HomeMy WebLinkAboutAudit Plans - FY19-20 and FY20-21 Annual Audit Plan - 11/26/2019
November 26, 2019
Mayor and City Council:
Attached is the proposed Annual Audit Plan for FY2019-20 and FY2020-21 for the City’s
Independent Internal Audit Program (IIAP). This plan was developed utilizing a risk
assessment guided by defined criterion that included input from department directors,
evaluation of control effectiveness, and local government audit industry trends. This
effort resulted in an extensive list of potential areas for audit within the City.
Staff then prioritized these potential areas based on the risk rating (high, medium, or
low) and developed the proposed audit plan. IIAP staff believes this plan provides
adequate coverage across City departments, programs, and activities; and, is a
responsive audit service to both the Council through the Audit Committee and the
Executive Management.
At the November 7, 2019 meeting of the Audit Committee, the members reviewed and
acted to recommend approval of the FY2019-20 and FY2020-21 Audit Plan to the City
Council. The plan includes a total of 29 audits over the 18-month time period with 11
audits being conducted using internal resources and 18 audits utilizing contracted third-
party firms as follows:
FY2020 – 12 audits
5 compliance
7 performance
FY2021 – 17 audits
3 compliance
8 performance
2 combination (compliance and performance)
4 continuous
As required by the City Code, I am now requesting approval of the proposed plan by
the full Council. I am available to answer your questions and welcome discussion and
your approval.
Respectfully Submitted,
Emmanuel Ogutu, CIA, CFE
Internal Audit Program Manager
2 | PageFY 2019-20 No. Department Program Possible Objective Audit Type Risk Auditor Hours Timeline 1 Budget and Finance Vendor Management To review Vendor Management systems and process to determine that internal controls are adequate, rules and regulations are complied with and related risks are effectively mitigated. Compliance High Contract External Firm Third-Party Firm Jan-Mar 2020 2 City Court Triennial audit To determine whether the City Court follows minimum accounting standards as required by Arizona Supreme Court's Administrative Office of the Courts. Compliance High Use Internal Resources 250 Nov-Jan 2020 3 City Court Revenue management To assess City Court revenue systems and process to determine whether internal controls are adequate and effective and that any waivers are subject to Supervisory approval. Compliance High Use Internal Resources 250 Jan-Mar 2020 4 Fire Department Telestaff Business Process and Internal Control Review To assess internal controls on Telestaff Business Process to ensure they are adequate. Compliance High Contract External Firm Third-Party Firm Jan-Mar 2020 5 Development Services, Economic Development Development Agreement Compliance To review development agreement compliance procedures and processes to ensure these are done in accordance with established rules and regulations and ensure risks are minimized and controls are adequate. Additionally, identify process improvement opportunities. Compliance High Use Internal Resources 180 Apr-Jun 2020 6 Innovation and Technology Information Systems Security To review Information Systems Security architecture across the City to ensure controls are adequate and effective to protect the City's information assets against theft, loss, or damage. Also review adequacy of user access levels to provide assurance on the confidentiality, integrity and availability of the City's assets. Performance High Contract External Firm Third-Party Firm Jan-Mar 2020 FY 2020 Annual Audit Plan - Approved by Council on November 26, 2019
3 | PageNo. Department Program Possible Objective Audit Type Risk Auditor Hours Timeline 7 City Court E-Warrants Program Evaluation To evaluate the City Court's E-warrant process to determine whether it is effective and efficient, and it is designed to ensure minimum risk, maximum benefit and improved usage. Performance High Use Internal Resources 300 Jan-Mar 2020 8 Citywide Asset Management Program Evaluation To assess the efficiency and effectiveness of the City's asset management program. Specifically, review the process of acquisition, classification, tracking, maintenance and retirements of assets and examine the plans for maintenance as well as forecasts on replacement of assets. Performance High Contract External Firm Third-Party Firm Apr-Jun 2020 9 Development Services Code Compliance Program Evaluation To review code compliance at Development Services to ensure effectiveness and efficiency of the code compliance process. Performance Medium Contract External Firm Third-Party Firm Apr-Jun 2020 10 Fire Department Fire Asset Management To assess the management of large assets within the Fire Department to determine whether they are management efficiently and effectively and examine readiness to meet next caller's needs. Performance Medium Contract External Firm Third-Party Firm 11 Fire Department Emergency Management Office Program Evaluation To assess the efficiency and effectiveness of EMO Office's internal controls to minimize risk. Performance Medium Contract External Firm Third-Party Firm Jan-Mar 2020 12 Innovation and Technology Technology Governance Program Evaluation To review and assess the City's Information Systems Governance framework to determine whether the process of acquiring, scoping and implementation of IS projects is efficient and effective and whether the IS governance structure is robust enough to minimize risks, to support City's overall IS strategy as well as assures the protection of the City's information assets. Performance Medium Contract External Firm Third-Party Firm Jan-Mar 2020
4 | PageFY 2020-21 No. Department Program Possible Objective Audit Type Risk Auditor Hours Timeline 13 Human Resources Overtime use and compliance Compliance High Contract External Firm Third-Party Firm Oct-Dec 2020 14 Police Department Records Management System (Hexegon) Program Evaluation Performance High Contract External Firm Third-Party Firm July-Sep 2020 15 Budget and Finance AZSTA contract Compliance A third-party professional services firm will be selected to perform the audit with an objective of reviewing overtime use and compliance to ensure efficiency and effectiveness of overtime process as well as ensure compliance with relevant rules and regulations. A third-party professional services firm will be selected to perform an assessment of the records management system (Hexegon) at Glendale Police Department to ensure efficiency and effectiveness of the system to producing adequate, reliable and complete data. Engage a third-party professional services firm to review AZSTA contract compliance. Compliance Medium Contract External Firm Third-Party Firm July-Sep 2020 16 Citywide HR Employee Relations Program Evaluation To review and assess HR's employee relations program to ensure these are consistence with best practice standards and identify areas of improvement to minimize risks. Performance Medium Use Internal Resources 420 Apr-June2021 17 City Clerk/Citywide Public Records Law Compliance Engage a third-party professional services firm to review public records law compliance to ensure compliance with established rules and regulations. Also, review cycle time for completing public records requests and identify opportunities for improvement. Performance/Compliance Medium Contract External Firm Third-Party Firm Oct-Dec 2020 FY 2021 Annual Audit Plan - Approved by Council on November 26, 2019
5 | Page No. Department Program Possible Objective Audit Type Risk Auditor Hours Timeline 18 Citywide Contract Compliance and Performance Review and evaluate effectiveness and efficiency of contract compliance and determine if contract pricing is a better deal. Performance Medium Use Internal Resources 532 Jan-Mar 2021 19 Citywide Annual Payroll/Timesheets Review To continue to assess internal controls over payroll/Time sheet processing and provide recommendations on how to strengthen those controls Continuous Medium Use Internal Resources Oct-Dec 2020 20 Citywide Cash Handling Review To continue to assess controls around cash handling at various City Departments/Cash points and issue recommendations to management on how to strengthen those controls. Continuous Medium Use Internal Resources Oct-Dec 2020 21 Citywide Purchase Card Review To sample select number of P-card transactions and examine whether usage is in accordance with establish rules and regulations and how best to achieve efficiency in the P-Card processing. Continuous Medium Use Internal Resources Jan-Mar 2021 22 Citywide Travel Policy compliance review To continue to review travel policy compliance and determine whether controls are adequate. Continuous Medium Use Internal Resources July-Sep 2020 23 Citywide Custodial Contract Compliance and Evaluation Select a third-party professional services firm with an objective to assess the efficiency and effectiveness of the custodial contract compliance process to determine if contractors are performing per terms of contract and whether contract management process is handled efficiently. Performance/Compliance Medium Contract External Firm Third-Party Firm Jan-Mar 2021 24 Community Services Community action plan program evaluation Select a third-party professional service firm to assess the efficiency and effectiveness of the community action plan and suggest improvement opportunities. Performance Medium Contract External Firm Third-Party Firm Jan-Mar 2021
6 | Page No. Department Program Possible Objective Audit Type Risk Auditor Hours Timeline 25 Human Resources Position Control Policy Evaluation Select and monitor a third-party professional services firm to assess position control processes to determine efficiency and effectiveness of the process, review adherence to policy and examine completeness, accuracy and reliability of data to reduce risks and minimize errors. Performance Medium Contract External Firm Third-Party Firm Oct-Dec 2020 26 Police Department Police Operations Staffing Analysis Select and monitor a third-party professional service firm to perform an analysis of staffing levels within Police Operations and assess efficiency and effectiveness of operations. Performance Medium Contract External Firm Third-Party Firm July-Sep 2020 27 Transportation Airport operations-Leases; Rates and charges Select and monitor third party firm to review airport operations and assess compliance with FAA and other regulations and propose recommendations as appropriate. Compliance Medium Contract External Firm Third-Party Firm Apr-Jun 2021 28 Transportation Recovery of ROW Damage Claims Review and assess recovery process of ROW damage claims to ensure the process is efficient and effective to minimize risks and enhance operations. Performance Medium Use Internal Resources 420 July-Sep 2020 29 Water Services Storm Water Management Program Evaluation Select and monitor a third-party contractor to assess the efficiency and effectiveness of operations Performance Medium Contract External Firm Third-Party Firm Apr-Jun2021