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Agenda Packet TC 03/26/2019 - Supplemental Items Town Council Meeting March 26, 2019 Supplemental Item Agenda Item No. 13 Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club, Fiscal Year 2018, and report by members of the Council Finance Subcommittee meeting of March 18, 2019 (T. Class). 1 14950 Heathrow Forest Pkwy | Suite 530 | Houston, TX 77032 | Tel: 281.907.8788 | Fax: 888.875.0587 | www.BrooksWatsonCo.com March 12, 2019 To the Town Council and Management Town of Trophy Club, Texas In planning and performing our audit of the financial statements of the Town of Trophy Club, Texas (the “Town”), as of and for the year ended September 30, 2018, in accordance with auditing standards generally accepted in the United States of America, we considered the Town’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town ’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesse s and therefore there can be no assurance that all such deficiencies have been identifie d. The below item was not considered to be a material weakness, however it is considered to be a deficiency that should be considered and addressed if feasible. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material we akness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance. We found the following significant deficiencies within the Town’s internal control. 1.COURT CASH DRAWER Finding Only one cash drawer used in municipal court, which is used by the court clerk as well as anyone that may cover for the court clerk when on break. Recommendation It is recommended that either separate drawers are used by each person, or that procedures be implemented to ensure the use of cash drawers are not used by multiple personnel without mitigating controls. Town of Trophy Club Communication of Significant Deficiencies and Material Weaknesses 2 Town response:This drawer is reconciled daily for day end deposits. The InCode system can break down cash transactions by user in a report if there are discrepancies. The Finance Department conducts intermittent reconciliations throughout the year ensuring accuracy to the ledger. Each time a transaction is entered the initials of the person logged in are associated with that transaction. 2.COURT SYSTEM SECURITY Finding A lack in system security was identified, as the machine password was posted on the machine. As we inquired further it was determined that the password was being used by individuals that filled in for the court clerk. This is due to system errors that do not allow other users to process credit card payments on their login. Only the court clerk’s login allows the processing of credit cards. Recommendation It is recommended that (1) the password not be displayed on the machine, and (2) that the Town work with Incode or the Credit Card company to determine the reason for the issue and take the necessary steps needed to eliminate this restriction. Town response:The login issues with the credit card machine were identified and corrected shortly after the interim audit during the summer. Now multiple users can login and use the machine during business hours. Passwords words have been changed and sharing of login information is prohibited. Other matters are any additional noteworthy items that are unrelated to internal control such as compliance with laws and regulations. In addition, we noted other matters involving the internal control and its operation: 3.HUMAN RESOURCES -EMPLOYEE FILES Finding When testing payroll it was noted that several personnel files lacked copies of the I9 forms and or TMRS Enrollment Forms. Those missing the files were more tenured employees. Recommendation While all employees hired more recently had the proper forms on file, it is recommended that these files be maintained consistently. Town response:Due to employee turnover in the Human Resources Department, there was a lack of employee file consistency.Once the Human Resources Manager was made aware of the issue during the interim audit process he reviewed all current employee files to determine if there were missing information. Any deficits were corrected upon discovery and a double check was placed on new employee file creation to ensure consistency moving forward Town of Trophy Club Communication of Significant Deficiencies and Material Weaknesses 3 This communication is intended solely for the information and use of the Town Council and management, and others within the Town, and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, BrooksWatson & Co., PLLC Town Council Meeting March 26, 2019 Supplemental Item Agenda Item No. 16 (B) Item No. 3 - Receive an update from Town Staff regarding Entryway Monumentation and Landscaping for the Town of Trophy Club. (Sanders 2/27/2018) (1-May 22, 2018) (2-August 28, 2018) (3-December 11, 2018) (4-March 26, 2019) 1 2 3 4 5 6 7 Trophy Wood Dr. Marquee Entryway Monument Trophy Club Dr. Marquee & Logo Entryway Monuments Trophy Lake Dr. Marquee & Roundabout Entryway Monuments 1.Town Hall / Police Station 2.Harmony Park 3.Trophy Club Country Club 4.Schools 5.Military Veterans Memorial 6.Independence Park 7.Freedom Dog Park 8.Trophy Club Park 1 2 3 4 4 4 4 5 6 7 8 1.Trophy Wood Dr. / Indian Creek Dr. intersection 2.Trophy Club Dr. / Indian Creek Dr. intersection 3.Trophy Lake Dr. / Trophy Club Dr. intersection 4.Trophy Club Dr. / Bobcat Blvd. intersection 5.Bobcat Blvd. at Water Tower 1 2 3 4 5 1.Trophy Wood Dr. / Indian Creek Dr. intersection •Town Hall / Police Station •Harmony Park •Trophy Club Country Club 1 2 3 4 5 2. Trophy Club Dr. / Indian Creek Dr. intersection •Town Hall / Police Station •Harmony Park •Trophy Club Country Club •Independence Park •Trophy Club Park 1 2 3 4 5 3. Trophy Lake Dr. / Trophy Club Dr. intersection •Independence Park •Freedom Dog Park •Trophy Club Park •Schools 1 2 3 4 5 4. Trophy Club Dr. / Bobcat Blvd. intersection •Independence Park •Freedom Dog Park •Trophy Club Park •Military Veterans Memorial 1 2 3 4 5 5. Bobcat Blvd. at Water Tower •Independence Park •Freedom Dog Park •Trophy Club Park •Military Veterans Memorial 1 2 3 4 5 Town Council Meeting March 26, 2019 Supplemental Item Agenda Item No. 16 (C) Item No. 4 - Discussion of and take appropriate action regarding updating the Town’s Storm Water Master Plan. (Shoffner 6/12/2018) (1-September 11, 2018) (2-December 11, 2018) (3-March 26, 2019) Town of Trophy Club, Texas March 26, 2019 SKYLINE CREEK IMPROVEMENTS FEASIBILITY STUDY •Stormwater Master Plan completed in 2012 by FNI •Developed hydraulic models of Skyline Creek •Flooding at Indian Creek Drive and TW King Road during 1% annual chance event (100-yr) •Proposed improvements to bridges to mitigate flooding Indian Creek Drive Indian Creek Drive Crossing •TNP improvements at Indian Creek Drive constructed after completion of master plan •Four box culverts; three of the four culverts in operation •Possible that fully constructed capacity reduced to limit increase of discharge downstream until construction of downstream channel improvements TW King Road T.W. King Road Crossing •6-48 inch culverts •ROW along TW King Drive split between Trophy Club and Southlake •Per 2012 master plan, leaving existing culverts in-place would not result in any residential structures in Trophy Club being included in the 100-year floodplain with construction of upstream improvements Project Components - Hydraulic Analysis •Site visit to assess current channel conditions •Update of the Indian Creek HEC-RAS hydraulic model to reflect current conditions •Evaluation of two alternate scenarios for Indian Creek Drive culvert crossing: •Current scenario: 3 of 4 box culverts •Alternative scenario: 4 of 4 box culverts •10-year and 100-year floodplain mapping •Identifying residential structures within the 100-year floodplain for each scenario •Evaluation of additional downstream impacts (erosive velocities, roadway impacts, etc.) FEMA National Flood Hazard Layer Project Components – Geomorphic Analysis •Geomorphic channel assessment and feasibility study for additional channel improvements •Evaluate shape and condition of the channel and the likelihood of changes to channel geometry and alignment over time •Recommendation of additional channel modifications if necessary to mitigate downstream impacts •Additional factors: •Availability of drainage easements •Environmental permitting requirements •FEMA coordination •Cost Typical Downstream Channel Section Funding Options •Develop total project costs •Maximize available funds •Evaluate stormwater utility fee •Potential cost-sharing with Southlake for improvements to TW King, if necessary •Identify potential grants Town of Trophy Club, Texas March 26, 2019 SKYLINE CREEK IMPROVEMENTS FEASIBILITY STUDY