City of Cupertino
FY 23-24 Internal Audit Program
City Council Meeting
September 19, 2023
Agenda
1. Internal Audit Overview
2. Program Review
3. Recommended Internal Audit Plan
2 • The City retained Moss Adams to serve as the
designated Internal Auditor and conduct projects
focusing on:
• Risks
• Internal controls
• Efficiency and effectiveness
• Best practices
• Compliance
• Work is being completed under appropriate industry
standards (IIA, GAGAS, AICPA)
Internal Audit Overview
3 Role of Internal
Audit
4 Source: IIA
Internal Audit Program Components
Tracking &
ReportingCOpportunitiesBProgram InputsA
• Enterprise
Assessments
• Employees and
Residents
• Performance
Metrics
• FWA Hotline
• Risks
• Controls
• Compliance
• Performance
• Findings &
Recommendations
• Corrective Actions
• Implementation
• Validation
Focus Area Status
Enterprise Risk Assessments 2021
Internal Controls Projects Completed 2
Performance/Efficiency Projects
Completed
5 Policies Reviewed 17
Recommendations Delivered 52
Ethics Hotline Reports 6
Recommendations Validated To Come
Internal Audit Program Review
1. Enterprise Risk Assessment: Identify, analyze, and measure risks by the level of inherent vulnerability, the level of preparedness to mitigate them, and the impact such negative events could have on the City should they occur. This assessment serves as management’s and the internal auditor’s basis for determining possible actions for managing and mitigating uncertainty, both on an inherent and a residual basis, and informs the three-year internal audit work program. (20 weeks, $50,000)
2. Citywide Policy Review & Gap Analysis: Inventory City policies in each department, identify gaps, and review policies for opportunities for update and alignment with best practice. Provide a prioritized implementation plan for policy update. Continue to review and provide feedback on fiscal policies at the City’s request. (52 weeks, $40,000)
3. Ongoing Internal Audit Services: Attend Audit Committee and Council meetings; prepare status reports, manage internal audit program, manage FWA hotline, and prepare annual internal audit plan. (52 weeks)
Recommended Internal Audit Plan
The Committee recommends to Council that if additional budget is available, to approve the following project, given the importance of effective grant management in securing external funding:
• Grants Management Performance Audit: Assess the City’s grant policies and procedures, application, reporting, compliance, accounting, controls, and management for efficiency and alignment with best practices. (16 weeks, $35,000)
Audit Committee Recommended Additional Project
9 Questions?
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but nor limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.
Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
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