LTC 321-2017 The Internal Audit FunctionBEACH
OFFICE OF THE CITY MANAGER
NO. LTC #
321-2017
LETTER TO COMMISSION
TO: Mayor Philip Levine and Members o the City Cmission
FROM: Jimmy L. Morales, City Manager
DATE: June 15, 2017
SUBJECT: THE INTERNAL AUDIT FUNCTIO
The purpose of this Letter to Commission (LTC) is to inform the Mayor and Commission of an
administrative transfer of reporting duties that I believe will strengthen oversight and accountability.
Effective Monday, June 19, 2017, the Office of the Internal Auditor will report directly to the City
Manager.
For many years (predating my tenure as City Manager), the internal audit function has been a
division within the Office of Budget and Performance Improvement. Among the lessons I have
learned in light of the bank fraud which took place at the end of last year, it is clear to me that the
internal audit function needs to be a stronger tool for the City Manager, and the elevating the office
to be a direct report to the City Manager will ensure the kind of serious response from all
departments in the City as well as outside vendors and agencies which are also audited by the City.
I think it also sends a clear message to the Audit Committee and our residents that information and
guidance provided to the internal auditor will be considered at the highest levels of this government.
This model of direct reporting by the internal audit function to the CEO in government is quite
common, including the practice for many years at Miami -Dade County and apparently the practice
here at the City many years ago.
There is no budgetary impact to the transfer of reporting duties. Our current director of Internal
Audit, Jim Sutter, and his staff will remain in their offices on the 3rd floor of City Hall. I already have
a good working relationship with Mr. Sutter, and I think the transition will be a smooth one.
Please do not hesitate to contact me with any questions.