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HomeMy WebLinkAboutSubmittal-Auditor General InformationAuditor General One City, One Future Department Head: Victor 1. igwe Phone: (305) 416-2044 Description The Office of the Independent Auditor General (OIAG) was created pursuant to Section 48 of the City of Miami Charter and is responsible for performing independent audits and analytical functions as stipulated in Section 48 of the City Charter. The OIAG reports directly to the City of Miami Commission. The primary objective of most audits are to determine: (1) whether financial transactions are fairly presented in accordance with generally accepted accounting principles; (2) whether a system of internal control, which would promote and encourage the accomplishment of management objectives has been established/implemented; (3) compliance with City Code/Charter provisions, policies, procedures, State Statutes, Federal regulations and other guidelines; (4) whether operations are executed in economic, effective and efficient manner; (5) whether tax -payer's assets are properly safeguarded; (6) whether prior audit recommendations have been implemented and (7) whether records are reliable. Department Summary FY 2011 FY 2010 Increase FY 2010 FY 2009 Actual Category Adopted Budget Projected Actual (Decrease) Adopted Budget @ 9/30/09 Personnel $829,982 $709,589 Operating Expense $28,438 $5,237 Capital Outlay $0 $0 Non -Operating Expense $0 $0 $858,420 $120,393 $23,201 $0 $0 $714,826 $143,594 Allocation by Category Operating Expense 3% 177 Personnel 97% $699,865 $790,275 $8,643 $15,825 $0 $0 $0 $0 $708,508 $806,100 SUBMITTED INTO THE PUBLIC RECORD FOR 1TEM tJ!\. a ON 4 as //- 00�77 -- S) bt ?, t221 - Rv o�i'7tor Ce1v1era/ ,� o►-m �.`t o� $900 $800 $700 $600 m • $500 ,2 $400 $300 $200 $100 $0 FY 2007 FY 2008 Auditor General Historical Trend FY 2009 FY 2010 Projected One City, One Future FY 2011 Adopted —�� Personnel 0 - Operating Expense Personnel This category is $120,393 or 16.97% more than FY 2010 Projected Actual primarily due to the imposition of tiered wage changes to all City employees. Operating Expense This category is $23,201 or 442.98% more than FY 2010 Projected Actual primarily due to peer review activities that are required by the Office of the Internal Auditor as a commission directive to ensure quality control. Obiectives for FY 2011 • Achieve Cost -Effective Municipal Services - A risk -based annual audit plan process will identify 16 moderate to high risk types of audit engagements relative to business and service delivery processes. Appropriate recommendations would be made. - The OIAG will continue to provide technical expertise to City departments and agencies. - The audits of business and service delivery processes would be performed in a timely manner due to more audit experience. The average budgeted hours per project would decrease from 405 hours to 400 hours. - Appropriate audit efforts would be focused on high risk and control deficient revenue collection areas. The OIAG estimates that additional revenues and/or cost savings totaling approximately $1,000,000 would be identified in the coming year. -The OIAG plans to continue to provide litigation support role on behalf of the City relative to fees and taxes in dispute and assist in the collection of other monies owed to the City. - All auditors will be scheduled for a 40 credit hours of continuing professional education training including the specified number of credit hours in governmental accounting/auditing, ethics, and other requirements as mandated by the Governmental Auditing Standards, the State of Florida Board of Accountancy and other professional licensing agencies during FY'll. - The OIAG will follow-up and determine the status of all prior audit findings, related recommendations and management action plans as it pertains to the overall operation of the City and related cost -savings. - A fraud hotline operated by the OIAG is available to enhance awareness regarding the prevention and detection of fraudulent business transactions. - The OIAG will continue to provide technical expertise to City departments and agencies. 178 Submitted into the public record in connection with item l R. 2 on ` /Z` 11 I . Priscilla A. Thompson City Clerk Auditor General One City, One Future Accomplishments in FY 2010 • Achieved Cost Effective Municipal Services - OAIG identified in excess of $2,000,000 in additional revenues and/or cost savings in FY'10. • Aligned Employee Goals with City Goals - Broadened revenue opportunities through audits. • Other Accomplishments - The financial, operational/performance, and compliance audits identified several internal control deficiencies, lack of compliance with certain programs, and contract/lease provisions/requirements. Our recommendations, if properly implemented, would add value; enhance accountability, effectiveness and efficiency to the overall operation of the City government. - The OIAG provided technical expertise on a wide range of issues to various City departments. - The OIAG provided litigation support role on behalf of the City, relative to revenues in dispute and/or collection of other types of fees owed to the City. - The OIAG worked with the Audit Advisory Committee to ensure that it was fulfilling its responsibilities, as codified. - The OIAG provided assistance to external law enforcement agencies investigating certain financial transactions identified in audit reports issued by the OIAG. 179 Submitted Into the pubic record in connection item (1p 2 on gin1�-j Priscilla A. Thompson City Clerk