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Home My WebLink About082311 ANNUAL REPORT CITY AUDITORANNUAL REPORT Office of the City Auditor Our Mission: Promoting Accountability and Integrity in City Operations. FISCAL YEAR 2011FISCAL YEAR 2011 Objective As required by City Code Article XXVIII Section 2-477: “The city auditor shall submit an annual report to council within forty-five (45) days after the fiscal year end indicating audits completed, major findings, and corrective actions taken.” 2 Organizational Independence City Auditor reports City Auditor reports directly to City Council directly to City Council through the Audit through the Audit CommitteeCommittee 2 members are City 2 members are City Terms are 3 years and Terms are 3 years and Council Members and non Council Members and non members may be members may be voting:voting: reappointed by City reappointed by City CouncilCouncil Jim Wood and John UhrinJim Wood and John Uhrin 3 are voting citizens appointed by City Council: 3 are voting citizens appointed by City Council: ••Stanwood Dickman, CPA, ChairpersonStanwood Dickman, CPA, Chairperson ••JoAnn Augone, CPAJoAnn Augone, CPA ••Dr. Douglass Ziegenfuss, CPADr. Douglass Ziegenfuss, CPA 3 Office of the City Auditor (0172) Organizational Chart (6 FTE ) City AuditorCity Auditor Lyndon RemiasLyndon Remias Executive Assistant IIExecutive Assistant II Jody ClarkJody Clark Deputy City AuditorDeputy City Auditor Deputy City AuditorDeputy City Auditor Chris FordChris Ford Gretchen HudomeGretchen Hudome Senior AuditorSenior AuditorSenior AuditorSenior Auditor Sharon HayesSharon HayesTim Bell Tim Bell 4 How we Measure Up Lowest Lowest Per Capita: We Per Capita: We staffing staffing 1 auditor 1 auditor havehave 96% is 96% is Budget: Budget: for every for every levels levels for our for our $$601,766601,76686,715 86,715 compared to compared to 6 FTEs6 FTEs citizens citizens of of other other Virginia Beach Virginia Beach localitieslocalities 5 Our Mission: Promoting Accountability and Integrity in City Operations In FY 11 completed nine audits Over the last 3 years we have completed over 30 various audits resulting in improved operational efficiency and effectiveness and enhanced internal controls Audits resulted in cost savings, recoveries, and avoidance $1.9M Managed the City’s annual external audit contract with Cherry , Bekaert & Holland, L.L.P. 6 Our Mission: Promoting Accountability and Integrity in City Operations Served as a liaison for federal and state auditors when City programs are audited Advised departments on various issues and questions Worked closely with the Audit Committee Established an effective working relationship with the MLT and Department Directors 7 Our Mission: Promoting Accountability and Integrity in City Operations Through audit recommendations have helped to improve operations and enhance internal controls Established an annual audit follow-up recommendations Maintained an effective Fraud, Waste and Abuse hotline to help investigate, prevent and detect fraud 8 Example of prior recommendations leading to operational changes Designation of VB 9Designation of VB 9--11--1 as a public safety activity and making 1 as a public safety activity and making the communication functions within the ECCS an independent the communication functions within the ECCS an independent City department reporting directly to the City Manager.City department reporting directly to the City Manager. Immediate transfer of the administration of the Backflow Immediate transfer of the administration of the Backflow Prevention Cross Connection Control program from Permits and Prevention Cross Connection Control program from Permits and Inspections to Public Utilities.Inspections to Public Utilities. Improvement to the access of Human Services client Improvement to the access of Human Services client informationinformation Enhancement to collection of oceanfront parking meter revenueEnhancement to collection of oceanfront parking meter revenue Improvement to city credit card internal controlsImprovement to city credit card internal controls Corrected the funding for Sandbridge Special Services District 9 FY11 Audits ••Examined Enoch Baptist Church’s financial Examined Enoch Baptist Church’s financial Western Bayside expenditures related to Western Bayside expenditures related to Western Bayside Area grant awarded to Enoch Baptist Church Area grant awarded to Enoch Baptist Church Area Grant for the summer camp program serving for the summer camp program serving Bayside area youth.Bayside area youth. Oceanfront ••Ensured Virginia Beach Lifeguard Services Ensured Virginia Beach Lifeguard Services Lifeguard are in compliance with terms in Lifeguard are in compliance with terms in Lifeguard Services Contract.Services Contract. Services Stumpy Lake Golf ••Verified compliance with the lease between Verified compliance with the lease between Course Lease the City of Virginia Beach and Stumpy Lake the City of Virginia Beach and Stumpy Lake Golf Course.Golf Course. Compliance 10 FY11 Audits ••Verified that the City’s contract payments for Verified that the City’s contract payments for CIP Project- the design & construction phases of the the design & construction phases of the Witchduck Phase I roadway project are being Witchduck Phase I roadway project are being Witchduck made in compliance with the contract terms, made in compliance with the contract terms, federal & state revenue is being properly federal & state revenue is being properly Phase I accounted for and that the project is accounted for and that the project is complying with all ARRA reporting complying with all ARRA reporting requirements. requirements. Striving for ••Assisted the committee responsible for Assisted the committee responsible for gathering, complying and editing the gathering, complying and editing the Excellence departmental submissions fro the widelydepartmental submissions fro the widely-- distributed Striving for Excellence report by distributed Striving for Excellence report by Report reviewing the submissions for fiscal reviewing the submissions for fiscal reasonableness. reasonableness. 11 FY11 Audits American ••Conducted an examination of the City’s Conducted an examination of the City’s ARRA expenditures for supporting ARRA expenditures for supporting Recovery documentation, applicability of the documentation, applicability of the Reinvestment expenditure to the purposes of the ARRA expenditure to the purposes of the ARRA grant and agreement of expenditure grant and agreement of expenditure Act (ARRA) amounts with InSITE.amounts with InSITE. ••Determined whether Human Services Determined whether Human Services Dept. of Human employee access and use of information employee access and use of information through VA Dept. of Social Services system through VA Dept. of Social Services system Services: Access (SPIDeR) was reasonable and in (SPIDeR) was reasonable and in to Information compliance with guidelines with regards to compliance with guidelines with regards to access of client information. Focus was on access of client information. Focus was on Systems Part 2 Financial Assistance and Adult and Family Financial Assistance and Adult and Family Services divisions. Services divisions. 12 FY11 Audits Police ••Reviewed cash handling processes in the Reviewed cash handling processes in the Property and Police Property and Evidence Unit to Police Property and Evidence Unit to Evidence Unit ensure cash seized/found was ensure cash seized/found was appropriately recorded and inventoried. appropriately recorded and inventoried. Cash Handling City-wide ••Determined if the City was using and Determined if the City was using and managing overtime when operationally managing overtime when operationally Overtime necessary. necessary. 13 Maximizing Audit Resources Outside auditing firms work on a contingency Outside auditing firms work on a contingency basis at no cost to the City.basis at no cost to the City. Continued to Continued to BC Compliance BC Compliance was awarded a was awarded a utilize utilize Healthcare Healthcare contract to do an audit of the City’s contract to do an audit of the City’s HorizonsHorizons property leases.property leases. We had 2 volunteers and an intern that assisted We had 2 volunteers and an intern that assisted in administrative tasks and support for audits. in administrative tasks and support for audits. They are an invaluable resource which helped increase our They are an invaluable resource which helped increase our manpower and productivity. manpower and productivity. 14 Preventing, Detecting and Reporting Fraud In FY11, we received In FY11, we received 3636allegations involving theft, misuse of city allegations involving theft, misuse of city resources, intentional and unintentional waste and abuse of resources, intentional and unintentional waste and abuse of employees’ position. employees’ position. We completed We completed 2424investigations and investigations and 1111were substantiated as were substantiated as fraud, waste or abuse. fraud, waste or abuse. Some investigations are onSome investigations are on--going or have been referred to an going or have been referred to an outside agency.outside agency. 15 Integrity Connection To date, 4,606 members To date, 4,606 members have received training have received training conducted by 25 in conducted by 25 in house instructors.house instructors. Certified 2 new instructors Certified 2 new instructors 16 Promoting Accountability AD 1.16 “Fraud, Waste AD 1.16 “Fraud, Waste From results of evidence From results of evidence oo recommend corrective recommend corrective and Abuse and Abuse action, including but not action, including but not Prevention and Prevention and limited to possible limited to possible Reporting” requires Reporting” requires criminal chargescriminal charges Advise management on Advise management on us to make us to make oo possible disciplinary possible disciplinary recommendations to recommendations to actionsactions promote promote accountabilityaccountability 17 Who Audits the Auditors? Office of the City Auditor was audited in Office of the City Auditor was audited in October 2010 for FY10. October 2010 for FY10. Review concluded that we were in full Review concluded that we were in full compliance with Government Auditing compliance with Government Auditing Standards.Standards. “Under the leadership of the City Auditor, “Under the leadership of the City Auditor, [Lyndon S. Remias], the staff members of the [Lyndon S. Remias], the staff members of the Office of the City Auditor have achieved an Office of the City Auditor have achieved an impressive level of competency in the impressive level of competency in the performance of the audits.”performance of the audits.” Our next peer review is scheduled for 2013.Our next peer review is scheduled for 2013. 18 Leadership IIA Tidewater Chapter President, Gretchen Hudome with Jody Clarkat the registration table during the 2010 IIA District Conference. 19 International Interest CityAuditor,LyndonRemias,metwithDr.YutakaSuzukifrom JapaninWashingtonD.C.todiscusscurrentALGAactivities, methodsforpeerreview,contentsofinternalauditsforthe Cityandmanyotherissues. Dr. Suzuki -Professor and head of the research section at the Aoyama Gakuin University Graduate School -Member of the Committee on Policy Evaluation under the Ministry of Internal Affairs and Communication -Chairman of the Task Force on Local Public Corporation Accounting Systems 20 Quality of Work Life Survey The scores of the Office of the City Auditor denote positive feedback and ratings that exceeded Citywide ratings in every category. 21 Questions / Comments 22