21-183321-1833
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON APPROVING THE FISCAL YEAR 2021-22
ANNUAL INTERNAL AUDIT PLAN; 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 Fiscal Year 2021-22 Annual Internal Audit Plan
to City Council on October 6, 2021 and received City Council's direction; and
WHEREAS, the purpose of the Fiscal Year 2021-22 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 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 Fiscal Year 2021-22
Annual Internal Audit Plan as depicted in the memorandum attached hereto as Exhibit "A" and
Exhibit "B."
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by 1 �! % -Z, and seconded
by C %0.(\ the Ordinance was passed and approved by the
following vote L -I_
Aye Nay Abstain Absent
Gerard Hudspeth, Mayor: I/, -
Vicki Byrd, District 1: 1/�_
Brian Beck, District 2: hz:�
Jesse Davis, District 3: %/
Alison Maguire, District 4: V—
Deb Arm intor, At Large Place 5: 41,
Paul Meltzer, At Large Place 6: J
PASSED AND APPROVED this the day of QC+C)bp,< , 2021.
��--
GERARD HUDSPETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
O .
*%
BY: i
1 •••.
Q.• CID
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by
Mack Reinwand
(�- Date: 2021.10.06
BY: - 17:45:00 -05'00'
Exhibit G°A"
City of Denton
Internal Audit Department
Fiscal Year 2021-22 Annual Internal Audit Plan
Audit Project
Details
Denton Municipal Electric
Review energy management control activities to ensure
Energy Management Office
they are operating effectively and efficiently.
Administration
Technology Services Series
Review the efficiency and effectiveness of the
Technology Services Department's operations, including
but not limited to preventing and responding to cyber
security threats.
Police Body -Worn Camera Usage
Review body -worn camera usage to provide assurance
that these tools are used in accordance with the Police
Department's general orders and best practices.
Wastewater Operations
Review efficiency and effectiveness of the planning,
maintenance, and construction processes of wastewater
collection and reclamation infrastructure.
Warehouse Operations
Review control activities to ensure that warehouse
inventory is adequately maintained and tracked in order
to safeguard City assets and ensure assets can be
effectively utilized by departments.
Overflow Audit — Emergency
Review effectiveness of emergency medical services
Services: Billing & Collections
billing and collections operations.
Police Property Room Inventory
Provide routine assurance that Police property room
inventory controls are functioning.
Audit Follow -Up Reviews
Provide information on what changes have been mads in
response to the following issued audits:
• Overflow — Police Property Room: Procedures
(Jun. 2019);
Overflow — Roadway Quality Management (Oct.
2019);
* Overflow — Police Overtime (Oct. 2019);
Procurement Process (Aug. 2019);
• Economic Development: Recruitment &
Expansion (Jan. 2020);
* Capital Projects Administration: Property
Acquisition (May 2020);
• Facilities Maintenance (Jun. 2020);
• Grants Management (Jun. 2020); and
Utility Payment Assistance Program (Apr. 2021).
Ad-Hoc Pro}ncts Carry out fraud, waste, and abuse Investigations and
Analysis Requests from the City Council or City
Management as needed.
Exhibit "B"
City of Denton
Internal Audit Department
Division of Police Property Room Follow -Up Reviews
Follow -Up
Recommendation
Review Type
3 Revise the General Order to ensure a background check is performed on
all staff before they are assigned to the Property Room.
4 Annually verify that only authorized employees have electronic access to
the Property Room.
5 Establish a formal policy for checking out evidence items.
7 Consider re ing the Dispatch Unit to monitor Pro2eqx Room cameras_
8 Adjust policy to ensure that at least all high-risk inventory items are
reviewed annually.
9 Work with Technology Services to implement OCR capability of
LaserFische software to capture and manage evidence data to ensure the
Procedures
integrity of data and improve controls over evidence.
10 Eliminate Property Technicians' privilege to deletes stem records.
11 Establish a procedure to notify Property Room Unit superiors if an item
is found missing.
14 Maintain an up-to-date count of currency stored in the Property Room.
15 Require an independent witness to perform or oversee the verification for
high-risk items marked for destruction.
16 Maintain an independent record of high-risk items marked for
destruction.
17 Necessary funding needs to be provided to the Police Department for
analyzing of old, untested sexual assault kits.
1 Until permanent 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.
2 Require the Property Room Unit to conduct comprehensive inventory
Post -Remodel
count during the move to account for every item in its inventory with an
(TBD - Future
increased focus on necessary disposals
6 Store security camera footage for at least three years and require periodic
Audit Plan)
review by someone independent of Property Room staff.
12 Store all high-risk items, including those marked for destruction or
deposit, in locations with enhanced security measures.
13 Install an adequate ventilations stem above all narcotics stora a areas.