Audit Oversight Committee Meeting - July 20, 2026

The Audit Oversight Committee met on Monday, July 20, 2026, at 16:57 UTC. The meeting focused on the audit of the Innovation and Technology Department's mobile communication device management, staffing updates, and status of audit recommendations.

Discussion Items

• Audit of Mobile Communication Device Management: Louis Halad, Senior IT Auditor, presented findings. The city had 1,946 active mobile devices (as of October 2025) across three categories: mobile phones, tablets with cellular capability, and embedded chips (e.g., vehicle gateways). Annual service charges from November 2024 through October 2025 totaled $851,000. The audit examined three areas: (1) charges and records, (2) utilization and need, and (3) approvals and disposals.
  • Charges and Records: 97% of 2,707 devices appearing on bills over the year were in IT's inventory records; 74 devices were missing from inventory. No improper billing was found. Recommendations: perform a one-time data reconciliation and establish a regular procedure.
  • Utilization and Need: 375 devices showed no activity (calls, texts, data) during the year, costing $85,000; another 215 devices had no calls and low data (<500 MB/month). Caution advised because phone bill data does not capture Wi-Fi usage. Recommendations: IT should regularly publish usage data to departments to help them decide on deactivation.
  • Approvals and Disposals: In a sample of 20 phones from separated employees, 16 (80%) had approvals in ServiceNow, 3 were approved via email, and 1 lacked evidence. For disposals, only 5 of 20 were clearly tracked; 14 had unclear records due to recycler receipts lacking serial numbers. IT had already begun improving disposal tracking. Recommendations: ensure all approvals use ServiceNow and maintain detailed disposal records.
• Staff Response: Chris Craig, Director of Innovation and Technology, noted that many devices operate over Wi-Fi, so low cellular usage does not mean they are unused. He highlighted the importance of connectivity for emergency and traveling employees. He confirmed AT&T as the primary carrier, with FirstNet for public safety, and stated pricing is competitive.
• Data Security Questions: Chair Price asked about data security on decommissioned devices. Chris Craig responded that IT can remotely wipe and disable devices, making security risk extremely low. Kara Kelly asked about lost or misplaced devices; the same remote controls apply.
• Staffing Report (Item 6): Brian Smith, City Auditor, reported that two vacant positions have been filled: Samantha Dinicola (from city clerk's office) and Patrice Hartwell (internal auditor starting the next day). The internal audit section manager position remains frozen due to budget issues.
• Status of Audit Recommendations (Item 7): Smith reported that most recommendations from prior audits are addressed. Three departments have incomplete recommendations: business licensing, human resources, and municipal court. All are expected to be completed before the next meeting.
• Future Agenda Items (Item 8): No suggestions were made.

Key Outcomes

• Motion to accept the audit report on mobile communication device management was made by Kara Kelly, seconded, and passed unanimously.
• The committee noted the report-only items (staffing and audit recommendations) without motion.
• The next meeting is scheduled for Monday, October 12, 2026.
• Meeting adjourned.