HomeMy WebLinkAbout2022-08-16; City Council; Resolution 2022-207RESOLUTION NO. 2022-207
A RESOLUTION OF THE CITY COUNPL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE FISCAL YEAR 2022-23 INTERNAL AUDIT PLAN
WHEREAS, the city's internal audit manager performs independent and objective assurance
services to safeguard city resources and improve city operations; and
WHEREAS, the services provided may include internal audits of any city department, division,
function or program; and
WHEREAS, as required by City Council Policy No. 89, the internal audit manager has presented
a Fiscal Year (FY) 2022-23 Internal Audit Plan (Attachment A) for the City Council's review and approval;
and
WHEREAS, the purpose of the FY 2022-23 Internal Audit Plan is to outline internal audits and
other value-added engagements the internal audit manager proposes to conduct during the fiscal year;
and
WHEREAS, the FY 2022-23 Internal Audit Plan includes information about the basis for the audit
engagements selected, preliminary objectives and the consideration of resources; and
WHEREAS, once approved, the FY 2022-23 Internal Audit Plan will serve as the operating
roadmap for the city's internal audit manager.
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 approves the FY 2022-23 Internal Audit Plan as shown in
Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 16th day of August, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
� FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
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Attachment A
Fiscal Year 2019-20 Internal Audit Plan
Fiscal Year
2022-23
Internal Audit
Plan
(city of
Carlsbad
Attachment A
Fiscal Year 2022-23 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 improvements to the city’s internal controls and governance, risk, and compliance
processes. Potential audits may include any city department, division, function, or program
administered by the city.
The purpose of the annual internal audit plan is to outline audits and other value-added engagements
the internal auditor proposes to conduct during the current fiscal year. This document serves as the
primary work plan to carry out the responsibilities of the internal auditor. The basis for the audit plan
comes from auditor observations, inquiries of management, audit requests from the City Council and
senior management, and programs or processes with inherently higher risk levels. The internal
auditor’s strategy in developing this plan seeks to identify, prioritize, and manage audits important to
city operations, programs, and systems.
Currently, the Internal Audit Division is comprised of one full-time internal auditor. The internal audit plan considers available staff hours, level of expertise and experience, the 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 internal 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 a threat
to auditor independence. As such, projects initiated in the current year may carry over into the
following fiscal year.
The following page identifies the list of prioritized internal audit engagements for FY 2022-23, along
with their preliminary objectives. At the beginning of each engagement, the internal auditor will
establish familiarity with the department, function or process identified for audit. During that initial
period, audit objectives may be refined, and the methodology will be established.
{city of
Carlsbad
Attachment A
Fiscal Year 2022-23 Internal Audit Plan
Fiscal Year 2022-23 Internal Audit Engagements
Entity, Function,
Program or
Process to Audit
Type of
Engagement
Primary
Stakeholder/Audit
Lead
Preliminary Objectives
Carryover from FY 2021-22
Procurement Internal Audit Various
departments/
Internal Audit
Manager
•To assess the city’s compliance with
applicable procurement guidelines.
•To evaluate whether the city’s
procurement process is effective and
adhered to.
Vice Narcotics
Intelligence Unit
(VNIU) “Buy
Fund”
Internal Audit Police
Department/Internal
Audit Manager
•To determine whether the fund was
managed and accounted for in
accordance with authorized policies
and procedures.
New for FY 2022-23
Transient
Occupancy Tax
Agreed Upon
Procedure
Various hotels as
determined by
city/External Audit
Firm
•To determine if hotels are properly
reporting and remitting occupancy
taxes in compliance with city
ordinance.
Revenue Audit Internal Audit Finance
Department/Internal
Audit Manager
•Evaluate the city’s receipt and
recordkeeping associated with its
transient occupancy tax revenues.
Payroll Audit Internal Audit Human
Resources/Finance
Department/Internal
Audit Manager
•Evaluate the city’s payroll
recordkeeping and data entry.
•Evaluate the city’s segregation of
duties.
Business
Application User
Access
Internal Audit Information
Technology
Department/Internal
Audit Manager
•Evaluate the city’s management of
user access across its enterprise
resource planning systems and
software applications.
{city of
Carlsbad