Title
A Resolution Adopting the Internal Audit Charter of the Office of the City Auditor of the City of Colorado Springs, Effective September 22, 2026
Presenter:
Natalie Lovell, City Auditor, Office of the City Auditor
Body
Summary:
The Internal Audit Charter was prepared by the City Auditor and presented to the Audit Committee on August 20, 2026, following a dedicated workshop with the citizen members of the Committee on July 9, 2026. The Audit Committee reviewed the charter, provided feedback, and fully supports the final version being submitted for City Council for approval.
Background:
The Internal Audit Charter establishes the mandate, authority, and responsibilities of the Office of the City Auditor and is fundamental to the independence and effectiveness of the internal audit function. The Internal Audit Charter reflects requirements outlined in City Charter and City Code, which position the City Auditor as an independent position appointed and supervised by City Council, with unrestricted access to the information, personnel, records, and systems needed to carry out internal audit responsibilities.
The Internal Audit Charter has been updated to align with the 2024 Global Internal Audit Standards, which articulate essential conditions for the governing body to support an effective internal audit function. The 2024 Global Internal Audit Standard 6.2 requires every internal audit function to maintain a formal Internal Audit Charter, approved by the governing body, that documents the mandate, authority, and responsibilities of internal audit. The updated Internal Audit Charter fulfills this requirement and positions the Office of the City Auditor to successfully complete its external quality assurance review/audit (peer review) scheduled for next year, where conformance with Standard 6.2 will be evaluated.
Beyond meeting professional compliance obligations, the updated Internal Audit Charter strengthens governance, transparency, and clarifies the roles of City Council and the Audit Committee in relation to the operation of the Office of the City Auditor. It describes how the City Auditor maintains organizational independence, how audit plans and required annual communications support Council’s oversight role, and how advisory, assurance, and mandated audits are performed in accordance with both City Code and the Standards. The Internal Audit Charter also formalizes expectations related to the annual risk-based audit plan, maintenance of an Internal Audit Strategic Plan, coordination with external auditors, and administration of the City’s Fraud, Waste, and Abuse Hotline.
Approval of the Internal Audit Charter ensures that the City’s internal audit function remains compliant with global standards, preserves the City Auditor’s independence, and provides the assurance, advice, and foresight necessary to strengthen governance, safeguard public resources, and reinforce public trust in the City.
Previous Council Action:
N/A
Financial Implications:
There are no direct financial impacts associated with approval of the Internal Audit Charter.
City Council Appointed Board/Commission/Committee Recommendation:
The Audit Committee reviewed the Internal Audit Charter and unanimously recommended that City Council approve the Internal Audit Charter as presented.
Stakeholder Process:
The Audit Committee reviewed the Internal Audit Charter as part of its regular advisory responsibilities and provided initial feedback during a dedicated workshop on July 9, 2026. The Committee later reviewed the revised document and recommended approval at its August 20, 2026 meeting.
The City Attorney’s Office reviewed the Internal Audit Charter and provided legal input to ensure alignment with City Charter, City Code, and applicable requirements.
City Council first received the draft Internal Audit Charter during a March 2026 lunch briefing. Following that presentation, the draft Internal Audit Charter was shared with Senior Leadership at the City of Colorado Springs, Colorado Springs Airport, and Colorado Springs Utilities to ensure awareness and consistency across the organization.
Alternatives:
Option 1: Approve the Internal Audit Charter as presented.
Option 2: City Council could direct the City Auditor to make modifications to the Internal Audit Charter.
Recommended Action
Proposed Motion:
Move to approve the Internal Audit Charter as provided by the City Auditor.
Summary of Ordinance Language