City of Cupertino
FY 24-25 Internal Audit Program
Audit Committee Meeting
June 2024
• 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
2 Role of Internal
Audit
3 Source: IIA
Holistic Internal Audit Program Components
Tracking &
ReportingCOpportunitiesBProgram InputsA
• Enterprise
Assessments
• Employees and
Residents
• Performance
Metrics
• Risks
• Controls
• Compliance
• Performance
• Findings &
Recommendations
• Fraud, Waste, and
Abuse Hotline
• Corrective Actions
• Implementation
• Validation
4 5
Internal Audit Program Components
5 Internal Audit Plan
Risks Internal
Controls Compliance Performance
Accounting and financial reporting, asset management, capital programs, compliance, economics and funding, fraud, governance, human resources, internal controls, maintenance and operations, management, operations and service delivery, organization and staffing, processes and procedures, procurement, public safety, risk management, and technology
Functions Components Plan
City Internal Audit Annual
6 Program Review
Focus Accomplishments
• Enterprise Risk Assessments 2021
• Internal Controls Projects Completed 2
• Performance/Efficiency Projects Completed 5
• Policies Reviewed 133
• Recommendations Delivered 52
• Ethics Hotline Reports Received 21 reports
• Recommendations Validated To Come
6 7
Departments Covered
ProjectsDepartment
Procurement (22)
Finance P&Ps (22)
Budget Process Review (23)
Administrative Services
City Clerk
FWA Program (22)City Manager’s Office
Community Development
Communications
Innovation & Technology
Parks & Recreation
Capital Program (22)
Library Construction Audit (23)
Public Works
Enterprise Projects: Risk Assessment (21, 24), Enterprise Leadership (23), Policies and Procedures (24)
1. Grants Management Internal Controls Review Assess the internal controls in place over the City’s grants management activities (including applications, review, administration, and reporting). (16 weeks, $25,000)
2. Special Revenue Fund Process Review Document the
process used for special revenue fund accounting, identify gaps compared to best practices, and conduct testing of prior years’ accounting. (16 weeks, $18,000)
3. Recommendation Validation Process Establishment
Inventory prior internal and external audit recommendations, collaborate with City staff to develop a tracking mechanism and process to report and validate recommendation
implementation. (20 weeks, $10,000)
4. Ongoing Internal Audit Services Attend Audit Committee and Council meetings, prepare status reports, manage
internal audit program, and monitor FWA hotline. ($7,000) Recommended Internal Audit
Projects
8 The material appearing in this presentation is for informational purposes only and is not legal or accounting advice. Communication of this information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials may have been prepared by professionals, they should not be used as a substitute for professional services. If legal, accounting, or other professional advice is required, the services of a professional should be sought.
9 9
• Government Finance Officer’s Association (GFOA)
• GFOA Best Practices Guide on Audit Committees
• Institute of Internal Auditors
• IIA Publication “The Audit Committee: Internal Audit
Oversight”
• U.S. Government Accountability Office (GAO)
• American Institute of Certified Public Accountants
• Association of Certified Fraud Examiners
10 Resources