Audit Committee Goodyear City Hall - La Jolla Vista Conference Room (2nd Floor) 1900 N. Civic Square Goodyear, AZ 85395 |
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CALL TO ORDER
Pro Tem Chair Vicki Gillis called the meeting to order at 3:36 p.m.
Pro Tem Chair Vicki Gillis called the meeting to order at 3:36 p.m.
ROLL CALL
- Present:
- Councilwoman Vicki Gillis; Councilmember Trey Terry
- Absent:
- Chair Brannon Hampton
- Staff Present:
- City Manager Bryan Langley; Deputy City Manager Kini Knudson; Acting Deputy City Manager Paul Luizzi; Director of Finance Laura Calder; Deputy Director of Finance Ryan Bittle; Interim Deputy Director of Finance Mayette Bailey; City Auditor Billy Vickers; Assistant to the Council Amber Costello; Administrative Services Manager Kelli Gieszler; Management Assistant Mary Wilhite; Senior Accountant Jessica Archuleta; Finance Manager Maria Elizarraraz; Real Estate Services Specialist Ariana Ramirez
- Attendees:
- Kristen Conway, HeinfeldMeech, External Auditor; Alex Manriquez, HeinfeldMeech, External Auditor
MOTION BY Councilwoman Vicki Gillis, to EXCUSE Chair Brannon Hampton. The motion carried as follows:
- AYE:
- Councilwoman Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
| PUBLIC COMMENTS |
There were no public comments.
| BUSINESS |
1.
APPROVAL OF MINUTES
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to APPROVE the April 27, 2026, meeting minutes.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to APPROVE the April 27, 2026, meeting minutes.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
2.
RECOMMENDATION TO VOTE FOR A COMMITTEE VICE CHAIR
Councilmember Trey Terry nominated Councilwoman Vicki Gillis to serve as Vice Chair of the Audit Committee.
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to APPOINT Councilwoman Vicki Gillis to serve as Vice Chair of the Audit Committee.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
Councilmember Trey Terry nominated Councilwoman Vicki Gillis to serve as Vice Chair of the Audit Committee.
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to APPOINT Councilwoman Vicki Gillis to serve as Vice Chair of the Audit Committee.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
3.
FY2026 FINANCIAL AUDIT PLAN AND SCHEDULE
Mayette Bailey, Interim Deputy Director of Finance, presented the Audit Committee with the FY2026 Financial Audit Plan and Schedule. Ms. Bailey reviewed the proposed audit timeline and introduced the City’s external auditors, Heinfeld, Meech & Co., who discussed the audit scope and engagement plan with the Committee.
Ms. Bailey explained that the August 31 meeting served as the audit kickoff. Interim fieldwork is scheduled for September 8–10 and will include early testing of financial transactions and internal controls. Final fieldwork is scheduled for October 12–16, followed by delivery of the draft financial statements on November 24. The Audit Committee will review the draft financial statements, audit reports, and any findings on December 7. The final Annual Comprehensive Financial Report (ACFR) is scheduled to be presented to City Council on January 4.
Ms. Bailey then turned the presentation over to the external auditors to discuss the Audit Engagement Plan in further detail.
Kristin Conway, Partner with Heinfeld, Meech & Co., and Alex Manriquez, Senior Associate with Heinfeld, Meech & Co. for the City’s audit, provided an overview of the FY2026 audit engagement. Ms. Conway stated that the auditors will coordinate with Internal Audit as part of this year’s audit process. The engagement will include the financial statement audit, Single Audit, nine Community Facilities Districts (CFDs), the Aggregate Expenditure Limitation Report, the HURF report, and a review of development impact fees. The auditors will also assist the City with implementation of GASB Statements 103 and 104.
Following the presentation, the Committee discussed the audit plan and schedule. Staff requested that the Committee consider a recommendation to City Council to accept the FY2026 Financial Audit Plan and Schedule.
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to RECOMMEND APPROVAL of the FY2026 Financial Audit Plan and Schedule to the City Council.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
Mayette Bailey, Interim Deputy Director of Finance, presented the Audit Committee with the FY2026 Financial Audit Plan and Schedule. Ms. Bailey reviewed the proposed audit timeline and introduced the City’s external auditors, Heinfeld, Meech & Co., who discussed the audit scope and engagement plan with the Committee.
Ms. Bailey explained that the August 31 meeting served as the audit kickoff. Interim fieldwork is scheduled for September 8–10 and will include early testing of financial transactions and internal controls. Final fieldwork is scheduled for October 12–16, followed by delivery of the draft financial statements on November 24. The Audit Committee will review the draft financial statements, audit reports, and any findings on December 7. The final Annual Comprehensive Financial Report (ACFR) is scheduled to be presented to City Council on January 4.
Ms. Bailey then turned the presentation over to the external auditors to discuss the Audit Engagement Plan in further detail.
Kristin Conway, Partner with Heinfeld, Meech & Co., and Alex Manriquez, Senior Associate with Heinfeld, Meech & Co. for the City’s audit, provided an overview of the FY2026 audit engagement. Ms. Conway stated that the auditors will coordinate with Internal Audit as part of this year’s audit process. The engagement will include the financial statement audit, Single Audit, nine Community Facilities Districts (CFDs), the Aggregate Expenditure Limitation Report, the HURF report, and a review of development impact fees. The auditors will also assist the City with implementation of GASB Statements 103 and 104.
Following the presentation, the Committee discussed the audit plan and schedule. Staff requested that the Committee consider a recommendation to City Council to accept the FY2026 Financial Audit Plan and Schedule.
MOTION BY Councilmember Trey Terry, SECOND BY Pro Tem Chair Vicki Gillis to RECOMMEND APPROVAL of the FY2026 Financial Audit Plan and Schedule to the City Council.
AYE: Pro Tem Chair Vicki Gillis, Councilmember Trey Terry
Passed - Unanimously
4.
PAYROLL AND TIMEKEEPING ASSESSMENT
Billy Vickers, City Auditor, presented the Audit Committee with an update on the Payroll and Timekeeping Assessment. Mr. Vickers reported that the assessment was completed by Protiviti approximately a year and a half ago and included 70 recommendations across 12 themes. The findings were presented to City Council on June 16, 2025, and quarterly updates have been provided to the Audit Committee.
Mr. Vickers reviewed key actions implemented in response to the assessment, including development of standard operating procedures, payroll staff training, dashboards to identify potential errors and risks, improved communication between payroll staff and department timekeepers, calendar reminders for timesheet review, implementation of the Employee Access module in Munis, improved communication with benefits administrators, and new pay stub templates.
Mr. Vickers also discussed limitations associated with the City’s fragmented systems and the inability to fully integrate and automate payroll and timekeeping processes. He noted that available Tyler integration solutions do not provide the necessary connectivity for full data integration and that the current HRIS system does not offer innovative solutions to keep pace with industry standards for payroll and timekeeping.
Mr. Vickers reported that the FY2027 budget includes funding for a Workforce Management Software project. Staff will define the project scope during FY2027, with implementation anticipated in FY2028. Internal Audit will conduct a follow-up review in FY2028 to evaluate the effectiveness of the implemented changes and the impact of the new system.
The Committee had no additional questions or comments.
Billy Vickers, City Auditor, presented the Audit Committee with an update on the Payroll and Timekeeping Assessment. Mr. Vickers reported that the assessment was completed by Protiviti approximately a year and a half ago and included 70 recommendations across 12 themes. The findings were presented to City Council on June 16, 2025, and quarterly updates have been provided to the Audit Committee.
Mr. Vickers reviewed key actions implemented in response to the assessment, including development of standard operating procedures, payroll staff training, dashboards to identify potential errors and risks, improved communication between payroll staff and department timekeepers, calendar reminders for timesheet review, implementation of the Employee Access module in Munis, improved communication with benefits administrators, and new pay stub templates.
Mr. Vickers also discussed limitations associated with the City’s fragmented systems and the inability to fully integrate and automate payroll and timekeeping processes. He noted that available Tyler integration solutions do not provide the necessary connectivity for full data integration and that the current HRIS system does not offer innovative solutions to keep pace with industry standards for payroll and timekeeping.
Mr. Vickers reported that the FY2027 budget includes funding for a Workforce Management Software project. Staff will define the project scope during FY2027, with implementation anticipated in FY2028. Internal Audit will conduct a follow-up review in FY2028 to evaluate the effectiveness of the implemented changes and the impact of the new system.
The Committee had no additional questions or comments.
5.
AMBULANCE BILLING RATE AUDIT
Billy Vickers, City Auditor, presented the Audit Committee with an update on the Ambulance Billing Rate Audit. Mr. Vickers explained that the first phase of the audit focused on the City’s current ambulance billing rates and their impact on cost recovery.
Mr. Vickers reported that Goodyear’s approved ambulance billing rates are the lowest among service providers in Arizona and that increased rates could improve cost recovery. He also discussed the continued growth in population and ambulance service demand, noting that dispatches and transports have increased at a faster rate than the City’s population.
Mr. Vickers reviewed a comparison of Goodyear’s rates with Buckeye, Avondale, Surprise, and Queen Creek. The Committee discussed the differences in rates, including factors affecting Buckeye’s rates. Fire Chief Paul Luizzi explained that differences in service area, travel distance to receiving facilities, and the structure of ambulance service in Buckeye contribute to its higher rates.
Mr. Vickers presented recommendations to request an ambulance billing rate increase from the Arizona Department of Health Services (AZDHS) to improve cost recovery. He explained that management concurred with the recommendations and proposed establishing a consistent rate for services at a level intended to also offset wait time and supply costs.
Bryan Langley, City Manager explained that the proposed rate adjustment will require an application to the State and that the Audit Committee serves as a recommending body to the City Council. He noted that the recommendation will be presented to the full Council for consideration before the City proceeds with the rate application.
The Committee was to recommend approval by the City Council for the future application to the Arizona Department of Health Services (AZDHS) for an increase to the ambulance billing rates.
Billy Vickers, City Auditor, presented the Audit Committee with an update on the Ambulance Billing Rate Audit. Mr. Vickers explained that the first phase of the audit focused on the City’s current ambulance billing rates and their impact on cost recovery.
Mr. Vickers reported that Goodyear’s approved ambulance billing rates are the lowest among service providers in Arizona and that increased rates could improve cost recovery. He also discussed the continued growth in population and ambulance service demand, noting that dispatches and transports have increased at a faster rate than the City’s population.
Mr. Vickers reviewed a comparison of Goodyear’s rates with Buckeye, Avondale, Surprise, and Queen Creek. The Committee discussed the differences in rates, including factors affecting Buckeye’s rates. Fire Chief Paul Luizzi explained that differences in service area, travel distance to receiving facilities, and the structure of ambulance service in Buckeye contribute to its higher rates.
Mr. Vickers presented recommendations to request an ambulance billing rate increase from the Arizona Department of Health Services (AZDHS) to improve cost recovery. He explained that management concurred with the recommendations and proposed establishing a consistent rate for services at a level intended to also offset wait time and supply costs.
Bryan Langley, City Manager explained that the proposed rate adjustment will require an application to the State and that the Audit Committee serves as a recommending body to the City Council. He noted that the recommendation will be presented to the full Council for consideration before the City proceeds with the rate application.
The Committee was to recommend approval by the City Council for the future application to the Arizona Department of Health Services (AZDHS) for an increase to the ambulance billing rates.
6.
INTERNAL AUDIT UPDATES
Billy Vickers, City Auditor, provided the Audit Committee with an update on current and planned internal audit activities. Mr. Vickers reported that the second phase of the Ambulance Billing Audit is underway and will focus on controls surrounding the billing process. He also provided updates on the Purchasing Card Transactions Audit and Purchasing Card Governance review, including an evaluation of purchasing card policies and administrative controls.
Mr. Vickers reported that the Development Impact Fees Audit has been completed and is in draft form. Internal Audit is working with management to obtain responses before finalizing the report.
Mr. Vickers also reviewed upcoming audits included in the current audit plan. Planned activities include a broader review of Permitting Fees and related controls, a review of Overtime Authorization processes and controls, and an audit of Contract Performance and In-Lieu Agreements.
The Committee expressed appreciation for the progress made on the audit plan and thanked Mr. Vickers and staff for their work.
Billy Vickers, City Auditor, provided the Audit Committee with an update on current and planned internal audit activities. Mr. Vickers reported that the second phase of the Ambulance Billing Audit is underway and will focus on controls surrounding the billing process. He also provided updates on the Purchasing Card Transactions Audit and Purchasing Card Governance review, including an evaluation of purchasing card policies and administrative controls.
Mr. Vickers reported that the Development Impact Fees Audit has been completed and is in draft form. Internal Audit is working with management to obtain responses before finalizing the report.
Mr. Vickers also reviewed upcoming audits included in the current audit plan. Planned activities include a broader review of Permitting Fees and related controls, a review of Overtime Authorization processes and controls, and an audit of Contract Performance and In-Lieu Agreements.
The Committee expressed appreciation for the progress made on the audit plan and thanked Mr. Vickers and staff for their work.
| INFORMATION ITEMS |
There were no Information Items.
| FUTURE MEETINGS |
The next meeting is tentatively scheduled for December 7, 2026.
| ADJOURNMENT |
There being no further business to discuss, Pro Tem Chairman Vicki Gillis adjourned the meeting at 4:02 p.m.
Respectfully Submitted by:
Respectfully Submitted by:
__________________________ Ariana Ramirez, Board Secretary |
__________________________ Brannon Hampton, Chair |
Date:___________________ Approved at Audit Committee Meeting held on __________, 2026. |