City of Stockton Internal Audit Status Report – Moss Adams 3-13-23 | 1 Date: March 13, 2023
To: City of Stockton Audit Committee
From: Moss Adams
Subject: Internal Audit Status Report December 6, 2022 through March 9, 2023 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 f
indings tracking update is June 2023.
Budget Status:
• Performance Improvement Projects: Total amount invoiced for performance work through March 9, 2023 is $135,147.00 compared to a to
tal budget of $254,106.25. Budget includes carryover for Procurement O
perational Review.
• Internal Control Projects: Total amount invoiced for internal control work through March 9, 2023 is $62,888.00 compared to a total budget of $239,401.25. Budget includes carryover for ERP Internal Controls Review. • Basic Internal Auditor Services: Total amount invoiced through March 9, 2023 is $17,015.00 compared to a total budget of $30,000.00.
Activities for this Reporting Period:
• Performance Improvement Projects:
o Grants Efficiency Study: Developed draft and final report. o Fraud, Waste, and Abuse Training: Provided employee an d
s
upervisor training; councilmember training scheduled for 3/20. o Fire Overtime Study: Kicked off engagement, conducted interviews, received documents and data for analysis.
o HR Process Improvement: Developed draft implementation plan for recruitment process improvement opportunities. Developed draft 30/60/90 day onboarding program. Coordinated demos with NeoGov to support prioritized HR initiatives. Developed a prioritized cost breakdown per module to support future planning.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 3-13-23 | 2 o Policies: Continued to assist the City with completing outstanding policies and procedures to fill in gaps. Reviewed 14 high priority policies and procedures. Two were finalized, which resulted in closing 1 audit finding. We also reviewed 4 non high priority policies and procedures.
o Validation of Responses to Audit Findings: Continued to validate findings reported as complete by City management and update Findings Tracking Report. The majority of remaining audit findings are related to outstanding policies and procedures. Three findings have been closed this period.
• Internal Control and Compliance Projects:
o HUD Support: Continued to support the Economic Development Division in responses to HUD by facilitating the development of policies and procedures.
o Subrecipient Monitoring: Kicked off the engagement, awaiting initial documentation requests.
o Cal VIP Grant Compliance Support: Pending contract from the City.
• Basic Internal Auditor Services: Continued to keep the Audit Committee apprised of program status. Continued to monitor the Ethics Hotline.
There were five reports since the last Audit Committee meeting; 4 reports related to HR matters and were assigned to the HR Director; 1 report was assigned to the City Attorney.
o Fraud, Waste, and Abuse Training: Completed employee and supervisor training; councilmember training scheduled for 3/20.
Activities for the next Reporting Period:
• Performance Improvement Projects:
o Procurement Operational Review: Next steps to be determined per 3/20 Audit Committee meeting.
o Grants Efficiency Study: Project complete.
o Fire Overtime Study: Conduct data analysis, develop draft and final reports.
o HR Process Improvement: Complete recruitment process
improvement recommendations and continue to support process improvement.
o Policies: Continue to assist the City with completing outstanding policies and procedures to fill in gaps.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 3-13-23 | 3 o Validation of Responses to Audit Findings: Continue to validate findings reported as complete by City management and update Findings Tracking Report.
o Solid Waste Vendor Management Follow-up Audit: Initiate project.
o
• Internal Controls and Compliance Projects:
o HUD Support: Work with the Department to provide final documentation to HUD.
o Subrecipient monitoring: Developing portfolio of awards determining subrecipient monitoring requirements and
developing plan to ensure compliance.
o Cal VIP Grant Compliance Support: 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 apprised of program status. Continue to monitor the Ethics Hotline.
Issues:
• None.
Attachment A