City of Stockton Internal Audit Status Report – Moss Adams 5-8-23 | 1 Date: May 8, 2023
To: City of Stockton Audit Committee
From: Moss Adams
Subject: Internal Audit Status Report March 9 through May 8, 2023 Schedule Status:
• Performance Improvement Projects: Current areas of focus include policy development support, fire overtime study, Measure A performance audit, and solid waste contract audit . • Internal Control Projects: Current areas of focus include internal controls review and grant compliance and administration support.
• Basic Internal Auditor Services: Ongoing and on track. Next quarterly findings tracking update is June 2023.
Budget Status:
• Performance Improvement Projects: Total amount invoiced for performance work through May 8, 2023 is $171,9900.00 compared to a total budget of $254,106.25. Budget includes carryover for Measure A Performance Audit.
• Internal Control Projects: Total amount invoiced for internal control work through May 8 , 2023 is $85,796.00 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 May 8, 2023 is $22,140.00 compared to a total budget of $30,000.00.
Activities for this Reporting Period:
• Performance Improvement Projects:
o Fraud, Waste, and Abuse Training: All training complete. o Fire Overtime Study: Conducted initial analysis and provided preliminar y o
bservations to City for review.
o HR Process Improvement: Final planning and implementation documents have been sent.
o Solid Waste Follow-Up Audit: Scheduled kick-off meeting. o Measure A Performance Audit: Kicked off project, submitted document reques t l
ist.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 5-8-23 | 2 o Policies: Continued to assist the City with completing outstanding policies and procedures to fill in gaps. Reviewed 4 high priority policies and procedures and 3 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.
• Internal Control and Compliance Projects:
o HUD Support: Drafted final response letter to HUD. Finalized Environmental Review Policies and Procedures, Environmental Review Standards, and Floodplain Management Policy and Procedure.
o Subrecipient Monitoring: Met with key stakeholders for development of subrecipient monitoring policy specific to Housing. New policy in development that will guide the backlog of monitoring needed.
o Cal VIP Grant Compliance Support: Pending contract from the City. o Internal Controls Review: Kicked off project, submitted document request list. o Parking Contract Management Audit: Kicked off project. • Basic Internal Auditor Services: Continued to keep the Audit Committee apprised of program status. Continued to monitor the Ethics Hotline. There were thirteen reports since the last Audit Committee meeting; 3 reports related to HR matters and were assigned to the HR Director; 10 reports were assigned to the City Attorney.
Activities for the next Reporting Period:
• Performance Improvement Projects:
o Fire Overtime Study: Develop draft and final reports. 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 Findings Tracking Report. o Solid Waste Vendor Management Follow-up Audit: Kick-off project, conduct fieldwork.
o Measure A Performance Audit: Conduct fieldwork.
• Internal Controls and Compliance Projects:
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: Conduct fieldwork. o Parking Contract Management Audit: Conduct fieldwork. • Basic Internal Auditor Services: Continue to keep the Audit Committee apprised of program status. Continue to monitor the Ethics Hotline. No issues.
Attachment A