December 7, 2021 - Draft Minutes

MINUTES
AUDIT COMMITTEE
GLENDALE MUNCIPAL COMPLEX
COUNCIL CHAMBERS – ROOM B3
5850 W. GLENDALE, 
ARIZONA 85301
December 7, 2021
3:00 P.M.
Vice Mayor Ian Hugh, Member
Councilmember Jamie Aldama, Member
Councilmember Raymond Malnar, 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
    Vice Mayor/Councilmember Hugh (Chairperson), called the meeting to order at 3:02 p.m.
2.    ROLL CALL
    Present:  Vice Mayor and Councilmember Ian Hugh, Member
                    Councilmember Jamie Aldama, Member
                    Councilmember Raymond Malnar, Member
                    Irene Avalos, Member
                                     Rusty Simmons, Member
                    City Manager Kevin Phelps, Ex-officio Non-voting Member
                    Budget & Finance Director, Lisette Camacho, Ex-officio Non-voting Member
     Also present:  Khala Stanfield, Department of Organizational Performance Director
                            Mike Kingery, Independent Internal Audit Program Manager
                                 James Gruber, Chief Deputy City Attorney
                            James Brown, Director, Human Resources & Risk Management
                            Julie Bower, City Clerk
                            Sheryl Rabin, Deputy City Clerk, City Clerk’s Office
                            Kristen Benavidez, Records Program Manager, City Clerk’s Office
                            Chelsea Ritchie, Consulting Manager, Moss Adams (Guest)

3.    CITIZEN COMMENTS
No members of the public were present.  No comments.
4.    APPROVAL OF THE MINUTES
Councilmember Aldama motioned to approve the Audit Committee Minutes of the September 
8, 2021 meeting as written.  Councilmember Malnar 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 3:03 p.m. Councilmember 
Aldama 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 Malnar motioned to adjourn Executive Session at 3:28 p.m. Councilmember 
Aldama made the second.  Motion carried unanimously and Open Session was reconvened.
            
8.
CONSIDERATION AND POSSIBLE VOTE ON EXECUTIVE SESSION ITEMS
             Chair Hugh announced that the committee would review and consider vote to approve the 
following two audit reports: Public Records Law Compliance; Overtime Use and Compliance Audit.  
Chair Hugh motioned to approve both audit reports.  Councilmember Malnar made the second. Motion 
carried unanimously.
9.
DETERMINATION OF AUDIT COMMITTEE’S CHAIRPERSON
    Chair Hugh motioned to appoint Councilmember Aldama as the new Chairperson.  
Councilmember Malnar made the second.  Motion carried unanimously.

10.
STATUS UPDATE OF AUDIT COMMITTEE GOALS
Mr. Kingery reviewed the goals that were approved by the Audit Committee during the September 
8, 2021 meeting.  The goals are: 1) developing a work plan for implementation of an Independent 
Internal Audit Program (IIAP) quality assurance and improvement program in preparation for a 
peer review in FY24, and 2) monitoring remediation of outstanding recommendations from prior 
audits to ensure they are fully implemented by June 30, 2022.  Mr. Kingery stated that preliminary 
research for a peer review has begun, and that some information from the Association of Local 
Government Auditors was received this morning, but he had not yet had a chance to review it.  
For the second goal, Mr. Kingery noted that the number of findings still outstanding had gone from 
the original count of 80+ to approximately 40 at the last meeting, and now to 23 as of today.  
Nearly half of the remaining findings are from one audit, and the HR and IT departments are 
working together to consolidate policies to address them; the other outstanding findings are being 
researched and responded to by the corresponding auditee departments.  Updates to the status of 
both goals will be provided at the next Audit Committee meeting.  There was no further discussion 
on this agenda item.
11.
UPDATE TO FY21 AND FY22 AUDIT PLANS
Mr. Kingery explained that with the two completed audits presented by Moss Adams today, the 
FY21 audit plan has now been completed.  For the FY22 audit plan, the first two audits performed 
by the IIAP (Arizona Sports and Tourism Authority (AZSTA) Contract Compliance, and Purchasing 
Cards) are underway, with both being in the preliminary research and planning stage. The status of 
the other IIAP audits (Cash Management, Payroll Process, Telecommuting Policy and Compliance, 
and Park Ranger Program evaluation) remain as scheduled and discussed at the September 8, 
2021 meeting.
Councilmember Aldama asked how recently both the Purchasing Card and the Cash Management 
audits had been completed.  Mr. Kingery stated that the Cash Management audit was completed 
as part of the FY21 audit plan.  Being unsure of when the Purchasing Card audit last occurred, Mr. 
Kingery said he would need to research that and follow-up with the answer.  Councilmember 
Aldama indicated he would like to know the status of any unresolved findings as part of these 
audits for FY22.  Mr. Kingery stated that both of these audits, along with the Payroll Process audit, 
would be more of a full-scope engagement this year (including status of prior findings resolution), 
with an eye towards continuous monitoring through IIAP’s audit software Robotic Process 
Automation (RPA) functionality moving forward.  There were no further questions or discussion 
related to the IIAP audit plan portion.
Mr. Kingery addressed the contracted audits portion of the FY22 audit plan.  Moss Adams currently 
has two audits underway (Risk Management training program evaluation, and Intelligent 
Transportation System).  A third audit is currently underway (IT Security audit) and being done by 
another approved, qualified vendor, Securance LLC.  Of the remaining five to be performed by 
Moss Adams, two (Housing Management and Maintenance, Budget & Finance – Contract 
Compliance and Performance) are awaiting key vacant positions in those areas to be filled very 
soon prior to beginning the engagement.  The last three (Engineering – Capital Improvement 
Program, City Transit Program, and Fleet Management Program) remain as scheduled and 
discussed at the September 8, 2021 meeting. There were no further questions.

12.
COMMITTEE COMMENTS AND SUGGESTIONS
      Councilmember Aldama thanked everyone for their support in being appointed as the new Audit 
Committee Chairperson.  There were no other comments or suggestions.
13.
NEXT MEETING
             The next regularly scheduled meeting of the Audit Committee will be on Thursday, March 3, 
2022, at 2:00 p.m. All committee members agreed on that date/time.
14.
ADJOURNMENT
         Chairman Hugh adjourned the meeting at 3:37 p.m.  No objection was made.
The Audit Committee meeting minutes of December 7, 2021 were submitted and approved this _____
day of March, 2022.
                            Michael Kingery
                          Independent Internal Audit Program Manager