Garland’s risk management shows progress on liability‑claims process; audit identifies remaining documentation and reporting gaps

The Audit Committee reviewed a follow‑up audit of the city’s liability‑claims process Sept. 30 and heard that the risk management office has implemented the majority of earlier recommendations but still needs to close several items related to documentation, periodic reporting and software access control.

Audit staff said the city handled 1,130 claims during the review period (Jan. 2021–Mar. 2025) and paid about 32% of submitted claims; total paid claims in the scope were roughly $1.8 million, with the largest single payment around $133,935. The departments generating the most paid claims in the audit window were sanitation, police and Garland Power & Light.

Since a prior 2020 audit, the city’s risk management office has introduced an online claim‑submission portal, provided multilingual filing instructions (English, Spanish, Vietnamese), and substantially reduced processing times — from averages above 60 business days in 2021 to about 23 days in 2024 for closed claims. The office has also outsourced claim‑review functions to a third‑party administrator and added periodic checks and updated a claim‑handling standard operating procedure (SOP).

However, auditors found outstanding issues. A review of historical files located 19 paper claim forms that were not entered into the claims software; the department said most of those date to before current staff’s tenure and that the statute of limitations had expired on all but one. Auditors recommended establishing a direct intake to risk management and continuing to ensure that the city secretary’s office receives copies for recordkeeping; risk management reported it will accept direct delivery and electronically submit copies to the city secretary going forward.

The audit also noted gaps in documentation for some claims, including missing photographs or departmental verification, and flagged one claim exceeding the council approval threshold where city council documentation was not present in the file (audit staff said the claims board subsequently confirmed approval was obtained). Auditors recommended that risk management verify departmental acceptance and maintain complete files before closing claims; the department has added a high‑level checklist and will continue to enhance file documentation.

Access controls for the claim software were another item: auditors found two users still had access although they were no longer employed; risk management removed those accounts promptly but the audit recommended a periodic access review. Auditors also recommended development of standardized monthly and quarterly reporting to departments and city administration; management said system enhancements are planned in fiscal year 2026 and that an employee has been hired to develop trend reports. Several of the audit’s recommendations were recorded as fully implemented, while others were noted as “in progress” with implementation timelines in fiscal 2026.

Ending: Risk management staff acknowledged outstanding items and said they will continue to refine the intake process, reporting and documentation. The committee thanked staff and asked for continued progress reports as system enhancements proceed.