December 13, 2023 Draft Minutes

MINUTES  
AUDIT COMMITTEE  
GLENDALE REGIONAL PUBLIC SAFETY 
TRAINING CENTER – CONF. ROOM 103 
11550 W. GLENDALE AVENUE  
GLENDALE, ARIZONA 85307  
December 13, 2023  
2:00 P.M.  
  
Councilmember Jamie Aldama, Chairperson 
Councilmember Ian Hugh, Member 
 Councilmember Raymond Malnar, Member  
Irene Avalos, Member  
VACANT, At-Large Member  
City Manager Kevin Phelps, Ex-officio Non-voting Member  
Budget and Finance Director Levi Gibson, Ex-officio Non-voting Member  
 
1.     CALL TO ORDER 
    Councilmember Aldama called the meeting to order at 2:03 p.m. 
   
2.     ROLL CALL  
    Present:  Councilmember Jamie Aldama, Chairperson 
                    Councilmember Ian Hugh, Member  
                    Councilmember Raymond Malnar, Member 
                    Irene Avalos, Member  
                         Kevin Phelps, City Manager, Ex-officio Non-voting Member 
                                     Budget & Finance Director, Levi Gibson, Ex-officio Non-voting Member 
 
     Absent:   Vacancy, At-Large Member 
                       
     Also present:  Mike Kingery, Independent Internal Audit Program Manager 
                                  James Gruber, Chief Deputy City Attorney 
                            Vicki Rios, Assistant City Manager  
                            Rick St. John, Deputy City Manager  
                            Ken Barnes, Assistant Fire Chief, Fire Services 
                            Tim Pirtle, Assistant Fire Chief, Fire Services 
                            Eric Keppler, Deputy Fire Chief, Fire Services 
                            Connie Schneider, Procurement Administrator, Budget & Finance 
                            Jeff Bratcher, Program Manager, Organizational Performance Office 
                            Christopher Goeman, Audit Manager, Heinfeld & Meech (guest) 
                            Angela Janda, Director, Moss Adams (guest) 
                            Chelsea Ritchie, Consulting 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 
September 7, 2023, meeting as written; Councilmember 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 2:04 p.m. 
Councilmember Hugh made the second.  Motion carried unanimously.  
 
6.     REVIEW OF NEW IIAP POLICY & PROCEDURES MANUAL (PPM)  
          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 3:06 p.m. 
Councilmember Hugh made the second.  Motion carried unanimously and Open 
Session was reconvened. 
          
 
8. 
CONSIDERATION/POSSIBLE VOTE ON EXECUTIVE SESSION 
ITEMS  
Councilmember Aldama announced that the committee would review and consider vote to 
approve the following two audit reports: Procurement and Fire Asset Management. 
Councilmember Malnar motioned to approve the audit reports.  Councilmember Hugh made the 
second. Motion carried unanimously. 
 
9. 
 UPDATE ON COMMITTEE GOALS 
 
For the first goal related to a quality assurance program and peer review, Mr. Kingery reminded 
the committee of our discussion at the September meeting regarding the new Global Internal 
Audit Standards (GIAS) promulgated by the Institute of Internal Auditors (IIA). The GIAS will be 
published next month, at which time Mr. Kingery will send them to the committee members.

Following an IIA webinar about the GIAS, he will then update the IIAP Policy and Procedures 
Manual as necessary. 
For the second goal related to follow-up on outstanding audit findings, Mr. Kingery explained his 
monitoring process.  On the spreadsheet shared with the committee, he adds new findings that 
were not yet due at the previous meeting and updates the status of others.  Once resolution of 
a finding is complete, it will be removed from subsequent spreadsheets.  For this meeting, there 
were four items completed that will no longer be listed.  Mr. Gibson asked if one of them was 
the finding related to p-card training; Mr. Kingery confirmed that as correct.  There was no 
further discussion on this agenda item. 
10. UPDATE ON FY23 AND FY24 AUDIT PLANS 
 
Mr. Kingery reviewed the status of the FY23 audit plan, noting that two are still in process and 
the remaining audits were complete.  The airport audit performed by IIAP is more of a contract 
compliance audit for its tenants/vendors than FAA compliance, as the FAA and ADOT regularly 
examine airport operations.  The Revitalization audit performed by Moss Adams has a draft 
report issued, but the department did not have sufficient time to provide management 
responses for this meeting; it will be presented at the March 2024 meeting. 
One other item from the FY23 audit plan was shifted to FY24.  This relates to build out of some 
payroll analytics with our contracted audit software vendor.  Mr. Kingery noted that just prior to 
today’s meeting, he received confirmation from IT that the implementation plan was approved 
and the vendor can get started.  Once built, the analytics will run for several months to collect 
data and see if they’re working as intended.  When sufficient data is available to analyze, the 
IIAP Manager will report the preliminary results to the committee. 
Mr. Kingery noted that IIAP has entered into a pilot project with another vendor for Accounts 
Payable (A/P) analytics.  Glendale will be part of a cohort with other cities across the country 
that utilize MUNIS, and the vendor already has two dozen or so analytics in place.  The vendor 
has our A/P data, and beginning next month, the cohort will meet regularly to discuss which 
analytics are most useful as well as recommend new analytics for the vendor to build. 
For the FY24 audit plan, Mr. Kingery explained that most of them were awarded to Moss 
Adams and the IT audit was awarded to Securance.  With the Moss Adams contract nearly 
complete, the hope is that work on several audits can begin next month.  He reminded the 
committee that at the September meeting it was recommended for two engagements on the 
FY24 audit plan – Landfill regulatory compliance and Parks & Recreation ADA compliance –
that those reviews should be performed by industry experts in lieu of internal audits.  
Mr. Kingery indicated that Field Ops is currently under contract for an assessment of ADA 
compliance at multiple facilities.  Field Ops offered the unspent portion of the contract to Parks 
and Recreation for them to use.  Parks and Recreation is in the process of scoping the review 
based upon the contract’s remaining balance.  For the landfill review, Mr. Kingery had further 
discussions with Field Ops.  They indicated that the landfill had just undergone their annual 
assessment performed by ADEQ, and sent the results to the IIAP Manager.  Field Ops “passed” 
the assessment; there were no findings reported by ADEQ.  Mr. Kingery told the committee that 
in light of these results, we could discuss if there are other aspects related to landfill operations 
the committee may wish to be reviewed. 
Mr. Kingery noted that for two other items on the FY24 audit plan (in both Water Services and 
Transportation), the City Attorney’s Office recommended that similar to the landfill and ADA 
assessments, outside reviews by industry regulatory experts may be more appropriate than 
internal audits.  For example, IIAP discussed potential scope with Water Services on various

regulations such as Safe Drinking Water rules.  However, there is a level of industry experience 
and expertise needed to adequately assess these that IIAP nor our contracted audit vendors 
possess.  In discussions with IIAP, Water Services mentioned some other potential areas for 
review that lend themselves more to performance auditing.  At this time, IIAP removed the two 
engagements from the Moss Adams contract until we can better define a scope for each; Mr. 
Kingery felt it was better to get the Moss Adams contract for the other audits approved so they 
can begin, and then we can do an addendum for the other engagements as needed. 
Mr. Aldama asked that if we table the Water Services audit for now, when does that come back 
to the committee for decision/action.  Mr. Kingery indicated that additional discussion with 
Water Services is needed, and that they are reviewed regularly by the same agencies and firms
that assess water operations throughout the Valley.  Mr. Kingery said he would provide an 
update at the March 2024 audit committee meeting. 
Ms. Avalos asked what in the risk assessment drove the decision to include this in the FY24 
audit plan.  Mr. Kingery replied that there was not a specific instance or concern that led to its 
inclusion.  Rather, it was the department knowing that they have regulatory risks inherent in
their industry.  Ms. Avalos then wondered if departments had since undergone regulatory audits 
and addressed any findings, how does that impact the audit plan from an audit committee 
standpoint.  Mr. Kingery said that as we shift more toward performance auditing, that allows for 
industry experts to perform their regulatory compliance assessments.  Then future audit plans 
would also shift more toward performance risk and process improvement versus compliance 
risk.  Likewise, the audit teams engaged would require more performance audit expertise than 
specific compliance expertise.   
Ms. Avalos recommended that for the March 2024 meeting, we can see if affected departments 
could possibly have other aspects of their operations reviewed that better lend themselves to 
performance-based reviews.  Mr. Kingery said he will discuss with departmental management 
teams and provide updates and/or potential performance audit scope(s) at the next meeting. 
There was no further discussion on this agenda item. 
  
11. DETERMINATION OF AUDIT COMMITTEE’S CHAIRPERSON 
 
Mr. Kingery indicated that we do not have to change the chairperson, but that the current 
appointment occurred at the December 2021 meeting, so two full calendar year of meetings 
have now been held with the current chair.  Mr. Kingery noted the only requirement is that one 
of the three councilmembers holds that title.  As Councilmember Hugh served as the chair prior 
to Councilmember Aldama, it was determined that Councilmember Malnar would be named the 
new chairperson.  There was no further discussion on this item. 
12. COMMITTEE COMMENTS AND SUGGESTIONS 
 
Mr. Aldama asked if there were any additional comments, suggestions, or questions from the 
committee.  Hearing none, this item was closed. 
 
13.   NEXT MEETING  
 
The next regularly scheduled meeting of the Audit Committee will be on Wednesday, March
13, 2024, at 2:00 p.m.  All committee members agreed on that date/time.

14. ADJOURNMENT  
 
With no further business, Councilmember Aldama adjourned the meeting at 3:22 p.m.  
 
The Audit Committee meeting minutes of December 13, 2023, were submitted and approved 
this 13th day of March, 2024. 
 
 
                           Michael Kingery 
                          Independent Internal Audit Program Manager