City auditor outlines FY26 audit plan including water, contracts and IT reviews
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Summary
City Auditor Susan Edwards presented the proposed FY26 audit plan focusing on risk-based projects: assistance with the annual financial/single audit, audits of Arlington Water Utilities, civil service, contract management and IT (including segregation of duties in Workday), construction audits coordinated with an external firm, and continued fraud hotline monitoring and follow-ups on prior audits.
City Auditor Susan Edwards delivered the proposed audit plan for fiscal year 2026, describing a risk-assessment approach and listing specific projects staff plan to undertake.
Edwards said the audit plan bases project selection on changes in management or technology, operational complexity, applicable laws and regulations, the number and value of grants and contracts administered, and the length of time since prior audits. The FY26 program includes annual external-audit assistance (support related primarily to the single audit), a review of Arlington Water Utilities focusing on water quality and safety processes, a civil-service audit to evaluate administration and compliance, and a contract-management audit to assess adherence to contract terms and administration practices. Staff plan an information-technology audit to evaluate IT project selection and management and a segregation-of-duties review in Workday to assess internal controls over critical functions.
The auditor also described a Texas Intrastate Fire Mutual Aid System (TIFMAS) deployment audit to verify reimbursement documentation and a coordinated construction-audit program using an external construction-audit firm (the city will facilitate procurement and reporting). The office will continue fraud, waste and abuse hotline monitoring and keep hours in reserve for special assignments requested by management or council. Edwards noted the new Government Auditing Standards effective December 2025 will require policy and procedure updates and that the office will undergo a required peer review in FY26.
Council members asked clarifying questions about triggers and timing for external audits; Edwards said the external financial audit kickoff occurred in August with completion expected by March and that external firms will perform construction audits while internal audit staff facilitate the work. No formal action or vote occurred in the afternoon session on the audit plan; Edwards closed by offering to answer additional questions.
