Audit Committee

Audit Committee Meeting Agenda Thursday, December 12, 2019 4:30 – 5:30 pm City Hall, Room 301 A. Review and approval of meeting minutes - October 11 and November 8, 2019 B. Status of Audit Work Plan Activity  Public Utilities Department — Water Business Office  Central Services Department — Fleet Management Program  Sheriff’s Office — Inmate Medical Services  Animal Services Department — Animal Shelter C. FY21 Operating Budget D. 2020 Audit Work Plan  Proposed audits for 2019. E. Next Meeting Date – TBD Attachments: 1. December 12 - Meeting Agenda 2. October 11 - Minutes for review and approval 3. November 8 - Minutes for review and approval 4. December 2019 – Audit Status Report 5. Audit Topics Under Consideration for 2020 Note: The Audit Committee Meeting is open to the public; however, public comments are not received unless the Committee Chair requests that an individual provide information. O FFI CE O F O P ER A TI O N AL A N AL YSI S T H E U N I F I E D G O V E R N M E N T O F A T H E NS -C L A R K E C O U N T Y , G E O R G I A 300 College Avenue, Suite 202 • Athens, Georgia 30601 • (706) 613-3012 www. at h en sc lar k e c o unt y. c o m / 2 3 6 / O per at i on al - An al ys is - Of f i ce  AUDIT STATUS REPORT DATE: December 12, 2019 TO: Audit Committee FROM: Stephanie Maddox, Internal Auditor Office of Operational Analysis (formerly, the Auditor’s Office) SUBJECT: Status of Work Plan Activity The following table summarizes the current status of each audit according to audit stages. A description of the audit stages is below the table. WORK IN PROGRESS Status Completion Audit The percentage indicates the completion level Forecast Clarke County Sheriff’s Office – Pre-Audit Planning – 100% • Review of medical services December 2019 Inmate Medical Services Discovery Stage – 90% contract with Armor Medical. Contract Analysis – 60% Conclusions – 0% Recommendations – 0% Public Utilities Department – Pre-Audit Planning – 100 % • Exit Conference conducted December 2019 Water Business Office Discovery Stage – 100% with the department. Analysis – 100% Conclusions – 95% Recommendations – 95% Central Services Department – Pre-Audit Planning – 100% • Schedule final interview with January 2020 Fleet Management Program Discovery Stage – 95% Assistant Finance Director, Analysis – 90% TBD Conclusions – 85% Recommendations – 85% Animal Services Department – Pre-Audit Planning – 15% • Develop surveys February 2020 Animal Control Discovery Stage – 20% Analysis – 10% Conclusions – 0% Recommendations – 0% AUDIT STAGES Pre-Audit Planning: OOA staff conducts literature reviews, identifies benchmark communities, research best practices, develops pre-audit survey(s), and requests documents related to the audit client. OOA staff conducts pre-conference meeting with the audit client/department (Dept. Director); discuss the audit process, the timing of fieldwork, and answer any questions. Discovery: Interviews, information validation, observations and surveys. As this stage is critical to the preparation of a complete and meaningful audit, it consumes the majority of time involved. Analysis: Assigning meaning/value to the information; determining what it reveals related to the scope of the audit. Defines systems, processes and practices in terms of effectiveness and efficiency. Conclusions: Identifies and describes constraints and opportunities regarding developments and implementation of needed improvements. Recommendations: Suggests action that can be taken in consideration of the constraints and opportunities.  Proposed Audits for Calendar Year 2020 Department Audit Topic(s) Additional Information Proposed Audit Scope 1. Animal Services Department Newly established department placed under the Manager's Objective and Scope: Approved Office. The objective of the audit is to evaluate Animal Services operations as compared to best practices and to determine Areas of interest: whether they comply with applicable laws, regulations, 1. To better protect the health and safety of animals in the and policies. The audit will focus on animal kennel care, Athens-Clarke County Animal Shelter. shelter sanitization, policies and procedures, staffing, 2. Evaluate existing operating procedures; do employees training, drug inventory management, and the know how to access and use them. department’s automated information system. 3. Do staffing levels meet minimum national standards for providing care to shelter animals. Proposed scope 4. Review the existing animal database- are reports accessible • Analyze staffing levels needed to properly care for the 5. Role of nonprofit partners in funding assistance and animals within the shelter. adoption procedures. • Review shelter sanitization protocols to prevent the 6. Are staff properly trained to perform the duties of their spread of pathogens leading to disease. jobs. • Review the training practices established for length of time and skill development. • Review impound protocols for health issues. • Review certifications of staff to perform assigned duties within State regulations. • Review departmental euthanasia policies and practices. • Review budgetary allocations related to the annual operating budget for Animal Services. 2. Finance Department Purchasing Card (P-Card) Program Objective and Scope: Purchasing Division 1. High value transactions and high amounts per month • Assess Internal Controls and processes/procedures of the across multiple transactions P-card program. 2. Duplicate and split transactions • Are cardholders in compliance with the P-card policy 4. Late or missing cardholder or manager approvals • Evaluate P-card reconciliation process 5. Keyword search could reveal personal transactions or other • Conduct financial transaction analysis to determine if violations unauthorized purchases are approved 6. Maximum spending limit/day (per transaction) • Is consistent documentation submitted by P-card users 7. Are itemized receipts reviewed • Determine if internal control weaknesses exist 8. In FY19 the Purchasing Division issued 323 P-cards 3. SPLOST Program Areas of interest: Objective and Scope: One SPLOST program. For example, SPLOST 2011. 1. Administrative Oversight 2. Project Savings 3. Local Contractor support 4. Citizen input and user group viability (are impacted citizens properly included in final project design process?) Do the details of the final project design match the original intent of the project as presented to the original citizen committee? 4. Grant Mgmt. Program Common findings Objective and Scope: • Untimely report submissions • Evaluate performance oversight and program outcomes Administration, Compliance and • Lack of documentation • Evaluate grant process (programmatic, budgeting, Oversight • Inadequate monitoring of subrecipients accounting, etc.) • Inadequate time/effort reports • Are grant resources utilized in accordance with the • Commingling of funds contract • Excess cash on hand • Determine if training is needed • Unallowable costs • Inappropriate changes • Conflicts of interest 5. Board of Elections Risks unique to the elections process Objective and Scope: 1. Segregation of Duties • Determine whether BOE has the controls in place to 2. Document Management ensure an accurate, fair, and efficient election 3. Policies and Procedures • To assess the effectiveness of BOE's efforts to comply 4. Reduced Confidence with reporting and disclosure requirements 5. Voter Registration Systems • Determine if the BOE has administrative rules, policies 6. Transmission based risks - Poll books and procedures in place • Assess the effectiveness of BOE's efforts to comply with reporting and disclosure requirements 12/11/2019