Item 8.2: Approve Agreement
for Internal Audit Services
July 8, 2025
Sarah Schoen, Director of Finance/Treasurer, Finance Department Amy Pope, Finance Manager, Finance Department
Summary
2Approve Agreement for Internal Audit Services
Internal audit program overview.
Independent firm benefits.
Procurement process.
Recommended firm overview.
Next steps.
Internal Audit Program
3Approve Agreement for Internal Audit Services
Proactive review.
Independent.
Reviews and provides recommendations.
Evaluates internal control.
Assesses compliance.
Internal Audit Program
4Approve Agreement for Internal Audit Services
Develop
Understanding
of City
Develop
Council Policy
for Program
Risk
Assessment
Perform Audit
Activities
Report Results &
Recommendations
Follow-up on
Prior Audits
Independent Firm
5Approve Agreement for Internal Audit Services
Ensures objectivity and independence.
Adheres to recognized auditing standards.
Offers broad subject matter expertise.
Scalable support to align with City’s evolving needs.
Cost effective compared to hiring internal staff.
Procurement Process
6Approve Agreement for Internal Audit Services
Staff issued Request
For Proposal in
October 2024
Ten proposals
received
Five firms
interviewed
Evaluation criteria:
experience, personnel,
qualifications, fees,
interviews, and RFP
compliance
Recommended Firm
7Approve Agreement for Internal Audit Services
Macias Gini & O’Connell LLP .
Founded in 1987.
Over 700 professionals, 125 in government practice.
Experienced in public sector audits and advisory.
Clients include major California cities and counties.
8Approve Agreement for Internal Audit Services
Next Steps
Establish Council Policy for Program.
Perform entity-wide risk assessment.
Initial program audit: Transient occupancy tax.
Recommended Action:
Approve Agreement for
Internal Audit Services
July 8, 2025