Performance Audit Work Plan for Remainder of 2009
June 10, 2009
The City Commission approved four new performance audits at the June 9, 2009, meeting. The City Commission directed me to return with a more defined scope for the performance audit related to business-type services.
Approved Performance Audits
Reviewing a set of financial indicators, comparing them over time and with medians, to describe the city’s financial condition and identify “warning trends.”
The performance audit would involve updating the analysis done last year. Because the project would involve updating an approach used previously, it could be completed quickly. Updating the analysis was identified as a topic for future work in the performance audit released in August 2008.
Review of Purchase Card Transactions
Following procurement policies and procedures helps ensure city funds are spent responsibly. In 2008, city employees spent about $1.5 million on small purchases made with city-issued Visa purchase cards.
The performance audit would involve reviewing a small number of transactions made by city employees who have purchase cards. The review would focus on compliance with city policies and procedures, ensuring the purchase addressed a reasonable need, and ensuring the goods or products purchased were received by the city.
A January 2009 performance audit concluded the design of the city’s process for making small purchases generally followed good practices. The performance audit identified reviewing transactions as potential future audit topic.
Business Type Services: Water and Sewer, Stormwater, Parking, Solid Waste, and Golf Course
Several city functions – including water and sewer, stormwater, parking, solid waste, and golf – are largely funded by charges for service. Comparing financial performance for those activities with similar activities in similar cities could identify areas where performance could improve.
An August 2008 performance audit noted the decline in net revenue for all five business-type activities from 2006 to 2007. The 2008 Comprehensive Annual Financial Report shows declines in net revenue for all of the activities except stormwater.
This performance audit could address suggestions related to solid waste practices submitted by members of the public when I solicited ideas for future topics.
Vendor Information Review
The city maintains information about vendors in the financial system. Accurate and complete information acts as a control to ensure appropriate payments.
A performance audit could involve reviewing the city’s vendor table, testing for accuracy and completeness.
This performance audit would address a suggestion submitted by a member of the public when I solicited ideas for future audit topics.
Police administrative bureau preliminary review. The project was approved by the City Commission in April 2008 and involves reviewing the Police Department’s administrative bureau to identify topics that could warrant further audit work.
Recommendation follow-up. The City Code requires follow-up reporting, which provides the City Commission with information on management’s efforts to implement audit recommendations. A follow-up report was provided in March 2009. I plan to provide the next follow-up report to the City Commission in September 2009.