Correction: A Previous version of this article stated that the City Auditor felt that the school district should cover 100% of the costs [regarding the SRO program], however, this was a public comment made in response to the findings of the gap.
Garland, TX — The City of Garland’s Audit Committee convened on September 30, 2025, to discuss the latest audit findings before presenting high-level points to the City Council during last week’s work session. The meeting highlighted several important aspects of city management that residents should be aware of.
Audit Findings Overview
One of the major focuses of the audit was on the management of financial controls and compliance with regulations. The audit revealed several key areas that require attention:
- Inventory Management Issues: The audit found discrepancies in inventory management at Firewheel Golf Park, particularly regarding merchandise and alcoholic beverages. Significant variances were noted between physical counts and inventory records, with some items showing negative balances. In one finding, a total of 201 SKUs were sampled out of a population of 533. Of these, 96 SKUs showed no discrepancies, 84 had item quantity differences between one and ten, 13 had differences between 11 and 25, and eight had discrepancies greater than 25. Furthermore, an inventory transaction report covering January to March 2025 revealed that 133 SKUs carried negative balances, with one item recorded at a low of negative 845. Seven different SKUs were found to have negative balances for one to three consecutive months, predominantly golf balls. These discrepancies were said to be likely attributed to errors in sales or transfer entries in the system, particularly if cashiers sold items under incorrect SKUs.
Alcohol sales are a significant revenue source at Firewheel Golf Park, with around 97,000 drinks sold annually, totaling approximately $415,000. An inventory count of the Branding Iron and Grill for alcoholic beverages, which includes beer, liquor, and wine, showed variances between items in stock and those listed in the inventory system. This inventory included eight types of beer, six types of liquor, and three types of wine. Out of 17 bottled alcoholic SKUs inventoried between both locations, four had no discrepancies, nine had differences of one to ten items, one had a difference between 11 and 15, and three exceeded a 15-item variance. The audit also found that every alcohol brand had negative inventory balances during calendar years 2023 and 2024, with specific brands like Miller Light and Coors Light reaching negative balances of 590 and 1,154 units, respectively. These issues underline the need for improved inventory tracking systems and practices. - Controlled Substances Administration: The audit assessed the handling of controlled substances by the Garland Fire Department and identified several areas of non-compliance with DEA regulations. In 2019, the Garland Fire Department developed an in-house inventory system for tracking controlled substance movements from receiving to stocking ambulances and patient usage. The department, in coordination with area hospital systems, utilizes a patient care system where patient information is recorded. In 2023, the department began using an inventory management system purchased through a vendor, which integrates with the EMS supply distributor. There is also software that tracks the opening and closing of the med vault for each of the station ambulances.
Each ambulance has a secure med vault containing controlled substances necessary for patient care. Each paramedic has a unique five-digit personal identification number tied to their employee ID. Management indicated that med vaults should only be unlocked for specific reasons: daily inventory counts, restocking ambulance supplies, or administering treatment to patients. However, a review of access rights revealed discrepancies, including non-paramedics having access and several employees listed incorrectly in the system. The audit recommended a reevaluation of access for non-paramedics, with management agreeing to restrict access where necessary starting in November. Additionally, a checklist for onboarding and offboarding employees will be developed to ensure accurate access rights across all systems. - Liability Claims Process Enhancements: During the audit period, the City received 1,130 claims against it, with the city accepting liability for approximately 32% of these claims. Claims under $10,000 can be approved by the Risk Management Director, with 325 of these claims paid during the audit scope. Claims greater than $10,000 but less than $100,000 require approval from the Claims Committee, which includes representatives from legal, City Manager, finance, and risk management. There were 34 claims in this category, and claims over $100,000 require approval from the City Council, with two such claims identified during the audit.
In total, 361 claims were paid, amounting to roughly $1.8 million, with the largest claim reaching $133,935. The three departments that had the highest number of paid claims were Sanitation (143 claims), Police (59 claims), and GP&L (26 claims).
The audit also highlighted issues with the claims processing system. Previously, claims received by the City Secretary were not directly entered into the claims software, which caused delays and potential errors. The audit recommended that all claims be delivered directly to Risk Management, eliminating the City Secretary’s office from the claims receipt process. This recommendation remains not implemented, though a new claims intake process was established in May 2023, providing instructions in English, Spanish, and Vietnamese for filing claims.
Management has also confirmed that physical claim forms will now be entered directly into the claims software, ensuring better tracking and accountability moving forward. - Policy Updates Needed: The audit committee noted that many departmental policies have not been updated since 2017. It recommended a comprehensive review and update of policies related to inventory management, claims processes, and operational guidelines to reflect current practices and ensure compliance.
Next Steps for Improvement
The City Manager and staff acknowledged the audit findings and expressed a commitment to addressing the identified issues. The Audit Committee plans to revisit these issues in six months to assess progress and ensure that the city is on track with its commitments to better management practices. The full audio recording of the meeting is available online here.
