HomeMy WebLinkAboutItem #09 - Discussion ItemCITY nF MIAMI, FLORIDA /10
INTER -OFFICE MEMORANDUM
Honorable Mayor and
Members of the Commission �a December 14, 1999 =ILE
31jl3,lE ;T
Agenda — Audit Advisory
Committee Presentation
Xnc e REFERENCES
Commiss er
ENCLOSURES
The Audit Advisory Committee has respectfully requested to make a short Presentation
regarding the Independent Auditor that was newly selected by our constituents. The
p
Committee has met and put forth some suggestions and recommendations. Therefore,
on their behalf, I respectfully request that we hear their presentation on the December
141 Commission Meeting. ber
Thank you for your attention in this matter.
1 '3T3 1 ;3: 26
FEPNANDEZ
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mc*mber 13.1999
To
e Mayorlm Members orthe city ('qmmj3jj()rmr3
Fro City Of Miami Audit Advisory commitft Members
rum to Resolution No' 99-608- a chartOr umendinent, which c*JW for the creation of
the altion of an h*PWWCnt Auditor (jenctal QAU) and the L)Mcg of the jr4opcndent
Au4jf
th oe3*Wp Was apprt)vcd in a "fsrtudum. hc1d on Tuesday, No VCM ber 2, 1999.
ApoiWe I mmend the COU110iftiun for injunUg thj.lq ncharter amendnMIL The MOT havo
I
a
AW "408and the nftd for Integrity in Mj&m,.,v finwej
dew amendment j.v January 1, 2000. Mumn. Tice efrective,
will
" be appointed by the COMM]-1-n and will rtport to the Co=gsom
.. Auditors always nTM 10 the Board of Dhtclm AW Sbusholdm and NX
to Went
to Pr 1D. V
"i 4 do
(cn - The City Cotam!"iOn im the Miami's Floard Of DirecUn and rcpnvcMs
the d (ownm) Of ft City, The City
mm Commission h" the OPPOMAnity to promote
OrAgure brosd audit coyttl9c, and WmVrift Action on audit
ons, The Purpose Of thin memorandum is to provide tho Cornm,113,on With
on se independent CPA's on the implcmcnial-lon of the 0Mce of the JAG.
and M"zibilitift or the ncwly Created
are virtually idontical to those r JAG. as articulated in Rwhajon
currently perf ormad by the 0 1 of In
Audi (OJA). if the two officer MCC Internal
were allowed to co' -exist- thm would be an WUXWASJUY
Of fidMW audit tunctlong 0-4 Wsst' If much�socdedurscA. We belk-w01Ashould"surm the Authorities and to0'
Aud00IA
c
0n fulfillbW our Mnctioa& as you, app. 3l'olibiliflDS of the newly creaW
A
'6W illud Audit Advisory Committee members,
we
on WO*W 4giMdy with ft CUrmat Diroctor (Victor Fg%v) of the 01& He
that Position On AMI 19, 1999. prior to hi., coming
to the City of Miami he
f 4
for " State of Fk)ridg MUM of Audit GeneTW &C 12 yeaty, vA"M he
I
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Sited an excenept reputation. Mr. igwe has a doctored do
SM in inC
Adimb islration, he is a semifind Public accountant licensed to practice in plor d a� �
a, acd also
a e tied Inters AI auditor. in the short time he h&h been with the City, he has shown
exe 'anal ink9lity and his Performance
Veaks for Itaeit:
I
a i The OIA's btudget savings for the r1wal year anted Septmber 30, 1999, wag
s129,813,
i
' The OIA Idendr1W additional revenues dYe to the City in the amount of
$1,110,203 and of this aanount, $1,009,159 was diber collected in then form of
cuh or the City was grantod the applicable credit by he ven&r.
Audits performed sues the arrival of the new D ir+ector, inrludas t'ittaasial,
Mmtlonal, Compliance, perfomunce, and sirWe Act audhs. All auk
Pufotmed by OIA also evaluate the sysmu of lrttern l coap,o1 aasocist"
Wft
the soedvlties atd/or strvicos provided by all City dep iaim,tttt and OfIlM.
° The Audit Advisory t-'brttmdttoo compo"d of indqvmbm financial and kpl
profcssiotwis► appointod by each Commissioner was reotgankud since the
arrival of Mr. Igwe. The Cummittae hag nwt six tinter since t3te reorgatdzadon.
During dteae meetings .Committee members discussed the coutonts of audit
reports issued by Wernal aW intomai auditors, reviewed mowNy financial
MPorts WrAoled by the Finum and the Budget departments, discussed OIA'a
anneal audit plan and other activities and cfrorts of the OIA.
° A risk assessment pMcesa is now uxed to anal Zq and
y identify the areas to be
reviewed by the OIA. This promw identities varlous risk comportow @aaooiatad
the tnaaaganx:nt of the City's ueaaets. financial easoum= tat$ servia0s
ided m readdcnts. For ;marnple, one of the Ownponents identified and
z
— 4
J- .�
a
12%13/1999 18:25
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3052850405 FERNANDEZ
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bY1CMYDd w� + 1nionlMlion 'I CdMIt
4W S ocurity and the elated V2K
aamplitu>ce issues,
The 01A auditors attended eontiutdng Professional education Mminars. ,woo
Aernfim" exposed the auditors to new Mountingand auditia
latest Atlditd t 6 propotufCemcrjq=
n6 eclmiquos "'r dotocting fraud, and risks
int'ottgation teclmo auocdateJ with
y, and tide auditing of eloctronic commerce transactions.
ibC@* "n"AM sing COMM th4 cocb auditor is in wmpiianoe with Govemmarnt
Auditing Standards,'Med dY tht Comptroller General of tbo United StatW&
upon our work with ho. 4we. and our undcrstw klin of the i
atneo W. we hav& Concludod that the neco i oat�ts Oran cdnllttea
f6r'Y fiustructM wed rMt� needed
11 newly crud Dike and position of the Auditor CkmfW is aiMWY is
t
estd than he . C'ment 01A, unJcc dw direction or victor Imo,
AutborhY lad MWntiibilitles or the acwly ct+rstod Ogl'x:e and position of
k Gs�aeral.
3