City Auditor outlines six FY27 priorities, urges council input on data-driven audit plan
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Summary
The City Auditor told the Springfield City Audit Committee subcommittee the Office of Internal Audit will use a data-driven risk-assessment model to build the FY27 audit plan, expand use of audit software and AI, maintain a third-party fraud hotline, and prioritize staff training; the draft plan will go to the audit committee in early April.
The City Auditor presented the Office of Internal Audit on the subcommittee meeting, saying the office has "6 goals for the office" for fiscal year 2027 and asking councilors to submit risk-intake forms so those concerns can be factored into the audit plan.
The auditor described Goal 1 as adopting a data-driven risk-assessment model aligned with international audit standards and said the office is "soliciting risk ideas from our stakeholders, including City Council, as well as department heads." He urged members who have not yet completed the office's intake form to do so so their constituents' concerns can be included in the risk universe.
The presentation also highlighted plans to expand the office's use of technology. "We deploy data mining and artificial intelligence tools in our audits," the auditor said, adding the office uses audit software to house workpapers, document evidence and track staff time against budgets. He contrasted staffing levels with comparable cities, noting that some peer cities have five auditors while Springfield's audit office currently has three.
On fraud reporting, the auditor said the office will maintain an anonymous reporting system operated by a third party, Centrillo Lighthouse, for hotline intake. He explained the process: the office predicates allegations to assess whether they merit a formal investigation, escalates those that do, and may involve law enforcement when appropriate; fully adjudicated fraud matters are reported to City Council.
Councilors questioned the office about hotline volume and active trouble spots. Councilor Walsh asked how many allegations the hotline receives annually; the auditor replied, "on an annual basis, we received between 15 to 21 allegations." He said many reports are outside the city's jurisdiction and may be referred to state authorities. When asked about current trouble spots, the auditor said audits are in progress and that previously reported issues included the school food (Sodexo) contract and a transportation contract; he said follow-up procedures will check whether management has implemented recommended changes and that managers will be invited to present remediation plans if needed.
The auditor told the subcommittee he will send a follow-up message requesting completed risk-intake forms and plans to present a draft FY27 audit plan to the audit committee in early April. If the audit committee recommends no changes, the plan will move to City Council for final approval.
The meeting closed after a motion to adjourn was made and approved by voice vote.
