TO: Honorable Mayor and City Council FROM: Joe Rois,
City Auditor
SUBJECT: Biennial Peer Review of the DATE: July 19, 20 23 City Auditor’s Office
RECOMMENDATION
Approve the agreement with the Association of Local Government Auditors (ALGA) to perform an audit of the City Auditor's Office for Fiscal Year 2021-22 and FY 2022-23, pursuant to the peer review guidelines of ALGA, in exchange for reimbursement of expenses for the audit team and the provision of reciprocal audit services by the City Auditor's Office.
BACKGROUND
City Charter Section 805.2 requires the City Council to contract with an independent audit firm, which has no other contracts with the City, to conduct a performance audit of the City Auditor's Office at least every two years. An audit team associated with ALGA performed the last audit in San José two years ago.
The ALGA peer review provides a mechanism for skilled and qualified audit personnel to perform audits of other local government audit organizations. ALGA is prepared to send a team of two government auditors to conduct an audit of the San Jose City Auditor's Office beginning October 23, 2023.
The objectives of the review will be to determine whether, during the period (July 1, 2021 to June 30, 2023), the San Jose City Auditor’s internal quality control system was suitably designed and operating effectively to provide reasonable assurance of complying with applicable Generally Accepted Government Auditing Standards issued by the Comptroller General of the United States.
The peer review team will select an d review several audits the City Auditor issued in Fiscal Years 2021- 22 and 2022-23, and submit a written report of the results to the City Council.
COST IMPLICATIONS
As a recipient of an ALGA peer review, the City of Sa n Jose incurs two obligations. First, the City must pay for the travel, lodging, meals, and other expens es of the audit team. The City Auditor's Office estimates that these expenses will be approximately $5,000. The City will not be charged for the audit team's time. Second, the San José City Auditor's Office will be committed to providing up to two auditors to participate in similar peer reviews at another jurisdiction within the next two years.
Joe Rois
City
Auditor
0789M
COUNCIL AGENDA: 8/22/2023
ITEM: 2.7
FILE NO: 23-1075