REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with Baker Tilly US, LLP for Citywide Risk Assessment, Annual Work Plan, and Internal Audit Work
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The City Auditor's Office submits an annual audit work plan to the City Council for approval. The audit work plan is developed based on the results of a citywide risk assessment. The objective of the risk assessment is to identify departments, offices, areas, units, or processes that pose the greatest risk to the City and then align internal audit resources, where appropriate, to best help the City achieve its objectives in mitigating these risks. It also guides the City Auditor to prioritize the City's potential audit subjects. The audit work plan does not, nor is it intended to, address or provide complete coverage of every City department, division, or system risks. However, over time, with the implementation of audit recommendations, it is expected that risks across City departments and systems will be sufficiently mitigated.
Due to limited staffing in the City Auditor's Office and to assist with audit work under a "co-sourced" model, staff recommends engaging an outside consulting firm to assist in performing the citywide risk assessment and developing the annual audit work plan. It would be of great benefit to the City to have an experienced firm that has in-depth knowledge of internal auditing standards and requirements, years of experience in the field and sharing of best practices, and an understanding of audit approaches and risk-based auditing objectives. Additionally, this allows the City to practice a co-sourced, hybrid model where internal audit work can be outsourced or done in-house with assistance from a consultant.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Request for Proposal (RFP) was conducted for this procurement, with the award recommendation based on "best value." The factors consider...
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