A $110,000 internal audit budget was recommended Wednesday by Carson City’s Audit Committee, but with a change from the original work proposal.
The panel voted unanimously for the plan but with the change $15,000 originally proposed to deal with a performance measure update be held back as a placeholder, making contingency money for that or some other need in Fiscal 2015-16. The recommendation was made to the city’s Board of Supervisors, and the change was responsive to panel member and city Supervisor Lori Bagwell.
Bagwell said the performance metric tool to be used is likely in transition and so the timing isn’t yet appropriate. The board assented, though Michael Bertrand, the chairman, indicated sooner or later the panel wanted to make sure performance metrics were used in budgeting and providing accountability.
Bagwell is a new member of the panel, replacing former Supervisor John McKenna, and acknowledged that as she also urged action to deal with former internal auditor recommendations from Moss Adams, LLP, the contract auditor. She cited such early sets of recommendations as ways to achieve community facility cost recovery, something Finance Director Nick Providenti noted is political.
The panel was with Bagwell’s idea to urge staff coordination and or city governing board resolution of such prior recommendations from Moss Adams, either by taking action or closing out the items involved.
“Let’s move on these and not leave them open,” said Bagwell. “I’ll be happy to tee this up. Even if it’s political, I’d be happy to do it.”
The committee voted to proceed with that, as well the recommendation of next year’s internal audit program. That FY 2015-16 program would include:
The $15,000 in contingency money Moss Adams originally had suggested could go for performance measure updates; $25,000 for cash and revenue collection improvements; $35,000 for a policies and procedures update; $10,000 for ongoing internal auditor services; $5,000 for ongoing fraud, waste and abuse program coordination, and $20,000 for payroll and other testing.
In another matter, the board also heard a report on external audit matters that included an assessment by Providenti of the city’s position regarding revenue and bonded indebtedness. He said during the recession, city government grew close to the limit of debt to revenue, but things look better now.
“We should be fine going forward,” he said, noting no big bond issues are on the immediate horizon. He also said tax revenues are picking up and debt is being retired on an ongoing basis, further improving the picture.
