Internal Audit Update
LONG TERM FINANCIAL POLICY AUDIT
SUBCOMMIT TEE
AUGUST 14, 2025
ALAN ALTON
CHIEF FINANCIAL OFFICER
Background
▪ Moss Adams completed a review of Internal Controls
in 2016
▪ Finance Department forms Internal Audit Unit (IAU)
within Financial Reporting Division
▪ Recruited an internal auditor in 2016
▪ Presented audit reports to LTFPA
▪ IAU drafted Audit Management Plan based on Moss
Adams comments
2 Internal Audit Unit
▪ Created a Corrective Action Plan that assessed all the comments from the Moss Adams review
▪ Of the 68 comments, 7 were deemed Highly Critical
▪ The work is highly labor intensive, in some cases
involving policy development or updating, in
addition to audit testing/retesting
▪ Internal Auditor left the City in 2020
3 Lessons Learned
▪ IAU was understaffed
▪ One auditor was tasked with policy development,
testing, and report writing
▪ IAU needed to be in a different department to
provide more independence and have more
authority
▪ Stand alone audit committee
4 Moving forward
▪ Have audit firm review past audit plan and work
to date
▪ Develop a new Corrective Action Plan
▪ Specific item to review this year in addition to
Action Plan
▪ Will require retaining firm for audit testing, policy development and re-testing
5