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City Council
Staff Report
From: City Auditor
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: June 16, 2025
Report #:2505-4756
TITLE
Policy & Services Committee Recommends Approval to Amend the City Auditor Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact; CEQA - Not a Project
RECOMMENDATION
The City Auditor and the Policy & Services Committee recommend City Council approve the amendment of the FY 2024 and FY2025 Task Orders to realign the authorized budgets with a net zero impact overall:
•FY 2025 Task 4.32: CSD Equipment and Materials Inventory Management reduced by $20,000
•FY 2024 Task 4.25: Emergency Preparedness – Wildfire increased by $5,000 •FY 2024 Task 4.28: Dispatch Center Assessment increased by $15,000
BACKGROUND
In accordance with our agreement with the City, Baker Tiily is required to conduct recurring activities each year. Task 4: Execute the Annual Audit Plan comprises the majority of our budget and time. Specific audit task orders are approved annually by the Council and executed by the Policy & Services Committee (P&S) Chair as the Project Manager for the Baker Tilly contract as stipulated in the contract terms.
ANALYSIS
The Office of the City Auditor (OCA) presented the recommended task order changes to the Policy & Services Committee on May 13, 2025. The Committee unanimously recommended that the City Council approve the amendments to the FY 2024 and FY 2025 Task Orders.
For FY 2024, two audit activities, Task Order 4.25: Emergency Preparedness (Wildfire) Audit and Task Order 4.28: Dispatch Center Assessment were included as part of the Annual Audit Plan.
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Both of these audits required a high degree of complexity in terms of research and analysis. The approved budgets for executing these task orders was not sufficient. The Office of the City Auditor wrote off some expenses for both of these projects. However, as these projects had extended reporting periods necessitating multiple management reviews and extending project work into 2025, the Office of the City Auditor is seeking to transfer unused funds from an FY 2025 Task Order, Task Order: 4.32 CSD Equipment & Materials Inventory Management Audit, to defray these additional costs. No change to the overall FY2025 budget is requested. •Task 4.25: Emergency Preparedness (Wildfire) – increase budget by $5,000 •Task 4.28: Dispatcher Center Assessment – increase budget by $15,000 •Task 4.32: CSD Equipment & Materials Inventory Management – reduce budget by $20,000
FISCAL/RESOURCE IMPACT
Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY2024 and FY2025 Operating Budgets for the Office of the City Auditor.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: Task Orders 4.25, 4.28, and 4.32
APPROVED BY:
Kate Murdock, City Auditor