City of Killeen Management Audit/Risk-Based Analysis of Selected Areas

Estimated Budget to Deliver Revised Scope of Services

Line Item Description Total Estimated

Cost A Planning and Quality Control $34,708

Line Item Description Total Estimated

Cost B Select Management Audit Areas for Risk-

Based Analysis

1 Capital Outlays (Scope Period FY 2006 through FY 2016): Conduct an analysis of the City's significant capital projects during the period FY 2006 through FY 2016 to determine if fraud and/or gross mismanagement exist and determine: (1) What were the reasons for this dramatic increase in spending? (2) How were these capital projects financed (e.g., bond issuance, federal/state grants, general fund revenues/reserves)? (3) Were there significant cost overruns (change orders due to renovations, etc.)?

$62,492

Line Item Description Total Estimated

Cost 2 Use of Bond Money (Scope Period FY 2002

to FY 2017): Review the City's major bond issuances from FY 2002 to present to determine: (1) Were bond funds spent legally and for the purpose for which the bonds were approved [e.g., were idle funds used for other purposes]? (2) Were funds remaining after project completion, if any, used appropriately and legally?

$84,448

Line Item Description Total Estimated

Cost 3 Inter-Fund Transfers (Scope Period FY 2010

through FY 2016): Review the significant transfer of funds between the enterprise and special revenue funds to determine: (1) Were transfers from restricted funds allowable and legal? (2) Were the transfers authorized? (3) Are the City's policies governing inter-fund transfers adequate to prevent misuse or misallocation of restricted funds?

$32,176

Line Item Description Total Estimated

Cost 4 Pay Increases (Scope Period FY 2014 to FY

2017): Review the City's fiscal planning for the short-term funding and long-term impact of the 3 percent City-wide cost of living adjustment (COLA) and the 8 percent salary increase for civil service positions implemented in June 2014 and October 2014, respectively.

$22,751

Line Item Description Total Estimated

Cost 5 Analyze City/Owner Agreements (Scope

Period FY 2002 through FY 2016): Review the City's City/Owner agreements to determine if the City's participation is in keeping with best practices.

$36,692

Line Item Description Total Estimated

Cost 6 Private Roadway Ownership (Scope Period

FY 2002 through FY 2016): Review City participation, if any, in private roadway maintenance/improvement and compare the City's private roadway ownership and City participation to best practices to assess the overall efficiency of the City's arrangements.

$41,773

Line Item Description Total Estimated

Cost 7 Spending During Post-Recall Period (Scope

November 2011 to May 2012): Review significant expenditures during the six-month period without a fully-seated Council to determine: (1) Did Council ratify expenditures as required? (2) Is there any evidence of fraud or abuse of funds during the period?

$34,892

Line Item Description Total Estimated

Cost C Mid-Audit Briefing to Audit Advisory

Committee $10,092

Line Item Description Total Estimated

Cost D Written Report with Findings and

Recommendations $34,432

Line Item Description Total Estimated

Cost Total $394,456