Internal Audit

The Division of Internal Audit was created to assist other departments and management in establishing and maintaining policies and procedures that adequately protect the assets of the city and to insure compliance with, and adequacy of, existing internal controls.

Internal Audit partners with departments and management to improve the control environment and to identify and manage risks within their areas. Our goal is to ensure the operations are run efficiently and effectively, assets are safeguarded, policies and procedures are being adhered to, and financial transactions are properly recorded.

Our department is here to guide you in developing procedures and processes as well as performance measurement enhancement in order to capture the impact on our community. We will act as an extra set of eyes to make sure proper controls are in place and working efficiently and effectively; we will also provide guidelines for ethic standards for all city employees, council members, and committee members.

What We Do

Our role is to provide a detailed perspective of the city’s control environment by reviewing financial, operational, compliance and related risks. We work with management to reduce these risks and strengthen internal controls.

Audits

  • Perform independent financial, operational and compliance control
  • Identify areas of risks
  • Review business practices and advise possible areas of improvement
  • Provide feedback on how to improve internal controls
  • Consult with management to develop high ethical standards
  • Assist departments with developing enhanced performance measures
  • Provide management with observations and recommendations that can help to improve operations and strengthen internal controls

How We Do It

Planning

This stage typically includes gathering preliminary background information, review of an ongoing risk assessment, refinement of the audit scope and establishment of a time budget.

Entrance Meeting

At this meeting, Internal Audit discusses our procedures, goals, schedules, scope, and any issues that the auditee may have.

Fieldwork

This stage is typically what is referred to as the audit work. During this stage, we will generally be physically located at the auditee’s location. Through meetings with management and other personnel, we will understand and document the control environment and internal controls over expenditures and revenues, budget and inventory processes, information system and other areas as deemed appropriate.

We select samples of transactions to test controls to ensure they are functioning adequately and look to areas of efficiency. We will discuss all observations and findings as they are documented.

Exit Conference

After completing the fieldwork, the auditor will draft a report to be shared with the auditee at the exit conference. During the conference if there are major variances of opinions, the auditor and audit supervisor will revisit the issue and if necessary amend the report. The report will be issued within two weeks.

Final Report

Once the report is issued, the auditee has between two to four weeks depending upon the magnitude of the findings to respond in writing to Internal Audit. The auditor and audit supervisor will review the responses for approval.

Feedback

At the time the audit is issued, a client survey is presented to management to evaluate the audit work and auditor. We encourage feedback because it can only help to improve the service we provide the city.

Charter

Check out the Internal Audit Charter (PDF) as approved by Lee Garrity.