WEBVTT 00:00:02.240 --> 00:00:04.799 Hello everyone and welcome. On behalf of 00:00:04.799 --> 00:00:06.319 the City of Albuquerque's Office of 00:00:06.319 --> 00:00:08.000 Internal Audit, I'd like to welcome you 00:00:08.000 --> 00:00:10.320 to today's presentation. We're excited 00:00:10.320 --> 00:00:11.759 to be here to share a little bit about 00:00:11.759 --> 00:00:14.480 who we are, the work we do, and how our 00:00:14.480 --> 00:00:16.240 office supports accountability and 00:00:16.240 --> 00:00:18.480 transparency within the City. Thank you 00:00:18.480 --> 00:00:20.480 for taking the time to join us. Let's go 00:00:20.480 --> 00:00:24.039 ahead and get started. 00:00:24.400 --> 00:00:25.760 We'll be walking through the key 00:00:25.760 --> 00:00:27.359 functions and responsibilities of 00:00:27.359 --> 00:00:29.279 internal audit, highlighting how our 00:00:29.279 --> 00:00:30.960 work promotes transparency and 00:00:30.960 --> 00:00:32.480 strengthens accountability and 00:00:32.480 --> 00:00:35.880 government operations. 00:00:36.320 --> 00:00:38.320 There are often misconceptions about our 00:00:38.320 --> 00:00:40.559 office. We want to assure you that our 00:00:40.559 --> 00:00:42.719 purpose is to support improvement. We 00:00:42.719 --> 00:00:44.480 work alongside departments to strengthen 00:00:44.480 --> 00:00:47.120 processes and procedures and we provide 00:00:47.120 --> 00:00:48.719 recommendations that help enhance 00:00:48.719 --> 00:00:51.440 efficiency and effectiveness. 00:00:51.440 --> 00:00:54.640 Our mission is central to everything we 00:00:54.640 --> 00:00:56.960 do in the office of internal audit. We 00:00:56.960 --> 00:00:58.879 focus on providing evaluations that are 00:00:58.879 --> 00:01:01.440 both objective and independent, meaning 00:01:01.440 --> 00:01:03.600 our services are impartial and based on 00:01:03.600 --> 00:01:06.720 facts, not influence. Beyond identifying 00:01:06.720 --> 00:01:08.720 issues, we collaborate with City 00:01:08.720 --> 00:01:10.320 departments to develop effective 00:01:10.320 --> 00:01:12.000 solutions that strengthen City 00:01:12.000 --> 00:01:14.960 operations. Ultimately, our goal is to 00:01:14.960 --> 00:01:16.960 promote transparency, reinforce 00:01:16.960 --> 00:01:18.960 accountability, and improve efficiency 00:01:18.960 --> 00:01:21.840 and effectiveness, all in service to the 00:01:21.840 --> 00:01:25.479 citizens of Albuquerque. 00:01:25.680 --> 00:01:27.920 OIA offers a wide range of services that 00:01:27.920 --> 00:01:30.560 go beyond traditional auditing. Our work 00:01:30.560 --> 00:01:32.720 includes performance audits, special 00:01:32.720 --> 00:01:34.880 requests, qualifying contribution 00:01:34.880 --> 00:01:37.439 verification, salary analysis for the 00:01:37.439 --> 00:01:40.159 mayor and City council, vendor audits, 00:01:40.159 --> 00:01:42.000 and monitoring how well departments 00:01:42.000 --> 00:01:44.479 implement audit recommendations. In 00:01:44.479 --> 00:01:47.119 addition to these services, OIA also 00:01:47.119 --> 00:01:49.040 provides training and consultation to 00:01:49.040 --> 00:01:51.600 City departments. We share our expertise 00:01:51.600 --> 00:01:54.000 in areas such as data analytics, 00:01:54.000 --> 00:01:56.320 policies and procedures, and internal 00:01:56.320 --> 00:01:58.799 control best practices, all aimed at 00:01:58.799 --> 00:02:00.799 improving efficiency, strengthening 00:02:00.799 --> 00:02:03.040 compliance, and ultimately supporting 00:02:03.040 --> 00:02:04.880 better government for the citizens of 00:02:04.880 --> 00:02:07.600 Albuquerque. 00:02:07.600 --> 00:02:09.119 Here is an example of the City of 00:02:09.119 --> 00:02:11.039 Albuquerque's organizational chart, 00:02:11.039 --> 00:02:13.200 which helps illustrate where OIA fits 00:02:13.200 --> 00:02:17.120 within the overall City structure. 00:02:17.120 --> 00:02:18.640 It's important to note that while 00:02:18.640 --> 00:02:20.480 organizational charts may change over 00:02:20.480 --> 00:02:23.440 time, OIA's role remains the same. We 00:02:23.440 --> 00:02:25.200 were established as an independent 00:02:25.200 --> 00:02:27.040 office within City government, which 00:02:27.040 --> 00:02:28.720 allows us to carry out our work 00:02:28.720 --> 00:02:32.560 objectively and without influence. 00:02:32.560 --> 00:02:34.560 The City's accountability and government 00:02:34.560 --> 00:02:37.920 ordinance located in section 2-10-11 00:02:37.920 --> 00:02:40.480 states that internal audit reports to 00:02:40.480 --> 00:02:41.920 the accountability and government 00:02:41.920 --> 00:02:44.319 oversight committee. The committee 00:02:44.319 --> 00:02:46.800 consists of five members. Each is a 00:02:46.800 --> 00:02:49.040 resident of the City, not employed by 00:02:49.040 --> 00:02:51.120 the City, and does not have any 00:02:51.120 --> 00:02:55.519 relationship with anyone in the City. 00:02:55.519 --> 00:02:58.160 When fully staffed, OIA is comprised of 00:02:58.160 --> 00:03:00.800 seven full-time employees, the City 00:03:00.800 --> 00:03:03.680 auditor, the lead auditor, two principal 00:03:03.680 --> 00:03:06.480 auditors, two staff auditors, and an 00:03:06.480 --> 00:03:09.280 executive operations coordinator. In 00:03:09.280 --> 00:03:12.400 2025, OIA was able to add interns to 00:03:12.400 --> 00:03:15.720 their department. 00:03:16.959 --> 00:03:18.879 Now that you have a sense of who we are, 00:03:18.879 --> 00:03:21.360 let's take a closer look at what we do. 00:03:21.360 --> 00:03:22.400 One of our most important 00:03:22.400 --> 00:03:24.239 responsibilities is developing and 00:03:24.239 --> 00:03:26.560 executing the annual audit plan. This 00:03:26.560 --> 00:03:29.040 process is strategic and ensures that OIA 00:03:29.040 --> 00:03:31.200 is focusing on the areas of highest risk 00:03:31.200 --> 00:03:33.519 and greatest impact for the City. In 00:03:33.519 --> 00:03:35.599 other words, planning is essential to 00:03:35.599 --> 00:03:38.480 making sure our work is bringing real 00:03:38.480 --> 00:03:41.480 value. 00:03:41.840 --> 00:03:43.519 There is a lot that goes into developing 00:03:43.519 --> 00:03:46.400 the annual audit plan. Each year, OIA 00:03:46.400 --> 00:03:48.319 brings the process by sending out 00:03:48.319 --> 00:03:50.239 surveys to gather input and audit 00:03:50.239 --> 00:03:52.400 suggestions. These surveys are 00:03:52.400 --> 00:03:54.319 distributed to the Mayor'sOoffice, City 00:03:54.319 --> 00:03:56.720 Council, department directors, City 00:03:56.720 --> 00:03:59.200 employees, and even citizens. 00:03:59.200 --> 00:04:00.959 Participants are asked to identify 00:04:00.959 --> 00:04:03.360 departments, divisions, contracts, 00:04:03.360 --> 00:04:05.519 vendors, and processes that might 00:04:05.519 --> 00:04:07.439 benefit from an independent audit or 00:04:07.439 --> 00:04:09.920 review. This feedback is then combined 00:04:09.920 --> 00:04:11.680 with our risk assessments to ensure the 00:04:11.680 --> 00:04:13.760 annual audit plan focuses on the areas 00:04:13.760 --> 00:04:17.759 of greatest need and impact. 00:04:17.759 --> 00:04:20.160 After gathering audit suggestions, OIA 00:04:20.160 --> 00:04:21.680 conducts a risk assessment to help 00:04:21.680 --> 00:04:23.520 prioritize where our efforts will have 00:04:23.520 --> 00:04:26.240 the greatest impact. We consider several 00:04:26.240 --> 00:04:28.800 factors including financial exposure, 00:04:28.800 --> 00:04:31.280 regulatory compliance, environmental 00:04:31.280 --> 00:04:33.680 risks, the time since the last audit, 00:04:33.680 --> 00:04:36.000 and the results of previous audits. 00:04:36.000 --> 00:04:37.759 Topics that receive the highest risk 00:04:37.759 --> 00:04:39.520 ratings are then included in the annual 00:04:39.520 --> 00:04:41.280 audit plan to be completed in the 00:04:41.280 --> 00:04:44.240 upcoming year. 00:04:44.240 --> 00:04:46.560 Once the annual audit plan is developed, 00:04:46.560 --> 00:04:47.919 it is first presented to the 00:04:47.919 --> 00:04:49.600 accountability and government oversight 00:04:49.600 --> 00:04:51.440 committee. After the committee's 00:04:51.440 --> 00:04:53.040 approval, the plan is transmitted to 00:04:53.040 --> 00:04:54.880 City Council for final approval through 00:04:54.880 --> 00:04:57.600 a resolution. For anyone interested in 00:04:57.600 --> 00:04:59.600 learning more, each year's approved plan 00:04:59.600 --> 00:05:02.639 is posted on OIA's website. You can also 00:05:02.639 --> 00:05:04.400 scan the QR code on this slide to view 00:05:04.400 --> 00:05:06.720 the most current audit plan as well as 00:05:06.720 --> 00:05:10.560 audits that are currently in progress. 00:05:10.560 --> 00:05:12.080 Now, we'll turn our attention to the 00:05:12.080 --> 00:05:14.639 audit process itself. This section walks 00:05:14.639 --> 00:05:17.039 through how OIA plans, conducts, and 00:05:17.039 --> 00:05:19.600 reports audits. By understanding the 00:05:19.600 --> 00:05:21.840 process, you'll see how each step is 00:05:21.840 --> 00:05:24.400 designed. 00:05:24.400 --> 00:05:26.479 There are several key steps involved in 00:05:26.479 --> 00:05:28.639 conducting an audit. First is a planning 00:05:28.639 --> 00:05:30.479 stage. We begin by sending a 00:05:30.479 --> 00:05:32.400 notification of audit and scheduling an 00:05:32.400 --> 00:05:33.680 introduction meeting with client 00:05:33.680 --> 00:05:36.320 management and staff. During this stage, 00:05:36.320 --> 00:05:38.160 we also conduct a risk assessment 00:05:38.160 --> 00:05:40.639 specific to the audit. Develop the audit 00:05:40.639 --> 00:05:42.639 program and brief management on the 00:05:42.639 --> 00:05:44.800 objectives, scope, and planned audit 00:05:44.800 --> 00:05:48.400 tests. Next is fieldwork. Here we 00:05:48.400 --> 00:05:50.639 perform sampling and audit tests, 00:05:50.639 --> 00:05:53.039 identify any deviations, and work with 00:05:53.039 --> 00:05:55.680 staff to address questions. Preliminary 00:05:55.680 --> 00:05:57.759 issues are discussed with management, 00:05:57.759 --> 00:05:59.680 and we begin developing possible 00:05:59.680 --> 00:06:01.280 recommendations. 00:06:01.280 --> 00:06:03.680 The third step is reporting. We provide 00:06:03.680 --> 00:06:05.440 a draft report to management which 00:06:05.440 --> 00:06:07.840 includes the issues identified and our 00:06:07.840 --> 00:06:10.160 proposed recommendations. Management 00:06:10.160 --> 00:06:11.840 then responds with their implementation 00:06:11.840 --> 00:06:14.479 plans and formal responses and the 00:06:14.479 --> 00:06:16.080 report is presented to the committee for 00:06:16.080 --> 00:06:18.880 review and approval. Finally, there is 00:06:18.880 --> 00:06:21.280 monitoring. OIA follows up on the 00:06:21.280 --> 00:06:23.360 implementation of recommendations until 00:06:23.360 --> 00:06:27.759 they are fully addressed and complete. 00:06:27.759 --> 00:06:29.840 OIA's ultimate objective is to help make 00:06:29.840 --> 00:06:31.520 the City of Albuquerque a better place 00:06:31.520 --> 00:06:33.600 to live. We do this by ensuring that 00:06:33.600 --> 00:06:35.759 City government operates efficiently, 00:06:35.759 --> 00:06:38.000 effectively, and with accountability to 00:06:38.000 --> 00:06:40.800 its citizens. Through the audit process, 00:06:40.800 --> 00:06:42.400 from planning and execution to 00:06:42.400 --> 00:06:44.479 reporting, we provide assurance that 00:06:44.479 --> 00:06:46.080 departments are meeting their objectives 00:06:46.080 --> 00:06:47.840 and identify opportunities for 00:06:47.840 --> 00:06:51.600 improvement where needed. 00:06:51.600 --> 00:06:53.759 OIA benefits the City of Albuquerque by 00:06:53.759 --> 00:06:55.840 making recommendations that reduce 00:06:55.840 --> 00:06:58.720 costs, increase revenues, increase 00:06:58.720 --> 00:07:00.880 effectiveness and efficiency, and 00:07:00.880 --> 00:07:05.000 improve internal controls. 00:07:05.039 --> 00:07:06.560 You can play an important role in 00:07:06.560 --> 00:07:09.120 supporting OIA. First, if you're aware 00:07:09.120 --> 00:07:11.680 of areas of high risk or processes that 00:07:11.680 --> 00:07:13.199 might benefit from an independent 00:07:13.199 --> 00:07:15.840 review, please share them with us. 00:07:15.840 --> 00:07:17.840 Second, when we conduct audits, your 00:07:17.840 --> 00:07:20.319 cooperation is essential. Responding to 00:07:20.319 --> 00:07:22.000 our requests in a timely and thorough 00:07:22.000 --> 00:07:24.479 manner and being open and honest helps 00:07:24.479 --> 00:07:26.319 us work together toward our shared goal 00:07:26.319 --> 00:07:28.880 of improving City government. We've 00:07:28.880 --> 00:07:30.720 included our contact information on this 00:07:30.720 --> 00:07:33.120 slide. You can also scan the QR code to 00:07:33.120 --> 00:07:35.280 visit our website or use the additional 00:07:35.280 --> 00:07:37.440 QR code to send input directly to our 00:07:37.440 --> 00:07:39.520 office. Thank you all for your time and 00:07:39.520 --> 00:07:41.599 attention today. At this point, one of 00:07:41.599 --> 00:07:43.520 our team members will be happy to answer 00:07:43.520 --> 00:07:46.840 any questions.