Res 2017-062/approving an agreement with Deloitte & Touche, LLP for the provision of internal auditing services

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• Adriana Buford, Accountant/Auditor The nature, timing, and extent of the specific procedures to be performed by the Internal Auditor will be discussed and approved at the completion of the initial program risk assessment and updated annually by the parties. Any substantive change to the Services described herein will be reduced to writing in the form of an Authorization of Change in Services as stipulated in Section 4.2 of the Agreement. Professional staff will be added as needed throughout the term of the engagement to execute the monitoring services as specified herein. 1.1 TASK 1— CDBG-DR MONITORING In monitoring projects managed by the City and its subrecipients, the Internal Auditor will: 1.1.1 Design. Under the design task, the Internal Auditor will generally assess types of projects and subrecipients and design a protocol and risk based plan based on this assessment (the "risk assessment") that will set the process and priorities for monitoring the City's CDBG-DR activities as well as the subrecipient's CDBG-DR activities. The Internal Auditor will customize a monitoring protocol for the City that is inclusive of relevant requirements from Chapter 24 of the Code of Federal Regulations (C.F.R.), depending upon the types of projects implemented by the City, as well as 2 C.F.R. 200. Further, the Internal Auditor will test the City's and the subrecipient's CDBG-DR activity against any agreement conditions specified in the City's grant agreement with HUD and the City's subrecipient agreements with their subrecipients. In addition, the Internal Auditor will review City activity by understanding the City's policies, procedures, and activities related to the administration of the CDBG-DR program, comparing those activities against grant requirements and best practices to identify areas of potential concern, testing for compliance with federal regulations and City policy and procedures, and communicating observations through periodic written reports to the City. The City's subrecipients, depending upon the risk of the entity and the Project, will undergo ongoing desk monitoring and may be subjected to one or more onsite visits whereby monitors can ascertain the adequacy of policies and procedures, accounting systems, project progress, and test a certain number of federal grant transactions. The purpose and nature of projects chosen by the City will drive the monitoring approach and the Internal Auditor will select the appropriate monitoring approach for each project. The Internal Auditor will utilize protocols that will address all types of projects under broad categories of housing, service, and infrastructure. Finally, the risk assessment of the subrecipient will involve examining the entity's audit findings from their single audits and will assess experience managing federal funding, indicators, among other key factors. 1. 1.2 Monitor. Under the monitoring task, the Internal Auditor will generally use the protocols and risk based monitory plan, communicate with subrecipients and establish monitoring cadence. The Internal Auditor will work with City staff to ensure that all subrecipients are aware of monitoring requirements and events. The Internal Auditor will devise a schedule based upon a risk assessment of the projects and the subrecipients so that together, the City and the Internal Auditor can engage in effective monitoring. Whether the monitoring required is a mix of ongoing desk monitoring of financial reports and progress reports or onsite monitoring visits, the Internal Deloitte & Touche, LLP Agreement for Internal Auditor Services 2017 3