HomeMy WebLinkAbout(0008) Proposed FY2020 Annual Audit Plan.pdf.FORTWORTH.
CITY OF FORT WORTH
DEPARTMENT OF INTERNAL AUDIT
Proposed FY2020 Annual Audit Plan
Purpose
The purpose of the Proposed FY2020 Annual Audit Plan is to outline audits and other activities
the Department of Internal Audit proposes to conduct during the fiscal year. The proposed Plan is
developed to satisfy applicable auditing standards and responsibilities established by Section 2-
134 (b) of the Fort Worth City Code.
The proposed 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 Proposed FY2020 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)
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 FY2020 Annual Audit Plan are based on estimated available audit
staff hours, and staff expertise. The Proposed Audit Plan also includes a total of 1,200 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 FY2020 Annual Audit Plan Page 1 of 10
Internal Audit Process
Audit Obiectives
Proposed audits for FY2020 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 function. At that time, potential issues will be identified and the specific
audit objectives and methodology will be developed as deemed necessary.
Proposed FY2020 Annual Audit Plan Page 2 of 10
Proposed Audits
Accounts Payable Sales Tax Paid by City of Fort Worth
Criminal Warrant Processing Service Center Operations
Cybersecurity I Special Requests
Gas Utility Expense Treasury Operations
Late Fees d6 I Water Field Operations Inventory
On -Line Payment Reconciliations I Data Analysis (On -Going)
Police Unclaimed Funds Follow -Up Audits (On -Going)
Revenue Estimates
]Proposed Carry -Over Audits
Construction
Healthspace (Health Inspections) Software
PeopleSoft Procurement Software (Requisitioning and Purchase Order Process)
]Proposed Agreed Upon ]Procedures
Responsible Authority for City of Fort Worth Revenue Sources
Proposed FY2020 Annual Audit Plan Page 3 of 10
Proposed Follow -Up Audit
Annual External Audit Parking Garage Revenue
Annual Fire Inspections Police Property and Evidence
Equipment Leases
Public, Educational and Governmental Access
Channels Funding
Facility Rentals — Park and Recreation
Public Improvement District #14
Facility Rentals — Public Events
Ticket Accountability
Grants Management
Vendor Access Controls
Library Cash Handling
Water Utility Billings and Adjustments
Overtime Usage and Controls
Proposed FY2020 Annual Audit Plan Page 4 of 10
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit/Project
Preliminary Audit Objective(s)
Econorrrc
Base/Future
Clean,
Workforce
Nobility
Safest
Orderly &
Attractive
Dev./Job
&Air
Major
Sustainable
City
Opportunities
Quality
City
Development
To determine whether invoices were
paid in accordance with vendors' bids,
price lists, etc.; To ensure that payments
Accounts Payable
Were not duplicated; To ensure that
X
payments were adequately supported;
To evaluate internal controls over the
City's accounts payable/ACH process
To determine whether construction
projects are being completed in
Construction
accordance with contract terms; To
X
X
X
X
X
ensure compliance with applicable
legislation
Criminal Warrant
To evaluate the City's processing of
X
X
Processing
criminal warrants
To evaluate the effectiveness and
Cybersecurity
efficiency of existing controls that
X
would help deter, prevent and/or
respond to cyberattacks
To determine whether billings for gas
utility expenses are accurate and
Gas Utility Expense
reasonable; To evaluate the oversight
X
and maintenance of the gas utility
expense process
To evaluate internal controls within the
Healthspace (Health
City's public health software; To
Inspections) Software
determine whether existing controls
X
X
X
X
X
ensure accountability for health
inspection revenue
To identify the financial impact of
Late Fees
untimely payments to City vendors; To
X
determine whether late fees are
adequately tracked and monitored
Proposed FY2020 Annual Audit Plan Page 5 of 10
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit/Project
Preliminary Audit Objective(s)
Econorrrc
Base/Future
Clean,
Vftworce
Nobility
Safest
Orderly &
Attractive
Dev./Job
&Air
Major
Sustainable
City
Opportunities
Quality
City
Development
To ensure accountability for revenue
received via on-line payments; To
On -Line Payment
ensure accuracy and applicableness of
Reconciliations
associated fees; To ensure
X
reconciliation of unmatched
transactions
PeopleSoft
Procurement
To evaluate internal controls related to
Software
(Requisitioning and
the process for requisitioning and
X
X
X
X
X
Purchase Order
ordering goods and services
Process)
To ensure that monies accounted for as
a liability in an unclaimed fund do not
Police Unclaimed
represent revenue that can be realized
X
X
Funds
by the City of Fort Worth and/or paid
to another agency
To determine whether departments
Responsible
noted as being responsible for specific
Authority for City of
revenue sources (listed within the City's
X
Fort Worth Revenue
Revenue Manual) are appropriately
Sources
designated
To evaluate the City's process for
estimating revenue and to conclude as
X
Revenue Estimates
to whether revenue assumptions seem
reasonable
Sales Tax Paid by
To identify the financial impact of sales
X
City of Fort Worth
taxes unnecessarily paid to City vendors
Service Center
To evaluate controls over inventory; To
X
X
Operations
ensure proper recording of fixed assets
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 City's process for
managing revenue accounts (e.g.,
escalating non -compliant accounts,
Treasury Operations
NSF check processing, reconciliations
X
between City revenue and City sub-
systems, and reconciliations between
City revenue and third party data)
Proposed FY2020 Annual Audit Plan Page 6 of 10
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit/Project
Preliminary Audit Objective(s)
Econorrrc
Base/Future
Clean,
Vftworce
Nobility
Safest
Orderly &
Attractive
Dev./Job
&Air
Major
Sustainable
0000009
City
Opportunities
Quality
City
Development
To verify the existence of water
inventory; To evaluate the effectiveness
Water Inventory
and efficiency of the City's controls
X
X
X
X
X
over water inventory
To determine the implementation status
Annual External
of prior external audit
X
X
X
X
X
Audit Follow -Up
recommendations
Annual Fire
To determine the implementation status
Inspections Follow-
of prior internal audit recommendations
X
X
X
X
Up
Equipment Leases
To determine the implementation status
Follow -Up
of prior internal audit recommendations
X
X
Facility Rentals —
To determine the implementation status
Park and Recreation
of prior internal audit recommendations
X
X
X
X
X
Follow -Up
Facility Rentals —
To determine the implementation status
Public Events Follow-
of prior internal audit recommendations
X
Up
Grants Management
To determine the implementation status
Follow -Up
of prior internal audit recommendations
X
X
X
X
X
Library Cash
To determine the implementation status
Handling Follow -Up
of prior internal audit recommendations
X
Overtime Usage and
To determine the implementation status
Controls Follow -Up
of prior internal audit recommendations
X
Proposed FY2020 Annual Audit Plan Page 7 of 10
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit
Preliminary Audit Objectives)
Economic
Base/Future
Clean,
Workforce
Nobility
Safest
Orderly &
JJN
Attractive
Dev./Job
&Air
Major
Sustainable
gd
I MW__
City
Opportunities
Quality
City
Development
Parking Garage
To determine the implementation status
Follow -Up
of prior internal audit recommendations
X
X
Police Property and
To determine the implementation status
X
X
Evidence Follow -Up
of prior internal audit recommendations
Pubic, Educational
and Governmental
To determine the implementation status
Access Channels
of prior internal audit recommendations
X
Follow -Up
Public Improvement
To determine the implementation status
District #14 Follow-
of prior internal audit recommendations
X
X
X
X
X
Up
Ticket Accountability
To determine the implementation status
X
X
Follow -Up
of prior internal audit recommendations
Vendor Access
To determine the implementation status
X
Controls Follow -Up
of prior internal audit recommendations
Water Utility Billing
To determine the implementation status
and Adjustments
of prior internal audit recommendations
X
Follow -Up
On -Going Data Analysis
The Proposed FY2020 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. On -going data analysis also includes tasks such as analyzing
general ledger activity, conducting trend analysis, 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.
Proposed FY2020 Annual Audit Plan Page 8 of 10
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.
Department
FY2016
FY2017
FY2018
FY2019
FY2020
Aviation
x
Code Compliance
x
x
x
Communications & Public Engagement
x
Economic Development
x
x
x
x
Financial Management Services
x
I x
x
x
I x
Fire
I
x
x
Human Resources
x
x
Information Technology
x
x
Library
I x
I
x
Municipal Court
I
I x
x
x
Neighborhood Services
x
Park and Recreation
x
x
Performance and Budget Office
I
I
x
x
Planning and Development
x
x
x
Police
x
x
x
Property Management
x
x
Public Events
I
x
x
Transportation and Public Works
x
x
I x
x
Water
x
Based on actual or anticipated audit report release dates
City -Wide Audits
Asset Verifications
Delinquent Account Collections
ERP 11 Post -System Implementation
Equipment Leases
Fixed Asset Dispositions
Gas Utility Billings
Grants Management
Overtime Usage and Controls
Revenue Collection Process
Telephone Expense
Travel & Training Expense Reporting
Tuition Reimbursements
Vendor Access Control
Proposed FY2020 Annual Audit Plan Page 9 of 10
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 FY2020 Annual Audit Plan Page 10 of 10