City of Stockton Internal Audit Status Report – Moss Adams 6-5-23 | 1 Date: June 5, 2023
To: City of Stockton Audit Committee
From: Moss Adams
Subject: Internal Audit Status Report May 9 through June 5, 2023 Schedule Status:
• Performance Improvement Projects: Current areas of focus include policy development support, 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 September 2023.
Budget Status:
• Performance Improvement Projects: Total amount invoiced for performance work through June 5, 2023 is $194,530.00 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 June 5 , 2023 is $88,615.00 compared to a total budget of $344,401.25. Budget includes carryover for ERP Internal Controls Review.
• Basic Internal Auditor Services: Total amount invoiced through May 8, 2023 is $24,805.00 compared to a total budget of $30,000.00.
Activities for this Reporting Period:
• Performance Improvement Projects:
o Fire Overtime Study: Developed draft and final reports. o Solid Waste Follow-Up Audit: Conducted kick-off meetings with City and vendors; sent document request lists and scheduled interviews.
o Measure A Performance Audit: Kicked off project, submitted document reques t l
ist.
o P olicies: Continued to assist the City with completing outstanding policies an d p
rocedures to fill in gaps. Reviewed 6 high priority policies and procedures. Once finalized, these will close 11 audit findings. We also reviewed 9 non high priority policies and procedures.
Attachment A
City of Stockton Internal Audit Status Report – Moss Adams 6-5-23 | 2 o Validation of Responses to Audit Findings: Continued to validate findings reported as complete by City management and update Findings Tracking Report. One audit finding was closed in this period; the majority of remaining audit findings are related to outstanding policies and procedures.
• Internal Control and Compliance Projects:
o Subrecipient Monitoring: Met with key stakeholders for development of subrecipient monitoring policy specific to Housing. New policy and templates have been developed that will guide the backlog of monitoring needed. Individuals from Housing at the City are still in review process.
o Cal VIP Grant Compliance Support: Executed contract received. Kickoff meeting with key City stakeholders taking place Monday June 5, 2023. o Internal Controls Review: Kicked off project, submitted document request list. o Parking Contract Management Audit: Project kick-off scheduled for 6-14-23 • Basic Internal Auditor Services: Continued to keep the Audit Committee apprised of program status. Continued to monitor the Ethics Hotline. There were three reports since the last Audit Committee meeting; 2 reports related to HR matters and were assigned to the HR Director; 1 report was assigned to the CFO.
Activities for the next Reporting Period:
• Performance Improvement Projects:
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: 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: Project underway. Develop and execute subrecipient and City monitoring programs.
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