noted from the logs it's impossible to determine which cards were given to which
employees. That is important to preserve an audit trail. They made
recommendations to correct it and the administration has said that they will comply.
They noted that there was inadequate controls in the Employee Recognition
Program. What they mean by that is sometimes the paperwork authorizing the
award wasn't to be found or was not complete. They also note that there is a gift
card log in Treasury where gift cards are held so they are safe and the gift card log
in the department and it was not always possible to reconcile the two. He stated
that they recommended that be corrected. Gift cards are considered income
because they can be cashed. It is important that when a gift card is handed out
whether it will be for the HR department or through Lights in the Parkway that
information be reported to the Payroll Department so that it could be included as
income on the employees W-2. They found that was not consistently done. Those
processes need to be worked on. He stated that the last item that he would like to
comment on is that they have been purchasing gift cards for a long time. He stated
that they go back to 2016. They still have gift cards that they purchased in HR in
2016. Some of this money came from the medical. Brue Cross will give the city
wellness money. This might be used as encouragement or spiff for doing something.
He stated that they still have these cards. They have a number from 2016, 2017,
2019, and 2021. The total of these older cards totals $2,500. He stated that the
Controller's office recommendations to the department and other departments as
well that purchase cards is that the fist card that comes in, is the first card that goes
out and that way you don't have stale cards sitting around. He stated just to recap,
this is the third time they have audited this for a number of reasons in the past. The
department has been slow to make corrections. It has been some turnover there.
The department's response for all of these findings was that they would review,
make changes to ensure that there was compliance. He stated that if they want to
read about this in more depth and stated that it is certainly an engaging read so
please. He is sure Mr. Hanlon put it up in Granicus and if Council has any questions,
he will be more than happy to answer them.
Mr. Ed Zucal stated that for the last few years anyway, the city does not have a
record of who got them and how much they were for.
Mr. Jeffrey Glazier stated no, they are not always complete. This is an issue that
goes back to 2017. This didn't just start in 2022. He stated that they can piece most
of it together, but they can't always piece all of it together. Some of the corrections
are as simple as making sure that the space on the log for the employee to sign their
name is large enough for them to sign their name. It's ok, but they need to do
better.
Mr. Ed Zucal stated that he remembers a few years ago someone got fired.
Mr. Jeffrey Glazier stated that he is correct. In 2017, the Controller's office found
malfeasance and turned it over to the police department immediately because it was
over their heads. They duly followed through and they were short one employee