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APPROVE BY RESOLUTION AN UPDATE TO THE FY 2023-24 INTERNAL AUDIT PLAN
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RECOMMENDATION
It is recommended that the City Council approve by resolution:
1. An update to the Fiscal Year (FY)2023-24 Internal Audit Plan with Moss Adams; and,
2. An Amendment to the FY 2023-24 Annual Budget authorizing a $45,000 budget increase in the City Auditors’ Internal Audit Services Special Services account, transferring $15,000 from the Non-Departmental special services account and appropriating $30,000 from General Fund balance to be offset by Measure A sales and use tax receipts.
It is also recommended that the City Manager be authorized to take necessary action to carry out the purpose and intent of this motion.
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Summary
During the January 29, 2024 Council Audit Committee Meeting, the Committee approved recommending the addition of two new projects to the FY2023-24 Internal Audit Plan. Funds are available in the Non-Departmental Special Services account, and can be transferred to the Auditor’s account, if approved.
DISCUSSION
Background
In July of 2023, with motion 2023-07-11-1201, the City Council approved the FY2023-24 Internal Audit Plan with the City’s Chartered Internal Auditor, Moss Adams, as recommended by the Council Audit Committee. As the year has progressed, and projects have been completed or postponed, the Audit Committee has recommended adding two additional projects to this year’s plan.
Present Situation
With motion 2024-01-29-0303, the Council Audit Committee approved the recommendation to add two new projects to the FY2023-24 Internal Audit Plan with the City’s Internal Auditor. The City Attorney’s Office has requested a best practice review of Public Records Act (PRA) policies and processes, while the Administrative Services Department has requested support with preparing guidelines and development support related to Measure A.
A memo outlining the proposed projects and associated expenses has been included as Exhibit 1 to the Resolution.
FINANCIAL SUMMARY
These projects will add $15,000 for the Public Records Act review and $30,000 for Measure A support to the City’s audit plan for FY2023-24, for a total of $45,000 in additional efforts.
If adopted, the proposed resolution will authorize a budget amendment transferring $15,000 from the City’s Non-Departmental Special Services Account to the City Auditor’s Special Services Account. The budget amendment would also appropriate an additional $30,000 from General Fund Balance, to be offset by Measure A sales and use tax receipts.