2017-112S:\Legal\Our Documents\Ordinances\17\Ordinance - FYI 7 Audit Plan, docx
ORDINANCE NO, 2017-112
WIN U U WGILTA NECA Iwo IN WA 1FAVA11§1 0] JOUWAOILAWN oil U1614ILTA191 104
WHEREAS, City Auditor Craig Hametner commenced his employment with the City of
Denton on February 27, 2017; and
WHEREAS, since that date, one of his primary goals has been to develop an audit plan for
FYI 7; and
WHEREAS, upon conclusion of developing his FY 17 Audit Plan, the City Auditor presented
it to City Council on March 28, 2017; and
WHEREAS, the City Council finds that this Ordinance is in the public interest; NOW,
THEREFORE,
SECTION 1. The recitals and findings contained in the preamble of this Ordinance are
incorporated into the body of this Ordinance.
SECTION 2. The City Council hereby approves the City Auditor's FY17 Audit Plan as
depicted in the memorandum attached hereto as Exhibit "A".
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the - 4-1 day of
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
W,
AP l'
AAI�
U IRIS WATTS,
musm,
2017.
ft „
IIMarch•
, 2017
Mayor 1
FROM: ' Hametner,Auditor
Basis for Plan
The basis for this first Internal/ plan o _
auditor . 1 and inquiries
Councilmembers and members of management based on
likelihood and impact to the organization.1#1 and
impact assigned risk factors based , certain ';. f'.
such as: complexity, materiality, concerns of Council and
management, past
Additionally, 1 . available resources t! complete audits
examined.were # / 1' to perform
plan are estimated hours. After considering hours that are
unavailable foaudits due to paid time off, administrative
duties,required - f training, meetings
and other time off, the net available hours for audits are
determined.
Combining vi l ours and audits yielded the audit
plan.
Administrative - !items
preparing for and attending meetings, budget reviews, In-
house and external training ! general managemen')
functions are ! at 175 hours.
includes. holidays ! other
available-! at 41
availableThis leaves 825 hours ! agreed-
upon procedures,and advisements.
Contract Administration Audit — Evaluate the process anif
tetermine if accountability is in place — 400 Hours
Agreed -Upon Procedures Engagements — Evaluate certain
contracts/bids/purchases, etc. - 150 Hours
Vendor Master File Audit — Determine if controls arii
designed properly and operating effectively - 200
Total Audit/Reviews/Agreed-Upon Procedures Hours
750 Hours
11YA'I
I k, 74 10 101. N U-1, 16110, 1
IN -WIMM
TOTAL AUDITS/REVIEWS/PROSPECTIVE
ANALYSIS/AGREED-U'PON
PROCEDURE S/INVESTIGATIONS/ADVISEMEN
RISK ASSESSMENT/ANNUAL AUDIT
PLAN/ANNUAL REPORTS = 825 HOURS