Title
2015 Audit Plan Approval
Body
From:
Denny L. Nester, City Auditor, Office of the City Auditor
Summary:
The 2015 Audit Plan was prepared by the City Auditor and presented to the Audit Committee in May 2014. The Audit Committee provided feedback to the City Auditor and some modifications were made. The Audit Committee is recommending that the 2015 Audit Plan be approved by City Council at their meeting on November 24, 2014.
Previous Council Action:
An Audit Plan is presented to City Council annually for their approval. Council Member input is considered when the Audit Plan for each year is developed.
Background:
The basis for the 2015 Audit Plan is a risk assessment performed by the City Auditor as required by professional auditing standards. As part of this risk assessment process, the City Auditor considers input from City Council, City Administration, Colorado Springs Utilities Administration, Colorado Springs Airport Administration, and others. This document will serve as the primary work plan for the Office of the City Auditor. Most of the audits listed will be performed by the staff of the office, but some funds may be set aside to contract outside resources when needed.
Some audits are required by City Code or fulfill a responsibility specified in City Charter. Similarly, Colorado Springs Utilities governance model requires some external reporting that has been delegated to the City Auditor. The elective audits are ordered by their risk assessment score from highest to lowest. While the risk assessment model provided ratings on other potential audits, only the elective audits with the highest risk scores are included in this 2015 Audit Plan. Recognizing that the risk assessment process will be conducted annually, the 2016 and 2017 Audit Plans are only shown as audit titles with no details of the actual audits that may be performed.
Financial Implications:
The 2015 budget for the Office of the City Auditor was developed to provide the resources needed to complete the 2015 Audit Plan with some time set aside for special projects that may arise during 2015.
Board/Commission Recommendation:
The Audit Committee recommends that City Council approve the 2015 Audit Plan as presented.
Stakeholder Process:
As mentioned in the Background section above, input from City Council, City Administration, Colorado Springs Administration, Airport Administration, and others were considered during the risk assessment process. The Audit Committee is made up of three Council Members and three citizens. The Audit Committee has reviewed the 2015 Audit Plan and is recommending approval by City Council. The 2015 Audit Plan has been posted on the City Auditor website.
Alternatives:
Option 1: Approve the Audit Plan as presented.
Option 2: City Council could direct the City Auditor to prepare an alternative Audit Plan based on specified criteria.
Option 3: City Council could direct the City Auditor to make modifications to the Audit Plan.
Recommended Action
Proposed Motion:
Move to approve the 2015 Audit Plan as provided by the City Auditor and recommended by the Audit Committee.
Ordinance Language
N/A