City auditor urges enterprise risk posture as committee reviews 2026 audit plan and approves work program
Loading...
Summary
The Office of City Auditor presented a 2026 enterprise‑wide risk assessment highlighting four top risks — budgetary shortfalls, federal operations and safety, contract oversight, and culture/trust — and the audit committee approved the 2026 audit plan that prioritizes contract audits, after‑action reviews, data governance, and program evaluations.
The Office of City Auditor told the Minneapolis City Audit Committee that the city should strengthen its enterprise risk management posture after surveying approximately 120 elected and appointed leaders and holding nearly 30 meetings.
The auditor’s office identified four priority risk areas for 2026: budgetary risks (including recent unbudgeted overtime and an estimated $203 million preliminary impact to the community tied to recent federal operations), federal operations and safety of employees and residents related to Operation Metro Surge, contract oversight (decentralized management and inconsistent policy), and organizational culture and trust (communication gaps and unclear roles). "There are significant financial risks to the city," the presenter said, and urged the city to update forecasts, identify grant dependencies, and prepare contingency staffing plans.
As part of the same agenda, the audit office presented a flexible 2026 audit and strategic plan. The plan separates the risk assessment from the audit schedule so the risk assessment can inform budget and strategic planning while the audit plan lists work the office intends to carry out, including work already in progress (MPD body‑worn camera and ALPR audits), contract management and vendor oversight audits (NSD), after‑action reviews related to recent incidents, an evaluation of the behavioral crisis response program, a Meet Minneapolis contract review, a ShotSpotter placement and effectiveness review, a citywide data governance audit, continuity of operations, the citywide fleet, and program evaluations (misconduct intake, ethics board oversight, and CPAD permitting). The plan reserves time for on‑demand advisory work and investigations.
Committee members discussed how the recommended governance committee within the administration should relate to existing council committees and how the audit office can remain responsive during rapidly evolving events. The auditor said the office will offer advisory services and has budgeted flexibility to respond to unforeseen needs. The committee then moved, seconded and approved the 2026 audit plan; Chair Elliot Payne announced, "The ayes have it, and that carries."
Auditors also provided updates on staffing (the office is funded for 14 FTEs in 2026 and has several new hires) and on open audit issues spanning several prior years; the office reported work to close overdue items and said after‑action reviews will be presented in April. The clerk was directed to receive and file the risk assessment and audit plan reports.
