Four audit reports were issued in the first quarter of Fiscal Year (FY) 2018, including:

Transcription

1 Memrandum CITY OF DALLAS DATE: January 19, 2018 TO: SUBJECT: Hnrable Mayr and Members f the City Cuncil Office f the City Auditr Audit, Attestatin and Investigative Services Update: Fiscal Year 2018 Secnd Quarter The Audit, Attestatin and Investigative Services Update: Fiscal Year 2018 Secnd Quarter (Update) is presented t prvide current infrmatin abut the results and status f audit, attestatin, and investigative service prjects f the City f Dallas (City) Office f the City Auditr (Office). Fur audit reprts were issued in the first quarter f Fiscal Year (FY) 2018, including: Audit f Cnstructin-Related Prcurements Audit f MuniServices, LLC Cntract Related t the Verificatin f Sales / Use Tax Receipts and Assciated Fees Audit Fllw-Up f Line-f-Duty Death Reprt Recmmendatins Audit f Hmeless Respnse System Effectiveness The key pints frm these reprts are included in Sectin II f the Update. Sectin III f the Update includes infrmatin related t reprts issued as f January 19, 2018 fr the secnd quarter f FY The prject bjectives fr reprts scheduled t be released and fr prjects currently in prgress r expected t be started in the secnd quarter f FY 2018 are included in Sectins IV thrugh VI f the Update. Apprved Audit Plans allw the City Auditr t amend the plans, when deemed necessary, upn written ntificatin t the City Cuncil. Accrdingly, the Office is prviding ntificatin f the deletin f the Utilizatin f Bnd Funds audit included in the FY 2018 Audit Plan. In light f the recently annunced creatin f the City f Dallas Bnd Prgram Office and the assciated changes in the management and reprting f bnd funds, we have determined that this prject shuld be delayed. We will recnsider this audit in future prpsed audit plans after the changes have been fully implemented and a steady state f peratin is achieved. Dallas, the City that Wrks: Diverse, Vibrant, and Prgressive.

2 Hnrable Mayr and Members f the City Cuncil January 19, 2018 Page 2 f 2 Shuld yu have questins r if we can be f assistance, please cntact me at Sincerely, Craig D. Kintn City Auditr Attachment C: T.C. Bradnax, City Manager Larry Cast, City Attrney Bilierae Jhnsn, Interim City Secretary Dallas, the City that Wrks: Diverse, Vibrant, and Prgressive.

3 City f Dallas Office f the City Auditr Audit, Attestatin and Investigative Services Update Fiscal Year 2018 Secnd Quarter

4 Table f Cntents Sectin I: Sectin II: Sectin III: Sectin IV Sectin V: Sectin VI: Summary f Audit, Attestatin and Investigative Services Audit and Attestatin Services Reprts Issued Fiscal Year 2018 First Quarter Octber 1, 2017 t December 31, 2017 Audit and Attestatin Services Reprt Issued Fiscal Year 2018 Secnd Quarter t Date January 1, 2018 t January 19, 2018 Audit and Attestatin Services Anticipated Reprt Releases Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Audit and Attestatin Services Prjects in Prgress Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Audit and Attestatin Services Anticipated Prject Starts Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Page

5 SECTION I Summary f Audit, Attestatin and Investigative Services Audit Reprts that prvide bjective analysis t assist management and thse charged with gvernance and versight in using the infrmatin t imprve prgram perfrmance and peratins, reduce csts, facilitate decisin-making by parties with respnsibility t versee r initiate crrective actin, and cntribute t public accuntability Attestatin Reprts that cver a brad range f financial r nn-financial bjectives; results in an examinatin, a review, r an agreed-upn prcedures reprt n a subject matter r an assertin abut a subject matter that is the respnsibility f anther party Investigative Reprts prviding evaluatins and results f substantiated allegatins f fraud, waste and abuse Audit and Attestatin Services Reprts Issued Fiscal Year 2018 First Quarter Octber 1, 2017 t December 31, 2017 (See Sectin II fr Details) Audit f Cnstructin-Related Prcurements Audit f MuniServices, LLC Cntract Related t the Verificatin f Sales / Use Tax Receipts and Assciated Fees Audit Fllw-Up f Line-f-Duty Death Reprt Recmmendatins Audit f Hmeless Respnse System Effectiveness All audit and attestatin services are cnducted under authrity f the City Charter, Chapter IX, Sectin 3, and in accrdance with the Annual Audit Plan apprved by the City Cuncil. We cnduct ur wrk in accrdance with generally accepted gvernment auditing standards. Thse standards require that we plan and perfrm ur wrk t btain sufficient and apprpriate evidence t prvide a reasnable basis fr ur findings and cnclusins based n ur bjective(s). Fraud investigatins are cnducted in accrdance with Quality Standards fr Inspectin and Evaluatin issued by the Cuncil f the Inspectrs General n Integrity and Efficiency. 1

6 Audit and Attestatin Services Reprt Issued Fiscal Year 2018 Secnd Quarter t Date January 1, 2018 t January 19, 2018 (See Sectin III fr Details) Independent Auditr s Reprt n Applying d-upn Prcedures fr Bid #CIZ1677: Department f Trinity Watershed Management Strm Drainage Imprvements Mill Creek / Peaks Branch / State-Thmas Drainage Relief Tunnel Prcurement, $206,700,000 Audit and Attestatin Services Anticipated Reprt Releases Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 (See Sectin IV fr Details) Special Audit Fur Frmer City Cuncil Members Special Audit Frmer City Secretary Envirnmental Cmpliance Miscellaneus Permit Fee Revenues Prir Audit Recmmendatins Fllw-Up Fiscal Year 2016 Special Cllectins Operatins Business Partner Oversight Audit and Attestatin Services Prjects in Prgress Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 (See Sectin V fr Details) Cntinuity f Operatins Audit Fllw-Up Dallas Cnventin & Visitrs Bureau (VisitDallas) Off-Duty Emplyment Administratin Dallas Plice Department Prir Audit Recmmendatins Fllw-Up Fiscal Year 2018 Recrds Management System Surveillance Camera Oversight 2

7 Audit and Attestatin Services Prjects in Prgress Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 (See Sectin V fr Details) Water Quality and Safety, Testing, and Mnitring Franchise Fees Review thrugh Third-Party Vendr (Onging) Sales / Use Tax Cmpliance Review thrugh Third-Party Vendr (Onging) Audit and Attestatin Services Anticipated Prject Starts Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 (See Sectin VI fr Details) Ecnmic Develpment Prgrams and Incentives Management f the City s Surplus Real Prperties Open Recrds Request Prcess 3

8 SECTION II Audit and Attestatin Services Reprts Issued Fiscal Year 2017 First Quarter Octber 1, 2017 t December 31, 2017 Audit Services Audit f Cnstructin-Related Prcurements (Octber 20, 2017) The Department f Dallas Water Utilities (DWU), ne f six City f Dallas (City) departments with cnstructin prcurement authrity had well dcumented internal cntrls in place and supprting dcumentatin t demnstrate Administrative Directive 4-05, Cntracting Plicy (AD 4-05) was cnsistently fllwed. The AD 4-05 establishes City plicy fr: Cmplying with applicable State f Texas laws gverning cnstructin cntracting prcesses Ensuring fair cmpetitin fr City cntracts and that the City receives: (1) the mst qualified architectural, engineering, r land surveying services (prfessinal services) at a fair and reasnable price; and, (2) the lwest respnsible bid fr cnstructin prjects The DWU s internal cntrls prvided the City with reasnable assurance that cnstructin-related prcurements were cnducted in a unifrm, transparent, and equitable manner while reducing the risk f fraud, waste, r abuse. The City, hwever, des nt have sufficient internal cntrls, such as frmal, up-t-date departmental plicies and prcedures and adequate dcumentatin, t demnstrate that all departments cnsistently fllw AD 4-05 fr cnstructin-related prcurements. Withut apprpriate internal cntrls, including supprting dcumentatin, the City cannt be assured that cnstructin-related prcurements are cnducted in a unifrm, transparent, and equitable manner and the risk fr fraud, waste, r abuse is increased. 4

9 Audit Recmmendatin We recmmend the City Manager: Respnsible Department ment Status Implementatin Date Requires all departments invlved in cnstructin-related prcurements adpt unifrm internal cntrl best practices, such as thse used by DWU, t ensure cmpliance with State f Texas law and AD 4-05 Ensures the City departments authrized t cnduct cnstructinrelated prcurements have frmal (written, apprved, signed, and dated) plicies and prcedures Ensures the Directr f the Office f Prcurement Services (OPS) frmerly knwn as the Department f Business Develpment and Prcurement Services, develps frmal (written, apprved, signed, and dated) plicies and prcedures that describe OPS respnsibilities fr facilitating cnstructin-related prcurements CMO June 30, 2018 CMO June 30, 2018 CMO June 18,

10 Audit Recmmendatin Ensures City departments, authrized t cnduct cnstructin-related prcurements, and OPS implement the internal cntrls needed t ensure AD 4-05 is unifrmly fllwed by: Respnsible Department ment Status Implementatin Date Decreasing the cmplexity f AD 4-05 and / r clarifying the requirements by develping an implementatin guide. The result shuld specify: - Prfessinal services prcurement requirements, such as the prcess departments must use after the Request fr Qualificatins t select the mst highly qualified firm (i.e., Request fr Prpsals, negtiatins, etc.) - Screening and selectin cmmittee cmpsitin requirements t minimize ptential cnflicts f interest, including dcumentatin such as a signed cnflict f interest statement CMO June 30, Allwable exceptins t the prcurement prcess, such as when the mst highly qualified firm is nt selected Requiring departments t develp cnsistent plicies and prcedures Mnitring departments fr cnfrmity with AD 4-05 fr cnstructin-related prcurements Ensures City departments, in cllabratin with the City Attrney s Office, develp internal cntrls t ensure distributing the wrk practices are transparent, cnsistent, dcumented, and cmply with AD 4-05 Ensures plicies and prcedures are develped t require department Directrs t dcument their reasning fr selecting a specific firm when the: (1) selectin cmmittee scring and ranking prcess results in a tie; r, (2) the firm selected is nt the mst highly qualified firm recmmended by the selectin cmmittee CMO June 30, 2018 CMO June 30,

11 Audit f MuniServices, LLC Cntract Related t the Verificatin f Sales / Use Tax Receipts and Assciated Fees (Nvember 3, 2017) In Fiscal Year (FY) 2017, the Office f the City Auditr (Office) verified $814,270 in sales tax receipts cllectins that MuniServices, LLC (Cnsultant) identified as wed t the City f Dallas (City) frm businesses perating in the City. The Office als verified the accuracy f $241,244 in Cnsultant invices received fr the perid Octber 1, 2016 thrugh September 30, 2017 fr payment f the Cnsultant s percentage f the amunt cllected under the cntingent fee cntract arrangement with the City (Nte: The Cnsultant invices are nt paid until the Office verifies that the City has received the additinal sales / use taxes). N recmmendatins assciated with this reprt. Audit Fllw-Up f Line-f-Duty Death Reprt Recmmendatins (December 8, 2017) Fllwing a cndminium cmplex fire in May 2013 leading t the death f City f Dallas (City) Firefighter Stanley Wilsn, three separate investigatins were cnducted which resulted in 19 recmmendatins t the Department f Dallas Fire-Rescue (DFR). The implementatin f the recmmendatins prduced significant imprvements t DFR s: Departmental prcedures Training prgram Pst-incident analysis The sustainability f these imprvements depends, hwever, upn DFR s training prgram and DFR s ability t identify Officer, Member, and Cmmand Technician training needs, mnitr participatin, analyze the benefits, and adjust training accrdingly 7

12 An evaluatin f the DFR s training prgram, including a review f relevant DFR plicies and prcedures and three separate judgmental samples f training attendance recrds f Officers, Members, and Cmmand Technicians, shwed DFR can further: Imprve the DFR s capabilities fr mnitring training prgress, analyzing training needs, and assessing DFR s training catalg by: Implementing an autmated system and digitizing and cnslidating all training recrds t enable mre effective and efficient mnitring f training attendance and analysis f curse fferings Preparing and mnitring training reprts peridically t analyze DFR s prgress in meeting bth mandatry curses and annual hur requirements Surveying ther large fire departments t leverage slutins and best practices Incrprate shrt-term slutins, such as: (1) establishing perfrmance measurement gals fr mandatry curses; (2) cmmunicating training prgress with Members and their supervisrs; (3) ffering grup-basis Medic-CE.cm, LLC curses; and, (4) using light duty persnnel t perfrm internal reviews and inspectins f training recrds Dcument cmpletin f Cmmand Technician refresher training t demnstrate cmpliance with DFR s Manual f Prcedures and implementatin f DFR s internal recmmendatins Use cnsistent terminlgy fr strategic tactics in all DFR cmmunicatins, including the DFR Manual f Prcedures, training materials, the Incident Safety Officer checklist, After Actin Reprts, and all ther verbal and written cmmunicatins t prmte cnsistency during incidents Implement the State Fire Marshal s Office f the Texas Department f Insurance s (SFMO) recmmendatin t mnitr the firegrund tactical cmmunicatins channel, based n DFR s assessment f the risks, csts, and benefits assciated with this issue 8

13 Audit Recmmendatin Respnsible Department ment Status Implementatin Date We recmmend the DFR Fire Chief: Imprves DFR's capabilities fr mnitring training attendance as well as its assessment f the training curriculum ffered. DFR Crrective actin plan with implementatin dates by May 4, 2018 Enhances DFR's Manual f Prcedures t require dcumentatin f attendance at every training exercise fr all attendees, including instructrs, mderatrs, and trainees, t ensure cmpliance with bth DFR and SFMO training requirements. DFR N later than December 31, 2017 Revises the language used in all DFR's cmmunicatins, including the DFR Manual f Prcedures, training materials, Incident Safety Officer checklist, After Actin Reprts, and all ther ral and written cmmunicatins, t ensure that Members use cnsistent terminlgy t avid cnfusin during an incident. DFR April 6, 2018 Cntinues t cnsider implementing SFMO's recmmendatin t mnitr the firegrund tactical channel, based n DFR's assessment f the risks, csts, and benefits assciated with this issue. DFR Cntingent n funding being apprved. If apprved as part f the FY2019 budget, pssible implementatin in FY

14 Audit f Hmeless Respnse System Effectiveness (December 11, 2017) The City f Dallas (City) cannt tell hw well the hmeless respnse system is perfrming and needs t imprve: (1) versight f the Metr Dallas Hmeless Alliance (MDHA) and The Bridge; and, (2) hw the City evaluates, crdinates, and mnitrs hmeless services. The hmeless respnse system is the crdinated gvernment and cmmunity effrt t reslve, prevent, and end hmelessness in the area. Incmplete Hmeless Management Infrmatin System Limits Ability t Assess Effectiveness The Hmeless Management Infrmatin System (HMIS) that the area relies n t evaluate the effectiveness f hmeless resurces is incmplete, cvering nly 30 percent f the beds in 2016 dedicated t the hmeless, including hmeless emergency shelters and lngerterm husing. As a result, the City cannt fully evaluate hw the hmeless respnse system s resurces are cntributing t reducing hmelessness, and the area is receiving less mney in cmpetitive Federal grants, including a reductin f $1.1 millin frm tw years earlier. Inadequate Hmeless Management Infrmatin System Implementatin, Prcurement, and Oversight The MDHA s implementatin f a new HMIS frm a vendr withut prir HMIS experience faced multiple challenges, including delays, a lack f system capabilities fr hmeless emergency shelters, and technical difficulties. The new HMIS was purchased in a nncmpetitive prcess, which vilated Federal prcurement requirements and culd result in the lss f the HMIS Federal funding. During the implementatin perid, the City s versight f MDHA was inadequate. Ineffective Cntract Oversight f The Bridge Hmeless Assistance Center Delayed payment frm the City pushed The Bridge, the City s hmeless assistance center, t the brink f temprary clsure twice in 2017 due in part t challenges with the HMIS implementatin. The City s mnitring and versight f the cntract with The Bridge t perate a hmeless assistance center is inadequate t ensure effectiveness f services, cmpliance with cntract terms, and the financial viability f The Bridge. The Office f the City Auditr s risk evaluatin indicates The Bridge s financial viability warrants clser mnitring. The Bridge s reliance n gvernment fr 84 percent f its funding in Fiscal Year (FY) 2016 increased the risk The Bridge culd nt cntinue t serve the hmeless shuld the funding be delayed, reduced, r eliminated. 10

15 Insufficient Evaluatin and Mnitring f City Hmeless Services A review f the City s hmeless services determined: The City uses multiple City and United States Department f Husing and Urban Develpment (HUD) required plans; hwever, they are nt adequately aligned t: (1) allw fr clear decisin-making; (2) assess hmeless services perfrmance; and, (3) mnitr prgress in meeting key bjectives Fragmentatin exists in bth case management and cmpliance versight, and the mnitring f services is nt sufficient t ensure effectiveness The City is nt spending grant mney timely, returning a cmbined $531,105, r 9.7 percent, in unspent grant funds t the Federal gvernment fr FY 2015 and FY 2016 The City des nt have an adequate and timely system fr receiving and respnding t feedback frm hmeless services clients Plicies and prcedures d nt specifically ensure segregatin f duties fllwing a past fraud incident t prevent recurrence Audit Recmmendatin We recmmend the City Manager: Respnsible Department ment Status Implementatin Date Priritizes increasing the participatin in the HMIS by the methds identified thrugh the survey, including using data-driven slutins t end hmelessness and incentivizing HMIS participatin by prviding resurces, such as grant allcatins, sftware licenses, r ther assistance. CMO Octber 1, 2016 (in prgress) thrugh Secnd Quarter FY 2018 Wrks with the MDHA t imprve the planning, crdinatin, and implementatin f the HMIS by: (1) priritizing HMIS custmizatin t meet hmeless emergency shelters needs; (2) understanding current hmeless emergency shelter system capabilities; and, (3) ensuring effective stakehlder engagement as HMIS custmizatin cntinues. CMO January 24, 2018 (pending City Cuncil apprval) 11

16 Audit Recmmendatin Ensures apprpriate and effective versight f the MDHA, which may include wrking with MDHA and the City Attrney s Office, t: (1) increase the City s representatin n the MDHA Bard f Directrs; (2) imprve its cntract versight; and, (3) request increased reprting n MDHA perfrmance and initiatives. Respnsible Department CMO ment Status Implementatin Date 2 nd Quarter FY 2018 In crdinatin with the Chief f Cmmunity Services (), adpts a cmprehensive and chesive strategic review prcess that aligns with Citywide bjectives and clearly defines what cnstitutes success / prgress fr each key bjective f reducing hmelessness and increasing husing placement pprtunities. The City Manager shuld cnsider including the Gvernment Accuntability Office s seven criteria described in the textbx n page 28 when develping and implementing the strategic plan fr key bjectives CMO/ 2 nd Quarter FY 2018 Audit Recmmendatin We recmmend the Chief f Cmmunity Services: Respnsible Department ment Status Implementatin Date Prvides additinal versight t ensure MDHA is administering the lcal HMIS t meet all Federal prcurement requirements and has prcesses in place fr the retentin f dcuments. If additinal versight language is needed in the cntract with MDHA, we recmmend the Chief f Cmmunity Services wrks with the City Attrney's Office t revise the cntract. January 24, 2018 (pending City Cuncil apprval) Ensures The Bridge remains able t prvide services t the City s hmeless residents June 2017 (in prgress) thrugh December 13, 2017 (pending City Cuncil apprval) Implements prcedures t mre clsely mnitr the financial viability f The Bridge. December 13, 2017 (pending City Cuncil apprval) 12

17 Audit Recmmendatin Implements prcedures t ensure bth the City s and The Bridge's cmpliance with the management services cntract r wrk with the City Attrney's Office and The Bridge t align the cntract with agreed-upn perating and financial versight prcedures Respnsible Department ment Status Implementatin Date December 13, 2017 (pending City Cuncil apprval) Develps measurable perfrmance expectatins and requirements that hld The Bridge accuntable fr the delivery f effective and quality services, including identificatin f hw perfrmance will be evaluated, particularly against meaningful established perfrmance utcmes and expectatins December 13, 2017 (pending City Cuncil apprval) Strengthens payment prcessing prcedures t include dcumented financial review in relatin t The Bridge s perating budget and validatin and evaluatin f perfrmance data and perfrmance data adjustments fr cmpleteness and accuracy December 13, 2017 (pending City Cuncil apprval) Wrks with The Bridge t minimize the risk f lss f its bank funds abve FDIC limits. December 13, 2017 (pending City Cuncil apprval) Assesses crdinatin and fragmentatin between the City departments, divisins, and units prviding hmeless services t identify ways t imprve the effectiveness and efficiency f services. The assessment shuld include the City's use f staff casewrkers fr assisting clients transitins t permanent husing. Octber 1, 2017 (in prgress) Develps and implements a prcess t imprve crdinatin and cmmunicatin between departments and divisins prviding services related t hmelessness Octber 1, 2017 (in prgress) Ensures that perfrmance measures tracked in perfrmance reprts align with City pririties, such as fr reducing hmelessness and increasing husing placements 2 nd Quarter FY

18 Audit Recmmendatin Assesses the demand fr hmeless preventin resurces, including ESG hmeless preventin rental assistance funds, t ensure the funds are being used effectively t keep peple hused Respnsible Department ment Status Implementatin Date 2 nd Quarter FY 2018 Determines the cst f hmeless services acrss City gvernment 2 nd Quarter FY 2018 Assesses the effectiveness f the Gateway t Permanent Husing and Rapid Rehusing / My Residence prgrams and develps and implements prcesses t ensure CC grant funds are spent within the apprpriate grant perid. 2 nd Quarter FY 2018 Designs a feedback prcess that invlves receiving timely input frm clients as they are receiving services. This includes surveying clients abut satisfactin f services received; areas that can be imprved; and, making staff accuntable fr respnding t feedback and implementing suggested imprvements t services. January 25, 2018 Frmally adpts and dcuments plicies and prcedures t mitigate risks f fraud related t segregatin f duties and reviews plicies and prcedures t ensure prper dcumentatin f cntrls related t risk f fraud. 2 nd Quarter FY

19 SECTION III Audit and Attestatin Services Reprt Issued Fiscal Year 2018 Secnd Quarter t Date January 1, 2018 t January 19, 2018 Attestatin Services Independent Auditr s Reprt n Applying d-upn Prcedures fr Bid #CIZ1677: Department f Trinity Watershed Management Strm Drainage Imprvements Mill Creek / Peaks Branch / State-Thmas Drainage Relief Tunnel Prcurement, $206,700,000 Assist the Dallas City Cuncil and City management in evaluating the Office f Prcurement Services, (OPS), frmerly the Department f Business Develpment and Prcurement Services, and the Department f Trinity Watershed Management s (TWM) cmpliance with the requirements f Texas Lcal Gvernment Cde (TLGC) Chapter 252, Purchasing and Cntracting Authrity f Municipalities; Gvernment Cde, Chapter 2269, Cntracting and Delivery Prcedures fr Cnstructin Prjects; and, Administrative Directive (AD) 4-05: Cntracting Plicy. Exceptins nted and assciated City Management actins t address the exceptins: Exceptins were nted fr seven f 18 d-upn Prcedures related t areas such as dcumentatin f bid specificatin changes, cnflict-f-interest plicies and disclsure requirements, and the Trinity Watershed Management s (TWM) evaluatin f the lw bidder s experience, safety, and envirnmental recrd. After the Office f the City Auditr ntified City management, the TWM tk subsequent actins t address mst f the exceptins nted, as detailed in the reprt. The Office f the City Auditr als identified relevant infrmatin fr d-upn Prcedures 15 and 17 related t the lw bidder s: (1) subcntractr s safety recrd; and, (2) Minrity and Wmen Business Enterprises gal achievement. This infrmatin is included in Attachment I f the reprt as Knwledge f a Matter Outside the d-upn Prcedure. 15

20 SECTION IV Audit and Attestatin Services Anticipated Reprt Releases Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Audit Services Special Audit Fur Frmer City Cuncil Members Anticipated Reprt Date: January 2018 Prject Objective(s): Cnduct audits, in accrdance with Chapter IX, Sectin 4 f the City Charter, f fficers wh vacate their ffices due t death, resignatin, remval, r expiratin f term Special Audit Frmer City Secretary Anticipated Reprt Date: February 2018 Prject Objective(s): Cnduct audits, in accrdance with Chapter IX, Sectin 4 f the City Charter, f fficers wh vacate their ffices due t death, resignatin, remval, r expiratin f term Envirnmental Cmpliance Anticipated Reprt Date: March 2018 Prject Objective(s): T determine if the City is in cmpliance with Envirnmental Prtectin Agency regulatins which may include the Clean Water Act, and / r ther Federal / State envirnmental requirements regarding handling / dispsing f hazardus waste Miscellaneus Permit Fee Revenues Anticipated Reprt Date: March 2018 Prject Objective(s): T determine whether cntrls are adequate / effective t ensure permit fee revenues are cllected frm business entities required t btain a permit t perate a business in the City 16

21 Prir Audit Recmmendatins Fllw-Up Fiscal Year 2016 Anticipated Reprt Date: March 2018 Prject Objective(s): T evaluate management s implementatin f prir audit reprt recmmendatins Special Cllectins Operatins Anticipated Reprt Date: March 2018 Prject Objective(s): T determine whether internal cntrls are adequate t ensure cash receipts are timely depsited and accunted fr prperly 17

22 SECTION V Audit and Attestatin Services Prjects in Prgress Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Audit Services Business Partner Oversight Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): Evaluate the financial, peratinal, and ther risks fr majr business partners perating City-wned facilities under the versight f the Department f Park and Recreatin and the City s versight and mnitring cntrl (may include the Dallas Z, the Dallas Arbretum, and / r Bahama Beach; will exclude Fair Park facilities which were audited in Fiscal Year 2016) Cntinuity f Operatins Audit Fllw-Up Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T evaluate management s implementatin f recmmendatins included in Audit f the Design f the City f Dallas Pandemic Influenza Cntinuity f Operatins Basic Plan Reprt, issued September 13, 2013 Dallas Cnventin & Visitrs Bureau (VisitDallas) Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T evaluate the effectiveness f services prvided by the Dallas Cnventin & Visitrs Bureau (VisitDallas), which may include: (1) assessing the reliability and reprting f perfrmance measures; and, (2) determining whether Turism Public Imprvement District Incentive funds were used prperly 18

23 Off-Duty Emplyment Administratin Dallas Plice Department Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T evaluate (1) the Dallas Plice Department s (DPD) internal cntrls ver ff-duty emplyment; and, (2) whether DPD fficers adhere t DPD plicies related t ff-duty emplyment Prir Audit Recmmendatins Fllw-Up Fiscal Year 2018 Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T evaluate management s implementatin f prir audit reprt recmmendatins Recrds Management System Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T determine whether the City s gals fr implementing the Recrds Management System achieved anticipated results (specifically cst, prject schedule, functins implemented, and shadw systems eliminated) and includes the apprpriate cntrls Surveillance Camera Oversight Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T determine whether the City adequately / effectively manages and maintains its netwrk f surveillance cameras Water Quality and Safety, Testing, and Mnitring Anticipated Reprt Date: Third Quarter Fiscal Year 2018 Prject Objective(s): T determine whether the Department f Dallas Water Utilities has: (1) adequate plicies and prcedures in place fr nging accuracy testing and mnitring f City water quality and safety; and, (2) effective means f cmmunicating with City residents regular testing and mnitring results 19

24 Franchise Fees Review thrugh Third-Party Vendr (Onging) Anticipated Reprt Date: Peridic, as warranted Prject Objective(s): T verify that franchise fees (which may include utilities, cable, and telephne) identified by a third-party vendr are received by the City Sales / Use Tax Cmpliance Review thrugh Third-Party Vendr (Onging) Anticipated Reprt Date: Peridic, as warranted Prject Objective(s): T identify and cllect new and misreprted tax revenue identified thrugh a third-party vendr which will cnduct Sales and Use Tax Cmpliance Review and Recvery Services 20

25 SECTION VI Audit and Attestatin Services Anticipated Prject Starts Fiscal Year 2018 Secnd Quarter January 1, 2018 t March 31, 2018 Audit Services Ecnmic Develpment Prgrams and Incentives Prject Objective(s): T evaluate whether selected ecnmic develpment prgrams are prducing expected results and whether mnitring cntrls are effective Management f the City s Surplus Real Prperties Prject Objective(s): T evaluate the City s prcesses fr identifying, managing, and dispsing r surplus real prperty Open Recrds Request Prcess Prject Objective(s): T evaluate the effectiveness f the PIO s cmpliance with State law and whether there are cst-saving pprtunities 21