DRAFT minutes of 9-8-21 meeting

D R A F T
MINUTES
AUDIT COMMITTEE
CITY HALL, CONFERENCE ROOM B3 
5850 W. GLENDALE AVE.
GLENDALE, ARIZONA 85301
SEPTEMBER 8, 2021
2:00 P.M.
 
  
1.
CALL TO ORDER
The Chair, Vice Mayor and Councilmember Hugh, called the meeting to order at
2:04 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
                   
Absent:
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
Jean Moreno, Director, Community Services
James Brown, Director, Human Resources & Risk Management
James Gruber, Chief Deputy City Attorney
Christopher Briggs, Police Chief
Colby Brandt, Assistant Police Chief
Raymond (Rich) Levander, Assistant Police Chief
Levi Gibson, Assistant Director, Budget & Finance
Mark Steranka, Partner In Charge, Moss Adams (Guest)
Halie Garcia, Director, Moss Adams (Guest)
Tammy Lohr, Manager, Moss Adams (Guest)

Annie Rose Favreau, Manager, Moss Adams (Guest)
 
3.
CITIZEN COMMENTS
No members of the public were present.  No comments.
 
4.
APPROVAL OF THE MINUTES
Audit Committee Minutes of June 3, 2021.
Councilmember Aldama motioned to approve the
Audit Committee Minutes of the June 3, 2021 meeting as written.  Mr. Phelps
made the second.  Motion carried unanimously.
 
5.
MOTION TO CALL FOR AND ENTER INTO EXECUTIVE SESSION
Councilmember Aldama motioned to enter into Executive Session at 2:05 p.m.
Mr. Phelps 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 Aldama motioned to adjourn Executive Session and reconvene
in Open Session at 2:39 p.m.  Mr. Phelps made the second 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 four audit reports: Position Control Evaluation, Police
Staffing Review; Community Action Program; and, Annual Payroll/Timesheets
Audit.  Councilmember Aldama motioned to approve the above four audit
reports.  Mr. Simmons made the second. Motion carried unanimously.
 
 
9.
FY2021-22 AUDITOR'S ANNUAL INDEPENDENCE STATEMENT
Mr. Kingery explained the requirement, verbally affirmed his independence, and
shared the completed, written form with the committee.  There were no
questions asked.
 
10.
GOAL SETTING AND TOPICS FOR DISCUSSION
Mr. Kingery reviewed the proposed goals from the prior fiscal year that were
presented by the previous IIAP Manager.  The goals are: 1) developing a work
plan for implementation of an 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 (pushed back from June 30, 2021 as originally
presented last year).  Mr. Kingery stated that updates to the status of both goals
will be provided at the next Audit Committee meeting. 
 
Councilmember Aldama asked a question regarding the age of outstanding
findings and the quantity of audits planned/completed. 
 
Mr. Kingery explained how the old findings may not have been addressed yet for
a variety of reasons (system or process may no longer be in use, departmental
turnover, structure or process may have changed, etc.) but that IIAP is working
with appropriate departments and we are making good progress in clearing
them. 
 
Councilmember Aldama also asked about the concept of quantity of audits vs.
quality, and if there was a certain quantity target. 
 
Mr. Kingery explained that it is more important that we focus on quality of audits
based on the areas identified as higher risk and that have greater impact to
citizens and staff.  He explained that utilizing Moss Adams has helped the City
to audit some of the bigger areas more effectively than a one person audit shop
could because of greater resources available to them.  Mr. Kingery went on to
say that IIAP will work with Budget & Finance on a supplementary budget
request to ensure that all contracted audits on the FY22 audit plan can be
addressed. 
 
While not specific to a goal, Ms. Avalos asked if the IIAP audit reports could
include more background information in each to provide a better picture of the
area/process under review – a feature she appreciates in the Moss Adams audit
reports. 
 
Mr. Kingery said a more robust background section would be added to future
IIAP audit reports. 
 
Mr. Simmons mentioned that with respect to the outstanding findings, he
wondered if unresolved items could indicate that maybe the findings were
incorrect or missed the target, and that nearly all findings should be able to be
cleared within a year. 
 
With no further questions or comments, Chairman Hugh asked for a motion to
accept the goals for the year.  Councilmember Malnar motioned to accept the
goals.  Councilmember Aldama made the second. Motion carried unanimously.
 
11.
UPDATE TO FY21 AND FY22 AUDIT PLANS
Mr. Kingery explained that with the four completed audits presented today, only
two audits remaining from the FY21 audit plan are still in progress.  The
Overtime Use and Compliance audit, along with the Public Records Law
Compliance audit, are both expected to be finalized by Moss Adams by the end
of September and will be presented at the next Audit Committee meeting in
December. For the FY22 audit plan, the first two audits (Housing Management
and Maintenance, Intelligent Transportation System) will be performed by Moss

Adams and are scheduled to begin in late September to early November.  Of
the other six audits assigned to external resources, the IT Security audit will be
performed by another approved, qualified vendor (Securance LLC) and will
begin in late October or early November.  The remaining five (Risk Management
training program evaluation, Engineering – Capital Improvement Program,
Budget & Finance – Contract Compliance and Performance, City Transit
Program, and Fleet Management Program) will be performed by Moss Adams
with start dates staggered across FY22.  The other six audits on the FY22 audit
plan (Arizona Sports and Tourism Authority Contract Compliance, Cash
Management, Purchasing Cards, Payroll Process, Telecommuting Policy and
Compliance, and Park Ranger Program evaluation) are assigned to the IIAP. 
Due to current staffing levels, the Park Ranger Program is not currently in full
operation.  This audit will be placed back into the risk assessment population for
consideration in the FY2022-23 audit plan.  There were no further questions.
 
12.
COMMITTEE COMMENTS AND SUGGESTIONS
Councilmember Malnar said he was pleased with the direction and the work
performed by Moss Adams and asked about overall feedback to the contracted
audits. 
 
Mr. Phelps stated that feedback has been very positive, the auditors are well
organized and ask good questions, and respectful of the time it takes to gather
the data.  
 
Councilmember Malnar agreed and wanted it noted in the minutes that the City’s
new audit approach is making good progress with quality results. 
 
Mr. Kingery added that surveys will be issued to the auditees upon completion
of all contracted audits and that their feedback is most appreciated.  There were
no other comments or suggestions.
 
13.
NEXT MEETING
The next regular meeting of the Audit Committee will be held on Thursday,
December 2, 2021, at 2:00 p.m., at the Glendale City Hall 5850 W. Glendale
Ave, Glendale, Arizona, 85301.  All committee members agreed on that
date/time.
 
14.
ADJOURNMENT
Chairman Hugh adjourned the meeting at 3:00 p.m.  No objection was made.
 
 
The Audit Committee meeting minutes of September 8, 2021 were
submitted and approved this ____ day of ____, 2021.
____________________________________
Michael Kingery 
Independent Internal Audit Program Manager