REPORT TO COUNCIL
SUBJECT
Title
Note and File the City Auditor's Office Report on the Audit of the City's Building Permitting Process
Report
BACKGROUND
Per Section 909 of the City Charter, and SCCC Section 2.29.010, 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 to present the results of any audits.
DISCUSSION
In 2022, the City Auditor's Office engaged Baker Tilly US, LLP (Baker Tilly) to conduct an annual citywide risk assessment and prepare an annual audit work plan for the next five years.
As part of the risk assessment, the Auditor's Office and Baker Tilly rated the building permitting process as high risk based on inherent risks and specific information gathered, including:
* Higher frequencies of customer complaints for slow processing.
* Departmental vacancies and turnover due to failed recruitment in a competitive field.
* New system implementation.
* Volatile revenue.
* Increased compliance risk associated with changing building code.
* Ineffective fee management.
Accordingly, the Auditor's Office partnered with Baker Tilly to perform an internal audit of the building permitting process. The objectives of this audit were to:
1) Determine whether the internal controls for the building permitting processes are adequately designed and operating effectively to ensure compliance with the City Code and other regulations.
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