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FISCAL YEAR 2017-18 INTERNAL AUDIT PROGRAM BRIEFING
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RECOMMENDATION
It is recommended that City Council receive the Fiscal Year 2017-18 internal audit program update.
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SUMMARY
Moss Adams serves as the City’s internal auditor. As part of its ongoing responsibilities, each fiscal year Moss Adams meets regularly with the Council Audit Committee and at least annually with the Council to present results of internal audit activities. This staff report covers internal audit activities performed to date for Fiscal Year 2017-18.
DISCUSSION
Background
In September 2013, the City Council approved a contract with Moss Adams to complete an Internal Audit Plan that began implementation of the most critical improvements recommended as a result of an Enterprise Risk Assessment and Enterprise Internal Controls Review. Since the initial internal audit plan, which covered a three-year period, Moss Adams has carried out annual internal audit plans recommended by the Council Audit Committee and approved by the Council.
In July 2017, the City Council approved the Fiscal Year 2017-18 Internal Audit Plan, which consisted of eight activities. Similar to the internal audit activities of the previous years, this plan also addresses a variety of operational facets of the City, including policies, procedures, controls, and performance.
Present Situation
Since 2013, a wide range of internal audit activities have been completed. These activities have addressed risks, internal controls, compliance, and performance. A summary of internal audit activities accomplished to date is provided below.
• Enterprise Risk Assessments 2013 and 2016
• Enterprise Internal Controls Review 2013
• Functional Internal Controls Reviews 7 areas for design reviews
• Functional Internal Controls Testing 6 areas for compliance tests
• Policy Review and Development Dozens of ADs and citywide policies
• Performance Projects Diversity studies, performance metrics
• Findings Tracking Over 300 findings tracked
• Ethics Hotline Over 100 reports since 2007
As part of the Fiscal Year 2017-18 Internal Audit Plan, Moss Adams performed a variety of activities. A summary of internal audit activities for FY 2017-18 is provided below.
• Capital Project Closeout 5 recommendations
• Performance Dashboard Updating dashboard
• System Access Controls Testing 4 recommendations
• Purchasing and AP Controls Testing 16 recommendations
• Procurement Diversity Study 4 recommendations
• Policy Improvement Support Ongoing
• Travel Expense Controls Testing Ongoing
• Process Improvement Ongoing
Staff recommends that Council receive the FY 2017-18 Internal Audit Program Briefing presented by Moss Adams during the May 15 City Council meeting.
FINANCIAL SUMMARY
There is no financial impact related to this item.