Special Audit of the Accounts of Four Former City Council Members 1

Transcription

1 Memrandum CITY OF DALLAS (Reprt N. A18-005) DATE: January 26, 2018 TO: Hnrable Mayr and Members f the City Cuncil SUBJECT: 1 The Office f the City Auditr (Office) cmpleted the Special Audit f the Accunts f Fur Frmer City Cuncil Members (Special Audit) regarding the frmer City f Dallas (City) Cuncil Members whse terms expired n June 19, This Special Audit verified whether the City and / r frmer City Cuncil Members Mnica R. Alnz, Carlyn King Arnld, Erik Wilsn, and Tiffinni A. Yung prperly: Cntrlled and accunted fr any City assets assigned t and / r purchased with City funds by the frmer City Cuncil Members Remved the frmer City Cuncil Members as authrized agents f the City Special Audit Upn the death, resignatin, remval, r expiratin f the term f any fficer f the city, ther than the city auditr, the city auditr shall cause an audit and investigatin f the accunts f such fficer t be made and shall reprt t the city manager and the Cuncil. If, as a result f any such audit, an fficer is fund t be indebted t the city, the city auditr, r ther persn making such audit, shall immediately give ntice f such indebtedness t the Cuncil, the city manager, and the city attrney, and the city attrney shall, as directed by the city Cuncil, prceed t cllect such indebtedness. Surce: City Charter Chapter IX, Sectin 4 Ensured the frmer City Cuncil Members did nt have any utstanding debts wed t the City In additin, we evaluated the adequacy f emplyee prcessing cntrls related t the terminatin f the frmer City fficials. 1 This audit was cnducted under the authrity f the City Charter, Chapter IX, Sectins 3 and 4 and in accrdance with the Fiscal Year 2017 Audit Plan apprved by the Dallas City Cuncil. The audit bjectives are in the bullets and statement listed abve. The audit scpe included Fiscal Year (FY) 2016 and FY 2017; hwever, certain ther matters, prcedures, and transactins utside that perid were reviewed t understand and verify infrmatin during the audit perid. This perfrmance audit was cnducted in accrdance with generally accepted gvernment auditing standards. Thse standards require that we plan and perfrm the audit t btain sufficient, apprpriate evidence t prvide a reasnable basis fr ur findings and cnclusins based n ur audit bjectives. We believe that the evidence btained prvides a reasnable basis fr ur findings and cnclusins based n ur audit bjectives. T achieve ur bjectives, we interviewed Mayr and City Cuncil staff and perfrmed additinal audit prcedures t verify: (1) items assigned t and / r purchased with City funds, were prperly cntrlled and accunted fr; (2) the frmer City Cuncil Members infrmatin technlgy system and City building access were revked; and, (3) final payments t the frmer City Cuncil Members were accurate and that n debts were wed.

2 Hnrable Mayr and Members f the City Cuncil January 26, 2018 Page 2 f 2 The Office fund that the City cntinues t have difficulties cnsistently fllwing apprpriate prcedures t meet these bjectives. As a result, certain City plicies and prcedures were nt always fllwed, an utstanding debt was wed t the City, and cmpliance exceptins reprted in prir Special Audits still exist (see Attachment I). Nte: The utstanding debt wed t the City was subsequently paid as f January 16, This Special Audit als determined nine f eleven recmmendatins included in the Special Audit f the Accunts f Six Frmer City Cuncil Members, Reprt Number A16-005, issued January 22, 2016, were implemented. We recmmend the City Manager imprves cmpliance with City plicies and prcedures by implementing the recmmendatins shwn in Attachment I f this reprt. Please see Attachment II fr Management s Respnse. We appreciate the cperatin we received frm City management during the cnduct f this audit. If yu have any questins r need additinal infrmatin, please cntact me at r Carl Smith, First Assistant City Auditr, at Sincerely, Craig D. Kintn City Auditr Attachments C: T.C. Bradnax, City Manager Kimberly Bizr Tlbert, Chief f Staff t the City Manager Larry E. Cast, City Attrney Bilierae Jhnsn, Interim City Secretary M. Elizabeth Reich, Chief Financial Officer Mlly Carrll, Directr Department f Human Resurces William Finch, Directr Department f Cmmunicatin and Infrmatin Services Michael Frsch, Directr Office f Prcurement Services Terry Lwery, Interim Directr Department f Dallas Water Utilities Edward Sctt, City Cntrller Errick Thmpsn, P.E., Directr Department f Equipment and Building Services Carrie Rgers Prysck, Managing Directr Mayr and City Cuncil Office

3 Attachment I The infrmatin belw shws the specific cmpliance requirements evaluated by the Office f the City Auditr (Office), a summary f the cmpliance exceptins, whether the same exceptin was nted in a prir Special Audit, and the Office s recmmendatins. Evaluated Evaluatin Results Prir Special Audit Exceptin Recmmendatin 1. Verified the fur frmer City Cuncil Members cmplied with the City f Dallas (City) plicies and prcedures related t the ff-barding prcess fr an individual leaving City emplyment. 2. Verified the City and / r the fur frmer City Cuncil Members cntrlled and accunted fr any City assets assigned t and / r purchased with City funds. 1

4 Evaluated Evaluatin Results Prir Special Audit Exceptin Recmmendatin 3. Verified the City and / r the fur frmer City Cuncil Members cmplied with Administrative Directive 4-15 Purchasing Card Plicy and Prcedures (AD 4-15) and the City s plicy and prcedures related t use f Cityfunds. Cmpliance exceptins nted The fur frmer City Cuncil Members staff used Purchasing Cards (P-Card) and Internal Transfers t purchase grup admissin tickets, skate party packages, and meals withut apprpriate dcumentatin t shw: (1) the purchases were fr City-spnsred City Cuncil events; (2) the business purpse fr the events; (3) wh received the tickets and meals; and, (4) the date f each event. In additin, ne frmer City Cuncil member used a P-Card t purchase cmputer flash drives frm a lcal retail stre instead f using the City s Master Services Agreement (price agreement) as required by AD As a result, the City might have missed the advantages f discunts thrugh the price agreement. Withut supprting dcumentatin fr the P-Card purchases and Internal Transfers, the auditr culd nt validate the purchases were apprpriate. Specifically, the P-Cards and Internal Transfers were used by the fllwing frmer City Cuncil member s staff t purchase: Carlyn King Arnld s staff Yes I. We recmmend the City Manager ensures the Mayr and City Cuncil (MCC) staff cnsistently fllw City Cde, Vl. 1, Chapter 15A, Article I-b City-Funded Officehlder Accunts, (Effective July 1, 2017) t ensure that city-funded fficehlder accunts are nt used as a gift r transfer f public funds t individuals r entities. II. We recmmend the City Manager ensures the MCC staff cnsistently fllw AD Ninety grup rate tickets t the State Fair f Texas in the amunt f $990 An unknwn quantity f tickets t the UniverSul Circus in the amunt f $470 2

5 Mnica R. Alnz s staff Meals frm Crner Bakery in the amunt f $849 Tw hundred seventy admissin tickets t Bahama Beach Waterpark in the amunt f $2,430 Ceremnial gifts frm the Wrld Affairs Cuncil DFW in the amunt f $ Meals frm Pll Regi in the amunt f $521 Tw cmputer flash drives frm a lcal retail stre in the amunt f $75.98 (Nte: Frmer City Cuncil Member Mnica R. Alnz, reimbursed the City fr the flash drives n Octber 18, 2017) Tiffinni A. Yung s staff Three skate party packages t the Suthern Skates Rller Rink in the amunt f $2,070 One hundred frty-tw grup rate tickets t the Dallas Z in the amunt f $1,260 Ninety grup admissin tickets t the Bahama Beach Waterpark in the amunt f $810 One hundred frty grup rate tickets t the Children s Aquarium at Fair Park in the amunt f $700 Erik Wilsn s staff Meals frm Alnti Catering in the amunt f $

6 Evaluated Evaluatin Results Prir Special Audit Exceptin Recmmendatin One hundred eighty meals frm Sulman s Bar-B-Que in the amunt f $1, Tw hundred fifty grup admissin tickets t the Bahama Beach Waterpark in the amunt f $2, Verified the City cmplied with the City s AD 6-01, Cntrl f City Prperty, and with the Office f Prcurement Services (OPS), frmerly knwn as the Department f Business Develpment and Prcurement Services (BDPS), prcedure BDPS-PRO Verified the fur frmer City Cuncil Members did nt have any utstanding debts wed t the City. Cmpliance exceptin nted Upn departing frm service n June 19, 2017, frmer City Cuncil Member Tiffinni A. Yung had a past due parking ticket. The parking ticket was issued n September 12, As a result, the frmer City Cuncil Member tk ffice and left ffice indebted t the City fr $ (Nte: The utstanding debt wed t the City was subsequently paid as f January 16, 2018) City Charter Chapter IX, Sectin 4 states: If, as a result f any such audit, an fficer is fund t be indebted t the city, the city auditr, r ther persn making such audit, shall immediately give ntice f such indebtedness t the Cuncil, the city manager, and the city attrney and the city attrney shall, as directed by the city cuncil, prceed t cllect such indebtedness. Yes III. We recmmend the City Manager cntinues t identify and frmally infrm City Cuncil Members prir t their departure f any indebtedness t the City. 4

7 Evaluated Evaluatin Results Prir Special Audit Exceptin Recmmendatin 6. Verified the fur frmer City Cuncil Members cmplied with the City Charter requirement t attend n less than 90 percent f City Cuncil Cmmittee and City Cuncil Meetings. 7. Verified the fur frmer City Cuncil Members cmplied with AD 2-51, Recrds Management. 8. Verified timely terminatin, accurate cmpensatin and final payrll payment was cmpleted. 9. Verified the return f City issued Identificatin Badges (ID) and Parking Decals as required by AD 2-04, Identificatin and Access Badge and Restricted Areas Plicy. 10. Verified the deactivatin f access cdes t all Infrmatin Systems. 11. Verified MCC s cmpliance with AD 4-09, Internal Cntrl. N exceptins nted N Nt Applicable N exceptins nted N Nt Applicable N exceptins nted N Nt Applicable 5

8 Management s Respnse Attachment II 6

9 7