HomeMy WebLinkAbout029873 ORD - 06/25/2013Ordinance to approve the Annual Audit Plan for FY 2013 -2014
Whereas, Section 121/2 - 2 (h)(1) of the City Code of Ordinances requires that no less
than thirty (30) days prior to the beginning of each fiscal year, the City Auditor shall
submit an Annual Audit Plan to the Council Audit Committee for review and comment,
after which the plan is to be forwarded to City Council for review and final approval;
Whereas, Section 121/2 - 2 (h) (1) of the City Code of Ordinances provides that the
plan shall identify each audit to be conducted in terms of the department, organization,
service, program, function or policy to be audited and audit objectives to be addressed;
Whereas, the Council Audit Committee reviewed and approved the FY 2013 -2014
Annual Audit Plan at its meeting on June 4, 2013;
Now therefore, be it ordained by the City Council of the City of Corpus Christi,
Texas:
Section 1. That the City Council has reviewed and does approve the Annual Audit Plan
for FY 2013 -2014, copy attached as Exhibit A.
029573
INDEXED
Exhibit A
City of Corpus Christi
City Auditor's Office
Proposed Annual Audit Plan
Fiscal Year 2014
City Auditor's Office
June 4,2013
To: Honorable Mayor and Council Members
Subject: Proposed Annual Audit Plan Fiscal Year 2014
In accordance with Corpus Christi Code of Ordinance, Chapter 12 112, Section 2 (h)1, I am
pleased to present the Annual Audit Plan the plan) for Fiscal Year (FY) 2014. Section 2
requires the City Auditor to submit the plan to the Council Audit Committee for review and
comment thirty (30) days prior to the beginning of each fiscal year.
The FY 2014 plan .incorporates input from City Council Members and information from a
department -level risk assessment survey. The survey considered factors such as financial
impact, internal and external environment changes, complexity, and prior issues. The City
Auditor's Office used professional judgment to rank this input and develop auditable areas
including preliminary audit objectives. This approach provides adequate audit coverage of City
processes and programs in high -risk areas.
Government auditing standards require that we provide independent, objective, fact-based
assessments of the stewardship, performance and cost of policies, programs, and operations
that we audit. Our work is a vital component of the City's effort to maintain citizens' trust and
confidence in the effective, efficient and economic deployment of City resources.
2014 Audit Plan
During FY 2013 the City Auditor's Office saw the resignation of the prior City Auditor and one of
its two staff auditors. As a result, none of the FY 2013 audits have been initiated. Therefore, the
majority of FY 201.3 audit projects have been reclassified as FY 2014 audits. The FY 2014 plan
includes 5 audits and 3 follow -up audits along with one audit carried over from FY 2012. The
plan also includes staff hours for unannounced cash counts, investigations of fraud hotline tips,
and special assignments approved by the Audit Committee.
I look forward to assisting the Audit Committee and City Council in fulfilling their governance
responsibilities to the citizens of Corpus. Christi.
Respectfully,
Arlene Sones, CPA, CIA, CGAP
City Auditor
Exhibit A -2
Proposed FY 2014 Audit Plan
Item
No.
Project
No.
Department
& Audit Area
Audit
Objectives
Estimated
Hours
1
AU14-
001
Financial Services
Hotel/Motel
Occupancy Tax*
Determine if hotels /motels are properly
collecting and remitting all occupancy taxes
owed to the City in compliance with
applicable regulations and guidelines.
885
2
AU14-
002
Financial Services
Warehouse*
Determine if adequate controls are in place
to manage inventories.
685
3
AU14-
003
Municipal Court
Fee Collections*
Determine if adequate controls are in place
for the collections and billing of fees.
785
4
AU14-
004
Airport
Leases
Determine if airport car rental
concessionaires and fixed based operators
are properly reporting and remitting lease
amounts to the City.
785
5
A005 -
MIS
Financial Software
Determine if segregation of duties has been
implemented in the new financial software
systems.
400
6
FU 14 001
Financial Services
Purchasing*
Evaluate management implementation of
prior audit recommendations.
100
7
FU14 -002
Financial Services
Utility Business Office
& Field Operations*
Evaluate management implementation of
prior audit recommendations.
100
8
FU 14 -003
Financial Services
Central Cashiering*
Evaluate management implementation of
prior audit recommendations.
100
9
TBD
Citywide
Perform unannounced cash counts,
investigate allegations of fraud, waste or
abuse, and conduct special assignments
approved by audit committee.
400
Total Estimated Hours
4,240
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1
AU12-
003
Financial Services -
Central Cashiering
Evaluate the adequacy of cash handling
controls over receipts.
500
*This audit was originally scheduled for FY 2013; however, it will be re- classified as FY 2014.
Exhibit A -3
That the foregoing or intance was read for the
reading on this the f! day of
Nelda Martinez
Kelley Allen
Rudy Garza
Priscilla Leal
David Loeb
first time and passed to its second
Jby the following vote:
l<..ii
I...e11 !I
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
That the foregoing ordin nce was read for the second time and passed finally on this
the 07511-)day of , ').-013, by the following vote:
v
Nelda Martinez 1
Kelley Alien
Rudy Garza
Priscilla Leal
David Loeb
PASSED AND APPROVED, this the OC)th
ATTEST:
/6"%a1006---
Armando Chapa
City Secretary
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
Nelda Martinez
Mayor
029873