3. Fiscal Year 2020-21 Third Quarter ReportInternal Audit Department
Accountability Transparency Integrity Quality
215 E. McKinney St., Denton, TX 76201 (940) 349-7228
MEMORANDUM
DATE: August 27, 2021
TO: Honorable Mayor and Members of the City Council
FROM: Madison Rorschach, City Auditor
SUBJECT: Fiscal Year 2020-21 Third Quarter Report
FY20-21 Annual Audit Plan Status
Audit Project Status – The Internal Audit Department is responsible for
conducting audits to assess a variety of risks including internal control
weaknesses, inefficiencies in City operations, ineffectiveness of City programs,
and noncompliance with laws, regulations, and policies. Each year, an annual
audit plan is approved by the City Council to establish the workload of the
Internal Audit Department. The following table summarizes the status of each
audit project included on the FY20-21 Annual Audit Plan at the end of the third
quarter.
Table 1: FY20-21 Audit Project Status As of 06/30/21
Audit Project Status Months
Budgeted
Month
Actuals1
Health Insurance Operations Closed 1.00 1.00
Meter Reading & Billing: Electric & Water Utilities Closed 2.00 3.00
Utility Payment Assistance Program Closed 2.00 3.25
Municipal Court Payments Process Closed 2.00 3.00
Building Permit Processes Fieldwork 3.00 4.00
Water System Operations: Rate Structure Closed
4.00 TBD Water System Operations: Distribution Mgmt. Response
Water System Operations: Production Fieldwork
Emergency Medical Services: Billing & Collections Planning 4.00 TBD
Payroll Administration Planning 2.00 TBD
Utility Street Cuts Complete 1.00 0.50
COVID-19 Response: Disaster Reimbursements Complete 1.00 0.25
Accounts Payable Complete 1.00 1.00
Roadway Quality Management Not Started 1.00 NA
Police Overtime Not Started 1.00 NA
Police Property Room: Procedures Not Started 1.00 NA
Risk Assessment Planning 2.00 NA
1 Month actuals reflect the number of months it took to complete fieldwork on the project. This is
calculated from the date the project was initiated to the date first draft report was distributed to
management.
P a g e | 2
Post-Audit Feedback Survey Results – Based on the three audit project reports
issued during the third quarter of fiscal year 2020-21, the Internal Audit
Department’s services were rated 4.25 out of five stars by auditee department’s
staff with a 33 percent response rate.
Ad-Hoc Project Updates – The Internal Audit Department completed the
following Consultation projects during the second quarter of fiscal year 2020-21:
➢ Five Advice requests from various City departments including, Community
Services, Finance, Development Services, and Technology Services; and
➢ One Data Assistance request from the Water Department.
Emergency Medical Services Audit Scope – Planning work for the Emergency
Medical Services audit project began during June 2021. Based on discussions
with Fire Department staff, Internal Audit has scoped the project to focus on the
billing and collections process for emergency medical services provided by the
City of Denton.
Additional Items of Note
Winter Storm Uri After Action Item Reporting – On May 3, 2021, the City
Manager’s Office presented an overview of the City’s 2021 Winter Weather
Action Plan, which was developed in response to Winter Storm Uri. As part of this
action plan, the Internal Audit Department is partnering with the City Manager’s
Office to issue quarterly reports on the progress of this plan. The first quarterly
report is scheduled to be released in August 2021.
Internal Audit Supplemental Style Guide – In May 2021, an Internal Audit
supplemental style guide was distributed to audit staff and discussed with Public
Affairs Department staff. This style guide is used to guide audit staff in producing
written, external deliverables including project reports, memorandums, etc. and
is intended to promote consistency between audit deliverables and better align
with accessibility guidelines put forward by a11y-101. The style guide is updated
frequently and so has not been attached to this report.
Avg. Q3 Internal Audit Service Rating: