6-3-21 Audit Committee Minutes
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AGENDA
AUDIT COMMITTEE
GLENDALE CITY HALL
HR TRAINING ROOM
5850 W. GLENDALE,
ARIZONA 85301
June 3, 2021
2:00 P.M.
Vice Mayor Ian Hugh, Member
Councilmember Raymond Malnar, Member
Councilmember Lauren Tolmachoff, Member
Irene Avalos, Member
Rusty Simmons, Member
City Manager Kevin Phelps, Ex-officio Non-voting Member
Budget and Finance Director Lisette Camacho, Ex-officio Non-voting Member
1. CALL TO ORDER
The Chair, Vice Mayor and Councilmember Hugh, called the meeting to order at 2:05 p.m.
2. ROLL CALL
Present: Vice Mayor and Councilmember Ian Hugh, Member
Councilmember Raymond Malnar, Member
Councilmember Lauren Tolmachoff, Member
Irene Avalos, Member
City Manager Kevin Phelps, Ex-officio Non-voting Member
Budget and Finance Director, Lisette Camacho, Ex-officio Non-voting Member
Absent: Rusty Simmons, Member
Also present: Khala Stanfield, Department of Organizational Performance Director
Mike Kingery, Independent Internal Audit Program Manager
Vicki Rios, Assistant City Manager
James Gruber, Chief Deputy City Attorney
Feroz Merchhiya, Chief Information Officer
Arlene Chemello, Deputy Chief Information Officer
Christian Polintan, Administrator – Information Technology
Terry Garrison, Fire Chief
Gary Benson, Assistant Fire Chief
Cory Johnson, Acting Fire Captain
Lis Cortes, Supervisor – Fire Administration
Mark Steranka, Partner In Charge, Moss Adams (Guest)
Halie Garcia, Consulting Senior Manager, Moss Adams (Guest)
Chris Wetzel, Senior Manager, Moss Adams (Guest)
3. CITIZEN COMMENTS
No members of the public were present. No comments.
4. APPROVAL OF THE MINUTES
Councilmember Malnar motioned to approve the Audit Committee Minutes of the March 4,
2021 meeting as written. Chairman Hugh made the second. Motion carried unanimously.
5. MOTION TO CALL FOR AND ENTER INTO EXECUTIVE SESSION
Councilmember Malnar motioned to enter into Executive Session at 2:06 p.m. Ms. Avalos
made the second. Motion carried unanimously.
6. EXECUTIVE SESSION
Review and discuss draft audit reports pursuant to Glendale City Code
§2-54b and §2-58c (A.R.S. §38-431.03 (A)(2)). Session was held.
7.
MOTION TO ADJOURN EXECUTIVE SESSION AND RECONVENE IN OPEN
SESSION
Councilmember Tolmachoff motioned to adjourn Executive Session and reconvene in Open
Session at 2:39 p.m. Councilmember Malnar made the second and Open Session was reconvened.
8.
CONSIDERATION AND POSSIBLE VOTE ON EXECUTIVE SESSION ITEMS
Chairman Hugh announced that the committee would table the Annual Payroll/Timesheets Audit
until the September meeting because it was mistakenly included on the published agenda for this
meeting. Chair Hugh announced that the committee would review and consider vote to approve the
following three audit reports: Telestaff Business Process and Internal Control Review; Information
Systems Security; and, Technology Governance Program Evaluation. Ms. Avalos motioned to approve
the above three audit reports. Councilmember Malnar made the second. Motion carried unanimously.
9.
FY2020-21 AUDIT PLAN
Ms. Stanfield gave a presentation on current status of the FY2020-21 Audit Plan. The first six
audits are complete and have been presented to City Council as a result of prior Audit Committee
meetings. The three audits approved in today’s Executive Session will be presented to Council on
June 22, 2021. The remaining six audits will be presented in the next Audit Committee meeting
scheduled for September 2, 2021. Ms. Avalos asked if the updated Audit Plan was included in the
packet for the meeting. Ms. Stanfield said it was included, but that a separate copy would be
emailed to her after this meeting adjourned. There were no further questions asked.
10.
PROPOSED FY2021-22 AUDIT PLAN
Ms. Stanfield reviewed the risk assessment process and results, along with the proposed
FY2021-22 audit plan. From the risk assessment, 22 potential audits were identified. Of those 22,
14 were selected for completion in FY2021-22. Out of the 14 selected, eight (Housing
Management and Maintenance, Intelligent Transportation Systems, Risk Management training
program evaluation, Engineering – Capital Improvement Program, Budget & Finance – Contract
Compliance and Performance, IT Security, City Transit Program, and Fleet Management Program)
will be assigned to the approved external vendor(s), and six (Arizona Sports and Tourism Authority
Contract, Cash Management, Purchasing Cards, Payroll Process, Telecommuting Policy and
Compliance, and Park Ranger Program evaluation) are assigned to the IIAP. The remaining eight
potential audits from the original pool of 22 will be placed back into the risk assessment population
for consideration in the FY2022-23 audit plan. Chairman Hugh asked for approval of the FY2021-
22 audit plan. Councilmember Tolmachoff motioned to approve the audit plan. Ms. Avalos made
the second. Motion carried unanimously.
11.
PROCUREMENT OF THIRD-PARTY FIRM
Ms. Stanfield recommended that of the eight FY2021-22 audits assigned to the approved
external vendor(s), the first two (Housing Management and Maintenance, Intelligent Transportation
System) should be contracted with Moss Adams so that audits can begin early in the fiscal year.
For the remaining six assigned to external resources, the IIAP Manager will meet with the
respective departments to assess and clarify scope. Subsequently, those six audits will go to “bid”
by the approved external vendors (Securance LLC, Protiviti, Inc., Moss Adams, Henry & Horne,
Heinfeld Meech). Following review of the quotes/bids, the IIAP Manager will recommend
assignment of each audit for consideration at the September Audit Committee meeting. There
were no further questions.
12.
COMMITTEE COMMENTS AND SUGGESTIONS
Ms. Avalos asked to ensure for future meetings that all documents are distributed at least one
full week prior to the scheduled meeting date. There were no other comments or suggestions.
13.
NEXT MEETING
The next regularly scheduled meeting of the Audit Committee will be on Thursday,
September 2, 2021, at 2:00 p.m. All committee members agreed on that date/time.
14.
ADJOURNMENT
Chairman Hugh adjourned the meeting at 2:52 p.m. No objection was made.
The Audit Committee meeting minutes of June 3, 2021 were submitted and approved
this _____ day of ____________, 2021.
Michael Kingery
Independent Internal Audit Program Manager