HomeMy WebLinkAbout(0003) Proposed FY2022 Annual Audit Plan.pdfFORT WORTH
LZ
CITY OF FORT WORTH
DEPARTMENT OF INTERNAL AUDIT
Proposed FY2022 Annual Audit Plan
Purpose
The purpose of the Proposed FY2022 Annual Audit Plan is to outline audits and other activities
the Department of Internal Audit proposes to conduct during the fiscal year. The Plan is developed
to satisfy applicable auditing standards and responsibilities established by Section 2-37 (b)(1) of
the Fort Worth City Code.
The Plan is a working document in that the City Auditor may make changes to the Plan, as deemed
necessary in professional judgment, to reflect changing risks. However, the Audit Committee will
be notified of any significant additions, deletions, or other changes.
Audit Coverage
Audits included in the FY2022 Annual Audit Plan were identified through a general risk
assessment. Sources used to identify the audit population primarily consisted of a review of City
budgetary, financial and organizational documents, prior internal and external audits, internal audit
staff s knowledge of City of Fort Worth and local government operations, and feedback from the
Mayor and City Council and management. Risk factors taken into consideration included: 1)
budget/liquidity of assets; 2) potential for negative publicity; 3) organizational, operational and/or
technological changes; 4) extent of laws and regulations; and 5) time since last audit/prior audit
results. The proposed audit plan includes audits related to operational effectiveness and efficiency,
internal controls, compliance with applicable laws, policies and procedures and regulations,
follow-up to prior internal and external audits, and on -going data analysis.
Audits included in the Proposed FY2022 Annual Audit Plan are based on estimated available audit
staff hours, and staff expertise. The Audit Plan also includes unassigned hours that have been set
aside to perform special audits, investigations, projects, etc. as directed by the Mayor, City
Council, Audit Committee and/or as requested by the City Manager.
Proposed FY2022 Annual Audit Plan Page 1 of 11
Internal Audit Process
Audit Objectives
Audits for FY2022 are listed, alphabetically, on the following pages. While general audit
objectives are noted, these objectives may change once staff has established more familiarity with
the department and/or audited function. At that time, potential issues will be identified and the
specific audit objectives and methodology will be developed as deemed necessary.
Proposed FY2022 Annual Audit Plan Page 2 of 11
Audits
Alliance Management Services Contract
Open Counter Software
Building Inspections/Re-Inspections
Permitting Process
Construction (5)
Property Tax Reconciliation
Construction Aggregate Controls
Revenue Estimates
Container Hauling FeesIF
Special Requests
Controlled Substances
Unemployment Claims Process
Expending of Transportation Impact Fees
Weapons Destruction
Fuel Card Program
Data Analysis (On -Going)
Implementation of Payroll Consultants' Recommendations
Follow -Up Audits (On -Going)
Carmy-Over Audit
Remote Access Security
Proposed FY2022 Annual Audit Plan Page 3 of 11
Follow -Up Audits
Accounts Payable
ActiveNet Software
PeopleSoft Procurement Software (Requisitioning
and Purchase Order Process
Police Response Time
Concrete Street Restoration Construction Contract
Street and Bridge Improvements Contract
Cybersecurity
Street Light Repairs and Maintenance
Delegation of Financial Authority
Transportation Impact Fees
Donations
Treasury Operations
Facility Maintenance Costs
Volunteer and Intern Recruitment Program
Healthspace (Health Inspections) Software
Wastewater Diversion Drainage Basin Contract
(Eagle Mountain to Big Fossil Creek Main and
Gravity Main Sewer)
On -Line Payment Reconciliations
Water Field Operations Inventory
Payroll Adjustments and Corrections
Water Lead Services Replacement Contract
Proposed FY2022 Annual Audit Plan Page 4 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit/Project
Preliminary Audit Objective(s)
Economic
Base/Future
Clean,
Workforce
Mobility
Safest
Orderly &
Attractive
Dev./Job
& Air
Major
Sustainable
City
Opportunities
Quality
City
Development
To determine whether the vendor
Alliance Management
complied with contract requirements;
X
X
X
X
Services Contract
To evaluate the City's process of
monitoring the contract
Building
To determine whether existing controls
Inspections/Re-
help ensure that building inspections are
X
X
X
X
X
Inspections
completed as required by City policy
and applicable legislation
To determine whether construction
Construction (5)
Projects were completed in accordance
X
X
X
X
X
with contract terms; To ensure
compliance with applicable legislation
Construction
To evaluate controls over aggregates
Aggregate Controls
(e.g., asphalt, sand, gravel, etc.)
X
X
X
X
purchased by the City
To determine whether haulers were
billed as required; To determine
Container Hauling
Whether haulers were accurately billed;
Fees
To determine whether container
X
X
X
X
hauling fees were accounted for and
properly recorded
To determine whether the Animal
Services Division complied with City
Controlled
policy and Federal Drug Enforcement
Substances
Administration (DEA) requirements;
X
X
X
To evaluate the effectiveness by which
controlled substances are managed
within the Animal Service Division
Expending of
To ensure that transportation impact
Transportation
fees were expended as required by City
X
X
X
X
X
Impact Fees
policy and applicable legislation
Fuel Card Program
To evaluate controls over the City's fuel
X
card program
Proposed FY2022 Annual Audit Plan Page 5 of 11
MAYOR
AND COUNCIL
STRATEGIC
GOALS
Strong
Audit/Project
Preliminary Audit Objective(s)
Economic
Base/Future
Clean,
Workforce
Mobility
Safest
Orderly &
Attractive
Dev./Job
& Air
Major
Sustainable
City
Opportunities
Quality
City
Development
Implementation of
To determine the implementation status
Payroll Consultants'
of recommendations made by outside
X
Recommendations
payroll consultants
Open Counter
To evaluate controls within the software
X
X
X
X
X
Software
used to process City permits
To determine whether permits were
issued in accordance with established
Permitting Process
policy and applicable legislation; To
X
X
X
X
X
ensure that existing controls help
establish accountability for permits
issued
To determine whether City property tax
records and revenue can be reconciled
Property Tax
to property tax records within the
X
X
Reconciliation
Tarrant Appraisal District and the
Tarrant County Tax Assessor-
Collector's Office
To evaluate the City's process for
Revenue Estimates
estimating revenue, and to conclude as
X
to whether revenue assumptions seem
reasonable
As directed by the Mayor, City Council
Special Requests
or Audit Committee, and/or as
X
X
X
X
X
requested by the City Manager
To evaluate the process by which
unemployment claims are verified by
Unemployment
the City; To determine whether City
X
Claims Process
payments made to the State of Texas,
for unemployment claims, were
accurate
To determine whether weapon
destructions are in accordance with City
policy and/or applicable legislation; To
Weapons Destruction
ensure accountability for weapons
X
X
designated for destruction; To ensure
that weapon destruction records are
adequate and properly retained
Proposed FY2022 Annual Audit Plan Page 6 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Audit/Project
Preliminary Audit Objective(s)
Strong
Economic
Base/Future
Clean,
Workforce
Mobility
Safest
Orderly &
Attractive
Dev.IJob
& Air
Major
Sustainable
City
Opportunities
Quality
City
Development
Accounts Payable
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
ActiveNet Software
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Concrete Street
Restoration
To determine the implementation status
X
X
X
X
X
Construction
of prior internal audit recommendations
Contract Follow -Up
Cybersecurity
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Delegation of
Financial Authority
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Donations Follow- Up
To determine the implementation status
X
of prior internal audit recommendations
External Audit
To determine the implementation status
X
X
X
X
X
Follow -Up
of external auditor recommendations
Facility Maintenance
To determine the implementation status
Costs Follow- Up
of prior internal audit recommendations
X
X
X
X
Healthspace (Health
To determine the implementation status
Inspections) Software
of prior internal audit recommendations
X
X
X
X
X
Follow -Up
On -Line Payment
To determine the implementation status
Reconciliations
of prior internal audit recommendations
X
Follow- Up
Payroll Adjustments
To determine the implementation status
and Corrections
of prior internal audit recommendations
X
Follow -Up
Proposed FY2022 Annual Audit Plan Page 7 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Audit
Preliminary Audit Objective(s)
Strong
Economic
Base/Future
Clean,
Workforce
Mobility
Safest
Orderly &
Attractive
Dev.IJob
& Air
Major
Sustainable
City
Opportunities
Quality
City
Development
PeopleSoft
Procurement
Software
To determine the implementation status
X
X
X
X
X
(Requisitioning and
of prior internal audit recommendations
Purchase Order
Process) Follow -Up
Police Response Time
To determine the implementation status
X
X
X
X
X
Follow -Up
of prior internal audit recommendations
Street and Bridge
To determine the implementation status
Improvements
of prior internal audit recommendations
X
X
X
X
X
Contract Follow -Up
Street Light Repairs
To determine the implementation status
and Maintenance
of prior internal audit recommendations
X
X
X
X
Follow -Up
Transportation
To determine the implementation status
Impact Fees Follow-
of prior internal audit recommendations
X
X
X
X
X
Up
Treasury Operations
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Volunteer and Intern
To determine the implementation status
Recruitment
of prior internal audit recommendations
X
X
X
X
Program Follow -Up
Wastewater
Diversion Drainage
To determine the implementation status
X
X
X
X
X
Basin Contract
of prior internal audit recommendations
Follow -Up
Water Field
Operations Inventory
To determine the implementation status
X
X
X
X
X
Follow -Up
of prior internal audit recommendations
Water Lead Services
Replacement
To determine the implementation status
X
X
X
X
X
Contract Follow -Up
of prior internal audit recommendations
Proposed FY2022 Annual Audit Plan Page 8 of 11
On -Going Data Analysis
The Proposed FY2022 Annual Audit Plan also includes on -going data analysis to identify
anomalies: 1) within City of Fort Worth automated systems and 2) between City and third party
(e.g., Texas State Comptroller) data. Our proposed on -going data analysis includes tasks such as
analyzing general ledger activity, conducting trend analysis, reviewing payroll transactions, etc.
Results that indicate a need for an audit will be presented to the Audit Committee, with a
recommendation to amend the Annual Audit Plan.
Audit Cycle
An objective of the Department of Internal Audit is to establish a cycle that ensures each operating
department is audited at least once every five (5) years. The following table depicts our plan to
accomplish this objective.
Proposed FY2022 Annual Audit Plan Page 9 of 11
Department
FY2018
FY2019
FY2020
FY2021
FY2022
Aviation
Code Compliance
x
x
x
Communications & Public Engagement
Development Services (formerly, Planning and Development)
N/A
N/A
N/A
x
x
Diversity & Inclusion
N/A
N/A
N/A
Economic Development
x
x
I x
Financial Management Services
x
x
x
x
Fire
x
x
Human Resources
x
x
x
Information Technology
x
x
x
x
x
Library
x
Municipal Court
x
x
x
Neighborhood Services
I
I x
Park and Recreation
x
x
x
Performance and Budget
x
I N/A
I N/A
Planning and Data Anal tics (formerly, Performance and Budget)
N/A
N/A
NiA
x
x
Planning and Development
x
N/A
N/A
Police
x
x
x
x
Property Management
x
x
x
x
Public Events
x
Transportation and Public Works
x
x
x
x
Water
I
I x
x
x
Proposed FY2022 Annual Audit Plan Page 10 of 11
Prepared by:
Department of Internal Audit
200 Texas Street
Fort Worth, Texas 76102
Phone: 817-392-6158
Fax: 817-392-6133
www.fortworthtexas.gov/internalaudit
Proposed FY2022 Annual Audit Plan Page 11 of 11