EXPIRED STATUS AS REFERRED TO OBSERVATION.

NUMBER TWO, THE FOLLOWING EXAMPLE, UM, ON, AT THE TOP OF PAGE 15 SHOWS AN EXAMPLE OF HAVING EXPIRED AFTER 359 DAYS, WELL HAD LAPSED BETWEEN,

[00:25:01]

UH, CLEARED BY MUNICIPAL COURT AND CONFIRMATION OF DISPOSAL OF BY THE COUNTY.

THE STAFF WAS NOT AWARE THAT THIS WAS OCCURRING AND STATED THAT THEY WOULD REVIEW THIS AND MAY HAVE BEEN CAUSED BY PROGRAMMING OR FILE TRANSFER ERROR, OBSERVATION, NUMBER FIVE, PROGRAM EFFECTIVENESS METRICS.

THERE ARE MINIMAL ESTABLISHED PERFORMANCE METRICS IN PLACE.

INTERNAL AUDIT MADE RECOMMENDATIONS IN 2011 TO DEVELOP PERFORMANCE METRICS AND PERFORM CONTINUOUS MONITORING, BUT THESE WERE NOT IMPLEMENTED.

SO INTERNAL AUDIT RECOMMENDED THAT MUNICIPAL COURT WORKED WITH THE IT DEPARTMENT TO REEVALUATE SUBMISSION CRITERIA TO ENSURE ONLY CASES WITH ALL REQUIRED INFORMATION NECESSARY FOR SCALPEL FLAGGING AS SUBMITTED MANAGEMENT CONCURS, AND STATED THAT THEY WILL MEET WITH IT STAFF TO REEVALUATE INFORMATION BEING TRANSMITTED, AND IF NECESSARY REPROGRAM THE SELECTION CRITERIA TO INCLUDE ONLY CASES ELIGIBLE FOR FLIGHTING IN THE SCALPEL PROGRAM.

UH, WE ALSO RECOMMENDED THAT MUNICIPAL COURT WORK WITH THE IT DEPARTMENT AND COUNTY TO IDENTIFY AND RESOLVE THE CAUSE OF CASES EXPIRING THE SYSTEM PRIOR TO THE ANNIVERSARY, THE CAUSE OF THE DELAYS IN REPORTING CASE DISPOSITION AND THE CAUSE OF SCOFF WHILE FIGHTING EVIDENCE, NOT APPEARING IN THE CITATION MAINTENANCE SYSTEM MANAGEMENT CONCURRED AND SAID THEY WILL WORK WITH IT STAFF AND DALLAS COUNTY TO DETERMINE CAUSES FOR EARLY EXPIRATION AND GAPS IN THE CASE, REPORTING TIMEFRAMES AND WILL ENSURE BOTH DATABASE SYSTEMS ARE OPERATING CORRECTLY.

ANOTHER RECOMMENDATION WAS THAT WE WOULD DEVELOP MEASURES TO VERIFY PROGRAM EFFECTIVENESS AND CONDUCT CONTINUOUS MONITORING OF THE SCALPEL PROGRAM.

THAT INCLUDES KINDLINESS, ACCURACY, COMPLETENESS, AND EFFECTIVENESS, INCLUDING A COSTING COLLECTIONS ANALYSIS MANAGEMENT CONCURRED.

AND SO THEY WOULD INITIATE MONTHLY MONITORING OF CASE SUBMISSIONS TO ENSURE TIMELY, ACCURATE SUBMISSIONS ARE OCCURRING AND DEVELOP REPORTING THROUGH VARIOUS PERFORMANCE MEASURES, WHICH PROVIDE PERIODIC COSTING COLLECTIONS ANALYSIS.

I ALSO RECOMMENDED DEVELOPING AND IMPLEMENTING WRITTEN POLICIES AND PROCEDURES TO OUTLINE ROLES AND RESPONSIBILITIES AT THE SKULL CALLED PROCESS MANAGEMENT REVIEW AND REPORTING MANAGEMENT CONCURRED, AND STATED THAT THEY WOULD REVIEW AND FURTHER DOCUMENT CURRENT SCULPTURAL PRACTICES AND PROCESSES AND ENHANCEMENTS WILL BE MADE TO THE THREE ROLES AND RESPONSIBILITIES AND REPORTING FUNCTIONS AND WOULD CONDUCT MONTHLY REVIEWS OF PROGRAM COSTS AND AMOUNTS COLLECTED.

ALL OF THIS WOULD OCCUR.

IMPLEMENTATION DATE IS MARCH, 2022, ANY QUESTIONS AND THE RECOMMENDATIONS COVERED MY QUESTIONS.

THANK YOU.

UM, THANK YOU FOR THE EXCELLENT PERFORMANCE, BUT YOU STILL QUESTION, UM, YOUR, YOUR, YOUR AUDIT TAKE A LOOK AT ALL AT THE, YOU MENTIONED THE BAN ISSUE, A NUMBER OF TIMES, UH, THE TRAINING ASPECT YOU MENTIONED IN YOUR RECOMMENDATIONS.

DID YOU TAKE ANY LOOK AT THAT OR DID THAT, THAT WAS NOT REFLECTED IN ANY OF THE RECOMMENDATIONS IF THEY ARE.

CAN YOU TALK ABOUT THAT? AND SECOND THING IS I KNOW THE IMPLEMENTATION DATES ON ALL OF THESE ARE MARCH, MARCH 22ND.

ARE THEY ANY REQUESTED, INTERIM UPDATES, SPANISH MOVE TOWARD ACHIEVING, YOU KNOW, THE APPOINTMENTS AND IMPLEMENTING YOUR RECOMMENDATION.

IF I MAN SPEAK TO THAT, EVERYBODY IN HERE SAYS MARCH, MARCH, 2022, BUT BETWEEN NOW AND MARCH 20 THROUGH 22, ARE THERE ANY PROGRESS UPDATES, WILL THERE BE ANY FOLLOW UP BEFORE MARCH 22 OR IS THAT SURE, UH, MAYOR PRO TEM, UM, UM, KEVIN SLEIGH HAS BEEN KEEPING ME UPDATED, KEEPING US UPDATED ON THE PROPER PROGRESS THAT THEY HAVE BEEN HAVING.

THEY HAVE BEEN MEETING WITH IT, AND I BELIEVE THEY MET ON A FEW OCCASIONS AND I ALSO TALKED TO STEVE KNEECAP ON THE IT SIDE.

AND SO THEY HAVE BEEN WORKING TOGETHER.

I DON'T HAVE THIS IN THE AUDIT PLAN FOR NEXT YEAR TO REVIEW, BUT, UH, KEVIN HAS BEEN UPDATING ME ON, ON A LOT OF THESE THINGS.

SO WE WILL CONTINUE TO, UH, GET THAT UPDATE, I BELIEVE.

AND IF, IF, YOU KNOW, IF THERE'S ANYTHING WE CAN DO, AND WE ALSO OFFER THAT WE WILL PROVIDE SOME TRAINING, UH, TO MUNICIPAL COURT STAFF, IF THEY NEED TO KNOW HOW TO DEVELOP SOME OTHER PERFORMANCE METRICS AND STUFF LIKE THAT.

SO, UM, THAT'S WHERE WE ARE RIGHT NOW.

I FEEL THAT THEY WILL WORK THROUGH THIS.

AND I ALSO WANT TO EMPHASIZE ONE THING, A MUNICIPAL COURT STAFF WERE VERY COOPERATIVE AS WELL AS DALLAS COUNTY TAX OFFICE.

AND WE MET WITH THEM ON A FEW OCCASIONS.

THEY'VE BEEN GREAT TO WORK WITH.

UM, THEY WANTED TO SUCCEED US WITH AS MUCH AS WE DID.

AND SO JUST WANTED TO EMPHASIZE THAT AS WELL.

[00:30:05]

THANK YOU.

A COUPLE OF QUESTIONS.

SO THE 16,000 OR SO THAT WERE REJECTED, ABOUT 5,000 OF THOSE WERE FOR VIN THAT THE OTHER, THE OTHER REMAINING 11,000, ARE THERE ANY SPECIFIC TYPES OF ISSUES THAT WE'RE HAVING WITH THOSE ARE JUST AGREE.

WE DEAL WITH THEM.

IT HAD TO DO WITH THE DRIVER OF THE VEHICLE NOT BEING THE REGISTERED.

OKAY.

OKAY.

AND IS THIS PROCESS THAT THE WAY IT CURRENTLY WORKS, IS IT IN, IS WHAT'S THE SPLIT BETWEEN MUNICIPAL COURT STAFF AND IT, IS IT ENTIRELY, IT SOUNDS LIKE IT'S BASICALLY AN IT FUNCTION THAT ALL THIS IS AUTOMATED IS WHAT GETS AUTOMATED.

AND SO THERE'S SOME SYSTEM THAT AUTOMATICALLY CHOOSES AND SUBMITS ALL OF THESE THINGS.

THERE'S NO ONE ACTUALLY, NO, THERE'S ACTUALLY A CRITERIA THAT A MUNICIPAL COURT HAS PROVIDED TO IT.

AND THESE ARE THE CITATIONS THAT WE WANT YOU TO PUSH TO, UH, TO THE DALLAS COUNTY DATABASE.

SO USING THAT CRITERIA, BUT THINGS HAVE CHANGED SINCE THAT GREAT IDEA HAS DEVELOPED IN 2017.

WE HAD SOME LAW CHANGES.

SOME OF THOSE WERE NOT, OBVIOUSLY IT WOULDN'T KNOW.

UH, AND SO I TH I BELIEVE THAT'S PART OF THE REASON.

OKAY.

SO ONCE, ONCE THEY SELECT THE NEW CRITERIA, UM, THINGS WILL GO SMOOTHER.

OKAY, GREAT, GOOD, DETAILED AUDIT.

I APPRECIATE IT.

AND I THINK IT, YOU KNOW, TO THE EXTENT, THERE'S A QUESTION OF WHETHER THE PROGRAM IS COST-EFFECTIVE, WHERE THERE I BELIEVE IS, IS, UH, UH, COUNCIL MEMBER GIVEN.

SHE USED TO SAY WHETHER THE JUICE IS WORTH THE SQUEEZE, DESPITE THE VARIOUS, UH, PITS AND SEEDS ASSOCIATED WITH THIS, THERE'S ACTUALLY A DECENT AMOUNT OF JUICE COMING OUT OF THE SQUEEZE ON THIS.

SO THAT'S GOOD TO KNOW.

THANK YOU VERY MUCH WITH THAT.

LET'S MOVE ON TO THE NEXT ITEM, WHICH IS ITEM NUMBER FOUR, THE INVENTORY MANAGEMENT AUDIT, UM, OH, CHAIRMAN, UH, I'LL GO AHEAD AND GIVE AN INTRODUCTION TO THIS AUDIT.

UH, YOU MAY REMEMBER LAST YEAR WE, WE ISSUED A REPORT ON THE INVENTORY MANAGEMENT, UH, AUDIT.

AND SO THIS IS THE PART TWO OF THAT SAME AUDIT.

UH, BASICALLY OUR OBJECTIVES WERE TO, UH, FOCUS MAINLY ON OPERATIONAL INVENTORY AND TOOLS AND EQUIPMENTS.

AND WHEN COVID HIT, WE PUT THIS AUDIT ON HOLD.

UH, BUT THEN WHEN, WHEN EVERYBODY GOT BACK, WE DECIDED TO CONTINUE ON THIS.

SO WE ACTUALLY COVERED 10 DIFFERENT DEPARTMENTS IN 15 DIFFERENT LOCATIONS.

UH, BASICALLY THREE OBJECTIVES IDENTIFY THE POPULATION OF OPERATIONAL INVENTORY TOOLS AND SMALL ACUMEN ACROSS THE CITY.

AND IF DETERMINING, IF THE DEPARTMENTS HAVE ADEQUATE CONTROLS TO ENSURE ACCURACY AND COMPLETENESS OF INVENTORY RECORDS, ACCOUNTABILITY OF INVENTORY, TRANSACTION, AND SAFEGUARDING OF OPERATIONAL INVENTORY ALSO DETERMINE IF THE DEPARTMENTS HAVE ADEQUATE CONTROLS TO MANAGE SICK AND SECURE TOOLS AND SMALLER COMMITMENTS FOR OUR SCOPE.

UH, WE MAINLY COVERED, UM, INVENTORY ACTIVITIES BETWEEN FEBRUARY, 2018 THROUGH DECEMBER, 2019.

THIS AUDIT SCORE DID NOT INCLUDE THE CITY WAREHOUSE, GPL, FIRE, OR POLICE INVENTORY.

SO THIS WAS COVERING MAINLY THE, THE DEPARTMENTS THAT HAD NOT A WHOLE LOT OF INVENTORY, BUT THEY HAD OPERATIONAL INVENTORY AND TOOLS.

TED ACTUALLY CONDUCTED THIS AUDIT.

UH, ALEXA ASSISTED HIM WITH THIS.

I'M GOING TO TURN THIS OVER TO TED AND HE WILL LET YOU KNOW ABOUT RUSSO.

GREAT.

JUST TO CLARIFY THIS, CAN YOU HEAR ME WITH THIS? I CAN'T SEE YOU, BUT AT LEAST IF YOU CAN HEAR ME THAT'S GOOD ENOUGH.

SO WHAT, SO THERE WERE TWO TYPES OF WHAT WE CLASSIFIED AS INVENTORY ITEMS ON THIS AUDIT.

NUMBER ONE, WHICH IS THE OPERATIONAL INVENTORY, AND THOSE ARE ITEMS THAT, UH, THAT THE DEPARTMENTS USE FOR MAINTENANCE, REPAIR AND SUPPLY ITEMS ON A DAY TO DAY BASIS, OR AS NEEDED, UH, UH, TO, UH, KEEP THE OPERATIONS OF THE BUSINESS RUNNING THE SECOND TYPE OF, I GUESS, LET ME GIVE YOU A COUPLE OF EXAMPLES AND WOULD IT BE RECYCLED CARDS, EQUIPMENT BELTS, FURNITURE, FERTILIZER, WEED, AND INSECT KILLER AND PAINT.

THE SECOND TYPE OF INVENTORY IS THE TOOLS AND SMALLER EQUIPMENT.

SO THIS IS PRIMARILY RELATED TO HAND A HAND TOOL.

AND AS YOU HAD MENTIONED, THERE WERE 10 DEPARTMENTS THAT WE LOOKED AT.

IT WAS ENGINEERING, ENVIRONMENTAL WASTE SERVICES, FACILITIES, FIRE WHEEL, FLEET PARK, AND RECREATION, PUBLIC AND MEDIA RELATIONS, STREETS, TRANSPORTATION.

AND, UH, WHAT DO YOU TELL, WHAT IS

[00:35:03]

THE, UH, AND IS WHAT WE ALL IS BESIDES DOING ANY KIND OF ANALYSIS? AND WE COULD GATHER ON INFORMATION.

WE ALSO DID THE SITE VISITS AND PERFORM PHYSICAL INVENTORIES, UH, WHERE POSSIBLE.

SO, UH, UH, WITH ALL THE DEPARTMENTS AND WE DIDN'T SEPARATE ANY OF THE DEPARTMENTS OUT IN THE REPORT ITSELF HERE, BUT PRIMARILY THE FINDINGS WERE THAT ALL THE DEPARTMENTS DO THINGS DIFFERENTLY.

THERE'S NOT AS CENTRAL PROCESS, OUR STANDARD PROCESS.

SO WE HAD, WE HAD SOME CHALLENGES WHEN WE'D SAY INVENTORY, AND WE'D TRIED TO TELL THEM WHAT INVENTORY IS.

EVERYBODY WOULD DOING SOMETHING A LITTLE BIT DIFFERENT, SO THEY MAY BE DOING SOMETHING, BUT IT'S ALL A LITTLE BIT DIFFERENT.

AND SO, UH, THERE WAS NOT THAT STANDARD PROCESS IN PLACE.

AND SO 10 OF THE 15 LOCATIONS DID HAVE A LIST OF TOOLS AND EQUIPMENT AND, UH, WHICH COULD EITHER BE ON SITE OR THEY COULD BE IN A LOCKED ROOM OR A GATED AREA OR A SHED.

AND, UH, BUT THEY DIDN'T HAVE ANY MECHANISM TO DETERMINE AND EVALUATE THE VALUE AND THE QUANTITIES AND INVENTORY.

SO THAT'S ONE THING THAT YOU NOTICE IN THE REPORT.

WE DON'T HAVE THE VALUE OF ALL OF THIS BECAUSE THERE IS, THERE IS NOTHING THAT'S VALUED AT THIS POINT IN TIME.

UH, AND FOR THE PEOPLE THAT DO HAVE IT, THEY USUALLY USE, UH, USUALLY UTILIZE AN EXCEL SPREADSHEET TO TRACK IT.

BUT IT'S WHAT THEY DON'T DO IS ANY PERIODIC, UH, UH, CHECKS TO MAKE SURE THAT WHAT THEY HAVE ON THEIR SPREADSHEETS, THAT THEY STILL ACTUALLY HAVE THE ITEMS. UM, AND WE DID DO SOME TESTING ACROSS THE, ACROSS THE VARIOUS DEPARTMENTS.

AND I THINK OUR SAMPLE WAS APPROXIMATELY 181 ITEMS. AND SO WE WERE ABLE TO VALIDATE IF THEY HAD IT ON A LIST THAT IT WASN'T INVENTORY WITH THE EXCEPTION OF ONE ITEM, UH, THAT WAS OFF BY ONE.

AND WE ALSO DID SOME PURCHASING TESTING, MEANING THAT WE LOOKED AT ANY INVOICES, OUR P CARD ACTIVITY, OUR WAREHOUSE ACTIVITY, UH, FAR THE, UH, TIME PERIOD OF THE AUDIT.

AND THEN WE WANTED TO VALIDATE THAT THEY HAD THAT THOSE TOOLS ARE EQUIPMENT IN, IN THEIR INVENTORY.

AND WE WANT TO, SINCE WE DON'T KNOW WHICH ONE OF THE TOOLS WERE ACTUALLY PURCHASED BY THAT, BY ONE OF THOSE METHODOLOGIES, WE COULDN'T DETERMINE ANYTHING EXCEPT FROM THE STANDPOINT THAT THEY HAD AT LEAST ONE OF THOSE ITEMS. SO THEY COULD HAVE GOTTEN 10 SCREWDRIVERS FROM THE WAREHOUSE.

AND, BUT THEY HAD 20 OF THEM IN STOCK OR IN THEIR, ON THEIR LIST ARE IN THEIR PHYSICAL PRESENCE.

AND SO WE WERE ABLE TO DETERMINE, OKAY, WE MADE THE ASSUMPTION, OKAY, OUT OF THOSE 2010, WAS THAT RELATED TO THAT PURCHASE.

SO THE RECOMMENDATION FOR THIS WAS OVERALL THAT CITY ADMINISTRATION SHOULD DEVELOP A CITY DIRECTIVE OR POLICY THAT PROVIDES, UM, OF THIS OF INVENTORY.

AND, AND I DIDN'T MENTION THIS EARLIER, BUT THIS IS ALL RELATED TO ITEMS UNDER $5,000.

AS WE DO ALREADY HAVE A DIRECTIVE RELATED TO FIXED ASSETS THAT ARE OVER $5,000, OR THAT HAS A LIFE EXPECTANCY OVER A YEAR.

SO IN THIS DIRECTIVE, WE'RE SAYING THAT WE SHOULD DEFINE THE INVENTORY, AND THEN WE SHOULD ALSO HAVE ANY CRITERIA AS TO HOW WE NEED TO TRACK AND MAINTAIN THAT WHETHER IT'S A CITY APPLICATION OR WHETHER IT'S AN EXCEL SPREADSHEET, WHICHEVER WAY THAT GOES, DEFINE ROLES AND ROUNDS, UH, ROLES AND RESPONSIBILITIES FOR THE MANAGEMENT OF THE INVENTORY, AND THEN PERFORM PERIODIC AND DOCUMENT, UH, INVENTORY PROCEDURES AND REQUIREMENTS.

AND WE ALSO SAID TO CONSIDER ADDING AN ASSET TAG, I THINK WHEN WE DID THE INITIAL AUDIT ON THIS, WE WERE WITH WASTEWATER ONLY, AND IT AN X AMOUNT OF YEARS AGO, THEY ACTUALLY WENT THROUGH AND IDENTIFIED AND IDENTIFIED ALL OF THEIR TOOLS WITH A, UH, UH, THEY DID A COLOR CODING SCENARIO.

AND THEN WE, UH, SAID UNTIL THE CITY ADMINISTRATION DOES ISSUE THIS DIRECTIVE THAT WE NEEDED EACH OF THE DEPARTMENTS TO START WORKING ON A PROCESS TO IDENTIFY VALUE

[00:40:01]

AND DOCUMENT THE INVENTORY, AND THEN TO START PERIODICALLY PERFORMING, UH, PHYSICAL INVENTORIES AND TOOL COUNTS AND BOTH CITY ADMINISTRATION ENDED.

AND ALL THE DEPARTMENTS AGREED THAT, UH, WITH THE, IN CONCURRED, WITH THE, UH, RECOMMENDATIONS AND BOTH ARE WORKING TO GET THIS DONE.

AND BY OCTOBER, 2021, ANY QUESTIONS? SURE.

WE CAN FINISH IT.

I CAN WAIT UNTIL YOU FINISH.

OH, NO, I'M FINISHED WITH THIS ONE.

YES, NO, THAT'S FINE.

YEAH.

MY QUESTION IS, AS IT RELATES TO THIS, SO BASED ON YOUR FINDINGS RECOMMENDATION, UM, DID YOU HAVE, ARE THERE ANY AREAS THAT CAR, THE PURCHASES AND LOSSES WERE YOU ABLE TO, OR IT'S SOMETHING YOU DON'T LOOK AT IS THIS EQUIPMENT TOOLS AND THINGS LIKE THAT, OR IS THERE ANY WAY TO ACCESS, UH, LOSSES OR LOSS RATE BECAUSE OF THE LACK OF A, A STRUCTURED INVENTORY PROGRAM? SO LET'S SAY WE BOUGHT 20 SCHOOL DRIVERS, FOR EXAMPLE, AND YOU CAN COME FOR 10 OF THEM.

RIGHT.

BUT THERE ARE 10 SOMEWHERE YOU DON'T KNOW WHERE, SO THAT, SO THAT WOULD BE, COULD BE COUNTED AS A LOSS.

DID YOU, WE ABLE TO IT AT ALL, EITHER DISCUSS THAT, IF YOU UNDERSTAND WHAT I'M.

YES.

YEAH.

AND WE WEREN'T, WE WERE NOT ABLE TO COME TO ANY KIND OF CONCLUSIONS LIKE THAT BECAUSE EITHER THEY DIDN'T HAVE A LIST OR IF THEY DID HAVE THE LIST, THE LIST MAY NOT HAVE BEEN UPDATED FOR A YEAR OR TWO YEARS OR SIX MONTHS.

SO WE WEREN'T DOING ALL THIS WE CAN DO IS SEE THAT WE TOOK A SAMPLE OF WHAT THEY ASKED THE PHYSICAL, UH, UH, THE PHYSICAL TOOLS OR EQUIPMENT, AND WAS THAT TOOL OR EQUIPMENT ON THEIR LIST.

AND THEN FROM THE STANDPOINT OF THE PURCHASES, UH, THEY COULD HAVE BOUGHT TOOLS THAT THEY'VE HAD FOR FIVE OR SIX YEARS.

AND WE DIDN'T, WE WOULDN'T KNOW WHEN THEY BOUGHT THAT TOOL, ALL THIS, WE WOULD KNOW THAT YES, THEY PURCHASED THESE THREE WRENCHES AND THEY HAVE FIVE WRENCHES.

SO WE'RE ASSUMING THAT THOSE THREE WRENCHES ARE PART OF THOSE FIVE THAT THEY HAVE.

SO I DON'T KNOW IF THAT'S ANSWERING YOUR QUESTION ON THAT, BUT WE WEREN'T ABLE TO COME UP WITH ANY KIND OF LAWS, A PERCENTAGE ON THAT.

WELL, UH, WELL, I JUST WANT TO ADD TO THAT WHEN IN THIS CASE, IN THIS INSTANCE, IN THIS AUDIT WAS BASICALLY LOOKING AT HIGH LEVEL GENERAL CONTROLS.

AND, UH, AND ALSO WHEN WE, UH, WHEN WE TOOK A SAMPLE, UH, TO TEST TO MAKE SURE THAT THEY EXIST, FOR THE MOST PART, THEY WERE ABLE TO SHOW US, UH, LIKE TED SAID, WE COULDN'T TELL IF IT WAS THE ONE THAT THEY BOUGHT RECENTLY OR TWO YEARS AGO, BECAUSE THEY GOT MORE THAN ONE.

UH, SO, BUT AGAIN, THE SCOPE WAS MAINLY, UH, TO HAVE A GENERAL CONTROL ASSESSMENT AND TO GO BACK AND, UH, AND, UH, WAS MORE OF AN EDUCATIONAL PRACTICE AS WELL.

UH, AS YOU REMEMBER, WE DID A SPECIAL PROJECT A FEW MONTHS AGO.

IN THAT INSTANCE, WE WERE ABLE TO DOCUMENT HOW MUCH WAS THE LOSS, BECAUSE WE COULD CLEARLY SEE THE ITEMS WERE MISSING, BUT IN THIS INSTANCE, AS WE DIDN'T GET TO THAT LEVEL, IT WAS MORE ABOUT, YOU KNOW, HEY, HERE, HERE, HERE'S HOW YOU CAN TRACK IT.

AND THERE WERE SOME CONFUSION AS WELL.

THE GOOD NEWS IS AFTER CONDUCTING THIS AUDIT A LOT OF DEPARTMENTS, MOST OF THEM, IN FACT, ALL OF THEM HAVE DEVELOPED SOME KIND OF TRACKING MECHANISM AND THEY WERE IN CONTACT WITH TED.

UH, HEY, DOES THIS LOOK GOOD? IS THIS WHAT WE SHOULD DO? AND SO, I MEAN, I WILL USE ONE EXAMPLE AS A PMO, THE MEDIA RELATIONS, AND THEY, THEY DIDN'T REALLY HAVE A LOT OF TRACKING.

AS YOU KNOW, THEY HAVE A LOT OF TOOLS FROM VIDEO EQUIPMENT, BUT DAN AND DOROTHY, THEY WORKED CLOSELY WITH TED AND STARTED TRACKING ALL OF THAT.

UM, SO THIS TIME IT WAS MORE ABOUT EDUCATION AND ALSO, UH, TRYING TO UNDERSTAND WHAT WE HAD AND WHAT WE DIDN'T.

AND I SHOOT ME, LET ME SAY ONE MORE THING HERE.

AND I WILL, AND I FORGOT TO SAY THIS EARLIER, BUT FROM THE PHYSICAL SECURITY STANDPOINT THAT WE DID THINK THAT ALL THE DEPARTMENTS HAD ADEQUATE PHYSICAL SECURITY MEANS, MEANING THAT THEY EITHER, IF THEY HAD TOOLS ON TRUCKS,

[00:45:02]

THEY HAD THEM IN A LOCKED AREAS BEHIND GATED AREAS ARE IN, IN A WAREHOUSE.

THEY HAD SHEDS THAT WERE THEY AT LA IF THEY HAD A SUPPLY ROOMS, UH, IN THEIR, UH, UH, IN THEIR DEPARTMENTS, THOSE HAD LIMITED SECURITY TO IT, OR THERE'S CAGES OR WHATEVER.

SO WE FELT THAT PHYSICAL SECURITY IS ADEQUATE.

IT'S JUST THE DAY TO DAY.

SO YOU HAVE A TRUCK WITH 25 TOOLS ON IT.

THAT TRUCK GETS TURNED IN, AND NOW HOW DID THEY KNOW THERE WAS 25 ON IT BECAUSE THEY DIDN'T KEEP TRACK OF IT.

AND NOW THEY TURNED IT IN AND THERE'S ONLY 23 TOOLS.

SO TWO OF THEM LEFT SOMEWHERE, BUT THEY DIDN'T KNOW THERE WERE 25 TOOLS ON THAT TRUCK TO START OFF WITH.

AND THAT'S WHAT WE'RE TRYING TO GET HIM TO START DOING, HONESTLY, NO MORE, UH, NO QUESTIONS FOR ME, A GOOD JOB AS ALWAYS.

I TRUST THAT, UH, I TRUST THAT CITY ADMINISTRATION WILL KIND OF FIND THE RIGHT WAY TO NAVIGATE THROUGH THIS.

I MEAN, IT'S, YOU KNOW, IT WOULD BE NICE TO HAVE A, A UNIFIED SYSTEM.

IT PROBABLY MAKES SENSE.

I'M SURE THERE ARE TONS OF FOLKS FROM MORE THAN HAPPY TO SELL US ONE AND PERHAPS IN CONJUNCTION WITH A, SOME OTHER KINDS OF, WHETHER IT'S FINANCIAL OR PURCHASING SOFTWARE OR WHATEVER, BUT, YOU KNOW, I TRUST IT JUST AT YOUR ALL FIGURE THAT OUT AND FIND THE RIGHT BALANCE BETWEEN, YOU KNOW, SOMETHING THAT, THAT GIVES US ACCOUNTABILITY, BUT, BUT ISN'T OVERLY BURDENSOME SO THAT, YOU KNOW, WE DON'T HAVE SECRETARIES COUNTING, PAPERCLIPS EVERYDAY KIND OF THING.

AND I, AND I KNOW THAT'S NOT WHAT YOU'RE SUGGESTING, BUT IT'S A MATTER OF FINDING THAT, THAT RIGHT PLACE TO MAKE, MAKE SURE THAT WE CAN ENSURE THE PUBLIC TRUST.

AND THERE WERE PEOPLE THAT THOUGHT WE WANTED THEM TO COUNT THE PAPERCLIPS.

WE SAID, NO, WE'RE NOT LOOKING FOR THAT.

RIGHT.

RIGHT.

AND I KNOW OUR FOLKS IN ALL OF THESE DEPARTMENTS, THEY'LL BE GLAD TO GET THE TOOLS.

THEY WANT TO DO THE RIGHT THING AND THEY WANT TO LIVE.

THEY VERY MUCH WANT TO BE ACCOUNTABLE.

SO LOOK FORWARD TO THAT.

THANK YOU WITH THAT.

WE'LL MOVE TO ITEM NUMBER FIVE, THE CODE COMPLIANCE, MULTIFAMILY AUDIT FOLLOWUP CHAIRMAN, UH, AS SOME OF YOU MAY REMEMBER, WE DID A COURT COMPLIANCE AUDIT IN 2018.

UH, THAT WAS A VERY COMPREHENSIVE AUDIT, BUT, UH, WE DECIDED TO DO A FOLLOW-UP ON THE MULTIFAMILY SIDE OF IT.

AND BECAUSE THERE WERE SOME RECOMMENDATIONS IN THAT AREA AND WHICH REALLY NEEDED SOME ENHANCEMENT, HAPPY TO REPORT THAT, UH, CODE MANAGEMENT HAS DONE AN EXCELLENT JOB IN IMPLEMENTING MOST OF THOSE RECOMMENDATIONS.

AND THIRD IS GOING TO COVER THOSE.

UH, I DO WANNA, UM, UH, INFORM YOU, UH, THAT ONE OF THE THINGS THAT YOU WILL HEAR FROM TED ABOUT, UM, CRM UPGRADE.

UH, BUT, AND I DID GET SOME QUESTIONS ON THAT.

SO I'M GOING TO COVER THAT UPFRONT.

UM, SINCE THIS AUDIT HAS BEGUN, UM, IT DEPARTMENT HAS BEEN MEETING WITH A HAZMAT WITH A CORE DEPARTMENT AND IDENTIFIED THAT THE SYSTEM IS NOT UP-TO-DATE.

UM, AND STEVE HAS ACTUALLY REACHED OUT TO ME AND INDICATED TO ME THEY HAD SOME CHALLENGES FROM UPGRADING FOUR DIFFERENT VERSIONS, UH, TO MAKE IT, UH, USABLE FOR CODE ENFORCEMENT, UH, FOR THIS PURPOSES.

UH, HOWEVER, HE BELIEVES THAT THOSE CHALLENGES ARE RESOLVED AND, BUT THEY WILL HAVE TO MEET WITH COURT, UH, ONCE AGAIN, TO DO TESTING BEFORE THEY CAN IMPLEMENT THAT.

BUT STEVE BELIEVES IF THOSE TEXTS TESTINGS GOES WELL, THEY SHOULD BE ABLE TO IMPLEMENT THAT FISCALLY AT 2022.

SO I DO WANT TO LET YOU KNOW THAT.

SO, BECAUSE YOU'RE GOING TO HEAR TED TED IS GOING TO COVER SOME OF THOSE STUFF, BUT I DO WANT TO LET YOU KNOW, THE, THE SCOPE OF OUR AUDIT, MAINLY FOR THE ANNUAL LICENSE RENEWAL PORTION OF IT.

IT COVERED OCTOBER 18 THROUGH MARCH 21ST ON THE RE-INSPECTION OF ACTIVITIES.

UH, WE BASICALLY COVERED JANUARY 19 THROUGH DECEMBER 19, AND THE REASON WAS, UH, IN 2020, WE TERMINATED THE, UM, THE RE-INSPECTION PROGRAM, AT LEAST ON THE INTERIOR.

AND THAT'S WHY WE DIDN'T DO AN ANALYSIS ON THAT, BUT I'M GOING TO TURN IT OVER TO TED.

HE DID A LOT OF ANALYSIS WITH THIS AUDIT.

AND SO WE WENT BACK AND LOOKED AT A LOT OF OUR RECOMMENDATIONS, AND HE'S GOING TO COVER THOSE AND GIVE YOU A STATUS UPDATE.

SO I WON'T GO INTO ALL THE DETAILS OF THE ORIGINAL ISSUE, AND I'LL JUST SUMMARIZE THAT.

SO THERE WERE THREE ISSUES RELATED TO MULTIFAMILY FROM THE PRIOR AUDIT.

[00:50:01]

AND THE FIRST ISSUE WAS RELATED TO RE-INSPECTION TIMELINESS AND DOCUMENTATION OF RESULTS AND CHARGING RE-INSPECTION FEES, AND IS WHAT I'LL DO.

I'LL I'LL, UH, MENTIONED OUR AUDIT RECOMMENDATION AND WHAT THE MANAGEMENT RESPONSE WAS GOING TO BE FROM THE INITIAL AUDIT.

AND THEN I'LL TELL YOU WHAT FOUND, AND THEN OUR CONCLUSION ON THAT FROM, UH, FROM THAT STANDPOINT, AND SOME OF THESE ITEMS ARE ALL INTERRELATED.

YOU'LL SEE THE THEME THAT CRM WAS NOT UPDATED, SO THEY COULDN'T.

SO THAT'S, THAT'S PRIMARILY THE MAIN REASON FOR ALL THE PARTIALLY IMPLEMENTED, UH, STATUSES IS THAT CRM WASN'T UPDATED.

SO ON AT FIRST FINDING, UH, THE AUDIT RECOMMENDATION WAS TO CLEARLY DOCUMENT AND INSPECT, UH, VIOLATION, EFFECTIVE DATES, TO BE ABLE TO VERIFY ALL OUR INSPECTIONS IN A TIMELY MANNER.

UH, SO IN THIS PARTICULAR RESPONSE FROM CODE, THEY SAID THEY HAD REQUESTED FUNDING FROM, UH, UH, FOR CM UPDATES AND THEN NAIL.

AND IF THAT WOULDN'T BE ABLE TO BE DONE ON A TIMELY BASIS, THEY WOULD, UH, REEVALUATE AND DO A DIFFERENT TRACKING MECHANISM.

AND SO ON OUR FOLLOW-UP, THEN WE NOTED FROM OUR DISCUSSION WITH, UH, UH, CODE AND WITH IT THAT YES, THERE HAVE BEEN NO CHANGES TO CRM AND THAT THEY'RE IN THE PROCESS OF WORKING ON THEM.

AND LIKE JEN SAID, STEVEN INDICATED THAT SHOULD BE A FUNCTIONAL IN FISCAL YEAR 2020, I MEAN, 20 YEAH.

FISCAL YEAR 22.

AND SO IN THE ABSENCE OF NO, UM, OF THE LIMITED, UH, FUNCTIONALITY OF CRM, UH, THAT CODE CREATE AN EXCEL MODEL TO TRACK THEIR ACTIVITIES.

SO NOW WHAT WE HAVE, WE HAVE OUR, WE HAVE OUR SYSTEM, BUT NOW WE HAVE A LOT OF THAT INFORMATION DOCUMENTED ON AN EXCEL SPREADSHEET.

SO THAT MEANS THAT YOU HAVE AN ADDITIONAL POTENTIAL ERROR.

SO WHAT THEY WERE KEEPING TRACK OF, THEY WERE STILL DOING WORK IN CRM, BUT THEY ATTACHED ALL THEIR DOCUMENTS IN CRM NOW, WHICH THEY DIDN'T BEFOREHAND.

IT WAS KIND OF ALL OVER THE PLACE.

I SHOULDN'T SAY ALL OVER THE PLACE.

IT WAS A VARIOUS LOCATIONS AND FORMATS.

SO THEY PUT ALL THE DOCUMENTATION NOW IN CRM, BUT MOSTLY THE DATES AND THE INSPECTION ACTIVITIES WERE MAINTAINED IN THE EXCEL SPREADSHEET.

SO I, AND THEY DID A VERSION FOR 2019 AND THEN THEY CHANGED THE VERSION FOR 2020.

AND LET ME JUST SAY UP FRONT AS WELL, WE STARTED ON 2020, BUT WE DID LIMITED WORK FOR THE 2020 ACTIVITY.

AND AS YOU PROBABLY ALREADY KNOW, BECAUSE OF COVID, THEY SUSPENDED A LOT OF THEIR ACTIVITIES.

SO CONSEQUENTLY, THE WORK THAT WAS IN THE XL MODEL OR IN CRM MAY REMAIN NOT HAVE BEEN UP TO FULL STANDARDS.

AND SO WE KNOW THERE WERE LIMITATIONS ON MEETING DATES AND, UH, W AND WHATEVER.

SO WE, WE JUST SUSPENDED ALL THE TESTING ON THE 2020 ACTIVITY, BUT FOR THE 2019 ACTIVITY, I WENT THROUGH THAT TO VALIDATE ANY DATES AND ACTIVITY LISTING THAT THEY HAD IN THE EXCEL SPREADSHEET AGREED TO WHAT WAS IN CRM AND THE APPROPRIATE DOCUMENTATION WAS IN CRM.

AND SO AS, AND IS WHAT I'M SAYING, THAT THE, WE, WE THOUGHT THIS TEMPORARY SOLUTION WAS ADEQUATE, BUT AGAIN, IT'S TEMPORARY.

AND FOR ANY REPORTING OUT OF THAT, UH, XL MODEL, SINCE IT IS MANUAL PROCESS, YOU STILL HAVE THE PROBABILITY OF ERROR.

AND THERE WERE A FEW OF THEM THAT WE FIND THAT THE DATES WOULD BE OFF, BUT NOTHING, NOTHING MAJOR ON THAT.

AND WE ALSO, AND FOR THE RE-INSPECTION TIMELINESS AND CHARGING RE-INSPECTION FEES, THAT WE ALSO LOOKED AT THE 2019 ACTIVITY, UH, UH, TO MAKE SURE THAT THE OWNER, THAT THE PROPERTY OWNERS FOR INSPECTIONS ADDRESSED AFTER THE THIRD INSPECTION.

SO THEY ONLY, WE ONLY, AS CURRENT CITY ORDINANCE SAYS THAT WE ONLY CHARGE AFTER THE THIRD INSPECTION, IF THEY HAVEN'T DONE IT.

AND I'M THINKING IT'S A HUNDRED DOLLARS, IF I'M CORRECT, IS THAT CORRECT, RICK? AND

[00:55:01]

SO OUT OF THOSE ACTIVITIES FOR THE THIRD INSPECTION, FOURTH INSPECTION AND FIFTH INSPECTION, WE TOOK A SAMPLE ON THERE.

AND FOR, AND FOR THE, UH, UH, SEVEN RE INSPECTIONS, WE DID INVOICE THAT RE-INSPECTION FEE AND IT WAS PAID TO, OR FOR THE SAME PROPERTY, AND THOSE WERE INVOICED, BUT THEY WERE NEVER PAID.

AND AS IT TURNS OUT, THERE WAS A CHANGE OF OWNERSHIP AT SOME TIME DURING THAT TIME PERIOD AND CODE DIDN'T GO AFTER THE PEOPLE WHO HAD SOLD THE PROPERTY.

AND IT WAS ONE RE-INSPECTION THAT WAS NOT INVOICED.

AND AGAIN, SINCE THIS PROCESS IS MANUAL, THE INSPECTOR HAS TO NOTIFY THE CODE BUSINESS OFFICE TO CREATE AN INVOICE.

AND THAT THAT JUST GOT DROPPED AND DIDN'T HAPPEN.

AND SO, BECAUSE OF THE IMPLEMENTATION OF CRM, WE'RE SAYING THAT THIS WAS PARTIALLY IMPLEMENTED.

THE SECOND ITEM WAS TO, UH, UH, IMPLEMENT WRITTEN STAMP, I MEAN, WRITTEN, UH, WRITTEN POLICIES AND PROCEDURES.

AND SO CODE SAID THEY WERE GOING TO DO THAT.

AND, AND THEY ALSO HAD UNRELATED TO TRAINING.

SO I VALIDATED THEY WERE STILL PERFORMING THE ONE-ON-ONE, THERE'S NO FORMAL, IT'S NO DIFFERENT THAN IF YOU AND I, THAT JED CALLS ME IN EVERY DAY AND COUNSELS ME SO THAT, SO IT'S THAT TYPE OF SCENARIO FROM THE TRAINING IT'S ON THE JOB TRAINING.

THERE'S NOT ANY OFFICIAL, YOU KNOW, OFFICIAL ONCE A WEEK TRAINING OR ONCE A QUARTER TRAINING.

AND THEN THEY DID DEVELOP PROCEDURES AND I REVIEWED THE PROCEDURES, PROVIDED SOME SUGGESTIONS FOR THEM TO ENHANCE THE PROCEDURES AND THEY ADDRESSED ALL OF THE CHANGES.

SO I'M SAYING THAT THAT WAS FULLY IMPLEMENTED.

UH, SO ANOTHER ITEM WAS FOR THEM TO RE-EVALUATE THE CODE OF ORDINANCES, DETERMINE WHETHER INSPECTION FEES ARE ADEQUATE.

AND, UH, SO THEY DECIDED THAT THEY WOULD GO AHEAD AND RESEARCH THAT AND CODE PROVIDED ME WITH THE RESEARCH THEY CONDUCTED.

IT WAS A SPREADSHEET OF, UH, UH, I WAS APPROXIMATELY WHAT, 15 OR SO CITIES THAT THEY DID.

AND THEY LOOKED AT VARIOUS ASPECTS OF IT.

AND SO THEY DID DO THAT.

AND THEN THEY MADE THE DECISION BECAUSE ALL THE SANDY'S DO EVERYTHING DIFFERENT.

SO THERE WAS NO, WE WEREN'T BETTER OR WORSE, OR WHEREVER FROM EVERYBODY ELSE COMES, THERE'S NO STANDARDS, SO TO SPEAK.

SO THEY DECIDED THAT THEY WERE NOT GOING TO DO ANYTHING AT THAT POINT IN TIME.

SO WE CONSIDER THAT FULLY IMPLEMENTED.

OKAY.

SO THERE WAS AN ISSUE RELATED TO THE GROUPING.

UM, MULTIPLE VIOLATIONS INSTEAD OF ARE, ARE TO ACCOUNT FOR INDIVIDUAL VERSUS THE GROUPING VIOLATION.

AND SO CODE SAID THEY WOULD GO AHEAD AND, UH, AND, UH, TRY TO IMPLEMENT THE CRM CHANGES.

AND, UH, SO THAT IS STILL IN, THAT IS STILL IN LIMBO SINCE WE HAVEN'T, UH, GOTTEN ALL THE, UH, CRM UPGRADE YET.

SO THAT, THAT WILL BE DISCUSSED DURING THE UPGRADE PROCESS.

AND SO WE CONSIDER THAT PARTIALLY IMPLEMENTED, UH, CONSIDERED STREAMLINE YOU CRM TO HAVE USER CAPABILITIES AND REPORTING FUNCTION SIMILAR TO THE NEIGHBORHOODS AND COMMERCIAL GROUP FUNCTIONALITY.

SO THIS IS THE SAME THING AS RELATED TO CRM CHANGES AGAIN.

SO WE CONSIDER THAT PARTIALLY IMPLEMENTED.

THE SECOND FINDING IS RELATED TO THE ACCURACY OF THE DOCUMENTATION RELATED TO MULTIFAMILY REPORTING, WHETHER REQUIRED INSPECTIONS WERE MET.

THERE WERE FIVE RECOMMENDATIONS ON THIS FIRST ONE IS STREAMLINED CRM.

AND AGAIN, THAT'S, WE CONSIDER THAT PARTIAL IMPLEMENTED, PARTIALLY IMPLEMENTED AS A, UH, IT'S RELATED TO CRM, UH, DEVELOP AN ALTERNATIVE MECHANISM TO MAINTAIN MONITOR AND EVALUATE INSPECTION UNTIL CRM IS STREAMLINE.

AND SO THEY END UP, SO THIS IS THE, UH, THE MODEL THAT THEY, UH, PRESENTED, I MEAN, THAT THEY DEVELOP.

SO WE'RE SAYING THAT ONE'S FULLY RECOMMEND, I MEAN, FULLY IMPLEMENTED THIRD ITEMS IDENTIFIED THE REQUIRED NUMBER OF INTERIOR INSPECTION WAS NOT COMPLETED AND RESOLVED.

AND SO THEY, UH, CODE SAID THAT THEY WILL, UH, REVIEW THE SYSTEM, SET UP AND PROCEDURES, UH, TO RESOLVE ANY AND ANY PROACTIVE INSPECTION COUNTS AND SCHEDULING.

SO IT WAS WHAT WE DID ON THIS ONE HERE, WE LOOKED AT ALL THE DATES AND TWO FOR THE TIMELINESS OF INSPECTIONS.

[01:00:02]

SO THERE IS NO, THERE IS NO TIMING IN THE CODE OF ORDINANCES, BUT IS IT JUST FROM THE DEPARTMENT STANDARDS? IS THAT RIGHT? REQ THAT FOR YOUR TIMING, UH, FOR, TO CREATE THE FIRST INSPECTION AND SECOND INSPECTION AND CRITICAL.

AND SO THERE WAS JUST TIMING ON THAT.

SO I TOOK ALL THE DATES AND DID AN ANALYSIS OF ALL THE 19 ACTIVITY, AND THERE WAS A SIGNIFICANT IMPROVEMENT, WHICH APPROXIMATELY 90% OF THE LIFE SAFETY AND A CRITICAL FIRST RE-INSPECTION WORK COMPLETED WITHIN THE CODE CRITERIA AS COMPARED TO ONLY 25% ON THAT INITIAL AUDIT.

SO, UM, AND AGAIN, I CHECKED THOSE DATES ON THE SPREADSHEET, TWO DATES IN THE SYSTEM AND THE DOCUMENTATION.

SO I FEEL FAIRLY COMFORTABLE AND IT APPEARS THAT THERE WAS A, LIKE I SAID, IT WAS SIGNIFICANT, UH, PROVEN IN THAT STANDPOINT.

AND SO WE PUT THAT AS FULLY IMPLEMENTED.

THE NEXT ITEM WAS TO EVALUATE WHETHER TICK SHEETS, MONTHLY SUMMARY, SHEETS, AND VIOLATIONS, THESE ARE NECESSARY OPERATION NEEDS.

AND AGAIN, THAT THEY WERE GOING TO LOOK AT THE ISSUE TO DETERMINE, UH, IF, IF, IF THERE CAN THEN BE ENHANCEMENTS TO THE PROCESSES.

AND SO THEY DID.

AND SO AS WHAT CODE DID AGAIN, IS THEY DID THE SINGLE MODEL AND THEN TO HAVE ONLY ONE PLACE TO TRACK ALL THEIR ACTIVITY OUTSIDE OF CRM.

AND THEN THEY, LIKE I SAID, THEY STARTED PUTTING DOCUMENTS IN CRM.

SO FOR ME, I WAS INVOLVED IN THE FIRST AUDIT, BUT TO ME, I THOUGHT IT WAS FAIRLY REASONABLE COMPARED TO WHAT IT SOUNDED LIKE WHEN YOU READ THE INITIAL REPORT, I THOUGHT IT WAS REASONABLE TO HAVE TWO LOCATIONS FOR EVERYTHING.

SO WE SAID, THAT'S FULLY IMPLEMENTED.

SURE.

ALL REPORTS ARE RECONCILED MONTHLY TO IDENTIFY AND DISCREPANCIES.

SO THEY HAD DONE AN, UH, CODE AND SAID THEY WERE GOING TO DRAFT A FORMAL, UH, POLICY TO IDENTIFY AND DO THAT, UH, TO RESOLVE ANY OF THE DISCREPANCIES.

THEY DID PROVIDE ME WITH A COPY OF THAT PROCEDURE DOCUMENT.

AND AGAIN, I REVIEWED THAT AND CONSIDERED, UH, EVERYTHING ADEQUATE.

SO WE DESIGNATED THAT WAS FULLY IMPLEMENTED.

THE THIRD ITEM IS THE FAMILY, THE MULTIFAMILY FEE ACCURACY AND APPLICATION COMPLETENESS.

AND THIS IS RELATED TO BEING THAT NOT ALL APPLICATIONS WILL COMPLETE BEFORE THE LICENSE WERE ISSUED.

OUR LICENSE WERE ISSUED TO A COMPLEX AND WHEN LATE FEES OR SURCHARGES FEES WERE DUE.

AND THEN WE ALSO, AND THAT NO INVOICE OR GENERATOR FOR THE FEES FIRST, NEVER SEVEN ITEMS ON THIS ONE AT FIRST ONE IS DEVALUATION ENFORCEMENT EFFORTS, UH, AVAILABLE TO THE COMPLEXES.

SO THEY, UH, PAY THEIR FEES BEFORE THEY TURN IN A CURRENT APPLICATION.

SO, AND, UH, SO COBRA IS GOING TO EVALUATE THE PROCESSES RELATED TO THAT RELATED TO THE PAYMENT OF THE FEES AND APPLICATION.

SO IS WHAT I DID.

I OBTAINED ALL THE ANNUAL LICENSE AND LATE PAYMENT FEES, DATA FROM CRM.

SO I CAN ANALYZE THAT.

IS THAT ON PAGE 17? ALEX, SCROLL, SCROLL UP A LITTLE BIT, PLEASE.

OH, WAIT A MINUTE.

NO, WHERE'S THE CHART ON THERE, ALEX, THERE'S A CHART PAID 17.

MAYBE THIS ONE, NO PAID 17.

I DON'T KNOW WHAT PAGE IT'S GOT THE COLOR GRAPH ON IT, ALEX.

OH YEAH.

THAT ONE.

NO, YOU'RE GOING THE OPPOSITE WAY.

YEAH.

PAGE 17.

YEAH.

KEEP GOING NOW.

AND AS SOON AS WHAT I DID, SO, SO IS WHAT CODE DOES THEY, THEY SEND OUT, THEY START THE PROCESS.

IT'S AN ANNUAL BASIS.

JANUARY, DECEMBER.

THEY START THE PROCESS IN OCTOBER, MAYBE, UH, UH, SEPTEMBER, AND THEN THEY GET EVERYTHING DONE.

SO PEOPLE ARE EITHER PAYING THEIR FEES BY DECEMBER, NOVEMBER, DECEMBER, OR BY JANUARY, AND IS WHAT YOU CAN SEE ON THERE THAT MOST OF THEM DO DO THAT.

AND THEN THEY'RE SCRAGGLY ON THERE AFTER THAT.

[01:05:01]

AND SO, AND SO MOST OF THE STRAGGLERS PAST JANUARY, THOSE ARE PRIMARILY RELATED TO A CHANGE IN OWNERSHIP, EXCUSE ME, AND FOR THE PROPERTY OWNERS THAT DID PAY LATE THEN FOR THE, I VALIDATED IN 2019.

AND IN THIS CASE, THE 2020 LICENSE ACTIVITY TO ENSURE THAT WE DID CHARGE A LATE FEE BECAUSE THEY PAID LATE, BUT THERE WEREN'T VERY MANY OF THOSE IN THIRD ITEM, ENSURE APPLICATIONS ARE COMPLETE AND ACCURATE.

UH, SO THE RE DRAFTED THE POLICY ON THAT FOR THE PERMITTING FEES.

AND, UH, AGAIN, I REVIEWED THEM SUGGEST MADE, UH, MADE, SUGGESTED CHANGES AND THEY CHANGE THOSE.

WE CONSIDER THAT ONE, UH, FULLY IMPLEMENTED.

AND I, UH, DID I MISS NUMBER TWO? YEAH.

THAT'S OKAY.

YEAH.

SO THE FOURTH ONE IS CONSIDER ADDING ADDITIONAL FIELD FOR A SECONDARY EMERGENCY CONTACT.

SO, UH, COACH SAID THAT, LOOK AT THIS, I REVIEWED SOME OF THE ANNUAL APPLICATIONS AND IT NOW HAS A SECONDARY, UH, EMERGENCY CONTACT.

THE NEXT THING IS RELATED TO THE LICENSE.

UH, THE DATE APPROVED WAS ON THE LICENSE EXCEL.

AND SO THEY HAD SUBMITTED A TICKET TO GET THIS REMOVED.

I LOOKED AT LICENSE, I REVIEWED SOME OF THE LICENSE ISSUE DURING THE TESTING PERIOD, AND THAT DATE IS NO LONGER ON THE, UH, ON THE LICENSE.

SO BOTH THOSE ARE FULLY IMPLEMENTED.

AND THE THIRD ONE IS TO WORK WITH IT, TO MAKE SURE THAT THEY ANY FEE COLLECTIONS, UH, UNDER $50, UH, THAT COULD BE DOCUMENTED IN CRM.

AND THEY HAD MADE, THEY MADE THAT REQUEST.

AND THAT WAS, THAT WAS CHANGED.

AND I VALIDATED THAT THEY CAN, THERE ARE DOLLAR AMOUNTS NOW FOR LESS THAN $50 IN CRM, SO THAT ONE'S FULLY IMPLEMENTED.

UH, AND THE THIRD AND THE LAST TIME WAS CONSIDERED AUTOMATING THE GENERATION OF INVOICES, UH, CODE WELL, UH, A CONSULTANT WITH IT DEVELOPED AUTOMATED INVOICE, AND THAT'S NOT, UH, UH, UH, IT'S STILL MANUAL SENSOR.

HAVEN'T BEEN ANY CRM CHANGES, BUT I DID SKIP NUMBER TWO, AND I WANT TO COMMENT ON THAT ONE.

SO, UH, WE'D MADE THE RECOMMENDATION TRY TO AUTOMATE THE, UH, APPLICATION FEE PROCESS.

AND SO CODE HAD INDICATED THEY WOULD, UH, UH, WORK WITH, UH, A DIGITAL GOVERNMENTAL WEB PORTAL TO SEE IF THAT WOULD BE POSSIBLE.

AND I CHECKED WITH IT THAT WEBSITE IS STILL NOT AVAILABLE FOR US TO TRY TO UTILIZE THAT FUNCTIONALITY.

AND THE CITY WEBSITE IS NOT AN OPTION TO COLLECT PAYMENTS AT THIS TIME FOR, UH, FOR CODE THAT'S