City of Stockton
FY 22-23 Internal Audit Program
Audit Committee Meeting
June 13, 2022
Attachment A
Overview
1. Introduction
2. Internal Audit Program Components
3. Internal Audit Program Review
4. Potential I nternal Audit Projects
5. Recommended Internal Audit Plan
2 Attachment A
3 1. Introduction
• The City retained Moss Adams to serve as the designated Internal Audit
or and conduct projects focusing on:
o Risks
o Internal controls
o Efficiency and effectiveness
o Best practices
o Compliance
• Work is being completed under appropriate industry standards 3 Attachment A
4 2. Internal Audit Program Components
4 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
Attachment A
5 3. Internal Audit Program Review
Focus Accomplishments
• Enterprise Risk Assessments 201 3, 2016, 2019, 2022
• Enterprise Internal Controls Review 201 3
• Functional Internal Controls Reviews 10 areas for design reviews • Functional Internal Controls Testing 13 areas for compliance tests • Policy Review & Development O ver 175 ADs and Citywide policies • Performance Pro jects 16 performance and efficiency studies • Findings Tracked 45 7 findings tracked
• Findings Validated 3 47 findings validated
• Ethics Hotline Ov er 150 reports since 2007
5 Attachment A
6 5. Potential FY 22-23 Internal Audit Projects
1. Citywide Internal Controls Review
2. Fraud, Waste, and Abuse Training
3. Parking Contract Management Performance Audit
4. HR Process Improvement Support
5. S
olid Waste Vendor Management Audit Update
6. Fire Department Overtime Study
7. Grants Management Efficiency Study
8. Audit Findings Validation
9. Policy Update Ongoing Support
10. Ongoing Internal Audit Services
11. P
ayroll Internal Controls Review
Items in italics are recommended
7 Attachment A
7 6. Recommended Internal Audit Plan Timing
# Project Budget 7-9/22 10-12/22 1-3/23 4-6/23
1 Citywide Internal Controls Review $45,000
2 Fraud, Waste, and Abuse Training $25,000
3 Parking Contract Management
Performance Audit $35,000
4 HR Process Improvement Support $35,000
5 Solid Waste Vendor Management
Audit Update $30,000
6 Fire Department Overtime Study $35,000
7 Grants Management Efficiency Study $45,000
8 Audit Findings Validation &
Reporting $25,000
9 Policy Update Ongoing Support $20,000
10 Ongoing Internal Audit Services $30,000
Total $325,000
9 Attachment A
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.
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Attachment A