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GOOD EVENING.WELCOME TO THE SEPTEMBER 30TH, 2025 MEETING OF THE CITY OF GARLAND'S AUDIT COMMITTEE.
MY NAME IS ED MOORE AND I'M THE CHAIR.
WE HAVE WITH US OUR MEMBERS, CHRIS OTT.
WE HAVE OUR CITY MANAGER WITH US, JUDD, AND WE HAVE OUR FINANCE CHAIR WITH US.
WE HAVE LOTS OF, WE HAVE LOTS OF PEOPLE WITH US TODAY, SO WE JUST GOING TO SAY, UH, THANK YOU AND WELCOME.
UH, THANK YOU FOR COMING OUT AND WELCOME.
UH, WE'RE GOING TO, WE HAVE A LOT OF INFORMATION BEFORE US TODAY.
BEFORE WE GET STARTED, WE DO WANT TO GET THE APPROVAL OF OUR MINUTES TAKEN CARE OF.
I'LL ENTERTAIN A MOTION FOR THAT.
MR. CHAIRMAN, I'D LIKE TO MAKE A MOTION THAT WE, UH, APPROVE THE MINUTES AS THEY'RE PRESENTED.
NEXT WE HAVE ON OUR AGENDA, UH, PUBLIC COMMENTS.
PERSONS WHO DESIRE TO ADDRESS THE COMMITTEE ON ANY ITEM OF THE AGENDA OR ALLOW THREE MINUTES TO SPEAK TESTIMONY MAY BE HELD UNTIL THE ITEM IS CONSIDERED OR GIVEN AT THE BEGINNING OF ANY COMMITTEE MEETING.
INVITED TESTIMONY MAY ALSO OCCUR AT ANY TIME.
SUBJECT TO THE REQUEST OF THE MEMBER OF THE COMMITTEE AND WITH THE APPROVAL OF THE COMMITTEE CHAIRPERSON.
MADAM SECRETARY, DO WE HAVE ANY, UH, PUBLIC COMMENTS? IT LOOKS LIKE WE HAVE ONE HERE.
DO WE HAVE ANY OTHERS OTHER THAN THIS ONE? OKAY.
BOB, ARE YOU PRESENT? PLEASE COME FORWARD.
I'VE HAD TWO EYE SURGERIES THIS MONTH, SO, OKAY.
CATARACT, I THINK ALL WE NEED YOUR NAME AND ADDRESS AND YOU CAN HAVE AT IT.
BOB DUCKWORTH, 9 0 9 WACO DRIVE IN TEXAS.
AND, UH, HERE TO SPEAK TO YOU ON THE MINUTES.
I, I DIDN'T GET TIME TO READ 'EM AND YOU'RE NOT AVAILABLE, BUT, OKAY.
I KNOW, YOU KNOW, I WAS HERE LAST MONTH.
I THOUGHT YOU SAID WACO OR, GO AHEAD.
COUNCIL MOORE, AN AUDIT COMMITTEE.
I'M GONNA READ SO I CAN GET THROUGH, PLEASE.
I'M ADDRESSING THE MINUTES OF THE 6 24 MEETING WITHOUT THE ABILITY TO READ THE DRAFT MINUTES.
AS YOU'RE AWARE, I ATTENDED THE MEETING AND HAD REQUESTED AN AUDIT OF THE SRO PROGRAM AND AFTER A LENGTHY DISCUSSION, IT WAS DETERMINED THAT AN AUDIT WAS NOT THE REQUIRED DIRECTION AT THAT TIME.
HOWEVER, IT WAS DETERMINED THAT THE S-R-O-M-O-U DOCUMENT THAT WAS BEING RENEGOTIATED SHOULD BE MADE A PART OF THE BUDGET PROCESS.
AUDITOR JOHNSON SUMMARIZED DISCUSSION AS FOLLOWS.
MY UNDERSTANDING IS THIS IS GONNA BE GO THROUGH THE BUDGET PROCESS AND CHIEF IS GONNA PROVIDE THE DETAILS FOR THE CITY COUNCIL TO MAKE APPROPRIATE AMENDMENTS OR CHANGES TO THE CONTRACT.
TO MY TOP, TO MY KNOWLEDGE, UH, AND I BELIEVE THE NEW CONTRACT HAS BEEN SIGNED AND AS IN PLACE, UH, IT NEVER CAME THROUGH THE, THROUGH THE COUNCIL WORK SESSION OR THROUGH THE BUDGET PROCESS.
THE SRU THAT WAS SIGNED ON SEPTEMBER 25, 26 BY CHIEF BRIAN AND, AND CITY MANAGER REX DID NOT GO THROUGH THAT PROCESS AS WE, AS WAS DISCUSSED.
AND WE ALL AGREED THAT THAT WOULD BE THE PROCESS.
I'M NOT AGAINST THE SRO PROGRAM AND IF THE DISTRICT WANTS TO OPERATE WITH GARLAND POLICE OFFICERS SERVING SROS, I'M GOOD WITH THAT.
UH, MY, MY CONTENTION IN, AND MR. WATSON, I BELIEVE THE OVERALL COST OF THE, OF THE SRO PROGRAM IS SOMEWHERE IN THE ROUND NUMBER, $7 MILLION RANGE.
AND THE CITY, UH, GETS REIMBURSED ABOUT FOUR TO 5 MILLION OF THAT.
THAT LEAVES THE CITIZENS PAYING IN THE TWO TO 3 MILLION OF TOTAL COST.
GENTLEMEN, I BELIEVE YOU AND THE LEGAL STAFF REVIEWED THE CURRENT, UH, MOU, UH, PRIOR TO SUBMISSION TO THE GARLAND ISD FOR, UH, THAT'S MY UNDERSTANDING THAT OUR FINANCE AND, AND, UH, AND LEGAL LOOKS AT THAT.
MY CONTENTION IS THAT THE DISTRICT SHOULD PAY 100% OF ALL COSTS IF THEY CHOOSE TO STAY IN THE SRO PROGRAM, RATHER THAN THE MORE ECONOMICAL PROGRAM WITH ASOS OR THE CHIEF'S COST, UH, THAT HE, UH, MENTIONED IN, IN A MEETING.
EACH VEHICLE IS ABOUT $25,000 A YEAR.
THE COST OF TO KEEP A VE VEHICLE TIMES 34, THAT'S $850,000.
THE NEW MOU STATES A 50 50 SPLIT ON VEHICLE MAINTENANCE EXPENSE, BUT IS NOT SPECIFIC ON THE ANNUAL COST OF A VEHICLE AND THE MAINTENANCE COST.
ANOTHER AREA I WOULD LIKE TO, UH, UH, I WOULD LIKE THAT TO BE CHECKED INTO AND VERIFIED WHAT IT ACTUALLY IS.
'CAUSE I THINK THERE'S A SIGNIFICANT AMOUNT OF MONEY THERE THAT SHOULD BE REIMBURSED BY THE SCHOOL DISTRICT IS IF IT COSTS 25 A YEAR TO HAVE A CAR IN SERVICE, PLUS THE MAINTENANCE ON IT SHOULD BE PAID FOR.
ANOTHER AREA I'D LIKE TO SUGGEST MORE DEFINITION IS THE OVERTIME EXTRA DUTY IS WHAT IT'S, UH, CALLED
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IN THE, UH, MOU.I'M AWARE OF THE AVAILABILITY BY THE CHECK REGISTER OF THE GISD TO SEE MANY OFFICERS ARE BEING PAID SIGNIFICANT AMOUNTS OF MONEY DIRECTLY BY OFFICERS TO, UH, BY THE DISTRICT BASED ON THE MOU.
ALL MONIES, INCLUDING OVERTIME, SHOULD BE HANDLED ON A REIMBURSEMENT TO THE CITY BY THE DISTRICT, AND NO DI DIRECT PAYMENT TO SROS THROUGH ANY OTHER ARRANGEMENTS.
THIS NEEDS TO BE CLARIFIED AND ALL PAYMENTS TO ALL SROS SHOULD COME THROUGH THE CITY SETTLEMENT PROCESS AND NOT DIRECTLY FROM THE, FROM THE GISD.
AND I'LL BE GLAD TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
QUESTION TO OUR, UH, LEGAL STAFF.
THIS IS A CITIZEN'S COMMENT TIME.
UH, ARE WE ABLE TO ADDRESS THIS OR IS THIS A SIGN? WE JUST ALLOW HIM TO SAY WHAT HE NEEDS TO SAY BECAUSE, BECAUSE THIS IS JUST POSTED AS PUBLIC COMMENT.
IF YOU HAVE QUESTIONS OF HIM, YOU CAN ASK, BUT YOU CAN'T DISCUSS IT AS A BODY.
UM, NOTHING AT THIS TIME OTHER THAN WE THANK YOU FOR COMING DOWN AND BRINGING THESE CONCERNS AND WE'LL LOOK INTO THEM.
IT'S, UH, IT'S GOOD TO HAVE A CITIZEN WHO CONTINUES TO MAKE US ABREAST OF SOME OF THE INJURIES THAT YOU FEEL THAT WE NEED TO BE LOOKING INTO AND CERTAINLY BE THERE THAT WE WILL CONTINUE TO, I KNOW, EXCUSE ME, I KNOW Y'ALL ARE BUSY, HAVE A LOT OF THINGS TO LOOK AT AND WELL, I'M JUST ANOTHER SET OF EYES AND I'M HERE FOR THE COMMUNITY, FOR THE PUBLIC.
THAT'S, THAT'S WHERE ALL THE MONEY COMES FROM TO PAY THE THINGS THAT WE'RE TALKING ABOUT.
SO, I'M HERE SPEAKING IN BEHALF OF THE, THE CITIZENS OF GARLAND, NOT ONLY MYSELF.
WITH THAT, LET US NOW MOVE TO OUR ITEMS FOR INDIVIDUAL CONSIDERATION.
UH, WE ALREADY HAVE BEFORE US, IT LOOKS LIKE, UH, AARON AND STAFF ARE SITTING THERE.
BEFORE WE DO THAT, LET'S GO TO OUR AUDIT COMMITTEE DIRECTOR, SEE WHAT HE WANTS TO DO IN THE WAY OF, UH, DIRECTING US AND INTRODUCING CHAIRMAN.
GOOD AFTERNOON COMMITTEE MEMBERS.
THANK YOU FOR HAVING US TODAY.
AND THE, THE FIRST ITEM THAT WE ARE GONNA COVER IS THE EXTERNAL AUDIT PLAN FOR FISCAL YEAR AT 2025.
WE HAVE WEAVER SARAH DEMPSEY, WHO IS THE PARTNER ENGAGEMENT PARTNER WITH WEAVER, AND ALSO JEFF VADA, WHO'S THE SENIOR MANAGER.
THEY'RE GONNA GO OVER THE FY 2025 AUDIT PLAN WITH US.
SO THANK YOU FOR HAVING US THIS AFTERNOON.
WE'RE HERE TO TALK ABOUT THE 2025 AUDIT.
WHAT WE'VE DONE SO FAR IS INTERIM.
AND SO THIS MEETING REALLY IS TO SET THE STAGE ON WHAT'S TO COME IN CASE THERE ARE COMMUNICATIONS THAT YOU WOULD LIKE TO HAVE WITH US OR ANYTHING LIKE THAT.
SO WE'LL START OFF WITH A QUICK INTRODUCTION.
GO THROUGH THE AUDIT PROCESS, UM, TALK TO YOU ABOUT WHAT'S GONE ON WITH INTERIM WORK AND THEN SOME NEW ACCOUNTING PRONOUNCEMENTS THAT ARE OUT THERE.
AND THEN JUST ADDRESS ANY AUDIT COMMITTEE CONCERNS THAT YOU MIGHT HAVE OR OPEN UP THAT COMMUNICATION LINE THAT I REFERRED TO.
UM, YOU'VE PROBABLY SEEN SOMETHING SIMILAR BEFORE.
WE HAVE AN IT ADVISORY DIRECTOR THAT WORKS ON THE ENGAGEMENT AS WELL, AND AN IT TEAM, UM, A DATA ANALYTICS TEAM.
AND THEN OF COURSE WE HAVE JEFF AND OUR STANDARD AUDIT TEAM THAT ALSO GOES THROUGH, UM, AND DOES THE FIELD WORK TESTING.
SO, UM, JUST WANTED TO CLARIFY THAT.
WE DO HAVE A SEPARATE IT ADVISORY TEAM, UM, THAT ALSO LOOKS AT INTERNAL CONTROLS AS WELL.
THIS IS THE TIMELINE, JUST SO YOU HAVE, UM, AN AWARENESS OF HOW THIS WORKS BECAUSE THE YEAR END IS SEPTEMBER 30TH.
WE DO INTERIM PROCEDURES BEFORE YEAR END, AND THEN WE COME BACK JANUARY AND FEBRUARY TO DO FINAL FIELD WORK.
UH, AND THEN WE'RE MEETING AGAIN, UM, IN FEBRUARY TO DO MORE FIELD WORK OR ISSUE THE REPORT IN MARCH AND MEET AGAIN IN MARCH.
AND THEN IN BETWEEN THAT WE'RE HAVING ONGOING COMMUNICATIONS WITH THE TEAM, ANY UNUSUAL TRANSACTIONS OR ANY QUESTIONS THAT THEY HAVE OR, OR, UM, AVAILABLE ALL YEAR ROUND.
UH, THE AUDIT PROCESS ITSELF IS, UM, A RISK-BASED APPROACH.
SO WHAT THAT MEANS IS WE'RE READING THE MINUTES, WE'RE TALKING WITH MANAGEMENT, AND WE'RE FIGURING OUT WHERE IS THERE A RISK FOR MATERIAL MISSTATEMENT.
IT COULD CHANGE EVERY YEAR, BUT THERE ARE CERTAIN THINGS THAT WE LOOK AT EVERY YEAR THAT YOU'LL, YOU'VE HEARD ME SAY BEFORE.
AND IT'S JUST BECAUSE IT'S A HIGH RISK AT EVERY LOCAL GOVERNMENT AND ALMOST EVERY ENTITY THAT'S AUDITED REALLY IS, UM, THIS MANAGEMENT OVERRIDE OF CONTROLS AND THE POSSIBILITY THAT MANAGEMENT COULD, UM, APPROVE THEIR OWN SUPPORT OR CREATE JOURNAL ENTRIES THAT DON'T HAVE SUPPORT.
SO THAT'S ALWAYS A RISK WHEN YOU'RE DEALING WITH FINANCE, UM, AND FINANCIAL STATEMENTS AND HOW THAT INFORMATION IS GETTING TO THE FINANCIAL STATEMENTS.
SO WE ALWAYS HAVE MANAGEMENT OVERRIDE OF CONTROLS.
UM, REVENUE IS ALSO ALWAYS A RISK AREA, AND THAT'S REALLY BECAUSE, UM, THE CITY
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AND A LOT OF OTHER LOCAL GOVERNMENTS, THEY ISSUE DEBT.THEY MAY WANT THEIR BOND RATING TO BE HIGHER.
SO WE'RE ALWAYS, UM, AWARE OF WHERE THERE ARE POSSIBILITIES WHERE REVENUE COULD BE OVERSTATED.
AND THEN OF COURSE THE FEDERAL GRANTS, ANY SORT OF MONEY COMING IN, UM, FROM THE GOVERNMENT HAS A LOT OF RESTRICTIONS THAT GO ALONG WITH IT.
SO WE'RE HAVING TO DO A LOT OF TESTING, UM, WITH REGARDS TO MAKING SURE THAT THE CITY IS COMPLIANT WITH, UM, LAWS, REGULATIONS, GRANT AGREEMENTS, UM, FEDERAL, STATE AND LOCAL.
SO WE'RE TAILORING OUR AUDIT PROGRAMS FOR THESE SPECIFIC AREAS AS WELL.
WE DO LOOK AT IT AS I MENTIONED, CAPITAL PROJECTS, PURCHASING BID PROCEDURES, UM, LIABILITIES THAT ARE OUT THERE, AND, UM, VARIOUS OTHER COMPLIANCE REQUIREMENTS SUCH AS PURCHASING REQUIREMENTS, INVESTMENT REQUIREMENTS, UM, AND THINGS OF THAT NATURE FOR INTERIM FIELD WORK.
SOME OF THE THINGS THAT WE'VE ALREADY DONE ARE COMPLIANCE TESTING, STARTED SOME CAPITAL PROJECTS TESTING, AND REALLY WE'RE WALKING THROUGH THOSE SIGNIFICANT ACCOUNTING TRANSACTION CYCLES DURING INTERIM TO SEE HOW THE INTERNAL CONTROLS ARE OPERATING DURING THE FISCAL YEAR.
SO JUST A LIST OF SOME OF THE ACCOUNTING, UM, CYCLES THAT WE ARE GOING THROUGH.
UM, AS YOU KNOW, PAYROLL IS A, IS A LARGE EXPENSE, AND THEN JUST THE DISBURSEMENTS OF CASH.
UM, PROPERTY TAX COLLECTIONS, THE BUDGET AND FINANCIAL CLOSE PROCESS, UTILITY REVENUE AND GRANT REVENUE.
WE ALSO DO TESTING OVER THE CENSUS DATA, UM, FOR YOUR PENSION AND OPEP PLANS.
SO, UM, THE INTERIM FIELD WORK, WE ALSO TEST CONTROLS.
SO WE DON'T ONLY WALK THROUGH THEM, WE ACTUALLY SELECT A SAMPLE AND WE TEST THOSE CONTROLS.
SO I'VE LISTED OFF SOME OF THE WAYS THAT INTERNAL CONTROLS ARE BEING TESTED.
AND THEN WE ALSO HAVE OUR FEDERAL STATE, UM, FEDERAL AND STATE GRANTS THAT WE HAVE FOR SINGLE AUDIT, AND WE START THAT TESTING DURING INTERIM AS WELL.
UM, WE UTILIZE THE INTERNAL AUDIT GROUP AS MUCH AS WE CAN, AS MUCH AS THEY HAVE AVAILABLE.
UM, WE'VE DONE CASH DISBURSEMENTS, PAYROLL, UTILITY BILLING.
THEY'VE HELPED WITH THE SINGLE AUDIT.
SO, UM, WE DO GET A LOT OF HELP WITH THE INTERNAL AUDIT DEPARTMENT AS WELL.
THEY KNOW THE PROCESSES THAT, UM, THE CITY IS SUPPOSED TO FOLLOW, AND THEN WE REPERFORM SOME OF THEIR PROCEDURES AS WELL.
AND THEN DATA ANALYTICS, BECAUSE THERE'S SO MUCH DATA AT A CITY OF THIS SIZE, THAT'S WHY WE'RE USING DATA ANALYTICS TO FILTER THROUGH THE CACHE THAT'S GOING OUT AND JUST MAKING SURE THAT, UM, THERE AREN'T ANY UNUSUAL ITEMS WHEN WE SEE THE DATA RUNNING THROUGH.
SO THIS PART IS JUST THE REQUIRED COMMUNICATIONS, AND WE'VE HAD THESE BEFORE, SO I WON'T READ THEM ONE BY ONE, BUT WE ARE DOING THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AND GOVERNMENT AUDITING STANDARDS.
WE'RE FORMING AN OPINION ON THE FINANCIAL STATEMENTS.
SO THAT'S REALLY WHAT THE PURPOSE OF THE AUDIT IS, IS TO EXPRESS AN OPINION THAT THE FINANCIAL STATEMENTS THAT ARE PREPARED BY MANAGEMENT ARE REASONABLY STATED.
IF WE HAVE FRIEND FRAUD OR ANYTHING LIKE THAT, WE WOULD COMMUNICATE IT TO YOU RIGHT AWAY.
UM, AND ANY OTHER INFORMATION THAT, THAT YOU NEED TO KNOW IN A TIMELY BASIS FOR THE SINGLE AUDIT, AGAIN, WE'RE DOING THE SAME THING.
WE'RE GIVEN AN OPINION ON THE, UM, ON THOSE MAJOR PROGRAMS. SO WE'RE SAYING WHETHER THE CITY WAS COMPLIANT WITH, UM, WITH THOSE MAJOR FEDERAL PROGRAMS AND MAJOR STATE PROGRAMS AS WELL.
FOR THE IT UPDATE, THESE ARE THE SYSTEMS THAT ARE BEING TESTED BY OUR IT GROUP.
THEY'RE LOOKING FOR PROGRAM CHANGES, MIGRATION, UM, COMPUTER OPERATIONS, PHYSICAL ACCESS, AND THEN ACCESS TO, UM, THE INDIVIDUAL PROGRAMS. AND THEN FOR THIS YEAR, THERE ARE A FEW NEW ACCOUNTING PRONOUNCEMENTS TO, UM, TO EXPECT.
UM, GASB 1 0 1 COMPENSATED ABSENCES CHANGE THE WAY THAT THE COMPENSATED ABSENCE LIABILITY IS CALCULATED.
AND THEN GASB 1 0 2 IS, UM, IT'S CALLED CERTAIN RISK DISCLOSURES.
AND IT'S JUST REALLY GETTING, UM, EVERYONE ON THE SAME PAGE FOR STATE AND LOCAL GOVERNMENTS TO DISCLOSE THE SAME RISKS THAT THEY'RE SEEING.
THEY WERE SEEING, UM, THAT SOME LOCAL GOVERNMENTS WOULD DISCLOSE CERTAIN THINGS AND OTHERS WOULDN'T.
SO IT'S REALLY JUST TO, UM, TO BRING MORE CONSISTENCY ACROSS FINANCIAL STATEMENTS.
AND THEN THESE ARE FOR FUTURE PRONOUNCE, THESE ARE PRONOUNCEMENTS FOR FUTURE YEARS, SO THEY WILL NOT AFFECT YOUR 2025 REPORT.
JUST AN AWARENESS THAT THERE ARE SOME STANDARDS OUT THERE THAT, THAT THE FINANCE DEPARTMENT WILL BE IMPLEMENTING AS WELL.
AND THEN, UM, QUESTIONS, DISCUSSIONS.
I JUST PUT A FEW EXAMPLES OF THINGS THAT YOU COULD BRING TO OUR ATTENTION IF YOU, UM, THINK OF THEM OR WANT TO REACH OUT AT ANY TIME, UM, MATTERS THAT MIGHT AFFECT THE AUDIT THAT YOU'D LIKE TO MAKE US AWARE OF, UM, ANY SIGNIFICANT COMMUNICATE COMMUNICATIONS THAT YOU'VE GOTTEN FROM REGULAT REGULATORY BODIES OR, UM, OR ANYTHING LIKE THAT.
UM, WE JUST WANT YOU TO KNOW THAT WE'RE HERE AND OPEN TO TALK ABOUT ANYTHING THAT YOU WANT TO
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BRING TO OUR ATTENTION AS WELL.AND THAT'S ALL THAT I HAVE FOR TODAY, BUT IF YOU HAVE ANY QUESTIONS, I'M HERE TO ANSWER THEM.
SIR, HOW MANY YEARS HAVE YOU BEEN DOING THIS WITH US? NOW? FOR ME, I THINK THIS WOULD BE MY 10TH YEAR.
WE'VE HAD PARTNER ROTATION, MANAGER ROTATION AND WAYS TO SWITCH THINGS UP, BUT YEP, IT'S BEEN ABOUT 10 YEARS ON BEHALF OF THE MAYOR AND THE COUNCIL.
JUST WANNA SAY WELCOME BACK AGAIN.
AND BASED ON WHAT I'VE SEEN IN PREVIOUS YEARS, YOU ALWAYS DO A VERY GOOD JOB IN WORKING WITH, UM, THE AUDIT DEPARTMENT.
UH, TO MY KNOWLEDGE, YEAH, WE'VE JUST COME THROUGH, UH, UH, EXTENSIVE AUDIT, PEER GROUP AUDIT, HAVEN'T WE? I'M SORRY, CHAIRMAN.
WE JUST COME THROUGH, UH, EXTENSIVE PEER GROUP CAME THROUGH ONE AND ALWAYS COME THROUGH WITH FLYING COLORS, SO THERE IS NO DOUBT IN MY MIND WE'RE GONNA DO IT ONCE AGAIN.
WE APPRECIATE THE PROACTIVE COMMUNICATION THAT EVERYONE HAS WITH US, SO IT, WE'RE LOOKING FORWARD TO IT.
UH, THANK YOU ONCE AGAIN FOR, UH, FOR BEING HERE 10 YEARS WORKING WITH US.
I KNOW THAT LAST YEAR WE DID A MAJOR SPECIFIC IT AUDIT, AND I'M ASSUMING THAT THE CHECKUPS THAT YOU'RE DOING, UH, THE AUDITING THAT YOU'RE DOING ON THAT, WILL THAT BE LOOKING AT SOME OF THE SPECIFIC RECOMMENDATIONS THAT THEY HAD FROM WHEN THEY COMPLETED THAT AUDIT? WE DO TAKE A LOOK AT ALL OF THE INTERNAL AUDITOR REPORTS AS WELL, JUST TO MAKE SURE THAT OUR TESTS ARE NOT GOING TO BE AFFECTED OR IF THERE'S SOMETHING THAT THEY FOUND DURING THE COURSE OF THEIR AUDIT THAT WE NEED TO LOOK INTO, IF IT WOULD MATERIALLY IMPACT THE FINANCIAL STATEMENTS.
WE DEFINITELY FOLLOW UP ON THAT AS WELL.
ANYBODY CHAIRMAN, IF I MAY, UH, UM, SARAH, DO YOU MIND TO SHARE THE MAJOR PROGRAMS THAT THE CITY FOR THE, FOR THE AWARENESS OF SURE.
THE AUDIT, UH, I MEAN, UH, THE AUDIT COMMITTEE AS WELL AS WHICH ONES ARE WE GONNA LOOK AT THIS YEAR? SURE.
WE DEFINITELY HAVE ARPA AGAIN THIS YEAR.
UM, DID WE HAVE ANY OTHERS THAT CROSS THE THRESHOLD? YEAH, SO THAT'S OUR PRELIMINARY ASSESSMENT IS DOING THE ARPA OR THE COR CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUND.
UM, THAT ONE, THIS IS WRAPPING UP THIS YEAR AND IT'S A LARGE AMOUNT OF MONEY STILL BEING SPENT THERE, BUT I THINK THAT'S MIGHT BE THE ONLY ONE WE HAVE TO DO.
WE HAVE TO SEE THE FINAL CFA BEFORE WE MAKE THE FINAL DETERMINATION, BUT WE'LL LET THE AUDIT COMMITTEE ANALYZE THE PROGRAMS. AND THEN THIS YEAR, SO TEXAS DOES REQUIRE A STATE SINGLE AUDIT AS WELL.
AND SO THIS YEAR THERE IS ONE STATE PROGRAM THAT'S OVER THE THRESHOLD.
SO THERE IS GONNA BE A STATE SINGLE AUDIT, AND I FORGOT THE EXACT NAME OF IT.
I THINK IT'S THE SLIDES, BUT IT'S PRETTY MUCH THE GRANT.
YOU GOT TO IMPROVE YOUR RADIO COMMUNICATION SYSTEM MM-HMM.
SO THAT WAS A STATE GRANT, SO THAT WAS OVER THE THRESHOLD OF, UM, SEVEN OR $1 MILLION NOW.
AND SO WE HAVE TO AUDIT THAT ONE AS WELL.
THE STATE EMERGENCY COMMUNICATION GRANT, UM, THE ARPA GRANT IS WRAPPING UP, AND ONCE WE GET THE YEAR, THIS IS, UH, THIS IS THE YEAR.
AND, UM, ONCE WE GET THE FINAL CFA, THERE COULD BE A PROGRAM THAT GOES OVER THE THRESHOLD.
THAT'S WHY IT'S A LITTLE BIT PRELIMINARY RIGHT NOW.
IF THE, IF A GRANT DOES HAPPEN TO GO OVER A THRESHOLD AND IT HASN'T BEEN AUDITED IN TWO YEARS, IT WOULD HAVE TO BE SELECTED AS WELL.
I THINK THAT WE'VE ALREADY TAKEN CARE OF THAT, HAVE WE NOT, UH, MR. THE CITY MANAGER
WELL, MAY MAYBE, IF I SHOULD LOOK TO YOUR RIGHT, HONEY, WE'RE ON TRACK TO SPEND IT LONGER TO SPEND IT.
YOU ALLOCATE, WE DON'T WANNA LEAVE NO MONEY ON THE TABLE.
YOU STILL HAVE SOME TIME TO SPEND, IT'S JUST ALLOCATED AT THIS POINT.
ANYTHING ELSE FROM THEM? THANK YOU.
OKAY, OUR NEXT REPORT'S GOING TO COME FROM OUR FAR WHEEL GOLF COURSE OPERATIONS AUDIT JETT CHAIRMAN.
UM, WE HAVE DONE A NUMBER OF AUDITS AT THE FIREWALL GOLF COURSE BEFORE, BUT IT'S BEEN A FEW YEARS SINCE WE WENT BACK.
UM, SO, UM, WE HAD MAINLY TWO OBJECTIVES WITH THIS AUDIT.
WE WANTED TO DETERMINE MANY IF THE GOLF COURSE WAS IN COMPLIANCE WITH THE TEXAS ALCOHOLIC BEVERAGE REGULATIONS.
SINCE WE SELL ALCOHOL AT THE PROMISE, UH, WE ALSO WANTED TO DETERMINE IF ADEQUATE INTERNAL CONTROLS EXIST FOR PAYMENT PROCESSING, TOURNAMENT OPERATIONS AND INVENTORY MANAGEMENT.
THE INVENTORY MANAGEMENT COVERED BOTH ALCOHOL INVENTORY AS WELL AS MERCHANDISE INVENTORY.
AS YOU'RE AWARE, WE HAVE TWO, UH, PRO SHOPS AND ALSO TWO RESTAURANTS ON SITE.
SO WE WENT THROUGH, UM, A DETAILED TESTING IN THIS AREA.
ONE THING THAT I DO WANNA MENTION, MR. SLE, KEVIN SLE WAS VERY INVOLVED DURING THIS AUDIT.
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COULD NOT BE HERE TODAY.UH, I DO WANNA BRING UP ONE THING THAT HE ACTUALLY IMPLEMENTED A FEW YEARS AGO SINCE OUR LAST AUDIT.
HE ACTUALLY, UM, HAS A PERSON FROM ONE OF HIS OTHER DEPARTMENTS PROACTIVELY GO OUT TO FIREWALL AND ON A MONTHLY BASIS CONDUCTS SURPRISE, CASH COUNTS, ALCOHOL INVENTORY COUNTS, AND TAPC COMPLIANCE VERIFICATION CHECKS.
UM, SO, UM, KEVIN HAS DONE AN AMAZING JOB IN, IN KEEPING UP WITH THAT.
SO I, I JUST WANT THE COMMITTEE TO BE AWARE OF IT.
THIS AUDIT, UH, WAS VERY COLLABORATIVE ONE, UH, I, I SAY THAT BECAUSE AS PART OF THE AUDIT, MR. CITY MANAGER, JUDSON RUCKS, UH, HAS ACTUALLY, UM, INFOR, UH, REQUESTED US TO LOOK INTO CERTAIN AREAS AS WELL.
SO I DO WANT TO THANK JET FOR, UH, FOR BRINGING THAT TO OUR ATTENTION.
SO WE, WE BELIEVE WE DID THAT.
UM, I ALSO WANNA THANK DON KENNEDY AND MATT MCMILLAN.
MATT ACTUALLY WORKED SIGNIFICANTLY WITH OUR TEAM.
UH, THERE WAS A LOT OF REQUEST, UH, THAT WENT TO, WENT TO HIM, AND HE DID AN AMAZING JOB IN PROVIDING THAT AT A RIGHT, AT, AT AN, IN A, IN A TIMELY MANNER.
ERIN AND GIVIN ACTUALLY, UH, DID THE AUDIT.
UM, SO THEY'RE GONNA GO BACK AND FORTH WITH, WITH SOME OF HER OBSERVATIONS.
ERIN IS GONNA START WITH GIVING SOME BACKGROUND ABOUT FIREWALL, AND SHE WILL EVENTUALLY GET TO THE OBSERVATIONS.
SO FIRE WILL GOLF PARK'S A THREE COURSE, UH, PARK.
IT'S MANAGED BY CITY EMPLOYEES INCLUDING A PGA, GOLF PROFESSIONAL AND ASSISTANT PROFESSIONALS.
UM, AS JED MENTIONED, THERE'S UH, TWO PRO SHOPS AND TWO RESTAURANTS.
AND THEN, UM, THE GOLF PARK ALSO HOLDS A MIXED BEVERAGE PERMIT AND A FOOD AND BEVERAGE, UH, CERTIFICATE THROUGH THE TEXAS ALCOHOLIC BEVERAGE COMMISSION.
UM, AND THE FACILITY INCLUDES PRACTICE AREAS, CLUB FITTINGS, ORDERINGS CLINICS AND LESSONS.
THEY ALSO HOST TOURNAMENTS, UM, AND ASSOCIATIONS AND LEAGUES ROTATE WEEKLY AND PLAY AMONG ALL THE COURSES.
IN FISCAL YEAR 2024, 119,000 ROUNDS OF GOLF WERE PLAYED ACROSS THREE COURSES, AND THE PARK GENERATED APPROXIMATELY $5.2 MILLION IN SALES THROUGH GREEN FEES, CART FEES, RANGE FEEDS, UH, FOOD AND BEVERAGE AND MERCHANDISE AS WELL.
UM, FIRE WILL EMPLOYEES ABOUT 25 FULL-TIME EMPLOYEES AND 45 TEMPORARY EMPLOYEES AT THE RESTAURANT, PRO SHOPS AND THE MAINTENANCE SHOPS.
AND THEY HAVE A SINGLE SOFTWARE SYSTEM THAT'S USED TO RESERVE TEE TIMES, UM, POINT OF SALE TRANSACTIONS AND INVENTORY CONTROL AS WELL.
SO STARTING WITH THE FIRST OPPORTUNITY OF IMPROVEMENT, FIREWALL GOLF PARK PROCESSES APPROXIMATELY 320,000 IN MERCHANDISE SALES ANNUALLY, SELLING ABOUT 18,000 ITEMS THROUGH THE TWO PRO SHOPS COMBINED, UM, TO ENSURE ACCURATE ACCOUNT AND CONTROLS AT THE PRO SHOPS, WE PERFORM VARIOUS TESTS AND ANALYSIS, THE FIRST BEING AN INVENTORY COUNT OF THE PRO SHOP MERCHANDISE.
UM, AND WE DID FIND, UM, VARIANCES BETWEEN THE ITEMS IN STOCK AND THE ITEMS THAT WERE LISTED IN THE INVENTORY SYSTEM.
SO WE SAMPLED 201, UH, SKUS OUT OF THE 533, UH, SKU POPULATION BETWEEN BOTH STORE LOCATIONS.
OF THESE 96 SKUS HAD NO DISCREPANCY AT ALL.
84 HAD AN ITEM QUANTITY DIFFERENCE BETWEEN ONE AND 10.
13 SKUS HAD A QUANTITY DIFFERENCE BETWEEN 11 AND 25, AND THEN EIGHT HAD A DIFFERENCE GREATER THAN 25.
WE ALSO PULLED AN INVENTORY TRANSACTION REPORT FOR A THREE MONTH PERIOD BETWEEN JANUARY, 2025 AND MARCH, 2025.
AND WE FOUND THAT 133 SKUS HAD CARRIED NEGATIVE BALANCES, ONE WITH A BALANCE AS LOW AS NEGATIVE 845 ITEMS AT ONE POINT.
UH, SEVEN DIFFERENT SKUS WERE FOUND TO HAVE A NEGATIVE INVENTORY BALANCE FOR ONE TO THREE CONSECUTIVE MONTHS.
AND THESE WERE PREDOMINANTLY GOLF BALLS.
UH, THIS IS LIKELY DUE TO JUST NOT PUTTING IN, UM, SALES OR TRANSFER CHANGES IN THE SYSTEM ONCE THEY OCCURRED ON THE FLOOR.
UM, OR, UM, IF A CASHIER SOLD SOMETHING UNDER THE WRONG SKU THAT COULD ALSO AFFECT THIS.
UH, ADDITIONALLY, FIREWALL MANAGEMENT PERFORMS ANNUAL INVENTORY COUNTS OF ALL MERCHANDISE AND MAKES ADJUSTMENTS IN THE INVENTORY SYSTEM ACCORDINGLY.
SO WE TOOK THAT DATA, UH, THE ONE IN 2024, AND THE ONE IN 20 20, 25 FOR EACH OF THE LOCATIONS, AND WE JUST ANALYZED IT.
AND, UM, SO I'M GONNA READ OFF THE RESULTS OF THAT.
A TOTAL OF OF 114 SKUS WERE IDENTIFIED AS HAVING DIFFERENCES IN THEIR RESPECTIVE QUANTITIES BETWEEN THE SYSTEM AND THE ACTUAL PHYSICAL INVENTORY.
UM, 61 SKUS WERE FOUND TO BE SHORT, AND 53 WERE FOUND TO BE OVER 3,363 ITEMS WERE EITHER ADDED OR REMOVED IN THE SYSTEM TO BRING THE INVENTORY TO BALANCE AFTER THE COUNT
[00:25:01]
WAS PERFORMED.UM, SO 849 ITEMS HAD TO BE INCREASED.
AND THEN, UM, ABOUT 2,500 DECREASED AND ITEM SHORTAGES WERE VALUED AT ABOUT $15,000.
AND ITEM OVERAGES VALUED AT ABOUT, UH, $30,000 2025 AT BRIDGES.
A TOTAL OF 132 SKUS WERE IDENTIFIED AS HAVING DIFFERENCES IN THEIR RESPECTIVE QUANTITIES.
UM, 43 SHORT 89, OVER ABOUT 5,500 ITEMS WERE EITHER ADDED OR REMOVED.
UM, THIS WAS INCREASED BY 8 29 ITEMS, OR DECREASED BY 4,700 ITEMS, AND THE SHORTAGES WERE VALUED AT 14,400 AND OVERAGES WERE VALUED AT 52,000 AT THE OLDEN LAKES PRO SHOP IN 2024, A TOTAL OF 126 SKUS HAD DIFFERENCES.
61 SKUS WERE OVER, UH, 2,600 INDIVIDUAL ITEMS WERE EITHER ADDED OR REMOVED.
UM, THIS INCLUDED, UM, ITEMS INCREASED.
UM, 1500 ITEM, UH, SORRY, 1500 ITEMS WERE INCREASED.
AND THEN 16, ABOUT A THOUSAND ITEMS WERE DECREASED.
UM, SHORTAGES WERE VALUED AT 19,000.
OVERAGES WERE VALUED AT 14,000.
AND THEN IN 2025, A TOTAL OF 146 SKEWS WERE IDENTIFIED AS HAVING DIFFERENCES.
A HUNDRED SHORT 46 OVER, UM, ABOUT 4,500 INDIVIDUAL ITEMS WERE ADDED OR REMOVED, INCREASED BY 3,800 OR DECREASED BY 640 ITEMS. SHORTAGES WERE VALUED AT, UH, ALMOST 59,000 AND OVERS VALUED AT 7,300
SO, CONTRIBUTING FACTORS, UM, AS I SAID BEFORE, SOME SKEW, SOME ITEMS MIGHT NOT HAVE THE PHYSICAL S SKEW, UM, ATTACHED TO IT OR THE CORRECT IDENTIFICATION OF THE SKU IS DEPENDENT ON THE CASHIER, AND THEY COULD CHARGE IT UNDER THE WRONG SKU, WHICH COULD CREATE DIFFERENCES IN QUANTITIES.
UM, AND THEN SEVERAL ITEMS THAT APPEAR VISIBLY DIFFERENT ARE SOMETIMES ORGANIZED UNDER THE SAME SKU THAT WE NOTICED.
PURCHASE ORDERS MAY NOT BE PROP PROMPTLY RECORDED IN THE INVENTORY SYSTEM WHEN MERCHANDISE IS RECEIVED FROM THE VENDOR.
MERCHANDISE TRANSFERS BETWEEN LOCATIONS ARE NOT PROMPTLY RECORDED IN THE INVENTORY SYSTEM.
AND THEN, UM, INVENTORY COUNTS ONLY OCCUR ANNUALLY.
SO OUR RECOMMENDATION IS THAT MANAGEMENT ENSURE ALL MERCHANDISE HAS A CLEARLY VISIBLE AND SCANNABLE SKEW LABEL, OR PROVIDE CASHIERS WITH REFERENCE GUIDES THAT CLEARLY SHOW THE PRODUCT IN ITS ASSOCIATED QUEUE.
FOR ITEMS WHERE PHYSICAL LABELS ARE IMPRACTICAL, CONSIDER FURTHER SEPARATING NOTICEABLY DIFFERENT MERCHANDISE TO THEIR OWN SKUS.
ENSURE ALL MERCHANDISE PURCHASED OR TRANSFERRED IN STOCK IS IN STOCK AT THE CORRECT PRO SHOPS, UH, IS PROMPTLY UPDATED IN THE INVENTORY SYSTEM.
REVIEW NON COUNT ADJUSTMENTS FOR THE CAUSE AND APPROPRIATENESS, PERFORM CYCLE COUNTS OF THE INVENTORY THROUGHOUT THE YEAR AND REPORT RESULTS TO THE MANAGING DIRECTOR.
DEVELOP A POLICY THAT ESTABLISHES AN ACCEPTABLE VARIANCE RANGE AND MAINTAIN COUNT RESULTS FOR MANAGEMENT ANALYSIS.
MANAGEMENT CONCURS, UM, THEY'RE GOING TO IMPLEMENT A MONTHLY INVENTORY CYCLE.
UH, ENSURE ALL ITEMS IN THE INVENTORY HAVE A SCANNABLE BARCODE, UH, ENSURE ALL NEW MERCHANDISE IS ENTERED IN THE INVENTORY SYSTEM IMMEDIATELY UPON ARRIVAL.
UM, ENSURE ALL TRANSFERS OF MERCHANDISE BETWEEN PRO SHOPS WILL BE RECORDED IN THE INVENTORY SYSTEM PRIOR TO THE PHYSICAL MOVEMENT OF THE ITEMS. AND THEN, UM, AN INVENTORY VARIANCE PROCEDURE WILL BE DEVELOPED AS WELL.
AND THE IMPLEMENTATION DATE IS JANUARY 1ST, 2026.
I'LL PASS IT OFF TO VIN TO TALK ABOUT THIS NEXT ONE.
UM, THE NEXT, UH, NUMBER TWO IS INVENTORY MANAGEMENT FOR ALCOHOL.
AS WE KNOW, ALCOHOL IS A BIG SELLER AT FIRE WHEEL GOLF.
AND, UH, ANNUALLY AROUND 97,000 DRINKS ARE BEING SOLD, WHICH AMOUNTS TO AROUND $415,000.
UM, WE PERFORMED AN INVENTORY COUNT OF THE BRANDING, IRON AND GRILL 64 ALCOHOL, WHICH INCLUDES BEER, LIQUOR, AND WINE, AND FOUND VARIANCES BETWEEN THE ITEMS IN STOCK AND ITEMS LISTED IN THE INVENTORY SYSTEM.
THIS INVENTORY INCLUDED EIGHT TYPES OF BEER, SIX TYPES OF LIQUOR, AND THREE TYPES OF WINE.
17 BOTTLED ALCOHOL STALKS, UH, KEEPING UNIT WHERE INVENTORIED BETWEEN BOTH STORE LOCATIONS.
OF THESE FOUR SKUS HAD NO DISCREPANCY.
NINE HAD I ITEM QUANTITY DIFFERENCE BETWEEN ONE AND 10, UH, ONE BETWEEN 11 AND 15, THREE GREATER THAN 15 NEGATIVE INVENTORY BALANCES.
USING AN INVENTORY TRANSACTION REPORT, WE FOUND THAT EVERY ALCOHOL BRAND HAD A NEGATIVE INVENTORY BALANCE DURING CALENDAR YEARS 2023 AND 2024.
FOR EXAMPLE, BOTH MILLER LIGHT AND COORS LIGHT INVENTORY SYSTEM BALANCE WAS NEGATIVE FOR AN EXTENDED PERIOD OF TIME, EVENTUALLY REACHING NEGATIVE FIVE 90 AND NEGATIVE 1,154 UNITS RESPECTIVELY.
AS WE, THAT'S PRETTY MUCH WHAT AARON ALSO SAID IN THE INVENTORY MANAGEMENT.
IT WAS KIND OF THE SAME, UH, ISSUE HERE.
UM, INTERNAL INVENTORY COUNTS.
[00:30:01]
REPRESENTATIVE FROM A DIFFERENT DEPARTMENT WITH THE ASSISTANCE OF FIRE WHEEL MANAGEMENT PERFORMS AN INVENTORY COUNT OF BOTTLED BEER AND LIQUOR EACH MONTH TO ENSURE PHYSICAL STOCK ALIGN WITH INVENTORY SYSTEM.WHEN VARIANCE IS FOUND, THE COUNT IS CORRECTED, AND THE INVENTORY SYSTEM, UM, WE COMPARED EACH ITEM'S ADJUSTMENT TO PURCHASES FOR 2024.
TO CALCULATE THE PERCENTAGE VARIANCE AND FOUND THE FOLLOWING NEGATIVE PERCENTAGES, VALUE INDICATE SHORTAGES, UH, IDENTIFIED AND POSITIVE PERCENTAGE VALUES INDICATE OVERAGES.
UH, INSTANCES OF, UH, INVENTORY VARIANCES ARE NOTED DURING THESE INTERNAL COUNTS, BUT ROOT CAUSE ANALYSIS OR CORRECTIVE ACTIONS WERE NOT DOCUMENTED.
UH, FIVE OF THE 14 BRANDS INVENTORIED HAD VARIANCES EXCEEDING 2% CONTRIBUTING FACTORS, UH, PURCHASE ORDERS ARE NOT ALWAYS PROMPTLY ENTERED INTO THE SYSTEM WHEN NEW ALCOHOL SHIPMENTS ARRIVE FROM VENDORS.
TRANSFER BETWEEN LOCATIONS ARE NOT ACCURATELY OR PROMPTLY ENTERED IN THE INVENTORY SYSTEM.
CASE SIZE IS INCORRECTLY ADDED TO THE INVENTORY SYSTEM.
EXCHANGES ARE PROVIDED, UH, WITHOUT BEING RECORDED IN THE INVENTORY SYSTEM.
AND WRONG SKUS ARE CHARGED DURING PURCHASE.
OUR RECOMMENDATION IS THAT, UH, MANAGEMENT SHOULD ENSURE ALL MERCHANDISE PURCHASED OR TRANSFERRED BETWEEN LOCATION IS PROMPTLY UPDATED IN THE INVENTORY SYSTEM.
ENSURE ALL CUSTOMER EXCHANGES ARE RECORDED IN THE INVENTORY SYSTEM.
REVIEW ALL ADJUSTMENT FOR THE COST CAUSE AND APPROPRIATENESS, UH, PROVIDE REFRESHER TRAINING TO CASHIER SERVERS REGARDING CORRECTIVE INVENTORY PRACTICES MANAGEMENT RESPONSE WAS CONCUR.
ACTION PLAN WAS WITH THE ADDITION OF NEW LEAD CHEF FIREWALL WILL STRENGTHEN THEIR INVENTORY CONTROL PRACTICES AND BUILD MORE CONSISTENT TRACKING PROCEDURES.
UH, IT IS IMPORTANT TO NOTE THAT HIGHEST VARIANCE IDENTIFIED WAS 4%, WHICH FIRE WHEEL BELIEVES FALSE WITH AN ACCEPTABLE STANDARD BASED ON THEIR VOLUME, UH, AND MOVING FORWARD.
MANAGEMENT WILL, UM, COMPLY TO THE RECOMMENDATIONS LISTED ABOVE IMPLEMENTATION DATE JANUARY 1ST, 2026.
FIRE WHEEL GOLF PARK PREVIOUSLY OFFERED A MEMBERSHIP PROGRAM.
ALTHOUGH THIS PROGRAM WAS TERMINATED IN 20 19, 82 MEMBERS REMAINED, UH, GRANDFATHERED UNDER PRIOR TERMS. UH, PER MANAGEMENT.
MOST MEMBERS PAY MONTHLY WHILE SOME MAKE ANNUAL PAYMENTS.
UH, WE REVIEWED ALL 82 MEMBERS PAYMENT IN 2024 AND FOUND, UM, MEMBERSHIP MONTHLY DO DIFFER ACROSS MEMBERSHIP ACCOUNTS.
WE OBSERVED FOUR MONTHLY RATES, A HUNDRED THIRTY FIVE, A HUNDRED SIXTY FIVE, A HUNDRED NINETY, AND $195.
MEMBERSHIP REVENUE TOTALED 152,000 WITH 4,604 ROUNDS PLAYED.
IF EVERY ROUND WERE PRICED AT A REGULAR BRIDGES COURSE RATE REVENUE WOULD BE, UH, $270,000.
IF THESE WERE PLAYED AT OLD LAKES AT THE REGULAR RATE, THE REVENUE WOULD'VE TOTALED $220,000.
18 OF THE 82 MEMBERS WERE FOUND TO HAVE MISSED MONTHLY DUES, BUT WERE STILL PERMITTED TO PLAY ROUNDS.
THREE MEMBERS HAD NO PAYMENTS FOR THE ENTIRE YEAR, BUT PLAYED A TOTAL OF 190 ROUNDS WITHOUT CHARGE.
SIX MEMBERS MISSED SEVEN TO 11 MONTHS OF DUE, BUT STILL PLAYED DURING THOSE MONTHS WITHOUT CHARGE.
NINE MEMBERS MISSED ONE TO SIX MONTHS OF DUE, BUT STILL PLAYED DURING THOSE MONTHS WITHOUT CHARGE.
RECOMMENDATIONS, UH, MANAGEMENT SHOULD CONSIDER PHASING OUT THE MEMBERSHIP PROGRAM IF MANAGEMENT DECIDES TO CONTINUE PERMITTING.
MEMBERSHIP PLAY POLICIES AND PROCEDURES SHOULD BE DEVELOPED TO TRACK AND ENFORCE MEMBERSHIP USE AND PRIVILEGES MANAGEMENT RESPONSES.
FIRE WHEEL INTENDS TO PHASE OUT THE GRANDFATHERED PROGRAM, UH, IN ALIGNMENT WITH THE AUDIT RECOMMENDATION.
EFFECTIVE OCTOBER 1ST, 2025 FIRE WHEEL STAFF WILL ISSUE FORMAL WRITTEN NOTICE TO ALL CURRENT MEMBERSHIP HOLDERS THAT THE PROGRAM WILL BE TERMINATED IN SEPTEMBER 30, 20, 26.
THIS WILL PROVIDE ALL ACTIVE MEMBERS ONE YEAR OF PRIVILEGES UNTIL IT'S OFFICIALLY DISCONTINUED.
NEXT YEAR, FIRE WHEEL WILL IMPLEMENT THE FOLLOWING PROCESSES EACH MONTH, MEMBERS WILL BE CHARGED THEIR RESPECTIVE DUES USING THEIR CREDIT CARD ON FILE.
IF A PAYMENT IS DECLINED, THE MEMBERSHIP WILL BE CONTACTED, MEMBER WILL BE CONTACTED IMMEDIATELY, AND THEIR MEMBERSHIP WILL BE SUSPENDED UNTIL THE ISSUE IS RESOLVED.
THE MANAGING DIRECTOR WILL BE, UH, PROVIDED WITH A LIST DETAILING EACH MEMBER STATUS AND PAYMENT HISTORY EACH MONTH.
ANY OUTSTANDING PAYMENTS FROM BEFORE THIS ACTION PLAN'S IMPLEMENTATION DATES WILL NOT BE PURSUED DUE TO THE LEVEL OF DIFFICULTY AND UNLIKELY OF RESOLUTION.
IMPLEMENTATION DATE, OCTOBER 1ST, 2025.
ADDRESS THIS ITEM, PLEASE, PLEASE DO
[00:35:01]
MATTER OF FACT, I GOT SEVERAL ON THAT YOU MIGHT ADDRESS.I DID WANT TO POINT OUT THAT, UH, STAFF, UH, DOES RECOMMEND THAT WE, UH, END THE MEMBERSHIP PROGRAM AS WE'VE SEEN.
UM, THEY, WE DO HAVE A GROUP, UH, THAT ARE, THAT ARE IN THIS MEMBERSHIP CATEGORY THAT TAKE UP A LOT OF OUR, OF OUR TEE TIMES.
UH, WHILE WE ENJOY THEM AT THE GOLF COURSE, THERE IS REVENUE THAT CAN BE PROVIDED TO THE GOLF COURSE AS PART OF THIS PROGRAM.
BUT WHAT I DO ALSO WANT TO, UH, MAKE NOT ONLY THE COMMITTEE AWARE, BUT ALSO THE COUNCIL AWARE THAT THIS GROUP IS ONE OF OUR MOST VOCAL GROUPS AS WELL.
SO IF WE DO GO DOWN THIS ROAD, UH, I WOULD EXPECT THAT THERE WOULD BE CALLS NOT ONLY TO THE CITY COUNCIL, THE MAYOR, BUT THE CITY MANAGER ABOUT ENDING THIS PROGRAM.
AND SO THAT IS SOMETHING TO CONSIDER AS STAFF DOES RECOMMEND THIS, BUT WE WANNA MAKE SURE THAT AS A, UH, TEAM, WE'RE ALL ON BOARD ON GOING FORWARD WITH THIS TRANSITION.
LEMME MAKE SURE I UNDERSTAND WEAND, WE'RE GOING TO END THE MEMBERSHIP PROGRAM, UH, ESPECIALLY THE THE EXISTING ONE.
ARE WE SAYING IN THE FUTURE THERE WILL NOT BE A MEMBERSHIP PERIOD AT THIS POINT? IT'LL JUST BE BASED ON FEES THAT A GOLFER WOULD PAY ON A NORMAL BASIS, IS THAT WE'RE SAYING? CORRECT.
THAT WOULD BE OUR RECOMMENDATION TO MOVE FORWARD AS A MEMBERSHIP BEFORE THEY HAD PERKS ALONG WITH IT, WHICH ALLOWED THEM TO MAYBE GET GOLF COURTS AND THINGS OF THAT NATURE WITHOUT HAVING TO PAY THAT.
SO THE, THE BACKGROUND ON THIS AND, AND DON KENNEDY IS HERE.
HE CAN HELP ME IF I, UH, IF I MISS ANYTHING HERE.
DON, IF YOU WOULDN'T MIND JOINING, JOINING.
UH, THE, THE BACKGROUND WITH THE, THE MEMBERSHIP PROGRAM IS WHEN ANOTHER COURSE CLOSED WITHIN THE CITY.
THIS WAS, UH, THE CITY PROVIDING, UH, SERVICES TO, UH, THAT GROUP THAT LOST THEIR ABILITY TO PLAY IN A, IN A, IN A MEMBERSHIP OPPORTUNITY.
UH, AND AS IT WAS STATED, THE PROGRAM WAS ENDED, BUT THOSE THAT WERE ALREADY IN THE PROGRAM WERE GRANDFATHERED IN.
AND SO, UH, THE, THE RATES HAVEN'T CHANGED.
UH, THE PROGRAM PARAMETERS HAVEN'T, UH, HAVEN'T CHANGED.
SO BECAUSE OF OUR GENEROSITY AND BRINGING THEM IN AND ALLOWING 'EM TO HAVE MEMBERSHIPS, YOU'RE SAYING THAT WE MIGHT GET SOME, UM, NEGATIVE FEEDBACK FROM THEM AS A RESULT OF THAT? CORRECT? YES, SIR.
THAT'S DEFINITELY A POSSIBILITY.
UM, SOUND LIKE, LIKE MR. OT HAS SOMETHING HERE.
WELL, I, I WAS JUST CURIOUS, NOW, THIS PROGRAM, YOU SAID THERE WAS A, THERE WAS A COURSE THAT HAD CLOSED AND WE OPENED UP A MEMBERSHIP TO ALLOW PEOPLE TO PLAY AT OUR COURSE.
WHAT COURSE WAS IT THAT CLOSED? I BELIEVE THIS WAS THE EASTERN HILLS, UH, COUNTRY CLUB THAT WENT IN.
THEY CLOSED, UH, WE OFFERED FOR THEIR MEMBERS TO COME OVER TO OUR COURSE.
SO BASICALLY FOR 10 YEARS, ROUGHLY, THAT'S HOW LONG THIS HAS BEEN GOING ON.
AND, UH, THE PEOPLE THAT ARE ABLE TO USE THAT HAVE BEEN USING THIS MEMBERSHIP PROGRAM, ARE WE CERTAIN THAT IT'S ALWAYS THEM? OR IS IT THEY HAVE SOME SORT OF A TAG THAT THEY COULD HAVE BEEN USED, UH, DIFFERENT PEOPLE COULD BE USING AND GAMING THE SYSTEM, SO TO SPEAK? UH, WAS, I MEAN, THEY'RE IN THE PROFILES IN THE FIELD.
SO IT SHOWS THEM AND EVERYTHING.
IT'S A VERY COMMON GROUP THAT PLAYS, UH, SO THE PRO SHOP STAFF, UH, THE, THE PROFESSIONALS OUT THERE KNOW THESE INDIVIDUALS, SO IT WOULD BE DIFFICULT FOR SOMEBODY TO, TO COME IN AND TRY AND USE THEIR CREDENTIALS, UH, TO PLAY.
AND DID WE THINK ABOUT PERHAPS JUST RAISING THE MEMBERSHIP FEE TO SOMETHING SO THAT IF THEY'RE LIKE A, A PRO ZOOMER, SOMEONE THAT REALLY WANTED TO PARTICIPATE AND THEY DOUBLED THE FEE WITH, UH, WHAT WAS THAT CONSIDERED? SURE.
SO THAT WAS SOMETHING THAT WAS NOT NECESSARILY CONSIDERED, UH, AS A RECOMMENDATION.
UH, WHAT WE DID CONSIDER IS THAT, UH, THIS, THIS, THIS GROUP, UM, THEY'VE, THEY'VE ENJOYED THIS, UH, BENEFIT FOR, FOR SOME TIME.
IT'S TAKING AWAY PLAY FROM OTHER INDIVIDUALS THAT WOULD PLAY, PAY THE NORMAL, UH, RATES.
UM, AND THEY'RE ALL, UH, AS, AS THE CHAIRMAN SAID, UH, BENEFITS THAT THEY HAVE OF EARLIER AVAILABILITY TO T TIMES AND THINGS OF THAT NATURE.
AND SO THERE'S, UH, OTHERS WITHIN THE COMMUNITY THAT ARE LOSING OUT ON OPPORTUNITIES FOR, FOR TEE TIMES AND NORMAL PLAY.
THIS SHOULD BRING SOME RELIEF TO YOU.
UH, WHAT ARE YOUR THOUGHTS? WELL, I'M, I'M DEFINITELY IN AGREEMENT.
THE, UH, THE MEMBERSHIPS ARE, YOU KNOW, UH, BASICALLY THEY INCLUDE RANGE BALLS, GREENFIELD CART FEE, AND THEN MOST OF THE GUYS, YOU KNOW, IT IS A VERY, YOU KNOW, I COULD PROBABLY, LIKE ON FRIDAY OR FRIDAY AT THE BRIDGES, I COULD PROBABLY GUESS HE, BUT WHEN WE OPEN THIS UP TO PEOPLE, STRANGERS COMING, YOU KNOW, SO THE SPENDING ABILITY IS GONNA BE, IT IS, IT'S, THEY,
[00:40:01]
YOU KNOW, THEY'RE PLAYING FIVE, SIX DAYS A WEEK.THEY'RE GETTING THEIR MONEY FOR IT.
SO DO YOU REALLY SEE A LOSS IN PARTICIPATION AS A RESULT OF, UH, OUR DISCONTINUING A MEMBERSHIP THAT WAS NOT BEING PAID ANYWAY?
TO, TO, YOU KNOW, OR WHATEVER.
SOFTWARE'S NOT SET, YOU KNOW, IF WE HAD A, IF WE HAD A MEMBERSHIP DEPARTMENT, WHAT MAY BE DIFFERENT.
ANYONE ELSE? UH, I'LL JUST WAIT UNTIL YOU FINISH THE WHOLE REPORT AND TRY TO GO BACK AND GET SOME OF THE OTHER AREAS THAT WE COME TO SO FAR.
UH, WITH THAT, UH, CONTINUE PLEASE.
UH, OUR NEXT ONE IS GOLF LESSONS AND LEAGUES.
THE PGA SPONSORS LOCAL JUNIOR LEAGUES TO PROMOTE THE SPORT OF GOLF AND YOUNGER GENERATIONS.
THE CITY MAY BENEFIT FROM SUCH A LEAGUE BY PROMOTING GARLAND AS A DESTINATION FOR QUALITY RECREATIONAL ACTIVITIES.
ONE SUCH LEAGUE IS HELD AT FIRE WHEEL FROM MARCH THROUGH JUNE EACH YEAR FOR CHILDREN'S AGES SEVEN TO 15.
COST OF MEMBERSHIP IS FI 485 PER PLAYER, WHICH INCLUDES 3 75 COACHING FEES.
PLAYERS RECEIVE COURSE PLAY INSTRUCTION AND USE OF RANGE BALLS AT FIRE WHEEL.
THE LEAGUE IS MANAGED INDEPENDENTLY BY A CITY EMPLOYEE EMPLOYED GOLF PROFESSIONAL, AND PROCEEDS ARE NOT PROCESSED THROUGH THE CITY.
THERE IS NO CITY POLICY OUTLINING PARAMETERS EMPLOYED GOLF PROFESSIONALS.
CITY EMPLOYED GOLF PROFESSIONALS ARE PERMITTED BY MANAGEMENT TO PROVIDE PRIVATE GOLF LESSONS USING FIRE WHEELS, PREMISES, AND RESOURCES OUTSIDE THEIR EMPLOYMENT SHIFTS.
THESE LESSONS ARE MANAGED INDEPENDENTLY BY GOLF PROFESSIONALS AND PROCEEDS ARE NOT PROCESSED THROUGH THE CITY.
THERE IS NO CITY POLICY OUTLINING THESE PARAMETERS.
RECOMMENDATIONS MANAGEMENT SHOULD WORK WITH ADMINISTRATION TO DEVELOP AND IMPLEMENT A GOLF, UH, POLICY REGARDING GOLF LEAGUES AND LESSONS PROVIDED BY GOLF PROFESSIONALS USING FIRE WHEEL PROPERTY AND RESOURCES MANAGEMENT RESPONSE, CONCUR ACTION PLAN, CONDUCT DISCUSSIONS WITH AREA COURSES AS WELL AS CITY MANAGEMENT TO DEVELOP A WRITTEN PROCEDURE RELATED TO LEAGUE GROUP AND INDIVIDUAL LESSONS IF NECESSARY.
CAN WE STOP THERE? UH, GO BACK TO THE PGA JUNIOR LEAGUE? YES, SIR.
ARE YOU SAYING THAT THE MONIES, FOR EXAMPLE, IN THE SECOND PARAGRAPH, ONE SUCH LEAGUE IS HELD AT FAR WHEEL FOR MARCH THROUGH JUNE EACH YEAR FOR THE CHILDREN AGE SEVEN TO 15 COST OF MEMBERSHIP IS FOUR $85 PER PLAYER, WHICH INCLUDES 375 COACHING FEE PLAYERS RECEIVE COURSE PLAY INSTRUCTION AND USE OF THE RANGE BALLS AT FAR WHEEL.
AND THIS MONEY DOES NOT GO THROUGH THE ACCOUNTING SYSTEM AT FARWELL.
THE LEAGUE MANAGES INDEPENDENCE.
SELF-EMPLOYED PROCEEDS ARE NOT PROCESSED THROUGH THE CITY.
DON, CAN YOU SPEAK TO THAT FOR US? YEAH.
SO PG JUNIOR LEAGUES, THE NATIONAL PGA OF AMERICA WITH THE PGA OF AMERICA KIDS, A UNIFORM ON IT BACKPACK SEASON, THEY HAVE THE TOURNAMENT TAKE OF OUR, OUR, UH, OTHER COURSES IN THE AREA.
SO, SO THAT'S KIND OF THE, THE MOST FACILITIES IF WE'RE GONNA GROW THE GAME.
$375 COACHING FEE GOES TO ME AND I HIDE IT OUT IN MY WAY, IS ON SATURDAY, LATE AFTERNOON, 5 34 6, NOT INTERRUPT.
BUSY PLUG RANGE BALLS ON WEDNESDAY.
WE PRACTICE ON WEDNESDAY FROM, UH, FIVE 30 TO SEVEN.
[00:45:02]
THE, YOU APPLY RANGE BALLS FOR THERE.SO WHY WOULDN'T THE MONEY THOUGH GO BE PROCESSED THROUGH THE COURSE? WELL, BECAUSE THEY, I MEAN, THERE'S A BUNCH OF, THEY REGISTER ONLINE TO ALL GO TO THE BJ OF AMERICA OF AMERICA SENDS ME GO THROUGH THE SYSTEM, CITY WOULD'VE TO READ.
UH, MR. CHAIR, I, IF I MAY, UH, UH, SPEAK ON THIS A LITTLE BIT AS WELL, UH, I'LL BE, UH, I'LL BE TRANSPARENT AND SAY THAT MY DAUGHTER'S A MEMBER OF THIS, UH, OF THIS PROGRAM,
UH, SO, SO I HAVE A LITTLE BIT OF, UH, OF, UH, EXPERIENCE, UH, WITH IT.
UH, I HAVE A DAUGHTER THAT'S, THAT'S A GOLFER AND SHE PARTICIPATES IN THE FIRE WHEEL, UH, PROGRAM.
SO AS DON SAID, UH, THIS IS A PROGRAM THAT IS RUN BY THE, UH, THE JUNIOR PGA.
SO TYPICALLY WE HAVE PROGRAMS ASSOCIATED WITH THE, WITH THE JUNIOR P-G-A-P-G-A OF TEXAS WHERE THEY'RE UTILIZING THE COURSES TO BUILD THE GAME OF GOLF.
AND THIS IS WHERE WE WANTED TO, IN OUR RESPONSE, UH, HAVE UNTIL JANUARY TO TALK TO SOME OF THE OTHER COURSES.
UM, THIS SUMMER, MY DAUGHTER WENT TO A GOLF CAMP AT CHERYL PARK AND RICHARDSON, AND THE CAMP WAS HELD AT CHERYL PARK, BUT IT WAS HELD BY COACHES THAT WERE, UH, ESSENTIALLY IN THIS, IN THE SAME, UH, MANNER, JUST HOSTING AT THE, AT THE GOLF COURSE.
SO IT'S AN OPPORTUNITY FOR THE COURSE TO, TO GIVE BACK TO THE KIDS, TO BE ABLE TO, UH, SERVICE YOUTH OUT THERE.
NOW, WHERE WE DO SEE BENEFIT THROUGH THE PROGRAM IS, UH, SAY, UH, UM, SON WANTS TO GO OUT AND PLAY GOLF, UH, SON'S COVERED BY THE JUNIOR PGA PROGRAM FOR, FOR RANGE BALLS, THINGS OF THAT NATURE.
UH, THEY BRING DAD, THEY BRING GRANDPA, DAD, GRANDPA GOES AND GETS FOOD.
THEY GO AND THEY PLAY A GREEN FEE AS PART OF THEIR, THEIR VISIT OUT THERE.
THERE'S SOME, THERE'S SOME, SOME GIVE AND TAKE WITH ASSOCIATED WITH THE, WITH THE PROGRAM, BUT, UM, UH, WHAT WE HAVE SEEN, UH, IT IS COMMON TO HAVE THESE PGA PROGRAMS AT, AT COURSES.
UH, IT REALLY COMES DOWN TO WHAT WE WANT TO BE ABLE TO PROVIDE AS IT RELATES TO, TO THE SERVICES.
I DON'T THINK MY CONCERN IS AT ALL WITH THE PROGRAM, BECAUSE I'VE CERTAINLY BENEFITED FROM THE PROGRAM MYSELF AS A RESULT OF, UH, OUR GOLF PRO.
IT'S, IT'S, I THINK THE CONCERN BECOMES, UH, THE USE OF OUR FACILITIES AND THE MONIES, HOW THEY'RE BEING REPORTED AND RECORDED.
SO MY QUESTION THEN TO, UH, OUR AUDIT TEAM IS YOUR RECOMMENDATION IS WHAT, AGAIN, CHAIRMAN, IF I MAY ANSWER THAT.
BASICALLY WE'RE TRYING TO, WE UNDERSTAND THE, THE PROGRAM SIGNIFICANCE, UH, ASKING THE CITY MANAGER TO COME UP WITH THE POLICY, THE PARAMETERS, WHAT'S ALLOWED, WHAT'S NOT ALLOWED, YOU KNOW, ON THE, UM, THE OTHER GOLF LESSONS.
SOME OF THE OTHER CITIES HAVE CERTAIN AGREEMENTS WITH THE GOLF PROFESSIONALS.
THEY ARE PROVIDING, FOR EXAMPLE, CHERYL PARK HAS AN AGREEMENT WITH THEIR GOLF PROFESSIONALS.
SO WE NEED TO HAVE SOME KIND OF PARAMETERS SO IT'S CLEAR FOR DON AND HIS, HIS STAFF, IT'S CLEAR ON, ON OUR HALF, ON OUR, YOU KNOW, WHAT ARE THEY SUPPOSED TO PROVIDE? WHAT RESOURCES IS THE SILLY WILLING TO ACCEPT, UH, IS TO PROVIDE.
SO THAT IS BASICALLY WHAT WE ARE RECOMMENDING.
YEAH, MATT, I WAS JUST GONNA MENTION, UM, I MEAN, I AGREE WITH WHAT JED'S SAYING THERE, BUT IF, AS FAR AS IT FLOWING THROUGH OUR SYSTEMS, UM, WE, WE COULD START THE MORE CONTROL THE CITY HAS ON IT, THAT'S GONNA START COMPLICATING EMPLOYMENT STATUS FOR WAY THIS IS, AND TAX TREATMENT FOR INCOME.
SO I THINK WE DO NEED TO TAKE A LOOK AT HOW OTHER PEOPLE ARE TREATING THIS, BUT I THINK THE MAIN CONCERN TO ME HERE IS, IS THE AGREEMENT ON THEY'RE USING OUR FACILITIES.
SO I JUST WANTED TO ADDRESS WHY THE REVENUES AREN'T COMING THROUGH.
THE LESS CONTROL WE HAVE, THE LESS TAX LIABILITY ON THE CITY.
AND YOUR RECOMMENDATION IN THE FUTURE, DO YOU HAVE ONE? THIS IS EXACTLY WHAT, UH, JED SAID AND WHAT THE CITY MANAGEMENT RESPONSE IS TO TAKE A LOOK AT WHAT, HOW OTHERS ARE TRADING THIS, BUT I THINK THE, UH, UH, IS MORE ON THE LIABILITY AND RISK THAN TAKING IN THE MONEY, SO TO SPEAK, INTO OUR SYSTEMS. GREAT.
I WAS THINKING ABOUT THE LIABILITY SIDE OF IT.
IF WE DIDN'T HAVE ENOUGH FRAMEWORK FOR THE, UH, FOR HOW WE, UH, THE, JUST HAVING A GENERAL FRAMEWORK OF HOW WE HAVE THESE PROGRAMS, HOW THEY INTERFACE WITH, UH, WITH THE CITY, AND JUST SO THAT THEY HOLD OUR, OUR COURSE HARMLESS FROM DAMAGES THEY HAVE, IF THERE'S A, HEAVEN FORBID, A LIGHTNING STRIKE OR SOMETHING LIKE THAT, YOU KNOW, WE DON'T WANNA BE HELD LIABLE.
I DON'T KNOW WHETHER THEY HAVE A, THEY'VE, UH, SIGNED A GENERAL LI UH, LIABILITY RELEASE AND, YOU KNOW, THE MORE THAT WE COULD JUST HAVE A, A GENERAL POLICY, BECAUSE THIS WOULD ALSO SPILL OVER TO THINGS LIKE, UH, HOW WE TREAT, UH, SOCCER ACADEMY OR SOMETHING LIKE THAT IN ANOTHER INSTANCE TOO.
I THINK THIS SUPPORT IT, I, I, I GUESS A SIMILAR, YOU KNOW, CONTEXT HELPS, RIGHT? SO IF YOU THINK ABOUT THE OTHER LEAGUES THAT WE
[00:50:01]
PARTNER WITH TO USE CITY FACILITIES, I'LL USE GARLAND SOCCER ASSOCIATION, FOR EXAMPLE.WHEN YOU REGISTER TO PARTICIPATE IN GARLAND SOCCER ASSOCIATION, YOU'RE PAYING THE LEAGUE, NOT THE CITY.
EVEN THOUGH GSA USES OUR FACILITIES, AND THERE'S, WHAT WE'RE SUGGESTING HERE IS THAT WE DO, WHAT WE'VE DONE WITH GSA AND OTHER LEAGUES IS TO HAVE ON THE BACKEND A SEPARATE AGREEMENT THAT TALKS ABOUT THE, HOW THE LEAGUE PARTICIPATES WITH THE, THE CITY AND, AND WHAT THAT RELATIONSHIP IS.
IF IT'S, UH, WHERE'S THERE LIABILITY? IS THERE MONEY EXCHANGE.
BUT, UH, TO OUR CFO'S STANDPOINT, YOU KNOW, THE, THE LESS MONEY WE CAN HAVE SORT OF FLOWING OUR DIRECTION, THE LESS RISK IS INVOLVED AND, AND TAX LIABILITY AS WELL.
NOT THAT THERE'S, THERE'S NOT A SORT OF STANDARD BEST PRACTICE.
I THINK IF YOU LOOK ACROSS MUNICIPAL COURSES, EVERYBODY DOES IT A LITTLE DIFFERENTLY.
UH, WE WANNA FIND OUT WHAT'S BEST FOR GARLAND TO DO AND, AND JUST TAKE SOME TIME TO DO THAT OVER THE NEXT FEW MONTHS.
YEAH, NO, WELL, LET ME SAY THIS TO, TO ALL OF YOU THAT THESE ARE THE TYPES OF DISCUSSIONS THAT I WOULD THINK THAT WE WOULD HAVE AS IT RELATES TO THESE TYPES OF MATTERS.
WE TALK ABOUT IT SUCH THAT OUR CONSTITUENTS RECOGNIZE, THEY UNDERSTAND EXACTLY WHAT'S GOING ON, THAT WE'RE AWARE OF, BUT MORE IMPORTANTLY, WE HAVE A REASON.
WE HAVE A RATIONALE FOR WHY WE'RE DOING WHAT WE'RE DOING.
SO I DO APPRECIATE THIS DISCUSSION, AND I DO AGREE WITH THE, UH, RECOMMENDATIONS.
SO WITH THAT, PLEASE CONTINUE.
NUMBER FIVE, EMPLOYEE COMPLIMENTARY BENEFITS AND DISCOUNT FIRE WHEEL GOLF PARK OFFERS DISCOUNTS FOR FIRE WHEEL GOLF EMPLOYEES, NON-FIRE WHEEL EMPLOYEES AND GARLAND RESIDENTS AS FOLLOWS, FIRE WHEEL EMPLOYEE GREEN FEES, A HUNDRED PERCENT OFF FIRE WHEEL EMPLOYEE MERCHANDISE WHOLESALE PRICE PLUS 10% MARKUP, FIRE WHEEL EMPLOYEE FOOD, 50% OFF FOR RETAIL PRICE.
NON-FIRE WHEEL EMPLOYEE GREEN FEES, 25% OFF GARLAND RESIDENT, UH, RESIDENT GREEN FEE, 25% OFF.
UM, FOR THE GREEN FEES OVER THE AUDIT SCOPE, UH, FIRE WHEEL PERMITTED COMPLIMENTARY GREEN FEES TO FIRE WHEEL EMPLOYEES 1,622 TIMES 216 OF THOSE WERE LISTED AS WALK-INS WITHOUT ANY NOTES OR DOCUMENTATION OF VERIFICATION, INCLUDING NAME, CUSTOMER PROFILE, OR EMPLOYEE ID.
ADDITIONALLY, WE FOUND THAT 16 NON-FIRE WHEEL EMPLOYEES FROM EIGHT SEPARATE DEPARTMENTS RECEIVED THIS BENEFIT MERCHANDISE FIRE WHEEL ISSUED MERCHANDISE DISCOUNTS 977 TIMES TO FIRE WHEEL EMPLOYEES OVER THE AUDIT SCOPE OF THESE 711, WHERE WALK-INS ARE ALMOST 72% AND THEREFORE NOT LINKED TO A CUSTOMER PROFILE OR EMPLOYEE ID, MAKING THE PLAYERS' DISCOUNT ELIGIBILITY UNVERIFIABLE NON-FIRE WHEEL EMPLOYEE DISCOUNTED GREEN FEES DURING THE SCOPE OF THE AUDIT FIRE WHEEL HAS ISSUED THE CITY EMPLOYEE GREEN FEE DISCOUNT.
2,952 TIMES 1,176 OF THESE WERE LISTED AS WALK-INS, 39%, AND THEREFORE NOT LINKED TO A CUSTOMER PROFILE OR EMPLOYEE ID.
BECAUSE OF THIS, THE PLAYER'S DISCOUNT ELIGIBILITY CANNOT BE VERIFIED.
RECOMMENDATIONS MANAGEMENT SHOULD DEVELOP AND IMPLEMENT A POLICY OUTLINING CONTROLS THAT REQUIRE CASHIERS TO VERIFY DISCOUNT ELIGIBILITY WITHIN THE SYSTEM.
RECORD THE NAME AND DEPARTMENT FOR EVERY EMPLOYEE DISCOUNT ISSUED AND PROHIBIT DESIGNATING ISSUED DISCOUNTS AS WALK-INS WITHOUT A NAME, PERFORM A PERIODIC REVIEW OF ISSUED COMPLIMENTARY GREEN FEES AND DISCOUNT ISSUED HAND REVIEW FOR APPROPRIATENESS MANAGEMENT RESPONSE, CONCUR ACTION PLAN.
STAFF WILL ENSURE THAT COMPLIMENTARY ROUNDS OR DISCOUNTS WILL BE ENTERED INTO THE POS SYSTEM AND INCLUDE THE NAME OF THE PLAYER OR INDIVIDUAL RECEIVING THE DISCOUNT.
A MONTHLY REVIEW OF ALL EMPLOYEE AND OTHER DISCOUNTS WILL BE CONDUCTED, DISCUSSED, AND REVIEWED BY THE DIRECTOR AND MANAGING DIRECTOR.
IMPLEMENTATION DATE, JANUARY 1ST, 2026.
NOW I'LL PASS IT OVER BACK TO AARON.
NUMBER SIX IS REGARDING TABC REQUIREMENTS.
SO PER SECTION 1 0 6 OF THE TEXAS ALCOHOLIC BEVERAGE CODE, IF AN ALCOHOL RELATED VIOLATION OCCURS AT THE BUSINESS, THE EMPLOYER MAY AVOID BEING HELD RESPONSIBLE IF THE BUSINESS REQUIRES ITS EMPLOYEES TO BE CERTIFIED IN TABC SELLER SERVER TRAINING.
THE EMPLOYEE IN QUESTION ACTUALLY HAS A CURRENT CERTIFICATION, AND THE EMPLOYER HASN'T DIRECTLY OR INDIRECTLY ENCOURAGED THE EMPLOYEE TO BREAK THE LAW, LIKE SERVING MINORS OR INTOXICATED PERSONS.
ADDITIONALLY, DEPARTMENTAL POLICY REQUIRES EMPLOYEES SERVING ALCOHOL TO COMPLETE MAINTAIN A-T-A-B-C SELLER SERVER CERTIFICATION AND REQUEST SERVER IDENTIFICATION IF, IF THEY APPEAR YOUNGER THAN 45 YEARS OF AGE.
UH, INTERNAL AUDIT FOUND THAT TWO EMPLOYEES SERVED ALCOHOL WITHOUT OBTAINING A-T-A-B-C SELLER SERVER CERTIFICATE.
FIVE EMPLOYEES SERVED ALCOHOL WITH EXPIRED TABC CERTIFICATES.
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ON OUR FIELD TESTS, SERVERS WERE FOUND NOT TO CONSISTENTLY REQUEST IDENTIFICATION FOR CUSTOMERS THAT APPEAR YOUNGER THAN 45 YEARS OF AGE.UH, PER SECTION 11 OF THE TEXAS ALCOHOLIC BEVERAGE CODE, ALL PERMITS SHOULD ALWAYS BE DISPLAYED IN A CONSPICUOUS PLACE.
UM, THE TEXAS ADMINISTRATIVE CODE SECTION 31 AND THE ALCOHOLIC BEVERAGE CODE SECTION FIVE REQUIRES PERMIT HOLDERS TO DISPLAY A SIGN THAT DETAILS WITH DETAILS FOR OBTAINING PUBLIC INFORMATION OR FILING A COMPLAINT.
I FOUND THAT ALL PERMITS, INCLUDING THE MIXED BEVERAGE PERMIT, ARE FACING AWAY FROM THE PUBLIC'S VIEW AT BRANDING IRON, AND THAT THE TABC REQUIRED PUBLIC INFORMATION COMPLAINT SIGN IS MISSING FROM THE BRANDING IRON.
SO OUR RECOMMENDATION IS CREATE A-T-A-B-C CERTIFICATION TRACKING LOG, VERIFY STATUS AT ONBOARDING, DON'T PERMIT SERVER SERVING DUTIES UNTIL THE CERTIFICATE'S OBTAINED OR RENEW RENEWAL IS COMPLETED.
PROVIDE REFRESHER TRAINING TO CASHIERS AND SERVERS REGARDING PRACTICES FOR SERVING ALCOHOL AND ENSURE ALL PERMITS BASED PUBLIC BASED THE PUBLIC AND POST THE MISSING REQUIRED SIGN AT BRAIDING IRON MANAGEMENT CONCURS, A-T-A-B-C CERTIFICATE FOLDER WILL BE MAINTAINED CONTAINING VALID CERTIFICATES FOR ALL FOOD AND BEVERAGE EMPLOYEES.
CERTIFICATES WILL BE REVIEWED PERIODICALLY TO ENSURE ALL EMPLOYEES REMAIN CERTIFIED AND UP TO DATE.
REGULAR TRAINING WILL BE PROVIDED TO ENSURE ALL EMPLOYEES UNDERSTAND AND COMPLY WITH THEIR ALCOHOL SERVING POLICIES.
ALL TABC REQUIRED SIGNAGE WILL BE, UH, PROMINENTLY DISPLAYED IN APPROPRIATE LOCATIONS AS MANDATED.
AND THE IMPLEMENTATION DATE IS TOMORROW OCTOBER 1ST.
MR. CHAIRMAN, MAY I, UH, PLEASE? YES.
UH, JUST WANTED TO, UH, TO, TO, TO BRING THIS OUT.
UH, WE HAD, UH, DISCUSSION ABOUT THE ALCOHOL VARIANCES IN ITEM NUMBER TWO.
UH, YOU'VE GOT, UH, DISCUSSIONS ABOUT TABC, AND THEN THERE'S GONNA BE AN ITEM, UH, NEXT ABOUT, UH, FOOD SERVICE.
SO, UH, WANTED TO LET YOU KNOW THAT, UH, DON HAS TAKEN THE INITIATIVE WITHIN THE LAST TWO MONTHS TO TERMINATE OUR EXISTING LEAD WITHIN OUR, UH, RESTAURANT AND THE BRANDING IRON.
HE WAS RESPONSIBLE FOR, UH, THE ORDERING AND INVENTORY OPTIONS THAT, UM, WE'RE RESPONSIBLE FOR.
SO THAT WAS A, A, UH, DEFICIT THAT WE SAW THERE.
AND SO WE DID TAKE ACTION FROM THAT, AND THAT'S SOMETHING THAT WAS APPROVED BY KEVIN SLAY AND MYSELF TO MOVE FORWARD.
WE'RE REQUIRED TO SIGN OFF ON THOSE DOCUMENTS.
WE SAW THE, THE NEED FOR THAT.
SO WE DO HAVE THAT POSITION POSTED OUT, AND WE'RE HOPING TO GET, UH, SOMEONE NEW IN QUICKLY THAT CAN HELP US, UH, REDEFINE WHAT OUR SERVICE AVAILABILITIES ARE.
BUT ON TOP OF THAT, AND I BELIEVE, UH, THAT THE AUDIT, UH, TEAM HAS TALKED TO YOU ABOUT THIS MR. CHAIR, IS THAT WE ARE ALSO HIRING A FOOD AND BEVERAGE CONSULTANT TO COME INTO THE COURSE FOR A THREE MONTH PERIOD.
UH, SO THIS IS AN INDIVIDUAL THAT'S, UH, WORKING THROUGH OUR PURCHASING, UH, REQUIREMENTS RIGHT NOW TO, UH, ENSURE THAT WE ARE, UH, MEETING OUR, UH, TABC REQUIREMENTS, OUR FOOD SAFETY REQUIREMENTS.
UH, SO REALLY REIMAGINE WHAT OUR SERVICE, UH, AVAILABILITIES ARE, UH, OUT AT, UH, AT FIRE WHEEL AND CHAIRMAN, IF I MAY ADD SOMETHING TO THAT, I REALLY DO APPRECIATE MANAGEMENT, UH, PHIL, KEVIN, DON, FOR TAKING SOME OF THESE DIFFICULT DECISIONS, UH, AS WE WERE PERFORMING THIS AUDIT.
REALLY DO APPRECIATE THAT, THAT SHOWS HOW MUCH THEY CARE FOR THE CITIZENS AS WELL AS THE CONTROLS MATTERS TO THEM.
UM, WE HAVE TO HAVE THE RIGHT PEOPLE TO DO THE RIGHT THING.
SO, UH, IT WAS NOT AN EASY DECISION ON MANY OF THESE, BUT THEY HAVE GONE ABOVE AND BEYOND TO MAKE SURE THAT, THAT THEY CARE FOR THE, THE STRUCTURE OF THE, OF THE CITY AND THE CONTROLS OUT THERE.
SO I JUST WANTED TO MAKE A COMMENT ON THAT.
SOMETIMES WE JUST HAVE TO TAKE PAUSE, JUST, JUST THINK ABOUT WHAT'S, WHAT'S TAKING PLACE AND, UH, IS THERE A DIRECTOR THAT, AND I, MAYBE THAT'S THE POSITION I I, IS THAT THE POSITION THAT YOU'RE SPEAKING OF SOMEONE WHO'S ACTUALLY GOING TO BE IN CHARGE OF, IN CONTROL OF ASSURING THAT THE, UH, ESPECIALLY TABC, BUT AT ENTIRE FOOD SERVICE AREA IS COMPLIANT.
SO DON IS THE DIRECTOR OF GOLF, AND SO DON WILL LOOK AT THESE RECOMMENDATIONS, CONTINUE TO IMPLEMENT THEM AS THEY GO FORWARD.
IT'S ALSO IMPORTANT THAT WE RECEIVE, UH, INSPECTIONS FROM TABC AND DURRON, CORRECT ME IF I'M WRONG, WRONG, BUT WE HAVEN'T BEEN FLAGGED FOR ANY OF THESE ITEMS FROM TIBC, TABC, THE ENFORCEMENT AGENCY IN CHARGE OF THESE ITEMS. I HEAR YOU SAY DON IS THE DIRECTOR OF GOLF, BUT I'M ASKING NOW ABOUT A SPECIFIC PARTICULAR, WE HAVE TWO FOOD SERVICE AREAS, CORRECT? CORRECT.
AND EACH ONE OF THOSE HAVE FOOD EMPLOYEES THAT HAVE TO BE CERTIFIED, SO ON AND SO FORTH.
AND I GUESS THAT'S WHAT I'M ASKING.
THIS NEW POSITION THAT YOU'RE SPEAKING OF, IS THAT GOING TO BE ONE WHERE THAT PERSON IS DIRECTLY RESPONSIBLE FOR ASSURING THAT THOSE THINGS ARE, ARE TAKEN CARE OF? CORRECT, YES, SIR.
THAT THE, THERE WILL BE A LEAD SHAFT POSITION, UH, THAT IS RESPONSIBLE FOR, UH, THE OPERATIONS OF THE, UH, OF THE COURSE, UH, AS IT RELATES TO THE FOOD AND BEVERAGE OVERALL.
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DON IS THE DIRECTOR OF GOLF OUT AT THE OPERATION.SO FROM THE, THE TEE BOX TO THE RESTAURANT, UH, HE WOULD BE RESPONSABLE FOR THAT, THAT OPERATION, YOU KNOW, AND, AND, AND I, I LIKE THAT WE GO THROUGH EVERY YEAR WE, WITH DAC SALES AND SERVER CERTIFICATION, AND I'VE ALWAYS HIRED A CONSULTANT KNOWING THAT HE WILL MAKE A RIGHT.
COUNCILMAN, I THINK IS YOUR DIRECTOR OF
I KNOW MY NAME'S ON PERMIT SEE PERMIT.
AND SO THEY, THAT THAT'S DONE.
AND PEOPLE OFF WHEN NEED TO KNOCK ON WOOD, WE'VE BEEN LUCKY.
BUT IT'S, YOU KNOW, AND STRENGTHEN UP FEATURES.
I THINK TALKING ABOUT IT, STRENGTHENING SURE THAT SOMEBODY DOESN'T GO VOID FOR ONE DAY AND SELL IT.
AND, YOU KNOW, I THINK THE IDEA OF BRINGING OUT, UM, THE 90 DAY CONSULTANT IS CERTAINLY GOING TO BE, UH, SOMETHING THAT WILL SET US IN A GOOD DIRECTION.
AND HOPEFULLY WE'LL HELP YOU IN THE WAY OF, UH, OF GIVING YOU SOME STAFF THERE THAT, BECAUSE THERE'S SO MUCH MORE WE'RE TALKING ABOUT, UH, PATHOGENS, WE'RE TALKING ABOUT SO MUCH MORE IN THE WAY OF WHAT WITH THE FOOD SERVICE AREA THAN WE TALK ABOUT WHEN WE TALK ABOUT JUST THE GOLF ITSELF.
I LOOK FORWARD TO YOU BRINGING IN THE, UH, CONSULTANT AND GIVING YOU RECOMMENDATIONS, MS. WILLIAMS. THANK YOU, MR. CHAIR.
FIRST THING, I WANNA APOLOGIZE TO YOU.
THINGS UNRAVEL ON ME, SO I APOLOGIZE FOR, FOR BEING LATE.
UH, I'M NOT SURE DON OR PHILLIP, EITHER ONE OF YOU FEEL THIS QUESTION.
UM, YOU MENTIONED TWO POSITIONS YOU WERE RECRUITING FOR.
I'D LIKE TO KNOW, DO WE HAVE A, A JOB DESCRIPTION, UH, BACKGROUND CHECK, WHAT'S IN PLACE TO ENSURE THAT WE GET THIS TIME? HOPEFULLY THE RIGHT PERSON FOR THE RIGHT JOB AT THE RIGHT TIME.
AND MR. CITY MANAGER, YOU CAN CHIME IN HERE.
UH, BUT WHAT FIRST QUESTION IS, UH, DO WE HAVE A JOB DESCRIPTION IN PLACE THAT CLEARLY DEFINES THOSE DUTIES OF THOSE INDIVIDUALS WHO'D BE RESPONSIBLE FOR THAT? YES, SIR.
SO, UM, COUNCIL MEMBER WILLIAMS, UH, WE ARE UNABLE TO POST A POSITION WITHOUT A JOB DESCRIPTION.
SO WE HAVE A JOB DESCRIPTION THAT'S BEEN, I KNOW AND DEFINED FROM THE, I WAS HOPING SO.
AND SO THAT, UH, THAT JOB DESCRIPTION IS, HAS BEEN REVIEWED NOT ONLY BY, UH, DON'S TEAM, BUT THE HUMAN RESOURCES TEAM.
SO IT IS OUT THERE ON OUR, ON OUR WEBSITE FOR, UH, FOR RECRUITMENT, UH, RIGHT NOW.
AND SO, UH, WE WILL GO THROUGH THE INTERVIEW PROCESS AS WE DO WITH ANY POSITION TO ENSURE THAT WE, UH, MAKE THE BEST ATTEMPT TO GET, UH, THE, THE BEST CANDIDATE IN BASED ON THEIR EXPERIENCE AND HOW THEY, THEY INTERVIEW.
UH, AS IT RELATES TO THE CONSULTANT, I BELIEVE THAT'S THE SECOND POSITION YOU'RE REFERRING TO.
UH, WE HAVE A, UH, AN INDIVIDUAL THAT WE'VE, UH, BEGUN, UH, HAVING CONVERSATIONS WITH THAT HAS OVER 30 YEARS OF EXPERIENCE IN BOTH THE FOOD AND, UH, BEVERAGE INDUSTRY.
UH, SO WE ARE LOOKING AT THAT BEING AN AGREEMENT BASED ON A, UM, A PROFESSIONAL SERVICES AGREEMENT.
AND IN WORKING WITH THE PROCUREMENT TEAM, UH, THERE'S GOING TO BE A SCOPE OF WORK THAT, UH, HAS BEEN DEFINED BY KEVIN SLAY AND DON AS IT RELATES TO THE SPECIFIC ITEMS THEY'RE LOOKING AT FROM, UH, THE AMOUNT OF FOOD THAT'S PREPARED DAILY TO HOW WE LOG CERTIFICATES TO, UH, HOW WE SERVE OUT INTO THE, UH, INTO THE RESTAURANTS.
AND WHAT'S THE TIMELINE FOR RECRUITMENT OF THOSE TWO POSITIONS? SO WE ARE GOING THROUGH THE PROCUREMENT PROCESS RIGHT NOW FOR THE, UH, THE CONSULTANT, UH, THE POSITIONS POSTED RIGHT NOW FOR THE CHEF POSITION.
SO DEPENDING ON THE APPLICANTS THAT COME IN, UH, WE'RE HOPING TO HAVE THAT PRETTY QUICK.
DON'T HAVE A DEFINITE TIMEFRAME ON THAT RIGHT NOW.
AND THE, THE SECOND QUESTION IS, UH, BACKGROUND CHECKS, UH, AS IT RELATES TO, UH,
[01:05:01]
POSITIONS, UH, PROFESSIONAL SERVICES AGREEMENTS DO NOT ALWAYS HAVE A, UH, A BACKGROUND CHECK, BUT AS IT RELATES TO, UH, CITY PERSONNEL, THERE IS A BACKGROUND CHECK ASSOCIATED WITH, UH, WITH BEING HIRED ON.SO IS THERE ONE REQUIRED OR IS THERE NOT FOR CITY STAFF? THERE, THERE IS, YES, SIR.
YEAH, WE BACKGROUND CHECK EMPLOYEES BEFORE WE HIRE THEM.
AND SECONDLY, UH, BASED ON, I DON, YOU SAID YOU'VE NEVER BEEN, BEEN FLAGGED BY TT UH, BY THE, BY THE STATE AGENCY.
UM, WHAT, ONCE THESE POSITIONS ARE FILLED, WHAT, WHAT, UH, PROCEDURAL OR POLICY CHANGES DO YOU ENVISION GOING FORWARD TO ENSURE THAT WE ARE SOLID WITH THE FOOD SERVICE AND THE OTHER AREAS THAT THESE TWO PEOPLE WILL BE RESPONSIBLE FOR? YEAH, SO CHEF WOULD BE HAVING MEETINGS EVERY WEEK DURING, AND WE HAVE THE DOCUMENTS, YOU KNOW, ON, ON THE THIRD PARTY COMING.
SO THIS IS THE CHEF YOU'RE TALKING ABOUT, RIGHT? THE JEFF ONCE GETS ESTABLISHED AND, AND I DO THAT NOW.
YOU, OKAY, SO YOU RIGHT NOW YOU ARE DOING THAT, BUT I'VE TAKEN THE, BUT ONCE WE, WE HIRE, GO AHEAD.
WELL THEN, THEN, THEN WE HAVE A THIRD PARTY COMING IN LOOKING AT THESE CERTIFIC AND THINGS LIKE THAT.
SO A LOT OF PEOPLE ARE LOOKING AT THESE CERTIFICATES.
SO AGAIN, A LONG WAY WITH BE MAKING SURE THEY ARE ABLE TO SERVE OUT.
ANY THOUGHTS? UH, THE ONLY THOUGHT IS, I THINK DON, UH, UH, ALLUDED TO IT THAT, UH, WE DO HAVE AN OPPORTUNITY TO FIND, UM, OUR STANDARD OPERATING PROCEDURES, UH, FROM KIND OF THE OUTSIDE LOOKING IN, UH, INTO THE ORGANIZATION.
UH, WE DO HAVE A, UM, VERY HIGH TURNOVER RATE IN OUR, IN OUR RESTAURANT, AND THAT'S DUE TO THE SUMMER WORK NATURE.
YOU HAVE, UM, COLLEGE AGED, UH, INDIVIDUALS THAT COME IN WORK PART-TIME.
THEY'RE, THEY'RE, THEY'RE IN AND OUT.
UH, SO THAT'S SOMETHING TO KEEP IN MIND AS IT RELATES TO THESE POSITIONS.
AND DON CORRECT ME IF I'M WRONG, I THINK THAT, UH, THOSE, THOSE POSITIONS START, UH, SOMEWHERE AT 14, $15 AN HOUR.
SO, UH, IT'S A, IT'S A COMPETITIVE POSITION TO, UH, TO COMPETE AGAINST FOR, FOR OTHER SALARIES.
SO THERE'S TURNOVER IN THOSE AREA.
AND SO HAVING THOSE PROCEDURES, UH, DOCUMENTED WILL HELP US AS WE MOVE FORWARD.
I'M, I'M GONNA RESTART AT NINE.
AND MY LAST QUESTION IS, UH, MAYBE TO TO YOU DON, UH, HAVE YOU HAD ANY EXPERIENCES IN THE RECENT PAST OR DISTANT PAST, UH, GOLFERS AND RELATIONSHIPS AND, UH, YOU, YOU GET PARTICULARLY TO THE, THE DRINK SERVICE? UH, I, I KNOW I, UM, SHOULD BE CUT OFF.
WHAT, BUT YOU KNOW ME, I KNOW YOU, UH, HAVE YOU HAD ANY, UM, WHERE THE, THE SERVER ENDS UP BEING PRESSURED, UH, DISTURBING ADDITIONAL ALCOHOLIC DRINKS? YEAH.
WELL, I'M, I'M GONNA SAY THAT WE, YOU KNOW, WE ARE REALLY HAVE SOMEBODY THAT, THAT WE BELIEVE IS INTOXICATED.
IF I'M NOT THERE, THEN THEY MATCH NOT THERE.
AGAIN, WE'VE NEVER HAD A PROBLEM POT, YOU KNOW, WE DRINKING MATCH, BUT NOTHING TEAM, THEY DO AN OUTSTANDING JOB SERVING ALCOHOL.
THEY MAY BE REMISS THE PERMIT, THEY LET IT EXPIRE FOR A DAY OR TWO OR MONTH.
BUT, UH, AS FAR AS O AS FAR AS SERVING SOMEBODY, IT JUST DOESN'T HAPPEN.
ALRIGHT, THERE ARE NO OTHER QUESTIONS AS PROCEED.
UM, FOOD SERVICE CERTIFICATES PRO THE TEXAS ADMIN CODE.
ALL EMPLOYEES MUST COMPLETE A FOOD HANDLING TRAINING COURSE WITHIN 30 DAYS OF EMPLOYMENT, AND CERTIFICATES MUST BE MAINTAINED AT THE FOOD ESTABLISHMENT.
ONE LONGTIME EMPLOYEE WAS FOUND TO HAVE PREPARED AND SERVED FOOD AS LATE AS AUGUST, 2025, BUT HAS NOT HAD A VALID FOOD SERVICE CERTIFICATE SINCE 2018.
[01:10:01]
OUR RECOMMENDATION IS THAT MANAGEMENT CREATE A FOOD CERTIFICATION TRACKING LOG, VERIFY STATUS AT ONBOARDING AND, AND NOT PERMIT SERVING DUTIES UNTIL CERTIFICATE IS OBTAINED OR RENEWED.UM, MANAGEMENT CONCURS AS SERVE SAFE FOOD HANDLER CERTIFICATE FOLDER WILL BE MAINTAINED CONTAINING VALID CERTIFICATES FOR EVERY FOOD AND BEVERAGE EMPLOYEE.
CERTIFICATES WILL BE REVIEWED QUARTERLY TO ENSURE ALL EMPLOYEES REMAIN CERTIFIED AND UP TO DATE IMPLEMENTATION DATE.
CHAIRMAN, IF I MAY ADD SOMETHING TO THAT ONE.
UM, UH, THIS IS MAINLY FOR PUBLIC, UH, TO UNDERSTAND.
RIGHT AFTER WE OBSERVED IT, WE WANTED TO MAKE SURE, UM, OUR HEALTH SAFETY STANDARDS WERE UP TO PAR.
SO WE ACTUALLY CONTACTED THE HEALTH DEPARTMENT.
THEY ACTUALLY SENT THE INSPECTORS THERE AND, UH, OBVIOUSLY FOUND TO BE SUFFICIENT FOR THE OPERATION.
SO I JUST WANT, WANT YOU TO KNOW, ALTHOUGH HE DID NOT HAVE THE CERTIFICATION, UM, HEALTH DEPARTMENT WENT AND, AND DID THEIR DUE DILIGENCE.
SO JUST, JUST WANT YOU TO KNOW ONE OTHER THING IF I MAY.
COUNCILMAN WILLIAMS. UH, YOU WERE NOT HERE WHEN I MENTIONED IT.
UH, IN ADDITION TO WHAT PHIL AND, AND, AND DON MENTIONED, KEVIN SLAY HAS ACTUALLY PUT IN A, A PRACTICE OF SENDING ONE OF HIS EMPLOYEES FROM CUSTOMER SERVICE TO DO SURPRISE VISIT, UH, AND, AND DO SURPRISE INVENTORY SURPRISE, TABC CERTIFICATION CHECK ON A MONTH, MONTHLY BASIS.
HE'S BEEN TRAINING AND HE ACTUALLY REQUESTED US TO FURTHER TRAIN HER GOING FORWARD.
SO WE WILL HELP HER WITH THE TYPE OF AUDITS THAT WE DO, UH, AND FURTHER PROVIDE THAT SERVICE TO HER AND SO SHE CAN PERFORM FOR THE DUTIES.
AND THIS PERSON IS VERY EXCITED ABOUT DOING THESE KIND OF STUFF.
KUDOS TO KEVIN FOR, FOR PUTTING THAT PROGRAM TOGETHER WHERE HE ACTUALLY SENDS THIS PERSON TO DO ALL THESE TESTS.
THERE ARE TWO GENERIC ACCOUNTS WITHIN THE POINT OF SALE INVENTORY SYSTEM THAT ARE SHARED BY MULTIPLE EMPLOYEES.
THESE ACCOUNTS HAVE BEEN USED FOR THE MANUAL ADJUSTMENT OF INVENTORY AND SALES OVER THE SCOPE OF THE AUDIT USING GENERIC ACCOUNTS WITH SHARED LOGIN CREDENTIALS PREVENTS MANAGEMENT FROM TRACING ACTIONS WITHIN THE SYSTEM TO THE RESPONSIBLE INDIVIDUALS INCREASING THE RISK OF FRAUD.
SO OUR RECOMMENDATION IS THAT MANAGEMENT DEACTIVATE THE GENERIC ACCOUNTS MANAGEMENT CONCURS.
THE TWO EXISTING GENERIC USER ACCOUNTS ARE CURRENTLY UTILIZED WHEN A SINGLE EMPLOYEE OPERATES BOTH GOLF SHOP COMPUTERS.
THE GENERIC ACCOUNTS WILL BE DEACTIVATED.
EACH GOLF SHOP EMPLOYEE WILL BE ASSIGNED TWO SEPARATE USER ACCOUNTS, ONE FOR EACH POS SYSTEM, COMPUTER UTILIZED.
THIS CHANGE WILL ENSURE ALL SYSTEM ACTIVITY IS INDIVIDUALLY TRACKABLE AND ACCOUNTABLE WHILE STILL ALLOWING EMPLOYEES TO OPERATE BOTH WORKSTATIONS WHEN NEEDED.
IMPLEMENTATION DATE, SEPTEMBER 30TH, TOURNAMENTS AND EVENTS, FIRE WHEEL GOLF PARK MANUALLY MAINTAINS AN ELEC ELECTRONIC CALENDAR FOR TOURNAMENTS AND OTHER EVENTS.
WE SAMPLED EVENTS FROM CALENDAR, UM, IN EXHIBIT A TO VERIFY IF EACH SCHEDULED EVENT HAD A CORRESPONDING T SHEET RECORD, A CONTRACT ON FILE, A PAYMENT REC RECORDED AND FOUND THE FOLLOWING FOR 20 23 19 OF THE 36 SAMPLED EVENTS, HAD NO CONTRACTS ON FILE.
WHILE ALL TOURNAMENTS HAD PAYMENTS IN THE POS SYSTEM, WE COULD NOT VERIFY THE ACCURACY OF PAYMENTS FOR 2024.
FIVE OF THE 17 SAMPLED, UH, TOURNAMENTS EVENTS SCHEDULED, HAD NO CONTRACT ON FILE.
WHILE ALL TOURNAMENTS HAD PAYMENTS IN THE POS SYSTEM, WE COULD NOW VERIFY ACCURACY OF PAYMENTS.
WE DO WANNA ACKNOWLEDGE THE, UH, IMPROVEMENT IN KEEPING CONTRACTS ON FILE.
OUR RECOMMENDATIONS MANAGEMENT SHOULD DEVELOP AND IMPLEMENT A POLICY REGARDING TOURNAMENT EVENT SCHEDULING, DOCUMENTATION, AND PER PAYMENT VERIFICATION.
KEEP A COMPLETE CONTRACT ON FILE FOR EVERY TOURNAMENT EVENT.
INCLUDE SIGNED CONTRACT, ANY AMENDMENTS OR EMAILS, DEPOSIT PROOF, AND THE FINAL INVOICE.
RECONCILE THE FINAL INVOICE TO THE SIGNED CONTRACT PLUS THE CHANGE LOCK IF THE AMOUNT DIFFERS AT A BRIEF NOTE ON THE INVOICE, EXPLAINING THE VARIANCE AND FILE IT WITH THE PACKET MANAGEMENT RESPONSE.
NOT ALL TOURNAMENTS, EVENTS ARE ACTIVITIES ARE ALIKE.
EVENTS AND TOURNAMENTS WILL BE BOOKED USING OUTLOOK CALENDAR SYSTEM FOR EACH EVENT.
THE FOLLOWING DOCUMENTS MUST BE ATTACHED TO THE CALENDAR ENTRY, CONTRACT FUNCTION DETAIL.
FINAL INVOICE PAYMENT RECEIPT.
A HARD COPY OF THESE DOCUMENTS WILL BE MAINTAINED IN THE PHYSICAL OFFICE, UH, IN A PHYSICAL FILE BY THE TOURNAMENT COORDINATOR.
A MONTHLY REVIEW WILL BE CONDUCTED TO CONFIRM THAT ALL EVENTS AND TOURNAMENTS HAVE BEEN INVOICED OR PAID IN FULL IMPLEMENTATION DATE.
MR. CHAIR, IF I MAY, UM, UH, COMMENT ON THIS BRIEFLY.
UH, JUST WANTED TO, UH, TO MAKE A QUICK NOTE ASSOCIATED WITH THIS, UH, TAGGING ON TO A COMMENT THAT, UH, JEVON MADE THAT THERE HAS BEEN AN IMPROVEMENT, UH, IN THE DOCUMENTATION OF TOURNAMENTS.
SO, UH, THOUGHT IT WOULD BE BENEFICIAL THAT DURING THE BULK OF, UH, THE TIME OF THIS AUDIT, THERE
[01:15:01]
WAS A PREVIOUS TOURNAMENT AND EVENT COORDINATOR THAT, UH, IS EMPLOYMENT WAS TERMINATED FROM THE CITY.THAT WAS SOMETHING THAT WAS SEEN AT THE CORE.
SO THERE IS A NEW TOURNAMENT AND EVENT COORDINATOR THAT IS MAINTAINING THIS PROGRAM AND HAS BEEN FOR ABOUT A YEAR AND A HALF, RIGHT? OKAY.
BOTH RESTAURANTS LOCATED AT FIREWALL TAKE BOTH CASH AND CREDIT CARD PAYMENTS.
THERE'S ONE REGISTER AT EACH LOCATION.
CASHIERS USE USE THEIR OWN POINT OF SALE SYSTEM LOGIN CREDENTIALS TO TRACK THEIR TRANSACTIONS AND CREDIT CARD TIPS AT THE END OF THEIR RESPECTIVE SHIFTS.
EACH CASHIER REMOVES CASH FROM THE CASH REGISTER EQUAL TO THE AMOUNT OF THEIR CREDIT CARD TIPS.
THE CASH REGISTER CONTAINS A MIX OF CUSTOMER CASH PAYMENTS IN THE DAYS BEGINNING CHANGE FUND.
I A FOUND THAT THE CHANGE FUND WAS PERIODICALLY RECORDED AS BEING SHORT OF HIS ISSUED AMOUNT ACCORDING TO THE RESTAURANT OPENING AND CLOSING RECORDS.
THIS IS DUE TO THE CASHIERS TAKING THEIR CREDIT CARD TIPS OUTTA THE CASH REGISTER, WHICH INCLUDES THE CHANGE FUND MANAGEMENT SHOULD CONSIDER PAYING CREDIT CARD TIPS THROUGH THE EMPLOYEE PAYROLL SYSTEM MANAGEMENT CONCURS FIREWALL.
WILL EMPLOYEES WILL BEGIN RECEIVING ALL TIPS THROUGH PAYROLL, PRO PAYROLL PROCESSING RATHER THAN WITHDRAWING THEM FROM THE CASH REGISTER.
THIS CHANGE APPLIES TO ALL CREDIT CARD TIPS AND GRATUITIES, AND THE IMPLEMENTATION DATE IS JANUARY 1ST, 2026.
QUESTION MS. WILLIAMS. COUNSEL WILLIAMS? YES.
UH, YOU MENTIONED, UH, CAN YOU, WHAT WAS THE SLIDE PLEASE? YOU, YOU, YOU SAID THE REGISTERS WERE SHORT AT THE END OF THE DAY, UH, BECAUSE OF THIS PRACTICE.
HAS HAVE IMPROVEMENTS ALREADY BEEN MADE.
I SEE YOU HAVE A TARGET DATA JANUARY 26TH DONE.
DON, CAN YOU, WHAT ARE YOU DOING TO ENSURE THAT THEY DO, THEY DO BRING IT TO BALANCE, UM, WHEN THEY CAN.
UM, SO NORMALLY THIS IS DURING LIKE, UH, MORE OFF SEASON WHEN THEY DON'T GET AS MANY CASH PAYMENTS TO BE ABLE TO PAY OUT THE TIPS.
BUT ALL THE RECORDS SHOW THAT THEY DID BRING IT UP TO BALANCE.
UM, SO USING THE, SORRY, PAYING OUT THE TIPS AND THE PAYROLL SYSTEM WILL RESOLVE THIS ISSUE.
WHAT, WHAT WHAT'S BEING DISCUSSED IS IF, IF I'M A SERVER AND, AND YOU COME IN AND, AND GET A SANDWICH OR WHATEVER, AND YOU TIP ME $20, IF I'VE HAD NO BUSINESS ON THAT PARTICULAR DAY AND I TAKE MY, I ADJUST MY TIP BECAUSE THAT, THAT CITY AND I TAKE $20 CASH OUT OF THE CAB, NINE INSTEAD OF 300 CASH DOLLARS BECAUSE YOU TIPPED ME $20.
AND I'M GONNA GET MY TIP BECAUSE HE'S ALREADY GOT THEIR MONEY MM-HMM
AND THEN THE FOLLOWING DAY WHEN WE HAD BUSINESS KNOW WE WOULD, WE WOULD, UH, MAKE THAT 20.
AND GOING FORWARD, GOING FORWARD, JUST PUT ON THE CHECK.
SO THERE'LL, THERE'LL BE ON THE CHECK THAT EMPLOYEE RECEIVES, SO YOU WON'T HAVE THAT PROBLEM THAT JUST MENTIONED, RIGHT? CORRECT.
AND THAT'S TARGETED FOR JANUARY 26TH, RIGHT? CORRECT.
AND KEVIN IS IN THE MIDDLE OF THAT? YES SIR.
KEVIN WILL BE PART OF THAT PROCESS AS WELL? YES, SIR.
NUMBER 11, CHANGE FUND THE BRANDING.
IRON RESTAURANT'S CHANGE FUND IS $300 AND IS STORED IN THE, IN A LOCKED BACKROOM CLOSET IN THE KITCHEN.
HOWEVER, THE ROOM SPARE KEY, UH, STORED IN UNSECURED DRAWER BEHIND THE COUNTER ACCESSIBLE BY ALL EMPLOYEES.
OUR RECOMMENDATION IS THAT MANAGEMENT RESTRICT ACCESS TO ALL KEYS THAT ALLOW ENTRANCE TO THE CLOSET WHERE THE CHANGE FUND'S KEPT AND DEVELOP A WRITTEN POLICY THAT OUTLINES ADEQUATE SAFEGUARDS OF THE CHANGE.
CONCURS THE KEY'S BEEN SECURED, ACCESS IS NOW RESTRICTED TO ONLY FOOD AND BEVERAGE STAFF.
A POLICY HAS BEEN DEVELOPED TO MANAGE THE CHANGE FUND SEPTEMBER 1ST, 2025 IMPLEMENTATION DATE.
AND THEN THE FINAL OBSERVATION.
UH, POLICIES, DEPARTMENTAL POLICIES HAVE NOT BEEN UPDATED SINCE 2017.
THERE'S ALSO NO FORMAL AND PERIODIC REVIEW OF POLICIES BY MANAGEMENT.
SO OUR RECOMMENDATIONS, MANAGEMENT REVIEW AND UPDATE ALL EXISTING POLICIES TO INCLUDE AT LEAST THE FOLLOWING.
AND WE'VE GONE THROUGH ALL OF THESE IN THE FINDINGS, SO I'M JUST GONNA LIST THEM AGAIN HERE.
INVENTORY MANAGEMENT PROCESS AND THE ACCEPTABLE VARIANCE RANGE.
PERMITTED DISCOUNTS AND VERIFICATION PROCESSES, TOURNAMENT DOCUMENTATION, TABC AND FOOD HANDLING CERTIFICATE, DOCUMENTATION AND MONITORING, GOLF LEAGUE, GOLF LEAGUES, AND LESSONS PROVIDED USING FIREWALL, PROPERTY AND RESOURCES, MEMBERSHIP MANAGEMENT AND CHANGE FUND SAFEGUARDING PRACTICES MANAGEMENT, CONCURS AND AGREES TO DEVELOP ALL OF THOSE PROCEDURES.
IMPLEMENTATION DATE, JANUARY 30TH, 2026.
AND THAT'S THE FINAL OBSERVATION.
[01:20:01]
UH, THAT'S A, THAT'S A BIG AUDIT.YOU'VE GOT A, UH, YOU'VE GOT A CONSULTANT THAT'S COMING TO TALK TO YOU ABOUT SOME OF THIS, AND THERE'S, I GUESS JANUARY 1ST, THERE'S GONNA BE A LOT OF CHANGES.
THANK YOU FOR, FOR ALL THE HARD WORK ON IT.
OH, MY WING DID TO COUNCILMAN.
I DIDN'T HEAR ALL OF, BUT I HEARD ENOUGH.
UH, AND, AND JOHN IS, UH, IS, HAS, UH, COMMENTED AND SO HAS PHILIP.
SO I'M SATISFIED THAT THIS TEAM IS IMPLEMENTING WITH, ALONG WITH KEVIN.
SO I'M SATISFIED WITH IT, WITH THE WORD.
ANY OBSERVATIONS FOUND? NO COUNCILMAN.
UM, AND TO BE HONEST WITH YOU, UH, I SPEAK ABOUT KEVIN A LOT IN HERE AND, AND HE'S NOT HERE.
HE, UH, EVERY TIME WE BRING SOME OF THESE TO HIS ATTENTION, HE'S IMMEDIATELY, UH, IN, INTO WHAT CAN WE DO TO FIX THIS? AND OBVIOUSLY HE, HE, HE KNOWS, HE HAS FULL SUPPORT FROM PHIL, UH, IN, IN IMPLEMENTING THESE.
SO, UM, I REALLY DO APPRECIATE IT.
AND, UH, MORE THAN ANYONE ELSE, HE WAS MATT MCMILLAN WHO HAD TO PULL ALL THIS INFORMATION FOR US.
I KNOW HE, HE LIKES TO RUN AN UNDER, UH, YOU KNOW, BEHIND, BEHIND THE SCENE, BUT HE DESERVES A LOT OF CREDIT.
UH, AND SO I JUST WANTED TO BRING THAT AS WELL.
AND, AND OBVIOUSLY, UM, AARON AND VIN, THEY HAVE DONE AN EXCELLENT JOB.
AS, AS COUNCILMAN O SAID, THIS WAS A VERY COMPREHENSIVE AUDIT.
A LOTS OF PIECES, LOTS OF PARTS.
UM, YOU HAVE TO BE COMPETENT IN A LOT OF THESE AREAS TO, UM, TO DO THIS AUDIT.
SO I APPRECIATE MY STAFF FOR GOING ABOVE AND BEYOND TO TO, TO, AGAIN, THIS IS A VALUE ADDED SERVICE.
IF WE CAN HELP THE, UH, IMPROVE, IMPROVE THE OPERATIONS, IT'S ALL ABOUT IMPROVING PROCESSES.
AND I ALSO WANNA APPRECIATE JED, HE BROUGHT UP A FEW, FEW THINGS AS WE WERE PERFORMING THE AUDIT TO MYSELF AND SAY, HEY, JED, CAN YOU LOOK AT THIS? CAN YOU LOOK AT THAT? SO I APPRECIATE HIM FOR, UM, BRINGING THAT TO HER AND THAT TRUST THAT WE HAVE, MUTUAL TRUST THAT WE HAVE SO WELL, MATT, AARON, YES, I AGREE THAT, UH, YOU GUYS HAVE DONE A VERY GOOD JOB, VERY EXTENSIVE, UH, AUDIT HERE, AND YOU BROUGHT A LOT OF THINGS TO OUR ATTENTION THAT I THINK, UH, REALLY NEEDED TO BE BROUGHT TO OUR ATTENTION.
UH, WE'RE TALKING ABOUT 90 DAYS FOR THE CONSULTANT.
UH, WHEN IS THE CONSULTANT SUPPOSED TO BE COMING BEGINNING? WE WOULD HOPE BY MID-OCTOBER THAT THEY'RE ON, ON BOARD.
SO THERE'S AN ONBOARDING PROCESS AS IT RELATES TO, UH, THE PROCUREMENT PROCESS SUCH THAT, AND BY JANUARY THE FIRST, AS A LOT OF THE IMPLEMENTATIONS ARE GONNA BE TAKING PLACE, CORRECT.
SO WOULD IT BE, UH, FEASIBLE TO SAY THAT IF WE WERE TO ASK YOU TO BRING THIS BACK TO US, SAY, IN SIX MONTHS, UH, JUST BECAUSE I THINK THAT THIS IS A VERY IMPORTANT PROFIT CENTER AND THIS, THE GOLF COURSE IS ONE THAT OUR PUBLIC CITIZENRY, I MEAN, THERE'S JUST SO MUCH THAT TAKES PLACE THERE IN THE WAY OF ITS REPUTATION AND HOW IT'S RUNNING, SO ON AND SO FORTH.
UH, WOULD THAT BE ASKING TOO MUCH TO BRING BACK SOME TYPE OF, UH, UH, UPDATE IN SIX MONTHS? UH, MR. CHAIR, WE'VE DONE THIS BEFORE WITH, UH, OTHER AUDITS SUCH AS OUR PROCUREMENT AUDIT, WHERE, UH, WE'VE HAD, UH, UH, GARY, OUR PROCUREMENT DIRECTOR, DO A FOLLOW UP WITHIN SIX MONTHS OF AN AUDIT.
SO I DON'T THINK THAT WOULD BE AN ISSUE AT ALL FOR US TO COME BACK.
AND, UH, WE'VE GOT THE 11, I BELIEVE 11 AREAS THAT, UH, WERE OBSERVED AND WE CAN PROVIDE AN UPDATE ON EACH.
AND I'D JUST LIKE TO SAY TO YOU, DON, IT'S OBVIOUS TO, TO ME, THAT YOU'RE CARRYING A VERY HEAVY LOAD OUT THERE AND A LOT OF RESPONSIBILITIES ARE BEING PLACED ON YOU THAT, UH, PROBABLY I'M HOPING THAT THIS, UH, CONSULTANT WILL BE ABLE TO MAYBE GIVE YOU SOME RECOMMENDATIONS IN THE WAY OF, UH, YOU'RE BEING ABLE TO DELEGATE SOME THINGS VERSUS DIRECTLY BEING RESPONSIBLE FOR THEM.
BUT WITH THAT, AGAIN, JED, YOUR TEAM HAS DONE AN OUTSTANDING JOB IN THE WAY OF THIS AUDIT.
AND, UH, I THINK THAT IT'S ONE THAT, UH, AS WE GO FORWARD, WE'RE GONNA SEE THINGS BEING DONE A LOT BETTER.
AND IF NOTHING ELSE, UH, A LITTLE BIT MORE MONEY COMING IN AS A RESULT OF, UH, THE FINDINGS THAT WE'VE HAD.
UH, WITH THAT IS THERE, ARE THERE ANY OTHER THOUGHTS, ANY OTHER, UH, DISCUSSION AS IT RELATES TO, TO THIS CITY MANAGER? YOU GOOD? OKAY, GOOD.
SO WITH THAT, NOW, LET ME THANK YOU SO VERY MUCH.
UH, LET ME SAY THIS, UH, COUNSEL A, UH, COMMITTEE, WE, WE HAVE TWO OTHER REPORTS THAT ARE GOING TO BE VERY ALL PROVOKING AND
SO I'M ASKING THAT AS WE GO THROUGH THESE.
UH, LET'S TRY AND KEEP OUR, OUR QUESTIONS, OUR COMMENTS DIRECTLY RELATED
[01:25:01]
TO THE ISSUES AND INFORMATION THAT'S BEFORE US, SUCH THAT WE'LL BE ABLE TO GET THROUGH THIS BEFORE SIX O'CLOCK THIS EVENING.OKAY? SO WITH THAT
UH, THIS IS ALSO GOING BE A VERY COMPREHENSIVE AUDIT, BUT WE'LL GO MUCH FASTER THIS TIME, HOPEFULLY.
UM, SO OUR OBJECTIVE WAS TO EVALUATE INTERNAL CONTROLS OVER THE ACQUISITION, DISTRIBUTION, TRANSFER INTERVENTION, DISPOSITION AND PAYMENT PROCESSES OF CONTROL SUBSTANCES AT THE FIRE DEPARTMENT.
UH, THE SCOPE WE COVERED WAS FROM OCTOBER, 2023 TO MARCH 31ST, 2025.
UM, A NUMBER OF YEARS AGO, BACK IN 2019 IS WHEN WE LASTLY REVIEWED THIS, THIS PROGRAM.
UM, UH, I, I CAN TELL YOU THAT, UH, SINCE THEN, CHIEF LEE MADE AN EFFORT, UM, TO IMPROVE THEIR OPERATIONS BACK THEN.
WE MADE SOME RECOMMENDATIONS TO, TO BRING IN NEW SAFES, UH, INSTALL NEW CAMERAS, UM, BETTER MONITOR THE PROCESS, SOME SYSTEM ENHANCEMENT AND TRAININGS.
AND, AND YOU'LL SEE THAT THAT HAS TAKEN PLACE SINCE THEN.
UH, I DO WANNA EXTEND OUR THANKS TO CHIEF LEE, CHIEF LOVER AND CHIEF JOHNSON, WHO REALLY HELPED US OUT DURING THIS AUDIT.
AND THIS WAS ALSO A COMPREHENSIVE AUDIT AND, UM, PATRICIA LED IT AND ZACH DID A LOT OF ANALYTICS.
UM, SO I'M GONNA HAVE THEM GO OVER, UH, SOME BACKGROUND AND ALSO SOME OF THE OBSERVATIONS THAT WE HAD.
WERE THERE ANY REASON, UH, NONE OF THE, UH, FIRE CHIEFS OR THAT ONE RIGHT THERE? OH, THERE HE IS.
I WANT, 'CAUSE I, YOU KNOW, WE HAVE TO GET THE GOOD SIDE OF THIS THING FROM MARK
SO WITH THAT CHAIRMAN, I WILL TURN IT OVER TO PATRICIA TO GIVE YOU THE BACKGROUND AND SOME OF THE OBSERVATIONS.
UH, SO THE GARLAND FIRE DEPARTMENT WAS ESTABLISHED IN 1889 AND EMPLOYS 290 CIVIL SERVANTS AND SEVEN NON-CIVIL SERVANT PERSONNEL.
UH, GARLAND FIRE DEPARTMENT HAS 11 FIRE STATIONS SPREAD OUT ACROSS THE CITY, AND, UH, RESPONDS TO OVER 30,000 SERVICE CALLS EACH YEAR.
69% OF THOSE ARE FOCUSED ON EMS SERVICES.
THE LEADERSHIP AND MANAGEMENT TEAM OF THE DEPARTMENT WERE VERY ENGAGED THROUGHOUT THE AUDIT AND FORTHCOMING WITH THEIR CHALLENGES.
THEY TOOK IMMEDIATE STEPS DURING THE AUDIT TO CORRECT TWO OBSERVATIONS RELATED TO EXPIRED CONTROLLED SUBSTANCES AND ACCESS RIGHTS.
I A REVIEWED THIRD PARTY PAYMENT PRO PAYMENTS PROCESSED BY THE DEPARTMENT FOR THE AUDIT SCOPE AND IDENTIFIED GOOD PRACTICES INCLUDING ENSURING COMPLIANCE WITH CONTRACT PRICING AND INVOICES WERE APPROVED AND PROCESSED TIMELY.
OVERALL, GARLAND FIRE DEPARTMENT IS IN COMPLIANCE WITH THE DEA REGULATIONS.
SO, TO GIVE A LITTLE BIT OF BACKGROUND, UH, THE VAST MAJORITY OF GARLAND FIRE DEPARTMENT FIREFIGHTERS ARE ALSO PARAMEDICS HAVING COMPLETED TWO YEARS OF SPECIFIC COURSE TRAINING.
AND THE ADMINISTRATION OF CONTROLLED SUBSTANCES BY THE PARAMEDICS IS UNDER THE AUTHORITY OF A MEDICAL DIRECTOR AND REGULATED BY THE CONTROLLED SUBSTANCES ACT OF 1970, PRIMARILY ENFORCED BY DEA.
THE CONTROLLED SUBSTANCES ACT CLASSIFIES DRUGS AND CONTROLLED SUBSTANCES INTO FIVE SCHEDULES BASED ON THEIR POTENTIAL FOR ABUSE AND THE LIKELIHOOD FOR DEPENDENCE.
SCHEDULE ONE HAS THE HIGHEST AMOUNT WITH SCHEDULE FIVE BEING THE LOWEST.
OUR GARLAND FIRE DEPARTMENT CURRENTLY HAS INVENTORY IN SCHEDULES TWO, THREE, AND FOUR.
CONTROLLED SUBSTANCES ARE STORED IN A LARGE SAFE IN THE INVENTORY ROOM OF THE ADMINISTRATION BUILDING AND IN SMALL, SAFE, SMALL LOCKED SAFES, WHICH ARE CALLED MED VAULTS.
IN EACH OF THE 11 STATION AMBULANCES, THE CONTROLLED SUBSTANCES ARE PACKAGED IN SINGLE USE VIALS WITH TAMPER RESISTANT SEALS.
WHEN CONTROLLED SUBSTANCES ARE ADMINISTERED TO A PATIENT, THE ENTIRE CONTENTS OF THE VIAL OR THE SYRINGE MAY NOT BE USED.
THE UNUSED PORTION IS CONSIDERED WASTAGE AND IS DISPOSED OF.
THERE ARE TWO BIOHAZARD CONTAINERS ON EACH AMBULANCE FOR DISPOSAL OF SYRINGES.
IN 2019, GARLAND FIRE DEPARTMENT DEVELOPED AN IN-HOUSE INVENTORY SYSTEM FOR TRACKING CONTROLLED SUBSTANCE MOVEMENTS FROM RECEIVING TO STOCKING AMBULANCES TO PATIENT USAGE.
THE DEPARTMENT IN COORDINATION WITH AREA HOSPITAL SYSTEMS ALSO UTILIZES A PATIENT CARE SYSTEM WHERE
[01:30:01]
PATIENT INFORMATION IS RECORDED.PRIOR TO TRANSPORTING TO A HOSPITAL IN 2023, THE DEPARTMENT BEGAN USING THE INVENTORY MANAGEMENT SYSTEM PURCHASED THROUGH A VENDOR, WHICH INTEGRATES AND COORDINATES SEAMLESSLY WITH THE EMS SUPPLY DISTRIBUTOR.
FINALLY, THERE'S ALSO SOFTWARE THAT TRACKS THE OPENING AND CLOSING OF THE MED VAULT FOR EACH OF THE STATION AMBULANCES.
SO THE FIRST OBSERVATION IS FOR ACCESS TO THE CONTROLLED SUBSTANCES OR THE RELATED FACTORS, AND THIS INCLUDES THE AMBULANCE SAFES SAFE IN THE INVENTORY ROOM, AS WELL AS DOOR ACCESS AND CAMERA ACCESS.
AND WE'LL START WITH THE AMBULANCE ACCESS FIRST.
EACH AMBULANCE HAS A SECURE MED VAULT CONTAINING CONTROLLED SUBSTANCES NECESSARY FOR PATIENT CARE.
EACH PARAMEDIC HAS A UNIQUE FIVE DIGIT PERSONAL IDENTIFICATION NUMBER, WHICH IS TIED TO THEIR EMPLOYEE IDENTIFICATION NUMBER.
EACH EMPLOYEE IS ASSIGNED TO A GROUP WITH THE ADMINISTRATIVE GROUP HAVING THE ABILITY TO ENTER THE INFORMATION INTO THE SYSTEM AND PERFORM MAINTENANCE AS NEEDED.
AND THE PARAMEDIC GROUP IS ASSIGNED FOR THE PURPOSE OF ACCESSING AND THE CONTROLLED SUBSTANCES NECESSARY FOR PATIENT CARE.
ACCORDING TO MANAGEMENT, MED VAULTS SHOULD ONLY BE UNLOCKED FOR THREE REASONS.
THE DAILY INVENTORY COUNT RESTOCKING THE AMBULANCE SUPPLIES OR TREAT TREATMENT OF PATIENTS.
245 EMPLOYEES HAVE PENS TO ACCESS CONTROLLED SUBSTANCES ON THE AMBULANCE MED VAULTS TO DETERMINE IF THEIR ACCESS RIGHTS WERE SET UP CORRECTLY.
WE COMPARED EMPLOYEE TITLES AND RESPONSIBILITIES WITH THE SYSTEM.
USER REPORT ONE NON PARAMEDIC WAS IN CHARGE OF SETTING UP PINS FOR ALL EMPLOYEES AND RETAINED THE MASTER LIST OF THOSE PINS.
24 INDIVIDUALS ARE RECENT FIRE ACADEMY GRADUATES WHO HAVE NOT YET COMPLETED PARAMEDIC TRAINING, BUT WERE SET UP IN THE SYSTEM.
IN THE PARAMEDIC GROUP TWO PARAMEDICS WERE LISTED WITH THE SAME EMPLOYEE IDENTIFICATION.
NUMBER ONE ADMINISTRATIVE EMPLOYEE IS LISTED IN THE PARAMEDIC GROUP, BUT SHOULD BE IN THE ADMINISTRATIVE GROUP.
TWO PARAMEDIC BATTALION CHIEFS ARE NOT ASSIGNED TO ANY GROUP WHILE OTHER BATTALION CHIEFS ARE LISTED IN THE PARAMEDIC GROUP TO DETERMINE SECURE AND APPROPRIATE ACCESS TO THE PATIENT CARE SYSTEM.
INTERNAL AUDIT THEN COMPARED THAT USER LIST TO THE MED VAULT USER LIST AND FOUND TWO PARAMEDICS ARE LISTED AS RETIRED OR DEACTIVATED IN THE MED VAULT LIST, BUT ARE STILL LISTED IN THE PATIENT CARE SYSTEM.
THREE PARAMEDICS ARE LISTED IN THE MED VAULT SYSTEM BUT ARE NOT LISTED AT ALL IN THE PATIENT CARE SYSTEM.
TWO PARAMEDICS ARE LISTED IN BOTH SYSTEMS, BUT THEIR EMPLOYEE IDENTIFICATION NUMBERS DO NOT MATCH BETWEEN THE TWO FACTORS CONTRIBUTING ARE FIRE ADEMENT GRADUATES ARE PROVIDED WITH ACCESS PRIOR TO BECOMING ME PARAMEDICS AND BEING ELIGIBLE TO ADMINISTER CONTROLLED SUBSTANCES TO PATIENTS.
THE ACTIVE VERSUS TERMINATED EMPLOYEE LIST IS RECONCILED ONLY ONCE EVERY 90 DAYS IN THE DEPARTMENT RATHER THAN IMMEDIATELY UPON TERMINATION.
THE MED VAULT SYSTEM AND PATIENT CARE SYSTEMS ARE NOT INTERFACED AND THERE IS NO CHECKLIST OF PROCESSES AND SYSTEMS FOR DEACTIVATION OF TERMINATED EMPLOYEES ACROSS ALL SYSTEMS. WE RECOMMENDED THAT THE DEPARTMENT REEVALUATE WHETHER PENN ACCESS FOR NON PARAMEDICS IS APPROPRIATE AND MANAGEMENT CONCURRED AND STATED THAT ACCESS TO CONTROLLED SUBSTANCES BY NON PARAMEDICS WILL BE RESTRICTED AS NECESSARY BEGINNING NOVEMBER, 2025.
WE ALSO RECOMMENDED REVIEWING ACCESS PRIVILEGES AND GROUPS IN THE MED VAULT SYSTEMS AND MANAGEMENT CONCURRED MED VAULT USER GROUPS WILL UNDERGO A REVIEW AND CORRECTION, AND THAT WILL BE IN NOVEMBER.
WE ALSO RECOMMENDED DEVELOPING AND IMPLEMENTING AN ONBOARDING OFFBOARDING CHECKLIST TO INCLUDE ACCESS RIGHTS ACROSS ALL SYSTEMS, DOORS AND CAMERAS MANAGEMENT CONCURS AND THE DEPARTMENT WILL DEVELOP A CHECKLIST FOR ONBOARDING AND OFFBOARDING FOR ACCURATE AND TIMELY UPDATES TO SYSTEMS BEGINNING IN NOVE, UH, DECEMBER, 2025.
I FEEL LIKE THIS MIC IS CUTTING IN AND OUT.
IS IT JUST ME? OKAY, CHAIRMAN, UH, IF I MAY, PATRICIA IS, SINCE THIS IS A LENGTHY FINDING, SHE'S ACTUALLY GOING YES, I SEE BACK AND FORTH.
SHE'S SHE'S BRINGING THE RECOMMENDATIONS IN TO THEM.
TRYING TO MOVE IT ALONG A LITTLE BIT FASTER.
SO NOW WE'LL GET INTO THE ACCESS APPROPRIATENESS.
IA OBTAINED A REPORT OF UNLOCKING AND RE LOCKING ACTIVITIES FOR THE AMBULANCE MED VAULTS.
THIS REPORT IDENTIFIES THE EMPLOYEE THE DATE AND TIME OF OPENING AND CLOSING AND INDICATES THE DURATION OF THE VAULT BEING OPEN TO DETERMINE IF THE OPENING AND CLOSING ACTIVITIES WERE APPROPRIATE.
IA COMPARED THIS ACTIVITY REPORT TO ACTIVE AND TERMINATED EMPLOYEE LISTS, THE SHIFT SCHEDULES AND THE PAYROLL HOURS RECORDED OF THE 9,723 ACTIVITIES, THERE WERE 395 EXCEPTIONS DUE THE DUE TO THE NATURE OF EMERGENCY CALLS.
ONE HOUR WAS CONSIDERED REASONABLE, LEAVING 195 ACTIVITIES.
[01:35:02]
IE COMPARED THE VAULT OPENINGS TO THE PATIENT CARE RECORDS AND SOME VIDEO FOOTAGE AND FOUND THERE WERE 55 OCCURRENCES INVOLVING A CURRENT PARAMEDIC USING A TERMINATED PARAMEDICS PEN TO OPEN THE VAULT.THERE WERE ALSO 127 INSTANCES OF A CURRENT PARAMEDIC USING ANOTHER PARAMEDIC'S PIN WHO STILL EMPLOYED THERE.
FOR THOSE TWO ITEMS, THE TWO PARAMEDICS INVOLVED DID NOT SIGN IN UNDER ANY OTHER PIN AND MAY HAVE SIMPLY REMEMBERED THEIR OWN PIN INCORRECTLY.
THERE WERE SEVEN ACTIVITIES THAT OCCURRED WHILE TWO PARAMEDICS WERE ON PTO LEAVE OR WERE NOT WORKING.
SIX ACTIVITIES OCCURRED ONE TO 24 HOURS BEFORE OR AFTER A PARAMEDIC WORKED THE SHIFT TO REVIEW TRENDS OR PATTERNS FOR THE DURATION OF A VAULT BEING LEFT OPEN.
I ALSO ANALYZED THE ACTIVITIES OF A VAULT LEFT OPEN FOR MORE THAN ONE HOUR.
THERE WERE 125 OF THOSE OCCURRENCES.
80 OF THOSE OCCASIONS REMAINED OPEN FOR ONE TO 24 HOURS AND 45 OCCASIONS.
IT REMAINED OPEN ONE TO 22 DAYS.
IA FURTHER SAMPLED 59 OF THE 125 IN AN EFFORT TO DETERMINE THE CAUSE OF THE PROLONGED OPENING.
16 OF THOSE INSTANCES WERE SUPPORTED BY AVAILABLE SERVICE RECORDS WHEN THE AMBULANCES WERE IN SERVICE.
AND 43 INSTANCES LACKED ADEQUATE DOCUMENTATION TO JUSTIFY THE EXTENDED OPENINGS.
ACCORDING TO THE VENDOR, THE CRITERIA FOR SETTING THE PINS IS A MINIMUM OF FOUR AND A MAXIMUM OF EIGHT DIGITS.
THE DEPARTMENT CURRENTLY UTILIZES A FIVE DIGIT PIN, AND THIS MAY CAUSE INADVERTENT ACCESS IF THERE ARE TWO PINS WITH SIMILAR DIGITS.
THE AMBULANCES ARE SERVICED INTERNALLY AS WELL AS BY THIRD PARTIES.
THE MED VAULTS ARE ALWAYS EMPTIED WHEN GOING IN FOR SERVICE, BUT THERE'S NO CLEAR PROCESS FOR WHETHER THE EMPTY MED VAULT SHOULD REMAIN OPEN OR BE REELECTED DURING THE SERVICE.
THE ABSENCE OF DOCUMENTED SERVICE RECORDS LIMITED THE ABIL, THE DEPARTMENT'S ABILITY TO EXPLAIN OR VALIDATE THE OPERATIONAL NECESSITY OF PROLONGED OPENINGS.
I A RECOMMENDED CONSIDER USING PINS WITH MORE THAN FIVE DIGITS.
MANAGEMENT CONCURS AND WILL REVIEW CONFIGURATION WITH THE VENDOR TO ENHANCE SECURITY AND STRENGTH AND CONTROLS.
BEGINNING DECEMBER, 2025, WE ALSO RECOMMENDED THAT EVERYONE RESET THEIR PINS AND MANAGEMENT CONCURRED.
THIS WILL BE ACCOMPLISHED BY FEBRUARY OF 2026.
WE ALSO RECOMMENDED DEVELOPING A WRITTEN PROCESS FOR DOCUMENTING WHEN AM AMBULANCES ARE BEING SERVICED AND UNLOCKING AND RE LOCKING PROCEDURES FOR THE MED VAULTS MANAGEMENT.
CONCURS AND WILL SEEK SOLUTIONS FOR DOCUMENTING AMBULANCE SERVICING AND POLICY CREATION FOR MED VAULT STATUS WHEN SERVICE IS OCCURRING.
AND THIS WILL BEGIN IN JANUARY OF 2026.
WE RECOMMENDED PERIODICALLY RUNNING ACTIVITY REPORTS FOR THE MED VAULTS TO REVIEW THE OPENINGS, CLOSING CLOSINGS AND DURATIONS MANAGEMENT CONCURRED AND WE'LL WORK WITH THE VENDOR TO RUN AND REVIEW REPORTS BEGINNING IN JANUARY, 2026.
SO NOW WE'LL TALK ABOUT THE INVENTORY ROOM ACCESS.
THE INVENTORY ROOM HOUSES THE SUPPLY OF CONTROLLED SUBSTANCES SECURED IN A LARGE BOLTED TO THE FLOOR SAFE.
THERE ARE THREE ENTRY AND EXIT POINTS TO THE ROOM.
ACCORDING TO THE DEA SECURITY REQUIREMENTS, CONTROLLED SUBSTANCE STORAGE AREAS SHOULD BE ACCESSIBLE ONLY TO AN ABSOLUTE MINIMUM.
NUMBER OF SPECIFICALLY AUTHORIZED EMPLOYEES.
CURRENTLY 435 PEOPLE HAVE ACCESS TO THIS ROOM.
330 YEAR POLICE, 30 YEAR FIRE, AND 65 ARE VARIOUS INDIVIDUALS.
WHEN WE REVIEWED THIS LIST AND COMPARED IT TO THE ACTIVE AND TERMINATED EMPLOYEE LISTS FIVE ARE NO LONGER EMPLOYED.
FIVE COULD NOT BE IDENTIFIED AS CURRENT OR FORMER EMPLOYEES.
FOUR ARE LISTED TWICE WITH NAME VARIATIONS AND TWO HAD A NAME CHANGE BUT THE LIST WAS NOT UPDATED.
IN ADDITION, A SUPPLY ROOM ADJOINS THE INVENTORY ROOM WHERE THE FIRE DEPARTMENT SUPPLIES ARE STORED.
THERE ARE 550 PEOPLE WITH DOOR ACCESS TO THE, TO THE SUPPLY ROOM ONLY 55 OF WHICH ARE FIRE PERSONNEL FOR THE CAMERA ACCESS.
THERE ARE FOUR CAMERAS INSIDE THE INVENTORY ROOM WHERE THE CONTROLLED SUBSTANCES ARE STORED AS WELL AS IN SOME FIRE STATIONS.
CAMERA RECORDINGS ARE RETAINED FOR 30 DAYS AND THERE ARE 19 PEOPLE WITH OPERATOR PRIVILEGES, WHICH INCLUDES VIEWING, STOPPING THE RECORDINGS, OVERRIDES, EDITING PRESETS, AND CHANGING THE PAN TILT AND ZOOM FEATURES.
ONE OF THOSE INDIVIDUALS IS A RETIRED CHIEF AND ANOTHER IS A PARAMEDIC.
SOME OF THE FACTORS MAY BE THAT THERE IS NO ESTABLISHED WRITTEN CRITERIA FOR DETERMINING WHO HAS ACCESS TO THE CONTROLLED SUBSTANCE INVENTORY ROOM AND CAMERA OPERATOR PRIVILEGES WITH JUSTIFIED DOC DOCUMENTATION OR JUSTIFIED DOCUMENTED JUSTIFICATION FOR EACH.
THERE IS NO PERIODIC REVIEW OF THE INVENTORY ROOM
[01:40:01]
ACCESS AND CAMERA ACCESS.WE RECOMMENDED REVIEWING THE CURRENT ACCESS LIST FOR THE INVENTORY ROOM SUPPLY ROOM TO DETERMINE BUSINESS NECESSITY AND REDUCE TO BUSINESS NECESSITY.
CONSIDER ESCORTED ACCESS FOR SOME PERSONNEL SUCH AS VENDORS OR IT RATHER THAN ALL, ALL INCLUSIVE ACCESS MANAGEMENT CONCURRED AND SAID ACCESS TO INVENTORY AND SUPPLY ROOMS WILL BE REVIEWED TO CONFIRM BUSINESS NECESSITY.
THIS WILL BE IN JANUARY, 2026.
WE ALSO RECOMMENDED REVIEWING AND UPDATING THE CAMERA ACCESS LIST TO DETERMINE APPROPRIATENESS AND MANAGEMENT CONCURRED AND WE'LL WORK WITH THE FACILITIES TO ENSURE THAT ACCESS IS APPROPRIATE AS WELL.
UM, IS THERE ANY QUESTIONS ABOUT ANY OF THAT
I'D LIKE FOR HIM TO JUST GIVE US COMMENTS ON HIS THOUGHTS ALSO.
BUT, UH, CHRIS, UM, ON, WHEN YOU'RE TALKING ABOUT VIDEO, UH, THE ABILITY TO CHANGE PAN AND TILT AND ZOOMING OF THAT, IS THAT VIDEO THAT'S INSIDE OF THE AMBULANCE ITSELF OF THE MED VAULT OR IS THAT IN THE FACILITY WHERE WE'RE STORING IN THE INVENTORY ROOM THERE? THAT'S RIGHT.
THERE'S NO CAMERAS IN THE AMBULANCES.
I FIGURED THAT WAS THE CASE, YES.
YOU MENTIONED IN ONE SECTION OF THAT THERE IS, UH, ONE RETIRED CHIEF YES.
AND ONE PARAMEDIC THAT HAD ACCESS TO THE CAMERAS.
WHAT'S BEING ADJUSTED TO, TO, UH, IS ANY CORRECTIVE ACTION BEING TAKEN TO, TO ADDRESS THAT ROBERT CHIEF LEE, DO YOU WANT TO TAKE THAT OR, YES, MR. ZA FOUND OUT WHO THEY ARE.
WELL I'M SURE THEY, I'M SURE THEY, THEY, WE'LL, WE'LL AUDIT THE LIST AND MAKE SURE THAT THE PEOPLE WITH ACCESS TO THE CAMERAS FOR VIEWING IS APPROPRIATE.
AND THEN THOSE WITH THE ADVANCED FEATURES OF OUR CAMERA SYSTEM ARE ALSO APPROPRIATE MEMBERS OF THE AGENCY THAT WOULD HAVE A NEED TO, TO DO, YOU KNOW, AND, AND THE RETIRED CHIEF, YOU KNOW WHO, DO YOU KNOW WHO THAT IS? I'M GUESSING IT'S PROBABLY CHIEF COHEN IF I WAS BETTING.
IF, IF I MAY, THOSE THESE ARE NETWORK BASED CAMERAS, YOU WOULD REQUIRE A NETWORK ID AND IF SOMEONE IS RETIRED, UH, THEY MAY HAVE ACCESS TO THE CAMERAS, BUT IF THEY CAN NO LONGER ACCESS A NETWORK, THEY CAN NO LONGER ACCESS THE CAMERAS.
SO IT'S GONNA BE SIMPLY CHECKING A BOX AND REMOVING THE INDIVIDUAL'S NAME.
BUT THEY CANNOT LOG INTO THE CAMERAS EVEN THOUGH THEY'RE NO LONGER EMPLOYED WITH US.
I, UH, I ASK FOR YOU TO COME FORWARD, MARK, BECAUSE OF THE SENSITIVE NATURE OF THIS TYPE OF AN AUDIT, ESPECIALLY AS WE RELATES TO A SUBSTANCE, UH, POSSIBILITY OF ABUSE AND WASTE AND SO ON AND SO FORTH.
UH, I'D LIKE TO GET YOUR OVERALL THOUGHTS AS IT RELATES TO THE AUDIT.
I THINK THAT THE, THE AUDITORS DID A GREAT JOB ON THIS AND THEY PROVIDED US WITH SOME INFORMATION THAT WE, WE NEED TO BETTER SECURE OUR SYSTEM.
UH, THE SYSTEM FROM THE 2019 AUDIT IS THAT WHEN THE OTHER ONE WAS 2019? THE 2019 AUDIT SHOWED US THAT OUR PAPER FORMS WERE NOT WORKING WELL FOR, FOR TRACKING OUR NARCOTICS ON DAILY COUNTS.
WE DEVELOPED A SYSTEM, UH, AN IN-HOUSE SYSTEM TO, TO BETTER TRACK IT.
IT'S VERY CUMBERSOME, UH, AND THE OVERSIGHT ON IT IS NOT AS EFFICIENT AND SUFFICIENT AS I THOUGHT IT SHOULD BE.
AT THIS POINT, WE ARE EXPLORING EVEN BETTER SOFTWARE THAT IS NOW READILY AVAILABLE, COMMERCIALLY AVAILABLE.
SO MAN NEEDS SOME MONEY, UH, SO THAT WE CAN BETTER CONTROL OUR SUBSTANCES.
UH, BUT THIS AUDIT IS, IS THE PURPOSE OF AN AUDIT TO ME IS NOT A, AND AND OUR AUDITORS ARE NOT.
THEY ARE, HERE'S PROCESSES THAT NEED ATTENTION.
AND SO I THINK OVERALL THE AUDIT DID A GREAT JOB.
THE, THE PEN ACCESS THEY RECOMMENDED, WE MAX IT OUT AT EIGHT.
I KNOW A LOT OF PEOPLE NOWADAYS CAN'T REMEMBER SEVEN DIGITS.
SO I WANNA WORK WITH THE VENDOR TO FIND WHAT IS THE OPTIMUM NUMBER FOR THE NUMBER OF PEOPLE THAT WE HAVE TO AVOID DUPLICATION, SEE IF THEY HAVE A, A LENGTH THAT WE NEED TO FOCUS ON, AND THEN WE'LL MOVE FORWARD WITH THAT PIECE OF IT.
AND SO WE WORKED WITH THIS GROUP, UH, BACK AND FORTH, BACK AND FORTH, AND, AND I THINK WE'VE GOT A REALLY GOOD AUDIT HERE.
AND THAT'S ONE OF THE REAL CONCERNS THAT I HAD WAS 240 SOMETHING PEOPLE HAVE AN ACCESS.
THAT'S NOT AN AWFUL LOT OF PEOPLE.
WHAT ARE YOUR THOUGHTS? IT'S NOT BECAUSE, WELL, I SAY THAT WE'VE GOT 255 PEOPLE ASSIGNED TO THE OPERATIONS DIVISION OF THOSE ON A CRITICAL CALL, THERE MAY BE ALL FIVE PEOPLE MAY BE IN
[01:45:01]
THE BACK OF THAT AMBULANCE AND THE PERSON CLOSEST TO THAT SAFE MIGHT BE THE ONE THAT NEEDS TO GET IN IT AND GET AND GET THE MEDS OUT.AND WE CERTAINLY DON'T WANT A PARAMEDIC TO TELL ACROSS THE ROOM, HERE'S MY PEN, GET ME SOME NARCOTICS OUTTA THERE.
SO WE, WE WANT 255, MAYBE LESS THE BATTALION CHIEF.
SO THAT SHOULD PUT US AROUND 2 49.
SO I'VE PROBABLY GOT SOME PEOPLE THAT NEED ACCESS THAT DON'T HAVE IT.
SO WE'VE JUST GOTTA AUDIT THAT, THAT WHOLE LIST AND SAY, WHO HAS A NEED? AND THE POLICE DEPARTMENT ALSO, THE POLICE DEPARTMENT HAS ACCESS TO THE BUILDING AND TO THE CONTROLLED SUBSTANCE ROOM WHERE THE SAFE IS BOLTED TO THE FLOOR, BUT THEY DO NOT HAVE ACCESS TO THAT SAFE.
AND THE MED VAULTS, SAME THING.
THEY DO NOT HAVE THE 550 PEOPLE THAT HAVE ACCESS TO OUR SUPPLY AREA.
GOLLY, I'D LIKE TO KNOW WHO THEY ARE.
'CAUSE ONLY 55 OF 'EM ARE MY PEOPLE.
SO AGAIN, WE NEED TO DO BETTER.
UH, AND I THINK THAT EVEN CAME OUT IN THE 2019 AUDIT OR IT WAS ANOTHER AUDIT THAT SAID WE NEEDED TO REVIEW OUR, OUR ACCESS TO OUR BUILDING AND MAINTAIN A TIGHTER CONTROL ON IT.
WE, WE ABSOLUTELY DO MOST OF YOUR RECOMMENDATIONS LOOK LIKE THEY'RE GONNA WRITE IT AROUND AGAIN JANUARY, FEBRUARY AND THAT TYPE OF THING.
UH, IS IT, UH, AGAIN, UH, TOO QUICK TO ASK.
WE GET A REVIEW HERE WHERE YOU ARE IN THE WAY OF YOUR PROGRESS AND UPDATES AND I WISH I'D HAVE USED A LONGER DATE TIMEFRAME.
AGAIN, WE, WE, WE WERE VERY, I FELT WE WERE PRETTY CONSERVATIVE IN SOME OF THE DATES THAT WE LISTED IN OUR FIRST ROUND OF THIS.
I FELT WERE TRYING TO SATISFY THE PURPOSE OF THE AUDIT, AND I'M LIKE, I THINK IT'S TOO TIGHT OF A TIMELINE BASED ON THE RESOURCES THAT I HAVE AVAILABLE TO WORK ON THIS STUFF.
SO I I ACTUALLY STRETCH THESE EVEN FURTHER THAN I THOUGHT IT NEEDED TO BE.
SO I THINK THAT FOR AN UPDATE, I'M, I'M MORE THAN HAPPY TO COME BACK WITH THAT.
AND I SAY THAT BECAUSE WITH OUR AUDIT TEAM, OFTENTIMES WE'RE TALKING ABOUT NEW AUDITS, WHEREAS A MATTER OF FACT, WHAT WE'RE REALLY NEED TO DO IN MANY INSTANCES IS GO BACK TO SOME OF THE ONES WE'VE ALREADY DONE AND MAKE SURE THAT THOSE ARE BEING UPDATED AND CARRIED FORWARD TO WHAT THE RECOMMENDATIONS WERE.
SO IF THAT'S POSSIBLE, J CAN YOU WELL, CHAIRMAN, IF, IF I MAY, UH, I, I LIKE THE IDEA OF MANAGEMENT UPDATING THE COMMITTEE.
I MEAN, OBVIOUSLY WE CAN HELP, INSTEAD OF US DOING A MINI AUDIT, THEY CAN COME AND SAY, THESE ARE THE THINGS THAT WE IMPLEMENTED.
THESE ARE THE THINGS THAT WE ARE WORKING ON.
I THINK THAT WILL BE MORE EFFICIENT ON THEIR TEAM.
OH, I'M NOT ASKING FOR AN AUDIT NOW.
AS LONG AS CHIEF IS GOOD WITH IT.
EVEN THE OTHER ONE, UM, THE FIRST ONE.
NO, BECAUSE I KNOW HOW DIFFICULT THAT IS.
WE'RE, WE'RE WILLING TO PROVIDE THAT UPDATE AND, AND SHOW YOU AREAS WE'VE COMPLETED THOSE THAT ARE IN THE WORKS AND THE AREAS WHERE WE NEED TO PROBABLY READJUST OUR TIMELINES COMMITTEE.
CHAIRMAN, IF WE MAY ALSO QUICKLY GO OVER THE REST OF THE OBSERVATIONS.
I THOUGHT WE WERE FINISHED WITH THAT ONE.
THE FIRST, BRING IT ON IT ON STAND FOR NUMBER TWO OR FOR NUMBER ONE.
UH, SO ON NEXT AND NUMBER TWO, THE CONTROLLED SUBSTANCE ADMINISTRATION AND INVENTORY.
SO DURING PATIENT CARE, THE PARAMEDICS MAY ADMINISTER CONTROLLED SUBSTANCES, UH, WHEN ADMINISTERED DETAILS SUCH AS NAMES AND DOSAGES OF CONTROLLED SUBSTANCES ARE ENTERED INTO THE PATIENT CARE SYSTEM.
AND THIS IS CONSIDERED, UH, THE PRIMARY RECORD AS FAR AS DEA PURPOSES GO.
SO ONCE THE PARAMEDICS RETURN TO THE STATION, UH, THE USED AND WASTED DOSAGES ARE ALSO RECORDED INTO THE INVENTORY SYSTEM.
UH, THIS INFORMATION IS REVIEWED FOR ACCURACY AND APPROVED BY SUPERVISORS.
SO THE FIRST BIT WE HAVE IS TOTAL VOLUME DISCREPANCY.
SO WE LOOKED AT THIS FROM A HIGH LEVEL AND, UM, WE TOOK A LOOK AT THE TOTAL AMOUNT OF DOSAGES USED, UH, FOR CONTROLLED SUBSTANCE.
NUMBER ONE, WE'RE NOT GONNA NAME THEM, UH, BUT CONTROLLED SUBSTANCE NUMBER TWO AND NUMBER THREE.
AND, UM, FOUR, UM, BETWEEN THE INVENTORY SYSTEM AND THE PATIENT CARE SYSTEM, FOR THE FIRST ONE, WE HAD A DIFFERENCE OF 615 MICROGRAMS FOR THE SECOND 452 MILLIGRAMS AND FOR THE THIRD 53.2 MILLIGRAMS. UH, AND THIS COULD JUST, UM, A CONTRIBUTING FACTOR TO THIS COULD BE, UH, MANUAL ENTRY ERRORS.
THE, THE INVENTORY SYSTEM IS ENTERED MANUALLY WHENEVER THE, UH, PARAMEDIC EITHER RETURNS TO THE STATION OR IS, UH, DONE SERVICING THE CITIZEN.
UM, SO THAT COULD BE A POTENTIAL FOR WHY THAT'S OFF.
SO NEXT WE DOVE IN A LITTLE BIT DEEPER AND WE WANTED TO ENSURE THAT EVERY TIME A CONTROLLED SUBSTANCE IS GIVEN IN THE PATIENT SYSTEM, THAT THERE'S AN, THAT'S ALSO REFLECTED IN THE
[01:50:01]
INVENTORY SYSTEM.AND THEN FOR ANY TIME THAT A DRUG IS USED IN THE, SORRY, A CONTROLLED SUBSTANCE IS USED IN THE INVENTORY SYSTEM, THAT THERE'S A CORRESPONDING PATIENT RECORD.
SO WHENEVER WE COMPARED THE, UM, INCIDENT NUMBER, WHICH IS THE SAME IN BOTH SYSTEMS, WE HAD SIX INCIDENTS IN THE PATIENT CARE SYSTEM THAT HAD NO CORRESPONDING RECORDS IN THE INVENTORY SYSTEM.
AND EIGHT INCIDENTS, UH, THAT DID NOT HAVE DOSAGE DOCUMENTED AT ALL IN THE PATIENT CARE SYSTEM.
SO AGAIN, UH, THE SAME CONTRIBUTING FACTOR, THIS COULD JUST BE DUE TO, TO MANUAL, UH, ENTRY ERROR.
AND FOR THIS ONE, IT'S A SHORTER ONE.
I'M GONNA KEEP ALL THE RECOMMENDATIONS FOR THE END AND WE'LL JUST GO OVER THOSE.
SO THIRDLY, SUPERVISOR REVIEW.
WE REVIEWED ALL INVENTORY SYSTEM ACTIVITY ENTRIES CATEGORIZED AS USED AND WASTED AND IDENTIFIED 54 INSTANCES THAT DID NOT HAVE DOCUMENTED EVIDENCE OF REVIEW BY SUPERVISORS.
UM, A CONTRIBUTING FACTOR TO THAT COULD BE THAT SUPERVISORS ARE NOT ALWAYS PERFORMING A DAILY REVIEW OF THESE RECONCILIATIONS.
UH, ADDITIONALLY, THERE'S NO MECHANISM IN PLACE TO TRACK, UM, EDITED ENTRIES OR OBTAIN MANAGERIAL APPROVAL FOR EDITS.
THAT KIND OF CORRESPONDS WITH BOTH, UH, THIS ONE AND THE PREVIOUS ONE FOR THE THE DISCREPANCIES.
LASTLY, WE HAVE DAILY INVENTORY COUNTS.
SO TWO PARAMEDICS PERFORM AN INVENTORY COUNT EACH MORNING AT THE BEGINNING OF THEIR SHIFT.
THE MED VAULT IS OPENED AND THE CONTROLLED SUBSTANCES ARE COUNTED WITH THE QUANTITY OF EACH BEING RECORDED IN THE INVENTORY SYSTEM.
AND BOTH IN, UH, BOTH PARAMEDICS SIGN OFF ON THIS COUNT, WE OBTAINED AN INVENTORY SYSTEM REPORT OF THE DAILY CHECKS DOCUMENTING THE INVENTORY COUNTS.
AND WITH 547 DAYS WITHIN OUR AUDIT SCOPE AND 11 AMBULANCES TO BE COUNTED EACH DAY, I EXPECTED TO SEE ROUGHLY 6,000 ENTRIES.
INSTEAD, THE REPORT SHOWED ONLY 263 ENTRIES.
AS A RESULT, WE WERE NOT ABLE TO DETERMINE IF THESE INVENTORY COUNTS OCCURRED OR IF THEY DID OCCUR, AND WE JUST DIDN'T GET THEM DOCUMENTED INTO THE SYSTEM.
SO DUE TO THESE, WE RECOMMEND THAT MANAGEMENT SHOULD EVALUATE EXISTING SYSTEM MODULES OR OTHER POTENTIAL OPTIONS TO REDUCE DUPLICATING ENTRIES IN THE POSSIBILITY OF ERRORS.
IN ORDER TO ENHANCE EFFICIENCY AND EFFECTIVENESS, WE RECOMMEND THAT MANAGEMENT SHOULD DEVELOP PROGRAM OPERATIONS POLICY DETAILING ROLES AND RESPONSIBILITIES, AS WELL AS DAILY, WEEKLY, MONTHLY, AND ANNUAL EXPECTATIONS.
AND THEN THAT THEY SHOULD PERIODICALLY RUN REPORTS WITH DETAILS ON RECONCILIATIONS TO IDENTIFY AND ADDRESS ANY ONGOING DISCREPANCIES.
MANAGEMENT CONCURRED AND HAD IMPLEMENTATION DATES FROM JANUARY, 2026 THROUGH OCTOBER, 2026.
SO NOW WE'LL COVER DISPOSAL AND DESTRUCTION.
ACCORDING TO THE DE, A WASTAGE OF CONTROLLED SUBSTANCES MUST BE RENDERED NON RETRIEVABLE.
THE DEFINITION OF NON RETRIEVABLE IS TO PERMANENTLY ALTER THAT CONTROLLED SUBSTANCES, PHYSICAL OR CHEMICAL CONDITION THROUGH IRREVERSIBLE MEANS AND THEREBY RENDERS THE CONTROLLED SUBSTANCE UNAVAILABLE AND UNUSABLE FOR ALL PRACTICAL PURPOSES.
THE PURPOSE OF MAKING THE CONTROLLED SUBSTANCE NON RETRIEVABLE IS TO PREVENT DIVERTING DRUGS FOR UNINTENDED PURPOSES, SUCH AS ABUSE OR RESELLING.
DISPOSAL OCCURS WHEN CONTROLLED SUBSTANCES REMAIN IN A VIAL OR SYRINGE ARE NOT USED AND MUST BE DISPOSED OF.
THIS IS REFERRED TO AS WASTAGE.
DESTRUCTION OCCURS WHEN VIALS OF CONTROLLED SUBSTANCES ARE EXPIRED AND ARE RETURNED TO THE DISTRIBUTOR.
SO FOR DISPOSAL, DURING INTERVIEWS WITH PARAMEDICS, WE LEARNED THAT THE DEPARTMENT IS CURRENTLY DISPOSING OF WASTAGE IN SEVERAL WAYS, SUCH AS DISCHARGING UNUSED SYRINGE CONTENTS INTO A TRASH CAN.
HOSPITAL SINKS OUT ONTO THE GROUND OR PLACING VIALS IN UNUSED OF UNUSED CONTENTS INTO THE BIOHAZARD CONTAINERS ON THE AMBULANCE.
HOWEVER, DEA DOES NOT DEFINE HOW DISPOSAL IS TO BE ACCOMPLISHED.
AND THERE IS A RECOGNIZED GAP AMONG THE EMERGENCY MEDICAL SERVICE PROVIDER INDUSTRY AND THERE IS NO DEPARTMENT POLICY REGARDING PROPER DISPOSAL FOR DESTRUCTION.
UH, ANESTHETIC DESTRUCTION OF CONTROLLED SUBSTANCES OCCURS WHEN VIALS HAVE EXPIRED.
BY RETURNING THESE TO THE DISTRIBUTOR PRIOR TO SHIPMENT, DEA REQUIRES THAT THESE VIALS BE STORED SEPARATELY FROM THE INVENTORY STOCK TO PREVENT DIVERSION.
DURING OUR SURPRISE INVENTORY COUNT FOUR VIALS OF CONTROLLED SUBSTANCES WERE NOT PROPERLY SECURED IN I A'S PRESENCE.
THIS WAS IMMEDIATELY CORRECTED.
THERE WERE 220 EXPIRED VIALS, WHICH HAD NOT BEEN RETURNED TO THE DISTRIBUTOR FOR FINAL DESTRUCTION.
THE MOST RECENT DESTRUCTION TOOK PLACE IN JANUARY OF 2022.
DUE TO THE DEPARTMENT NOT HAVING SPECIFIC MILESTONE GUIDELINES FOR DESTRUCTION BASED ON TIME PERIODS OR QUANTITY FACTORS
[01:55:01]
CONTRIBUTING ARE THE LACK OF CLEARLY DEFINED REGULATIONS.G UH, GARLAND FIRE DEPARTMENT DOES NOT HAVE A CURRENT OR SPECIFIC GUIDELINE FOR CONSISTENT DISPOSAL OF THE SUBSTANCES AND DOES NOT HAVE SPECIFIC MILESTONE GUIDELINES FOR DESTRUCTION SUCH AS ANNUALLY OR UPON REACHING A CERTAIN QUANTITY.
MANAGEMENT SHOULD EVALUATE BEST PRACTICES AND DEVELOP A WRITTEN PROCESS FOR DISPOSAL OF WASTAGE.
MANAGEMENT CONCURRED AND SAID DEA COMPLIANT POLICIES AND BEST PRACTICES WILL BE EXAMINED.
CONSIDER COMMERCIALLY AVAILABLE PRODUCTS WHICH RENDER CONTROLLED SUBSTANCES NON RETRIEVABLE AND SAFE FOR LANDFILLS.
AGAIN, MANAGEMENT CONCURRED AND SO THE DEPARTMENT WILL OBTAIN INFORMATION ON PRODUCTS THAT RENDER IT NON RETRIEVABLE.
ALSO, IN NOVEMBER OF 2025, WE RECOMMENDED RETURNING THE 220 EXPIRED VIALS TO THE REVERSE EXTRUDER FOR DESTRUCTION MANAGEMENT CONCURRED.
AND WE'LL EVALUATE THIS EFFICIENCY OF THE INVENTORY ON HAND AND SEND THE REMAINING EXPIRED VIALS FOR DESTRUCTION BY JANUARY.
WE RECOMMENDED DEVELOPING A WRITTEN PROCESS FOR TIMELY DESTRUCTION OF EXPIRED VIALS AND MANAGEMENT CONCURRED AND WE'LL ACCOMPLISH THAT BY MARCH OF 2026.
OKAY, COUNSEL, MR. CHAIRMAN, COUPLE QUESTIONS.
ONE, GOING BACK, I THINK YOUR REPORT DAILY INVENTORY, I THINK YOU WAS THAT STRING SOME NUMBERS ON IT? I CAN'T, DON'T, DON'T ASK ME WHAT THEY WERE.
BOTTOM LINE IS, UH, THERE WAS, THEY WERE NOT, THAT WAS NOT A DAILY CHECK BY SUPERVISOR.
WE JUST COULDN'T TELL YOU HAD THAT ON ONE OF HIS SCREENS.
THAT MAY BEEN IT'S ONE, ONE OF 'EM THAT YOU SHOWED ME IT, IT COULD HAVE BEEN OCCURRING BUT JUST DIDN'T GET DOCUMENTED IN THE SYSTEM.
UH, SO ONE, UH, HOW ARE YOU ADDRESSING THAT CHIEF IN YOUR, YOU KNOW, I'M ASKING, I'M NOT ASKING YOU FOR NOW, BUT YOU ARE LOOKING AT THAT.
HOW ARE YOU, HOW ARE YOU AND YOUR LEADERSHIP TEAM PLANNING TO ADDRESS THAT? THAT, THAT'S MY FIRST QUESTION.
WELL, IT APPEARED THAT 97% OF OUR CHECKS WERE NOT DOCUMENTED OR NOT RETRIEVABLE IN OUR SYSTEM.
SO I BELIEVE, AND I HOPE THAT I'M CORRECT IN THAT BELIEF, THAT IT'S A REVERSE OF THAT, THAT WE ONLY ARE MISSING ABOUT 3% OF THOSE DAILY CHECKS.
BUT AGAIN, IT IS A, A SYSTEM THAT WAS DEVELOPED IN-HOUSE AND I, WHEN I MENTIONED IT WAS VERY CUMBERSOME.
I'M WONDERING IF THAT'S WHERE THE ISSUE IS, IS IS THE SYSTEM THAT WE WERE NOT ABLE TO RETRIEVE THE CORRECT NUMBER OF THOSE CHECKS.
UH, BUT WITH ALL OF THAT SAID, WE ARE PLANNING AGAIN TO EXPLORE NEW INVENTORY MANAGEMENT ON NARCOTICS, UH, IN PARTICULAR.
AND SO WE HAVE THE NEW OP IQ SYSTEM, WHICH WE DID NOT HAVE NARCOTICS LISTED ON THAT RIGHT NOW.
WE'VE BEEN RELYING ON OUR IN-HOUSE SYSTEM.
THERE'S TWO COMMUNITIES NEAR US THAT ARE UTILIZING THAT SYSTEM FOR THEIR NARCOTICS TRACKING.
AND WE WILL BE EXPLORING WHAT IT, WHAT IT TAKES TO LAUNCH THAT IN OUR HOUSE AS WELL.
SO, UM, SOME OF THESE NUMBERS WERE REALLY EMBARRASSING TO ME, TO BE HONEST WITH YOU, COUNCILMAN.
UH, AS THEY, THEY SHOULD BE, UH, ALL I CAN TELL YOU IS WE'RE GONNA FIGURE OUT A BETTER WAY TO DO IT.
WE'RE WE'RE GONNA COME UP WITH A BETTER BOUNCE TRAP 'CAUSE THIS ONE'S NOT WORKING.
I BELIEVE THE WORK IS BEING DONE.
I DON'T KNOW IF IT'S BEING DOCUMENTED, INCORRECTLY DOCUMENTED OR A SYSTEM RETRIEVAL SYSTEM THAT WE'RE PUTTING DATA IN, BUT WE'RE NOT GETTING GOOD DATA OUT.
I DON'T KNOW WHAT THE PROBLEM IS, BUT WE'RE GONNA ABANDON IT AND MOVE FORWARD.
UH, INVOLVED, UM, DISPOSAL OF, OF, UH, NARCOTICS AND, AND THERE SOMEPLACE IN ONE OF THOSE SCREENS YOU HAD, UH, THERE'S A PHRASE CALLED, UH, DOWN DRAINAGE DISPOSAL.
IT'S NOT, I THINK DEA DOESN'T, DOES NOT SANCTION THAT KINDA DISPOSAL.
AND YOU HAD SOME INDICATIONS IN THERE.
UH, SO, UH, WHAT, AND I DON'T REMEMBER THE RECOMMENDATION, BUT, UH, THAT WAS A SIGNIFICANT FINDING.
AND WHAT ARE YOU RECOMMENDING GOING FORWARD IN CHIEF? UH, TO, TO, UH, MAKE SURE WE ARE GUILTY? 'CAUSE THEY, UH, USE SEVERAL EXAMPLES OF
[02:00:01]
DISPOSAL TRASH CANS, THE, THE GROUND, UH, YOU KNOW, YOU NAME IT.SO AGAIN, UH, CHIEF, HOW ARE YOU, ARE YOU SIX MONTHS FROM NOW? WHAT, WHAT, WHAT, WHAT INFORMATION WILL WE HA HAVE, OR WHAT RECOMMENDATION DO YOU THINK YOU'D HAVE AS FAR AS DISPOSAL OF NARCOTICS? BECAUSE THAT'S, UH, IT'S NOT ONLY A FIREFIGHTER ISSUE THAT'S A COMMUNITY ISSUE.
AND YOU KNOW, WE, YOU KNOW, THE, YOU KNOW, YOU GOT THE, THE BAD GUYS, YOU KNOW, THEY, THEY'RE, THEY'RE, THEY'RE CHECKING, YOU KNOW, SEE WHAT THEY CAN.
SO WITH THAT IN MIND, WHAT ARE YOU, WHAT ARE YOUR THOUGHTS? I'M NOT, I'M JUST ASKING YOU FOR THOUGHTS NOW.
NOT FOR WHAT YOU'RE GOING DO OR WHAT YOU, UH, ARE PROPOSE TO DO, BUT WHAT ARE YOUR THOUGHTS ON, ON THAT ISSUE? THE EPA, THAT'S DISTURBING.
THE EPA DOES NOT WANT US TO PUT IT IN THE, THE WASTEWATER SYSTEM OR THE LANDFILL.
THE FDA WANTS US TO USE THE FLUSH METHOD.
AND SO WE GOT TWO FEDERAL AGENCIES IN CONTRAST EACH OTHER.
THE, THE CHALLENGE COUNCILMAN IS HOW DO WE EFFECTIVELY DISPOSE OF THIS OVERAGE OR THIS, THIS, THIS WASTAGE WHEN, WHEN A VIAL HAS 200 MICROGRAMS IN IT, LET ME INTERRUPT YOU.
WHO DID YOU SAY? WHAT AGENCY WANTED THE, THE, THE, UH, THE FLUSH.
FFDA FOOD AND DRUG ADMINISTRATION WANTS IT TO GO INTO THE WATER SYSTEM, BE DILUTED DOWN SIGNIFICANTLY, GO THROUGH A WASTEWATER TREATMENT PLANT, COME OUT THE OTHER SIDE.
AND HAVE THEY GIVEN YOU A POLICY CITATION FOR THAT? NO.
THEY, US FOOD AND DRUG WANTS US TO USE THE FLUSH METHOD.
THE EPA DOES NOT WANT THE FLUSH METHOD.
SO THERE'S, THERE'S PRODUCTS OUT THERE THAT RENDER IT UNUSABLE, BUT I DON'T KNOW WHAT THAT LOOKS LIKE IN A, IN A FIELD USE.
ONE OF THE BIGGEST CHALLENGES THAT FIRE SERVICE HAS WITH DEA COMPLIANCE IS THE DEA DOES NOT KNOW HOW TO MANAGE US BECAUSE THE NARCOTICS ARE NOT IN THE NORMAL SETTING WHERE IT'S IN THE PHARMACY AT THE HOSPITAL AND THE DELIVERED TO THE NURSES STATION, DELIVERED TO THE PATIENT, WASTED IMMEDIATELY MOVE ON.
OURS IS A VERY FLUID SITUATION.
WE HAVE NARCOTICS UNDER OUR LICENSE IN OUR BIG BOLTED DOWN SAFE.
WE HAVE NARCOTICS IN OUR MOBILE SAFES.
AND, AND THAT'S WHERE THE PROBLEM COMES IN.
SO THERE'S PRODUCTS OUT THERE, WE'RE GONNA EXPLORE 'EM, SEE IF THEY'RE FEASIBLE FOR FIELD USE, SEE WHAT THE COST ASSOCIATED WITH THOSE PRODUCTS ARE, UH, AND SEE IF WE CAN USE THOSE PRODUCTS.
IF NOT, WE'RE GONNA COME UP WITH A STANDARD.
UH, IF IT COMES DOWN TO WE'RE GOING TO FOLLOW THE FDA'S FLUSH METHOD, I'M GONNA MAKE SURE THAT OUR WASTEWATER OPERATORS ARE TREATING FOR SUB SUBJECTS THAT COME DOWN THE LINE SO THAT WE NEUTRALIZE IT BEFORE IT GETS DISCHARGED INTO A CREEK.
THE DILUTION METHOD ON THE FLUSH METHOD SHOULD STAND A REASON THAT IT WORKS REALLY WELL BECAUSE THAT TWO CC VIAL IS NOW, OR ACTUALLY IT'S A ONE CC VIAL, IS NOW DILUTED SO MANY TIMES THAT IT'S, IT'S ALMOST INVISIBLE.
BUT I WANNA MAKE SURE BEFORE WE COMMIT TO YOU AND TO THE COMMUNITY THAT WE'RE DOING IT THE RIGHT WAY.
SO WE LOOK FORWARD TO YOUR, YOUR WORK, YOUR WORKING THROUGH THAT, THAT WITH, WITH THE AUDITORS AND, UH, GIVING US SOME UPDATE, UH, LATER ON.
NO, MOST OF MY COMMENTS HAVE BEEN, UH, COUNCILMAN WILLIAMS PRETTY MUCH COVERED IT.
UH, MY CONCERNS BECOME MORE OF A SECURITY, AND THAT IS AGAIN, WHEN WE USE THE VIALS AND YOU DON'T USE ALL OF IT.
OR HOW ARE WE ACCOUNTING FOR WHAT'S TAKING PLACE AND THAT IT DOES NOT GET INTO THE HANDS OF, UH, CRIMINAL ELEMENTS AND SO ON AND SO FORTH.
UH, BUT AGAIN, UH, IT LOOKS LIKE TO ME THAT YOU'VE GOT, UH, MARCH, I THINK I SAW MARCH, 2026 IS YOUR LAST DATE THERE, WHICH IS ANOTHER SIX MONTH UPDATE THAT WE CAN HAVE AS A RESULT OF WHAT WE'VE HEARD HERE TODAY.
SO WITH THAT, UH, I THINK THAT, UH, YOU'VE PRETTY MUCH, YOU'VE FALLEN ON THIS SWORD.
YOU'VE ACCEPTED THAT THERE ARE THINGS THAT NEED TO BE UPDATED AND CORRECTED, AND I AGREE THAT, UH, YES, IT IS VERY EMBARRASSING WHEN THESE TYPES OF NUMBERS COME BEFORE YOU.
UH, AT THE SAME TIME, WE DO UNDERSTAND TOO THAT WHEN YOU HAVE A GROUP OF PARAMEDICS AND EMS AND FOREIGN, THEY'RE DEALING WITH THE EMERGENCIES.
AND OFTENTIMES WE'RE DEALING WITH THE EMERGENCY AND WE JUST DON'T HAVE TIME TO EVEN THINK ABOUT THE RECORD
[02:05:01]
KEEPING ASPECT OF IT.THAT'S A VERY IMPORTANT ELEMENT OF IT, AND IT'S SOMETHING THAT WE DO NEED TO PAY ATTENTION TO.
SO, WITH THAT, THERE ARE ANY OTHER QUESTIONS HERE? ANY OTHER JEFF CHAIRMAN, IF I MAY COMMENT ON, UM, AND, AND, AND ON, ON THE FIRE DEPARTMENT, ESPECIALLY ON CHIEF LEE AND HIS LEADERSHIP.
UM, YOU KNOW, WHEN YOU GO THROUGH THESE FINDINGS, YOU GET CERTAIN RESPONSES BACK FROM THE CLIENT.
AND EARLIER I TALKED ABOUT HOW KEVIN REACTED VERSUS CHIEFLY REACTED.
THEY BOTH HAD A TWO DISTINCT WAY OF REACTING TO, TO OBSERVATIONS.
THEY BOTH WERE SERIOUS ABOUT THIS.
UM, AND CHIEF LEE, UH, I KNOW WORKING WITH HIM FOR THIS LONG, HE'S, HE HAS ALWAYS BEEN VERY OPEN.
ABOUT OBSERVATIONS AND RECOMMENDATIONS.
UM, WE ACTUALLY DID SOME ADDITIONAL WORK WHEN WE INITIALLY HAD SOME INDICATION OF, OKAY, WHY ARE TERMINATED EMPLOYEES? PINS ARE BEING USED A NUMBER OF TIMES AS WELL AS, YOU KNOW, THIS PERSON, THIS FIREFIGHTER, OR THIS PARAMEDIC IS ASSIGNED TO THIS STATION, BUT IT LOOKS LIKE HIS PIN IS BEING USED IN A DIFFERENT STATION.
SO WE ACTUALLY HAD SOME CONCERNS INITIALLY, AND, BUT HAPPY TO REPORT THAT WHEN, WHEN WE ACTUALLY LOOKED DEEP INTO IT, WE LOOKED AT SOME VIDEO SURVEILLANCE, WE LOOKED AT SOME BATCH ACCESS JUST TO MAKE SURE THAT THERE WAS NO INAPPROPRIATENESS WAS HAPPENING, UH, WAS ACTUALLY, IT PROVIDED US SOME, SOME COMFORT THAT PEOPLE ARE, I MEAN, TALKING ABOUT, UM, THE DAILY COUNTS ARE NOT BEING RECURRED.
WE COULD SEE THEY WERE COUNTING ON CAMERA.
AND SO BACK TO CHIEF'S POINT, YES, THESE NUMBERS DON'T LOOK GOOD, BUT THEY DO HAVE SOME LIMITATION WHEN IT COMES TO THE SYSTEMS THAT THEY HAVE.
SOME OF THESE ARE HOMEGROWN SYSTEMS AND, UH, TO, TO GO AND GET A NEW SYSTEM, UM, MATT HAS TO SIGN UP ON IT.
AND, AND SO THEY STRUGGLE, UH, WITH THAT.
UH, AND, AND WE UNDERSTAND THAT AGAIN, THE WHOLE IDEA IS TO IMPROVE, UH, PROCESSES, MONITORING STUFF LIKE THAT COMPARED TO WHERE WE WERE IN 2019.
I'LL TELL YOU, WHEN WE DID THE OBSERVATION IN 2019, THE SAFES INSIDE THE AMBULANCE WERE NOT SPEAKING WITH THE, UH, WITH THE SERVER INSIDE THE STATIONS.
SO THERE WAS THAT GAP THAT'S BEEN FIXED RIGHT NOW, I BELIEVE.
SO THERE'S A LOT OF TECHNICAL LIMITATIONS THAT THEY HAVE.
AND ONCE AGAIN, I, KNOWING CHIEF FOR THIS LONG AND WORKING THROUGH HIM IN MANY AUDITS, I HAVE NO DOUBTS THAT HE, HE, HE CARES FOR ALL OF THIS AND HE CARES FOR THE COMMUNITY AND HE WANTS TO DO THE BEST.
AND, BUT HE ALSO HAS SOME LIMITATIONS WHEN IT COMES TO TECHNOLOGY AND RESOURCES AVAILABLE.
WE'LL SEE YOU IN SIX MONTHS, HUH? WE SHALL SEE, SIR.
SO THEN WE LOOKED AT POLICIES AND PROCEDURES.
THE DEPARTMENT HAS TWO AUTHORITATIVE PRONOUNCEMENTS, BUT THEY HAVEN'T BEEN UPDATED IN OVER 10 YEARS.
DURING THAT 10 YEAR PERIOD, THE DEPARTMENT HAS GONE THROUGH SOME CHANGES, UH, AND THE, BASICALLY THE POLICIES NEED TO BE UPDATED.
UM, THEY PRIMARILY RELY ON PARAMEDICS TO PERFORM ADMINISTRATIVE DUTIES DUE TO NOT HAVING ANY CIVILIAN STAFF.
AND THESE AUTHORITATIVE PRO PRONOUNCEMENTS, UH, PRIMARILY COVER THE DEA REQUIREMENTS RATHER THAN THE HOW TO OF THE ROLES RESPONSIBILITIES, RECORDING INFORMATION, APPROVING TRANSACTIONS, THAT SORT OF THING.
MONITORING, RECONCILING, RUNNING REPORTS, REPORTING TO MANAGEMENT.
SO WE RECOMMENDED THAT THEY DEVELOP AND IMPLEMENT A SET OF WRITTEN POLICIES, PROCEDURES, GUIDELINES, OR PROGRAM MANUAL THAT ENCOMPASSES AT A MINIMUM THE ITEMS DESCRIBED ABOVE TO ENSURE CONTINUITY OF OPERATIONS, PRESERVED KNOWLEDGE AND OFFER ONBOARDING AND TRAINING GUIDANCE TO THE PARAMEDICS.
UPON THEIR COMMITMENT TO WORK AT SUPPORT SERVICES MANAGEMENT CONCURRED AND SAID THAT THEY ACKNOWLEDGED THAT THEY ARE IN NEED OF UPDATING, AND THOSE WILL BE ADDRESSED, UH, FOCUSING ON ALL ASPECTS.
AND THAT WILL BE DONE BY APRIL OF 2026.
SO IN SUPPORT SERVICES AT THE ADMIN BUILDING, THERE ARE TWO PARAMEDICS RESPONSIBLE FOR ORDERING, RECEIVING, AND DISTRIBUTING THE CONTROLLED SUBSTANCES AND SAFEGUARDING THE INVENTORY ROOM SAFE.
THE OPENING AND CLOSING OF THAT SAFE IS DOCUMENTED ON A HANDWRITTEN PAPER LOG BECAUSE THE SAFETY SAFE IS NOT CURRENTLY CONFIGURED FOR ELECTRONIC TRACKING AND REPORTING.
ADDITIONALLY, THESE INDIVIDUALS HAVE RETAINED THEIR PIN ACCESS TO UNLOCK THE AMBULANCE MED VAULTS AND ARE RESPONSIBLE FOR MAINTAINING THE INVENTORY SYSTEM ACTIVITY.
[02:10:01]
TO BOTH THE CONTROLLED SUBSTANCES AND THE SYSTEM TO EDIT AND ENTER INFORMATION, UH, CREATES A SEGREGATION OF DUTIES ISSUE ON THE STATION.AMBULANCES, TWO PARAMEDICS AT EACH OF THE 11 STATIONS PERFORM AN INVENTORY ACCOUNT.
EACH MORNING AT THE BEGINNING OF THE SHIFT, THE SHIFT SUPERVISORS REVIEW THE INFORMATION TO ENSURE THE INVENTORY COUNTS RECONCILED WITH USAGE AND THE PREVIOUS DAY'S COUNT.
IF THERE'S A DISCREPANCY, THE SUPERVISOR MAY INQUIRE FURTHER WITH THE PARAMEDICS FOR CLARIFICATION.
AND IF A CORRECTION NEEDS TO BE MADE, THE SUPERVISOR MAKES THE CORRECTION AND SIGNS OFF ON IT.
ALTHOUGH THE SUPERVISORS ARE NO LONGER GOING ON EMERGENCY CALLS, MED VAULT ACCESS HAS NOT BEEN UPDATED.
AND HAVING CONTROL TO THE CONTROLLED SUBSTANCES, IN ADDITION TO HAVING THE RESPONSIBILITY OF RECONCILING THE INVENTORY, CREATES A SEGREGATION OF DUTIES ISSUE.
NOW FOR RECOMMENDATIONS ONE, FOUR AND FIVE, WE'VE ALREADY COVERED THOSE IN THE PREVIOUS OBSERVATIONS.
SO WE'RE JUST GONNA FOCUS ON NUMBER TWO AND NUMBER THREE.
SO WE RECOMMENDED EVALUATING ELECTRONIC CAPABILITIES OF THE INVENTORY ROOM SAFE.
AND IF THE SAFE CANNOT BE ELECTRONICALLY CONFIGURED, THE PAPER LOG SHOULD BE REVIEWED AND APPROVED PERIODICALLY.
MANAGEMENT CONCURRED SAID THEY WILL EXPLORE THAT AND INTEND TO HAVE THAT COMPLETED JANUARY OF 2026.
WE ALSO RECOMMENDED PERFORMING REGULAR TRANSACTIONAL INVENTORY RECONCILIATIONS IN THE SUPPORT SERVICES AND IN STATION AMBULANCES, AND DOCUMENT THE REASONS THAT CORRECTIONS ARE MADE IN THE SYSTEM MANAGEMENT CONCURS AND WILL EXPLORE OPPORTUNITIES FOR BETTER RECONCILIATION ON A ROUTINE BASIS.
AND THAT WILL BE COMPLETED BY JANUARY OF 2026.
THE FINAL ONE IS ABOUT ELECTRONIC LABELING.
AND UH, ALTHOUGH THERE'S NO LABELING REQUIREMENTS FOR THE VIALS, LEGALLY THERE IS ONE, I'M SORRY, LET ME REPHRASE THAT.
THERE ARE OTHER LEGALLY LABELING REQUIREMENTS FOR CONTROLLED SUBSTANCES.
THIS IS WHAT HAPPENS WHEN I TRY TO GO TOO FAST.
THERE ARE LEGAL REQUIREMENTS TO HAVE, THERE ARE NO LEGAL REQUIREMENTS TO HAVE A UNIQUE IDENTIFICATION NUMBER ASSIGNED TO EACH VIAL FOR INVENTORY TRACKING.
THERE ARE SEVERAL METHODOLOGIES AVAILABLE FOR DOING SO, THOUGH, SO TO DETERMINE INDUSTRY BEST PRACTICES, WE INQUIRED WITH THE CITY'S OF RICHARDSON, PLANO, IRVING, DECATUR, AND SFA, AND RECEIVED RESPONSES FROM RICHARDSON AND SFA.
BOTH OF THOSE ORGANIZATIONS UTILIZE THE SAME ELECTRONIC EMS SUPPLY DISTRIBUTOR AND SOFTWARE THAT GARLAND USES.
HOWEVER, THEY HAVE THE NARCOTICS TRACKING MODULE MODULE THAT WE DO NOT HAVE.
WE RECOMMENDED THAT THE DEPARTMENT CONSIDER AND EVALUATE OTHER SYSTEMS DESIGNED FOR TRACKING NARCOTICS TO ENHANCE EFFICIENCY AND ACCOUNTABILITY AND REDUCE ERRORS.
THEY CONCURRED AND SAID THEY WILL ASSESS THOSE METHODS USED BY THE OTHER ORGANIZATIONS AND IMPLEMENT SOLUTIONS WHEN THEY CAN BY MARCH, 2026.
AND, UH, CHIEF LEE REFERENCED THE NARCOTICS MODULE WHEN HE SPOKE ON NUMBER FOUR, SO THEY'RE LOOKING INTO THAT
SO ANY QUESTIONS ON ANY OF THAT? NOPE, I'M GOOD.
CHAIRMAN, I JUST WANNA
YES, THIS WAS ALSO A VERY THOROUGH AUDIT AND SO WENT ABOVE AND BEYOND TO SEE IF WE CAN HELP THE OPERATIONS APPROVED.
MARK, YOU GOT YOUR MARGIN ORDERS? YES, I DO, SIR.
ALRIGHT, WE'VE GOT ONE MORE TO GO JET.
UM, WE DID A LIABILITY CLAIMS AUDIT BACK IN 2020.
UH, I KNOW SOME OF YOU ARE NOT HERE BACK THEN, UH, DURING THAT TIME.
UM, WHEN I TALK ABOUT LIABILITY CLAIMS, THESE ARE CLAIMS PEOPLE FILE AGAINST THE CITY.
SO THAT PROCESS ITSELF, UH, SOME, IF YOU MAY BE AWARE, UH, WE HAD AN INCIDENT NUMBER OF YEARS AGO, UH, WHICH CAUSED THE CITY SOME FINANCIAL HIT NUMBER OF YEARS AGO.
AND THAT'S PART OF THE REASON WHY WE DO THESE AUDITS PERIODICALLY.
SO WHEN, LAST TIME WHEN WE DID THIS AUDIT, THAT WAS BACK IN 2020, WE HAD 22 UNIQUE RECOMMENDATIONS.
SO THE OBJECTIVE OF THIS AUDIT WAS TO MAINLY CHECK AND SEE WHERE WE ARE ON THOSE RECOMMENDATIONS, AND HAPPY TO REPORT THAT ABOUT 80% OF THOSE 22 RECOMMENDATIONS HAVE BEEN EITHER IMPLEMENTED, PARTIALLY IMPLEMENTED, OR IN PROGRESS.
[02:15:01]
WHO IS OVER THE RISK MANAGEMENT DEPARTMENTS.UM, WE HAVE SEEN A HUGE IMPROVEMENT IN THE OPERATIONS SINCE SHE CAME ON BOARD.
UH, SHE STARTED WITH THE CITY IN EARLY 2003.
BY MID 2003, SHE IMPLEMENTED A LOT OF THESE PROCESSES TOGETHER, AND I'LL GIVE YOU SOME EXAMPLES.
UM, THEY IMPLEMENTED A WEB PORTAL THAT ALLOWS CLAIMANTS TO INPUT CLAIMS DIRECTLY INTO THE SOFTWARE THROUGH THE CITY'S WEBSITE, UM, PROVIDED SOME, YOU KNOW, FILE AND NOTICE CLAIM SHEET THAT INCLUDE INSTRUCTIONS IN ENGLISH, SPANISH, AND IN VIETNAMESE.
UH, ALSO THE PROCESSING TIME HAVE SIGNIFICANTLY IMPROVED BACK IN 2021, THE PROCESSING TIME WAS ABOUT 61 DAYS, 65 DAYS.
UH, BY 2024, IT WAS RELEASED TO, UH, LESS THAN HALF OF THAT 23 DAYS.
SHE ALSO PRETTY MUCH REVIEWED ALL THE DENIED CLAIMS, UH, THAT HER STAFF PROCESSED AND UPDATED POLICIES AND PROCEDURES.
SO KUDOS TO HER, UH, ON DOING THIS WONDERFUL WORK.
UH, YOU'LL HEAR WHEN ZACH IS GOING THROUGH THESE OBSERVATIONS.
UM, WE DO, WE DID MAKE SOME ADDITIONAL RECOMMENDATIONS, A FEW ADDITIONAL ONES, SO YOU'LL HEAR THAT AS WELL.
AGAIN, UM, THANKS TO CHRISTIAN, THANKS TO JULIE FOR WORKING WITH US THROUGHOUT THIS AUDIT.
UM, COMMUNICATION HAS BEEN IMPROVED, DOCUMENTATION HAS BEEN IMPROVED.
UH, REVIEW OF, UM, UM, CLAIMS HAVE BEEN IMPROVED.
UH, SO A LOT OF THINGS HAVE HAVE IMPROVED SINCE THEN.
UM, OUR SCOPE WAS FROM JANUARY, 2021 THROUGH MARCH 31ST, 2025.
AND WITH THAT, ZACH DID THIS FOLLOW UP.
SO I'M GONNA TURN IT, TURN THIS OVER TO HIM.
HE'S GONNA GO QUICKLY OVER WHAT WE OBSERVED INITIALLY, WHAT WE RECOMMENDED AND WHAT WE DID AND WHAT THE STATUS TODAY.
UH, SO JUST QUICKLY, I'M GONNA GIVE Y'ALL A BRIEF BACKGROUND.
SO THE RISK MANAGEMENT DEPARTMENT'S RESPONSIBLE FOR THE LIABILITY CLAIMS PROCESS, WHICH BASICALLY WHENEVER A CLAIMANT SAYS THAT THEY'VE RE UH, RECEIVED PERSONAL INJURY OR PROPERTY DAMAGE THAT'S BEEN CAUSED BY CITY EMPLOYEE VEHICLE OR EQUIPMENT, UH, THE CLAIMANT MAY SEEK RESTITUTION FOR THIS FROM THE CITY AND INITIATES THIS PROCESS BY FILING A CLAIM AGAINST THE CITY.
ALL RIGHT, SO DURING THIS TIME, WE RECEIVED, UH, DURING THE SCOPE WE RECEIVED 1,130 CLAIMS AGAINST THE CITY, AND THE CITY ACCEPTED LIABILITY FOR APPROXIMATELY 32% OF THESE.
SO CLAIMS THAT ARE ESTIMATED TO BE OVER CERTAIN AMOUNTS DO REQUIRE APPROVAL.
SO THESE RANGES ARE, ANY CLAIM LESS THAN $10,000 CAN BE APPROVED BY THE RISK MANAGEMENT DIRECTOR.
AND THERE WERE 325 OF THOSE, UH, THAT WERE PAID DURING THIS, UH, SCOPE.
UH, THERE, THE CLAIMS THAT ARE GREATER THAN 10,000, BUT LESS THAN $100,000 CAN BE APPROVED BY THE CLAIM COMMITTEE, WHICH INCLUDES REPRESENTATIVES FROM LEGAL CITY MANAGER, FINANCE AND RISK MANAGEMENT.
AND THERE WERE 34 OF THOSE DURING THE SCOPE AND THEN CLAIMS GREATER THAN A HUNDRED THOUSAND DOLLARS, UH, REQUIRE APPROVAL BY THE CITY COUNCIL FOR PAYMENT.
AND THERE WERE TWO OF THOSE DURING THE SCOPE.
SO ONCE THESE CLAIMS ARE APPROVED, UM, RISK MANAGEMENT THEN NEGOTIATE THE FINAL SETTLEMENT WITH THE CLAIMANT.
AND DURING THE SCOPE OF THE AUDIT, THERE WERE 361 TOTAL CLAIMS PAID, UH, TOTALING ROUGHLY $1.8 MILLION, AND WITH THE LARGEST BEING $133,935.
AND THEN THE THREE DEPARTMENTS THAT HAD THE HIGHEST NUMBER OF PAID CLAIMS WERE SANITATION WITH 143, POLICE WITH 59 AND GPNL WITH 26 CLAIMS. ALL RIGHT, SO RIGHT INTO IT WITH THE, UH, FIRST, AND THIS IS STRUCTURED THE SAME AS THE, THE PREVIOUS AUDIT WHERE WE, WE GET THE ORDER FROM THAT AUDIT.
SO STARTING OFF, WE HAVE CLAIMS NOT PROCESSED.
SO IN PREVIOUS TESTING IN THE FIRST AUDIT, WE NOTED THAT WHEN A CLAIM IS RECEIVED BY THE CITY SECRETARY, IT IS NOT DIRECTLY ENTERED INTO THE CLAIM SOFTWARE AND SAID THE CLAIM DOCUMENTATION IS IMAGED INTO THE CITY SHARE DRIVE.
AND THEN THE CITY SECRETARY THEN MANUALLY DELIVERED THE CLAIM TO RISK MANAGEMENT.
IN THE PREVIOUS AUDIT, WE RECONCILED THE CLAIM SOFTWARE LISTING TO THE CITY SECRETARY LISTING AND NOTED THAT THREE WERE NOT FOUND IN THE SOFTWARE, AND THEN UPON NOTIFICATION OF THAT, RISK MANAGEMENT IMMEDIATELY ADDED THOSE.
SO OUR INITIAL RECOMMENDATIONS WERE THAT RISK MANAGEMENT SHOULD IMPLEMENT A REVIEW PROCESS TO ENSURE ALL CLAIMS RECEIVED BY THE CITY SECRETARY WERE ENTERED INTO THE CLAIM SOFTWARE AND CONSIDER EVALUATING THE CURRENT PROCESS TO ALLOW THE CITY SECRETARY TO ENTER CLAIMS DIRECTLY INTO THE CL CLAIM SOFTWARE.
SO AS PART OF OUR FOLLOW-UP, UM, WE DID, WE DID SOME TESTING ON, UH, THIS FOR OUR SCOPE.
AND DURING THE SCOPE OF THE FOLLOW-UP OR IN THE AUDIT FOLLOW-UP, 252 CLAIMS WERE RECEIVED BY THE CITY SECRETARY'S OFFICE, WHICH ACCOUNTS FOR ROUGHLY 22% OF THE CLAIMS FILED WITH THE CITY.
SO OF THOSE 252 CLAIMS 19 WERE NOT ENTERED INTO THE RISK MANAGEMENT CLAIM SOFTWARE.
UH, I RECOMMENDS THAT RISK MANAGEMENT WORK WITH THE CITY ATTORNEY'S OFFICE TO DETERMINE THE CORRECT COURSE OF ACTION
[02:20:01]
FOR THESE 19 CLAIMS. AND THEN SECOND, UH, AS OF MARCH, 2025, THE CLAIM REVIEW FUNCTION HAS BEEN OUTSOURCED TO A THIRD PARTY ADMINISTRATOR WHO IS RESPONSIBLE FOR EVALUATING CLAIMS AND DETERMINING LIABILITY.SO BECAUSE OF THIS, IA RECOMMENDS THAT CLAIMS ARE DELIVERED DIRECTLY TO RISK MANAGEMENT, REMOVING THE CITY SECRETARY'S OFFICE FROM THE CLAIM RECEIPT PROCESS.
AND DUE TO THIS, WE GIVE THE FIRST RECOMMENDATION A STATUS OF NOT IMPLEMENTED.
AND THE SECOND, A STATUS OF NOT APPLICABLE.
UH, THE COMMENT AND THE ACTION PLAN FROM THE, UH, DEPARTMENT IS THAT PHYSICAL CLAIM FORMS THAT LACK THE REQUIRED INFORMATION OUTLINED IN THE CHARTER ARE NOT ENTERED INTO THE CLAIM SYSTEM.
CURRENT STAFF CANNOT SPEAK TO THE CLAIM SUBMISSIONS MADE PRIOR TO FEBRUARY, 2023, AS THEY WERE NOT EMPLOYED AT THAT TIME.
IN MAY, 2023, THE CLAIM INTAKE PROCESS WAS REFINED TO INCLUDE INSTRUCTIONS PROVIDED IN ENGLISH, SPANISH, AND VIETNAMESE ON HOW TO PROPERLY FILE A NOTICE OF CLAIM.
SINCE THAT DATE, ANY CLAIMS NOT ESTABLISHED HAVE BEEN DUE TO THE CLAIMANT'S FAILURE TO PROVIDE THE REQUIRED OR REQUESTED INFORMATION.
RISK MANAGEMENT CONSULTED WITH THE CITY ATTORNEY'S OFFICE, WHICH CONFIRMED THAT NO ADDITIONAL INFORMATION, OR SORRY, NO ADDITIONAL ACTION IS REQUIRED UNDER THE CITY ORDINANCES.
THE STATUTE OF LIMITATIONS HAS EXPIRED ON ALL BUT ONE OF THE 19 CLAIMS. ACCORDINGLY, UNDER THE TERMS OF THE CITY'S PROGRAM LIABILITY COVERAGE, THE CLAIMS ARE EXCLUDED FROM COVERAGE BY THE PLAN.
AND SECONDLY, RISK MANAGEMENT CONCURS WITH THE RECOMMENDATION THAT PHYSICAL CLAIM FORMS BE RECEIVED DIRECTLY ONCE RECEIVED.
PHYSICAL CLAIM FORMS ARE ENTERED ELECTRONICALLY INTO THE CLAIM SYSTEM, AND A COPY OF EACH WILL BE ELECTRONICALLY SUBMITTED, UM, TO THE CI CITY SECRETARY'S EMAIL ADDRESS FOR RECORD KEEPING.
AND THIS WILL BEGIN FOR THE 2026 FISCAL YEAR.
IF I MAY, UM, AND I THINK JULIE CAN SPEAK ON THIS AS WELL, BUT, UH, THE CLAIMS IN THE CITY ATTORNEY'S OFFICE MAY WANT TO AS WELL, BUT CLAIMS BEING RECEIVED IN THE CITY SECRETARY'S OFFICE IS ACTUALLY WITHIN THE CITY CHARTER.
I WOULD REQUIRE A CHARTER ELECTION TO AMEND, UH, THE CLAIM PROCESS, NOT GOING TO THE CITY SECRETARY'S OFFICE.
THAT'S, UH, SECTION, IT'S, UH, ACTUALLY, IT'S, IT'S ARTICLE, UH, 17 OF MISCELLANEOUS PER PER PROVISION SECTION FOUR.
AND, AND THAT'S IN THE CITY CHARTER.
AND I, I BELIEVE IN THAT ONE IT ALSO STATES THAT EITHER THE CITY MANAGER OR, UM, A DESIGNEE COULD, UM, RECEIVE THOSE INSTEAD.
SO ALSO JUST TO CLARIFY, ANY, UH, INCIDENT THAT'S PUT INTO THE SYSTEM, A BIAS CITIZEN OR THROUGH OUR OFFICE, UM, A COPY OF THAT DOES GO TO THE CITY SECRETARY'S OFFICE.
WE'RE SAYING HOWEVER, THAT, UH, WE'RE NOT SEEING THE USE, SO WE'RE NOT SEEING THE SENSE OF IT CONTINUING TO BE, UH, TAKEN INITIALLY BY THE CITY SECRETARY.
IS THAT, SO THE PROCESS RIGHT NOW IS IF A CITIZEN BRINGS IN A PAPER FORM, THEY HAND IT TO THE, THE MARSHAL DOWNSTAIRS OR ON THE FIRST FLOOR, AND THEN THAT GOES UP TO THE CITY SECRETARY'S OFFICE, THEY THEN SCAN IT, PUT IT INTO A, A SHARED DRIVE AND EMAIL IT OVER TO RISK MANAGEMENT.
AND THEN RISK MANAGEMENT IS, UH, MANUALLY IT INTO OUR ONLINE SYSTEM.
AND SO WE'RE JUST WANTING TO CUT OUT THAT ADDITIONAL STEP AND IT GO DIRECTLY TO US, ENTERED INTO THE SYSTEM, AND THEN THE CITY SECRETARY IS NOTIFIED AND RECEIVES A COPY OF THAT AS WELL.
SO WE'RE NOT TAKING CITY SECRETARY OUT OF IT, WE'RE JUST OUTTA PROCESS.
WE'RE ELIMINATING ONE STEP AND THE CITY SECRETARY IS STILL NOTIFIED OF THE CLAIM AND THAT'S GONNA TAKE A CITY.
OH, DOES THAT TAKE GOING THROUGH THE, UH, CHARTER IN ORDER TO DO THAT? IS THAT WHAT WE'RE SAYING? I, UH, BASED ON OUR UNDERSTANDING, THE CHARTER ALSO GIVES THE CITY MANAGER THE AUTHORITY, UH, TO, TO RECEIVE IT.
AGAIN, CD'S, SECRETARIES IS BEING NOTIFIED AND GETTING A COPY OF THIS CLAIM AUTOMATICALLY.
SO I DON'T KNOW IF IT IS NECESSARY TO HAVE A CHARTER AMENDMENT.
CAN YOU
UM, I THINK THE SECTION THAT PHIL POINTED TO IN, UM, ARTICLE, WHAT IS THAT 17 SECTION FOUR SAYS THAT THEY SHALL FILE A NOTICE OF WRITING WITH THE CITY MANAGER OR CITY SECRETARY WITHIN SIX MONTHS AFTER THE SAME HAS BEEN SUSTAINED RE REGARDING THE NOTICE THAT HAS TO BE GIVEN.
SEE IF I MAY CLARIFY ONE THING, UM, THE ONLINE CLAIMS RIGHT NOW GOES DIRECTLY TO, UH, RISK MANAGEMENT.
SO MAJORITY OF THE CLAIMS ARE ONLINE.
WE'RE TALKING ABOUT A HANDS FULL, RIGHT? SO IF WE HAVE TO, SO I, YES, I DON'T THINK THAT CHARTER, I THINK, I THINK WE'RE GOOD.
RIGHT? AND I THINK THE ONLINE CLAIMS PORTION, SO AS SOON
[02:25:01]
AS, AS A CITIZEN IS SUBMITTING, UM, OR HIT SUBMIT, THEN IT IS PRODUCING A NOTIFICATION NOT ONLY TO MY OFFICE, BUT ALSO TO CITY SECRETARY'S OFFICE.SO IT'S HAPPENING SIMULTANEOUSLY.
SO BASICALLY JUST THE RECOMMENDATION IS JUST FOR RISK MANAGEMENT TO BE ENTERING THE CLAIM ON THE BEHALF OF THE CITIZEN THROUGH OUR ONLINE PORTAL AND NOT REQUIRING THEM TO, TO DO THAT.
SO THERE'S A PAPER SOLUTION FOR THAT RIGHT NOW, AND IT'S JUST HAVING THE EXTRA STEP OF GOING TO CITY SECRETARY'S OFFICE SITTING, YOU KNOW, NOT SITTING THERE, BUT IT, IT TOUCHES THEIR DESK FIRST BEFORE IT COMES TO OUR DESK.
AND, AND THAT, THAT MAKES SENSE WITH ME.
UH, I, I GUESS THE, THE KEY NOW IS INTERPRETATION, LEGAL INTERPRETATION OF IF IT OKAY TO BYPASS UPFRONT THE CITY SECRETARY SENDING IT TO RISK MANAGEMENT.
BUT BASED ON THAT SECOND PHRASE THAT YOU READ, IT SEEMS LIKE IT WOULD BE OKAY TO DO SO.
IS IT CHRIS? CHRIS, CAN YOU, UH, HELP US OUT HERE? NO, NOT KRISTEN.
I'M TALKING, I'M SORRY, I'M THINKING ABOUT MY SENIOR SECRETARY.
BUT, UH, THERE IS ANOTHER ISSUE THAT I'M, I'M HAVING, UH, CONCERNS WITH THOUGH.
AM I HEARING YOU SAY THOUGH, BECAUSE, UH, SOME CLAIMS WERE NOT FILED OR PROPERLY OR WHATEVER, THAT WE ARE AT THE POINT NOW SAYING THAT THEY'RE, THEY SHOULD NOT EVEN BE DEALT WITH WHAT'S HAPPENING HERE.
SO THE WAY THAT THE CHARTER IS WRITTEN IS THAT THEY'RE, THEY'RE REQUIRED TO PROVIDE THE WHO, WHAT, WHEN, WHERE, WHY, AND HOW MUCH OF, OF THEIR CLAIM THAT THEY'RE ASSERTING AGAINST THIS.
AND SO WHEN I, UH, BECAME, WHEN I CAME ON BOARD, THERE WERE FORMS THAT WERE BEING ACCEPTED BY THE CITY SECRETARY'S OFFICE THAT DID NOT MEET THOSE REQUIREMENTS.
AND SO THEN OUR OFFICE WAS SENDING A MEMO TO THE CITIZEN TO SAY, WE'VE RECEIVED THIS, BUT IT DOESN'T SATISFY THE REQUIREMENTS OF THE CHARTER.
PLEASE PROVIDE THIS INFORMATION.
AND SO ALL BUT ONE OF THOSE 19, UM, SOME OF THE 19 HAPPENED BEFORE I GOT HERE, SO I CAN'T SPEAK TO WHAT WAS, WHAT COMMUNICATION WAS PROVIDED TO THEM.
BUT SINCE I, I GOT HERE ALL BUT ONE OF THEM, THE STATUTE OF LIMITATIONS HAS RAN, THEY HAD TWO YEARS TO FILE, RIGHT.
UM, OR TO PROVIDE THE, THE REQUIRED INFORMATION.
AND SO ALL BUT ONE, AND WE HAVE YET TO RECEIVE ANY INFORMATION FROM THAT ONE.
ESPECIALLY FOR OUR CITIZEN THREE.
ALRIGHT, NUMBER TWO, UH, CLAIM PROCESSING TIMEFRAME.
SO PREVIOUSLY IN THE FIRST AUDIT, I ANALYZED, UM, THE CLAIMS PROCESS OVER THE AUDIT SCOPE FOR, UH, AMONG OTHER THINGS, THE NUMBER OF BUSINESS DAYS BETWEEN ENTERING THE CLAIM INTO THE RISK MANAGEMENT CLAIM SOFTWARE AND THE DATE THAT IT WAS CLOSED, WHICH SHOWED THAT 94 OF THE 449 CLOSED CLAIMS TOOK 60 OR MORE BUSINESS DAYS TO PROCESS FROM THE DATE RISK MANAGEMENT, UH, ENTERED THE CLAIM INTO THE SOFTWARE TO THE DATE THAT IT WAS CLOSED.
SO DUE TO FINDING THIS IN THE PREVIOUS AUDIT RISK, UH, IA RECOMMENDED THAT RISK MANAGEMENT SHOULD AMEND THE COG CITY SAFETY TO DIRECTIVE TO ADDRESS REQUIREMENTS FOR REPORTING INCIDENTS IN A TIMELY MANNER.
AND I'M GONNA START JUMPING SO IT'S LESS CONFUSING.
SO TO THAT ONE IN THE FOLLOW UP, WE NOTED THAT, UH, SORRY, STILL NUMBER ONE.
SO THAT THE NEWLY DEVELOPED CITYWIDE MOTOR VEHICLE COLLISION PROCESS POLICY DOES INCLUDE A STATEMENT REQUIRING THE INCIDENT REPORTS AND ALL SUPPORTING DOCUMENTATION BE SUBMITTED BY THE DEPARTMENT TO THE, UH, CLAIM SOFTWARE WITHIN THREE BUSINESS DAYS.
SO FOR THAT ONE, WE GAVE IT A STATUS OF FULLY IMPLEMENTED.
THE SECOND RECOMMENDATION WE GAVE ON THIS ONE IS THAT THEY SHOULD UPDATE THE RISK MANAGEMENT LIABILITY CLAIM PROCEDURE POLICY TO INCLUDE CLAIM PROCESSING MILESTONES.
DURING OUR TESTING IN THE FOLLOW-UP, WE NOTED THAT THE RISK MANAGEMENT DEPARTMENT HAS INCLUDED INTERNAL PROCESSING MILESTONES IN THEIR, UH, SOP.
SO WE GAVE THAT ONE A STATUS OF FULLY IMPLEMENTED.
THE NEXT ONE, UH, IS THE SAME AS THE FIRST CONSIDER EVALUATING THE CLAIM PROCESS TO ENABLE THE CITY SECRETARY TO ENTER CLAIMS INTO THE RISK MANAGEMENT CLAIM SOFTWARE.
UH, THAT ONE'S NOT APPLICABLE ANYMORE.
AND THEN NUMBER FOUR, DEVELOP, IMPLEMENT, AND COMMUNICATE A CLAIM STATUS REPORT TO CITY MANAGEMENT AND DEPARTMENTS.
SO RISK MANAGEMENT DOES NOT CURRENTLY SEND PERIODIC CLAIM STATUS REPORTS TO CITY ADMINISTRATION AND OR DEPARTMENTS AND PER RISK MANAGEMENT, THIS IS DUE TO HISTORICAL AND ONGOING GAPS IN DATA CAPTURING.
UH, LEADERSHIP HAS ESTABLISHED A PHASE APPROACH TO ENHANCE AND UNIFY DATA COLLECTION IN ORDER TO PRODUCE STANDARDIZED REPORTS FOR BOTH CITY ADMINISTRATION AND DEPARTMENTS.
IN THE INTERIM, RISK MANAGEMENT HAS PILOTED QUARTERLY DASHBOARD REPORTS WITH THE STREETS DEPARTMENT AND CONTINUES ITS PARTNERSHIP WITH THE SANITATION DEPARTMENT TO PROVIDE AD HOC REPORTING UPON REQUEST.
SO WE GAVE THAT ONE AN IMPLEMENTA, UH, IMPLEMENTATION STATUS OF IN PROGRESS.
[02:30:01]
WE NOTE THAT THERE WERE 408 INCIDENT REPORTS THAT LACKED CORRESPONDING CLAIMS IN THE RISK MANAGEMENT CLAIM SOFTWARE.WE STATISTICALLY SAMPLED 76 OF THESE INCIDENT REPORTS TO DETERMINE IF DETAILS OF THE INCIDENT WERE THOROUGHLY DOCUMENTED.
UH, SO BASICALLY IN THE ORIGINAL THEY WERE LOOKING FOR, UH, PROOF OF INCIDENT OCCURRENCE AND POTENTIAL CLAIMANT COMMUNICATION.
SO OVERALL THE, THE DEPARTMENT'S ADEQUATELY DOCUMENTED POTENTIAL CLAIMANT CONTACT INFORMATION, BUT THERE WERE SOME DEFICIENCIES OF THESE 76.
UM, WE VERIFIED THAT 17 LACKED, UH, EVIDENCE SUCH AS PHOTOGRAPHS AND 44 LACKED EVIDENCE OF DEPARTMENTAL NOTIFICATION OF INCIDENT TO THE POTENTIAL CLAIMANT.
SO BECAUSE OF THIS, UH, HAPPENING IN THE PREVIOUS AUDIT, UH, THERE WAS A RECOMMENDATION THAT RISK MANAGEMENT SHOULD REVIEW INCIDENT REPORTS TO ENSURE APPROPRIATE DOCUMENTATION IS INCLUDED IF AVAILABLE.
SO IN THE FOLLOW UP, WE REVIEWED A SAMPLE OF 59 CLAIMS IN THEIR CORRESPONDING INCIDENT REPORTS TO ENSURE APPROPRIATE DOCUMENTATION WAS INCLUDED.
ALL KEY DOCUMENTATION WAS SAVED TO THE FILES WITH THE EXCEPTION OF, UH, ONE CLAIM THAT WAS GREATER THAN A HUNDRED THOUSAND THAT DID NOT HAVE EVIDENCE OF CITY COUNCIL APPROVAL, UM, PRIOR TO PAYMENT AND A NUMBER OF CLAIMS THAT DID NOT HAVE EVIDENCE OF INCIDENT VERIFICATION OR CONFIRMATION WITH DEPARTMENT LEADERSHIP, ALTHOUGH MOST OF THESE INCLUDED AN INCIDENT REPORT FROM THE DEPARTMENT, UH, VERIFICATION WITH DEPARTMENT LEADERSHIP OR DESIGNEE IS CRITICAL BECAUSE AN INCIDENT REPORT CAN BE CREATED IN THE SYSTEM BY ANY STAFF MEMBER.
AND BECAUSE OF THIS, WE GAVE IT A STATUS OF PARTIALLY IMPLEMENTED.
AND THE ACTION PLAN OR COMMENT FROM THE DEPARTMENT IS THAT RISK MANAGEMENT OBTAINED RISK CLAIMS BOARD APPROVAL FOR THE CLAIM EXCEEDING $100,000 AND HAS SINCE CONFIRMED THAT HANDLING STAFF ARE AWARE OF THIS THRESHOLD REQUIRING CITY COUNCIL APPROVAL.
THE SECOND RECOMMENDATION THAT I MADE BASED ON THIS WAS TO UPDATE THE COG CITY SAFETY DIRECTIVE TO PROVIDE INSTRUCTIONS ON HOW TO ADVISE POTENTIAL CLAIMANTS OF WHO TO CONTACT FOR PURSUING A CLAIM AGAINST THE CITY.
AND WE NOTED THAT THE NEWLY DEVELOPED CITYWIDE MOTOR VEHICLE COLLISION PROCESS INCLUDES THE WORDING AND DIRECTION OF HOW TO AND WHAT TO USE TO, TO NOTIFY THESE, UM, POTENTIAL CLAIMANTS.
AND WE GAVE THAT AN IMPLEMENTATION OF FULLY IMPLEMENTED WHEN YOU PARTIALLY IMPLEMENTED.
EXPLAIN AGAIN, THE NUMBER OF CLAIMS DID NOT HAVE EVIDENCE OF EVIDENCE VERIFICATION CONFIRMATION WITH SHIP, ALTHOUGH MOST OF THESE AN INCIDENT REPORT VERIFICATION, DEPARTMENT LEADERSHIP DESIGNATE IS CRITICAL.
SO CHAIRMAN, IF I MAY EXPLAIN THAT, UM, THE REASON WHY WE, WE MADE THAT RECOMMENDATION, UM, WHEN THE CITY WENT THROUGH THAT FRAUD INCIDENT THAT I MENTIONED EARLIER, UM, THE FRAUD INCIDENT, YES.
YOU DON'T HAVE TO GO ANY FURTHER.
WELL, I, BUT I KNOW ABOUT IT, SO YEAH, UNLESS SOMEONE NEEDS IT, I DO TOO.
SO CHRIS, NO, I KNOW WHAT IT IS.
SO ONE OF THE CONTROLS THAT WE, WE WANTED TO IMPLEMENT IS TO VERIFY VERIFYING THE INCIDENT WITH THE DEPARTMENT JUST TO ENSURE THAT IT DID HAPPEN.
OKAY? AND SO THAT'S WHY, UM, YOU KNOW, SOME OF YOUR PAST LESSONS LEARNED CONTINUES AND THAT'S WHY WE, WE STRONGLY FEEL ABOUT US, THOSE MANAGEMENT DEPARTMENT REACHING OUT TO THE DE TO THE DEPARTMENTS AND GETTING VERIFICATION, GIVE CREDITS TO, UH, TO JULIE.
SHE, SHE HAS SET UP THE SYSTEM, UH, TO AUTOMATICALLY, CORRECT ME IF I'M WRONG, AN EMAIL NOTIFICATION GOES TO THE DESIGNEE, UH, OF THE DEPARTMENT OR THE EITHER SAFETY COORDINATOR, SAFETY COORDINATOR OR DESIGNEE.
RIGHT NOW WHAT WE ARE SAYING IS LET'S YOU KNOW, LET'S, YOU KNOW, LET'S, LET'S ALSO INCLUDE THE DEPARTMENT HEAD AS PART OF THE NOTIFICATION SO THEY'RE AWARE OF IT.
AND, AND PART OF THE REASON IS TECHNICALLY ANY EMPLOYEES CAN GO CREATE AN INCIDENT REPORT AND RISK MANAGEMENT WOULD NOT KNOW IF I CAN CREATE ON BEHALF OF ALLISON AND SHE WOULD NOT KNOW OR MATT WOULD NOT KNOW.
SO THAT'S WHY IT'S IMPORTANT FOR RISK MANAGEMENT TO NOTIFY MATT, HEY, THERE'S BEEN A, UM, INCIDENT REPORT CREATED IN THE NAME OF ALLISON.
IS IT FROM ALLISON? IS MATT AWARE OF THIS? SO I HOPE THAT HELPS.
AND, UH, DO UNDERSTAND TOO THAT ONE OF THE REASONS THAT I MAY QUESTION SOMETIMES I RECOGNIZE THAT OUR, OUR CITIZENRY HAS A, UH, OPTION.
SAY THEY HAVE THE, UH, ABILITY TO PULL OUR TAPES OF OUR MEETINGS TO LISTEN TO WHAT HAPPENED.
AND I LIKE TO TRY AND BLAME CLARITY AND TRANSPARENCY SUCH THAT WHEN THEY LISTEN TO THOSE, THEY UNDERSTAND EXACTLY WHAT THE CRUX OF WHAT WE'RE SPEAKING OF IS ABOUT.
[02:35:03]
ALRIGHT.LET'S, UH, SO NUMBER FOUR, UH, HAS TO DO WITH CLAIM DOCUMENTATION.
PART OF THIS CORRESPONDS WITH WHAT WE JUST TALKED ABOUT.
SO, UH, FOR THE FIRST RECOMMENDATION YOU'LL SEE IS JUST, UH, REFERRING BACK TO THE PREVIOUS ONE.
UH, BUT, SO IN THE PREVIOUS AUDIT I REVIEWED A SAMPLE OF 66 CLAIMS THAT WERE APPROVED FOR PAYMENT.
UH, WE REVIEWED THE CLAIMS TO ENSURE RISK MANAGEMENT MAINTAINED KEY DOCUMENTATION IN THE CLAIM SOFTWARE.
OVERALL RISK MANAGEMENT ADEQUATELY RESEARCHED THESE CLAIMS. HOWEVER, THERE WERE SOME DEFICIENCIES AS SIX OF THE SIX SIX CLAIMS ARE MISSING DOCUMENTATION SUCH AS PHOTOS, DEPARTMENTAL VERIFICATION, THIRD PARTY DOCUMENTATION, AND INVOICES OR STATEMENTS.
SO, UM, WE RECOMMENDED PREVIOUSLY THAT RISK MANAGEMENT SHOULD ENHANCE THE CLAIMS REVIEW PROCESS TO ENSURE ALL CLAIMS CONTAIN ADEQUATE SUPPORTING DOCUMENTATION AND COMMUNICATION.
THIS ONE IS THE ONE WE REFER BACK TO THE PREVIOUS.
UM, THE SECOND, UH, RECOMMENDATION WAS THAT RISK MANAGEMENT SHOULD DEVELOP AND IMPLEMENT A CHECKLIST TO VERIFY ALL NECESSARY CLAIM INFORMATION IS OBTAINED AND ATTACHED IN THE RISK MANAGEMENT CLAIM SOFTWARE PRIOR TO CLOSING CLAIMS. THE REQUIREMENTS MAY VARY BY CLAIM TYPES.
SO IN OUR FOLLOW UP, WE NOTED THAT RISK MANAGEMENT HAS ADDED A HIGH LEVEL CHECKLIST IN THEIR CLAIM HANDLING, SOP, WHICH INCLUDES INCIDENT DETAILS, WITNESS STATEMENTS, AND CORRESPONDENCE WITH CLAIMANTS.
AND WE GAVE THAT A STATUS OF FULLY IMPLEMENTED.
AND THE THIRD RECOMMENDATION THAT WAS MADE WAS THAT RISK MANAGEMENT SHOULD UPDATE THE RISK MANAGEMENT LIABILITY CLAIM PROCEDURE TO INCLUDE REQUIREMENTS FOR DOCUMENTING DEPARTMENTAL VERIFICATION AND COMMUNICATION.
SO IN THE FOLLOW UP, WE NOTED THAT, UM, RISK MANAGEMENT'S LIABILITY CLAIM HANDLING SOP DOES NOT INCLUDE REQUIREMENTS FOR DEPARTMENTAL VERIFICATION.
SO IN ORDER TO DETERMINE LEGITIMACY OF CLAIM, UM, IF CLAIMS, I INDEPENDENTLY VERIFIED 14 OF 59 CLAIMS WITH DEPARTMENT LEADERSHIP.
ACCORDING TO THE DEPARTMENTS, A CONTRACTOR WAS RESPONSIBLE FOR TWO OF THESE CLAIMS AND THIS RESULTED IN CLAIM PAYMENTS TOTALING $5,000.
I RECOMMENDS THAT RISK MANAGEMENT SEEK RECOVERY FROM THE CONTRACTORS FOR THESE TWO, UH, CLAIMS THAT WERE PAID.
AND WE FURTHER RECOMMEND THAT RISK MANAGEMENT VERIFY THE LEGITIMACY OF CLAIMS WITH DEPARTMENT LEADERSHIP OR DESIGNEE BEFORE CLAIMS ARE PROCESSED.
SO FOR THAT ONE, WE GAVE A STATUS OF NOT IMPLEMENTED.
UH, THE ACTION PLAN FROM THE DEPARTMENT, UH, IS THAT RISK MANAGEMENT CONCURS WITH THE RECOMMENDATION TO PURSUE RECOVERY FROM LIBEL CONTRACTORS AND HAS INITIATED THIS PROCESS FOR BOTH CLAIMS THAT WERE PAID.
AND RISK MANAGEMENT CURRENTLY SENDS NOTIFICATIONS TO DEPARTMENTAL POINTS OF CONTACTS DESIGNATED BY LEADERSHIP WHEN A CLAIM IS ESTABLISHED, THEREBY INITIATING THE INVESTIGATION PROCESS GOING FORWARD.
THESE NOTIFICATIONS WILL INCLUDE DEPARTMENT LEADERSHIP.
ALRIGHT, NUMBER FIVE, CLAIM REPORTING.
SO IN THE PREVIOUS AUDIT, WE NOTED THAT RISK MANAGEMENT DOES NOT GENERATE AND COMMUNICATE A COMPREHENSIVE ANNUAL REPORT TO CITY MINI CITY ADMINISTRATION TO INFORM THEM ABOUT CERTAIN CRITICAL FACTORS, SUCH AS TOTAL NUMBER OF CLAIMS PROCESS AND TOTAL AMOUNT SPENT FOR CLAIMS, AS WELL AS OTHER, OTHER ITEMS. UH, IN ADDITION, RISK MANAGEMENT DOES NOT GENERATE AND COMMUNICATE QUARTERLY DASHBOARD REPORTS TO DEPARTMENT MANAGEMENT.
SO DURING THAT AUDIT, WE RECOMMENDED THAT RISK MANAGEMENT SHOULD ADD A REPORTING REQUIREMENT TO THE RISK MANAGEMENT LIABILITY CLAIM PROCEDURE.
IN THE FOLLOW-UP, WE NOTED THAT, UM, AS OF 9 17 25 RISK MANAGEMENT'S LIABILITY CLAIM HANDLING SOP INCLUDES A REQUIREMENT TO PRODUCE AND DISTRIBUTE MONTHLY DASHBOARD REPORTS TO DEPARTMENTS AND QUARTERLY EXECUTIVE SUMMARIES TO A CITY ADMINISTRATION.
THE SECOND RECOMMENDATION WAS TO GENERATE AND COMMUNICATE THESE ANNUAL AND QUARTERLY DASHBOARD REPORTS TO CITY ADMINISTRATION AND DEPARTMENTS.
RISK MANAGEMENT HAS NOT YET IMPLEMENTED THEIR ANNUAL AND QUARTERLY DASHBOARD REPORTING TO CITY ADMINISTRATION AND DEPARTMENTS.
RISK MANAGEMENT STATED THAT THEY ARE IN THE PROCESS OF DEVELOPING REPORTS IN THE CLAIM SYSTEM IN ORDER TO PROVIDE THIS INFORMATION TO EACH AFFECTED DEPARTMENT AND CITY ADMINISTRATION.
PER RISK MANAGEMENT, A PROJECT IS SCHEDULED FOR FISCAL YEAR 26 TO ENHANCE SYSTEM DATA FIELDS TO SUPPORT THE PRODUCTION OF MEANINGFUL MONTHLY DEPARTMENTAL REPORTS AND QUARTERLY REPORTS TO CITY ADMINISTRATION.
IN ADDITION, RISK MANAGEMENT HAS RECENTLY FILLED A POSITION DEDICATED TO DEVELOPING TREND REPORTS TO SUPPORT LOSS MITIGATION EFFORTS.
FOR THAT ONE, WE GAVE A STATUS OF NOT IMPLEMENTED.
ALRIGHT, NEXT, UH, CLAIM APPROVAL.
SO IN THE PREVIOUS AUDIT CLAIMS GREATER THAN $10,000, BUT LESS THAN A HUNDRED THOUSAND DOLLARS REQUIRE APPROVAL FROM THE CLAIMS COMMITTEE BEFORE PAYMENT.
AND AS WE SAID, AS WE SAW EARLIER, CLAIMS GREATER THAN A HUNDRED THOUSAND DOLLARS REQUIRE APPROVAL FROM CITY COUNCIL BEFORE PAYMENT.
SO I DETERMINED THAT NINE OF 12 CLAIMS GREATER THAN $10,000 DID NOT HAVE CLAIM COMMITTEE OR CITY COUNCIL APPROVAL DOCUMENTATION ATTACHED IN
[02:40:01]
THE CLAIM SOFTWARE IN THE PREVIOUS AUDIT.SO DUE TO THIS, I RECOMMENDED THAT RISK MANAGEMENT SHOULD AMEND THE LIABILITY CLAIM PROCEDURE TO ADDRESS REQUIREMENTS FOR DOCUMENTING ALL NECESSARY APPROVALS FOR CLAIMS, PARTICULARLY THOSE GREATER THAN $10,000.
SO IN THE FOLLOW-UP, WE NOTED THAT RISK MANAGEMENT HAS CLAIM PAYMENT APPROVAL THRESHOLDS IN THEIR CLAIM HANDLING SOP AND WE GAVE THEM A STATUS OF FULLY IMPLEMENTED.
SECOND RECOMMENDATION WAS THAT RISK MANAGEMENT SHOULD OBTAIN CONFIRMATION FOR THE CITY FROM THE CITY ATTORNEY'S OFFICE THAT THE SETTLEMENT AMOUNT WAS WITHIN THE RANGE APPROVED BY THE CLAIMS COMMITTEE OR CITY COUNCIL.
SO TO TEST, UH, THE OVERALL CLAIMS WITHIN THESE RANGES, WE TESTED A SAMPLE OF 59 CLAIMS WITH 14 BEING IN THE RISK, UH, CLAIM BOARD'S APPROVAL RANGE, AND TWO BEING IN THE CITY COUNCIL'S APPROVAL RANGE.
WE NOTED THAT ALL 14 OF THESE CLAIMS AND THE RISK CLAIM BOARD'S APPROVAL RANGE HAD APPROPRIATE APPROVAL DOCUMENTED IN THE CLAIM FILE AND THAT ONE OF THE TWO CLAIMS IN THE CITY COUNCIL'S APPROVAL RANGE DID NOT HAVE APPROPRIATE APPROVAL DOCUMENTED.
AND FOR THAT ONE WE GAVE A STATUS OF PARTIALLY IMPLEMENTED.
ANY QUESTIONS ON THAT ONE? NO SIR.
DENIED CLAIMS. SO IN THE PREVIOUS AUDIT WE NOTED, UH, THIS WAS A PREVIOUS, UM, POSITION IN THE DEPARTMENT.
THE ICPM IS RESPONSIBLE FOR PROCESSING AND DETERMINING CLAIM ELIGIBILITY.
WHEN A CLAIM IS DENIED BY THE ICPM, THERE WAS NO REVIEW BY MANAGEMENT DUE TO THIS RISK MANAGEMENT.
UM, WE RECOMMENDED THAT RISK MANAGEMENT SHOULD AMEND THE CLAIM PROCESS TO INCLUDE THE REVIEW OF A SAMPLE OF DENIED CLAIMS BY THE RISK MANAGEMENT DIRECTOR, OF WHICH, UM, AS A PART OF OUR, WE REVIEWED A SAMPLE OF 63 DENIED CLAIMS OF THESE 20 DID NOT HAVE EVIDENCE OF MANAGEMENT REVIEW OCCURRING AND 16 DID NOT HAVE EVIDENCE OF PROCESSING DENIAL LETTERS.
ALL OF THESE OCCURRED PRIOR TO MID 2023.
SINCE MID 2023, ALL SAMPLED CLAIMS BOTH HAVE A, UH, MANAGEMENT REVIEW OCCURRING AND DOCUMENTED AND A DENIAL LETTER DOCUMENTED IN THE SYSTEM.
SO FOR THAT, WE GAVE IT A STATUS OF FULLY IMPLEMENTED.
THE NEXT RECOMMENDATION WAS TO UPDATE THE RISK MANAGEMENT LIABILITY CLAIM PROCEDURE TO REFLECT THIS CHANGE.
AND WE NOTED THAT THEIR NEW SOP INCLUDES PROVISIONS FOR QUARTERLY AUDITS OF ALL CLAIMS FILES, WHICH INCLUDES DENIED AND PAID CLAIMS. AND WE GAVE THAT A STATUS OF FULLY IMPLEMENTED ALRIGHT, SOFTWARE ACCESS RIGHTS.
UM, AND THE PREVIOUS AUDIT RISK MANAGEMENT DID NOT PERIODICALLY RUN A SOFTWARE ACCESS RIGHT REPORT TO VERIFY PERSONNEL WITH ACCESS TO THE SYSTEM HAVE THE PROPER ACCESS RIGHTS.
WE RECOMMENDED THAT RISK MANAGEMENT SHOULD INITIATE A CLAIM SOFTWARE ACCESS REPORT AND PERFORM A REVIEW OF CLAIM SOFTWARE ACCESS ON A PERIODIC BASIS.
AS OF JULY, 2025, THERE WERE 16 UNIQUE USERS WITHIN THE SOFTWARE.
OF THESE TWO USERS WERE NO LONGER EMPLOYED WITH THE CITY.
UH, WE NOTED THAT AS SOON AS JULIE SAW THIS, SHE REMOVED THEM AND TERMINATED, UH, THEIR ACCESS TO THE SYSTEM IMMEDIATELY.
UM, HOWEVER WE GAVE THAT ONE A STATUS OF NOT IMPLEMENTED.
UM, FOR THE SECOND RECOMMENDATION, UH, WAS TO AMEND THE CLAIM PROCEDURE TO ADDRESS MANAGEMENT REVIEW OF CLAIM SOFTWARE ACCESS ROLES, UM, AGAIN, IN THE LIABILITY CLAIMS HANDLING.
SOP, UH, AND NOW INCLUDES YOUR REQUIREMENT TO REVIEW ACCESS PERMISSIONS ON A REGULAR SCHEDULE.
WE GAVE THAT A STATUS OF FULLY IMPLEMENTED.
ALRIGHT, SO YOU'VE HEARD ME SAY A LOT ABOUT POLICIES, PROCEDURES CHANGING.
UH, THIS ONE IS SOLELY ABOUT, UM, THE PREVIOUS PROCEDURES DID NOT REFLECT THE CURRENT, UM, PRACTICES IN THE DEPARTMENT AT THAT TIME.
AND AT THAT TIME, RISK MANAGEMENT.
UH, WE RECOMMENDED THAT RISK MANAGEMENT SHOULD AMEND THE RISK MANAGEMENT CLAIM PROCEDURE TO REFLECT THE CURRENT, UH, CLAIM PROCESSES.
UH, WE DID A WALKTHROUGH THEIR PROCESSES AND NOTED THAT THEIR HANDLING, UH, CLAIM HANDLING SOP IS ACCURATELY REFLECTIVE OF THEIR CURRENT PROCESSES.
WE GAVE THAT A STATUS OF FULLY IMPLEMENTED AND THE SECOND RECOMMENDATION WAS TO PERIODICALLY REVIEW THE RISK MANAGEMENT LIABILITY CLAIM PROCEDURE TO DETERMINE IF POLICY UPDATES ARE NECESSARY.
UH, WHENEVER WE WERE LOOKING AT THE POLICIES, WE NOTED THAT THERE WERE SEVERAL REVISIONS, UH, IN THE, IN THE PAST FEW YEARS, AS WELL AS, UH, A NOTED DATE ON THE POLICY OF WHEN TO REVIEW NEXT.
SO SHE'S GOT THAT, UM, TAKEN CARE OF AND UNDER CONTROL GAVE THAT A STATUS OF FULLY IMPLEMENTED.
AND LASTLY, CLAIM SUBMISSION OPTIONS.
UM, PREVIOUSLY THE CITY'S WEBSITE DID NOT HAVE AN ONLINE CLAIMS FILING OPTION WHERE THEY CAN UPLOAD THEIR CLAIMS ONLINE.
ALSO, UH, WE NOTED THAT THE CLAIM FORM WAS ONLY AVAILABLE IN ENGLISH EVEN THOUGH, UH, MORE THAN ONE THIRD OF THE CITY'S RESIDENCE, UH, SPEAK SPANISH.
AND ADDITIONALLY, I NOTED THAT THE CITY'S WEBSITE WAS CONFUSING ON HOW TO SUBMIT A CLAIM AND WAS MISSING CRITICAL INFORMATION, SUCH AS EXPLAINING HOW TO SEND THE CLAIM FORM TO THE CITY'S SECRETARY,
[02:45:01]
A LINK TO THE CITY'S SECRETARY, OR A LINK TO THE CLAIM FORM.WE RECOMMENDED THAT RISK MANAGEMENT SHOULD IMPLEMENT AN ONLINE CLAIM FORM COMPLETION AND SUBMISSION PROCESS ON THE CITY WEBSITE.
THEY OPENED UP AN ONLINE CLAIM SUBMISSION PORTAL, AND IT'S LOCATED ON THE CITY WEBSITE THAT GET A STATUS OF FULLY IMPLEMENTED.
THE NEXT UH, RECOMMENDATION WAS THAT RISK MANAGEMENT SHOULD CONSIDER CREATING THE CLAIM FORM IN OTHER LANGUAGES.
UH, WE NOTED THAT THEY HAVE A FILE, A NOTICE OF CLAIM SHEET THAT INCLUDES INSTRUCTIONS IN BOTH ENGLISH, SPANISH, AND VIETNAMESE, ALONG WITH THE QR CODE THAT DIRECTS THEM TO THE PORTAL THAT GOT A STATUS OF FULLY IMPLEMENTED.
AND LASTLY, WE RECOMMENDED THAT THEY UPDATE THE CITY WEBSITE TO MAKE IT EASIER TO DETERMINE HOW TO SUBMIT A CLAIM.
UM, SO, UH, WE NOTED THAT THE CITY WEBSITE HAS BEEN SIMPLIFIED AND HAS SUFFICIENT INFORMATION TO NAVIGATE TO THE CLAIM SUBMISSION PORTAL, AND THAT HAS THE STATUS OF FULLY IMPLEMENTED.
I KNOW
IT'S EXHAUSTIVE AND, UH,
WELL THE ONE THING THAT WAS CONSISTENT THROUGHOUT THIS ENTIRE PHASE OF, UH, PRESENTATION WAS THE NAME JULIE.
AND FOR THAT I THINK THAT, UH, YOU REALLY FEEL THAT, UH, YOU'VE BEEN VERY SUCCESSFUL SINCE COMING ON BOARD, UH, VERY IMPRESSED WITH THE WORK THAT YOU'VE DONE AND, UH, YOU'VE GOT A LOT OF WORK TO DO.
BUT, UH, JUST BASED ON YOUR HISTORY, IT'S BASED ON WHAT HAS HAPPENED THUS FAR.
IT'S OBVIOUS, I BELIEVE TO US THAT, UH, WE'RE IN GOOD HANDS.
AND FOR THAT WE WANT TO EXPRESS OUR COMPLIMENTS TO YOU.
YOU HAVE A FED HERE JUST TODAY.
SO IT WAS, UM, MY FIRST EXPERIENCE DOING AN AUDIT HERE.
SO IT WAS, YOU KNOW, THE, THE AUDIT TEAM MADE IT VERY, VERY, YOU KNOW, THE PROCESS.
SO I DEFINITELY APPRECIATE THAT.
UM, I KNEW THAT GOING INTO IT THAT WE WEREN'T GOING TO HAVE CERTAIN THINGS SATISFIED, SUCH AS PRODUCING REPORTS.
I COULD HAVE PRODUCED REPORTS TO CITY ADMINISTRATION, BUT IT WOULD NOT HAVE BEEN MEANINGFUL REPORTS.
AND SO I DIDN'T WANT TO WASTE ANYBODY'S TIME WITH JUST A CLAIM COUNT THAT DOESN'T PROVIDE ANY TYPE OF END ANALYSIS.
AND SO MY TEAM HAD BEEN TRYING TO DEVELOP A TEAM TO BE ABLE TO BACKFILL SOME OF THAT HISTORICAL DATA AND ALSO CAPTURE NEW DATA THAT'S ACTUALLY MEANINGFUL AND CAN HELP DRIVE CHANGE THROUGHOUT THE ORGANIZATION.
UM, WITH THE FOCUS ON BEING PROACTIVE WITH SERS, UM, AND USING DATA TO KIND TO, SO THAT IS THE, TO BE THE LARGEST GAP THAT IS IN, IN THIS REPORT HERE.
AND WILL BE IMPLEMENTING A, I GOT TO CALL IT ORIGAMI 2.0.
THAT'S A CLAIM SYSTEM THAT WE USE.
AND SO BASICALLY JUST KIND OF REVAMPING THE INFORMATION THAT WE'RE PUTTING IN, WE'RE GETTING IN GOOD DATA SO WE CAN SOME BETTER DATA OUT THERE, UM, AND BE HELPFUL TO THE DEPARTMENT.
UM, AND YOU KNOW, ONE OVERSIGHT THAT I HAD IN MY, WHEN I FIRST STARTED HERE WAS I GOT A CLAIMS RISK BOARD, UM, APPROVAL FOR A CLAIM THAT WAS OVER A HUNDRED THOUSAND DOLLARS, BUT COUNSELING, IT DIDN'T.
SO I MADE SURE THAT IN THE, SO THE THRESHOLDS ARE ACTUALLY STATED OUT AND THERE.
UM, BUT I'M EXCITED FOR THIS NEXT FISCAL YEAR TO, TO IMPROVE OUR PROCESSES AND, AND THE REPORTS THAT WE PRODUCE OUT AND WORK IN PARTNERSHIP DEPARTMENTS.
SO THEN WE'RE NOT SPENDING SO MUCH, SO MANY CLAIMS TO SPEND SO MUCH DOLLARS ON IT.
UH, ONE OF THE THINGS THAT, UH, I'M VERY CONSCIOUS OF, ESPECIALLY FROM THE RISK MANAGEMENT PROCESSING PROCEDURE PROCESSING SIDE, IS, YOU KNOW, QUITE OFTEN WE IMPLEMENT PROGRAMS THAT MAKE IT DIFFICULT FOR OUR PEOPLE, OUR CIVIL SEARCH TO BE ABLE TO FILE CLAIMS. AND, UH, OFTENTIMES OF COURSE WE KNOW IF WE DON'T HAVE TO PAY IT, WE DON'T WANT TO.
BUT I THINK THAT ONE OF THE THINGS THAT I'M SENSING AS WE GO FORWARD HERE IS THAT, YOU KNOW, WE WANT TO MAKE THE CLAIMS PROCESS, WE WANNA MAKE IT EASY FOR OUR PEOPLE.
IF WE, IF WE AS A CITY OR ANYWAY, IF WE'RE AT FAULT WITH SOMETHING, THEN WE SHOULD ADMIT THAT FAULT AND TAKE CARE OF IT.
SO WHEN WE ARE NOT AT FAULT, AND WE SHOULD FIGHT IT TO THE MAXIMUM EFFECT
SO I THINK THAT IT'S VERY IMPORTANT TO US, UH, THAT WE, UH, CREATE A PROCESS THAT MAKES IT SIMPLE, SIMPLIFIES IT FOR OUR CITIZENRY TO BE ABLE TO PROCESS THEIR CLAIMS. AND WHEN WE'RE WRONG, WE DEAL WITH THAT AND WE'RE RIGHT.
[02:50:01]
THAT.AND SO WE HAVE ACTUALLY PARTNERED WITH A THIRD PARTY ADMINISTRATOR WHO IS ACTUALLY, THEY'RE ACTUALLY AN INSURANCE CARRIER, BUT WE'RE SELF JUST ADMINISTERED CLAIMS FOR US.
BUT PART OF MY REASON FOR DOING THAT IS WE COULD HAVE A CLAIM THAT'S PROCESSED AND EVEN THOUGH WE CUT DOWN OUR CLAIMS PAYMENT TIME ENCLOSURE DATES, UM, IT'S, THEY'RE GOING TO INCREASE EVEN, OR IT'S GONNA REDUCE EVEN MORE BECAUSE OF OUR PARTNERSHIP.
THAT THIRD PARTY ADMINISTRATOR, IF WE SETTLE OR WE, UM, SETTLE A CLAIM ON A MONDAY, THEN A CHECK CAN GO OUT ON A MONDAY AND DOESN'T HAVE TO WAIT TILL A FRIDAY, UM, FOR THE CHECK, CHECK TO PROCESS.
SO THEY'RE PRINTING OUT CHECKS EVERY, UM, JUST FOR OUR CHECK RUNS TO OCCUR.
AND SO, UM, BUT INSURANCE COMPANIES ARE USED TO, TO ISSUING OUT CHECKS EVERY SINGLE DAY.
SO THAT WAS ONE IMPROVEMENT THAT WE'VE MADE AND TO HELP THAT CUSTOMER SERVICE PIECE THERE.
AND, UH, EVEN THOUGH YOUR DEPARTMENT IS CALLED RISK MANAGEMENT BUSINESS, WE'RE TRULY IN THE PEOPLE BUSINESS.
ONCE AGAIN, ZACH, YOU SAID ON TWO OF 'EM, NOW YOU, YOU'VE BEEN BUSY, HUH?
UH, ONCE AGAIN CHRISTIAN, THANK YOU FOR BEING HERE.
I KNOW IT'S FIVE 15, BUT APPRECIATE IT
AND, AND, AND JULIE WAS GREAT WORKING WITH HER, HONESTLY.
AND ZACH, YOU KNOW, HE DOES AMAZING ANALYTICS AND, AND WORK, UM, SO APPRECIATE HIM AS WELL.
AND I ALSO WANT TO THANK THE AUDIT COMMITTEE YES.
I STILL DON'T UNDERSTAND WHY WE, LIKE, WE DON'T CUT CHECKS ON THE SAME DAY.
SO I REALLY APPRECIATE IT AND THANKS FOR PHIL.
UH, HE ACTUALLY STEPPED IN, UH, ON, ON A LOT OF THESE AUDITS.
I SO APPRECIATE HIM DOING THAT, UM, SINCE IN SUCH A SHORT, SHORT TIMEFRAME.
AND I, I WANNA SAY TO ALL OF OUR STAFF THAT ARE HERE TODAY, YOU KNOW, 5 22 ON A, THIS IS TUESDAY, I THINK
BUT, UH, I'M VERY APPRECIATIVE THAT WE HAVE STAFF WHO ARE WILLING TO BE HERE TO TAKE CARE OF THE BUSINESS THAT NEEDS TO BE TAKEN CARE OF.
MATT HASN'T HAD A LOT TO HAVE TO SAY ABOUT ANYTHING, BUT HE'S BEEN HERE AND I'VE SEEN, I'VE SEEN HIM, UH, JUST WIPE HIS EYES A COUPLE OF TIMES.
BUT, UH, IT'S JUST GOOD TO, UH, TO KNOW THAT WE HAVE STAFF WHO ARE WILLING, CAPABLE AND ABLE OF, UH, BEING HERE TO HELP US TO PROCESS THE BUSINESS THAT NEEDS TO BE PROCESSED.
CHRISTIAN, SO GOOD TO SEE YOU HERE.
AND WITH THAT, UH, IF THERE ARE NO OTHER, UH, ACCOLADES, ANYONE ELSE NEEDS TO SAY SOMETHING, AT 5 23, WE ARE ADJOURNED.