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GOOD EVENING.[Audit Committee Meeting on September 5, 2023.]
AND, UH, I AM THE CHAIR.IT WOULD APPEAR OF THE AUDIT COMMITTEE, AND I'M VERY GLAD TO BE HERE.
THIS IS MY FIRST MEETING, UH, AS THE CHAIR.
I HAVE, UH, BEEN PART OF THIS COMMITTEE, UH, ON DIFFERENT OCCASIONS IN THE PAST, AND SO IT'S NOT COMPLETELY FOREIGN TO ME, BUT I WANT YOU TO KNOW THAT, UH, THERE ARE SEVERAL OF US TONIGHT, THIS EVENING THAT ARE FIRST, IF YOU ARE FIRST, JUST KIND OF RAISE YOUR HAND.
IF THIS YOUR FIRST MEETING, RAISE YOUR HAND IF IT'S YOUR FIRST MEETING.
I WANNA WELCOME ALL YOU FIRST TIMERS.
OKAY? AND DO KNOW THAT WE'RE IN VERY CAPABLE AND COMPETENT HANDS.
UH, WE HAVE A STAFF HERE THAT IS READY, WILLING, AND ABLE TO ASSIST US TO GET THROUGH THIS, AND THAT'S WHAT IT'S ALL ABOUT.
SO, WITH THAT, WE HAVE A VERY CHALLENGING, A VERY CHALLENGING, UH, AGENDA AHEAD OF US THIS EVENING, AND A VERY CHALLENGING DAY.
SO, WITHOUT FURTHER ADO, LET'S GET INTO OUR MEETING.
UH, FIRST THING ON THE, UH, MEETING, UH, ON OUR IS TO APPROVE THE MINUTES OF THE APRIL 27TH, UH, MEETING I HAVE WITH ME.
THIS, UH, EVENING, OUR COMMITTEE, UH, MEMBERS, MR. CHRIS OTT FROM DISTRICT EIGHT, AND, UH, BJ WILLIAMS FROM DISTRICT FOUR.
UH, GENTLEMEN, IF YOU'VE HAD OPPORTUNITY TO READ THE MINUTES, I'LL TAKE A MOTION.
MR. CHAIRMAN, I'D LIKE TO MAKE A MOTION THAT WE ACCEPT THE MINUTES AS THEY'RE PRESENTED, MR. CHAIRMAN.
THERE'S BEEN MOTION, AND SECOND TO ACCEPT THE MINUTES AS THEY'RE PRESENTED.
ALL OPPOSED? AND THE MINUTES ARE ACCEPTED.
DO WE HAVE ANYONE FROM THE PUBLIC HERE TODAY WHO, UH, WOULD LIKE TO MAKE ANY COMMENTS? SEEING NONE.
LET'S MOVE NOW INTO OUR AGENDA ITEMS FOR INDIVIDUAL CONSIDERATION.
WE'LL START THIS MEETING WITH OUR WEAVER PRESENTATION, AND WE'RE GOING TO RETURN OUR MEETING AT THIS POINT OVER TO, UH, JED.
UM, GOOD AFTERNOON COUNSEL COMMITTEE MEMBERS.
WE HAVE SARAH ADAM DEMPSEY, WHO'S THE PARTNER WITH WEAVER.
UM, IN FACT, ACTUALLY THIS IS THEIR 10TH YEAR, UM, BEEN WITH US.
AND SO I'M JUST GONNA TURN THIS OVER TO SARAH, UH, WHO'S GONNA GO OVER THE F I 23 AUDIT PLAN.
THANK YOU FOR HAVING ME TODAY.
I'M THE AUDIT PARTNER ON THE ENGAGEMENT.
AND REALLY WHAT I'M HERE TODAY TO TALK TO YOU ABOUT IS THE 9 30 20 23 AUDIT.
SO YOUR YEAR END IS COMING UP, AND THIS IS CONSIDERED THE PLANNING MEETING.
SO THIS IS UNLIKE THE LAST TIME I WAS HERE, WHERE IT WAS THE RESULTS.
THIS IS WHERE WE TALK THROUGH WHAT THE AUDIT COULD LOOK LIKE, WILL LOOK LIKE, AND THEN THE REQUIRED COMMUNICATIONS THAT WE HAVE WITH THE AUDIT COMMITTEE, IF THERE IS ANYTHING THAT YOU WOULD LIKE TO DISCUSS THE AUDIT APPROACH, ANYTHING LIKE THAT.
IT'S REALLY TO OPEN THOSE LINES OF COMMUNICATION BETWEEN YOU AND US BECAUSE WE REPORT TO YOU.
WE WORK WITH THE CITY TO GET THE AUDIT COMPLETED.
SO WE HAVE TO TEAM UP REALLY WELL WITH THE INTERNAL AUDIT DEPARTMENT, WITH THE FINANCE STAFF AND THE OTHER DEPARTMENTS.
BUT THAT'S MORE, YOU KNOW, TO GET THE WORK COMPLETED.
WE, WE REPORT TO THE AUDIT COMMITTEE.
SO THAT'S WHY I'M HERE TODAY IS TO LIKE OPEN UP THOSE COMMUNICATION LINES.
SO I'LL GO THROUGH AN INTRODUCTION OF THE AUDIT PROCESS, UM, GO THROUGH THE INTERIM COMMUNICATIONS THAT WE'RE REQUIRED TO HAVE, TALK ABOUT NEW ACCOUNTING PRONOUNCEMENTS, AND THEN, UM, OPEN IT UP FOR ANY CONCERNS OR QUESTIONS THAT YOU HAVE OR HAVE MY CONTACT INFORMATION THERE SO THAT YOU CAN REACH OUT TO ME.
UM, THIS IS THE AUDIT LEADERSHIP TEAM.
I'M THE AUDIT ENGAGEMENT PARTNER AND I HAVE BEEN, CLAIRE HAS BEEN THE MANAGER.
WE STILL HAVE THE IT ADVISORY PARTNER THAT WILL COME OUT AND LOOK AT THE IT SYSTEMS, THE IT CONTROLS.
UM, WE STILL HAVE THE DATA ANALYTICS TEAM.
SO BECAUSE THERE IS SO MUCH INFORMATION THAT GOES THROUGH THE GENERAL LEDGER, UM, BASICALLY THE DEBITS AND CREDITS OF THE ACCOUNTING SYSTEM.
WE USE DATA ANALYTICS TO FILTER OUT UNUSUAL ITEMS. SO WE STILL HAVE THAT TEAM.
UM, OUR SENIOR AND THE TEAM MEMBERS HAVE NOT CHANGED.
JUST, UM, NO TURNOVER, THANK GOD.
SO
UH, WE DID INTERIM WORK IN AUGUST, SO THAT'S REALLY WHERE WE LOOK AT INTERNAL CONTROLS.
SO, UM, WE'RE LOOKING AT IT DURING THE YEAR THAT WE'RE TESTING IS, SO AUGUST OF 2023, WE CAME IN AND WE LOOKED AT THE CASH DISBURSEMENT PROCESS, THE PAYROLL PROCESS, THE TAX RECEIPT PROCESS, UTILITY BILLING.
WE GO THROUGH THOSE MAJOR TRANSACTION CYCLES.
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ON CONTROLS, BUT WE DO HAVE TO, UM, WALK THROUGH THOSE KEY CONTROL PROCESSES TO MAKE SURE THAT THEY'RE OPERATING AS DESIGNED AND THAT IN THOSE AREAS, THE NUMBERS WOULD BASICALLY FLOW THROUGH TO THE FINANCIAL STATEMENTS AND BE MATERIALLY CORRECT, BECAUSE THAT'S WHAT, THAT'S WHAT THIS EXTERNAL AUDIT IS, IS MAKING SURE THAT YOUR FINANCIAL STATEMENTS AT YEAR END ARE MATERIALLY CORRECT.UM, AND THEN JUST GOING BACK, WE'LL COME BACK AND DO THE AUDIT AFTER YEAR END.
WE'LL COME BACK AROUND JANUARY AND THAT'S WHEN WE'RE TESTING THOSE 9 30, 20, 23 BALANCES.
AND THEN WE'LL DO THE PRESENTATION IN MARCH FOR THE RESULTS.
SO OUR AUDIT, OUR AUDIT PROCESS IS ALWAYS RISK-BASED.
IT'S NOT THE SAME THING EVERY YEAR, ALTHOUGH THERE ARE SOME THINGS THAT WON'T CHANGE.
WE WILL ALWAYS TEST CASH, THE BANK RECONCILIATIONS, THINGS LIKE THAT.
BUT WE ALSO LOOK AT A RISK-BASED APPROACH TO SEE WHAT NEW TRANSACTIONS HAPPEN DURING THE COURSE OF THE YEAR.
SO WE'LL READ THE COUNCIL MINUTES AND WE'LL LOOK THROUGH THE GL TO SEE IF THERE WERE ANY LARGE TRANSACTIONS THAT OCCURRED.
SO, UM, A RISK-BASED APPROACH.
WE'LL ALSO LOOK FOR NEW AND UNUSUAL ITEMS AS WELL, UM, ALONG WITH TESTING SOME OF THOSE, UM, SIGNIFICANT RISKS.
SO WE, UH, LOOK AT OVERSTATEMENT OF REVENUE AS A RISK TO ALL OF OUR GOVERNMENTS, UH, MEANING THAT MANAGEMENT, UM, MIGHT WANT TO, UH, MAKE REVENUES APPEAR BETTER THAN THEY ARE.
AND SO THAT'S CALLED THE RISK OF OVERSTATEMENT OF REVENUE.
WE'LL LOOK AT UTILITY BILLING, UM, THE ELECTRIC UTILITY, UM, THOSE AREAS JUST TO, TO CHECK ON THE REVENUE RECOGNITION PROCESS.
UH, LONG-TERM DEBT CAPITAL ASSETS, UM, INVESTMENTS.
SO SOME AREAS THAT, THAT WE LOOK AT THAT WE CONSIDER TO BE SUSCEPTIBLE TO RISK.
ALWAYS MANAGEMENT OVERRIDE OF CONTROLS, WHICH IS BASICALLY BEING ABLE TO POST A JOURNAL ENTRY THAT WASN'T APPROVED.
SO WHERE MANAGEMENT COULD GO IN OVERRIDE CONTROLS AND POST A JOURNAL ENTRY THAT DOESN'T HAVE SUPPORT OR COULD MATERIALLY MISSTATE THE FINANCIAL STATEMENTS.
SO THAT'S JUST A RISK THAT WE SEE ON ALL OF OUR GOVERNMENTS.
IT'S NOT ANYTHING WHERE SOMETHING HAS HAPPENED AT GARLAND.
THOSE ARE JUST OUR SIGNIFICANT RISKS WHEN WE'RE IN THE LOCAL GOVERNMENT SPACE.
UM, FOR INTERIM FIELD WORK, WHAT WE DID IN AUGUST, WE DID COMPLIANCE TESTING, WE DID CAPITAL PROJECTS TESTING, AND I WALKED THROUGH THOSE SIGNIFICANT TRANSACTION CYCLES THAT WE LOOKED AT.
THEY'RE JUST HERE ON THE SCREEN SO THAT YOU CAN SEE THEM AS WELL.
UM, IN CASE I MISSED ANY, UM, THE ONE THAT MAYBE I DIDN'T SAY WAS INVENTORY AND GRANT REVENUE.
SO BECAUSE THE CITY EXPENDS MORE THAN $750,000 OF FEDERAL FUNDING, WE WALK THROUGH THE GRANT REVENUE RECOGNITION PROCESS AND LOOK AT THOSE EXPENDITURES AS WELL.
WE ALSO TEST THE CENSUS DATA BECAUSE YOU HAVE A LARGE PENSION PLAN, YOU HAVE A LARGE OPEP PLAN.
AND SO THIS, THE INFORMATION THAT IS COMING FROM THE CITY'S PAYROLL SOFTWARE, UM, IS WHAT MAKES ITS WAY TO THOSE ACTUARIES.
SO WE DO LOOK AT THE CENSUS DATA AS WELL.
UH, WE TEST THE ACCOUNTING CONTROLS OVER THE CASH PAYROLL, UH, THE CONTRACT BIDDING PROCESS.
UH, LIKE I MENTIONED, WE DO THAT SINGLE AUDIT, WHICH IS BECAUSE THE CITY EXPENDS MORE THAN $750,000, SO THAT'S GONNA BE YOUR HOME PROGRAM THIS YEAR.
YOUR EMERGENCY RENTAL ASSISTANCE PROGRAM, AND THEN YOUR CLEAN, CLEAN WATER GRANT.
SO, UM, THOSE ARE THE THREE MAJOR PROGRAMS THAT WE HAVE THIS YEAR.
INTERNAL AUDIT ASSISTS US WITH THAT TESTING.
UH, WE ALSO HAVE THEM ASSIST WITH JUST GENERAL CASH DISBURSEMENTS, PAYROLL, AND THEN THE UTILITY BILLING TESTING.
SO THEY'RE REALLY HELPING US WITH A LOT OF THE CONTROL TESTING WORK.
UM, WE SELECT A LARGE NUMBER OF SAMPLES, AND SO IT JUST HELPS, UH, SPEED UP THE AUDIT PROCESS REALLY IS HAVING THEM, UM, LOOK AT THOSE SAMPLES, TEST THEM, AND THEN WE REPERFORM THOSE PROCEDURES.
SO SOME OF THE REQUIRED COMMUNICATIONS I'VE ALREADY MENTIONED, BUT WE DO THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.
SO THOSE ARE THE STANDARDS THAT WE'RE USING WHEN WE'RE DOING OUR AUDIT AND PLANNING.
AND THEN THE UNIFORM GUIDANCE IS THE SINGLE AUDIT.
UM, AND THEN THAT'S WHAT I'VE ALREADY SAID WITH THE GAGS AND UNIFORM GUIDANCE.
UM, FOR THE IT CONTROL UPDATE, THE SYSTEMS THAT WE'RE LOOKING AT ARE LISTED HERE.
WE CAN'T LOOK AT EVERYTHING, BUT WE DO PICK THOSE MAJOR PROCESSES, UH, AND REALLY HAVE OUR IT ADVISORY PARTNERS LOOKING AT THOSE.
WE HAVE A SEPARATE ENGAGEMENT TEAM.
I STAY ON THE TECHNICAL ACCOUNTING SIDE, AND THEN WE HAVE THE, THE IT PEOPLE THAT REALLY SPECIALIZE IN THAT, AND THAT IS NOT ME, UH, THE CONTROL AREAS TO BE TESTED, UM, THAT THEY LOOK AT PROGRAM CHANGES, UM, MIGRATION TO PRODUCTION, COMPUTER OPERATIONS, ACTUAL PHYSICAL ACCESS TO THE COMPUTERS AND TO THE DATA.
UM, AND THEN ACCESS TO PROGRAMS AND DATA SECURITY ADMINISTRATION.
AND THEN THIS YEAR, ONE OF THE BIG MAJOR PRONOUNCEMENTS THAT THE CITY IS HAVING TO IMPLEMENT IS G A SS B 96.
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LAST YEAR WAS LEASE IMPLEMENTATION.SO THAT WAS THE LEASES OF BUILDINGS, UM, AND THINGS LIKE THAT AND ACTUAL PHYSICAL LEASE.
AND THOSE CAME ONTO THE BALANCE SHEET LAST YEAR.
THIS YEAR IT'S IT SOFTWARE SUBSCRIPTION.
SO THAT'S WHAT THE BIG PRONOUNCEMENT IS THAT THE CITY'S WORKING TO IMPLEMENT FOR THIS, UM, THIS YEAR'S AUDIT.
IT'S A HEAVY LIFT FOR SURE TO IDENTIFY EVERY DEPARTMENT THAT'S USING SOME SORT OF IT SOFTWARE SUBSCRIPTION.
AND IF IT'S MATERIAL TO GET IT ON THE BALANCE SHEET.
UM, THIS CAN BE MICROSOFT OFFICE.
UM, ALL SORTS OF PACKAGES FALL UNDER THAT.
AND THEN HERE'S SOME THAT ARE COMING OUT FOR LATER.
2024, YOU HAVE 99, AND THEN 2025 IS STATEMENT 1 0 1 WITH COMPENSATED ABSENCES.
I THINK THE LARGEST, UH, YEAR OF IMPLEMENTATION WILL BE THIS YEAR'S G A SS B 96 AND LAST YEAR'S LEASES.
BUT 2024 AND 2025 LOOK A LOT BETTER.
AND THEN THESE ARE JUST REALLY THE QUESTIONS THAT WE WANT TO MAKE SURE THAT YOU'RE AWARE OF THAT YOU CAN TALK TO US ABOUT AT ANY TIME.
UM, ANYTHING THAT YOU THINK IS MATTER RELEVANT TO THE AUDIT, ANY RISK THAT YOU WOULD LIKE US TO FOCUS ON, ANY CONCERNS THAT YOU'VE HEARD THAT COULD POTENTIALLY HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS, WE WANNA HEAR, YOU KNOW, IF YOU HAVE THOSE CONCERNS OR QUESTIONS FOR US.
AND WE'LL BE REACHING OUT TO TALK TO YOU ONE-ON-ONE ALSO SO THAT YOU CAN ASK US ANY QUESTIONS OR TELL US ABOUT ANY CONCERNS THAT YOU HAVE.
AND THAT'S WHAT I'VE PREPARED FOR YOU TODAY.
I'M HERE TO ANSWER ANY QUESTIONS THAT YOU HAVE, UM, OR TALK ABOUT THE AUDIT IN GENERAL.
COMMITTEE, WE HAVE HEARD, UH, THE PRESENTATION WANTED.
AND ALSO, LET ME SAY THAT THE, THE MICS ARE PRETTY MUCH OPEN AT THIS POINT.
COUNCILMAN WILLIAMS. ALRIGHT, THANK YOU.
UH, TARA, AS USUAL, THANK YOU FOR THAT, THAT INTRO.
BRIEFLY, VERY COLORFUL SLIDES.
OH, WERE THEY
DID YOU PICK THE, USUALLY ACCOUNTING, UH, SLIDES IN PRESENTATIONS ARE NOT EXCITING, SO I'M GLAD YOU LIKE SOMETHING ABOUT IT.
IF YOU PICKED THE COLORS TEAM, IF I CAN WALK AWAY WITH ONE GOOD POSITIVE, I WOULD TAKE IT.
IT IS, UH, SOME OF THE FINANCIAL STUDENTS HAVE LOOKED AT, IF NOT NEARLY AS CALLED, RIGHT,
JUST A, JUST A COUPLE OF THOUGHTS.
UM, AND, AND I, I, I GUESS I'M CALLING THIS BRIDGE IN THE GAPS, AND CAN YOU TALK ABOUT INTEGRATION OF THIS INTO WHAT YOU PRESENTED US? UM, UH, UH, JUDD AND HIS TEAM HAVE DONE AWESOME JOBS YEAR AFTER YEAR AFTER YEAR.
AND WE HAVE, UH, FINDINGS, TEAM REPORTS HERE AND RECOMMENDATIONS, IMPLEMENTATION PLANS END MOVING FORWARD.
UH, IS THERE A WAY TO SORT OF BRIDGE THE GAP? EXAMPLE, SOME OF THE AUDIT IN THIS CURRENT HERE, UH, THAT HAVE ALREADY BEEN SHARED WITH US, UH, INCLUDING FINDINGS AND RECOMMENDATIONS, STAFF HAS GIVEN REPORTS ON WHAT, WHAT THEY HAVE, HAVE, HAVE DONE.
IS THERE ANY WAY TO, DO WE LOOK BACK AT SOME OF THOSE AUDITS THAT HAVE BEEN COMPLETED, THAT'S BEEN REPORTED AND EVERYTHING, GET UP, GET UPDATES ON THAT, WHAT I CALL PROCESS IMPROVEMENT.
IS THERE ANY WAY TO, TO CAPTURE, UH, SOME OF THE, FOR LACK OF BETTER WORD, PROGRESS? SURE.
SOME OF THE STRENGTHENING THAT HAS TAKEN PLACE AS A RESULT OF NOT SPENDING A LOT OF TIME AS A RESULT OF BETWEEN YOUR TEAM, JUDD AND, AND, AND OUR STAFF.
ANY WAY TO CAPTURE, OKAY, SO IT WAS DONE LIKE THIS YEAR OR LAST YEAR MM-HMM.
OF THIS IS, THIS IS TAKING A LOOK BACK AT THIS, THIS IS WHERE WE ARE NOW, THIS A BENEFIT.
AND THAT'S A GREAT CONVERSATION FOR US TO HAVE, IF THAT'S SOMETHING THAT YOU WOULD LIKE.
WHAT WE DO DURING THE COURSE OF THE AUDIT IS WE OBTAIN ALL OF THOSE AUDITS AND WHEN WE THINK THAT IT MIGHT HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS, WE DEFINITELY DIVE INTO IT TO SEE IF THE PROGRESS HAS BEEN MADE, IF THE RECOMMENDATIONS THAT INTERNAL AUDIT MADE ARE BEING INCLUDED INTO THE NEW PROCESS, KIND OF THE, UM, MAKING
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SURE THAT THE FINDING HAS BEEN ADDRESSED.WE SELECTIVELY LOOK AT IT AND SEE IF IT HAS, UM, THE POTENTIAL TO HAVE A MATERIAL MISSTATEMENT.
THAT'S SOMETHING THAT WE COULD DEFINITELY DO WHERE MAYBE WE DON'T THINK IT HAS A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS, BUT YOU WOULD JUST BE MORE COMFORTABLE IF WE CHECK TO SEE THE PROGRESS.
WE COULD DEFINITELY DO THAT, BUT JUST KNOW THAT WE DO LOOK AT THE ONES THAT WE THINK DO HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS AND FOLLOW UP ON THOSE TWO.
COUNCILMAN, IF I MAY ECHO TO THAT.
UM, SO BEFORE THEY PLANNED THE AUDIT FOR FISCAL YEAR, THEY DO ACTUALLY MEET WITH ME, UH, TO GO OVER THE AUDIT REPORTS THAT WE ISSUED FOR THE PAST YEAR, AT LEAST DURING THE FISCAL YEAR.
AND ALSO WE TALK ABOUT ANY POTENTIAL FRAUD, WASTE OR ABUSE, THAT KIND OF DEAL.
SO, UH, THE OBJECTIVE OF THE FINANCIAL STATEMENT AUDIT IS SLIGHTLY DIFFERENT THAN THE OPERATIONAL AUDIT, BUT, UH, AS SARAH INDICATED, UM, FROM A MATERIAL IMPACT PERSPECTIVE, THEY DO LOOK AT OUR REPORTS AND IF WE HAVE DONE ANY INVESTIGATIONS, THEY DO EVALUATE THEM BEFORE THEY FINALIZE THEIR AUDIT PLAN.
SO, SO COULD YOU PROVIDE THIS COMMITTEE WITH JU JUDGE SOME OF THOSE OBSERVATIONS AS A RESULT OF WHAT YOU JUST SAID? YEAH, IT, UH, WELL, I DON'T NECESS I DON'T KNOW WHO'S, WHO'S HERE, BUT WHAT SOMEBODY COULD BE THIS COMMITTEE, I THINK IT WOULD BE, IT WOULD BE HELPFUL.
LOOK AT WHAT THE REPORTS THAT WE LOOKED AT THIS YEAR, THOSE CONVERSATIONS THAT WE'VE HAD.
AND WE COULD PROVIDE AN UPDATE FOR YOU.
IS THAT WHAT YOU'RE LOOKING FOR? YES.
WE CAN BRING THAT TO THE NEXT AUDIT COMMITTEE.
THANK THAT'S WHAT THE COMMITTEE WANTS TO ALRIGHT.
WELL, MS. WEAVER, UH, MS. DEMPSEY, SARAH, I THINK THAT YOU'VE DONE A OUTSTANDING JOB OF, UH, THE PRE PRESENTING TO US, UH, WHAT WE'RE LOOKING FORWARD TO IN THIS COMING YEAR, UH, AS A KIND OF A NEWCOMER.
UM, I DON'T KNOW IF MR. UH, COUNCILMAN WILLIAMS, HE DOESN'T LIKE FOR ME TO STILL KIND OF USE THAT, BUT
HE'S VETTED YOU, I SAY QUITE WELL, AND KNOWING ALSO, UH, THE RELATIONSHIP THAT YOU'VE HAD WITH US IN THE PAST, UH, I THINK THAT WE ARE TRULY LOOKING FORWARD TO, UM, ANOTHER GREAT YEAR OF WORKING WITH YOU.
LET ME STOP AT THIS POINT AND ASK, ARE THERE ANY QUESTIONS, ANY COMMENTS FROM ANYONE ELSE AS IT RELATES TO THE SUBJECT OF FORCE? UH, COUNCIL NOT JUST HAD ONE, UH, ONE DEFINITION QUESTION.
WHAT IS A DRINKING WATER REVOLVING? LUNG
THAT'S ONE OF THE FEDERAL PROGRAMS THAT IS BEING EXPENDED THIS YEAR.
SO WHAT WE DO IS WE TEST, UM, BASICALLY FEDERAL PROGRAMS. SO BECAUSE THE CITY EXPENDS MORE THAN $750,000 OF FEDERAL FUNDING, WE HAVE TO GO THROUGH AND SEE WHICH OF THOSE FEDERALLY FUNDED GRANTS, UH, SHOULD BE SELECTED FOR THE AUDIT.
SO THAT'S BASICALLY A CAPITAL'S PROJECT TO IMPROVE THE DRINKING WATER.
SO WE'LL SEE A LOT OF CONSTRUCTION INVOICES AS WE LOOK INTO THAT PROGRAM, BUT IT'S BASICALLY A FEDERALLY FUNDED GRANT THAT THE CITY HAS.
AND I DON'T KNOW IF YOU WANNA TALK MORE THROUGH THAT.
WE USE THAT GRANT TO FUND OUR WATER METER REPLACEMENT PROGRAM.
SO THAT'S WHAT THAT, THOSE FUNDINGS ARE COMING IN FROM.
IT SOUNDS LIKE YOU HAVE ONE ACTION ITEM BEFORE US, AND THAT IS THAT YOU'RE GONNA GET INFORMATION BACK FOR COUNCILMAN WILLIAMS AS IT RELATES TO UPDATES IN THE PAST.
THANK YOU SO VERY MUCH FOR YOUR PRESENTATION.
WITH THAT, LET'S NOW MOVE TO OUR FUEL AND PROPANE MANAGEMENT AUDIT.
AGAIN, JU CHAIRMAN, UH, THANK YOU FOR THE OPPORTUNITY TO GO OVER SOME OF THESE AUDITS THAT WE RECENTLY COMPLETED.
UH, AARON PENNY ACTUALLY WAS THE LEAD ON THIS AUDIT.
I DO WANNA TAKE A MINUTE TO INTRODUCE THIS AUDIT WHILE THEY'RE SETTING IT UP.
THERE WERE TWO OBJECTIVES, UH, EVALUATE THE FUEL ORDER AND DELIVERY PROCESS TO VERIFY IF THE CITY HAS EFFECTIVE MONITORING IN PLACE.
THE SECOND PART WAS TO VERIFY THE ACCURACY OF THIRD PARTY BILLING.
UM, AS PART OF THIS AUDIT, WE LOOKED AT NOT ONLY FUEL, BUT ALSO THE PROPANE MANAGEMENT.
THE FUEL PART WAS BASICALLY A REVIEW OF THE FLEET, UH, PROCESSES.
UH, I DO WANNA REALLY, UM, SINCERELY APPRECIATE THE FLEET DEPARTMENT, ESPECIALLY GARTH.
THEY HAVE GONE THROUGH A LOT OF CHANGES IN THE PAST YEAR, AND, UM,
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SO YOU WILL SEE SOME OPPORTUNITIES FOR IMPROVEMENT.HOW, HOWEVER, HOW, UH, IMPACTFUL THEY WERE, HOW, HOW THEY WORKED WITH US, HOW COOPERATIVE THEY WERE DURING THE AUDIT IS COMMENDABLE.
UH, SO I DO WANNA MENTION THAT APPRECIATE GARTH AND AS WELL AS PHIL.
UM, UH, AS YOU KNOW, UH, THE CITY HANDLES A LOT, UH, HAS ABOUT 28 LOCATIONS WHERE WE, WHERE WE DEAL WITH FUEL.
AND SO DURING THIS AUDIT TIME, OUR INITIAL SCOPE OF THE AUDIT WAS FROM JANUARY, 2020 TO DECEMBER, 2022.
WE DID FIND SOME, UH, INACCURACIES, UH, SO WE HAD TO EXPAND BOTH THE FUEL AND AS WELL AS, UH, THE PROPANE TESTING, THE PROPANE TESTING.
ALSO WANNA EMPHASIZE THAT IT'S NOT JUST THE FLEET DEPARTMENT.
THERE ARE A NUMBER OF DIFFERENT DEPARTMENT USERS, PROPANE, AND THEY ALSO PROCURE AND PAY.
UH, SO THAT, THAT WAS A CITYWIDE.
SO OUR RECOMMENDATIONS FOR THOSE IS NOT JUST FOR FLEET, IT'S FOR A CITYWIDE.
I DO WANT TO THANK, ONCE AGAIN BEFORE I TURN IT OVER TO AARON, UH, THE CITY MANAGER SUPPORT HIS STAFF SUPPORT BECAUSE AS YOU, YOU KNOW, FROM AN INTERNAL CONTROL PERSPECTIVE, TONE AT THE TOP MATTERS.
SO THE, THE TONE THAT JARED AND HIS TEAM SETS IT UP MAKES A HUGE DIFFERENCE.
SO I DO WANT TO THANK THEM FOR, UH, THEIR CORPORATION DURING THIS AUDIT.
WITH THAT, I'M GONNA TURN IT OVER TO ERIN.
SHE'S GONNA GIVE YOU SOME, A LITTLE BIT MORE BACKGROUND.
SHE KNOWS WAY MORE THAN I DO
UM, SO I JUST WANT TO BE CLEAR THAT FOR THE PURPOSE OF THIS REPORT, THE TERM FUEL REFERS TO GASOLINE AND DIESEL.
PROPANE HAS A SEPARATE, SEPARATE PRICING TERM, SEPARATE DELIVERY PROCESS.
SO ALTHOUGH PROPANE IS FUEL, WE'RE SEPARATING IT WHEN WE'RE TALKING ABOUT IT IN THE REPORT.
UM, SO AS JED MENTIONED, THE FLEET FLEET WAS VERY HELPFUL THROUGHOUT THE AUDIT.
UM, BEFORE I BRIEF THE BACKGROUND, I WANNA RECOGNIZE FLEET'S EXCEPTIONAL MONITORING CONTROLS, UM, THAT THEY HAVE IN PLACE FOR FUEL ORDERING AND DELIVERY PROCESS.
UH, THESE SPECIFIC CONTROLS INCLUDE THE MANUAL MEASUREMENT OF TANKS FOR EACH DELIVERY, PERIODIC INVENTORY MEASUREMENTS, AND TIMELY ORDERING OF FUEL TO MAINTAIN A, A SUFFICIENT SUPPLY.
JUST TO PROVIDE PERSPECTIVE, THEY PROCESS ABOUT 430, UH, FUEL DELIVERY INVOICES EACH YEAR.
SO THE FLEET SERVICES DEPARTMENT MAINTAINS A FUEL INVENTORY FOR THE CITY'S FLEET OF VEHICLES.
FLEET RECEIVES AND ISSUES ABOUT 1.4 MILLION GALLONS OF FUEL EACH YEAR.
ACCORDING TO APPROXIMATELY $3.5 MILLION, THE CITY'S FUELS PURCHASED THROUGH AN INTERLOCAL AGREEMENT MANAGED BY TARRANT COUNTY.
APPROXIMATELY 550 OTHER MUNICIPALITIES AND GOVERNMENT ENTITIES PARTICIPATE IN THIS COOPERATIVE.
IT'S VERY HARD TO FIND A MUNICIPALITY THAT DOESN'T COOPERATE WITH IT.
UH, TWO CONSECUTIVE AGREEMENTS WERE USED DURING THE SCOPE OF THE AUDIT.
EACH PROVIDED THE SAME LIST OF ALLOWABLE TAXES.
UH, THESE INCLUDE STATE MOTOR FUEL TAX, A STATE PRODUCT DELIVERY FEE.
UM, FEDERAL LEAKING UNDERGROUND STORAGE TANK TRUST FEE, AND A FEDERAL OIL SPILL LIABILITY FEE.
BOTH AGREEMENTS SPECIFICALLY STATED ACCORDING TO THE I R S STANDARDS, PARTICIPATING ENTITIES ARE EXEMPT FROM PAYING A FEDERAL EXCISE TAX ON FUEL.
AND I CONFIRMED THIS WITH, UH, THE CITY ATTORNEY'S OFFICE FINANCE DEPARTMENT, AND TARRAN COUNTY FUEL'S ORDERED THROUGH EMAIL CORRESPONDENCE TO THE VENDOR.
WHEN IT TANKS, INVENTORY REACHES 50% CAPACITY.
THE VENDOR BUYS FUEL AT A TERMINAL WHERE THE, WHERE A SINGLE BILL OF LADING IS PROVIDED FOR THE ENTIRE TRUCKLOAD OF FUEL.
THIS BILL OF LADING STAYS WITH THE TRUCK UNTIL ITS FINAL DELIVERY.
WHEN THE VENDOR DELIVERS THE FUEL, A DELIVERY RECEIPT IS PROVIDED, UH, WHICH DOCUMENTS THE NUMBER OF GALLONS DROPPED, THE SPECIFIC TANK DELIVERED TO, AND THE TANK MEASUREMENTS VERIFIED BY THE CUSTOMER SEPARATELY FROM GASOLINE AND DIESEL.
SEVERAL DEPARTMENTS SUCH AS THE FIRE DEPARTMENT, LANDFILL AND OTHERS PURCHASE AND USE PROPANE IN SPECIALIZED EQUIPMENT, HEATING BUILDINGS AND FIRE TRAINING.
AS A FEW EXAMPLES, A FEW DEPARTMENTS EVEN HAVE THEIR OWN ONSITE PROPANE TANKS TO WHICH A PROPANE VENDOR DELIVERS PROPANE DIRECTLY.
THE CITY'S PROPANE EXPENSE IS MUCH LESS THAN GASOLINE AND DIESEL AVERAGING ABOUT $22,000 A YEAR.
MOST OF THE CITY'S PROPANE HAS BEEN PROCURED THROUGH A SINGLE LONGTIME VENDOR IN WHICH WE'VE HAD A SET CONTRACTED PRICE.
UH, SMALLER AMOUNTS ARE PURCHASED USING PCARD.
UH, THIS LONGTIME VENDOR IN THE REPORT IS REFERRED TO AS PROPANE VENDOR A.
THEIR FINAL CONTRACT EXPIRED IN SEPTEMBER OF 2022.
AROUND THIS TIME, ANOTHER VENDOR BOUGHT PROPANE VENDOR A'S BUSINESS AND RESUMED SUPPLYING THE CITY WITH PROPANE WITHOUT ESTABLISHING, UH, CONTRACTED PRICING TERMS. UH, THIS REPORT REFERS TO THAT VENDOR AS PROPANE VENDOR B.
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SO IN THE CONTRACTS THAT WERE ACTIVE DURING THE SCOPE OF THE AUDIT, PROPANE VENDOR A'S PRICING TERMS INCLUDED A FIXED BASE PRICE PER GALLON IN ADDITION TO THE MONT BELLEVUE RATE.THE CONTRACTS DIDN'T ELABORATE ON WHAT MONT BELLEVUE RATE IS, BUT OUR RESEARCH FOUND THAT MONTT BELLEVUE'S TERMINAL SPOT PRICE IS COMMONLY USED AND WIDELY ACCESSIBLE, SUCH AS THROUGH THE UNITED STATES ENERGY INFORMATION ADMINISTRATION WEBSITE, WHICH PUBLISHES DAILY PRICES.
CURRENTLY, THE CITY'S PROPANE DELIVERY PROCESS HAS LESS INVOLVEMENT FROM DEPARTMENTAL PERSONNEL THAN FUEL DELIVERIES.
THE TANKS HAVE METERS THAT PROVIDE PRINTOUTS DETAILING TANK CAPACITY BEFORE AND AFTER A TANK IS FILLED.
AND THESE ARE PROVIDED TO DEPARTMENTS AND RETAINED WITH RECEIPTS SOME OF THE TIME, UH, FROM SPEAKING WITH DIFFERENT DEPARTMENTS WHO HAVE PROPANE DELIVERED.
SOME DEPARTMENTS PLACE ORDERS WITH THE VENDORS WHILE OTHER DEPARTMENTS TANKS ARE MONITORED BY THE VENDOR AND REFILLED AS NECESSARY.
STARTING WITH ISSUE ONE, IA FOUND THAT THE CITY INTERMITTENTLY PAID OVER 217,000 IN FEDERAL EXCISE TAX FOR GASOLINE AND DIESEL FROM JUNE, 2022 THROUGH APRIL, 2023.
UM, EVEN THOUGH THE CITY IS EXEMPT FROM PAYING THIS TAXED, UM, AS I MENTIONED EARLIER IN THE BACKGROUND, UM, ALL TAXES, I MEAN, SORRY, ALL THESE TAXES WERE INVOICED BY THE SAME VENDOR.
UH, THIS IS LIKELY DUE TO A LACK OF UNDERSTANDING OF THE APPROPRIATE TAXES AND TURNOVER OF MANAGEMENT AND ACCOUNTS PAYABLE PERSONNEL WITHIN THE FLEET SERVICES DEPARTMENT.
UH, SO I RECOMMENDS THAT THE CITY, THAT CITY MANAGEMENT REQUEST REIMBURSEMENT OF TAXES INAPPROPRIATELY CHARGED BY THIS FUEL VENDOR AND ENSURE FLEET DEVELOPS AND IMPLEMENTS POLICIES AND PROCEDURES FOR VERIFYING THE APPROPRIATENESS OF ALL CHARGES, INCLUDING TAXES AND FEES.
MANAGEMENT CONCURS, UH, AS OF JULY 31ST, 2023, FLEET HAS FILED FOR A REFUND WITH THE I R S AND SUBMITTED A TAX EXEMPTION FOR THE FUEL VENDORS.
UM, IN OCTOBER, 2022, FLEET ESTABLISHED A NEW METHOD FOR PROCESSING PAYMENTS, INCLUDING CROSS TRAINING ADMINISTRATIVE STAFF.
SO MORE THAN ONE STAFF MEMBER CAN PROCESS ACCOUNTS PAYABLE, UH, AND CROSS TRAINING ALSO INCLUDES TRAINING ON INVOICE TAXES.
ADDITIONALLY, CITY MANAGEMENT WILL REVIEW CURRENT POLICIES, TERMS AND CONDITIONS RELATED TO APPLICABLE TAXES BY DECEMBER 1ST, 2023.
I FOUND THAT FROM JANUARY, 2018 THROUGH JUNE, 2022, PROPANE VENDOR A CHARGED THE CITY A HIGHER, A HIGHER RATE PER GALLON THAN AGREED TERMS STATED IN THEIR TWO LATEST CONTRACTS TOTALING OVER $26,000 IN OVERCHARGES PAID BY SIX DIFFERENT DEPARTMENTS.
AND THIS IS LIKELY DUE TO A LACK OF UNDERSTANDING OR MONITORING OF PROPANE CHARGES, AS WELL AS VENDOR INVOICES, NOT CONTAINING RATE CALCULATION DETAILS.
WE RECOMMEND CITY MANAGEMENT REQUEST A REIMBURSEMENT OF EXCESS CHARGES FROM PRO PROPANE VENDOR A AND ENSURE DEPARTMENTS PURCHASING PROPANE, DEVELOP AND IMPLEMENT POLICIES AND PROCEDURES FOR VERIFYING VENDOR CHARGES.
CITY MANAGEMENT CONCURRED, UM, CITY MANAGEMENT WILL REVIEW THE IDENTIFIED EXCESS CHARGES AND SEEK CREDITS OR REFUNDS AND REVIEW CITYWIDE POLICIES TO PROVIDE DIRECTIONS FOR VERIFYING VENDOR CHARGES BY OCTOBER 1ST, 2023.
ADDITIONALLY, FLEET IS WORKING TO ESTABLISH A CONFIRMED BASE CHARGE WITH A NEW OR EXISTING PROPANE VENDOR.
UM, FOLLOWING THE ACQUISITION OF PROPANE VENDOR A'S BUSINESS SIX BILLS WERE PAID TO PROPANE VENDOR B, WHICH CAUSED SOME CONFUSION WITH PROPANE VENDOR A'S CONTRACT RENEWAL WHEN IT WAS PRESENTED BACK IN DECEMBER.
ISSUE NUMBER THREE, I A FOUND THAT ORDER DOCUMENTATION, DELIVERY RECEIPTS AND BILLS OF LADING CONTAIN KEY INFORMATION SUCH AS GALLONS ORDERED OR DELIVERED DATES AND TANK LOCATIONS.
SUCH DOCUMENTS CAN BE USED TO VERIFY CITY FUEL AND PROPANE INVOICES.
DELIVERY RECEIPTS ARE PRIMARY SUPPORT DOCUMENTATION FOR FUEL AND PROPANE INVOICES.
ORDER DOCUMENTATION AND BILLS OF LADING ARE SECONDARY AND NOT REQUIRED, BUT THESE DOCUMENTS WHEN AVAILABLE PROVIDE ADDITIONAL PER PURCHASE INFORMATION THAT'S SOMETIMES LEGIBLE OR MISSING FROM DELIVERY RECEIPTS.
UPON REVIEW, I A IDENTIFIED THE FOLLOWING THREE OF 68 SAMPLED FUEL INVOICE FILES AND 60 OF THE 75 PROPANE INVOICE FILES DID NOT INCLUDE DELIVERY RECEIPTS.
20 OF THE 68 SAMPLE FUEL INVOICE FILES DID NOT INCLUDE BILLS OF LADING ORDER DOCUMENTATION WAS ALSO NOT RETAINED WITH FUEL OR PROPANE INVOICE FILES, BUT FUEL ORDER EMAILS ARE RETAINED BY FLEET OUTSIDE OF THE CITY'S DOCUMENTATION RETENTION SYSTEM.
I WANNA NOTE THAT FUEL INVOICE FILES THAT DID NOT INCLUDE EITHER DELIVERY RECEIPTS OR BILLS OF LADING WERE VERIFIED FOR ACCURACY WITH FLEET'S INVENTORY REPORTS IN THEIR ORDER.
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ARE POTENTIAL CAUSES OF THIS MISSING.FUEL DELIVERY RECEIPTS, UM, MAY BE DUE TO ADMINISTRATIVE ERROR WHILE SCANNING DOCUMENTATION INTO THE DOCUMENTATION.
RETENTION RETENTION CENTER RECEIVING DEPARTMENTS DO NOT REQUEST A DELIVERY RECEIPT FOR PROPANE.
BILLS OF BLEEDING ARE NOT CONSISTENTLY PROVIDED OR REQUESTED UPON DELIVERY.
RETAINING ORDER DOCUMENTATION WITH INVOICE FILES IS NOT CURRENTLY A REQUIREMENT.
AND THE CURRENT DOCUMENT RETENTION SYSTEM MIGHT HAVE TECHNICAL ISSUES AND LIMITATIONS.
I RECOMMEND CITY MANAGEMENT ENSURE DEPARTMENTS PURCHASING PROPANE, DEVELOP AND IMPLEMENT POLICIES AND PROCEDURES FOR OBTAINING AND RETURN RETAINING AT MINIMUM DELIVERY RECEIPTS.
ENSURE FLEET DEVELOPS AND IMPLEMENTS POLICIES AND PROCEDURES FOR RETAINING AT MINIMUM DELIVERY RECEIPT, BUT CONSIDERS RETAINING ORDERING DOCUMENTATION AND BILLS OF LADING AS FEASIBLE FOR FUEL DELIVERIES DETERMINE WHETHER NEW THE NEW FINANCIAL MANAGEMENT SYSTEM HAS A BETTER DOCUMENT RETENTION CAPABILITIES.
CITY MANAGEMENT CONCURS, UM, AND IS IN THE PROCESS OF CENTRALIZING HIGH VOLUME PROPANE PROCUREMENT WITH THE FLEET SERVICES DEPARTMENT.
FLEET STAFF WILL REQUEST THAT THE PROPANE VENDOR PROVIDE DELIVERY RECEIPT FOR INVOICE VERIFICATION PURPOSES FOR FUEL FLEET WILL CONTINUE TO INVOICE, UM, WILL CONTINUE TO CONFIRM DELIVERY RECEIPTS WITH INVOICES AND MAKE PAYMENTS AS REQUESTED BY FUEL VENDORS AS WELL AS VERIFY FUEL DELIVERIES USING MANUAL AND ELECTRONIC LEVEL MONITORING.
IF THE CITY'S THE ONLY AND OR FINAL DELIVERY CUSTOMER FOR A SPECIFIC FUEL TRUCK, A COPY OF THE BILL OF LADING WILL BE REQUESTED UPON DELIVERY.
CITY MANAGEMENT WILL EVALUATE DOC THE DOCUMENT RETENTION CAPABILITIES OF THE NEW FINANCIAL MANAGEMENT SYSTEM AND THESE ACTION PLANS.
IMPLEMENTATION DATE IS OCTOBER 1ST, 2023.
I REVIEWED ALL PROPANE PURCHASES AMONG CITY DEPARTMENTS AND FOUND THAT PROPANE VENDOR A'S CONTRACT EXPIRED IN SEPTEMBER, 2022.
AND NOT ALL AVAILABLE PROCUREMENT OPTIONS HAVE BEEN EVALUATED.
WE ALSO FOUND THAT PROPANE PROCUREMENT IS NOT CENTRALIZED AND DEPARTMENTS PURCHASED PROPANE FROM MULTIPLE VENDORS.
THIS IS BECAUSE PROPANE VENDOR A'S CONTRACT WAS NOT RENEWED AFTER ITS EXPIRATION IN SEPTEMBER, 2022.
AND A NEW CONTRACT WAS NOT ESTABLISHED WHEN PROPANE VENDOR B ACQUIRED PROPANE VENDOR A'S BUSINESS.
THIS IS ALSO A RESULT OF NO CENTRAL POINT OF OVERSIGHT OR MANAGEMENT OF THE CITY'S PROPANE PROCUREMENT.
IA RECOMMENDS CITY MANAGEMENT CONDUCT A CITYWIDE INVENTORY OF ALL PROPANE USE EQUIPMENT AND COST FOR EACH DEPARTMENT AND EVALUATE PROCUREMENT OPTIONS AND CENTRALIZE HIGH VOLUME PROPANE PURCHASES.
MANAGEMENT CONCURRED AND IS UNDER THE OPINION THAT WITH AN ANNUAL SPEND OF APPROXIMATELY $40,000 FOR PROPANE, A CONTRACT IS NOT NEEDED.
CURRENTLY, THERE ARE NO HISTORICALLY UNDERUTILIZED BUSINESSES THAT PROVIDE PROPANE DEPARTMENTS WILL STILL BE ABLE TO USE PCARDS TO PURCHASE PROPANE AS NEEDED.
CITY MANAGEMENT'S IN THE PROCESS OF CENTRALIZING HIGH VOLUME PROPANE PROCUREMENT WITH THE FLEET SERVICES DEPARTMENT AND HAD DIRECTED FLEET TO CONDUCT A CITYWIDE INVENTORY OF PROPANE USE, UM, THEY GAVE AN IMPLE IMPLEMENTATION DATE OF, UH, OCTOBER 1ST, 2023.
AND WITH THAT, ARE THERE ANY QUESTIONS? OKAY.
COMMITTEE, YOU'VE HEARD THE PRESENTATION AND
UM, COUNCIL WILLIAMS. THANK YOU MR. THANK YOU, MR. CHAIRMAN.
UH, JUST A COUPLE OF THREE QUESTIONS.
ONE IS, YOU DID SAY THAT, UH, FOR THE PROPANE VENDOR, THE CONTRACT EXPIRED SEPTEMBER, 2022.
AND MY QUESTION, UM, IF YOU CAN ANSWER IT OR MISS CITY MANAGER OR JU CAN, DO WE, DO WE HAVE A PROCESS OR A GAME PLAN? ARE WE GOING TO SEEK BIDS OR NEW VENDORS FOR, FOR THIS, THIS FUEL SOURCE GOING FORWARD? THAT'S, THAT'S MY FIRST QUESTION.
UH, SECONDLY, YOU REPORTED ALSO THAT THE OVERCHARGES AND YOU ATTRIBUTED, WOULD YOU REPEAT AGAIN WHAT YOU SAID ABOUT WHAT YOU ATTRIBUTED THOSE OVERCHARGES TO FOR THE PROPANE OR FEDERAL EXCISE TAX OR BOTH? YOU CAN PUT THEM TOGETHER.
UM, FOR THE TAX, UH, WE THINK IT'S LIKELY DUE TO AN LACK OF UNDERSTANDING OF WHAT TAXES SHOULD HAVE BEEN CHARGED.
UM, AND THEN ALSO THERE WAS A BIG TURNOVER WITHIN FLEET SERVICES DEPARTMENT WITH MANAGEMENT AND ALSO THE ACCOUNTS PAYABLE PERSONNEL.
[00:35:01]
RIGHT, OKAY.UH, IN BOTH OF THOSE INSTANCES, THERE WERE SOME, THERE WERE SOME MISSING INVOICES, DOCUMENTATION, IN OTHER WORDS, CORRECT? YES.
WELL, SO WHAT WE ARE RECOMMENDING IS JUST ADDING TO WHAT THEY USUALLY DO KEEP TO VERIFY.
SO FOR FUEL, THEY KEEP WHAT'S CALLED A DELIVERY RECEIPT, AND THAT'S AT MINIMUM WHAT THEY SHOULD BE KEEPING.
WE FOUND THREE THAT DIDN'T HAVE IT, BUT WE THINK THAT'S A SCANNING MISTAKE OUT OF THE 68 THAT WE AUDITED.
UM, THE REST OF THE DOCUMENTATION SUCH AS THE BILLS OF LADING, UM, THAT'S A MORE SUFFICIENT, UH, DOCUMENTATION BECOMES, IT COMES FROM A THIRD PARTY FROM THE ACTUAL TERMINAL ITSELF, NOT THE DELIVERY TRUCK.
UM, SO WE THINK THAT'S A MORE, UM, SOLID DOCUMENT TO KEEP.
IF THEY CAN KEEP IT, IT'S NOT ALWAYS AVAILABLE TO THEM BECAUSE IT HAS TO BE THE, THE FINAL DELIVERY OF THE TRUCK.
SO, MR, CAN YOU ANSWER MY QUESTION ABOUT MY INITIAL QUESTION? I ASKED ABOUT THE, UM, PROPANE, UM, OVERCHARGED.
AND MY LAST QUESTION HAS TO DO WITH THE XR TAX.
UM, I DON'T KNOW WHAT THAT VETTING PROCESS WAS, BUT DO WE KNOW WHETHER WERE WE THE ONLY PARTICIPATING ENTITY? 'CAUSE YOU, YOU EXPLAINED THAT WE'RE PART OF A MM-HMM.
WERE WE THE ONLY CITY THAT WAS IMPACTED BY THE OVERCHARGES? IF I MAY ANSWER, UM, TO THAT, UH, WE DID TALK TO TARRANT COUNTY.
UM, THEY DID NOT PAY FEDERAL EXCISE TAX, UH, ON THEIR, UH, INVOICES.
OBVIOUSLY WE DID NOT KNOW, WE DIDN'T SURVEY ALL THE OTHER CITIES.
OR OTHER, OTHER COUNTIES OR OTHER AGENCIES.
WHAT HAPPENED IN THIS CASE? UM, THERE WERE SOME CHANGES ON THE VENDOR SIDE AS WELL.
THEIR ACCOUNTS, UM, RECEIVABLE OR WHOEVER IS PREPARING THE INVOICING, WE BELIEVE THEY HAD SOME TURNOVERS ON THEIR END AND WE HAD SOME TURNOVERS ON OUR END.
AND YOU KNOW, OBVIOUSLY WHEN YOU SEE A TAX, YOU KIND OF MAKE THE ASSUMPTION THAT IT IS TAX YOU'RE SUPPOSED TO PAY.
AND, UH, AND AS YOU'RE AWARE, COUNCILMAN, AND AS WE INDICATED BEFORE, FLEET SERVICES WAS SHORTHANDED LAST YEAR AND WITH GARTH JUST SETTING EVERYTHING UP, AND THEY ALSO HAD A, UNFORTUNATELY ONE OF THE ACCOUNTS PAYABLE PERSON, UM, UH, HAD AN UNFORTUNATE EVENT DURING THAT TIME.
SO THEY NEEDED SOME TIME TO, TO PUT EVERYTHING TOGETHER.
UH, AND, AND THAT'S WHAT HAPPENED.
BUT WE FEEL CONFIDENT THAT, AND FLEET, AS SOON AS WE BROUGHT, BROUGHT THIS TO THEIR ATTENTION, THEY'RE PUTTING A PROCESS IN PLACE, THEY'RE CROSS TRAINING, THEY'RE PUTTING A CHECKLIST TOGETHER, SO THEY'RE PUTTING THAT PROCESS IN PLACE.
AND MY UNDERSTANDING IS THEY WORKED WITH THE FINANCE DEPARTMENT AND THEY ALL ALREADY REACHED OUT TO THE I R S TO OBTAIN THAT REIMBURSEMENT BACK.
SO I FEEL VERY GOOD ABOUT THE PROCESS MOVING FORWARD.
INTERNALLY, WHAT IS, IS THE VENDOR ALSO AWARE OF THE FINDING AND THE VENDOR MAKING APPROPRIATE, TAKING APPROPRIATE ACTIONS TO ENSURE WE DON'T HAVE A REPEAT OF THIS? I, I APPRECIATE AND UNDERSTAND WHAT WE ARE DOING ON OUR, OUR SIDE AND WHAT MY QUESTION IS SPECIFICALLY FOR THE, FOR THE VENDORS VENDOR, WHAT'S, IF WE, PARTICULARLY IF WE ARE GOING TO BE CONTINUING USE, THIS VENDOR'S GONNA BE SERVICING THE GROUP.
SO, UH, IS THE VENDOR AWARE OF, OF THIS DISCUSSION, IS THE VENDOR AWARE ON THE VENDOR SIDE? YES, SIR.
AM I AWARE? YES, I UNDERSTAND WHAT WE ARE DOING, BUT MY QUESTION HAS TO DO WITH THE VENDORS.
THEY, THE, THE VENDOR KNOWS, UH, THE NEW VENDOR WHO BOUGHT OUT THE OTHER CONTRACT.
SO THE VENDOR KNOWS WE'RE STILL GOING THROUGH A PROCESS TO SEEK, UH, TO SEE IF WE CAN GET A BETTER COST ON THE PROPANE SIDE.
OUR INITIAL LOOK AT IT, IT WAS GONNA COST US A LITTLE MORE.
SO WE'RE, WE'RE TRYING TO TWEAK THAT PROCESS, UH, TO SEE IT'S A, IT'S A MUCH SMALLER VALUE.
I THINK THAT'S WHAT'S IN THERE.
I THINK IT WAS LESS THAN $40,000.
SO IT'S SOMETHING THAT WE'RE GONNA DO WORK THROUGH.
UH, BUT THE VENDOR KNOWS, STAFF KNOWS THE PROCESS HAS BEEN FIXED.
OH, MS.
THERE'S THE, WE'RE LOOKING AT LOTS OF DIFFERENT OPTIONS AS MITCH MENTIONED ABOUT PURCHASING PROPANE, BUT WE JUST, WE JUST DON'T BUY A LOT, SO WE'RE NOT GRILLING A LOT OF HOT DOGS AND HAMBURGERS.
YEAH, I, I I KNOW THAT'S, THAT'S, THAT'S, UM,
[00:40:01]
THE SMALL SIDE.CAN YOU SPEAK IT ALL TO THE, THE, THE VENDOR ON THE GASOLINE, THE EXCISE TAX ISSUE FROM VENDOR STANDPOINT? THAT'S A BIG, THAT'S A BIGGER PIECE OF THE PIE.
SO THEY, THE VENDOR'S AWARE OF OUR BIDDING PROCESS FOR OUR VENDORS.
I KNOW THEY'RE PART OF A GROUP.
CAN YOU SPEAK TO THAT PIECE FROM A, FROM, FROM THE EXCISE TAX PIECE? SURE.
SO THE, THE VENDOR'S AWARE OF, OF WHAT HAPPENED, UH, AND OF COURSE AS A STAFF, UH, WE'RE GOING TO, WE'RE GOING TO, WE'VE ALREADY FIXED OUR PROCESS IN TERMS OF REVIEWING THE, THE INVOICES TO MAKE SURE WE DON'T PAY THAT.
SO, UH, WE, WE HAVE EVERY EXPECTATION THAT THAT MONEY WILL BE COMING BACK TO THE CITY.
AND I KNOW WE'RE DEALING WITH I R S, UH, MATT, THERE'S NO TIMELINE.
THEY DO IT WHEN THEY GET READY.
UH, BUT THAT REIMBURSEMENT PROCESS IS IN MOTION ALREADY AS, AS YOU SPEAK, MR. CITY MANAGER.
AND I, I, WE DON'T KNOW THE TIMELINE FOR THAT EITHER.
UH, THE $217,000 EXCISE TAX, THAT'S A LOT.
BUT WE SHOULD GET A REFUND ON THAT.
AND WE'RE, WE'RE AN EXEMPT ORGANIZATION, SO LOOKING FORWARD TO THAT, GETTING BACK INTO THE, UH, INTO OUR TREASURY.
SO, UM, KEEP UP THE GOOD WORK.
IT SOUNDS LIKE THE PROCESS IS ALREADY BEEN FIXED.
IF THERE ARE NO OTHER COMMENTS, MY, UH, MY CONCERN BECOMES, UH, ALWAYS WHAT HAS BEEN DONE TO, TO, UH, ADDRESS THE ISSUE OF, IT SOUNDS LIKE THE RECORD KEEPING ASPECT.
UH, AND YOU PROBABLY, UH, DEALT WITH IT, BUT I'M GONNA ASK YOU TO DO THAT AGAIN.
AND WHAT I'M SAYING THERE IS THIS, IT WOULD APPEAR THAT THERE WERE A LOT OF, UH, SITUATIONS WHERE GAS OR FUEL WAS ALLOCATED, WAS PROVIDED, BUT THE RECORD KEEPING JUST DID NOT OCCUR.
IN OTHER WORDS, WE DIDN'T HAVE, UH, WE DIDN'T KNOW IF WE RECEIVED IT, WE DIDN'T KNOW HOW MUCH WE RECEIVED AND SO ON AND SO FORTH.
WHAT IS THE RECOMMENDATION AS IT RELATES TO POLICY, PROCEDURES, SOPS? WHAT ARE WE DOING TO ASSURE THAT THAT DOES NOT CONTINUE? WE, WE ACTUALLY DO HAVE THE RECORD KEEPING.
SO WHAT I THINK AUDIT IS RECOMMENDING IS SOME ADDITIONAL, UM, AND I'M NOT GONNA SAY WHAT'S, UH, THE ADDITIONAL ENHANCE, ENHANCE THE INTERNAL CONTROLS.
SO WE HAVE DOCUMENTATION THAT COMES THROUGH FOR EVERY PURCHASE THAT WE GET.
SO THAT'S THERE, THEY'RE, THEY'RE RECOMMENDING SOME ADDITIONAL DOCUMENTATION JUST TO MAKE SURE TO BE ON THE SAFE SIDE.
SO IT'S NOT A MATTER THEN OF A LOT OF, UH, THE GAS, UH, FUEL COMING IN AT DIFFERENT POINTS AND THINGS OF THAT NATURE AND WE'RE NOT ABLE TO IDENTIFY.
IT HAS BECAUSE THAT'S WHAT IT WOULD SOUND LIKE.
SO THEY DO HAVE SUFFICIENT RECORD KEEPING.
SO, UH, WHAT WE LOOK FOR IS AREAS OF IMPROVEMENTS, RIGHT? UH, SO EVEN IF, SO AS AARON MENTIONED EARLIER, THIRD PARTY CONFIRMATION IS BETTER THAN INTERNAL CONFIRMATION.
SO IF I GET A RECEIPT FROM A THIRD PARTY, FOR EXAMPLE, FROM THE RACK MM-HMM.
THAT DOCUMENT VALUES MORE THAN THE VENDOR SAYING, I DELIVERED 7,000.
SO THAT'S THE PIECE THAT WAS MISSING IN BETWEEN.
SO IT'S JUST TO ENHANCE OUR VERIFICATION FURTHER, BECAUSE AS YOU KNOW, WITH FUEL, THERE IS ALL KINDS OF FRAUD THAT COULD OCCUR.
WE DID NOT FIND ANY EVIDENCE OF ANY KIND OF INCONSISTENCIES OR ANY KIND OF FRAUD.
THIS IS JUST TO ENHANCE FURTHER THAT'S ALL.
HAVE ANY THEY DO, THEY DID HAVE THE RECORDS.
THEY HAD THE INVENTORY REPORTS.
UH, WE WERE ABLE TO, UH, OBTAIN THE EMAIL CONFIRMATION OF HOW MUCH THEY ORDERED.
WE ALSO GOT THE INFORMATION FOR THE MOST PART, THE RECEIPTS THAT THE VENDOR PROVIDED.
SO WE WERE ABLE TO CORROBORATE ONE WAY OR THE OTHER THAT YES, WE ARE PAYING FOR WHAT, WHAT WAS ACTUALLY DELIVERED.
WE FELT A HUNDRED PERCENT COMFORTABLE ABOUT IT.
WE JUST WANTED TO ENHANCE A LITTLE BIT MORE.
SO JUST IN CASE IF SOMETHING HAPPENS, WE HAVE A, WE HAVE THAT THIRD PARTY CONFIRMATION.
IN THE WAY OF THE, UH, OVERPAYMENTS, HAS ANY OF THAT MONEY BEEN RE, RE RETURNED, REIMBURSED? WE'VE BEEN SEEKING THE REIMBURSEMENT.
WE HAVE NOT RECEIVED IT YET FROM THE VENDOR, BUT WE'VE HAD POSITIVE CONVERSATIONS.
SO THERE'S NOT A SITUATION, UH, I'M, AS OF RIGHT NOW, I'M CONFIDENT THAT IT'LL HAPPEN.
ARE THERE ANY OTHER COMMENTS THAT IT RELATES TO THE SUBJECT? THANK YOU VERY MUCH, MAN.
[00:45:03]
OKAY, LET'S MOVE FORWARD NOW TO ITEM C, MUNICIPAL COURT COMPLIANCE PROGRAM AUDIT.JED, ONCE AGAIN, CHAIRMAN, I'LL KICKSTART THIS AS WELL.
UH, WE WANTED TO MAKE SURE THAT, UH, THE COMPLIANCE DEPARTMENT WITHIN THE MUNICIPAL COURT HAD INTERNAL CONTROLS OVER THE PROGRAM AND WHETHER THE PAYMENTS ARE MONITORED FOR DEFAULT.
UH, I JUST WANNA APPRECIATE THE TWO JUDGES, UH, HOW CLOSELY THERE WORKED WITH US DURING THIS AUDIT.
I ALSO WANT TO THANK KEVIN SLAY, WHO WENT ABOVE AND BEYOND TO PROVIDE EVERYTHING.
AND, AND PAIGE ASSISTED DURING THE AUDIT, BUT SHE WAS OUT IN BETWEEN.
BUT KEVIN, UH, WORKED WITH THE STAFF TO PROVIDE ALL THE INFORMATION AND WE WORKING TOGETHER AS A TEAM FELT REALLY GOOD, UH, DURING THIS AUDIT BECAUSE WE WERE EDUCATING OURSELF.
THE JUDGE JUST PROVIDED A LOT OF INFORMATION.
EVEN THE ATTORNEY'S OFFICE PROVIDED A LOT OF INFORMATION.
SO THIS WAS COLLABORATIVE, IT WAS A COLLABORATIVE EFFORT.
UH, BUT, UH, AGAIN, I THINK IT WAS A VERY VALUE ADDED AUDIT.
WITH THAT, I'LL TURN IT OVER TO PATRICIA LADIES.
THE CITY OF GARLAND MUNICIPAL COURT HEARS, UH, A VARIETY OF CLASS C MISDEMEANOR CASES AND CITY, CITY ORDINANCE VIOLATIONS, WHICH ARE WRITTEN BY A NUMBER OF CITY DEPARTMENTS, INCLUDING ANIMAL SERVICES, CODE COMPLIANCE, HEALTH, FIRE, AND POLICE COURT HAS SEVERAL DIVISIONS SUCH AS WARRANTS, DOCKET, AND COMPLIANCE.
AND THIS AUDIT FOCUSED ONLY ON THE COURT COMPLIANCE DIVISION.
UM, THE, THE, THEIR FUNCTION IS TO ALLOW DEFENDANTS WHO RECEIVE CITATIONS TO SET UP PAYMENT PLANS, UM, OVER A PERIOD OF TIME TO PAY MONTHLY.
ON THE COURTROOM SIDE OF IT, THE JUDGES HEAR LEGAL MATTERS AND MAKE RULINGS SUCH AS DRIVER SAFETY COURSES, COMMUNITY SERVICE AND WAIVERS OR REDUCTION OF COSTS.
AND PER THE STATE LAW, THERE ARE SOME DUTIES THAT MAY BE DI DELEGATED TO COURT STAFF FOR SPECIFIC PROCEDURES OR SITUATIONS BY THE JUDGE WRITING A STANDING ORDER, A STANDING ORDER CLEARLY DOCUMENTS DELEGATED AUTHORITY AND ARE CONSIDERED BEST, BEST PRACTICE TO HELP IMPROVE EFFICIENCY IN THE COURTS.
ON THE ADMINISTRATIVE SIDE OF IT, MANAGEMENT OF THE CASE RESOLUTION LIFECYCLE OCCURS IN THE COMPLIANCE DIVISION, AND THIS MAY INCLUDE UPDATING CASE FILES, ASSISTING DEFENDANTS WITH COMPLIANCE OF COURT ORDERS, SETTING UP PAYMENT PLANS, COLLECTIONS AND RECORDS RETENTION COMPLIANCE.
AND THE COURT MUST COORDINATE ACTIVITIES AND WORK CLOSELY.
BUT COMPLIANCE DOES NOT HAVE AUTHORITY TO EXERCISE JUDICIAL DISCRETION.
IF A DEFENDANT CANNOT PAY THEIR CITATION IN FULL BY THE DUE DATE, THE DEFENDANT MAY REQUEST A PAYMENT PLAN THROUGH COMPLIANCE IF NO WARRANT HAS BEEN ISSUED, AND IF THEY'RE WILLING TO SIGN A GUILTY PLEA.
PRESENTLY, MOST PAYMENT PLANS ARE REQUESTED THROUGH COMPLIANCE, WHICH REQUIRES COMPLETION OF AN APPLICATION.
THE APPLICATION CAPTURES LIMITED INFORMATION AND THE JUDGES ARE NOT AWARE OF THE INFORMATION COLLECTED OR THE AGREEMENT TERMS. ALTERNATIVELY, THE DEFENDANT MAY REQUEST A HEARING TO DISCUSS THESE MATTERS WITH THE JUDGE.
AT THE HEARING, THE JUDGE MAY ALSO ORDER A PAYMENT PLAN, BUT HAS THE DISCRETION TO PROVIDE OTHER ALTERNATIVES SUCH AS WAIVING OR REDUCING FEES OR ORDERING COMMUNITY SERVICE.
IN BOTH INSTANCES, PAYMENT PLAN INFORMATION IS ENTERED INTO THE SYSTEM AND COMPLIANCE MONITORS THE PROGRESS, ENSURING PAYMENTS ARE MADE TIMELY AND AMOUNTS ARE CORRECT.
OCCASIONALLY THE, THE DEFENDANTS MAY REQUEST A REVISION TO THEIR PLAN WHEN CIRCUMSTANCES OCCUR, WHICH APPEARS TO OCCUR MOST OFTEN.
MOST OFTEN WHEN SOMEONE RECEIVES ADDITIONAL CITATIONS WHILE ALREADY ON A PAYMENT PLAN FOR ALL CITATIONS NOT PAID BY THE 30TH DAY AFTER JUDGMENT, STATE LAW MANDATES APPLYING A $15 TIME PAYMENT FEE.
DURING THE SCOPE OF THE AUDIT, WHICH JED MENTIONED WAS OCTOBER 1ST, 2020 TO JANUARY 17TH, 2023.
THERE WERE 3,650 PAYMENT PLANS CREATED OR REVISED.
SOME OF THESE PLANS HAVE MULTIPLE CITATIONS FOR A TOTAL OF NEARLY 7,000 CITATIONS.
THE TOTAL CHARGES WERE NEARLY TWO AND A HALF MILLION DOLLARS AS A RESULT OF COLLECTION EFFORTS AND PROCESSES THROUGH THE COMPLIANCE DIVISION, AROUND 70% HAVE BEEN RESOLVED AT THE TIME OF WRITING THIS REPORT.
APPROXIMATELY 728,000 IS STILL OUTSTANDING.
UM, AS JED MENTIONED, OBJECTIVE B IS TO DETERMINE IF THE PLANS ARE MONITORED FOR DEFAULT AND WE FOUND THAT THEY ARE DOING A GREAT JOB DOING THAT.
A COMPREHENSIVE REVIEW OF 132 OF THE PAYMENT PLANS REVEALED CASE MONITORING WAS DONE TIMELY AND EFFECTIVELY BY COMPLIANCE STAFF REGARDING CONTACTING DEF DEFENDANTS FOR PAYMENTS.
THE STAFF PERFORMED THE CONTACT VIA PHONE CALLS, EMAILS, AND LETTERS, AND
[00:50:01]
DOCUMENTED ALL OF THOSE EFFORTS.SO FOR THE FIRST OBSERVATION, UH, WE FOUND THAT THE ALTERNATIVE PAYMENT OPTION PROCESSES ARE NOT CLEARLY DEFINED.
MUNICIPAL COURTS ARE STATUTORILY AUTHORIZED TO DEVELOP THEIR OWN LOCAL RULES AND POLICIES FOR ALTERNATIVE PAYMENT OPTIONS AND INDIGENCY DETERMINATION PROCEDURES.
ANY DEFENDANT WHO ENTERS A PLEA AND CANNOT PAY IN FULL MAY REQUEST ALTERNATIVE PAYMENT ARRANGEMENTS.
THIS INCLUDES PAYMENT PLANS, PERFORMING COMMUNITY SERVICE, INDIGENCY DETERMINATION, OR WAIVERS OR REDUCTIONS OF COSTS BY A JUDGE.
IF A DEFENDANT REQUESTS A PLAN FROM COMPLIANCE, AN APPLICATION IS COMPLETED ALONG WITH A PHOTO ID AND A PLEA OR JUDGMENT STAFF PERFORMS AN INTERVIEW, VERIFIES THE CONTACT INFORMATION AND PREPARES AN AGREEMENT WHICH OUTLINES THE PAYMENT AMOUNTS AND LENGTH OF TIME TO PAY.
ALTHOUGH THE INCOME AND EXPENSES ARE DISCLOSED ON THE APPLICATION, SUPPORTING DOCUMENTATION IS NOT REQUESTED OR VERIFIED, AND THERE ARE LEGAL REASONS FOR THAT.
UM, COMPLIANCE THEN INTERVIEWS THE DEFENDANT, INCLUDING THE DISCUSSION REGARDING ABILITY AND RESOURCES TO PAY.
THE TEXAS CODE OF CRIMINAL PROCEDURE STATES THAT ONLY A JUDGE HAS THE AUTHORITY TO DETERMINE IF A DEFENDANT HAS SUFFICIENT RESOURCES, IS ELIGIBLE FOR COMMUNITY SERVICE OR ELIGIBLE FOR WAIVERS OR REDUCTIONS DUE TO CURRENT OPERATIONAL PRACTICES.
ELIGIBILITY FOR ALTERNATIVE PAYMENT OPTIONS MAY NOT ALWAYS BE FULLY VETTED.
IF A DEFENDANT INFORMS COMPLIANCE THAT THEY WANT TO SEE A JUDGE OR INDIGENT OR WANTS TO PERFORM.
COMMUNITY SERVICE STAFF PROCESSES THE CASE IN THE SYSTEM WITH THE TOTAL AMOUNT DUE AND THEN SCHEDULES A HEARING.
HOWEVER, THE JUDGES DO NOT SEE THE COMPLETED PAYMENT PLAN APPLICATIONS AND THE DEFENDANTS MAY NOT BE AWARE THAT DOCUMENTATION SUPPORTING THEIR ABILITY TO PAY IS REQUIRED FOR THE HEARING.
FINALLY, WAIVERS OR REDUCTIONS OF FINES AND COSTS WERE BEING PERFORMED BY COMPLIANCE ON SOME OCCASIONS.
AND THIS IS DISCUSSED IN THE NEXT OBSERVATION.
WE RECOMMENDED WORKING WITH THE JUDGE TO DEVELOP PROCEDURES AND REEVALUATE BASELINE CRITERIA FOR THE PAYMENT PLANS AND ALTERNATIVE PAYMENT OPTIONS.
IMPLEMENT TWO SEPARATE APPLICATION PROCESSES TO DISTINGUISH DEFENDANT'S OPTIONS AND THEN SEPARATELY TRACK STANDARD PAYMENT PLANS FROM THOSE WITH ALTERNATIVE PAYMENT OPTIONS.
MANAGEMENT CONCURRED AND HAS ALREADY BEEN WORKING WITH THE JUDGES TO ACCOMPLISH THAT.
NEW FORMS ARE CURRENTLY BEING DEVELOPED AND THE JUDGES ARE DISCUSSING ESTABLISHING AN INDIGENCY HEARING PROCESS, WHICH MAY ALREADY BE IN PLACE.
UM, COMPLIANCE IS ALSO WORKING WITH IT AND THE JUDGES WHO DEVELOP MORE APPROPRIATE TRACKING OF PAYMENT PLANS AND ALTERNATIVE OPTIONS AND IMPLEMENTATIONS IS EXPECTED BY NOVEMBER 1ST.
ANY QUESTIONS ON THAT ONE? THERE'S GONNA BE A FEW.
SO I THOUGHT I'D YOU, I HAVE ONE QUESTION ON IT.
SO TELL ME, UH, WHERE ARE WE THEN PRESENTLY AS IT RELATES TO THIS ALTERNATIVE? AS FAR AS THE JUDGES, IT, IT'S NOT LIKE THE JUDGE IS THE ONLY ONE THAT CAN REALLY DETERMINE IF THE DEFENDANT IS INDIGENT, CORRECT? THAT'S CORRECT.
BUT SOMETHING IS TAKING PLACE.
IS THERE A CONCERN THERE THAT SOMETHING IS TAKING PLACE, THAT THE JUDGE IS NOT ACTUALLY DOING THAT AND SOMEONE ELSE MAY BE? OR DO I NEED TO WAIT TILL I CAN WAIT IF YOU, UH, NO, IT'S A FAIR QUESTION.
UM, I THINK THAT THERE HASN'T BEEN A GREAT UNDERSTANDING OF WHAT DETERMINES INDIGENCY.
AND WHILE THE DEPARTMENT ITSELF WAS TAKING THE INCOME AND EXPENSE INFORMATION, IT'S ON THE APPLICATION, THEY WOULD THEN HAVE A CONVERSATION WITH THE DEFENDANT AND THE DEFENDANT MIGHT SUGGEST, YOU KNOW, I CAN'T AFFORD TO PAY THE ENTIRE AMOUNT, YOU KNOW, ALL AT ONCE.
AND THEN THEY MIGHT ASK, OKAY, WHAT CAN YOU AFFORD TO PAY? AND SO THERE WOULD BE A CONVERSATION ABOUT THAT, WHICH KIND OF MAY GET INTO AN AREA OF DETERMINING WHETHER THEY'RE INDIGENT OR NOT.
SO WE, IT, IT'S SOMETHING THAT THE JUDGES WANTED TO BE MORE INVOLVED IN.
SO FOR OBSERVATION NUMBER TWO, ROLES AND RESPONSIBILITIES MAY NEED CLARIFICATION.
THERE ARE SOME DUTIES WHICH MAY NOT BE FULLY UNDERSTOOD OR ARE NOT CLEARLY DEFINED, ABSENT A CURRENT AND SPECIFIC STANDING ORDER FROM THE JUDGE.
DURING THE AUDIT PERIOD, WE OBSERVED PLANS WERE BEING APPROVED AND REVISED BY COMPLIANCE WITHOUT A STANDING ORDER.
UM, THERE WERE FIVE PLANS WHICH WERE ORDERED BY A JUDGE AND THE LENGTH OF TIME AND OR THE MONTHLY PAYMENT AMOUNTS WERE REVISED BY THE COMPLIANCE DIVISION.
PLANS WERE BEING REVISED REPEATEDLY, SOMETIMES AS MANY AS SEVEN TIMES, AND FOR AS LONG AS 10 AND A HALF YEARS, UH, FOR A PARTICULAR PAYMENT PLAN.
UM, FIVE CITATION CHARGES WERE REDUCED BY THE COMPLIANCE DEPARTMENT.
THREE CITATIONS WERE REDUCED USING A STANDING ORDER FROM A PREVIOUS JUDGE WHO'S NO LONGER WITH THE CITY THREE WERE REDUCED USING
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A MAGISTRATE'S WARNING, WHICH IS NOT SUFFICIENT.AND THREE CITATIONS WERE PAID ON OR AFTER THE 31ST DAY REQUIRING THE TIME PAYMENT FEE, WHICH WAS NOT CHARGED, IT WAS ORIGINALLY ASSESSED, THEN STAFF REMOVED THE FEE.
SO OUR RECOMMENDATIONS WERE TO WORK WITH THE JUDGES TO ESTABLISH AND DEVELOP WRITTEN PAYMENT PLAN CRITERIA AND PROCESSES FOR PLANNING REVISIONS TO GAIN AN UNDERSTANDING OF WHAT CIRCUMSTANCES A STANDING ORDER MAY BE APPROPRIATE FOR PAYMENT PLANS AND MANAGEMENT CONCURRED WITH BOTH OF THOSE.
WE ALSO ASK THAT THEY CONSIDER ADDITIONAL STAFF TRAINING ON AUTHORITY ROLES AND RESPONSIBILITIES AND MANAGEMENT CON CONCURRED WITH THAT AS WELL AND INDICATED IMPLEMENTATION OF NOVEMBER.
ANY QUESTIONS ON THAT ONE, MR. HUT? DID I UNDERSTAND THAT YOU SAID THAT MORE THAN ONE CASE, THERE WAS SOMEONE THAT HAD 10 AND A HALF YEARS TO PAY OFF A CITATION? THIS PARTICULAR INDIVIDUAL'S, UM, SITUATION WAS THAT HE RECEIVED THREE CITATIONS, WENT ON A PAYMENT PLAN WHILE HE WAS ON THE PAYMENT PLAN, RECEIVED MORE CITATIONS, WHICH UPPED HIS AMOUNT DUE AND EXTENDED HIS TIME.
AND THIS CONTINUED TO HAPPEN, UH, TO WHERE HE CURRENTLY, UH, WILL BE ON A PAYMENT PLAN FOR 10 AND A HALF YEARS UNDER THE CURRENT.
SO ANY OTHER QUESTIONS ON THAT ONE? NOT SO FAR, YEAH.
MINIMAL PERFORMANCE MEASURES AND REPORTING HAVE BEEN ESTABLISHED.
THERE WERE NO REPORTS FOR SEATED ADMINISTRATION TO BE INFORMED ON MATTERS SUCH AS THE NUMBER OF PLANS, TOTAL AMOUNTS DUE OR THE LENGTH OF TIME THAT WERE CARRYING PLANS.
THE RECOMMENDATIONS WERE TO DEVELOP PERFORMANCE MEASURES AND APPROPRIATE REPORTING TO ASSIST IN MONITORING EFFICIENCIES AND EFFECTIVENESS AND MANAGEMENT.
CONCURRED AGAIN, A NOVEMBER IMPLEMENTATION DATE.
ANYTHING ON THAT ONE COMMITTEE PLEASE CONTINUE.
UH, NUMBER FOUR, APPROVAL IS LACKING ON PLAN PAYMENT PLAN TERMS. THE COMPLIANCE DIVISION MANUAL STATES THAT PLANS SHOULD BE FOR A MINIMUM OF $100 PER MONTH UNLESS ORDERED BY A JUDGE OR APPROVED BY A COMPLIANCE MANAGER.
ON REVIEW OF 132 SAMPLED PLANS, 27 OF THOSE HAD PAYMENTS THAT WERE LESS THAN A HUNDRED DOLLARS, SOMEWHERE AS LOW AS $10 PER MONTH, FOUND NO EVIDENCE OF APPROVAL.
THE MANUAL ALSO STATES THAT PAYMENT PLANS SHOULD BE NO LONGER THAN ONE YEAR UNLESS ORDERED BY A JUDGE OR APPROVED BY THE COMPLIANCE MANAGER.
AND OF THOSE SAME ONE HUNDRED AND THIRTY TWO THIRTY NINE WERE GRANTED MORE THAN ONE YEAR ALSO WITHOUT EVIDENCE OF APPROVAL.
OUR RECOMMENDATIONS WERE TO WORK WITH THE JUDGES TO REEVALUATE THE PAYMENT PLAN CRITERIA FOR MINIMUM MONTHLY PAYMENTS AND LENGTH OF TIME AND APPROVALS, TRAIN THE STAFF AND UPDATE THEIR MANUALS ACCORDINGLY, UM, AND PERFORM PERIODIC MONITORING MANAGEMENT CONCURRED AND SAID IT WOULD BE IMPLEMENTED BY NOVEMBER.
ANY QUESTIONS ON THAT ONE? AND WOULD YOU SAY THAT THERE MAY BE UH, I'M SORRY, GO
GO AHEAD MS. WILLIAMS. SHE DID, SHE DID DISTINCTIVELY.
DO YOU KNOW IT TOO WELL,
WHAT DID YOU, WHAT DID YOU FIND AS, AS A, WAS THERE ANY, WAS THERE A CONSTANT, DID THAT HAPPEN OR IS THAT BASED ON WORK, YOU KNOW, EXTENSIVE WORKLOAD OR, OR HOW DID THAT CHART MATERIALIZE? ANY, ANY FINDINGS? YEAH, SO WE, WE SELECTED JUST TO LOOK AT 132 SAMPLE SIZE BECAUSE THERE WERE SO MANY PAYMENT PLANS.
SO WE SELECTED TO LOOK AT 132.
AND IT WAS, YOU KNOW, RANDOM SELECTION.
WE TRIED TO GET, UM, A VARIETY OF CASES BEING MANAGED BY DIFFERENT STAFF MEMBERS.
UM, WHEN THEY RECEIVED THE TI THE CITATIONS BECAUSE OF C O V I D, YOU KNOW, THERE WAS A TIME PERIOD WHERE FEWER CITATIONS WERE BEING ISSUED.
SO WE LOOKED AT A NUMBER OF THINGS AND TRIED TO GET SORT OF ACROSS THE BOARD, UH, SAMPLE SIZE.
AND WE DIDN'T REALLY FIND A PATTERN OF, YOU KNOW, WHY, UH, OR IF IT WASN'T RELATED TO WHICH CLERK WAS ASSIGNED TO THE CASE FOR SURE.
IT WAS KIND OF ACROSS THE BOARD JUST
[01:00:01]
TRYING TO WORK WITH THE, THE DEFENDANTS TO SEE WHAT THEY COULD PAY.SO IT WAS MOSTLY, MOSTLY INDIVIDUAL DISCRETION AS STAFF WORK WITH SEEMED TO BE, SEEMED TO BE, EVEN THOUGH THEY HAD THE MANUAL.
UM, IF THERE WAS DISCUSSION WITH MANAGEMENT AND APPROVAL WITH MANAGEMENT, IT WASN'T DOCUMENTED.
SO WE, WE DON'T HAVE ANY WAY OF KNOWING THAT.
IF I MAY ADD, ADD SOMETHING TO THAT.
I THINK A BIT MAINLY WE COULD NOT FIND THE EVIDENCE.
IT MAY HAVE BEEN VERBALLY APPROVED, BUT WE JUST DIDN'T SEE THE EVIDENCE IN THE SYSTEM.
SO, UH, THAT, THAT WAS, I WOULD SAY, SO WE, WITHOUT ANYTHING INFORMATION, WE REALLY CAN'T FIND EXACTLY WHAT HAPPENED AND AS A RESULT, GO OVER YOUR RECOMMENDATION.
YOUR RECOMMENDATION AGAIN, TO, TO ADDRESS THIS.
'CAUSE I'M THINKING AND, AND TELL ME IF YOU THINK I'M OFF, OFF BASE GETTING IT WRONG.
IF, IF I'M, IF I'M ONE OF, IF I'M ONE OF US CUSTOMERS AND WE, WE ESSENTIALLY THERE FOR THE SAME REASON, BUT I GET, I GET ONE OPTION AND THEN THE PERSON NEXT TO ME THE SAME MAY GET ANOTHER OPTION, BUT WE ARE THERE FOR THE SAME REASON.
IS THAT AM AM I I THINK THERE'S A LOT OF VARIABLES THAT CAN OCCUR.
AGAIN, YOU KNOW, ONE PERSON MAY HAVE A FULL-TIME JOB, ANOTHER PERSON MAY YEAH.
WITHOUT KNOWING THE VARIABLES, JUST, JUST ON, ITS ON ITS SURFACE.
WITHOUT KNOWING ALL THE INTIMATE VARIABLES.
IF, IF I'M IN HERE, JOHN AND JOHN'S THERE AND I, JOHN AND I SORT OF EXCHANGE PAPERWORKS OR CONVERSATION THE SAME THING, SO I MAY GET, I MAY WALK OUT WITH ONE, ONE THING.
JOHN MAY WALK OUT WITH SOMETHING ELSE.
WE TALK ABOUT THE RECOMMENDATION HERE TO ADDRESS THIS.
SO WE RECOMMENDED THAT THE COMPLIANCE DIVISION WORK WITH THE JUDGES TO REEVALUATE THE PAYMENT PLAN CRITERIA FOR MINIMUM MONTHLY PAYMENTS, LENGTH OF TIME AND APPROVALS.
AND THEN TRAIN THE STAFF AND UPDATE THE MANUALS ACCORDINGLY.
THE MANUALS THAT ARE IN PLACE RIGHT NOW MAY HAVE BEEN CREATED WHEN THERE WERE OTHER JUDGES SITTING ON THE BENCH.
UM, SO THAT WAS KIND OF THE THOUGHT PROCESS THERE AND THEN TO PERFORM PERIODIC MONITORING.
COUNCIL, UM, I'M ASSUMING THAT THE RECOMMENDATION FOR THE EXISTING, UM, OR THE OF THE EXISTING PAYMENT PLANS THAT, UH, THAT THE RECOMMENDATION IS TO LEAVE THOSE AS IS WHAT I, GOING BACK TO CHANGE THE TERMS OF PEOPLE'S PAYMENT PLANS.
IS THAT CORRECT? I HAVE NOT HEARD ANYTHING ABOUT, I WOULD THINK THAT IS CORRECT.
UNLESS IF SOMEBODY COMES UP WITH ANOTHER THREE CITATIONS, YOU KNOW, THE 10 AND A HALF YEAR OLD GUY FOR A 10 YEAR GUY WILL GET THE YEAH.
DOLLAR MINIMUM AND EVERYTHING.
I THINK THAT'S WHY WE, OUR RECOMMENDATION IS TO WORK WITH THE JUDGES TO COME UP WITH A STANDING ORDER TO EVALUATE, AND I BELIEVE THEY HAVE BEEN WORKING ON THAT.
THAT WILL JUST BE, THIS WILL BE JUST GOING FORWARD.
WELL, ANOTHER INTERESTING REVELATION, THANK GOD FOR THE AUDIT COMMITTEE, AUDIT TEAM,
AND, UH, IT SOUNDS LIKE YOU ARE ON TOP OF ATTEMPTING TO DO TRAINING THERE WITH NOT JUST THE COMPLIANCE TEAM, BUT ALSO THE JUDGES.
UH, I GUESS I WOULD BE MORE CONCERNED ABOUT, BECAUSE AGAIN, THIS IS A LEARNING PROCESS FOR US ALSO.
I'D BE MORE CONCERNED ABOUT, ALRIGHT, WE'RE TALKING ABOUT IMPLEMENTATION TAKING PLACE IN NOVEMBER.
AT WHAT POINT DO WE GET A REPORT, AGAIN AS IT RELATES, UH, DO WE HAVE TO DO THIS AUDIT ALL OVER AGAIN? AT WHAT POINT DO WE GET A SIGN OF ORDER OF RESPONSE AS TO THESE ACTIONS BEING IMPLEMENTED AND THE IMPACT THAT IT'S HAVING? UH, CHAIRMAN, UM, GIVE CREDITS TO THE JUDGES AND KEVIN, THEY HAVE BEEN KEEPING US UP TO DATE ON, ON SOME OF THE CHANGES THAT THEY HAVE ALREADY MADE AND THEY'RE HERE, UH, TODAY.
BUT I BELIEVE, UM, IF YOU WOULD GIVE 'EM A LITTLE BIT OF TIME.
AND I, I FEEL VERY GOOD ABOUT IT.
UH, KEVIN, LIKE I SAID, HE'S BEEN ON TOP OF IT AND I KNOW BOTH JUDGES HAVE BEEN WORKING EXTREMELY WORKING HARD ON PUTTING THE STANDING ORDERS TOGETHER, LOOKING AT THE PROCESSES AND ALL OF THAT STUFF.
UM, SO IT'S UP TO THE COMMITTEE AND, AND EVERYBODY HERE KNOW HOW MUCH I LOVE KEVIN.
I MEAN, HE'S JUST IN MY HEART,
UH, BUT AT THE SAME TIME I ALSO, ONE THAT LIKES TO LOOK AT REAL DATES.
WHAT WOULD YOU, WHAT WOULD YOU THINK WOULD BE, UH, REALISTIC
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IN THE WAY OF WHAT WE COULD SEE IN THE WAY OF, BECAUSE THIS IS, IT SEEMS LIKE THERE MAY BE SOME LEGAL ISSUES HERE FOR ME ALSO, AND THAT IS, AGAIN, THE JUDGE DOES COME DOWN.HE, HE GIVES A SENTENCE, BUT IF IN FACT IT IS THE JUDGE WHO IS MAKING THE DETERMINATION ON THE PERSON BEING INDIGENT AND THEN THIS PERSON COMES BACK TIME AND TIME AGAIN, 10 YEARS, FOR EXAMPLE, UH, WHAT DO, ARE THEY GOING BACK BEFORE THE JUDGES? IS THIS WELL, THAT'S, THAT'S THE PROCESS.
THEY'RE PUTTING IT TOGETHER RIGHT NOW.
I, I WOULD SAY PERSONALLY MY OPINION, I KNOW THEY'RE GOING THROUGH AND JUDGES, UM, EVALUATING THE FULL PROCESS AS WELL.
I WOULD SAY MAYBE AT LEAST GIVE THEM TIME TILL MARCH OR, UM, OH YEAH.
TOWARDS THE MIDDLE OF NEXT YEAR YET.
I THINK THAT WOULD GIVE THEM SOME SUFFICIENT TIME BECAUSE IT'S A LOT OF PROCESSES.
THEY, TO EVALUATE AND GO TO, I KNOW THERE ARE SOME PERSONAL CHANGES OVER THERE AS WELL.
I'M JUST LOOKING FOR, UH, SOME SENSE OF A REALISTIC DATE.
BECAUSE WHAT HAPPENS IF WE JUST SAY SOMETIME IN THE FUTURE, IT DOESN'T PUT ANY REAL CRITERIA IN ANY PLACE.
SO, AND, AND AGAIN, UNDERSTANDABLE WHAT I'M HEARING HERE, SEEING HERE, AGAIN, THANK GOD FOR THE AUDIT COMMITTEE BECAUSE HERE WE'RE NOT NECESSARILY TRYING TO FIND FAULT.
WE'RE NOT TRYING TO POINT FINGERS.
WE'RE JUST TRYING TO FIND PROCESSES AND PROCEDURES TO CORRECT.
IF I CAN JUST CLARIFY ONE THING, UH, YOU KNOW, UH, THESE PROCEDURES WILL HELP TIGHTEN UP SOME THINGS, UM, AND, AND MAKE SURE, LIKE ONE OF THE THINGS THAT WAS BROUGHT OUT IS THERE, THERE COULD HAVE BEEN A MANAGER APPROVAL, IT JUST WASN'T DOCUMENTED WHAT WAS THERE AND THOSE KIND OF THINGS.
THE JUDGES DO HAVE A LOT OF LEGAL DISCRETION.
WE ARE THERE THINGS WE CAN DO BETTER.
AND THAT'S WHAT THIS PROCESS IS ABOUT.
AND MAKE SURE THE COMMITTEE UNDERSTANDS THAT AND THE JUDGES ARE COMMITTED TO DO, THEY'VE BEEN DOING IT THE WHOLE TIME.
THEY'RE GONNA DO THE RIGHT THING, THEY'RE DOING IT THE RIGHT WAY.
ARE THERE SOME PROCEDURE THINGS THAT WE CAN DO BETTER? SURE, THERE ARE.
UH, AND THAT'S WHAT THIS IS ABOUT.
BUT, BUT, BUT REST ASSURED, WE'RE FOLLOWING THE LAW, WE'RE DOING THE RIGHT THING.
UM, SOME TYPE OF DATE FOR, UH, COMING BACK TO US AND LETTING US KNOW JUST WHAT YOUR, DO YOU HAVE ANY SUGGESTIONS TOMORROW?
SO BY MARCH THINGS ARE ALREADY IN PROCESS NOW.
WE'RE NOT GONNA START IN MARCH, BUT BY PROBABLY WHATEVER THE MARCH MEETING, THIS END OF SPRING, UH, WE SHOULD HAVE THINGS CHANGED AND IMPLEMENTED AND SOME OF THOSE PROCESSES IN PLACE.
'CAUSE LIKE YOU'VE, YOU'VE HEARD ON A LOT OF THIS STUFF.
IT'S, IT'S HAVING THE, THE, THE PROCESS, THE DOCUMENTATION OF THE PROCESS IS A LOT OF WHAT WE TALK ABOUT IN ALL THE DIFFERENT AUDITS.
AND WE HAVE THINGS THAT HAVE OCCURRED THAT WE'RE GOING DOING, BUT IS THERE THAT DOCUMENTATION THAT WE CAN FOLLOW UP AND WE ACTUALLY FEEL CONFIDENT IN WHAT WE'RE DOING, WHAT WE'VE BEEN DOING IT, IT'S JUST HAVING THAT EXTRA DOCUMENTATION, THAT KIND OF THING.
SO BY MARCH, I THINK THE TEAM FEELS LIKE WE COULD HAVE THINGS IN PLACE AND, AND, UH, AND AGAIN, WE'RE, WE'RE, WE'RE FINE LEGALLY.
IT'S JUST, YOU KNOW, IMPROVING ON A FEW THINGS.
AND THANK YOU SO VERY MUCH FOR THE REPORT.
I STILL HAVE A COUPLE MORE TO YOU GOT.
OH, YOU STILL GOT
ALRIGHT, THESE ARE GONNA RUN REALLY QUICK THOUGH.
AND EVEN TOUCH ON SOME OF THE THINGS THAT WE'VE ALREADY TALKED ABOUT.
UH, SO I'M TRYING TO GET IT
UH, SO WHEN A DEFENDANT RECEIVES TWO OR MORE CITATIONS, EACH CITATION HAS ITS OWN CASE FILE AND MAY BE HANDLED SEPARATELY.
IF A DEFENDANT ENTERS INTO A PAYMENT PLAN FOR MULTIPLE CITATIONS, THE PAYMENT PLAN, APPLICATION AND AGREEMENT MUST BE SCANNED OR LINKED TO EACH CASE FILE.
FOR THE 132 PAYMENT PLANS, WE LOOKED AT, UH, CONSISTED OF 376 CITATIONS.
DATA ACCURACY AND COMPLETENESS COULD NOT BE VERIFIED SINCE NINE CASE FILES WERE NOT LOCATED AT ALL.
IN ADDITION, THERE WERE 25 DOCUMENTS NOT SCANNED OR LINKED TO THE INDIVIDUAL CASE FILES IN THE SYSTEM DURING OUR REVIEW.
68 PLAN END DATES IN THE SYSTEM DID NOT MATCH THE PLAN END DATE ON THE PAYMENT PLAN AGREEMENT.
THERE WERE ALSO 18 PAYMENT AMOUNTS IN THE SYSTEM THAT DID NOT MATCH THE PAYMENT AMOUNTS ON THE PAYMENT PLAN AGREEMENT.
AND FINALLY, THERE WERE INSTANCES WHERE A NOTE WAS TYPED AT THE TOP OF THE AGREEMENT AS TO THE PAYMENT AMOUNT, WHICH DID NOT MATCH THE PAYMENT AMOUNT IN THE BODY OF THE AGREEMENT.
SO OUR RECOMMENDATION WAS TO ENSURE ALL DOCUMENTS ARE SCANNED AND LINKED TO THE CASE FILES AND CONTINUOUSLY MONITOR INFORMATION AS THINGS CHANGE OR PROGRESS.
WE ALSO RECOMMENDED WORKING WITH IT TO DETERMINE IF THE SYSTEM COULD BE ENHANCED
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SO THAT REVISIONS COULD OCCUR SIMULTANEOUSLY IN THE SYSTEM AND IN THE AGREEMENT MANAGEMENT.CONCURRED AGAIN, IMPLEMENTATION OF NOVEMBER.
ANY QUESTIONS ON THAT ONE? OKAY.
SO OBSERVATION NUMBER SIX, LIMITED ELECTRONIC PROCESSES.
SO THERE ARE A FAIR NUMBER OF PROCESSES WHICH ARE MANUAL IN NATURE.
UH, IN THE DIVISION, AN APPLICATION FOR A PAYMENT PLAN MUST BE PRINTED AND MANUALLY FILLED OUT AND BROUGHT TO COMPLIANCE TO SUBMIT IN PERSON.
THERE IS NO ONLINE PORTAL AVAILABLE FOR DEFENDANTS TO APPLY FOR A PAYMENT PLAN.
THERE'S INCONSISTENCY WHEN REVISING A PAYMENT PLAN.
SOMETIMES A NEW APPLICATION IS FILLED OUT AND SOMETIMES THE OLD APPLICATION IS REVIEWED, REUSED WITH CROSSING OUT OF INFORMATION DURING A REVIEW OF OTHER MUNICIPAL COURT WEBSITES.
IA IDENTIFIED BEST PRACTICE, BEST PRACTICES AND PROCESSES THAT COULD IMPROVE EFFICIENCY AND EFFECTIVENESS FOR THE DEFENDANT'S AND FOR STAFF AND FOR EXAMPLE, RICHARDSON, FRISCO, MESQUITE AND DENTON HAVE PLATFORMS THAT ALLOW DEFENDANTS TO SUBMIT REQUESTS OR DOCUMENTS ONLINE.
THEY CAN REVIEW THE STATUS OF THEIR CASES OR EVEN RESOLVE IT.
UM, WE ALSO IDENTIFIED, UH, THAT MOST OTHER MUNICIPALITIES HAVE TWO SEPARATE APPLICATION OPTIONS, SUBJECT TO THE DEFENDANT'S RESOURCES AND ABILITY TO PAY.
THE WEBSITES HAVE COMPREHENSIVE GUIDANCE FOR DEFENDANTS TO MORE EASILY NAVIGATE AND LISTS PAYMENT PLAN CRITERIA SO THAT DEFENDANTS UNDERSTAND THE EXPECTATIONS.
WE RECOMMENDED THAT APPLICATIONS FOR A PAYMENT PLAN BE PUT ON THE WEBSITE AND ALTERNATIVELY, A NEW APPLICATION SHOULD BE FILLED OUT IF A DEFENDANT WISHES TO REVISE THEIR PLAN.
WE SUGGESTED, UH, DEVELOPING A COMPREHENSIVE GUIDE TO ASSIST DEFENDANTS IN RESOLVING THEIR CITATIONS AND TO DEVELOP OR ENHANCE A USER-FRIENDLY WEB PORTAL FOR DEFENDANTS TO ELECTRONICALLY MANAGE THEIR CASES MORE EFFICIENTLY AND CONVENIENTLY, MANAGEMENT CONCURRED AND EXPECTS TO HAVE THIS IMPLEMENTED BY DECEMBER.
ANY QUESTIONS ON THAT ONE COMMITTEE? OKAY.
RECEIVED NUMBER SEVEN, TRANSACTION REVERSALS AND LIMITED SEGREGATION OF DUTIES.
UM, WHEN COMPLIANCE RECEIVES A PAYMENT, IT IS DETERMINED TO BE, AND IT IS DETERMINED TO BE PARTIAL OR INELIGIBLE FOR ACCEPTANCE.
THE PAYMENT IS RECORDED IN THE SYSTEM THEN REVERSED.
THE COMPLIANCE MANUAL STATES THAT REVERSING PAYMENTS FINE REDUCTIONS OR DISMISSAL TRANSACTIONS SHOULD ONLY BE DONE BY A LEAD OR SUPERVISOR AND MUST INCLUDE A REASON FOR THE REVERSAL AS WELL AS DOCUMENTATION OF WHO PERFORMED THE REVERSAL.
WE IDENTIFIED 16 REVERSALS OF THE 132 PLANS, SIX OF WHICH DID NOT HAVE PROPER DOCUMENTATION AS TO THE REASON THE PAYMENT WAS REVERSED.
WE RECOMMENDED WORKING WITH THE JUDGES TO DEVELOP WRITTEN CRITERIA FOR WHEN PARTIAL PAYMENTS MAY BE ACCEPTED AND TO TRAIN STAFF TO CONSISTENTLY RECORD THE REASONS FOR REVERSALS AND INCLUDE SUPPORTING DOCUMENTATION IN THE CASE FILE MANAGEMENT CONCURRED AND WILL IMPLEMENT BY NOVEMBER.
AND THE FINAL ONE IS PERSONALLY IDENTIFIABLE INFORMATION SECURITY.
WE REVIEWED THEIR TRAINING MANUALS, THEIR INTERNAL TRAINING MANUALS, UM, AND FOUND THAT THERE WERE SCREENSHOTS OF ACTUAL CASES, UH, THAT INCLUDED THE INFORMATION THAT YOU SEE HERE, DATES OF BIRTH, UH, JUST ALL SORTS OF INFORMATION THAT COULD BE PUT TOGETHER.
AND OUR RECOMMENDATION WAS TO REMOVE OR REDACT THE INFORMATION AND MAN MANAGEMENT IMMEDIATELY CORRECTED THIS.
SO ANY FINAL QUESTIONS ON ANY OF THIS? AMAN WILLIAMS? THANK YOU FOR THAT.
I DON'T, I DIRECT JUST A COUPLE OF QUESTIONS AND I GUESS THIS IS TO MR. CITY MANAGER.
JUST THOUGHT I'M JUST, UH, BRIDGING SOMETHING.
UM, QUESTION, WOULD YOU PUT OBSERVATION SIX BACK UP THERE AGAIN? SCREEN SIX.
JUST, JUST MOST, THIS IS MOSTLY A CURIOSITY QUESTIONS.
IT'S BEEN A WHILE SINCE I'VE BEEN OVER THE COURT.
DOES, DOES CUSTOMERS, DO THEY HAVE CAPABILITY ONCE THEY HAVE SETTLED UP OVER THERE OF OBTAINING, OF, OF, OF PAYING, MAKING PAYMENTS IN THE, IN THE BUILDING RATHER THAN OVER THE COUNTER OR ACCESSING CASH OR ANYTHING LIKE THAT IN THAT BUILDING OFF THERE?
WE DON'T HAVE LIKE ATMS OR ANYTHING LIKE THAT.
I KEVIN, I DIDN'T SEE YOU SITTING OVER THERE.
I DIDN'T THINK YOU, I DIDN'T THINK YOU, UH, YOU, YOU, UH, YOU HAD THAT
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MY, UH, OTHER ONE IS ON THE, THE LAST ONE I THINK IS OBSERVATION EIGHT, WHERE YOU HAD THE PERSON IDENTIFIER, PERSON IDENTIFYING INFORMATION.WOULD YOU TALK ABOUT THE RECOMMENDATION IS THAT, IS THAT, IS THAT GOING TO BE A, A PURGING PROCESS OR WE'RE GONNA START FROM HERE FORWARD, UH, PART THAT INFORMATION, PARTICULARLY WITH CUSTOMERS IDENTIFYING THE INFORMATION.
HOW WOULD YOU RESTATE YOUR RECOMMENDATION AS IT RELATES TO EXISTING INFORMATION, TRAINING INFORMATION OR PERSONAL INFORMATION FILE? HOW IS THAT GOING TO BE HANDLED MOVING FORWARD? OR IS THAT GONNA BE STATUS QUO AND THEN WE'RE GONNA MOVE FORWARD? CAN YOU EXPLAIN THAT? SURE.
SO, UH, AND JUST TO, TO MAKE SURE WE'RE CLEAR, THE, THE, IT WAS AN INTERNAL TRAINING MANUAL THAT WE REVIEWED THAT HAD THE PERSONALLY IDENTIFIABLE INFORMATION.
SO IT'S SUBJECT TO, UM, BEING REVIEWED.
IF A PUBLIC INFORMATION REQUEST WERE SUBMITTED, IT COULD, UH, GET OUT THERE.
THAT'S WHY I ASKED THE QUESTION.
AND SO WE DID RECOMMEND THAT THEY REDACT THAT INFORMATION, YOU KNOW, THE NAMES, THE ADDRESSES, THE PHONE NUMBERS, THE DATES OF BIRTH, ALL OF THAT JUST REDACTED FROM THE TRAINING MANUAL ENTIRELY.
UH, WHICH THEY IMMEDIATELY DID.
I, I, I GUESS THE, THE QUESTION THAT I HAVE, IT'S, FIRST OF ALL, I WANT TO MAKE AN OBSERVATION AS I'M LISTENING TO ALL OF IT.
THERE'S NO DOUBT THAT OUR JUDGES ON A TREMENDOUS, UH, WORKLOAD.
THERE'S NO, YOU KNOW, THEY, IT'S COMING AT THEM AT FROM ALL ANGLES.
AND, UH, MOST OF WHAT I'M SEEING HERE SEEMS TO BE, UH, SOPS SEEMS TO BE POLICY AND PROCEDURE.
AND IS THERE AN OFFICE MANAGER? IS THERE SOMEONE THAT HANDLES ALL OF THAT TYPE OF STUFF? AND 'CAUSE I HEAR YOU SAYING WE, WE HAVE RE-REFERRED THIS TO MANAGEMENT.
IS THAT MITCH, THAT YOU'RE SAYING THAT YOU REFERRED IT TO
BUT PAIGE HAD STAFF, UH, THAT IS HERE, SO, OKAY.
SHE AND HER MANAGEMENT TEAM REVIEW THIS ON A, ON A DAILY BASIS.
AND, AND I THINK YOU'RE RIGHT.
WHAT, WHAT I THINK A LOT OF WHAT WE'RE SEEING THROUGH THIS AUDITS, WHAT WE SEE A LOT, WE HAVE A LOT OF MANUAL PROCESSES.
WE DO HAVE A DATABASE AT COURT THAT WE USE.
WE HAVE SOME LONG-TERM PLANS TO UPDATE THAT.
BUT IN THE INTERIM, WE ACTUALLY HAVE A PROGRAMMER THAT CAN WORK WITH THE EXISTING SOFTWARE TO MAKE IT A LITTLE BIT BETTER TO DEAL WITH SOME OF THE THINGS THAT WE'RE TALKING ABOUT HERE.
SO A LOT OF THE THINGS THAT WE'VE BEEN TALKING ABOUT HERE IS, IS THOSE MANUAL PROCESS REDACTIONS OF PERSONAL IDENTIFYING INFORMATION.
JUST SO YOU KNOW, IF WE GET A REQUEST FOR A TRAINING DOCUMENT THAT HAS SOMETHING IN THERE THAT MAY NOT SHOULD BE IN THERE, WE RUN THAT THROUGH THE ATTORNEY'S OFFICE AND WE REDACT THINGS ALL THE TIME, BUT WE GET, WE GET COUNTLESS OPEN RECORDS REQUESTS FOR CERTAIN DOCUMENTS WHERE WE WILL REDACT ANY INFORMATION THAT WE'RE NOT ALLOWED TO DO THAT.
IS IT BEST NOT TO HAVE IT IN THERE TO HAVE EXAMPLES, YOU KNOW, JOHN DOE, JANE DOE, THAT KIND OF THING.
AND, AND THAT'S WHAT WE'LL DO WITH THIS.
BUT A LOT OF THIS PROCESS IS MANUAL PROCESSES THAT OVER THE YEAR THAT HAVE COME ALONG AND, AND EMPLOYEES KNOW THE PRACTICE AND KNOW WHAT TO DO AND MAY TALK TO A MANAGER OR A SUPERVISOR TO GET APPROVAL.
BUT WE DON'T HAVE THE DOCUMENTATION WHEN YOU EVENTUALLY AUTOMATE ALL OF THAT.
AND WE'LL BE ABLE TO, TO GET BETTER WITH THE SYSTEM WE HAVE ONCE WE GO TO A NEW SYSTEM.
IT'LL BE A COUPLE OF YEARS BEFORE WE GET THERE, BUT ONCE WE GO TO A NEW SYSTEM, SOME OF THE NEW MORE MODERN SYSTEMS HAVE A LOT OF THIS AUTOMATED AND BUILT IN ALREADY WHERE YOU DON'T HAVE TO DO THE MANUAL PROCESSES.
AND, UH, IT SEEMED LIKE THAT LAST COMMENT KIND OF GOT A YEAH.
UH, LET ME JUST SAY THIS TO YOU.
REMEMBER, THIS IS MY FIRST MEETING AND SOME OF THE QUESTIONS THAT I MAY ASK MAY NOT EVEN BE RELEVANT, BUT IT'S A LEARNING PROCESS FOR ME ALSO.
SO, UH, GIVE ME A LITTLE GRACE AND A FEW MEETING, A FEW MEETINGS AND I BELIEVE THAT WE WILL, UH, KIND OF CATCH UP AS TO WHAT'S TAKING PLACE HERE.
ALRIGHT, ANY OTHER COMMENTS? ANY OTHER SUGGESTIONS? QUI? ALRIGHT.
THANK YOU SO VERY MUCH LADIES.
NOW WE FINISHED WITH THAT ONE.
ALL WE'RE DONE WITH, WE WITH THAT AUDIT.
I WANNA MOVE ON NOW TO THE
AND THAT'S, UH, C I P REIMBURSEMENT AUDIT FOLLOW
[01:20:01]
UP, CORRECT? CORRECT.NOW, UH, I'M LOOKING AT OUR CLOCK HERE IF WE'RE AT THREE 50.
EVERYBODY'S MOVING RIGHT ALONG.
ALRIGHT, THANK YOU SO VERY MUCH.
UH, I'LL QUICKLY GO OVER THIS.
THIS ONE YOU'LL, YOU'LL LOVE SOME OF THE, UH, THERE'S A LOT OF GOOD NEWS HERE.
UM, UH, AND COUNCILMAN WILLIAMS, I'M SURE HE REMEMBERS THIS.
BACK IN 2019, WE DID AN AUDIT ON THE CAPITAL IMPROVEMENT PROGRAM, REBATE, UH, UH, NOT REBATE, I'M SORRY, REIMBURSEMENT AUDIT, FOLLOW UP.
AND, UM, AS YOU'RE AWARE, WE GET FUNDING THROUGH VARIOUS AGENCIES, UH, DALLAS COUNTY, TEXT, TEXT DOT, UM, DOT, UH, YOU NAME IT.
UH, ALSO, YOU KNOW, WE GET INTO DRAINAGE PARTICIPATION PROGRAM, UM, SIDEWALK PARTICIPATION PROGRAMS, UM, YOU KNOW, DEVELOPER PARTICIPATION PROGRAM.
SO WE COLLECTIVELY LOOKED AT IT AS A WHOLE.
WHEN WE DID THE AUDIT, UH, WE, WE DID HAVE SOME OPPORTUNITIES FOR IMPROVEMENT.
UH, BUT I'M EXTREMELY HAPPY TO REPORT THAT, UH, HOW MUCH MANAGEMENT TOOK THAT TO HEART AND WHAT THEY IMPLEMENTED IT.
AND I'M GONNA MENTION A FEW DEPARTMENTS HERE 'CAUSE IT'S, IT'S, IT'S IMPORTANT TO RECOGNIZE THEM.
MANY TIMES WE COME UP WITH THESE RECOMMENDATIONS, UH, BECAUSE AS AUDITORS, WE LOOK FOR RISK.
WE LOOK FOR OPPORTUNITIES FOR IMPROVEMENT.
AT THE SAME TIME, WE ALSO WANNA UNDERSTAND, UH, AND, AND REALIZE THAT WE HAVE LIMITED RESOURCES.
I MEAN, HE, HE WOULD LOVE TO HAVE A NEW COURT SYSTEM TOMORROW, BUT THERE'S NOT ENOUGH FUNDING FOR IT, RIGHT? BUT OUR GOAL IS TO BRING THE RISK AND THE OPPORTUNITIES FOR IMPROVEMENT FOR HIM AND HIS STAFF TO PRIORITIZE IT.
UH, SO WE DO UNDERSTAND THAT THERE ARE RESOURCE LIMITATIONS.
THAT COULD BE HUMAN CAPITAL, THAT COULD BE SYSTEMS, THAT COULD BE A LOT OF THINGS.
BUT, UH, YOU KNOW, IN SOME CASES, LIKE, LIKE I SAID, YOU HAVE TO PRIORITIZE IT.
I DO WANNA THANK, UH, THE FINANCE DEPARTMENT FOR TAKING, ESPECIALLY MATT AND CATHERINE FOR TAKING CHARGE, UH, ON THIS ONE.
UH, AS WELL AS ALL THE OTHER DEPARTMENTS THAT WORK TOWARDS IT.
MICHAEL AND HIS TEAM PLAYED A SIGNIFICANT ROLE BECAUSE A LOT OF THESE FINDINGS WENT TO THEM.
PARKS DEPARTMENT, REVENUE RECOVERY DEPARTMENT, TRANSPORTATION STREET DEPARTMENT.
THIS WAS A COMPREHENSIVE CITYWIDE AUDIT.
LIKE I SAID, I, I'M HAPPY TO REPORT THAT EVERYONE WORKED TOGETHER.
UM, SHE ALSO, UM, PUT A LOT OF EMPHASIS ON GETTING THIS DONE.
WE HAD 22 RECOMMENDATIONS AND PATRICIA IS GONNA QUICKLY GO OVER, WE WON'T TAKE TOO MUCH TIME, UH, ON THIS ONE.
WE'LL QUICKLY GO OVER WHERE WE ARE TODAY WITH THAT.
UH, YOU, UM, HOPEFULLY THIS WILL BE VERY SATISFACTORY.
UH, AND THIS IS A GOOD, GOOD FOLLOW UP THAT WE DID.
UH, SO I'M GOING TO REFER BACK TO THE ORIGINAL AUDIT, UH, HIGH LEVEL, JUST SO THAT EVERYBODY UNDERSTANDS, UH, WHERE WE ARE TODAY VERSUS WHERE WE WERE THEN.
SO THE CITY OF GARLAND, UH, HAS A CAPITAL IMPROVEMENT PROGRAM, WHICH IS A LISTING OF PLANNED CAPITAL PROJECTS, INCLUDING EXPECTED COSTS AND ANTICIPATED FUNDING SOURCES.
THE FUNDING SOURCES CAN COME FROM THIRD PARTIES SUCH AS TXDOT, AMERICAN RESCUE PLAN, DALLAS COUNTY, AND DEVELOPERS.
UH, SO YOU'LL SEE ON THE SCREEN, THIS IS A, A SCREENSHOT OF EACH PROJECT, UH, PAGE IN THE C I P BOOK.
AND YOU CAN SEE HERE THAT, UH, TXDOT ON THIS PARTICULAR ONE COMMITTED A LITTLE OVER A MILLION DOLLARS IN DALLAS COUNTY, COMMITTED, UH, A LITTLE OVER $364,000, UM, FOR A TOTAL OF 1.4.
AND AT THE TIME, THE CITY HAD EXPENDED 773,000, BUT HAD NOT INVOICED THE COUNTY OR THE STATE FOR ANY OF THAT.
UPON FOLLOW-UP, WELL, OUR RECOMMENDATIONS AT THE TIME WERE TO INITIATE INVOICING.
YOU CAN GO AHEAD AND TAKE THAT ONE DOWN.
UM, INVOICING THE THIRD PARTIES TO OBTAIN THE REIMBURSEMENT.
WE REVIEWED THE FOUR PROJECTS FROM THE ORIGINAL AUDIT, PLUS THREE ADDITIONAL 2022 PROJECTS, AND FOUND THAT ALL PROJECTS HAD BEEN TIMELY, INVOICE AND PAYMENTS WERE RECEIVED.
FINANCE COORDINATED WITH THE RESPECTIVE DEPARTMENTS TO CREATE A WRITTEN PROCESS FOR INVOICING, COLLECTION, AND MONITORING OF THIRD PARTY REIMBURSEMENTS.
AND WE, UH, RECOMMENDED CONSIDERING CENTRALIZING THE INVOICING COLLECTION EFFORTS WITH FINANCE, WHICH WAS ALSO IMPLEMENTED.
UH, FINANCE HAS OVERSIGHT FOR THAT.
SO ALL THREE OF THOSE RECOMMENDATIONS WERE IMPLEMENTED FOR NUMBER TWO, WHICH IS THE DRAINAGE PARTICIPATION PROGRAM.
UH, GENERALLY PROPERTY OWNERS INFORM THE CITY ABOUT DRAINAGE ISSUES THAT ARE OCCURRING
[01:25:01]
ON THEIR PROPERTY.THE CITY OBTAINS AN ESTIMATE OF COSTS AND ENTERS INTO AN AGREEMENT WITH THE PROPERTY OWNER TO SHARE THE COSTS.
OWNERS MAY PAY IN A SINGLE LUMP SUM OR ENTER INTO A PAYMENT PLAN WITH THE CITY.
DURING THE INITIAL AUDIT, WE FOUND NINE PROJECTS THAT THE CITY HAD NOT BEEN REIMBURSED FOR, PAYMENT PLANS HAD NOT BEEN ENTERED INTO, AND LIENS HAD NOT BEEN PLACED ON SOME OF THE PROJECTS AT THE TIME.
THE AGREEMENTS WERE KEPT WITHIN THE DEPARTMENT AT THAT TIME.
WE RECOMMENDED THAT INVOICES BE PROCESSED ON THOSE WERE REIMBURSEMENT WAS DUE, AND IF NOT PAID TIMELY PLACE A LIEN ON THE PROPERTY.
IA FOUND THAT THREE HAD BEEN PAID IN FULL.
THREE HAVE ENTERED INTO PAYMENT PLANS AND ARE PAYING, AND THE REMAINING THREE ARE STILL UNPAID.
BUT FINANCE AND DEPARTMENT B ARE WORKING WITH THE CITY ATTORNEY'S OFFICE TO DETERMINE APPROPRIATE NEXT STEPS.
SO THIS IS CONSIDERED PARTIALLY IMPLEMENTED.
THERE WAS ALSO A SEGREGATION OF DUTIES ISSUE AT THAT TIME.
SINCE ONE PERSON CREATED THE ESTIMATE, PREPARED THE INVOICES, COLLECTED THE PAYMENTS, ENTERED THE PAYMENTS INTO THE SYSTEM, AND CREATED THE BANK DEPOSITS.
HOWEVER, SOME OF THE PAYMENTS WERE NOT EVER RECORDED IN THE C R M SYSTEM.
I A RECOMMENDED DIVIDING DUTIES AMONG STAFF SO THAT NO ONE INDIVIDUAL CONTROLLED ALL KEY ASPECTS OF THE PROCESS.
ON FOLLOW UP, I A DETERMINED THAT FINANCE IS NOW RESPONSIBLE FOR INVOICING AND COLLECTING THIRD PARTY REIMBURSEMENTS FOR THE DRAINAGE PROJECTS.
WE ALSO RECOMMENDED THAT DEPARTMENT B DEVELOP POLICIES AND PROCEDURES WHICH OUTLINE ROLES AND RESPONSIBILITIES THROUGHOUT THE LIFECYCLE.
DEPARTMENT B WORKED WITH FINANCE AND DEPARTMENT D TO DISCUSS THEIR RESPECTIVE RULES, BUT WRITTEN POLICIES AND PROCEDURES HAVE NOT YET BEEN DETAILED FOR THE ENTIRE LIFECYCLE.
SO THEY'VE GOT SOME THINGS WRITTEN, BUT JUST NOT THE ENTIRE LIFECYCLE.
SO THIS IS CONSIDERED PARTIALLY IMPLEMENTED IN THE INITIAL AUDIT.
I ALSO DETERMINED THAT THE PARTICIPATION AGREEMENT DID NOT INCLUDE LANGUAGE REGARDING IF ACTUAL COSTS WERE GREATER THAN THE ESTIMATED COSTS OR THAT A LIEN WOULD BE FILED IN THE EVENT THE CUSTOMER DIDN'T PAY.
WE RECOMMENDED THAT DEPARTMENT B AMEND THE AGREEMENT TEMPLATE TO INCLUDE THOSE TWO ITEMS. AND THIS HAS BEEN ACCOMPLISHED.
I E RECOMMENDED WORKING WITH IT TO IMPLEMENT USE OF WORK ORDER SYSTEM TO BETTER MANAGE PROJECTS IN THE C R E C R M SYSTEM.
HOWEVER, DEPARTMENTS HAVE EXPERIENCED SYSTEM LIMITATIONS WITH C R M.
SO THE CITY IS IN THE PROCESS OF TRANSITIONING TO OTHER SOFTWARE.
WE FINALLY, ON THIS ONE, WE RECOMMENDED DEPARTMENT B USE THE CITY'S DOCUMENT MANAGEMENT SYSTEM TO ELECTRONICALLY MAINTAIN PROJECT AGREEMENTS OUTSIDE OF THE DEPARTMENT SO THAT ALL DEPARTMENTS WOULD HAVE ACCESS.
THIS HAS BEEN ALSO FULLY IMPLEMENTED FOR THE SIDEWALK PARTICIPATION PROGRAM, WHERE PROPERTY OWNERS PAY 50% OF THE REAR PRAYER COSTS OF SIDEWALKS IN FRONT OF THEIR HOMES, AND THE CITY PAYS THE OTHER 50%.
THE CITY OBTAINS AN ESTIMATE OF THE COST AND THE PROPERTY OWNER PAYS THEIR SHARE EITHER AGAIN IN LUMP SUM OR ENTERS INTO A PAYMENT PLAN WITH THE CITY.
DURING THE INITIAL AUDIT, I FOUND THAT ONE PERSON CREATES THE ESTIMATE, SENDS THE INVOICE, RECEIVES THE PAYMENT, ENTERS THE PAYMENT IN THE C R C R M SYSTEM, AND CREATES THE BANK DEPOSIT, CREATING A SEGREGATION OF DUTIES ISSUE.
WE RECOMMENDED DIVIDING THE DUTIES AMONG STAFF SINCE THE INITIAL AUDIT.
DEPARTMENT B IS NO LONGER MANAGING THE SIDEWALK PARTICIPATION, IT IS NOW MANAGED BETWEEN DEPARTMENT D AND DEPARTMENT F.
AND THE DUTIES HAVE BEEN SEGREGATED AND TRANSFERRED, AND THAT IS FULLY IMPLEMENTED.
UM, AT THE TIME OF THE INITIAL AUDIT, WE ALSO RECOMMENDED THAT DEPARTMENT B WORK WITH FINANCE TO DEVELOP AND IMPLEMENT AN INVOICING AND COLLECTION PROCESS FOR SIDEWALK PARTICIPATION.
AGAIN, ONCE THIS WAS TRANSFERRED, DEPARTMENT D WORKED WITH FINANCE TO DEVELOP AND IMPLEMENT AND VOICING AND COLLECTION, AS WELL AS CREATED POLICIES AND PROCEDURES OUTLINING ROLES AND RESPONSIBILITIES.
THE INITIAL RECOMMENDATION WAS TO ALSO ENSURE INVOICES ARE PROCESSED WITH 50% OF THE ACTUAL COST INCURRED RATHER THAN THE ESTIMATED COSTS.
HOWEVER, INVOICING IS STILL OCCURRING AT THE ESTIMATED COST.
WE OBSERVED THAT THE VENDOR'S INVOICES DO NOT INCLUDE ACTUAL COSTS ASSOCIATED WITH EACH PROPERTY OWNER'S ADDRESS AND INVOICES CANNOT BE RECONCILED WITH DEPARTMENT RECORDS.
DEPARTMENT F ALSO AGREED TO WORK WITH THE VENDOR TO PROVIDE A LISTING OF PARTICIPANT ADDRESSES WITH EACH MONTHLY INVOICE.
THE SIDEWALK PROGRAM'S CURRENTLY BEING EVALUATED BY ADMINISTRATION, WHICH MAY RESULT IN POLICY OR ORDINANCE CHANGES AS A RESULT OF THE CHALLENGES RELATED TO ESTIMATED COSTS VERSUS ACTUAL COSTS.
UH, WE RECOMMENDED UPDATING THE PARTICIPATION AGREEMENT AND THE CITY ORDINANCE TO ADDRESS PROJECTS THAT ARE 100% THE RESPONSIBILITY OF THE CITY.
SINCE THAT TIME, THE CITY ORDINANCE HAS BEEN UPDATED TO REFLECT THAT THE CITY DOES NO, DOES NO LONGER ABSORBS 100% OF THE SIDEWALK PROJECTS.
AS SUCH, IT'S NO LONGER NECESSARY TO UPDATE THE PARTICIPATION AGREEMENT.
[01:30:01]
WE ALSO RECOMMENDED PERFORMING A PERIODIC RECONCILIATION OF WORK ORDERS TO PAYMENTS RECEIVED IN ORDER TO ENSURE PAYMENTS ARE RECEIVED TIMELY AND FOR THE CORRECT AMOUNT.ONCE RESPONSIBILITIES WERE TRANSFERRED FROM DEPARTMENT B TWO DEPARTMENTS, D AND F ONE INDIVIDUAL IN DEPARTMENT D HAS BEEN PERFORMING THE DUTIES DUE TO RESOURCE LIMITATIONS.
MANAGEMENT ASSURED IA THAT THERE IS A PAYMENT TRACKING MECHANISM IN PLACE, BUT WILL IMPLEMENT MONTHLY MANAGEMENT REVIEW AND RECONCILIATION BETWEEN DEPARTMENT D AND DEPARTMENT F RECORDS.
SO THIS IS PARTIALLY IMPLEMENTED.
UM, WE RECOMMENDED WORKING WITH IT TO USE THE FULL FUNCTIONALITY OF THE C R M SYSTEM.
AS STATED PREVIOUSLY, DEPARTMENTS HAVE EXPERIENCED LIMITATIONS WITH C R M AND ARE IN THE PROCESS OF TRANSITIONING TO OTHER SOFTWARE.
WITH REGARD TO THE DEVELOPER PARTICIP PARTICIPATION AGREEMENTS.
FOR SOME C I P PROJECTS, DEVELOPERS MAY ENTER INTO AN AGREEMENT WITH THE CITY TO REIMBURSE SPECIFIC AMOUNTS FOR EXPENDITURES.
COMMUNICATIONS HAVE LARGELY BEEN THROUGH EMAILS, BUT DID NOT CONTAIN SOME ELEMENTS OF A MORE FORMALIZED AGREEMENT AT THE TIME.
RECOMMENDED THAT DEPARTMENT E SHOULD WORK WITH THE CITY ATTORNEY'S OFFICE TO DEVELOP AND IMPLEMENT A LETTER AGREEMENT FOR USE ON SUCH PROJECTS.
ON FOLLOW-UP, I REVIEWED AND VERIFIED THAT THIS WAS DONE, THAT'S FULLY IMPLEMENTED.
UM, ALSO IN THE INITIAL, UH, AUDIT, WE RECOMMENDED CENTRALIZATION OF C I P REIMBURSEMENT PROCESS.
WE LEARNED AT THAT TIME THAT EACH DEPARTMENT WAS INDEPENDENTLY MANAGING THE INVOICING AND COLLECTION OF THIRD PARTY FUNDS FOR C I P PROJECTS.
WE RECOMMENDED CENTRALIZING THE PROCESSES AND ACCURATELY AND TIMELY INVOICING AND COLLECTION.
IA ALSO RECOMMENDED UPDATING THE CITY'S ACCOUNTING AND C I P DIRECTIVES TO ADD TO ADDRESS CENTRALIZATION ROLES AND RESPONSIBILITIES AND FREQUENCY OF INVOICING.
UPON FOLLOW UP, IA FOUND THAT THE PROCESS HAS BEEN CENTRALIZED TO THE FINANCE DEPARTMENT AND THAT BOTH DIRECTIVES HAVE BEEN UPDATED TO NOW BE STANDARD OPERATING PROCEDURES.
IT'S FULLY IMPLEMENTED FOR JOB COSTS.
THE CITY TRACKS THE COSTS OF C I P PROJECTS TO SPECIFIC FUNDS WHERE MONEY HAS BEEN APPROVED.
THERE MAY HAVE BEEN MORE THAN ONE PROJECT USING A SINGLE FUND.
SO JOB COST CODES SHOULD BE ASSIGNED.
HOWEVER, IN THE INITIAL AUDIT, I OBSERVED THAT THE JOB COST CODES WERE NOT ALWAYS BEING USED AND COSTS WERE NOT SEPARATED.
WE RECOMMENDED REVIEWING THE PROCESS TO DETERMINE THE BEST WAY TO TRACK AND MANAGE PROJECT EXPENSES.
FINANCE IS NOW IN THE PROCESS OF TRANSITIONING TO NEW SOFTWARE, WHICH WILL HAVE MORE APPROPRIATE JOB COSTING CAPABILITIES.
UH, FINALLY IN THE INITIAL AUDIT FOR CONTRACT RETENTION, THE CITY DID NOT HAVE A CENTRALIZED CONTRACT MANAGEMENT SYSTEM.
WE WERE AT THAT TIME, WE WERE ONLY ABLE TO LOCATE THREE OUTTA THE 10 CONTRACTS THAT HAD THIRD PARTY FUNDING.
I RECOMMENDED DEVELOPING A CENTRALIZED CONTRACT MANAGEMENT FUNCTION TO MANAGE, MONITOR, AND ADMINISTER CONTRACT TERMS AND CONDITIONS.
THE CITY SUBSEQUENTLY PURCHASED A CONTRACT MANAGEMENT SYSTEM AND THIS HAS BEEN FULLY IMPLEMENTED.
SO IN CONCLUSION OF THE 22 RECOMMENDATIONS THAT WE HAD FROM THE ORIGINAL AUDIT, 15 HAVE BEEN FULLY IMPLEMENTED, THREE HAVE BEEN PARTIALLY IMPLEMENTED, AND FOUR ARE IN PROGRESS.
ANY QUESTIONS? THANK YOU SO VERY MUCH.
WELL, I THINK WE'RE DONE WITH THE, ALL THE AUDITS.
UH, SO I'LL MOVE TO THE FISCAL ACTUALLY, I'M SORRY.
UH, BEFORE THAT I THINK IT'S MITCH'S UPDATE.
LATE LAST YEAR, THERE WAS AN AUDIT TAKE HOME VEHICLE AUDIT.
AND I THINK SOME OF YOU, I KNOW COUNCIL MEMBER WILLIAMS I THINK WAS STILL ON THE COMMITTEE WHEN WE DID THAT.
A NUMBER OF RECOMMENDATIONS HAVE BEEN MADE.
WE'RE STILL TWEAKING, FINALIZING THE NEW DIRECTIVE, BUT IT WILL GO INTO PLACE.
WE ANTICIPATE AT THE BEGINNING OF THE NEW BUDGET YEAR, OCTOBER 1ST, A A LOT OF THE ISSUES THAT WERE ADDRESSED WE'RE DEALING, IF YOU'LL REMEMBER, UH, FOR, FOR MOST OF THE TAKE HOME VEHICLES, UH, THE AVERAGE COST OF THE FUEL TO AND FROM HOME WAS BEING TAKEN OUTTA THE EMPLOYEE'S CHECKS AND ALL THAT.
BUT WE HAD PLANNED FOR THAT TO, WE'RE, WE'RE ONE OF THE, ONE OF THE VERY FEW CITIES THAT DOES THAT.
SO THAT'S GOING AWAY IN THIS AND IT ADDRESSES A LOT OF THAT, THAT, UH, THE RESPONSE, UH, THAT GOES WITH THE AUDIT COMMITTEE THERE.
BUT WE'VE ADDRESSED, I THINK, EVERY SINGLE, UH, OBSERVATION THAT HAS COME THROUGH THEIR PRIOR AU AUDIT.
UH, ONE OF THE BIGGEST THINGS WAS THE TAXABLE
[01:35:01]
FRINGE BENEFITS REPORTING.ONCE AGAIN, AS I'VE I'VE SAID EARLIER TODAY, A LOT OF THAT IT WAS A MANUAL PROCESS, FILL OUT A FORM, THE FORM HAS TO GO TO MULTIPLE PLACES TO GET TO WHERE IT IS.
WE'RE AUTOMATING THAT PROCESS.
TAKES A LITTLE BIT OF WORK TO GET THAT DONE.
AND THAT'S WHAT WE'RE FINALIZING BEFORE WE GO INTO THE NEW YEAR.
SO WE'LL BE CLEANING UP SOME OF THE LANGUAGE.
THIS, THIS DIRECTIVE WAS ORIGINALLY WRITTEN IN 2008, RIGHT AT THE END OF THE, UH, THE GREAT RECESSION.
IT WAS TWEAKED ONCE, I THINK A LITTLE BIT IN 2014, BUT IT WAS NEEDED OF, OF UPDATE AND REVIEW.
SO, UH, WE WILL HAVE THINGS, UH, CLARIFIED.
MANAGING DIRECTORS WILL BE RESPONSIBLE FOR THE DEPARTMENTS.
I THINK YOU MAY REMEMBER THE BULK OF THE TAKE HOME VEHICLES.
THE VAST MAJORITY WERE POLICE.
UH, G P N L HAD SOME FIRE, HAD SOME, I THINK FACILITIES HAD A HANDFUL FOR THE RESPONSE, THE AFTER HOURS RESPONSE.
AND IT WAS ONLY A HANDFUL IN THE OTHER DEPARTMENTS COMBINED.
SO WE'LL MAKE SURE THAT THEY HAVE THE PROCEDURES PLACE AND THE APPROVAL PROCESSES IN PLACE TO BE ABLE TO MANAGE THIS.
UH, A LOT OF THE DAY-TO-DAY, THE ONGOING THINGS THAT ARE ALWAYS A CHALLENGE WAS DEALING WITH THAT COST AND THAT RECOUPING THE COST AND GETTING IT OUTTA THE EMPLOYEE'S CHECKS AND GETTING IT THERE.
I R S DOES ALLOW AN EXEMPTION FOR CERTAIN THINGS, AND I'M NOT GONNA USE THE RIGHT WORD, BUT PUBLIC SAFETY IN ESSENCE, UH, FOR THOSE KIND OF RESPONSES.
THEY'RE EXEMPT FROM THE I R S TAXABLE.
BUT WE'LL MAKE SURE IF THERE IS AN EMPLOYEE THAT HAS THAT, OR THOSE EMPLOYEES THAT DO THAT ARE TAXABLE PORTION OF IT FOR US, WE'LL MAKE SURE THAT GETS TO OUR PAYROLL TEAM.
SO, UH, EVENTUALLY THAT WILL GO INTO THE NEW WORKDAY SYSTEM, BUT RIGHT NOW WE'LL HAVE A WORKAROUND TILL WE'LL BE ABLE TO PROGRAM THAT INTO WORKDAY, UH, AND MAKE IT WORK IN THAT FASHION.
UH, BUT HAVING SAID THAT, I THINK WHAT WE'LL HAVE, UH, ADDRESSED ALL OF THE CONCERNS FROM THE PREVIOUS AUDIT, AND THEN THE NEW DIRECTIVE WILL BE WE PLAN FOR IT TO BE IN PLACE, UH, BEGINNING OF THE NEW BUDGET YEAR.
YEAR, RIGHT AROUND THE CORNER.
I WAS, UH, ON, I THINK I WAS ON THE COMMITTEE AT THE TIME THAT WE DISCUSSED THIS.
AND, UH, SOUNDS LIKE YOU ARE DEALING WITH, UH, QUITE A FEW OF THE ISSUES THAT CAME FORWARD.
ARE WE GONNA CONTINUE TO HAVE THE SAME AMOUNT OF TAKE HOME VEHICLES, UH, GOING FORWARD THAT WE'VE HAD IN THE PAST? THE VAST MAJORITY, YES.
THERE MAY BE A COUPLE THAT CHANGE HERE AND THERE BASED, AND IT'S BASED UPON MORE OF THE ASSIGNMENT AND THE POSITION AND THE NEED TO RESPOND AND THE AFTER HOURS DUTIES.
AND AGAIN, WITH THE BULK OF THEM BEING, UH, POLICE AND FIRE G P N L FLEET, THEY'RE ALL RESPONSE ORIENTED.
UM, BUT THE, THE BULK WILL BE BASED ON THAT NEED RESPONSE RATHER THAN TRYING TO TAKE MONEY FROM THE EMPLOYEES.
THEY'LL HAVE A CREDIT CARD OR, OR THEY'LL JUST GO TO A STATION WHERE THEY'LL BE ABLE TO GAS UP AND YEAH.
AND, AND ACTUALLY WE HAVE OUR FUEL, UH, HERE, UH, OUR FUEL STATIONS HERE THAT THE EMPLOYEES ARE GAS UP AND THEN THEY, UM, THEY'LL BE ABLE TO, TO DO LIKE ANY OTHER, UH, VEHICLE FOR THAT.
SO COMMITTEE, NO, I JUST WANNA SAY THANK YOU, MITCH.
AND PARTICULARLY I THINK IT CAN BE VERY BENEFICIAL TO US CITYWIDE BECAUSE I SEE IT'S A DOUBLE SECURITY THING.
IF WE'VE PARTICULARLY POLICE, YOU KNOW, IF THERE'S A UNIT PARKED IN THE NEIGHBORHOOD, IT'S A SECURITY.
IT, I MEAN, THE NEIGHBORS LOVE IT.
AND, AND THAT WAS ONE OF THE, THE THINGS WE TALKED ABOUT BACK THEN, MITCH, WAS OFFICERS BEING SEEN AT, THEY PULL INTO, I'M NOT GONNA NAME HER SERVICE STATION, BUT THEY PULL INTO A PUMP AND THE OFFICERS SEEN AND HAVING TO GO INTO HIS OR HER WALLET AND STAND IN LINE AND, AND PAY FOR THE ACQUISITION PERCEPTION THAT WE'RE GETTING THAT OUR OFFICES.
AND SO THANK YOU FOR ALL THE WORK, UH, THAT YOU, THAT YOU'VE DONE, UH, ON THIS.
BECAUSE, YOU KNOW, THERE WAS VERY, SOME VERY STRONG SENTIMENT, SOME OF THE DISCUSSIONS THAT WE HAD ABOUT THIS.
SO I JUST WANNA SAY, SAY, APPRECIATE JU APPRECIATE YOUR TEAM FOR ADDRESSING THIS BECAUSE IT'S, IT, IT'S SUPER BENEFICIAL TO OUR CITY IN MORE WAYS THAN ONE.
IT'S NOT JUST A FINANCIAL BENEFIT, BUT IT'S A PUBLIC SAFETY BENEFIT TOO.
WANNA SAY KUDOS AND THANK YOU FOR YOU BET FOR YOUR LEADERSHIP.
AND I GOT, I I DO, I HAVE TO SAY A WHOLE LOT OF PEOPLE WORKED ON THIS.
'CAUSE LIKE ANYTHING, IT IS VERY TIME CONSUMING AND EVERY WORD MATTERS AND THE CHOICE OF WORDS.
AND I DON'T EVEN WANT TO TALK TO THE LEGAL GUYS AGAIN ABOUT EVERY WORD WE CHOOSE AND ALL THE REST OF THAT.
UH, BUT MISTY'S HELPED US A WHOLE, THE, YOU KNOW, ALL THE CITY MANAGEMENT OFFICE, I MEAN A BUNCH OF MANAGING DIRECTORS, OTHERS AS WE PULL THIS TOGETHER, UH, ON WHAT OUR POLICY SHOULD BE HERE IN GARLAND.
SO, AND WE'RE, WE'RE IN GOOD SHAPE.
IT, IT'LL BE ISSUED HERE IN THE VERY NEAR FUTURE.
[01:40:03]
IF I MAY, UM, GO AHEAD.I JUST WANT TO SAY THANKS TO MITCH ASWELL.
I JUST WANNA BE ON THE RECORD THAT HE'S SO VALUABLE THAT HE CANNOT RETIRE ANYTIME SOON SINCE HE GETS INVOLVED IN EVERY AUDIT.
UH, AND I DO WANT TO APPRECIATE HIM, UM, FOR, FOR THE FOLLOW UP AS WELL.
I MEAN, HE WORKED REALLY HARD ON THIS.
I JUST WANT SOMEBODY TO CALL MY WIFE AND TELL HER THIS STUFF.
SO, AND I THINK YOU DID A GREAT JOB TODAY.
YOU SAID YOU'D LIKE TO TALK, BUT YOU JUST GOT THROUGH THAT VERY QUICKLY.
THANK YOU SO VERY MUCH FOR THE HARD WORK YOU HAVE.
ALRIGHT, AND I THINK WE'RE COMING UP ON OUR LAST ONE NOW.
IS THIS THE, UH, FFY 2024 AUDIT PLAN? CHAIRMAN, I WOULD LIKE TO PROPOSE THIS AUDIT PLAN FOR NEXT YEAR.
AND SO I'LL QUICKLY GO OVER IT.
I KNOW WE DON'T HAVE MUCH TIME.
UH, AS YOU CAN SEE IN FRONT OF YOU, THIS AUDIT PLAN WAS, UM, PUT TOGETHER BASED ON SOME OF THE RISK AS ASSESSMENTS THAT WE'VE INTERNALLY DONE, COUNCIL CITY MANAGEMENT REQUEST, ADDITIONAL OBSERVATION, AUDIT FOR OBSERVATION WHEN WE DO AUDITS, PRIOR AUDIT TIMES SINCE LAST AUDIT.
SO, UM, I'M PROPOSING THIS AUDIT PLAN FOR THE UPCOMING YEAR.
UH, LET ME KNOW IF YOU HAVE ANY QUESTIONS.
OBVIOUSLY THE FIRST ONE IS THE ENGINEERING FEE ASSESSMENT AND COLLECTION.
WE HAVE NEVER, UH, OTHER THAN LOOKING AT A PORTION OF THE, WHAT ENGINEERING HAS DONE AS A DEPARTMENT, WE HAVE NOT LOOKED AT THIS, UH, AREA, UM, COMPREHENSIVELY.
THE SECOND AUDIT IS THE ANIMAL SERVICES AUDIT, WHICH, UH, I DID RECEIVE REQUEST FROM THE ASSISTANT CITY MANAGER, PHIL, AS WELL AS, UM, COUNCILWOMAN MORRIS, UH, MAINLY TO LOOK AT THE TRAP, TER AND RELEASE PROGRAM.
WE WILL INCORPORATE THAT AS WE LOOK AT THIS, UH, AREA MORE COLLECTIVELY.
WE DID AN AUDIT IN 2016, SO IT'S BEEN A FEW YEARS BACK THEN.
THEY WERE AT A DIFFERENT SHELTER, AS YOU'RE AWARE, ALSO UNDER A DIFFERENT MANAGEMENT.
SO, UH, LOOKING FORWARD TO THAT IT SECURITY AUDIT.
I DON'T THINK I NEED TO JUSTIFY THAT AUDIT THESE DAYS.
WE DID A RISK ASSESSMENT IN 2019, THANKS TO JUDD AND HIS, UM, KINDNESS TO FIND ME SOME FUNDING.
INTERNALLY, WE DID NOT HAVE THAT COMPETENCY, IF I MAY SAY, BECAUSE IT'S A VERY SPECIALIZED AREA.
UM, BEFORE I KNEW, I JUST TALKED TO J NEXT DAY, ALLISON TOLD ME YOU HAVE THIS FUNDING.
AND SO I KNOW HOW FAST HE MM-HMM.
WE WILL HAVE, WE WILL USE THE SAME CONSULTANT THAT WE USED LAST YEAR, UH, I MEAN 20, 20 19, UH, TO LOOK AT, UM, ROUTER CONFIGURATIONS, FIREWALL CONFIGURATIONS, AND SERVER CONFIGURATION.
I WAS JUST READING SOMEBODY'S BIO AND I FOUND THAT SOMEONE WENT TO SCHOOL WITH SOME, UH, INFORMATION TECHNOLOGY, UH, BACKGROUND.
I'M TALKING ABOUT COUNCILMAN ART.
UH, SO GOOD TO HAVE YOU ON, UH, IN, IN THE AUDIT COMMITTEE.
SO WE CAN HAVE A VERY GOOD DISCUSSION ABOUT THIS ONE.
THE NEXT ITEM IS THE CONTRACT MANAGEMENT AUDIT.
WE WILL SAMPLE A FEW AUDITS, UH, I MEAN, I'M SORRY, FEW THIRD PARTY CONTRACTS.
DEPENDING ON THE SIZE OF THE CONTRACT AND THE RISK MATTERS.
UH, THEN WE WILL, WE'LL CONDUCT THAT AUDIT ATRIUM FACILITY RENTAL PROGRAM.
THIS AUDIT WAS REQUESTED BY CHAIRMAN.
WE WILL LOOK INTO THAT AND TALK TO JUD ABOUT IT.
HE ALSO THOUGHT IT'S A GREAT IDEA TO LOOK INTO THAT AREA.
NEXT ITEM IS THE POTHOLE REPAIRS AUDIT.
UH, I DON'T KNOW IF TONY'S STILL HERE.
THIS HAS NOTHING TO DO WITH TONY.
UH, BUT IF WE CAN ASSESS IT AND HELP HIM IN ANY WAY, UM, IF WE HAVE ANY, YOU KNOW, RECOMMENDATIONS WHICH MIGHT HELP HIM, I KNOW HE'S LOOKING AT IT COLLECTIVELY, COMPREHENSIVELY.
I DO REALLY APPRECIATE, I HAD A BRIEF, UH, DISCUSSION WITH HIM, UH, REGARDING ONE OF THE C I P UH, AUDITS.
AND TONY GETS IT AND HE UNDERSTANDS IT.
SO I'M LOOKING FORWARD TO WORK WITH HIM.
WE DID THIS AUDIT A FEW YEARS BACK.
THIS IS JUST MORE OF A, UH, COME BACK AND REDO IT AGAIN.
UH, THE PRIOR AUDIT COMMITTEE CHAIRMAN, MR. SMITH, HAVE RECOMMENDED THIS AUDIT, SO THAT'S WHY IT'S HERE.
COUNCILMAN OT REQUESTED THAT AUDIT.
APPRECIATE YOUR INPUT ON THAT ONE.
UH, THIS WAS ACTUALLY REQUESTED BY THE PRIOR CITY MANAGER, BRIAN BRADFORD, BECAUSE NUMBER OF YEARS AGO WE DID AN AUDIT.
HONESTLY, I JUST HAVEN'T GOTTEN TO IT.
SO WE WILL LOOK AT THAT PARKS MAINTENANCE PROGRAM.
NEVER BEEN INTO THAT AREA FROM AN AUDITOR'S PERSPECTIVE.
WE'LL COLLECTIVELY LOOK AT IT, BRING THE RISK, AND, UM, YOU KNOW, UM, THAT WILL HELP JET TO PRIORITIZE.
UM, ALSO, AGAIN, THIS IS ALL ABOUT ASSISTING WORKING TOGETHER AS A TEAM.
L E D, LIGHT STREET CON CONVERSION.
I KNOW THAT'S BEEN AN ONGOING PROJECT AND WE WANTED TO DO THAT AUDIT LAST YEAR.
[01:45:01]
GOT INTO MY HEAD AND SAID, JUST DELAY DELAYED.NOW, I JUST JOKING, HE DID NOT
UM, TOM AND I TALKED ABOUT IT.
I THINK THEY'RE COMING TOWARDS THE END OF THIS PROGRAM, SO IT'S A GREAT TIME TO JUST LOOK AT IT.
HOPEFULLY WE CAN DO THAT BEFORE THEN.
LASTLY, PCARD AUDIT IN 2015 WAS THE LAST TIME WE DID, WE DID AN AUDIT.
UM, SO WE'LL LOOK AT THAT COLLECTIVELY.
UM, THE TWO ONGOING AUDITS IS THE BOND AUDIT COUNCIL REQUESTED THAT AFTER THE LAST AUDIT, WE FINISHED PART OF IT.
THE NEXT PORTION WE ARE WORKING ON IT.
UH, ALSO THE POLICE EVIDENCE DISPOSITION, WE STARTED THAT.
THOSE ARE ALL THE AUDITS THAT I'M PROPOSING FOR NEXT YEAR.
AS SARAH INDICATED EARLIER, WE WILL SPEND SOME TIME HELPING THEM WITH THE EXTERNAL AUDIT, UM, TESTING, SINGLE AUDITS, UTILITY BILLING, CASH DISBURSEMENTS, AND PAYROLL TESTING.
THEY HAVE ALREADY GIVEN US SOME OF THOSE TESTING, SO WE HAVE ALREADY INITIATED THAT.
UM, WE MIGHT, SO THIS IS SLIGHTLY DIFFERENT THAN THE FUEL MANAGEMENT AUDIT.
EVERY YEAR WE DO AN, UM, THEY DO ACTUALLY ON THE YEAR END, UH, USUALLY IT'S ON SEPTEMBER 30TH, A RECONCILIATION BETWEEN WHAT'S ON THE, UH, IN THE SYSTEM VERSUS WHAT'S, WHAT'S IN THE TANKS.
UH, IT'S JUST, IT'S, IT'S NOT AN AUDIT, IT'S A SPECIAL PROJECT.
IF TIME PERMITS, WE WILL DO THAT.
AS YOU'RE AWARE, WE MANAGE THE CITIES FORWARD WASTE AND ABUSE HARDLINES.
SO THERE ARE OTHER PROJECTS THAT WILL COME THROUGH NEXT YEAR.
UM, WE'LL LIKE TO DO A CITYWIDE RISK ASSESSMENT, AT LEAST FACILITATE IT.
SO WE'D LIKE TO SPEND SOME TIME ON THAT.
LAST TIME WE DID IT WAS IN 2019.
SO THAT'S THE AUDIT PLAN THAT I'M PROPOSING.
UH, IF YOU HAVE ANY QUESTIONS, COMMENTS, UH, I WANT TO THANK EVERYBODY FOR YOUR INPUT, UH, DURING THIS PROCESS.
UH, IF YOU DON'T HAVE ANY COMMENTS, I WOULD LIKE TO GET CONSENSUS FROM THE AUDIT COMMITTEE, UH, FORWARD GENTLEMEN.
AND WITH THAT, LET ME JUST SAY, I KNOW THAT WE'RE GETTING READY NOW TO, UH, END OUR MEETING.
IS THERE ANY OTHER BUSINESS THAT NEEDS TO COME BEFORE US BEFORE WE GO INTO OUR EXECUTIVE SESSION? I JUST WANNA APPRECIATE MY TWO AUDITORS.
AND IT'S, IT'S, THEY'RE THE GROUNDS ON THE, THEY'RE THE ONE WHO MAKES THIS HAPPEN.
WE ARE NOT EXPERTS IN ANY, ANY AREA.
SO IT'S, IT'S A QUICK LEARNING.
UM, LOOKING AT A LOT OF DATA, A LOT OF TIMES YOU HEARD IT'S A LOT OF MANUAL, UH, INFORMATION.
SO WE, SOMETIMES ALL WE DO IS JUST DATA ENTRY FOR SOME TIME, ORDER TO ANALYZE IT.
AND I ALSO HAVE A NEW TEAM MEMBER, ZACH, WHO'S SITTING BACK HERE.
WE'RE EXCITED TO HAVE HIM ON BOARD.
UH, HE'S OUR NEW SENIOR AUDITOR.
SO JUST, JUST WANTED TO MENTION THAT.
UH, I DO A, JUST LIKE YOU ACKNOWLEDGING YOUR STAFF, I WANT TO ACKNOWLEDGE YOU.
I WANT TO ACKNOWLEDGE THE MANNER BY WHICH YOU HAVE, UH, TAKEN ME BY THE HAND AND TAKEN ME TO LUNCH AND TALKED WITH ME ON THE TELEPHONE AS IT RELATED TO THIS POSITION AND WHAT WE'RE GONNA BE DOING AS WE GO FORWARD.
I DO RECOGNIZE, UH, THE SENSITIVITY OF THE NATURE OF THE BUSINESS THAT WE, WE DEAL WITH AND THE DIPLOMACY THAT NEEDS TO BE HELD AS WE DISCUSS THESE ISSUES.
AND, UH, I JUST WANT TO SAY TO THE COMMITTEE, THANK YOU SO VERY MUCH, UH, FOR, UH, YOUR, UH, PATIENCE BECAUSE IT WILL TAKE A LITTLE BIT OF PATIENCE.
BUT I CAN ASSURE YOU THAT, UH, AS WE GO FORWARD, WE'RE GONNA BE DOING EVERYTHING THAT WE POSSIBLY CAN TO MAKE THESE MEETINGS, UH, UH, GRATIFYING TO GET THE WORK TAKEN CARE OF THAT NEEDS TO BE TAKEN CARE OF, AND TO, UH, JUST CONTINUE TO MOVE THE CITY IN THE DIRECTION THAT WE NEED TO MOVE FORWARD.
WITH THAT, UH, COMMITTEE, TELL ME, UH, WE'RE RIGHT NOW AT FOUR 18 GOING INTO BOOK FOUR 20, UH, FOUR 30, WE'RE SUPPOSED TO BE HAVING DINNER.
AND AS FAR AS, UH, I'M CONCERNED, UH, I'M NOT REALLY THAT HUNGRY TO GO IN INTO THAT.
UH, WOULD YOU LIKE TO TAKE A BREAK BEFORE WE PROCEED INTO THE, UH, GOT SOMETHING ELSE HERE? YES, WE DO HAVE, WE HAVE AN EXECUTIVE SESSION, MR. BOTTOM PART.
SO WOULD YOU LIKE TO MOVE FORWARD OR WOULD YOU LIKE TO TAKE A BREAK? LET'S GO FORWARD.
LET'S GO FORWARD, LET'S MOVE FORWARD WITH THAT.
WE'RE GONNA ASK NOW THAT, UH, THOSE ARE.