FY18-19 Audit Plan (No Ordinance)City Auditor’s Office
Proposed Internal Audit Plan for FY 2018-19
Description Objectives Estimated
Hours
1. Economic Development
(This is a significantly important function for the City.
Attracting major businesses to the City generates
economic impact, additional jobs and contributes to
welfare of the City.)
1. To evaluate process and
strategy to pursue
Economic Development,
2. Determine adequacy and
effectiveness of controls,
and
3. Verify compliance with
laws, policies, and
regulations.
350
2. Accounts Payable
(The City processes over $300 million through the
Accounts payable process. Having effective internal
controls over this process is critical.)
Determine adequacy and
effectiveness of controls.
350
3. Procurement
(The City processes over $300 million through the
Procurement process. Having effective internal controls
over this process is critical.)
Determine adequacy and
effectiveness of controls.
350
4.
Capital Project Administration and Compliance on
Selected Project
(The City has budgeted $500 million for Capital Projects.
This process requires working with several regulations
and policies. Magnitude of amount committed to each
project requires existence of proper controls.)
1. Determine adequacy
and effectiveness of
controls,
2. Verify compliance with
laws, policies, and
regulations., and
3. Evaluate efficiencies of
process.
300
5. Roadway Quality Management
(Roadways represent a significant infrastructure asset.
Proper maintenance and replacement of this asset is
essential for quality of Citizens’ lives. In addition,
untimely maintenance could result in exponential
additional costs for the City to rectify the damage
occurred.)
1. Determine adequacy
and effectiveness of
controls,
2. Verify compliance with
laws, policies, and
regulations, and
3. Evaluate efficiencies of
process.
350
EXHIBIT 2
Description Objective Estimated
Hours
6. Utility Cuts Audit
(Utilities need to dig roadways for installing their
infrastructure. If the repairs to roadways is not
performed adequately, it impacts quality of roadways.)
1. Determine adequacy
and effectiveness of
controls, and
2. Verify compliance with
laws, policies, and
regulations.
250
7. Water Loss Audit
(Water Department could lose substantial quantity of
water they produce during distribution process. This
loss could be attributed to water leaks or faulty meters.
There are methodologies established by American
Water Works Association to perform this audit.)
Determine adequacy and
effectiveness of controls.
200
8. DME Energy Management Office Effectiveness
(Energy Management Office trades electricity. Several
City Council members have shown concerns with this
operation. Since several million dollars in trades are
made in this office, evaluation of the risks involved and
adequacy of controls is necessary.)
Determine adequacy and
effectiveness of controls.
300
9. Police Property Room
(This operation stores evidence, confiscated drugs, cash,
guns and other properties. Due to the nature of
properties stored and the significance of their value for
underlying cases, having proper controls in place is
critical.)
1. Determine adequacy
and effectiveness of
controls.
2. Verify compliance with
laws, policies, and
regulations.
250
10. Police Overtime
(The Police Department spends an estimated $1.5
million annually on overtime. This audit will review
internal controls and efficiency of managing Police
overtime)
Determine adequacy and
effectiveness of controls.
350
11. Ethics Board Support
(City Auditor is charged by the Ethics Ordinance to
provide administrative support to the Ethics Board.)
Administrative Support
200
12. Fraud, Waste, and Abuse Cases
(The City Auditor is responsible for investigating
complaints received on fraud, waste, and abuse hotline.)
Investigations
250
Additional options if the City Council Does not accept any of the above audits:
Description Objectives Estimated
Hours
1 Payroll Administration
(FY 2018-19 budgeted personnel services total $166
million. These expenditures are processed through the
City’s payroll system.)
Evaluate internal controls
including compliance with
policies, procedures, and
laws.
350
2 Grants Management
(The City received $125 million in grants from State and
Federal governments. Compliance with grant conditions
is critical for continuing this revenue source.)
Evaluate internal controls
including compliance with
policies, procedures, and
laws.
300
3 Franchise Fees Audit
(The City’s franchise fees revenue is expected to be
$17.8 million for FY 2018-19. This revenue is governed
by the relevant City ordinance.)
Compliance with City
Ordinance.
350
4 Risk Management Audit
(The City’s risk management function ensures that the
City is properly protected from unforeseen risks. Having
effective risk management is essential to prevent future
losses.)
Evaluation of effectiveness
of the function.
350