REPORT TO AUDIT COMMITTEE
SUBJECT
Title
Accept the City Auditor's Office Report on the Audit of the City's Building Permitting Process
Report
BACKGROUND
Per Section 900 of the City Charter, 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.
The role of the Audit Committee (Committee) is to provide oversight of the City's financial reporting processes, internal controls, and independent auditors. The city entered into a contract with Baker Tilly US, LLP to perform the City's annual risk assessment and using the results of that work, provide recommended projects to make up the audit work plan on an ongoing basis.
DISCUSSION
During 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 ...
Click here for full text