Comments on: More budget cuts coming on Tuesday

By: Ralph

Ralph — Sat, 01 Aug 2009 03:42:33 +0000

I am guessing that the easiest way to obtain the answer to these and many of questions is just inquire. The City Auditor website is not what I call helpful.

It is possible to have an unqualified opinion as long as the control deficiencies do not have a material effect on the financial statements.

I did a quick read through of Measure K audit and it seemed like the city lacked basic control procedures, i.e not specific to Measure K. Long story short, IC weaknesses identified in the CAFR could apply in some of these other audits.

By: len

len — Sat, 01 Aug 2009 01:55:25 +0000

Naomi, wait a bit before we reach consensus on your question. And then yes your straightforward approach is good starting point.

Ralph, i’m pretty sure the city got a clean opinion letter in the last two annual audits. Which is funny considering the interfund borrowing stuff.

I was never a full time auditor and certainly not government audits. But wouldn’t you think that the outside financial auditors only look at internal controls including internal audit dept, to the extent it affects the accuracy of the classifications and presentation in the financial statements (and legality of the fund restrictions and grants).

ie. the performance audit function of the City Auditor wouldn’t be examined by the outside financial audit firm.

-len

By: Naomi Schiff

Naomi Schiff — Fri, 31 Jul 2009 23:18:22 +0000

Before jumping to conclusions, perhaps inquire politely of auditor’s office whether there is updated info on procedures, training, and accomplishments? In the interests of not expending useless energy, take the most direct first, and simply ask the question of the department in question, as a first step. What is it we want to know?

By: Ralph

Ralph — Fri, 31 Jul 2009 21:40:08 +0000

len, I don’t understand the comment about not tipping off the audit target. Generally, the auditee has knowledge of the impending audit.

I think you establish the baseline now. You do not need prior history. The IA Peer Review stated in no uncertain terms the staff lacked sufficient training to be effective (strike me down where i sit if I paraphrased incorrectly).

From a financial standpoint, if the city has not already done so hire external auditors to audit the books. let them also perform a test of internal controls. Identify high risk areas and develop controls to address them. Implement and test.

Conduct various mandated audits in accordance with law.

By: len

len — Fri, 31 Jul 2009 21:23:34 +0000

Is there a complete list of mandated audits and their completion status.

It sounds like that other than a grand jury, an infrequent and a mostly non-performance based peer audit, the unlikely scenario where the Mayor’s office or CC demands more/deeper/better audits, or a complaint by an agency, dept, or city employee no one is required to evaluate the City Auditor.

Sounds like we need maximum transparency, without jeopardizing privacy or tipping off the audit target, so normal residents can evaluate the City Auditor office. We’ll need similar info at least for her predecesor’s term(s) to give use a baseline.

We really really need an aggressive productive city audit dept and keep it properly funded.

-len raphael

By: Ralph

Ralph — Fri, 31 Jul 2009 16:30:54 +0000

Typically, I would expect a follow-up (not a full audit) to determine how well the organization has done in making the improvements. I believe the Inst of Internal Auditors recommends a peer review every 5 years. Not sure if this a membership society – i.e. the std applies to just those who are members.

i don’t know if productivity and efficiency are areas which are addressed in standards. From my perspective, I would hope that the auditor’s office addresses areas of high risk as well as those mandated by law/voter initiative.

By: len

len — Fri, 31 Jul 2009 16:00:32 +0000

The period covered by the report stops just before Ruby took office. The report deals with quality but does not address productivity and efficiency of the auditor’s office: ie. how many audits of what scope should be expected to be completed with the office as staffed vs how many of what scope were completed?

By: Naomi Schiff

Naomi Schiff — Fri, 31 Jul 2009 15:48:43 +0000

Thank you, Ralph. I read the report. I see it is dated 2007. Now the question is, how is the auditor’s office doing on the suggested improvements, which she committed to undertaking? If there is no subsequent report, perhaps a simple polite query would elicit the response?
She seemed willing to accept constructive suggestions; how is the follow-through coming along? Is there a planned update of some kind, or a further peer review at some date?

By: Ralph

Ralph — Fri, 31 Jul 2009 05:56:01 +0000

i should probably just post the link when i find it

http://www.oaklandauditor.com/images/oakland/auditreports/peerreview_032707.pdf

http://www.oaklandauditor.com/

again, all praise to those who sift through the paperwork to separate the chaff from the wheat to bring us the skinny

By: len raphael

len raphael — Fri, 31 Jul 2009 05:38:32 +0000

Ralph, is there a link to the peer review?

-len raphael
temescal