HomeMy WebLinkAbout2020-06-09; City Council; Resolution 2020-107RESOLUTION NO. 2020-107
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE INTERNAL AUDIT PLAN FOR FISCAL YEAR
2020-21
Exhibit 1
WHEREAS, the Council Policy No. 89 internal audit framework sets forth the qualifications,
duties, and powers of the city's internal auditor; and
WHEREAS, the City Council shall review and approve an annual Internal Audit Plan that provides
visibility of the City of Carlsbad's overall internal audit effort.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City Council hereby approves the Internal Audit Plan for fiscal year 2020-21 as
shown in Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 9th day of June 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
~ Hec/(Jr G-omez.
BARBARA ENGLESON, City Clerk Dep, 1
(SEAL) CJ-Fj
Cler✓
June 9, 2020 Item #9 Page 3 of 20
Attachment A
Internal Audits
Fiscal Year
2020‐21
Internal Audit
Plan
June 9, 2020 Item #9 Page 4 of 20
Fiscal Year 2020‐21 Internal Audit Plan
OVERVIEW
The City of Carlsbad’s internal auditor performs independent and objective assurance services to
safeguard city resources and improve city operations. Internal audits help to mitigate risks by
recommending specific improvements to city processes and controls. Potential audits may include
any city department, division, function, or program administered by the city.
The purpose of the annual internal audit plan (audit plan) is to outline audits and other activities the
internal auditor proposes to conduct during the fiscal year. This document serves as the primary work
plan to carry out the responsibilities of the internal auditor. The basis for the plan comes from auditor
observations, inquiries with management, audit requests from the City Council and city management,
and potential areas of risk. The internal auditor’s strategy in developing this plan seeks to identify,
prioritize and manage audits considered important to city operations, programs and systems.
Currently, the Internal Audit Division is comprised of one full‐time internal auditor. The audit plan
considers available staff hours, level of expertise and experience, estimated size and complexity of
audits, time allocated to satisfy continuing professional education requirements, time allocated to
performing audit follow‐up procedures, and use of external consultants/auditors.
The audit plan is a working document. During the year, causes for changes to the audit plan may
include an increase or decrease in audit scope, additional or pressing audit requests, or an excessive
threat to auditor independence. As such, projects initiated in the current year may carry over into the
following fiscal year.
Planned audits are listed on the following page with potential objectives. During the preliminary work
period, the internal auditor will establish familiarity with the department and/or function by
conducting background interviews and research. At that time, audit objectives may be refined and
methodology will be developed.
June 9, 2020 Item #9 Page 5 of 20
Fiscal Year 2020‐21 Internal Audit Plan
Fiscal Year 2020‐21 Planned Audits
Audit Topic Performed
by
Audited Entity Potential Objectives
FY 2019‐20 Carryover
The Crossings
at Carlsbad
Golf Course
Internal
Auditor
The Crossings at
Carlsbad Golf
Course; JC Resorts
Management; City
of Carlsbad
Finance
Department, Parks
& Recreation
Department, and
other
departments as
necessary
To assess JC Resorts Management’s compliance
with the city’s sexual harassment policies and
procedures and other mandated guidelines.
To assess the financial performance of the pro
shop and food and beverage.
To review The Crossings’s overall financial health
against comparable nearby golf courses and the
general golf market to assess financial
sustainability.
To determine whether various city departments
provide adequate oversight of and services to
The Crossings.
Transient
Occupancy
Tax
External
firm
Various hotels as
determined by city
To determine if a hotel is properly reporting and
remitting the tax in compliance with city
ordinance.
City Credit
Cards
Internal
Auditor
Various
departments
To determine whether the city’s credit card
policies and procedures function as management
intended and comply with applicable state and
federal laws.
To assess individual and departmental
transaction, purchase, and issuance compliance.
New for FY 2020‐21
Procurement Internal
Auditor
Various
departments
To assess the city’s compliance with applicable
procurement guidelines.
To evaluate whether the city’s procurement
process is effective and consistent.
Vice Narcotics
Intelligence
Unit (VNIU)
“Buy Fund”
Internal
Auditor
Police Department To perform a cash count of the fund and
reconcile with records.
To determine whether the fund was managed
and accounted for in accordance with authorized
policies and procedures.
Code
Enforcement
Internal
Auditor
Community
Development
Department
(Code
Enforcement
Division)
To assess whether the division has reliable
policies and procedures to support effective
code enforcement.
To evaluate whether a selection of case files
from the most recent three‐year period adhere
to applicable guidelines.
To assess whether the city uses case data and
metrics to provide meaningful information to
management.
June 9, 2020 Item #9 Page 6 of 20