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 resul...
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