The URL can be used to link to this page

Home My WebLink About10-06-2020 Supporting Documents City of Ocoee City Commission Meeting October 6 , 2020 Financial and Operational Food for Thought for a Growing City Zero-Based Budgeting and Internal Auditing Presented by Jim Moyer, Ocoee Citizen According to the City of Ocoee Official Website 1 . "As the fastest growing city in Orange County, and soon to be the second largest in population only to Orlando, the City of Ocoee prides itself on the quality of life it provides its citizenry" (https://www.ocoee.org/288/Our-City) 2. ". . . . The Fifty West Business Corridor along SR 50 in Ocoee is easily accessible from the Florida Turnpike, the East-West Expressway (408) and the Western Beltway (429). Significant improvements to these roadways have occurred over the last 15 years. . ." (https://www.ocoee.org/951/Facts-Figures) 3. "Ocoee is continuing on its path of new growth with the addition of 711 new single-family/townhomes and 316 multi-family units. Greens at Forest Lake. . ., Arden Park North, Phase 4 & 5 . . . , Ocoee Village Center. . . , and Ciara Place. . . ." (https://www.ocoee.org/732/Residential-Developments) Zero-Based Budgets Zero-Based g Budgeting System g (ZBB) vs Traditional 2016 2017 Budgets Category Prey Year Actual Category Prey Year Actual 1 WIPED $110,000 1 WIPED $115,000 2 CLEAN $100,000 2 CLEAN STOPPED 3 STARTS $118,000 3 STARTS $122,000 4 AT $80,000 4 AT $85,000 Source: 5 ZERO $105,000 5 ZERO STOPPED https://www.bing.com/images/search? view=detailV2&ccid=5i%2fw9Dtl&id=CC 0E03AA5C448D623B723C087E63C4213 Traditional Budgeting System 7A07F97&thid=O1P.5iw9DtIoN2SnINS- 479aQHaH K&mediaurl=http%3a%2f%2f marketbusinessnews.com%2fwp- 2016 2017 content%2fuploads%2f2017%2f05%2fZ Category Prey Year Actual Category Prey Year Actual ero-based-budgeting- system.jpg&exph=678&expw=701&q=Z 1 $100,000 $110,000 1 $110,000 $115,000 ero- 2 $95,000 $100,000 2 $100,000 $105,000 Based+Budgeting+Approach&simid=608 3 $110,000 $118,000 3 $118,000 $122,000 018424132144968&ck=9CD849CFD2F7 2AD70D6AF613B786338A&selectedlnd 4 $75,000 $80,000 4 $80,000 $85,000 ex=6&FORM=IRPRST 5 $100,000 $105,000 5 $105,000 $110,000 Internal Audits vs External Audits Aspect Internal Auditing axternai Auditing Objectives The main objective is to advice The objective is to provide management on whether organization an opinion as to whether or has sound internal control systems to not the financial statements protect it against loss_ show a true and fair view of the company's state affairs_ Legal basis Internal auditing is riot .a legal It is a legal requirement for requirement but corporate governance limited liability companies advises and recommends that a and public bodies to have company should have an internal audit their accounts audited_ department_ Scope It covers all areas of organization Le_ It has a purely financial operational as well as financial_ focus_ Approach It is increasingly risk based_ The Its increasingly risk - approach is to assPs-s risks, evaluate based as it only tests systems of control and test operation underlying transactions of the systems and finally make that form having of financial recommendations for improvement statements_ E?esponsibility The responsibility is to advise and The responsibility is to make recommendations on internal form an opinion on whether controls and corporate governance_ financial statements show a true and fair view Source: https://www.bing.com/images/search?view=detailV2&ccid=XBDHKUsa&id=2586BB4A2A352255923A109B 1D41338B89F92E6D&thid= OIP.X8DHKUsaOQfOO80gQxIEtgHaEK&mediaurl=https%3A%2F%2Fgph.fs.quoracdn.net%2Finain-qimg- 5fc0c7294b 1 ad 107ce3bcd2a431944b6&exph=339&expw=602&q=internal+vs.+external+audits&simid=608055614273358733&ck=CCF5 6B5CCFE9DA90BEDCOD694895EB44&selectedindex=124&form=IRPRST&aj axhist=0&vt=0&sim=11 More about "What Value does Internal Audit Provide to an Organization? Technically, Internal Audit is a cost center in a company—it does not generate revenue. However, a good internal audit function can be profoundly important to the survival and prosperity of any organization. Unlike external auditors, internal auditors look beyond financial statement reporting risk to consider broader issues such as the organization's reputation, operational efficiency, strategic growth, its impact on the environment, and the way it treats its employees." SIPCOMPL[AKCE . WHATARE THE TYPES ENVIRONMENTAL <S' . y� INFORMAT'1ON TECHNc LOGY OF 'INTERIM I_ UDI E T S ®PE"Z 1".°1`"ki- 'PERF.ORS'4ANCE' Source: https://linfordco.com/blog/what-is-internal-audit/ Suggested ZBB Implementation 1 . There are many benefits of ZBB such as having more control over the departmental budgets and budgeting expenses based upon your current needs as opposed to using history which may include obsolete costs, especially in a fast-growing organizational environment. 2. However, ZBB can be very time-consuming. Therefore, I would suggest that if you would like to implement ZBB into your budget process, create a multi-year plan before your next budget process begins in which one department uses the ZBB process each year then the next department and so on until all departments have used ZBB then continue the process if you deem it to be beneficial. Suggested Internal Audit Implementation 1 . Internal auditing is not required. Furthermore, it is not required that an internal auditor be an employee of an organization or report to a particular position in an organization, although there are common practices. However, an internal auditor in order to comply with the professional standards of the Institute of Internal Auditors (IIA) must be independent of the area being audited and be objective while performing and reporting the internal audit. Therefore, if you would like to implement an internal audit program it would be entirely up to the Commission and the City Management as to how you would hire (part-time or full-time) or enter into an agreement with an outsider serving as your internal auditor similar to how you have a City Attorney who is employed by a law firm. 2. One consideration, at least initially, is that individual Commissioners consider using a portion of their new $10,000 discretionary funds to pay for an internal audit in an area that they believe should be taken a closer look at. For example, a particular computer system, program, or department. However, I would suggest that the same internal auditor(s) be used because internal audits dig deeper than an external audit so there is a greater learning curve. 'tea # F ..0 r� a �.A Speaking Reservation Form NOTE: All submitted speaking reservation forms are public records under Chapter 119, Florida Statutes, and are open to inspection by all persons. We also have a printable PDF Form. Date:* OCOEE RESIDENT: 10/6/2020 0 Yes ® No NAME:* PHONE# Deidre Krause 13057108500 (OPTIONAL)Address:(Please, Not a P.O. Box) City: miami State: Zip: FL 33143 Email Address: deidre@thepr.co I want to address the Board about(Please provide Item#and/or topic): * A food drive being hosted in Ocoee from 9 - 12 pm on Saturday, October 24, 2020 • You may send questions and comments to citizens@ocoee.org. Do you have a prepared statement, or other document(s)from which you File Upload will address the Board? Choose File No file chosen (if yes, please attach copy of same to this Reservation Form.)* Convert to PDF? L 0 Yes OO No (DOC, DOCX, XLS, XLSX, TXT) All proceedings before the Commission shall be governed by the Civility Code The following time limits to speak are in effect: Public Hearings: petitioner presentation -15 minutes citizen comments -5 minutes per speaker petitioner rebuttal -5 minutes. Open to Public—Citizens Comments: 3 minutes per speaker, per meeting CITY OF OCOEE CIVILITY CODE -adopted July 1, 2003. Pursuant to Resolution No. 2003-16 adopted on July 1, 2003, the following Civility Code shall govern all proceedings before the City of Ocoee City Commission and Boards: 1. All electronic devices, including cell phones and pagers, shall be either turned off or otherwise silenced. 2. Prolonged conversations shall be conducted outside Commission Chambers. 3. Clapping,whistling, heckling, gesturing, loud conversations, or other disruptive behavior is prohibited. 4. Only those individuals who have submitted speaker forms and who have been recognized by the Mayor (or Chair) may address comments to the Commission (or Board). 5. Comments at public hearings shall be limited to the subject being considered by the Commission. 6. Comments at Citizens Comments shall be directed to City issues. 7. All public comments shall avoid personal attacks, abusive language, and redundancy. 8. No person attending a Commission or Board meeting is to harass, annoy or otherwise disturb any other person in the room. Any member of the public whose behavior is disruptive and violates the City of Ocoee Civility Code is subject to removal from the Commission (or Board) meeting by an officer and such other action as may be appropriate. * indicates required fields.