Management Audit - City of Killeen

Aug 31, 2017 - Management Audit of specific focus areas commissioned by the City of Killeen's .... expenditures section includes capital outlay and debt service payments that are not normally .... Financial software must ensure completeness, accuracy and provide .... Fleet Vehicle Program as a whole, or governing the.
14MB Sizes 5 Downloads 139 Views
City of Killeen, TX

FINAL REPORT DATE

Thursday, August 31, 2017

4828 LOOP CENTRAL | SUITE 1000 | HOUSTON, TEXAS 77081 TEL: 713.968.1600 | FAX: 713.968.1601 | ONLINE: WWW.MCCONNELLJONES.COM

August 31, 2017

The Honorable Jose L. Segarra, Mayor The Honorable Members of the City Council City of Killeen, Texas Dear Mayor Segarra and Members of the City Council: McConnell & Jones LLP (MJ) is pleased to present the attached Final Report for the Management Audit of specific focus areas commissioned by the City of Killeen’s (City) City Council. Observations and recommendations included in the report will help the City address the public’s questions regarding its financial condition and improve its overall financial management and control environment as it provides essential services to citizens throughout the community. We applaud the efforts of City staff and management who worked tirelessly to provide data and context to enable us to successfully complete this management audit. Special thanks go out to the Audit Committee, City Auditor, City Attorney and City Manager for their assistance throughout this engagement. Respectfully submitted,

Odysseus M. Lanier, Partner McConnell & Jones LLP

4828 Loop Central, Suite 1000 Houston, TX 77081 Phone: 713.968.1600 Fax: 713.968.1601 WWW.MCCONNELLJONES.COM

Management Audit EXECUTIVE SUMMARY

CITY OF KILLEEN, TX

EXECUTIVE SUMMARY The City of Killeen (City) is established as a council-manager form of government. Under this form of government, the City’s residents elect each of the seven city council members. The city council is responsible for legislative functions and appointing the city manager, city auditor and county judge. Legislative functions include setting the City’s overall vision, establishing policy, passing local ordinances, establishing administrative offices, and adopting annual budgets. The mayor and all city council members serve two-year terms, with a three-consecutive-term limitation for each office. The city manager is responsible for the City’s administrative functions; implementing City Ordinances; and hiring City staff. The mayor holds an elected position that presides over the city council, and is recognized as the head of the City of Killeen government for all ceremonial purposes and recognized by the Governor of Texas for purposes of military law. The mayor does not have an executive function or administrative powers.

Background The City of Killeen experienced rapid growth during the past decade. According to the U.S. Census, the city’s population grew from 86,911 residents in 2000 to 140,806 as of July 1, 2016. According to the Texas Water Development Board, the city’s population growth is expected to continue with projections of 153,371 residents in 2020; 177,572 in 2030; 203,934 in 2040; and 283,732 in 2070. This growth is good for all citizens and the local economy. However, sustainable growth requires sound planning to ensure that adequate services are provided to all citizens. These services include, but are not limited to, providing utility, water, drainage and roadway infrastructure; maintaining public safety through fire and police; and providing parks and recreation services. Providing these services to citizens requires significant revenues that are generated through property taxes, sales taxes and fees. Cities also use debt financing instruments such bonds and certificates of obligation (CO) as a method to finance capital improvement projects.

Events leading up to the audit In May 2011, the City of Killeen voters exercised their right to hold a recall election of five city council members.1 The recall election was held on November 8, 2011, and all five city council members were recalled. In addition to the recall, the City experienced a period of significant turmoil and turnover within the ranks of the City’s leadership, including the city manager, finance director, city auditor and various department