Article IX — OFFICE OF INTERNAL AUDIT

Cross reference— Finance and taxation, ch. 10.

There is hereby created an office of internal audit as part of the management services department. The office of internal audit reports through the director of management services to the city manager.

(Code 1968, § 2-116)

The director of management services shall be a person qualified by training, experience and demonstrated ability to manage the affairs of the department. The director of management services shall be appointed by the city manager in conformance with the provisions of section 2-74.

(Code 1968, § 2-117)

The office of internal audit is an independent appraisal function to examine and evaluate city activities as a service to management at all levels. In carrying out their duties and responsibilities, members of the office of internal audit will have full, free and unrestricted access to all city activities, records, property and personnel required to accomplish their audit objectives. The primary objective of the office of internal audit is to assist members of management in the effective discharge of their responsibilities. Internal audits performed will adhere to the Standards for the Professional Practice of Internal Auditing, in accordance with Government Code § 1236.

(Code 1968, § 2-118)

The functions of the office of internal audit are as follows:

(1)

Review departments within the city to determine whether they are efficiently and effectively performing their functions of planning, organizing, directing and controlling in accordance with management directives.

(2)

Determine the adequacy and effectiveness of the city's system of internal accounting and operating controls.

(3)

Review the reliability and integrity of financial information.

(4)

Review established systems to ensure compliance with policies, plans, procedures, laws and regulations.

(5)

Review the means of safeguarding assets and as appropriate verify the existence of such assets, and appraise the economy and effectiveness with which resources are employed.

(6)

Review operations to ascertain whether results are consistent with established objectives.

(7)

Participate in the planning, design, development and implementation of major systems.

(8)

Conduct special examinations as may be directed by the city council and city manager or as may be considered necessary by the director of management services.

(Code 1968, § 2-118)

(a)

The director of management services is authorized to direct a broad, comprehensive program of internal auditing within the city.

(b)

The functions and responsibilities of the director of management services are as follows:

(1)

Establish policies for the auditing activity and directing its technical and administrative functions.

(2)

Develop and execute a comprehensive audit plan for the evaluation of the management controls provided over all city activities.

(3)

Authorize the issuance and distribution of reports on the results of audit examinations, including recommendations and proposed changes to management as may be considered appropriate in the circumstances.

(4)

Conduct special examinations at the request of management, including but not limited to fraud investigations, assisting external auditors, and reviews of agencies performing services under contractual agreements with the city.

(5)

Coordinate assignments and training to develop a professional staff.

(Code 1968, § 2-119)