City of Stockton
FY 23-24 Internal Audit Program
Audit Committee Meeting
May 15, 2023
Overview
1. Introduction
2. Internal Audit Program Components
3. Internal Audit Program Review
4. Potential Internal Audit Projects
5. Recommended Internal Audit Plan
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1. Introduction
• The City retained Moss Adams to serve as the designated Internal Auditor 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 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
5 3. Internal Audit Program Review
Focus Accomplishments
• Enterprise Risk Assessments 2013, 2016, 2019, 2022
• Enterprise Internal Controls Review 2013, 2023
• Functional Internal Controls Reviews 10 areas for design reviews • Functional Internal Controls Testing 13 areas for compliance tests • Policy Review & Development Over 175 ADs and Citywide policies • Performance Projects 21 performance and efficiency studies • Findings Tracked 465 findings tracked
• Findings Validated 359 findings validated
• Ethics Hotline Over 160 reports since 2007
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5. Potential FY 22-23 Internal Audit Projects
1. Fire Dispatch Efficiency Study
2. Grant Management System Process and Control Review
3. P-Card Internal Controls Testing
4. Phase 3 ERP Internal Controls Review
5. Capital Program Process Improvement
6. Business Continuity & Disaster Recovery Internal Audit
7. Contract Audit TBD
8. Audit Findings Validation
9. Policy Update Ongoing Support
10. Ongoing Internal Audit Services
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6. Recommended Internal Audit Plan Timing
# Project Budget 7-9/23 10-12/23 1-3/24 4-6/24
1 Fire Dispatch Efficiency Study $40,000
2 Grant Management System Process
and Control Review $45,000
3 P-Card Internal Controls Testing $30,000
4 Phase 3 ERP Internal Controls Review $30,000
5 Capital Program Process
Improvement $30,000
6 Business Continuity & Disaster
Recovery Internal Audit $40,000
7 Contract Audit TBD $35,000
8 Audit Findings Validation &
Reporting $20,000
9 Policy Update Ongoing Support $25,000
10 Ongoing Internal Audit Services $30,000
Total $325,000
9 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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