Acting city auditor reports 29 recommendations closed; finance and IT items remain open
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Summary
Acting City Auditor Brian Smith told the Audit Oversight Committee that city departments closed 29 audit recommendations in the past year, with outstanding items in YDSI and finance; finance will update cash-handling policy and IT expects to complete asset-verification recommendations by July 2025.
Acting City Auditor Brian Smith told the Audit Oversight Committee on April 7 that city departments have addressed 29 audit recommendations over the past year, and auditors continue to follow up on a small number of incomplete items, including two recommendations to the Department of Youth Development and Social Initiatives (YDSI) and one to the Department of Finance.
Smith said the unaddressed finance recommendation concerns a lack of clarity in the city’s cash-handling policy about what constitutes a periodic departmental audit of cash-handling locations. "Even though this requirement was in the policy, there was no direction about what that audit entailed," Smith said.
Context and departmental responses
Corey Veil, Treasury Section Manager in the Department of Finance, told the committee Finance is updating cash-handling policies to require annual cash-handling compliance reviews documented on a checklist, which departments will submit to Finance. Veil said he expects the policy work to be completed around July and that Finance will coordinate with unions and departments before full implementation.
On IT controls, Smith said two not-due recommendations remain; IT management told auditors it will complete documentation and processes for asset verification by July 2025 and auditors will perform sample testing as part of verification.
Current audits in progress
Smith also listed ongoing audits: business-licensing compliance (lead: James Burnett); controlled-substances management within the Fire Department (lead: Joe Throneberry); the employee separation process in Human Resources (lead: Nancy Cardoza); and an IT audit of mobile communication devices (lead: Louis Allaud).
Committee action
After discussion, the committee approved the staff report on prior recommendations and ongoing audits by voice vote with no recorded opposition.
Why it matters
Audit recommendations and their remediation affect how city departments manage cash, assets and program controls. Finance’s planned checklist and increased oversight aim to clarify expectations so departments can comply consistently and enable auditors to verify those controls.
