Committee recommends City Council approve Baker Tilly task orders for FY25 audit planning and coordination

The Policy and Services Committee recommended City Council approval of three task orders with Baker Tilly to complete internal audit work for fiscal year 2025, including a limited citywide risk assessment, preparation of the FY26 audit plan, and assistance selecting and coordinating the external financial auditor.

City Auditor Kate Murdoch told the committee the tasks will be carried out January through June 2025 and that the proposals have no net fiscal impact on the city auditor budget or the Baker Tilly contract overall. Murdoch said staff recommended reducing the budget for the FY25 risk assessment from $55,000 to $40,000 and increasing the FY25 ongoing administrative task budget from $60,000 to $100,000 to cover quarterly reporting, hotline provision and administrative travel. The change to the risk assessment budget reflects that a full risk assessment was recently completed and staff will instead use a brief survey to capture changes.

Murdoch also recommended realigning funds from FY24 task balances to cover shortfalls in several FY24 audits (recruitment and succession planning, emergency preparedness, utility billing, dispatch center assessment) with a net zero impact. Committee members asked clarifying questions about timelines and a typographical error in the report; Council Member Tanaka asked whether the audit plan includes performance audits, and Murdoch said the FY25 audit plan presentation later in the meeting will include planned audits.

The committee voted to recommend City Council approve the three FY25 task orders and the proposed budget realignments.