FY2021-22 Audit Plan Memo
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June 22, 2021 Mayor and City Council: Enclosed is the proposed Audit Plan covering Fiscal Year 2021-22 for the City’s Independent Internal Audit Program (IIAP). The plan includes a total of 14 audits. 6 audits will be conducted using internal resources and 8 audits will be conducted using contracted third-party firms. In developing this plan, IIAP staff conducted a risk assessment guided by a defined criterion, that included input from department directors, evaluation of control effectiveness as well as local government audit industry trends. This effort resulted in an extensive list of potential areas for audit within the City. We then prioritized these potential areas based on the result of the risk assessment and developed the enclosed proposed audit plan. IIAP staff believes this plan provides adequate coverage across City departments programs and activities and recognizes concerns of the Council and Management. This proposed plan was discussed and approved at the June 3, 2021 Council- appointed Audit Committee meeting. As required by the City Code, I am now requesting approval of the proposed plan by the full Council. Respectfully Submitted, Khala Stanfield, MBA Director, Organizational Performance Proposed FY2021-22 Audit Plan City Council June 22, 2021 Department General Risk Theme Audit Area/Possible Audit Objective Internal Resources or External Firm Audit Type Housing - Facilities Management Housing Management and Maintenance Facilities management program evaluation (Housing only); review the process, controls in place and performance to determine efficiency and effectiveness including best practice standards. Review Maintenance process and procedures. External Firm Performance Transportation - Intelligent Transportation Systems (ITS) Intelligent Trans System (ITS) ITS program evaluation to determine the efficiency and effectiveness of ITS including traffic signal and traffic flow operations including outsourcing counts and studies, reporting and incident management and preventive maintenance. Perform limited compliance review. External Firm Performance HR & Risk Management Risk Management training program evaluation Audit of risk management and training program and compliance with City policies and procedures. External Firm Performance Proposed FY2021-22 Audit Plan City Council June 22, 2021 Department General Risk Theme Audit Area/Possible Audit Objective Internal Resources or External Firm Audit Type Engineering Capital Improvement (CIP) Program CIP Program Evaluation to determine the efficiency and effectiveness of CIP process, including CIP planning, delivery, leveraging leading practices, and reporting process. External Firm Performance Budget & Finance Contract Compliance and Performance Review and evaluate effectiveness of contract compliance and performance External Firm Performance & Compliance Innovation & Technology IT Security Perform a review of cyber incident management and disaster recovery process. Evaluate compliance with relevant regulations and standards. Assess how IT is leveraging leading practices. External Firm Performance & Compliance Transportation - Transit City Transit Program City Transit Program Evaluation - Review the transit process to determine efficiency and effectiveness of the transit process including fare collection, performance and compliance with relevant laws and regulations. External Firm Performance & Compliance Proposed FY2021-22 Audit Plan City Council June 22, 2021 Department General Risk Theme Audit Area/Possible Audit Objective Internal Resources or External Firm Audit Type Field Ops - Fleet Management Fleet Management Program Fleet Management Program Evaluation - Departments see approx 40% markup for maintenance; are rates appropriate; are there opportunities to co-source certain services; are policies regarding 'take home' vehicles being followed; policy to rent vs. using an assigned vehicle for in state travel may be more costly; appropriate controls regarding 'pool' vehicles (validation employee is eligible to drive); log tracking of pool vehicles to employees who use them (best practice of predicted miles vs. actual miles). External Firm Performance Proposed FY2021-22 Audit Plan City Council June 22, 2021 Department General Risk Theme Audit Area/Possible Audit Objective Internal Resources or External Firm Audit Type Budget & Finance Arizona Sports and Tourism Authority Contract Annual review of cash management process across the City as part of continuous monitoring. Internal Resources Compliance Budget & Finance Cash Management Annual review of cash management process across the City as part of continuous monitoring. Internal Resources Compliance Budget & Finance Purchasing Cards Review (including data analytics) of purchase card process and analysis of transactions and controls. Internal Resources Performance & Compliance Budget & Finance - Accounting/Grants Payroll process Review (including data analytics) on payroll and timesheets. Internal Resources Performance & Compliance HR & Risk Management Telecommuting Policy and Compliance Review Telecommuting process for compliance with City policies and other relevant regulations. Evaluate monitoring of telecommuting process across the city on a sample basis. Internal Resources Compliance Public Facilities, Recreation and Special Events Park Ranger Program Evaluation Parks Ranger Program Evaluation - Comparative metrics to other jurisdictions (Park Ranger use and effectiveness) Internal Resources Performance