Citywide - IGA Cost Recovery Follow-up Review

C i t y  o f  M e s a  A u d i t o r  |  J a n u a r y  6 ,  2 0 2 6  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intergovernmental Agreements Cost 
Recovery Follow-up Review 
Citywide

I n t e r g o v e r n m e n t a l  A g r e e m e n t s  C o s t  R e c o v e r y  
OBJECTIVES 
The objective of this follow-up was to determine whether select City departments effectively implemented 
the action plans based on the recommendations from the March 2025 Intergovernmental Agreements 
Cost Recovery audit report.  
 
BACKGROUND 
On March 27, 2025, we issued a report on our audit of intergovernmental agreements cost recovery. The 
objective of the audit was to determine whether effective controls are in place for select City 
intergovernmental agreements to ensure costs are recovered in accordance with the applicable agreement 
and any other applicable policies, statutes, and other requirements. The report included two 
recommendations for some City departments to further improve their controls to ensure compliance with 
Management Policy 119 and have written policies and procedures in place. The departments agreed with 
the recommendations and developed action plans to implement the recommended changes.  
CONCLUSION 
Both recommendations have been implemented and are summarized below: 
Recommendations 
Status 
1-1:  To comply with Management Policy 119, management should 
develop and implement a process to ensure all signed and executed 
IGAs are electronically stored and filed with Real Estate Services 
within the Engineering Department.  
 
2-1:  To help ensure costs are fully recovered, departments should 
develop and implement policies and procedures to address the 
following: 
o The process for preparing invoices to ensure the proper 
amount, including ensuring only reimbursable costs, was 
invoiced.  
o The process for tracking payments to ensure all costs have been 
fully recovered. 


The City Auditor’s office provides audit, consulting, and investigative 
services to identify and minimize risk, maximize efficiencies, improve 
internal controls, and strengthen accountability to Mesa’s citizens. We 
serve as an independent resource to City Management and the City 
Council, to provide them with timely, accurate, and objective information, 
assurances, and recommendations pertaining to City of Mesa programs 
and activities. 
Audit Team 
Sherry Thomas, Internal Auditor 
Michelle Hute, Senior Internal Auditor 
City Auditor 
Joseph Lisitano, CPA, CIA 
Mesa City Auditor’s Office 
Phone: 480-644-5059 
Email: auditor.info@mesaaz.gov 
Website: https://www.mesaaz.gov/government/city-auditor 
Copies of our audit reports are available at: 
https://www.mesaaz.gov/government/city-auditor/audits