Management Recommendations to be Implemented Completion Date Comments Next Review Date done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 Implemented prior to completion of Audit done To be included in SOP 10/1/2020 Implemented prior to completion of Audit done To be included in SOP 10/1/2020 Implemented prior to completion of Audit done To be included in SOP 10/1/2020 Implemented prior to completion of Audit done To be included in SOP 10/1/2020 Implemented prior to completion of Audit done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 done To be included in SOP 10/1/2020 6/1/19 Policies and proceedures include, cash handling, purchasing policy, disciple policy, CWA contracts, personnel policy, internal SOP's to be included in SOP 6/1/2020 6/1/19 To be included in SOP 6/1/2020 6/1/19 To be included in SOP 6/1/2020 6/1/19 To be included in SOP 6/1/2020 Projected Completion Date Action Steps Taken before completion of Audit (see page 52 & 53 of audit) Structure future special events to limit the risk exposure and loss for the city. This may be done by having partners share more risk as well as 1 rewards, using contract vendors for some services, renting the park out with no city risk, etc. 2 Re-organized the department to give direct oversight of the Special Events Section to the Assistant Director of Parks and Recreation. Added a controller position to the department who will assist in providing internal controls, and oversight to special events, as well as all other 3 department sites that generate revenue. Together with our Sr. Accountant the Department is stronger and will provide improved oversight and compliance to all financial transactions in the department. 4 Stopped the practice of preprinting tickets to handle large crowds and will only print a ticket after payment is received. Ticket processing through our vendor, E-TIX, will be revised to be more user friendly and divide revenue into specific events rather than time 5 period. Also, we are negotiating with E-TIX to send their own personnel to large events to oversee ticketing platforms on the day of event and provide a post event settlement prior to their departure. The new financial accounting system (Munis) will track both revenue and expenditures for each separate event, thus allowing management to 6 provide updated and accurate data for audit purposes. Pursuing a way to tie personnel costs to the Munis system so that a complete picture can be found in one place. A process has been established whereby all contracts and agreements between the city and partners are first drafted by event staff and partner, reviewed and approved by Assistant Director and Controller and then, sent to Director or Deputy Director for approval, who will then 7 send to legal for their final review and approval. Following legal approval, negotiations with partner will occur, and if agreement can be reached then and only then will it be taken to City Council for final approval. 8 Comp tickets will be carefully distributed and accounted for but not reported a cash sales. 9 Adopted a standard reporting framework for settlement and reconciliation sheet as recommended by the City Auditor. 10 Contracting out merchandising and possibly beverage sales to a third-party vendor rather than using city staff. All food vendors must submit payment for rental spaces prior to event; on preapproved template, based on various factors including event 11 hours, projected crowd size, size of space, etc. Collect backup information for all expenses and revenue as they occur so that reconciliation can be made in a timely manner once the event is 12 completed. 13 Collect and pay all invoices within 30 days and provide a final settlement within 60 days of the event. 14 Assign and Accountant or City Senior Accountant to attend each event to act as Comptroller instead of recreation staff that has limited training. Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit Implemented prior to completion of Audit City-wide management system changes implemented/being implemented by city management Finance Department reworked the Cash Collection Policy which was approved by the City Manager on 11/13/2018. Intent was to clarify and 1 strengthen cash handling procedures and internal controls. 2 Finance Department is currently working with Legal to revamp the city Purchasing Ordinance and update purchasing policies. Finance Department is proposing a new position, "Financial Compliance Analyst", to proactively address departmental and field offices' 3 compliance with laws, regulations, City-wide policies and procedures, and departmental policies and procedures, as well as any observed internal control deficiencies. It is expected that this would supplement and enhance Internal Audit's efforts to ensure compliance. 11/13/2018 11/13/818 In processs In processs Recommendations in Audit under "Corrective Action Plans" 1 Management will continue to provide in-house training for all employees regarding all relevant City Policy and Procedures. 2 All future agreements and contracts as well as modifications to agreements with partners will be reviewed, approved, and signed off by the City’s Legal Department prior to seeking approval from the City Council. 3 Will adhere to current City-wide legal review processes now in place, as well as any changes to city wide policies involving legal review. 4 Management will continue to encourage and require those involved in the special events process including members of the special events committee to communicate regularly with each other pre, post, and during events. Annually In Place CurrentlyContinuous In Place CurrentlyContinuous In Place CurrentlyContinuous Management Recommendations to be Implemented Management will adopt the City Auditor’s recommendations as found in the report as written and will implement them immediately. They include the following: 5 -Discontinue preprinting tickets for distribution to ticket sales booths and other areas/persons. -Complete all required and established City forms and receive payment before reserving and ordering a food booth. -Promptly process and deposit all monies received. 6 All Special events will be reconciled by staff within 30 days after the event, with review and approval to occur within 30 days thereafter. 7 Internal records and support for all contracts, expenses, and revenue generated from events will be stored and kept in the Administrative Office and the responsibility of the Parks and Recreation Controller. 8 Agreements and binding documents will be submitted to legal for their review and approval. 9 Management will continue to educate and provide information to all staff members relative to adherence to established City Code of Ordinances and City Policies and procedures through staff meetings and training sessions which are held on a monthly basis. Projected Completion Date Completion Date Comments Next Review Date In Place CurrentlyContinuous 6/1/19 To be included in SOP 10/1/2020 6/1/19 To be included in SOP 6/1/19 Included in SOP files being kept in share directory per event 6/1/2020 6/1/19 To be included in SOP 6/1/2020 Monthly 6/1/19 Same as item one completed - discussed at staff meetings Monthly In Place CurrentlyContinuous In Place CurrentlyContinuous In Place CurrentlyContinuous Management will rotate duties and responsibilities according to position titles in order to cross train employees and make certain that no one employee has authority for all special event functions. 11 Management will perform analysis and study of segregation of duties. 12 Management will develop a clear division of responsibility and authority including appropriate oversight for all employees Start of each FY 9/6/19 To be included in SOP 9/1/2020 Start of each FY August 30, 2019 9/6/19 8/31/19 To be included in SOP To be included in SOP 9/1/2020 9/1/2020 13 While informal authority and responsibility limits are in place for agreements, a more formal SOP will be developed and adhered to. August 31, 2019 8/31/19 To be included in SOP 10/1/2020 August 31, 2019 8/31/19 To be included in SOP 10/1/2020 August 31, 2019 8/31/19 To be included in SOP 10/1/2020 November 1, 2019 December 31, 2019 9/6/19 To be included in SOP Develop definitions 9/1/2020 10 14 15 16 17 18 19 The organizational structure of the Special Events operations has been reviewed and modified in order to strengthen decision making and oversight for the division. Will be included in formal SOP. Currently the City Manager has designated the Director of Parks and Recreation to enter into certain agreements. However, in the absence of the Director, we will seek approval from the City Manager to allow the Deputy Director to perform this task. Will develop a formal pricing structure based on Best Practice for booth rentals. Will develop clear definitions for City fully sponsored, cosponsored, and private events. Management will purchase and install a new safe for special events as recommended by City Auditor as funds are available and as soon as feasible. Provide appropriate training to special event staff to understand and use Munis and RecTrac systems so they can use them as a tool for better decision making. December 31, 2019 December 31, 2019 20 Will develop formal standard operating procedures to forecast each event. December 31, 2019 Management will provide training to all personnel involved in the special event process so that they can understand, monitor, plan and 21 implement accurate reports, statements and other key documents and analyses for each special event. December 31, 2019 22 Director and Assistant Directors will evaluate City Auditors recommendations regarding the oversight process and determine the best course of action needed to provide appropriate oversight for special events. Management will review, update, and develop SOP’s for all Special Event operations including contract sufficiency and have employees acknowledge receiving and understanding all special event SOP’s. Use Munis to capture all expenses and revenues and backup information relative to each special event. This is currently being done, so we 24 should get some excellent data after the 2019 HHC. Also, as a part of this, develop standard operating procedures to provide internal controls over reports and performance measures. 23 25 Together with current Munis and Rec Trac Programs, management will investigate the possible purchase of an additional tracking system to monitor and accurately report results of all special events. 26 Evaluate strengths, opportunities and threats for all special events, pre and post event and implement a structured process to monitor each. 27 Establish training protocols to enhance the effectiveness of aspects of the special events business. Management will research, provide, and offer contract management training opportunities to all levels of management involved in contract negotiations Management will purchase and install security cameras in counting rooms at the Armory and in the counting trailer at Coachman Park as 29 recommended by the City Auditor as funds are available and as soon as feasible, but no later than December 31, 2019. Will investigate the cost and feasibility of installing cameras at all locations where monies are handled. 28 30 Management will provide training for staff within 3 months after theft/misappropriations City Policy is developed and adopted by the City. December 31, 2019 December 31, 2019 Check with P& R Controller on safe. Check with P&R Controller when and how we can provide this training. P&R Deputy Director needs to work up draft plan Need to discuss with Controller how this can be done. P&R Deputy Director to work on evaluation process by Evonne check report recommendation Develop all SOP.s and get sign off from staff. January 31, 2020 March 30, 2020 Have P&R Controller evaluate other tracking systems for special events other than what we currently have. April 1, 2020 April 1, 2020 August 31, 2020 October 1, 2020 Where are we on the security camera issue? P&R Controller TBD Waiting on policy.