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AUDIT FINDINGS RECOMMENDED FOR ADMINISTRATIVE CLOSE
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RECOMMENDATION
Approve the Administrative Services Department’s list of two audit findings for administrative close.
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Summary
Administrative Services has compiled a list of two audit findings proposed for administrative close. After review and approval by Moss Adams, it is recommended that these findings be administratively closed.
DISCUSSION
Background
The Master Tracker is a master list of all audit findings issued to the City from both internal and external auditors. The City of Stockton currently has 457 audit findings listed on its Master Tracker dating back to 2007; 339 have been validated and closed.
Present Situation
Due to the age and circumstances regarding some of the open audit findings, Moss Adams has allowed the City to utilize a process to administratively close findings that cannot, or should not, be closed by way of the standard Management Response process. Rather than preparing a formal response with supporting evidence, responses to these findings offer an explanation as to why a formal process is not practical or, in some instances, not possible. There are a few reasons as to why a finding cannot, or should not, be closed through a formal process. Some examples are:
- They are finding topics that have since been resolved and have not been repeated in 5 or more years.
- The relationships or third-party services discussed in the findings are no longer in use, so the finding is irrelevant, and risk is no longer a concern.
- The City has since updated the relevant policies, procedures, municipal codes, or Charter language to satisfy the finding.
- The finding was issued by an external auditor who has since validated and cleared the finding through their own process, evidence of which has been provided to Moss Adams.
The Administrative Services Department and Moss Adams have worked together over the last several months to identify and review the following findings proposed for administrative close. We now ask the Audit Committee to approve our recommendation.
Finding #249: Overall, the recruitment process for the city manager position was flawed due to a lack of clear leadership and adherence to provisions of the Request for Proposal and recruitment contract.
Finding #250: The advertised closing date for the recruitment was three weeks after the City Council met to interview candidates and select two finalists. This may have resulted in highly qualified applicants not being considered.
FINANCIAL SITUATION
There is no financial impact to the City from this action.
Attachment A - COS Administrative Close List for October 2021