REPORT TO AUDIT COMMITTEE
SUBJECT
Title
Overview of the Annual Citywide Risk Assessment and Proposed 2024-2025 Audit Work Plan
Report
BACKGROUND
Per Section 909 of the City Charter and Chapter 2.29 of the City Code, the City Auditor’s duties and responsibilities include conducting in-depth financial and performance audits, overseeing the City’s performance management system, auditing and approving all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, making reports to the City Council as to the regularity, legality and correctness of such claims, demands or charges. The City Auditor’s Office conducts its work under the auditing standards prescribed by the Institute of Internal Auditors (IIA). The IIA International Standards for the Professional Practice of Internal Auditing (Standards) requires the City Auditor’s Office to “establish a risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals” and consider the input from senior management and a governing board.
DISCUSSION
The role of the Audit Committee (Committee) is to provide oversight of the City’s financial reporting processes, internal controls, and independent auditors. In 2022, the City entered into a contract with Baker Tilly US, LLP to perform the annual risk assessment and using the results of that work, assist with project recommendations to make up the audit work plan for each calendar year. Accordingly, staff will present the results of the risk assessment to the audit committee along with the proposed 2024-2025 audit work plan for input and approval.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Costs associated with the preparation of this report are included in the City’s FY 2023/24 Adopted Operating Budget.
COORDINATION
This report has been coordinated with the City Manager’s Office and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Accept the results of the citywide risk assessment report from Baker Tilly US, LLP and approve the prioritized proposed 2024-2025 audit work plan, and recommend that these reports be forwarded for note and file to the full Council at a future Joint Council and Authorities Concurrent and Stadium Authority Meeting.
Staff
Reviewed and Approved by: David Noce, Audit Manager
ATTACHMENTS
1. City of Santa Clara - Citywide Risk Assessment and 2024-2025 Audit Work Plan
2. City of Santa Clara IA Risk Assessment Audit Plan PowerPoint Presentation