HomeMy WebLinkAbout(0007) Proposed FY2021 Annual Audit Plan.pdfFORT WORTH
CITY OF FORT WORTH
DEPARTMENT OF INTERNAL AUDIT
Proposed FY2021 Annual Audit Plan
Purpose
The purpose of the FY2021 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 2-134 (b) 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 FY2021 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 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 FY2021 Annual Audit Plan are based on estimated available audit staff
hours, and staff expertise. The 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 FY2021 Annual Audit Plan Page 1 of 11
Internal Audit Process
Audit Obiectives
Audits for FY2021 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 FY2021 Annual Audit Plan Page 2 of 11
Audits
ActiveNet Software
Revenue Estimates
Construction
Special Requests
Delegation of Financial Signing Authority
Street Light Repairs and Maintenance
Donations
Transportation Impact Fees
Facility Maintenance Co—
Volunteer and Intern Recruitment Program
Payroll Adjustments and Corrections
Data Analysis (On -Going)
olice Response TimijennWrM Follow -Up Audits (On -Going)
Remote Access Security
Carry -Over Audits
Criminal Warrant Process
Healthspace (Health Inspections) Software
PeopleSoft Procurement Software (Requisitioning and Purchase Order Process)
Proposed FY2021 Annual Audit Plan Page 3 of 11
Follow -Up Audits
Accounts Payable Police Unclaimed Funds
Construction Responsible Authority Revenue Audit
Cybersecurity
Sales Tax Paid by the City of Fort Worth
Facility Rentals — Park and Recreation
Service Center Operations
Gas Utility Expense
Treasury Operations
Employer Healthcare Expenses
Vendor Access Controls
Late Fees Paid by the City of Fort Worth
Water Field Operations Inventory
On -Line Payment Reconciliations
Proposed FY2021 Annual Audit Plan Page 4 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Aladit/Projed
Preliminary Audit Objedive(s)
Economc
Base/Future
Clean,
womorce
Nobility
Safest
Orderly &
Attractive
Dev./Job
&Air
Major
Sustainable
City
unities
Cluality
City I
I DeMopmt
To evaluate internal controls within the
recreation management software; To
ActiveNet Software
determine whether existing controls
X
ensure accountability for facility rental
revenue
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
Process
criminal warrants
To determine whether delegated
authority for specific transactions (e.g.,
type and dollar thresholds) is explicit in
reference to who has been granted the
specified authority and at which
Delegation of
specific dollar threshold; To determine
Financial Signing
whether delegated authority is
X
Authority
appropriate; To evaluate configuration
of automated forms used to grant
approval authority; To ensure retention
of authorizing records; To determine
whether transactions were approved as
authorized
To ensure that monetary donations are
Donations
expended for the specified intent (e.g.,
X
homebound and isolated seniors and
water assistance program)
Facility
To determine maintenance costs
associated with recently built and/or
X
X
X
X
Maintenance Costs
renovated buildings
Proposed FY2021 Annual Audit Plan Page 5 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Strong
Audit/Project
Preliminary Audit Objedive(s)
Economc
Base/Future
Clean,
womorce
Nobility
Safest
Orderly &
Attractive
Dev./Job
&Air
Major
Sustainable
EL
city
Opportunities
Cluality
city
Developmt
To evaluate internal controls within the
Healthspace (Health
City's public health software; To
determine whether existing controls
X
X
X
X
X
Inspections) Software
ensure accountability for health
inspection revenue
To determine whether payroll
adjustments and corrections were
Payroll Adjustments
supported and in compliance with City
X
and Corrections
policy; To determine whether payroll
adjustments and corrections were
timely
PeopleSoft
To evaluate internal controls related to
Procurement
the process for requisitioning and
X
X
X
X
X
Software
ordering goods and services
To evaluate the timeliness in which the
Police Response Time
Fort Worth Police Department responds
X
X
X
X
X
to citizens' calls
To determine whether the City has
internal controls that ensure risks
related to remote working are
Remote Access
minimized, and to evaluate the
X
X
Security
effectiveness and efficiency by which
those controls would provide secure
connectivity between network and
remote computer assets
To evaluate the City's process for
estimating revenue and to conclude as
X
Revenue Estimates
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 determine whether the City has an
up-to-date street lights inventory
listing; To ensure that street light
repairs and maintenance are completed
Street Light Repairs
in a timely manner; To evaluate the
X
X
X
X
and Maintenance
process by which street light repairs are
prioritized; To determine whether there
is a clear line of responsibility regarding
light repairs over City versus state-
owned roads and highways
Proposed FY2021 Annual Audit Plan Page 6 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
AudiVProject
Preliminary Audit Objective(s)
Strong
Economic
Base/Future
Clean,
Vftworce
Mobility
Safest
Orderly &
Attractive
DevJJob
&Air
Major
Sustainable
city
Opportunities
CmWity
city
Development
To evaluate the effectiveness by which
Transportation
impact fees are imposed and collected
X
X
X
X
X
Impact Fees
to mitigate development -related
transportation costs
Volunteer and Intern
To evaluate the effectiveness by which
Recruitment
the City recruits, utilizes and/or
X
X
X
Program
compensates volunteers and interns
Accounts Payable
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Construction Follow-
To determine the implementation status
X
X
X
X
X
Up
of prior internal audit recommendations
Cybersecurity
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Employer Health
To determine the implementation status
X
Expenses Follow -Up
of prior internal audit recommendations
Facility Rentals
(Park and
To determine the implementation status
X
X
Recreation) Follow-
of prior internal audit recommendations
Up
Gas Utility Expense
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Proposed FY2021 Annual Audit Plan Page 7 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Audit
Preliminary Audit Objective(s)
Strong
Economic
Base/Future
Clean,
Vftworce
Mobility
Safest
Orderly &
Attractive
DevJJob
&Air
Major
Sustainable
city
Opportunities
CmWity
City
Development
Late Fees Paid by the
To determine the implementation status
City of Fort Worth
of prior internal audit recommendations
X
Follow -Up
On -Line Payment
To determine the implementation status
Reconciliations
of prior internal audit recommendations
X
Follow -Up
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 Unclaimed
To determine the implementation status
X
X
Funds Follow -Up
of prior internal audit recommendations
Responsible
To determine the implementation status
X
Authority Revenue
of prior internal audit recommendations
Follow -Up
Sales Tax Paid by the
To determine the implementation status
X
City of Fort Worth
of prior internal audit recommendations
Follow -Up
Service Center
To determine the implementation status
Operations Follow-
of prior internal audit recommendations
X
X
Up
Treasury Operations
To determine the implementation status
X
Follow -Up
of prior internal audit recommendations
Proposed FY2021 Annual Audit Plan Page 8 of 11
MAYOR AND COUNCIL STRATEGIC GOALS
Preliminary Audit Objective(s)
Strong
Economic
Base/Future
Clean,
Vftworce
Mobility
Safest
Orderly &
Attractive
DevJJob
&Air
Major
Sustainable
city
Opportunities
CmWity
City
Development
Vendor Access
To determine the implementation status
X
Controls Follow -Up
of prior internal audit recommendations
Water Field
Operations Inventory
To determine the implementation status
X
X
X
X
X
Follow -Up
of prior internal audit recommendations
On -Going Data Analysis
The FY2021 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 parry (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.
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 FY2021 Annual Audit Plan Page 9 of 11
Department
FY2017
FY2018
FY2019
FY2020
FY2021
Aviation
X
Code Compliance
X
I X
I X
Communications & Public Engagement Mi
X
Development Services (formerly, Planning and
Development)
N/A
N/A
N/A
N/A
X
Diversity & Inclusion
N/A
N/A
N/A
N/A
Economic Development
X
X
X
Financial Management Services
X
X
X
x
X
Fire
X
X
Human Resources
X
X
X
Information Technology
I
X
X
Library
X
Municipal Court
I X
X
X
Neighborhood Services
I
X
Park and Recreation
X
I
X
X
Performance and Budget
X
N/A
Planning and Data Analytics (formerly,
Performance and Budget)
N/A
N/A
N/A
N/A
X
Planning and Development
X
N/A
Police
X
I
X
X
X
Property Management
X
X
X
Public Events
X
X
Transportation and Public Works
x
X
x
X
Water
X
X
Based on actual or anticipated audit report release dates
City -Wide Audits
Asset Verifications
Delegation of Financial Signing Authority
Delinquent Account Collections
ERP II Post -System Implementation
Equipment Leases
Fixed Asset Dispositions
Gas Utility Billings
Grants Management
Late Fees Paid by the City of Fort Worth
Overtime Usage and Controls
Revenue Collection Process
Sales Tax Paid by the City of Fort Worth
Telephone Expense
Travel & Training Expense Reporting
Tuition Reimbursements
Vendor Access Control
Proposed FY2021 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 FY2021 Annual Audit Plan Page 11 of 11