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CC-- (1) Creation of a City Council Ad Hoc Subcommittee to Work with City Staff to Review the Moss Adams, LLP Internal Audit Reports and Review Staff’s Recommendations for Improvements to the City’s Internal Controls; and (2) Appointment of Two City Council Members Thereto.
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Meeting Date: April 8, 2019
Contact Person/Dept: Onyx Jones/Finance
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (04/02/19)
Department Approval: Onyx Jones, Chief Financial Officer (04/01/19)
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RECOMMENDATION
Staff recommends the City Council (1) create a City Council Ad Hoc Subcommittee to work with City staff to review the Moss Adams, LLP internal auditing reports and review Staff’s recommendations for improvements to the City’s internal controls; and (2) appoint two City Council Members thereto.
BACKGROUND/DISCUSSION
Internal audits assist the City in the efficient use of resources by providing analysis and recommendations for improved operations and stronger internal controls. The City has hired Moss Adams, LLP as an independent audit firm to perform internal audit services in accordance with applicable industry standards. The Finance Department recognizes that effective internal controls result in best management practices for financial operations.
Moss Adams is in progress of performing a variety of reviews that include evaluating the adequacy of segregation of duties, transfers of accountability, supervisory reviews and approvals, reconciliations, physical safeguards over cash, checks and critical forms (e.g. receipts, permits and licenses) and existence of written procedures. This review also incorporates an enterprise risk assessment of City operations including grants, payroll and accounts payable.
Staff recommends the City Council create an Ad Hoc Subcommittee to work with City Staff to review the Moss Adams reports and review Staff’s recommendations for improvements to the City’s internal controls. There are six audit reports currently being created by Moss Adams, LLP that will be available for the Ad Hoc Subcommittee’s review based on the timeline below:
|
Type of Audit Report |
Expected Review Date |
|
Grant Management Internal Controls Report |
Late April 2019 |
|
Fraud, Waste and Abuse Program Summary Report |
Late April 2019 |
|
Enterprise Internal Controls Review |
June 2019 |
|
Cash Handling Internal Controls Report |
June 2019 |
|
Enterprise Risk Assessment |
September 2019 |
|
Fleet Efficiency Study |
October 2019 |
FISCAL ANALYSIS
There is no fiscal impact to form a City Council Ad Hoc Subcommittee.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Create a City Council Ad Hoc Subcommittee to work with City staff to review the Moss Adams, LLP internal auditing reports and review Staff’s recommendations for improvements to the City’s internal controls; and,
2. Appoint two City Council Members thereto.