Sec. 2-671. - Auditing department; assistants and employees.
Sec. 2-672. - Scope of audits.
Sec. 2-677. - Access to employees, records and property.
Sec. 2-678. - Management response.
Sec. 2-679. - Audit reports to the ARC.
Sec. 2-680. - Report of irregularities.
Sec. 2-682. - Audit follow-up.
Sec. 2-683. - Contract auditors, consultants and experts.
Sec. 2-684. - Quality assurance reviews.
Sec. 2-685. - Review of city contracts.
Sec. 2-671. - Auditing department; assistants and employees.
(a)
The auditing department shall be provided, in the city's annual operating budget ordinance, a departmental budget (subject to available resources) sufficient to carry out the responsibilities and functions established in this chapter.
(b)
The city auditor shall establish an organizational structure appropriate to carrying out the responsibilities and functions of the City Charter and this chapter.
(c)
The city auditor shall have the power to appoint, employ, and remove such assistants, employees and personnel as deemed necessary for the efficient and effective administration of the duties of the office, as consistent with the charter and the city code.
(d)
The city auditor shall report to the mayor and council and shall report weekly to the administrative assistant to the mayor as to the administrative duties of the auditing department.
(e)
There is hereby established an audit review committee ("ARC") to be comprised of seven members. The ARC shall perform the duties and responsibilities as set forth in this chapter. The members shall be as follows: the administrative assistant to the mayor; finance director; budget director; chair, city council finance committee; city council chief of staff or designee; one member of council appointed by the president; and the city treasurer.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-672. - Scope of audits.
(a)
The city auditor shall conduct work in accordance with internal audit and government auditing standards.
(b)
The city auditor shall have authority to conduct financial, performance or other audits of all departments, offices, boards, commissions and agencies of the city in order to independently and objectively determine whether:
(1)
Activities and programs being implemented have been authorized by City Charter or Code, state law or applicable federal law or regulations;
(2)
Activities and programs are being conducted as prescribed by the mayor and council to accomplish the objectives intended by the City Charter and Code, state law or applicable federal law or regulations;
(3)
Activities or programs efficiently and effectively serve the purpose intended by the City Charter, Code, state law or applicable federal law or regulations;
(4)
Activities and programs are being conducted and funds expended in compliance with applicable laws;
(5)
Revenues are being properly collected, deposited and accounted for;
(6)
Resources, including funds, property and personnel, are adequately safeguarded, controlled and used in an effective and efficient manner;
(7)
Financial and other reports are being provided that disclose fairly and fully all information that is required by law, that is necessary to ascertain the nature and scope of programs and activities, and that is necessary to establish a proper basis for evaluating the programs and activities;
(8)
There are adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls which have been established by the mayor and council;
(9)
There are indications of fraud, abuse or illegal acts which need further investigation.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Prior to the beginning of each fiscal year, the city auditor shall submit an annual audit plan to the ARC for review and comment. The plan shall include the proposed schedule for auditing activities of city departments, offices, boards and commissions for the period. This plan and schedule may be amended during the period, after review with the ARC. Additionally, the city auditor may spontaneously initiate and conduct any other audit deemed necessary.
In the selection of audit areas and audit objectives, the determination of audit scope and the timing of audit work, the city auditor shall consult with federal and state auditors and external auditors so that the desirable audit coverage is provided and audit effort is properly coordinated.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
In the event that the city auditor receives a request to perform a special audit not included in the annual audit plan, the city auditor may obtain the approval of the ARC to amend the annual audit plan to reflect the approved modification.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Funds sufficient to carry out the responsibilities specified herein shall be provided through the city's annual operating budget ordinance. The city auditor's performance shall be evaluated annually by the administrative assistant to the mayor and the ARC.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
The city auditor shall retain for a minimum of three years (or longer if so directed by statute or ordinance), a complete file of each audit report and each report of other examinations, investigations, surveys and reviews made under legislative authority. The file shall include audit workpapers and other supportive material directly pertaining to the audit report.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-677. - Access to employees, records and property.
(a)
All officers and employees of the city shall furnish the city auditor with unrestricted access to employees, information and records (including automated data) within their custody regarding powers, duties, activities, organization, property, financial transactions, contracts and methods of business required to conduct an audit or otherwise perform audit duties. In addition, they shall provide access for the city auditor to inspect all property, equipment and facilities within their custody. If such officers or employees fail to produce the aforementioned access and/or information, the city auditor may initiate a search to be made and exhibits to be taken from any book, paper or record of any such official or employee, or outside contractor or subcontractor, except as governed by statute. Further, all contracts with outside contractors and subcontractors shall provide for the auditor access to all financial and performance related records, property, and equipment purchased in whole or in part with governmental funds and facilities, related to the city contract.
(b)
The city auditor shall not publicly disclose any information received during an audit that is considered proprietary in nature (confidential) by any local, state or federal law or regulation.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-678. - Management response.
A final draft of the audit report shall be forwarded to the head of the audited department and the administrative assistant to the mayor for review and comment regarding factual content before it is released. The subject department shall respond in writing and specify agreement with audit findings and recommendations or reasons for disagreement with findings and/or recommendations, plans for implementing solutions to issues identified and a timetable to complete such activities. The response shall be forwarded to the city auditor within 30 days. The city auditor shall include the department's response in the report. If no response is received, the city auditor shall note that fact in the transmittal letter and shall release the audit report. In the case of contracted audits, audits may be released without inclusion of a response. Any subsequent responses shall be distributed to those who received the audit report.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-679. - Audit reports to the ARC.
(a)
Each audit shall result in a written report containing relevant background information and findings and recommendations, and shall communicate results to the ARC.
(b)
The city auditor shall submit each final audit report to the ARC and shall retain a copy as a permanent record.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-680. - Report of irregularities.
If during an audit, the city auditor becomes aware of abuse or illegal acts or indications of such acts that could affect the city government, the city auditor shall report the irregularities to the administrative assistant to the mayor and the ARC. If the mayor or the administrative assistant to the mayor is believed to be party to abuse or illegal acts, the city auditor shall report the acts directly to the ARC. If it appears that the irregularity is criminal in nature, the city auditor shall immediately notify the city solicitor, when appropriate, in addition to those officials previously cited.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
The city auditor shall submit an annual report to the mayor and council within 30 days after the end of the fiscal year, indicating audits completed, major findings, corrective actions taken by department heads, and significant findings which have not been fully addressed by management.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-682. - Audit follow-up.
The city auditor shall follow-up on audit recommendations as practical to determine if administrative managers are implementing corrective action. The city auditor may request periodic status reports from audited entities regarding actions taken to address reported deficiencies and audit recommendations.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-683. - Contract auditors, consultants and experts.
(a)
Within budget limitations, the city auditor may obtain the services of certified public accountants, qualified management consultants, or other professional experts necessary to perform the auditor's duties. An audit that is performed by contract must be conducted by persons who have no financial interests in the affairs of the governmental unit or its officers. The city auditor will coordinate with the director of finance and together monitor auditing performed by public accounting or other organizations employed under contract by the city.
(b)
The city auditor shall play a key role in the selection of the city's external auditor. The city auditor shall recommend a certified public accounting firm for the annual financial audit, subject to review by the ARC and subject to approval of the city council and the mayor.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-684. - Quality assurance reviews.
(a)
The audit activities of the city auditor's office shall be subject to quality review in accordance with applicable government auditing standards by a professional, non-partisan objective group utilizing guidelines endorsed by the Institute of Internal Auditors (IIA) and the National Association of Local Government Auditors (NALGA). In the event that any of the guidelines of IIA or NALGA conflict with any provisions of the Charter or the City Code, the Charter and City Code shall be the applicable standard by which the audit activities are reviewed. A copy of the written report of this independent review shall be furnished to each member of the ARC.
(b)
The quality control review shall determine compliance with government and professional auditing standards and the quality of the audit effort and reporting, including:
(1)
General standards such as staff qualifications, due professional care, and quality assurance; and
(2)
Fieldwork standards such as planning, supervision, and audit evidence; and reporting standards such as report content, presentation, and timeliness.
(c)
The city shall reimburse the costs of the quality control review team from funds budgeted in the city auditor's budget or other in-kind support.
(Ord. No. 03-058(sub 1), § 1, 9-22-03)
Sec. 2-685. - Review of city contracts.
(a)
Authority to audit.
(1)
The city auditor and the director of the city department administering any city contract for goods or services to be provided to the city ("city contract") shall have the right to audit any such contract and all books, documents and records relating thereto.
(2)
The contractor or vendor in each city contract shall maintain all of its books, documents and records relating to the specific contract during the contract period and for three years after the date of final payment.
(3)
The books, documents and records of the city contractor or vendor in connection with each such city contract shall be made available to the city auditor, the city solicitor and the director of the city department administering each such contract within ten days after written request from the city auditor for the same.
(b)
Right to audit. The city auditor shall have the right to audit any city contract for goods or services to be provided to the city, regardless of its monetary size or purpose.
(Ord. No. 06-034, § 1, 6-15-06)