Title
2017 Audit Plan Approval
Presenter:
Denny L. Nester, City Auditor, Office of the City Auditor
Body
Summary:
The 2017 Audit Plan was prepared by the City Auditor and presented to the Audit Committee in May 2016. The Audit Committee provided feedback to the City Auditor and some modifications were made. The Audit Committee is recommending that the 2017 Audit Plan be approved by City Council at their meeting on July 12, 2016.
Previous Council Action:
An Audit Plan is presented to City Council annually for their approval. Council Member input is considered in the Audit Plan preparation each year.
Background:
The basis for the 2017 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 2017 Audit Plan.
Financial Implications:
The 2017 budget for the Office of the City Auditor will be developed to provide the resources needed to complete the 2017 Audit Plan with some time set aside for special projects that may arise during 2017.
Board/Commission Recommendation:
The Audit Committee recommends that City Council approve the 2017 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 two Council Members and three citizens. The Audit Committee has reviewed the 2017 Audit Plan and is recommending approval by City Council. The 2017 Audit Plan will be 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 2017 Audit Plan as provided by the City Auditor and recommended by the Audit Committee.
Summary of Ordinance Language
N/A