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HomeMy WebLinkAboutOrdinance 11677ORDINANCE NO AN ORDINANCE REVISING AND AMENDING SECTION 2-134 OF ARTICLE IV, DIVISION 3 "DEPARTMENT OF INTERNAL AUDIT" OF CHAPTER 2 "ADMINISTRATION" OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (1986), AS AMENDED, SPECIFYING THE ADMINISTRATION OF, AND ENUMERATING THE POWERS AND DUTIES OF THE DEPARTMENT OF INTERNAL AUDIT; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE Be it ordained by the City Council of the City of Fort Worth, Texas that SECTION 1 Section 2-134 of Division 3 "Department of Internal Audit" of Article IV "Departments" of Chapter 2 "Administration" of the Code of the City of Fort Worth, Texas (1986), as amended, is hereby revised and amended, and after said revision and amendment shall read as follows Sec 2-134 Administration, Powers and Duties of the Department of Internal Audit (A) Subject to the City Charter, City Council oversight of general and administrative matters pertaining to the department of Internal Audit may be delegated as appropriate The City Council or its delegatee may assign signature authority for routine administrative matters to the City Manager or his/her designee The department of Internal Audit shall be subject to the budgetary, personnel and general administrative regulations of the city as established by the City Manager The Internal Auditor may appeal an administrative determination of the City Manager to the City Council or its delegatee (B) The department of Internal Audit shall have the following duties and responsibilities (1) No less than thirty (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 or its delegatee for review and comment a The plan shall be based on P 2 1 Requests from City Council, City Manager's Office, and Department Heads, 2 A risk assessment of all City activities which shall be performed by the department of Internal Audit each year prior to the completion of the annual audit plan, 3 Suggestions from the department of Internal Audit staff based on their knowledge of City activities or observations made during the performance of other audits; and 4 Other relevant criteria agreed to by the City Council or its delegatee and the City Internal Auditor The annual audit plan shall include a block of unassigned hours (the number to be approved by City Council) which shall be used to perform special audits, investigations, and/or projects requested by City Council and/or City Manager b The annual audit plan may be amended during the year, following notification of the City Council and due provision for comment c If the City Internal Auditor determines there is serious concern regarding fraud, abuse, or illegality, or that the scope of an audit in progress should be expanded as the result of any findings, the City Internal Auditor is authorized to initiate spontaneously and conduct, or expand the scope of, an audit beyond that approved in the audit plan Any changes made under this provision shall be communicated to the City Council or its delegatee as soon as feasible, but not later than its next scheduled meeting (2) The department shall conduct the following types of audits, varying in scope as required, on an gngoing basis a FINANCIAL-RELATED AUDITS The department shall conduct financial-related audits of all City activities, designed to evaluate whether 1 the entity performing the activity is maintaining effective control over revenues, expenditures, assets and liabilities, and financial operations; p 3 2 the entity is properly accounting for resources, liabilities and operations; 3 the entity is using accounting methods and procedures which conform to established policies, practices, and guidelines; and/or 4 the official financial statements fairly present the financial results of operations and the financial position of the entity b COMPLIANCE AUDITS The department shall conduct compliance audits of all city activities, designed to evaluate whether 1 all activities are properly authorized, 2 all activities required by law or policy are being carried out; 3 the management system provides the capacity for adequate control of compliance with applicable laws and policies; and/or 4 operations are in accordance with procedures prescribed by applicable laws and policies c CONTRACTOR/VENDOR AUDITS The department shall conduct financial- related and compliance audits of contractors and vendors doing business with the city to determine whether materials furnished, work performed and/or prices charged are in accordance with the terms of the contracts involved d ELECTRONIC DATA PROCESSING AUDITS The department shall conduct audits of the electronic data processing activities of the city (3) The department shall conduct performance audits upon direction of the City Council, and such other special audits, investigations, and projects at the request of the City Council or the City Manager a PERFORMANCE AUDITS As directed to do so by the City Council, the department shall conduct performance audits, designed to determine 1 whether the audited entity is managing or utilizing its resources, including public funds, personnel, property, equipment and space in an economical and efficient manner; p 4 2 the causes of inefficiencies or uneconomical practices, such as problems or inadequacies in organizational structures, management information systems, internal or administrative procedures, purchasing policies and/or in allocation of personnel, resources and equipment; 3 whether the desired results are being achieved b SPECIAL AUDITS The department shall conduct special audits, investigations, and projects when requested to do so by the City Council or the City Manager, with the scope of same to be determined by the request (4) The department shall participate in the planning, design, development, implementation and operation of major computer systems in the City to evaluate whether a b c adequate controls are incorporated in the systems, thorough system testing is performed at appropriate stages, system documentation is complete and accurate; and/or d the needs of user entities are met (5) The department shall notify the City Council or its delegatee when audits in progress identify areas which may require the use of additional resources (City staff from other departments or outside consultants) to address serious operational problems (C) In the performance of its duties, the department of Internal Audit shall have access to all books and records of all departments, agencies and programs of the city and to all officers, agents or employees of the city (D) All city contracts and subcontracts shall contain a "right to audit" clause This clause shall provide that the city and the city internal auditor shall have access to and the right to examine all necessary books, papers, documents, records and personnel of parties who contract with the city or who subcontract under a city contract "Necessary books, papers, documents, records and personnel" are those which pertain to city contracts and subcontracts and are required to evaluate compliance with the terms of those contracts and subcontracts p 5 SECTION 2 This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed SECTION 3 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared void, ineffective or unconstitutional by the valid judgment or decree of any=~court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not effect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section SECTION 4 This ordinance shall take effect and be in full force and effect from and after its passage, and it is so .ordained P APPROVED AS TO FORM AND LEGALITY ,~ c9'~1 i y orney Date `3,~~ ~ RY ADOPTED ~'- o~C~ ' EFFECTIVE ~: ~~ `~~ City of Fort Worth, Texas Mayor and Council C'cn;~munication DATE 09/20/94 REFERENCE NUMBER G10815 LOG NAME 12AUDIT PAGE 1 of 1 SUBJECT ADOPTION OF AN ORDINANCE AMENDING SECTION 2-134 OF THE CITY CODE TO CLARIFY THE ADMINISTRATION, POWERS AND DUTIES OF THE DEPARTMENT OF INTERNAL AUDIT RECOMMENDATION It is recommended that the City Council adopt the attached ordinance amending section 2-134 of the City Code to clarify the administration, powers and duties of the Department of Internal Audit DISCUSSION In deliberations .at its August meeting this year, the Inter and Intragovernmental Affairs Committee of the, City Council requested staff to prepare a set of recommendations for the Committee's review with the object of more specifically describing the powers and duties of the Internal Audit Department and clarifying the mechanism for administrative oversight of the department Staff has prepared an amendment to that section of the City Code (2-134) concerned with such matters, which received consensus approval of the Committee at its September meetrng In brief, the amendment provides for Council delegation of administrative oversight of the department (in effect adopting the current practice of utilizing the appropriate Council Committee), and specifies the types of audits the department is charged with conducting on an ongoing basis, and those to be conducted upon request of the Council or the City Manager FISCAL INFORMATION Adoption of the ordinance should have no fiscal impact on the City CB r Subutitted for City Manger's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (td) Charles R. Boswell 8500 PP ~ V ED "RO Originating Department Head: ' j t ~/ [ CIT 1 dJQ~,J~,/~, Charles R. Boswell 8500 (from) ~ ~ ~ ~(1~ For Additional lufonuatiou Contact: mg ~ Hugh Davis 7630 +~6p'J~lLSB r_~t Printed on recycled paper