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HomeMy WebLinkAboutStaff Report 2409-3519CITY OF PALO ALTO Policy & Services Committee Special Meeting Tuesday, October 08, 2024 7:00 PM     Agenda Item     2.Presentation of the Office of the City Auditor Quarterly Report for the Period of July - September 2024 5 5 4 9 Policy & Services Committee Staff Report From: City Auditor Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: October 8, 2024 Report #:2409-3519 TITLE Presentation of the Office of the City Auditor Quarterly Report for the Period of July - September 2024 RECOMMENDATION The City Auditor recommends that the Policy and Services Committee review and recommend the City Council accept the Office of the City Auditor’s Quarterly Status Report covering July - September 2024. BACKGROUND Task 5 of the six required internal audit tasks in the agreement between the City of Palo Alto (City) and Baker Tilly Advisory Group, LP (Baker Tilly) is to provide a quarterly report of the status and progress toward audit completion as information reports to the City Council. ANALYSIS The internal audit activities from July – September 2024 are listed below by task as set forth in Baker Tilly’s agreement with the City: •Task 1 – Citywide Risk Assessment Work is ongoing as the City Auditor conducts interviews with City Council members and the City’s Executive Leadership Team. The assessment is scheduled for presentation to the Policy & Services Committee in November 2024. •Task 2 – Preparation of the Annual Audit Plan FY2025 Audit Plan is scheduled for presentation to the Policy & Services Committee in November 2024. •Task 3 – Selection of External Financial Auditor and Annual Audit Coordination 5 5 4 9 Baker Tilly has coordinated and collaborated with the City’s external audit, MGO, who are working on the FY2024 Audited Financial Statements providing assistance and oversight as needed. •Task 4 – Execute Annual Audit Plan Presented four audit reports to the Policy & Services Committee o Public Safety Construction Audit on June 11, 2024 (Report #2405-31071) o Parking Permit Technology Contracts Management Audit on August 13, 2024 (Report #2405-30832) o Procurement Process Review Audit on August 13, 2024 (Report #2406-31323) o Technology Applications Disaster Recovery Preparedness Assessment on September 10, 2024 (Report # 2406-31334) •Work is currently underway on seven audits from the FY2024 Audit Plan5 o ADA Compliance Audit (Task Order 4.22) o Recruitment and Succession Planning Audit (Task Order 4.23) o Grant Management Audit (Task Order 4.24) o Emergency Preparedness Audit (Task Order 4.25) o Utility Billing Audit (Task Order 4.26) o Payment Card Industry Data Security Standards Audit (Task Order 4.27) o Dispatch Center Program Assessment (Task Order 4.286) 1 Policy & Services Committee, June 11, 2024; Agenda Item # 4; Staff Report #2405-3107 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=52890 2 Policy & Services Committee, August 13, 2024; Agenda Item #3; Staff Report #2405-3083 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=52897 3 Policy & Services Committee, August 13, 2024; Agenda Item#1; Staff Report #2406-3132 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=8585 4 Policy & Services Committee, September 10, 2024; Agenda Item #1; Staff Report #2406-3133 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=52913 5 Policy & Services Committee, December 12, 2023; Agenda Item #3; Staff Report #2310-2174 https:// recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52531&dbid=0&repo=PaloAlto 6 Policy & Services Committee, August 13, 2024; Agenda Item #2; Staff Report #2407-3304 https:// recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52908&dbid=0&repo=PaloAlto 5 5 4 9 •Task 5 – Periodic Reporting, Hotline Monitoring, and Other Administrative Functions Two Hotline reports were received during this period and are being followed up on. Baker Tilly participated in various meetings including City Council, Executive Leadership, Agenda Planning, and Committee Meetings •Task 6 – Evaluation and Benchmarking No activity to report in this quarter FISCAL/RESOURCE IMPACT This quarterly report does not have a resource impact. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). APPROVED BY: Kate Murdock, City Auditor Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2022 Baker Tilly US, LLP. City of Palo Alto Office of the City Auditor (OCA) Policy & Services Committee Meeting FY2025, Q1 - Quarterly Status Report October 8, 2024 2 Quarterly Report for July – September 2024 P R E S E N TAT I O N Task Key Activities 1 Citywide risk assessment FY2024 risk assessment interviews and analysis ongoing with reporting anticipated in December 2024. 2 Annual audit plan FY2025 audit plan report anticipated in December 2024. 3 Financial statement audit FY2024 Audited Financial Statements scheduled for presentation 12/3/24 to the Finance Committee 4 Execute annual audit plan P&S approved •Three audits from the FY23 audit plan (2 on 8/13/2024 and 1 on 9/10/2024). •Deferment of the Purchasing Card Audit to the FY25 Audit Plan •Work for a Dispatch Center Program operations assessment 5 Periodic reporting, hotline monitoring, admin. function Two hotline allegations were received and are being followed up on. 6 Evaluation and benchmarking There was no activity to report in this quarter. 3 Quarterly Report for July – September 2024 P R E S E N TAT I O N Status of FY2023 and FY2024 Audit Plan Projects Department Project Title Task Order Status Transportation Parking Permit Contracts Management Audit 4.16 Completed Information Technology Technology Applications Disaster Recovery Preparedness Audit 4.19 Completed Administrative Services Procurement Process Review Audit 4.20 Completed Administrative Services Purchasing Card Audit 4.21 Deferred to FY25 Public Works ADA Compliance Audit 4.22 Reporting Phase Human Resources Recruitment & Succession Planning Audit 4.23 Reporting Phase Citywide Grant Management Audit 4.24 Fieldwork/Testing Citywide Emergency Preparedness (Wildfire) Audit 4.25 Fieldwork/Testing Utility Utility Billing Audit 4.26 Fieldwork/Testing Citywide Payment Card Industry Data Security Standards Audit 4.27 Planning Police/Citywide Dispatch Center Program Assessment 4.28 Fieldwork/Testing 4 Quarterly Report for July – September 2024 P R E S E N TAT I O N Fraud, waste & abuse Hotline Reports & Updates Quarter Received Closed FY25, Q1 2 0 5 Quarterly Report for July – September 2024 P R E S E N TAT I O N The Office of the City Auditor recommends that the Policy and Services Committee recommend the City Council accept the Office of the City Auditor’s Quarterly Status Report covering Q1, FY2025.