Title
2027 Audit Plan Review
Presenter:
Natalie Lovell, City Auditor, Office of the City Auditor
Body
Summary:
The 2027 Audit Plan was prepared by the City Auditor and presented to the Audit Committee in June 2026, following a dedicated workshop with citizen members of the Committee on June 2, 2026. The Audit Committee reviewed the plan, provided feedback, and fully supports the final version being submitted for City Council endorsement.
Background:
The 2027 Audit Plan is based on a comprehensive risk assessment conducted by the City Auditor, in accordance with professional auditing standards. As part of this process, input was gathered from City Council, City Administration, Colorado Springs Utilities, Colorado Springs Airport, and other stakeholders.
We aim for a collaborative approach to audit planning. Our goal is to ensure the Audit Plan reflects both organizational risk and leadership insight, while maintaining the independence required by professional standards and City Code. Early engagement helps ensure alignment with organizational priorities and emerging risks.
The resulting Audit Plan servs as the primary work plan for the Office of the City Auditor. Most audits will be conducted by internal staff, though funds may be allocated to external resources when specialized expertise is required.
Some audits are mandated by City Code or City Charter. In addition, the governance model for Colorado Springs Utilities requires certain external reporting responsibilities that have been delegated to the City Auditor. Elective audits are prioritized based on their risk assessment scores, with on the highest-risk items included in the 2027 Audit Plan.
Previous Council Action:
The last formal review of the Annual Audit Plan by City Council occurred in 2025. Beginning in 2025 and going forward Council will review the Annual Audit Plan each year in a Council Work Session for review and endorsement.
Financial Implications:
The 2027 Audit Plan was intentionally developed earlier in the budget cycle than in prior years to ensure that departments and enterprises, particularly Golf and Parking, could incorporate anticipated audit hours and associated costs into their 2027 operating budgets. By finalizing the Audit Plan ahead of the City’s annual budget development process, the Office of the City Auditor provided clearer visibility into expected audit coverage, helping supported entities more accurately plan for audit-related expenditures.
While the 2027 Audit Plan is complete, the Office is still finalizing its detailed Resource Plan for 2027. The early timing of the Audit Plan required the Office to develop preliminary staffing and capacity assumptions sufficient to support risk-based audit selection, while acknowledging that certain elements of the resource model are still being refined. As the City’s broader budget process progresses, the Office will continue to update its resource model, including staffing levels, hour allocations, and productivity estimates, to ensure alignment with both audit priorities and available funding.
The Office anticipates that the final 2027 Resource Plan will continue to build on the improvements made during the 2025-2026 reorganization and strategic modernization efforts. Preliminary estimates indicate that staffing capacity will be sufficient to support the proposed audit hours across the City, Colorado Springs Utilities, Colorado Springs Airport, and City Enterprises, while also maintaining necessary flexibility for emerging risks and unplanned requests. The final resource plan will be incorporated into the City Auditor’s budget submission once fully developed.
City Council Appointed Board/Commission/Committee Recommendation:
The Audit Committee recommends that City Council approve the 2027 Audit Plan as presented.
Stakeholder Process:
The 2027 Audit Plan was developed with input from City Council, City Administration, Colorado Springs Utilities, Airport Administration, and other key stakeholders. The City Auditor also previewed the draft plan with executive leadership to ensure alignment with organizational priorities and emerging risks. The Audit Committee, consisting of two Council Members and three citizen members, reviewed and endorsed the plan during a June 2, 2026, workshop. Once reviewed by City Council, the 2027 Audit Plan will be published on the City Auditor’s website.
Alternatives:
Option 1: Approve the Audit Plan as presented.
Option 2: City Council could direct the City Auditor to make modifications to the Audit Plan.
Recommended Action
Proposed Motion:
Move to endorse the 2027 Audit Plan as provided by the City Auditor and recommended by the Audit Committee.
Summary of Ordinance Language
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