Columbus Consolidated Government
Council Memorandum
TO: Mayor and Councilors DATE: August 18, 2006
FROM: David Arrington, Deputy City Manager SUBJECT: Audits
In the Fiscal Year 2007 budget the position of Internal Auditor was one of the
positions eliminated to balance the General Fund budget. During the budget
process, the City Manager outlined a basic strategy to provide internal
auditing services to meet the requirements set forth in City Code and to
perform other audits as required. This strategy will utilize Finance staff and
external accounting firms as described below to meet the internal auditing
requirements.
Financial Analyst - Financial Analyst from the Finance Department will be
assigned the responsibility for conducting mandatory and scheduled internal
audits of accounts and agencies as required by City Code. In internal
management review committee comprised of the Deputy City Managers, IT Director,
HR Director, and Division Managers from Financial Planning, Accounting, and
Revenue Collections will review and take appropriate action on all audit
findings submitted by the Financial Analyst.
External Accounting Firm - An external accounting firm will be retained to
perform investigative or other audits requiring extensive financial analysis or
management review of agencies, commissions, departments, and other governmental
entities. The scope of these audits may include operational reviews, financial
reviews, compliance reviews, internal controls, or other special reviews.
The City Manager is proceeding with developing a Request for Proposal (RFP) to
contract with one or more accounting firms to perform internal auditing
services on an as needed basis. The use of multiple firms is preferred to
insure the independent nature of the auditing process over time. The specific
scope of services for the RFP will be submitted to the Mayor and Council for
review prior to the release of the document.
An investigative audit will be initiated by the City Manager and/or the Mayor
and Council. The scope of work for an investigative audit will be based on the
circumstances of each case and will be clearly defined prior to the initiation
of work. The findings of an investigative audit conducted by an external
accounting firm will be provided to the City Manager and reported to the Mayor,
and Council. In the event an audit if conducted of the City Manager?s Office,
the findings will be provided to the Mayor who will report the findings to
Council.
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