CC 07-01-2025 Item No. 14 FY 2025-26 Internal Audit Work Plan_Staff PresentationCC 07-1-2025
Item No. 14
FY 2025-26
Internal Audit
Work Plan
Presentation
City of Cupertino
FY25-26 Internal Audit Program
City Council Meeting
July 1, 2025
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Internal Audit Overview
•The City retained Baker Tilly (Moss Adams) to serve as the designated
Internal Auditor and conduct projects focusing on:
•Risks
•Internal controls
•Efficiency and effectiveness
•Best practices
•Compliance
•Work is being completed under appropriate industry standards (IIA, GAGAS,
AICPA)
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Internal Audit Program Components
Internal Audit Plan
Risks Internal
Controls Compliance Performance
Accounting and financial reporting, assessment management, capital programs,
compliance, economics and funding, fraud, governance, human resources, internal
controls, maintenance and operations, management, operations and service
delivery, organization and staffing, processes and procedures, procurement, public
safety,, risk management, and technology
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Risk
Assessment
Results
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R ISK C ATEGORY O VERALL R ISK L EVEL
Funding and Economics High
Capital Improvement Program Moderate to High
Compliance and Financial Reporting Moderate to High
Human Resources Moderate to High
Planning and Strategy Moderate to High
Asset Management Moderate
Governance Moderate
Internal Controls Moderate
Management and Leadership Moderate
Operations and Service Delivery Moderate
Organization and Staffing Moderate
Policies and Procedures Moderate
Procurement and Contracting Moderate
Reputation and Public Perception Moderate
Risk Programs Moderate
Accounting and Finance Low to Moderate
Ethics and Fraud, Waste, and Abuse Low to Moderate
Information Technology Low to Moderate
Public Safety and Security Low to Moderate
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Program Review
•Enterprise Risk Assessments
•Internal Controls Projects Completed
•Performance/Efficiency Projects Completed
•Policies Reviewed
•Recommendations Delivered
•Ethics Hotline Reports Received
•Recommendations Validated in FY25
2021, 2024
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139
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33 reports
45
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Recommended FY25-26 Internal Audit Projects
1.Council-Wide Policy Review Inventory (already approved by City Council):
Review and provide recommendations to align council policies with best
practices (16 weeks, $40,000)
2.City-Wide Internal Controls Review: Conduct a review of the City’s internal
controls framework in key areas that are deemed important to protecting City
assets and resources (16 weeks, $45,000)
3.Investment/Cash Flow Policy Review/Recommendation: Review and
provide best practices recommendations over the City’s Investment/Cash
Flow policy (8 weeks, $10,000)
4.Ongoing Internal Audit Services: Attend Audit Committee and Council
meetings, prepare status reports, recommendation validation, manage internal
audit program, and monitor FWA hotline ($25,000)
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This material appearing in this presentation is for information
purposes only and is not legal or accounting advice.
Communication of this information is not intended to create,
and receipt does not constitute, a legal relationship, including,
but not limited to, an accounting-client relationship. Although
these materials may have been prepared by professionals,
they should not be used as a substitute for professional
services. If legal, accounting, or other professional advice is
required, the services of a professional should be sought.
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structu re and are members of the global network of Baker Tilly
International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA f irm that provides assurance services to its clients. Baker
Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not license d CPA firms.