City of Stockton Internal Audit Status Report – Moss Adams 12-05-22 | 1 Date: December 5, 2022
To: City of Stockton Audit Committee
From: Moss Adams
Subject: Internal Audit Status Report August 8 through December 5, 2022 Schedule Status:
• Performance Improvement Projects: Current areas of focus include policy development, HR process improvement, and grants efficiency study. • Internal Control Projects: Current areas of focus include grant compliance an
d administration support.
• Basic Internal Auditor Services: Ongoing and on track. Next quarterly findings tracking update is December 2022.
Budget Status:
• Performance Improvement Projects: Total amount invoiced for performance work through October 31, 2022 is $62,268.00 compared to a
to
tal budget of $224,000.00. Budget includes carryover for Procurement Operational Review.
• Internal Control Projects: Total amount invoiced for internal control work through October 31, 2022 is $29,827.00 compared to a total budget of $148,901.00. Budget includes carryover for ERP Internal Controls Review. • Basic Internal Auditor Services: Total amount invoiced through October 31, 2022 is $7,790 compared to a total budget of $30,000.00.
Activities for this Reporting Period:
• Performance Improvement Projects:
o Grants Efficiency Study: Conducted interviews and docume nt
r
eview, developed preliminary findings.
o Fraud, Waste, and Abuse Training: Developed training materials in collaboration with the City.
o Fire Overtime Study: Scheduled kickoff meeting.
o HR Process Improvement: Kicked off engagement, conducted initial interviews, and developed draft recruiting process improvement plan.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 12-05-22 | 2 o Policies: Continued to assist the City with completing outstanding policies and procedures to fill in gaps. Reviewed ten policies and procedures this period. Four policies and procedures were finalized, which resulted in closing 5 related audit findings. o Validation of Responses to Audit Findings: Continued to validate findings reported as complete by City management and update Fin
dings Tracking Report. The majority of remaining audit
findings are related to outstanding policies and procedures. 7 f
indings have been closed this period.
• Internal Controls and Compliance Projects:
o ERP Internal Controls Review: Completed fieldwork, developed draft and final reports.
o Grant Compliance and Reporting Support:
• HUD: Performed initial HUD follow-up review and assisted in response drafting. Prepared plan for next steps.
• Basic Internal Auditor Services: Continued to keep the Audit Committee a
pprised of program status. Continued to monitor the Ethics Hotline.
There were no reports since the last Audit Committee meeting.
Activities for the next Reporting Period:
• Performance Improvement Projects:
o Procurement Operational Review: Project is on hold until January 2023 as a result of staff turnover.
o Grants Efficiency Study: Develop draft and final reports. o Fire Overtime Study: Initiate fieldwork, review documents, and conduct interviews.
o HR Process Improvement: Complete recruitment process
improvement recommendations and continue to support process improvement.
o Fraud, Waste, and Abuse Training: Live and virtual trainin g
sc
heduled for January.
o Policies: Continue to assist the City with completing outstanding policies and procedures to fill in gaps.
o Validation of Responses to Audit Findings: Continue to validate findings reported as complete by City management and update Fin
dings Tracking Report.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 12-05-22 | 3 • Internal Controls and Compliance Projects:
o Grant Compliance and Reporting Support:
HUD: Assist in performing HUD corrective actions (P&Ps a
nd other)
Subrecipient Monitoring: Initiate project.
o Citywide Internal Controls Review: Initiate project.
o Parking Contract Management Audit: Initiate project.
• Basic Internal Auditor Services: Continue to keep the Audit Committee a
pprised of program status. Continue to monitor the Ethics Hotline.
Issues:
• None.
Attachment A