City Council Receives 2006 Annual Audit Plan

As a result of the Expanded Audit conducted by KPMG on the "Establishment of Internal Audit Function," City Council received the plan to address the six recommendations and took action on the City's 2006 Audit Plan. Chief Internal Auditor, Edmundo Calderon, shared the Internal Audit activities that have been implemented to address the issues identified by the Expanded Audit requested by City Manager Joyce Wilson in September 2004. The Internal Audit Department has prepared the City's 2006 Audit Plan based on the "assignment of risk." The process of preparing the audit plan included identifying the areas that are considered the most important and ensuring that activities with the greatest risk are audited. The areas included in the plan that will be audited were measured according to the following risk factors: management interest in having an area audited, budget risk, strategic risk, reputation risk, compliance risk, high level of decentralization, legal claims, time last audited, and change in management. The scope of the audit will review:

The Audit plan has been broken down into four quarters and will be conducted by the City's Internal Audit department. At the present time, the newly reorganized department consists of the Chief Internal Auditor, a Senior Internal Auditor and 2 staff members. Plans are to increase the department to a total of ten members.

Six Areas Addressed in 2004 Expanded Audit

Recommendations & Actions Taken:
  1. Create an Internal Audit Charter
  2. Establish Internal Audit Committee
  3. Create reporting structure for Chief Internal Auditor (CIA)
  4. Establish a formal set of Policies & Procedures
  5. Establish a "Risk-based" Audit Plan annually
  6. All audit reports must be presented to City Council and/or the Audit Committee (LRC)