HomeMy WebLinkAboutResolution 5796-09-2023A Resolution
NO. 5796-09-2023
APPROVING PROPOSED FISCAL YEAR 2024 ANNUAL AUDIT PLAN
WHEREAS, Section 2-37 of the Fort Worth City Code requires that, at least 30
days prior to the beginning of each fiscal year, the department of Internal Audit submit
an annual audit plan to the City Council or its delegatee for review and comment; and
WHEREAS, under the City Code the plan is required to be based on (i) requests
from City Council, the City Manager's Office, and department heads; (ii) a risk
assessment of all City activities which shall be performed by Internal Audit prior to the
completion of the annual audit plan; (iii) suggestions from Internal Audit staff based on
their knowledge of City activities or observations made during the performance of other
audits; and (iv) other relevant criteria agreed to by the City Council or its delegatee and
the city internal auditor; and
WHEREAS, the City Code requires that the audit plan include a block of
unassigned hours to be used to perform special audits, investigations and/or projects
requested by the City Council and/or City Manager; and
WHEREAS, the attached audit plan was prepared in compliance with and meets
the criteria specified by the City Code; and
WHEREAS, the attached plan was presented to the Fort Worth City Council on
August 29, 2023 for review and comment, and was commented on favorably; and
WHEREAS, it is recommended that the attached document be adopted as the
annual audit plan for the City of Fort Worth for Fiscal Year 2024; and
WHEREAS, as noted in the City Code, the adopted audit plan is subject to review
and amendment throughout the year if and as needed to respond to any changes in
circumstance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
The document attached hereto as Exhibit A is hereby adopted and approved as the
Annual Audit Plan for the City of Fort Worth for Fiscal Year 2024.
Adopted this 12th day of September 2023.
ATTEST:
By: A,-, P 6�� ----- ----------------
Jannette S. Goodall, City Secretary
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Annual Audit Plan
Fiscal Year 2024
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Annual Audit Plan Fiscal Year 2024
Page 1 of 14
PURPOSE
This Fiscal Year (FY) 2024 Annual Audit Plan (Plan) identifies activities to be conducted by the
City of Fort Worth Department of Internal Audit (IA) during the fiscal year 2024. This Plan has
been developed to (i) abide by professional standards for the practice of internal audit, and (ii)
comply with actions required in Section 2-37 (b)(I) of City of Fort Worth Ordinance 24030-02-
2020, which requires that "....no less than 30 days prior to the beginning of each fiscal year, the
department of internal audit shall submit an annual audit plan to the city council....".
This Plan is a working document, and as such, the City Auditor may be required to modify this
Plan, as deemed necessary in professional judgment, to respond to evolving, unanticipated risks
and events as may arise from time to time during the course of the fiscal year; in such cases, the
City Auditor shall notify the Audit Committee, timely, of significant modifications.
ENTERPRISE -LEVEL COVERAGE
Engagements included in this Plan were developed through an annual risk assessment process.
Sources used to formulate the Schedule of Activities (identified later in this Plan) consisted of a
review of City budgetary, financial and organizational documents, prior internal and external
audits, internal audit staffs knowledge of City of Fort Worth and local government operations,
and feedback received from the risk survey questionnaire which IA provided to City management
during the May -June 2023 timeframe. This Plan includes engagements related to the assessment
of operational effectiveness and efficiency, internal controls, compliance with applicable laws,
obligations, policies, procedures and regulations, follow-up to prior internal and external audits,
and on -going data analysis. The Schedule of Activities identified herein serve to evaluate the
design and operating effectiveness of the current system of internal control in place in support of
the City's stated mission which includes"... building strong neighborhoods, developing a sound
economy, providing a safe community and fostering a healthy environment" and the City's stated
objectives including "...building a safe community, making Fort Worth a better place to live,
work and play, preserving the past and building the future, providing exceptional customer
service."
Engagement budgeted hours included in this Plan are based on estimated available IA staff hours
during the fiscal year, and this Plan includes unassigned hours allocated to perform special audits,
investigations, projects, etc. as may be directed by City Council.
Annual Audit Plan Fiscal Year 2024 Page 2 of 14
STANDARD ENGAGEMENT PROCESS
Report out to Audit Committee
ENGAGEMENT (PRELIMINARY) OBJECTIVES
Submit Annual Audit Plan to
City Council for approval
Engagements proposed for FY2024 are listed, alphabetically, on the following Schedule of
Activities. While preliminary engagement objectives are noted, these may evolve once IA has
established more familiarity with a department or function being audited, and at such time,
potential issues will be identified and the specific engagement -level objectives and methodology
will be refined as deemed necessary. By their nature, not all engagements on the Schedule of
Activities will result in a published audit report posted to the City's public website.
Annual Audit Plan Fiscal Year 2024 Page 3 of 14
Schedule of Activities
W
New
=
c.
Or
Engagement
Engagement
�
Carryover
Index
Name
Preliminary Audit Objective(s)
a.
Engagement
Identifier
x
0
from Prior
Year
Audit Plan
Ensure conformance of Internal Audit's practices to Generally Accepted
Government Auditing Standards (GAGAS).
Audit Quality
This engagement requires that periodic assessments occur during the
2024-1
Control
year to review auditors' work product and ensure activities and
250
New
documentation conform to GAGAS requirements. This Activity is required
of auditors by professional standards for the practice of internal audit.
Review the design and assess effectiveness of controls with regard to
2024-2
City Hall
ongoing contractor and/or vendor selection(s), capital
700
New
Relocation
investment/operating expenditure approvals and modifications, and
project monitoring/reporting to Council.
2024-3
City Owned
Review the design and assess effectiveness of controls in place which
600
New
Vehicles
serve to limit use of city owned vehicles to city authorized activity.
Construction
Assess whether construction projects were completed in accordance with
(Property
contract terms and applicable laws.
600
New
2024-4
Management)
Construction
(Transportation
Assess whether construction projects were completed in accordance with
2024-5
and Public
contract terms and applicable laws.
600
New
Works
Crime Control
Sample a set of transactions funded by the CCPD to evaluate compliance
2024-6
and Prevention
with the District's guiding policies and criteria for permissible
600
New
District (CCPD)
disbursements.
Identify anomalies within City of Fort Worth automated human capital
management (HCM) and other applicable systems; results may indicate a
2024-7
Data Analysis
further need for an audit, which would be proposed to the Audit
500
New
Committee, with a recommendation by City Auditor to amend this Annual
Audit Plan at such time.
Assess and summarize key issues and current- state workflow practices,
Development
organizational structure, staffing levels, and technology needs for purpose
2024-8
Services
of providing conclusions, recommendations and roadmap to enhance the
700
New
efficiency and effectiveness of service offerings.
Sample a selection of hardware, and software applications in -use to
evaluate the adequacy of controls and security safeguards with regards to
Information
(i) user identification/authorization, (ii) patch management -updates, (iii)
2024.9
Security
incident response plan and incidence response
800
New
training/testing/handling/monitoring/reporting, or other as determined by
assigned auditor.
Annual Audit Plan Fiscal Year 2024 Page 4 of 14
Schedule of Activities
W
New
=
Or
Engagement
Engagement
CD
Carryover
Index
Name
Preliminary Audit Objective(s)
Q
Engagement
Identifier
c
from Prior
C
Year
Audit Plan
Assess "current state" of a sample set of programs offered and services
Library
provided in relation to population served, common industry standards
Programs and
and good business practices for purpose of providing conclusions,
600
New
2024-10
Services
recommendations and roadmap to enhance the efficiency and
effectiveness of service offerings.
2024-11
Management
Action menPlan
Follow up on status of management action plans associated with audit
540
New
Follow Ups
report findings and recommendations from reports issued in prior years.
Neighborhood
Review sample set of transaction documentation to assess the design
Services —
and evaluate effectiveness of controls to ensure due- diligence
2024-12
Affordable
procedures are in place that may reasonably demonstrate to interested
600
New
Housing
stakeholders that disbursements are effectively managed.
Revenue
Evaluate the reasonableness of assumptions and the revenue estimate
2024-13
Estimates
for budgeted revenue.
600
New
Assess "current state" governance and oversight of City social media
strategy and platforms against good business practices and standards,
Social Media
and evaluate whether controls over user access and
600
New
2024-14
effectiveness/performance monitoring and reporting are in place and
functioning.
Special
As directed by the Mayor, City Council, Audit Committee, and/or as
2024-15
Requ gists
requested by the City Manager.
1,903
New
Review "current state" talent management lifecycle strategy with focus
Talent
on the Professional Development, Recruitment, Retention, and
Management
Succession Planning phases for the purpose of providing conclusions,
700
New
2024-16
Lifecycle
recommendations and roadmap to enhance talent management lifecycle
activities consistent with good business practices.
Annual Audit Plan Fiscal Year 2024 Page 5 of 14
Schedule of Activities
0o
New
CL
Or
Engagement
Engagement
Preliminary Audit Objective(s)
cc
Carryover
Index
Name
a
Engagement
Identifier
o
from Prior
Year
Audit Plan
Building
To determine whether existing controls help ensure that building
Carry Over-
2024-2023.29
Inspectionsl
inspections are completed as required by City policy and applicable
300
Started Not
Re -inspections
legislation.
Completed
City Vehicle
To determine whether prevention and mitigation strategies are
Carry Over-
2024-2023-2
Accident
adequate.
310
Started Not
Prevention
Completed
To determine whether construction projects were completed in
Construction
accordance with contract terms; To determine whether the project
Carry-Over-
2024-2023-4
(Transportation
was performed in accordance with contract terms and applicable
40
Started Not
and Public Works)
laws.
Completed
To determine whether construction projects were completed in
Construction
accordance with contract terms; To determine whether the project
Carry Over•
2024.2023-5
(Water)
was performed in accordance with contract terms and applicable
was
600
Started
laws.
Delinquent
To evaluate the effectiveness of delinquent account collection efforts;
Carry Over-
2024-2023-6
Accounts
To identify opportunities to improve collections.
300
Started Not
Collection
Completed
2024-2023-7
Department Level
To evaluate the effectiveness and efficiency of departmental grants
Carry Over -
Grants
management; to evaluate compliance w/grants requirements.
100
Started Not
Management
Completed
Expending of
To ensure that transportation impact fees were expended as required
Carry Over-
2024-2023-20
Transportation
by City policy and applicable legislation.
600
Not Started
Impact Fees
Inventory
To evaluate the effectiveness and efficiency of controls over
Carry Over-
2024-2023-8
Controls
inventories; To verify general ledger balances.
260
Started Not
Completed
2024-2023-9
Operational
To evaluate whether preparedness efforts are adequate for the City to
Carry Over.
Resilience
function in an extended emergency.
600
Not Started
2024-2023.10
Ransomware
To evaluate the adequacy of the City's security defenses against
Carry Over -
Preparedness
ransomware attacks.
600
Not Started
Revenue
To determine whether assumptions and the revenue estimate for
Carry Over-
2024-2023-11
Estimates
budgeted revenue are reasonable.
200
Started Not
Completed
Annual Audit Plan Fiscal Year 2024 Page 6 of 14
Schedule of Activities
W
New
CL
Or
Engagement
Engagement
Preliminary Audit Objective(s)
�
o-
Carryover
Engagement
Index
Name
c
from Prior
Identifier
aYear
Audit Plan
Tree Mitigation
To determine the controls in place to ensure that the City collects all
Carry Over -
2024.2023-13
Fund
tree mitigation fees that should be collected.
600
Not Started
2024-2023-14
Utility Franchise
Y
To determine whether the City receives all franchise fees due.
y
120
Carry Over-
Started Not
Fees
Completed
2024-2023-15
Vendor
To verify that the process for adding, changing and removing vendor
Carry Over -
Management and
data is adequately controlled.
600
Not Started
Controls
TOTAL ANNUAL AUDIT PLAN BUDGET HOURS AVAILABLE 169648
TOTAL ANNUAL AUDIT PLAN BUDGET HOURS ALLOCATED TO ENGAGEMENTS (16J23)
RESERVE HOURS FOR UNANTICIPATED INCREASES WHICH MAY BE REQUIRED 525
Annual Audit Plan Fiscal Year 2024 Page 7 of 14
APPENDIX
Available Annual Internal Audit Plan Hours Calculation-FY2023 vs. FY2024
Annual Department Budget and Resources — FY2023 vs. FY2024
City Dept. Audit Rotation Cycle History — 5 Yr. History
Annual Audit Plan Schedule of Activities Tentative Calendar
Annual Audit Plan Fiscal Year 2024 Page 8 of 14
Annual Audit Plan (estimated) Available Budget Hours Calculation-FY2023 vs. FY2024
FY2023
FY2024
CITY OF FORT WORTH
1
1
1
CITY OF FORT WORTH
DEPARTMENT OF INTERNAL AUDIT
DEPARTMENT OF INTERNAL AUDIT
ESTIMATED AVAILABLE HOURS FOR AUDIT PLAN
1
ESTIMATED AVAILABLE HOURS FOR AUDIT PLAN
1
1
Staff Auditors:
FTE
Audit Hrs
1
Staff Auditors:
FTE
Audit Hrs
Total Available Hours
2,080
1
Total Available Hours
2,080
Less: Holidays
(72,
t
Less: Holidays
'
Personal Leave (vacation & sick)
(13C,
Personal Leave (vacation & sick)
)
Training (requirea CPE and CFW)
(64
Administrative
(240:
1
Training (require E and CFoti)
i°�)
MilitaryLeave
0
I
Administrative'
.W)
1,574 9
14,166
1
tuGlitaryLeave
0
1
1,524 8.67
13.213
1
Programmer Analyst:
1
Total Available Hours
2,080
1
1
Programmer Analyst:
Holidays
(72)
1
Total Available Hours
2,080
Personal Leave (vacation & sick)
(130)
1
Holidays
-
Training (required CPE and CFW)
(64)
Personal Leave (vacation & sick)
(140)
Administrative
(240)
1
Training (required CPE and CFW)
(64)
Programming SpecificAT Support
(1,000)
1
Administrative
(280)
574 1
574
1
Programming SpecfidlTSupport
-
1
1,399 1
1,399
1
Audit Manager:
1
Total Hours Available
2,080
1
Audit Manager:
Holidays
72)
1
Total Hours Available
2,080
Personal Leave (vacation & sick)
(130)
1
Holidays
Training (required CPE and CFW)
(80)
1
Personal Leave (vacation & sick)
14,
Administrative (40%)
(660)
1
Training (required CPE and CFIN)
18C
1,138 2
2,276
1
Administrative (45%)
1
852 2
1,704
Asst City Auditor:
1
Total Hours Available
2,080
1
Asst. City Auditor:
Holidays
(72)
I
Total Hours Available
2,080
Personal Leave (vacation & sick)
(130)
Holidays
Personal Leave (vacation &sick)
(" 1l
Training (required CPE and CFW)
(80)
1
Training (required CPE and CFIN)
180)
Adm inistrative (40%)
(832)
Administrative(70%)
k 4}
966 1
1
332 1
332
1
I
Non -Audit
2
1
1
I
Nan -Audit
2
<ed Hrs 3 FTE Available for Plan
15
17 982
I
Adjusted Hrs & FTE Available for Plan
14.67
16 648
1
1
NOTE: During FY2023 the Department of Internal Audit experienced a high level of staff vacancies (peaking at 47.3%) which
caused adverse effects on planned FTE, available audit hours and annual audit plan completion rate. Consequently, many
FY2023 engagements were required to be rolled forward into FY2024, as part of this proposed Annual Audit Plan.
Page 9 of 14
Annual Department Budget and Resources—FY2023 vs. FY2024
FY 2023
(as published) Salaries & Benefits 1,781,648 1,947,390 1,947,390 2,051,402 104,012 5.34%
Gen Operating & Maintenance 152,390 184,057 224,057 286,291 102,224 55.549E
General Fund 19.00 17.96 19.00 17.96
FY 2024
(as proposed)
Approved
Positions
19
Approved
Expenses
$2,337,683
Approved
Positions
18
Approved
Expenses
$2,523,477
Annual Audit Plan Fiscal Year 2024 Page 10 of 14
City Department Audit Cycle History
A goal of IA is to establish a cycle by which operating departments are audited at least once every five (5)
years. The following table depicts 5 year history of department cycle rotation.
Department
FY2020
FY2021
FY2022
FY2023
FY2024
Aviation
X
Code Compliance
X
X
X
Communications & Public Engagement
X
Development Services (formerly, Planning and Development)
X
X
I X
Diversity & Inclusion
Economic Development
X
Financial Management Services
X
X
X
X
X
Fire
X
Human Resources
X
X
X
X
X
Information Technology
X
X
X
X
X
Library
X
X
Municipal Court
X
Neighborhood Services
X
X
Park and Recreation
X
X
FW Lab (Formerly Planning and Data Anal ics)
X
X
Police
X
X
X
X
Property Management
X
X
X
X
Public Events
X
Transportation and Public Works
X
X
X
Water
X
X
X
X
Annual Audit Plan Fiscal Year 2024 Page 11 of 14
FY 2024 Annual Audit Plan Schedule of Activities Tentative Calendar*
Count
Engagement /Activity Name
m
tD w'
3
Internal Audit
Resource -
Assignment
Scheduled Timeline
a
.-, �
< 00
n c
d
Q1
o m
QZ Q3UICO
n`�
m
m �
d�
1
Audit Quality Control
2024-1
Asst. City
Auditor
250
2
City Hall Relocation
2024-2
Mike
700
-
3
City Owned Vehicles
2024-3
Sam
600
4
Construction - (Property Management)
2024-4
William
600
5
Construction - (Transportation and
Public Works)
2024-5
William
600
6
Crime Control Prevention District
2024-6
Lisa
600
7
Data Analysis
2024-7
Regina
Soo
8
Development Services
2024-8
Sr. Auditor - 1
700
9
Information Security
2024-9
IT Auditor
Soo
10
Library Programs and Services
- 2024-10
Faith
600
11
Management Action Plan Follow Ups
2024-11
All
540
12
Neighborhood Services - Affordable
Housing
202412
Treauna
600
13
Revenue Estimates
2024-13
Regina
600
14
Social Media
2024-14
Auditor
600
15
Special Requests
2024-15
All
1,903
16
Talent Management Lifecycle
2024-16
Sam
-
-
700
17
Building Inspections/Re-Inspections
2024-2023-29
Treauna
300
18
City Vehicle Accident Prevention
2024-2023-2
Sam
310
19
Construction (Transportation and Public
Works)
2023-2022-4
William
40
20
Construction (Water)
2024-2023-5
William
600
21
Delinquent Accounts Collection
2024-2023-6
Faith
300
22
Department Level Grants Management
2024-2023-7
Sr. Auditor -1
100
23
Expending of Transportation Fees
2024-2023-20
Mike
600
24
Inventory Controls
2024-2023-8
Mike
260
25
Operational Resilience
2024-2023-9
Lisa
600
26
Ransomeware Preparedness
2o24-2o23-10
Treauna
_-- -
-- -- --
-
600
27
Revenue Estimates
2027-2023-11
Lisa
I
200
28
Tree Mitigation Fund
2024-2023-13
Faith
600
29
Utility Franchise Fees
2024-2023-14
Lisa
120
30
Vendor Management Controls
2024-2023-15
Sr. Auditor - 1
600
Total
16,123
Annual Audit Plan Fiscal Year 2024
Page 12 of 14
*May be subject to change depending on reprioritization and staff availability
Staffing and Resource Priorities in FY2024
• Finalize recruitment of three remaining vacant positions at beginning of fiscal year:
(i) Senior Auditor, (ii) Auditor, (iii) I.T. Auditor
• Completing Annual Audit Plan engagements by end of FY2024:
-Operational Target: 75-84% Completion Rate
-Performance Target: 85-89% Completion Rate
-Aspirational Target: 90%+ Completion Rate
• Administer department operational to within or below financial budget assigned
• Enhance effectiveness of working relationships with key stakeholders through expanded
communication and audit process transparency
• Implement AuditBoard workpapers software
• Develop a prototype internal controls training curriculum available to city staff upon request
• Strengthen staff competencies through 40 hours of continuing professional education in one or
more of the following areas:
- Systems Thinking (or Thinking in Systems),
- Organizational Governance, Risk Assessment and Compliance Management
- I.T. Administration and Operations,
- Other closely related topic(s)
Annual Audit Plan Fiscal Year 2024 Page 13 of 14
FORTWORTR�
Prepared by:
City of Fort Worth
Department of Internal Audit
200 Texas Street
Fort Worth, Texas 76102
Phone: 817-392-6158
Fax: 817-392-6133
www.for tworthtexas. aov / internalaudit
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I A •
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Let Us Help You
Annual Audit Plan Fiscal Year 2024 Page 14 of 14