21-274FILE REFERENCE FORM
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Ordinance created by 20-1783
Amended by Ordinance 21-274
Date Initials
09/22/2020 KR
03/16/2021 1 KR
ORDINANCE NO. 21-274
AN ORDINANCE OF THE CITY OF DENTON AMENDING THE FY 2020-21 ANNUAL
INTERNAL AUDIT PLAN; AND PROVDUqG AN EFFECTrVE DATE.
WHEREAS, one of the City Auditor’s responsibilities is to create an Annual Audit Plan; and
WHEREAS, on September 22, 2020, the City Council considered the FY 2020-21 Annual
Audit Plan (the “Plan”) and approved the Plan on October 6, 2021 through Ordinance No. 20- 1783 ;
and
WHEREAS, on February 10, 2021, the Audit/Finance Committee considered amendments to
the Plan to respond to a request to delay an audit follow-up review, as presented by the City Auditor,
and gave direction regarding the amendments; and
WHEREAS, the City Council finds that the Plan as amended 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 Amended FY 2020-21
Annual Audit Plan as depicted in the memorandum attached hereto as Exhibits 'W’ and “B.” All
other provisions of Ordinance No. 20-1783 not in conflict or amended herewith, specifically
including the City Councilmember Audit and Analysis Request Policy, the shall remain in full
force and effect.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by'RLO \ tY\c'\ \ze__r and
seconded by -De_b A cm : n+c, r , the Ordinance was passed and approved by
the following vote L'L - a :
Aye Nay Abstain Absent
Gerard Hudspeth, Mayor:34
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a
V‘
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Birdia Johnson. District 1 :
Connie Baker. District 2:
Jesse Davis. District 3 :
John Ryan, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED this the 1 b day of rna-CU–. 2021.
GERARD F{UDSP A
ATTEST:
ROSA RIOS, CITY SECRETARY LOt II IjI////
pda/r) .
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
Digitally signed by Mack Reinwand
Date: 2021.03.05 15:14:52 -06'00'
Exhibit “A”
City of Denton
Internal Audit Department
FY 2020-21 Annual Internal Audit Plan – Amended
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: Procedures (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
Division of Police Property Room Follow-Up Reviews
Follow-Up
Review Ty1
Recommendation
le
3
4
mmml=-= a background check is performed on
all staff before they are assigned to the Property Room.
Annually verify that oMlthorized employee
the Property Room.
Establish a formal pojicy for checking out evidence items.
Consider requiring the Dispatch Unit te
Adjust policy to ensure that at least all high-risk inventor
reviewed annuall
Work with Technology Services to implement OCR capability of
,aserFische software to capture and manage evidence data to ensure the
9
Procedures integritY of data and imDrove controls over evidence.
Elimilate Property Technicians’ privilege to delete system records.
Establish a procedure to notify Property Room Unit superiors if an item
is found missin
Maintain an UP-ts
Require an independent witness to perform or oversee the veri
hjgh-risk items marked for destruction.
Mae
destruction
Necessary funding needs to be provided to the Police Department for
analyzing of old, untested sexual assault kits.
Tmrmanent solution is found, temporarily relocate all property and
evidence inventory items to the large empty warehouse behind the
Narcotics office to address the short-term, critical need.
Require the Property Room Unit to conduct comprehensive inventory
count during the move to account for every item in its inventory with an
increased focus on necessary disposals
Store security camera footage for at least three years and require periodic
review by someone independent of Property Room staff
Store all high-risk items, including those marked for destruction or
deposit, in locations with enhanced security measures.
Install an adequate ventilation system above all narcotics storage areas.
16
17
1
Post-Remodel
(TBD - Future
Audit Plan)
12
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