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FISCAL YEAR 2027 INTERNAL AUDIT PLAN
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RECOMMENDATION
Review and approve the proposed Fiscal Year 2027 Internal Audit Plan.
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Summary
As required by the City Charter, the City Internal Auditor should develop an annual internal audit plan (Attachment A) and provide this plan to the Audit Committee (Attachment B) and the City Council for approval.
DISCUSSION
Background
In alignment with Generally Accepted Government Auditing Standards (GAGAS), as established by the Government Accountability Office, the risk assessment was designed to obtain a sufficient understanding of the City’s departments, operations, internal controls, and external environment to identify areas where the risk of inefficiency, noncompliance, fraud, waste or abuse is greatest and where audit coverage would provide the highest value to the City.
The following risks were assessed: operational, financial, compliance, technology and data, and reputational. Risk information was developed using multiple sources to enhance completeness and reliability, including:
• Interviews with the Directors of all 19 city departments, the two Deputy City Managers, and the City Manager.
• A standard questionnaire that aimed to understand departmental goals, priorities, risks, pain points, control deficiencies, and improvement opportunities.
• Review of financial and operational data, including the City’s Budget and ACFR.
• Consideration of prior audit results
• High-level consideration of internal control practices (i.e., external audits).
Present Situation
The draft of the internal audit plan is being presented for consideration. (Attachment A)
FINANCIAL SUMMARY
Costs to execute the proposed internal audit plan are covered by the contract between the City and UHY Inc., the third-party contractor engaged to act as the City’s Internal Auditor.
Attachment A - Fiscal Year 2027 Internal Audit Plan
Attachment B - GFOA Best Practices