Audit committee reviews internal-audit work program, Community Development update and risk priorities

The Carson City Audit Committee heard updates on outstanding audit items and discussed the internal audit plan and risk assessment for fiscal year 2026, including priority topics auditors recommend for review.

Sherry provided an update on an open Community Development audit that has been pending since June 2022. Hope Sullivan, Community Development director, told the committee that the department has struggled with an intergov software system that went live in November 2019 and cited staffing and technical constraints. Sullivan said the city engaged an outside expert to assess the system and provide a roadmap; staff also plan a consultant-driven fee study to inform decisions about whether to continue contracting with Charles Abbott, the current contract building division vendor.

“Some people have left from Charles Abbott to fix some things with Charles Abbott. So it has been kind of lingering,” Sherry said, describing why the item remains open. Sullivan explained the city has not updated development fees in nine years and that a fee study will help determine whether bringing services in-house is fiscally possible; she said the current Charles Abbott contract extends through September 2026 and that staff will need discussions six months before the contract end.

Sherry also updated the committee that the take-home vehicle assessment is in review with the city manager’s office and district attorney and expected to return to the committee when reviews are complete.

Auditors presented the draft annual risk assessment and proposed internal-audit program priorities. Audrey, lead on the risk assessment, said the team interviewed roughly 18 department heads and reviewed documents including board minutes, risk-management data and the city’s strategic asset plan. From a long list of topics, auditors presented four priority areas for next-year audit work: credit-card payment security and compliance (including PCI concerns and inconsistent vendor agreements), public-safety responses tied to homelessness and park safety (coordination among parks and rec, health and human services and the sheriff), public guardian compliance and financial oversight (fiduciary controls over ward accounts), and staffing and succession planning (seasonal-worker turnover, leadership transitions and recruitment/retention strategies).

Committee members supported prioritizing credit-card processing, public safety/homelessness responses and public guardian oversight, with staffing and succession planning as a contingent fourth priority depending on available funding. Members emphasized benchmarking, coordination among departments, and attention to equipment and training for park rangers.

Auditors reported the current fiscal-year audit program status: the take-home vehicle assessment and payroll processing review are completed; the firefighter study results were presented and accepted; purchasing and contracts management work has started; the team has expended approximately $70,000 of a $110,000 budget for audit services and related activities; and there were no Carson City-related fraud hotline cases since the last meeting.

Votes at a glance: - Approval of minutes from previous meeting: approved (unanimous). - Acceptance of payroll-processing assessment (agenda item 5B): approved (unanimous). - Acceptance of firefighter recalculation review (agenda item 5C): approved (unanimous).

The committee scheduled a follow-up meeting for June 17 at 1:30 p.m. to receive the finalized risk assessment and remaining reports.