042-2009 Procurement Division Audit
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OFFICE OF THE CITY MANAGER MEMORANDUM
no.042-2009
TO: Edward L. Tobin, Commissioner
FROM: Jorge M. Gonzalez, City Manager . ~~/
DATE: August 10, 2009
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SUBJECT: Procurement Division Audit JI
This memorandum is in response to your question regarding when the Procurement Division
was last audited by an outside auditor. The procedures and internal controls surrounding the
procurement function of the City are an integral part of our annual audit performed by our
external auditors, McGladrey & Pullen, LLP. State statutes require an annual audit by
independent public accountants.
No findings or recommendations for the City's procurement process were noted upon a
review of the last ten years of the Independent Auditor's Report on Intemal Control over
Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial
Statements Performed In Accordance With Government Auditing Standards. This report
includes findings or recommendations resulting from tests performed of compliance with
certain provisions of laws, regulations, contracts and grant agreements.
In addition to the above, the external auditor (McGladrey & Pullen, LLP) also provides an
Independent Auditor's Report on Compliance with Requirements Applicable to Each Major
Federal Program and State Project and on Internal Control Over Compliance in Accordance
with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General of the State of
Florida and Schedule of Expenditures on Federal Awards and State Financial Assistance.
The aforementioned report is also known as a Single Audit Report and is an audit of
compliance with certain provisions laws, regulations, contracts and grant agreements. OMB
Circular A-133 requires the auditor to audit and report on findings of non-compliance with
specific procedures and internal controls surrounding the procurement process. Upon
review of the last ten years of Single Audit Reports for the City, no findings or
recommendations for the City's procurement process were noted.
The City's Internal Auditor also performs periodic operational audits of City functions,
including the procurement process. The last operational audit report for the Procurement
Division was issued September 29, 2003 and covered the period October 1, 2000 through
December 31, 2002.
The operational audit report includes Management's response to the audit findings. Based
upon the internal audit's findings, management implements corrective actions for the
operational issues noted for the period under audit.
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The Procurement Division has implemented corrective actions as part of the last operational
audit. Internal Audit has advised that the Procurement Division will be audited again during
the Fiscal Year 2009110 Audit Plan.
The City's Audit Plan is based on the City's established risk assessments and practice for
developing an Audit Plan on an annual basis. Each year, the Audit Division presents the
Audited Area for the fiscal year to the Finance and Citywide Committee.
If you have any additional questions, please let me know.
C: Mayor and City Commission
JMG/pdw
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