PROCESSAUDIT

Revised December 2019

City Auditor's Office

CITY AUDITOR'S MISSION STATEMENT

The Scottsdale City Auditor's Office conducts audits to promoteoperational efficiency, effectiveness, accountability and integrity.

CONTENTS

INTRODUCTION 1

What gets audited? 2

What should I expect whenI'm audited? 4

What information isrequired?

5

6

CONTACT INFORMATION 8

What happens after theaudit?

What is the IntegrityLine? 7

Want to recommend anaudit? 3

INTRODUCTION

This pamphlet explains the roleof the City Auditor's Office andits processes for conductingaudits.

In 1988, Scottsdale citizensvoted to allow the City Council toappoint an internal auditor. In2009, Scottsdale citizens againvoted to update and clarify therole of the City Auditor as acharter officer of the City.

The City Auditor's Office wasestablished to provide anindependent review of the City'saccountability for publicresources.

The City Auditor's Officeconducts audits in accordancewith generally acceptedGovernment Auditing Standardsissued by the U.S. GovernmentAccountability Office.

Once every three years, the CityAuditor's Office undergoes a peerreview to evaluate its compliancewith these standards.

1

Why is there a City Auditor?

What standards apply to the workbeing done?

Fun Fact: There are approximately six city auditors in the state ofArizona, and all but one are located here in the Valley!

How long will an audit take?

Most audits are are completed in 2to 3 months. However, an audit'sscope and objectives, staffavailability and responsiveness, plusreliability of documents providedcan affect the completion date.

What GetsAudited?

Annual Audit Plan

The City Auditor proposes anAnnual Audit Plan to theCouncil's Audit Committee byJune of each year. Therecommended Plan then goes tothe City Council for review andapproval.

The City Auditor presentspotential audit topics fordiscussion with the AuditCommittee around March to May.

Potential audit topics are largelybased on the Office's riskassessment process, whichconsiders factors such asprogram significance, changes,audit requests, and past audits ofvarious programs or functions.Audits have included Cityprograms, contracts andfunctions.

The approved Annual Audit Planis publicly available on the City'swebsite as well as on the CityAuditor's intranet page.

2

We complete approximately 13to 15 reports each year.

Reports

2013 2014 2015 2016 2017 20180

10

20

Audits are conducted to helpidentify operational improvements,process efficiencies, potentialsavings or revenue enhancements. 

3

Want toRecommendAudit Topics?

Suggest an audit of a departmentor program by emailing or callingthe City Auditor or any of theSenior Auditors.

City Auditor's Office: 480-312-7756

City Auditor Sharron Walker: 480-312-7867

Email: SWalker@ScottsdaleAZ.gov

Information may be submitted confidentially.

What should weexpect during

an audit?

4

When fieldwork is complete, auditorsdraft a written audit report.Management of the audited areareceives the draft report and respondsto the audit recommendations. Thisdraft is part of the audit work files,which are not a public record.

Auditors identify risks and inquireabout controls to address the risks.Internal controls are defined as "plan,policies, methods and proceduresadopted by management to meet itsmission, goals and objectives."

Auditors send a memo stating theplanned audit objective, assignedauditors, anticipated timeline andscheduled Audit Committeemeeting.

Auditors gain familiarity with theprogram by interviewing staff,reviewing documents and data, andobserving processes and facilities.

Auditors conduct tests, ask questions,and validate results. It's importantthat the department provide anyapplicable information it may have asaudit conclusions are being formed.

1) Ready to start

2) Preliminary Survey

3) Risk assessment and internal controls

4) Fieldwork

5) Reporting

[ARS §9-305(B)]

"Quote animportantstatement here"

What informationis required?

Open to inspection

5

All original documents providedduring the audit will be returned at itsconclusion.

City Charter and Scottsdale RevisedCode specifically require City staff toprovide information for the audit.

Please do not create documentationto respond to an auditor's inquiry.There may be acceptablealternatives that can be identified.

All officers and employees of the Cityshall provide the City Auditor free and

open access to information and records,property, equipment and facilities in

their custody. [SRC §2-124]

Working papers and other audit files that are maintained by the city or town auditor are not public records and are exempt from title 39, chapter 1. Any audit report prepared for or presented to a city or town is a public record subject to title 39, chapter 1.  [ARS §9-305(B)]

What happensafter the audit?

6

The final audit report is presentedat an Audit Committee meeting.Management is expected toattend, but a formal presentationis not required.

Audit Committee Audit Follow Ups

Quarterly, auditors will send a=status report form for the=department to report actions=taken. Auditors review the related=documentation to verify the=department's progress, andthe City Auditor updates the Audit=Committee.

The City Auditor's Office fully complies with professional auditing=standards.  The Office has also won Knighton Awards for its reports.

7

What is theIntegrity Line?

As a Certified Fraud Examiner, the City Auditor has established the IntegrityLine to provide employees, contractors, or the public with a method forreporting suspected fraud, waste or misuse of City of Scottsdale resources.

Describes behavior thatis deficient or improper whencompared to behavior that wouldbe considered reasonable andnecessary in the circumstances.

 EXAMPLES

Unauthorized disclosure ofconfidential or proprietaryinformation

Providing a benefit forsomeone for which they do notqualify

Directing staff to performpersonal errands for asupervisor

1) The City Auditor reviewsthe incident report todetermine if aninvestigation is warranted.

2) Possible actions mayinclude an investigation, areferral to a lawenforcement or regulatoryagency or a referral to Citymanagement for review andresponse.

3) If a hotline complaint issubstantiated, the CityAuditor prepares a writtenreport that will be a publicrecord.

The City Auditor maintainsconfidentiality of allcomplaints, associatedworking papers and otherfiles, as allowed by ARS§9.305(B).

An intentional act or omissiondesigned to deceive othersand deprive the City of itsresources or rights.

 EXAMPLES

Theft of City money,equipment or other assets

Use of City property forpersonal gain

Submitting invoices forfictitious goods or services

Falsifying records, such astime sheets or expenseclaims

The intentional or unintentionalcareless expenditure ormismanagement of Cityresources.

 EXAMPLES

Purchasing supplies, goods orservices at inflated prices

Failure to reuse or recyclemajor resources

Making unnecessarypurchases

        Do not use the Integrity Line to report:

Complaints against privatebusinesses, unless theissue involves Cityoperations, resources oremployees

Potential fraud related tocounty, state or federalassistance programsunless the program isbeing operated by the Cityof Scottsdale

Emergencies or otherpublic safety concerns

Employment-relatedissues, such asdiscrimination, harassmentor personnel matters.

Abuse Fraud Waste

Please be as specific aspossible: names of personsinvolved and thosewho know about thematter, dates, times anddetails. Nonspecificallegations are difficult toinvestigate.

Process Info to Provide

Confidentiality

Integrity Line: (480) 312-8348 or Audit@ScottsdaleAZ.gov

AUDIT COMMITTEE

Kathy Littlefield, Chair Virginia Korte==

Solange Whitehead

CITY AUDITOR'S MISSION STATEMENT

The Scottsdale City Auditor's Office conducts audits to promoteoperational efficiency, effectiveness, accountability and integrity.

8

Sharron Walker, City AuditorKyla Anderson, Senior Auditor

Paul Christiansen, Senior Auditor Lai Cluff, Senior Auditor

Cathleen Davis, Senior AuditorBrad Hubert, Senior Auditor

Shelby Trimaloff, Exec. Asst. to City Auditor

Scottsdale City Auditor's Office7447 E. Indian School Rd., Ste. 205,  Scottsdale, AZ 85251==

Office: (480) 312-7756   |   Integrity Line: (480) 312-8348 or Audit@ScottsdaleAZ.gov

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