20-1783FILE REFERENCE FORM
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Ordinance created by 20‐1783 09/22/2020 KR
Amended by Ordinance 21‐274 03/16/2021 KR
ORDINANCE NO.20-1783
AN ORDINANCE OF THE CITY OF DENTON APPROVING THE FY 2020-21 ANNUAL
INTERNAL AUDIT PLAN; ADOPTrNG A COUNCILMEMBER AUDIT AND ANALYSIS
REQUEST POLICY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton Charter requires the City Auditor to perform auditing duties
assigned by the City Council; and
WHEREAS, the City Auditor presented the FY 2020-21 Annual Internal Audit Plan to City
Council on September 22, 2020 and received City Council’s direction; and
WHEREAS, the purpose of the FY 2020-21 Annual Internal Audit Plan is to outline the
auditing duties assigned by the City Council to the City Auditor to conduct during the fiscal year;
and
WHEREAS, the City Council desires to adopt procedures and parameters for City
Councilmember audit and analysis requests to ensure the most effective use of the Internal Audit
Department when responding to request from individual elected officials; and
WHEREAS, the City Council finds that this Ordinance is in the public interest; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
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 FY 2020-21 Annual
Internal Audit Plan as depicted in the memorandum attached hereto as Exhibit “A.”
SECTION 3. The City Council hereby approves the City Councilmember Audit and
Analysis Request Policy as described in the memorandum attached hereto as Exhibit “B.”
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
i: :o UHA : a n C e W a S : a 1: eb yo r d i n :i= W a S 1: S S e d a n d
Aye Nay Abstain
and seconded
approved by the
Absent
Chris Watts, Mayor:
Gerard Hudspeth, District 1 :
Keely G. Briggs, District 2:
Jesse Davis. District 3 :
John Ryan, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
7
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PASSED AND APPROVED this the bfb d,y .f Or,+o bec ' 2020.
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CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
Gerard Hudspeth, Mayor Pro Tem
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
./rJ z,'„~.'.„/BY:
Exhibit “A”
City of Denton
Internal Audit Department
Fy 2020-21 Annual Internal Audit Plan
Title Details
Water Production & Distribution Review the efficiency and effectiveness of the planning,
maintenance, and construction process of water
production and distribution infrastructure.
Building Permit Process Examine the efficiency and effectiveness of the building
permitting process including review, inspection, and
issuance .
Municipal Court Payments
Process
Review controls over the collection of municipal fines
and fees.
Payroll Administration Review controls over payroll costs including calculation
accuracy, timecard approvals, and system access.
Utility Payment Assistance
Program
Review the effectiveness of the City’s utility assistance
program including public outreach, vendor contract
compliance, and distribution effectiveness.
Emergency Medical Services Review efficiency and effectiveness of EMS operations.
Overflow Audit – Utility Meter
Reading
Examine controls over electric and water utility meter
reading processes including billing accuracy, data
reliability, and meter maintenance.
Overflow Audit – Health
Insurance Fund
Examine controls over health insurance claims and
associated contract compliance.
Risk Assessment Identify & evaluate all areas of the City based on
financial, safety, and reputational risk level.
Audit Follow-Up Reviews Provide information on what changes have been made in
response to the following issued audits:
Police Property Room (Jun. 2019);
Utility Street Cuts (Aug. 2019);
Roadway Quality Management (Oct. 2019);
Accounts Payable (Oct. 2019);
Police Overtime (Oct. 2019); and
COVID-19: Disaster Reimbursements (Jun.
2020)
•
•
•
•
•
•
Ad-Hoc Projects Fraud, waste, and abuse Investigations and Analysis
Requests from the City Council or City Management.
Exhibit “B”
City of Denton
Internal Audit Department
City Councilmember Audit and Analysis Request Policy
Occasionally, the City Auditor has received requests from City Councilmembers to perform
services outside of the established Annual Internal Audit Plan. These requests have generally
fallen into one of the categories described below: 1
1. Audit Requests – perform an evaluation of a City process in general.
2. Analysis Requests – provide advice on or verify how City processes were applied to a
specific situation.
The process in this Exhibit “B” outlines the procedures the Internal Audit Department and City
Council will follow for these City Councilmember requests:
1.A City Councilmember submits a request to the City Auditor via email.
2.The City Auditor reviews the request and determines if it is for an Audit Request or
Analysis Request. This determination is communicated to the requesting City
Councilmember, who may then determine if they wish to provide clarification, continue
the process, or retract the request.
3 If the request is for an Audit, the City Councilmember will be asked to present their request
to the rest of City Council in accordance with the “City Council Request for Information
Referred to a Work Session” provisions of the City Code of Ordinances Sec. 2-30(c). Prior
to the one-minute work session justification described in City Code of Ordinances Sec. 2-
30(c)(2), no research or preliminary work on the audit topic will be performed by the
Internal Audit Department. The City Council has three options in response to the Audit
Request:
If there is not a consensus of at least four City Councilmembers to perform the
audit, the process will stop and neither of the following options will be performed;2
If there is a consensus of at least four City Councilmembers, the Audit will be
scoped and presented as an option on the next year’s Audit Plan as directed by City
Council; or
C.The Audit will be scoped and presented to City Council within the next month to
be included on the current year’s Audit Plan as directed by City Council. This
would be further presented as an item for individual consideration and would
require an Audit Plan Ordinance amendment.
4.If the request is for Analysis, the Internal Audit Department may ask follow-up questions
and potentially set up a meeting with the City Councilmember to better understand the
request. The scope and initiation of each Analysis Request will be communicated to the
full City Council before work begins. Once the analysis has been performed, an Analysis
Report will be written and distributed to all members of the City Council. However, the
This memorandum is not intended to layout a process for requesting fraud, waste, and abuse investigations.
2 An Audit Request not gaining Council consensus of at least four City Councilmembers would not preclude the
topic from being presented as an option on future audit plans.
following process and parameters ensure that Analysis Requests do not unduly impact the
Audit Plan:
a.
b.
C.
d.
No requests to review a City Councilmember’s actions will be performed;
Only Analysis Requests that the City Auditor believes will take less than two days
of work will be performed;3
Each City Councilmember may have no more than two Analysis Requests
performed each year; and
If an Analysis Request does not meet these parameters, the City Councilmember
may present the request as part of the “City Council Request for Information
Referred to a Work Session” process described above in Sec. 3 to determine if the
City Council would like the Analysis Request to be performed.
In order to track and evaluate this process in the future, a log of received requests and their
outcomes will be maintained by the Internal Audit Department, allowing the process to be
evaluated each year.
3 it should be noted that Analysis Requests may take more than two days to issue.