City of Stockton
FY 23-24 Internal Audit Program
City Council Meeting
July 11, 2023
ATTACHMENT A
Overview
1. Introduction
2. Internal Audit Program Components
3. Internal Audit Program Review
4. Potential Internal Audit Projects
5. Recommended Internal Audit Plan
2 ATTACHMENT A
3 1. Introduction
• The City retained Moss Adams to serve as the designated Internal Audit
or 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
ATTACHMENT A
4 2. Internal Audit Program Components
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
ATTACHMENT A
5 3. Internal Audit Program Review
Focus Accomplishments
• Enterprise Risk Assessments 201 3, 2016, 2019, 2022
• Enterprise Internal Controls Review 201 3, 2023
• Functional Internal Controls Reviews 10 areas for design reviews • Functional Internal Controls Testing 13 areas for compliance tests • Policy Review & Development Ove r 175 ADs and Citywide policies • Performance Projects 21 performance and efficiency studies • Findings Tracked 46 5 findings tracked
• Findings Validated 359 findings validated
• Ethics Hotline Ove r 160 reports since 2007
ATTACHMENT A
6 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
4. Potential Internal Audit Projects
ATTACHMENT A
7 5. 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
ATTACHMENT A
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.
8 ATTACHMENT A