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04.30.24 Town Council Meeting Presentation Work SessionWelcome to the April 30, 2024, Prosper Town Council Work Session Call to Order/Roll Call Agenda Item 1. Discussion to seek direction on items on the Town Council request list. (MC) Agenda Item 2. Discussion regarding internal controls and business continuity. (BS) Prosper’s Two Big People Challenges 1.Succession- How do we maintain our momentum, productivity, institutional knowledge, skills and effectiveness when turnover occurs? 2.Growth-How do we expand employee count 93% in just six years and still retain our core values, corporate culture, camaraderie, teamwork and strong sense of purpose and direction? Internal Control Initiatives •The Town is in the process of creating a culture of professionalism and strong controls utilizing the COSO Integrated Framework of Internal Controls. •COSO defines internal controls as: “The process, policies and procedures employed by the directors, management and other personnel to achieve the organization’s goals in the areas of operations, compliance and financial reporting” COSO Cube •Five elements all necessary to create a comprehensive system •All elements address all three categories of objectives •All elements must also cut both vertically and horizontally across the organization •Flow of the elements are top down with monitoring activities creating the feedback loop. COSO Principles Control Environment-Principle 4 Points of Emphasis •Principle 4- The organization demonstrates a commitment to attract, develop and retain competent individuals in alignment with objectives. A.Establishes policies and practices B.Evaluates competence and addresses shortcomings C.Attracts, develops and retains individuals D.Plans and prepares for succession Succession Planning/Business Continuity •As a provider of public safety and other essential services, the Town is taking a comprehensive approach to succession planning to include business continuity. •Current and Future Initiatives include: •In-house training to improve competency, leadership skills and consistency throughout Town (i.e. two internal control classes taught to date, outsourcing and contract administration training, leadership training) •Budget emphasis on specialty training and technical skills that will help employees move up in the organization •Annual compensation review and surveys to attract and retain new personnel Succession Planning/Business Continuity •Comprehensive review and revision of administrative and personnel policies to better reflect size of the town. •Many financial related policies have been revised in last two years •Personnel and other employee policies will be reviewed and revised by new HR Director. •Improving documentation of job duties and cross-training of positions •2025 budget will contain funds for technical writer to assist in documenting specific job duties by position •Job descriptions will then be used for both cross -training and improving the job documentation. •Development of Department–Wide Calendars to capture deadlines and workflow needs Succession Planning/Business Continuity •SPF (Single Point of Failure) Analysis for both people and systems •With hiring of full-timer emergency management coordinator: •Enhancement of emergency annexes to assist in disaster recovery. •Table-Top exercise to simulate the failure of one or more IT related systems due to natural disaster or cyber-attack including: •Prioritization of systems •Ability to continue operations using paper or other alternative means including PC based software •Ability to input and restore data as system functionality is restored. The Town Council will reconvene after Executive Session. Reconvene into Work Session Adjourn