Fort Worth audit committee hears three audit reports; city auditor flags control weaknesses and plans intranet tracker
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Summary
City Auditor Patrice Randall told the Audit and Finance Committee that three recent audits and a data analysis report found generally compliant contracting but isolated control weaknesses at the Fort Worth Housing Finance Corp, documentation gaps in housing-support expenditures, manual processes in parks’ tree mitigation, and follow-up steps on unpaid hotel occupancy taxes; the committee approved minutes and adjourned.
At its meeting, the Audit and Finance Committee heard from City Auditor Patrice Randall, who said, "Since the last audit committee meeting, we've released 3 audit reports and 1 data analysis report." Randall summarized key findings and recommended follow-up steps.
The city-hall contracting audit found contractors generally complied with contract requirements, with the exception of "some minor insurance noncompliance issues," Randall said. The Fort Worth Housing Finance Corp audit showed appropriate review and approval of expenses overall but identified control weaknesses, including transactions approved under a generic user ID that made it impossible to trace the individual approver and confirm segregation of duties.
Auditors also reported documentation gaps for some housing-support expenditures. Randall said that in certain cases records did not show who received bus passes or the quantity and dollar value tied to recipients, and recommended strengthened documentation practices.
On procurement, Randall recommended more precise contract language for mowing services — including full property addresses and unit numbers — and urged competitive bidding where appropriate. "During 2024, they had paid the vendor approximately $70,000," Randall said, noting the city had used the same mowing vendor since about 2016 and auditors suggested considering competitive bids for future contracts.
The tree mitigation fund audit found the city has processes for assessing and collecting fees, but auditors flagged the Parks Department’s manual permit and receipt processes (no pre-numbered permits or receipts) as a weakness that reduces accountability. Randall recommended automating those processes and said parks and development services should consult the City Attorney to determine whether an ordinance needs revision to align Parks’ procedures with the planning department’s code-based fee assessments.
The data analysis work identified one duplicate payment that had been refunded. Randall said auditors had previously identified three hotels that had not paid hotel occupancy taxes; two of those hotels have since paid. When asked about next steps for the remaining delinquent hotel, Treasurer Alex Laufer said the city would "coordinate with legal to issue delinquency notices" and continue enforcement remedies, and if internal remedies are exhausted the city could refer the debt to its collection agent, Limebarger.
The audit team also tested vehicle warranty processes and found instances where the city paid invoices for batteries that were replaced during warranty periods. Randall said property management will begin reconciling NAPA monthly billings more frequently and technicians will check for causes of repeated battery replacements; staff will also consider whether initial tows for police and fire vehicles should be covered by warranty.
Randall announced the audit department is developing an intranet page to publish the status of audit recommendations, committee presentations, and audit tips for departments. She said the goal is to have the page available "no later than March 31," subject to coordination with other departments.
Procedurally, the committee approved the Dec. 2 meeting minutes (the motion passed unanimously) and later voted to adjourn. There were no formal motions tied to specific policy changes at the meeting; the briefing produced a set of recommendations for department follow-up and possible ordinance review.
