COMMITTEE APPROVES CHANGES IN INTERNAL AUDIT SERVICES

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Deputy City Director Shiri Klima (Photo by Chris Frost)

Oxnard – The Finance and Governance Committee approved the first change with Vasquez & Company for on-demand internal audit services on Tuesday, November 23rd.

The agreement will cost the city $ 75,000 but not more than $ 100,000 and will extend the agreement through December 31, 2024.

In January 2020, the Finance & Governance Committee heard a presentation on the framework program for internal auditing. At the time, the staff recommended a thorough performance assessment of each city service every six years.

Deputy City Director Shiri Kilma said in September 2020, staff told the Finance and Governance Committee that the call for proposals for an internal audit contract would be on-demand until the city finds a source of funding for the program.

“In November we went back to you and then to the city council,” she said. “The City Council awarded Vasquez & Company a professional services contract after going through a full RFP (Request for Proposals) process.”

She said the original contract was $ 25,000 and the city has spent $ 10,000 worth of services so far.

“They were billed,” she said.

“The original contract price should not exceed $ 25,000.

“It really depends on which audits are requested and maybe we wouldn’t have used any of them, or maybe we would have used the full amount as needed,” said Klima. “Then there were tariffs that they calculated, namely the tariffs for 2021.”

She said the city is applying for the same grant, $ 25,000 a year.

“The total amount of the contract would be $ 100,000,” she said. “We’re adding $ 75,000 to the already existing $ 25,000. In 2022, Vasquez left his rates the same as they were in 2021. In 2023 and 2024, they increased their rates slightly, which is what we would expect from such an advisor.

During the committee’s comments, Gabriela Basua asked if the city had identified a source of funding for internal audit services.

Klima said they haven’t yet identified a source of funding, so it’s still an on-call contract.

“If the Council wants the more robust internal audit program, we can certainly come forward with that,” she said. “At this point we only introduced on-call duty, which is $ 25,000 a year.”

Basua would prefer the city raise the funds to comply with the staff’s recommendation to conduct a thorough performance assessment of each city department every six years.

“I know with the budget and constraints we had, this was the best we could do in 2020, but I would really love to see that move,” she said. “I would like to see the opportunity to add additional services.”

Klima said if the council is to go in that direction, the city should put out a call for tenders for the entire services.

“We should look at the value of this contract for another year just to have that margin,” she said. Mayor John Zaragoza said this could be a recommendation to the entire city council.

Basua said as the article progresses they are extending the agreement for another year and then doing an RFD to add the whole package.

“See where the funds are coming from and bring them back to the council,” she said.

City Manager Alex Nguyen said changing the deal would have different goals and different responsibilities.

“The contract that we have before us is of a certain scope and what we have recommended for a comprehensive program is a different set of services,” he said. That would be on top of it anyway. It wouldn’t replace that particular contract. I would recommend that we continue this contract but come back in the spring to discuss the full scope of our plans. It wasn’t going to happen all at once anyway. In this more robust contract, we can only do a few departments a year anyway. “


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