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THE RECORD — LEDGER — CLUSTER D — GENERATED 2026-08-14

The Ledger — Cluster D

Audit-function assurances

Assurances made by or about the City's own audit function are logged here on the same terms as any other. The office that verifies others is not exempt from verification.

STATUS CODES: OPEN (NO ARTIFACT YET) · TESTED-HOLDS · TESTED-FAILS · TRUE BUT NON-INFORMATIVE (ACCURATE, BUT DIDN'T ESTABLISH WHAT IT'S TAKEN TO MEAN)

D1 — Corrective actions on the 380 audit to be implemented by January 1, 2025

OPEN   APRIL 17, 2024 — KARINA BRASGALLA, INTERIM DIRECTOR, ECONOMIC & INTERNATIONAL DEVELOPMENT

In the City's formal response to Audit Report A2023-07: formal processes for financial analysis, incentive tracking, deadline management, and closure verification "will be established," with implementation within six months.

What would confirm it

A published follow-up audit re-testing each finding; the revised policy with documented Council approval; populated monitoring records.

19 months past the stated date, no published follow-up located.

D2 — The 380 follow-up audit is scheduled for the second quarter of FY2026

TESTED-FAILS   SEPTEMBER 1, 2025 — INTERNAL AUDIT DEPARTMENT

FY2025–2026 Annual Audit Plan: 250 hours budgeted, with the qualifier "Dependent on FOAC decision."

The November 30, 2025 quarterly update shows zero hours charged — uniquely among that quarter's engagements, several of which had already begun.

D3 — External peer review of the department scheduled for the third quarter of FY2026

OPEN   500 HOURS BUDGETED — INTERNAL AUDIT DEPARTMENT

The department's own manual states this review is due every three years; the last one published was in 2022.

Zero hours charged as of the first quarter; no published result as of August 2026.

D4 — "The Internal Audit Department continues to maintain its independence"

OPEN   AS OF NOVEMBER 30, 2025 — INTERNAL AUDIT DEPARTMENT

Stated in the FY2026 First Quarter Plan Update, while the Chief Internal Auditor position was vacant.

What would confirm it

The annual independence confirmation that professional auditing standards require the chief audit executive to deliver, including disclosure of any impairment and the safeguards applied. Not located in the public record.

D5 — The consultant's final report and Council briefing, promised for July 2025

TESTED — MIXED   WEAVER AND TIDWELL LLP, JUNE 2025 PRELIMINARY RESULTS

Delivered September 2025 — two months late. The oversight committee did not take it up until November 14, 2025 — two months after that. The Chief Internal Auditor retired August 1, 2025, between the promised and actual delivery dates.

One concern resolved in the department's favor: an earlier question about whether the final report might understate the maturity gap found in the preliminary does not hold — the final states the identical finding as the preliminary, and is longer and more detailed, not shorter.

D6 — "Foundational practices are in place, meet minimum audit standards"

OPEN   WEAVER AND TIDWELL LLP, JUNE 2025

The report separately states the department has demonstrated alignment with audit standards "via required peer reviews" — the most recent of which was published in 2022, now outside the three-year cycle the department's own manual describes.

Accurate when made; its evidentiary basis has since aged past the review cycle it depends on.

D7 — Employees may report concerns without retaliation

CONTRADICTED   AS OF JUNE 2025 ASSESSMENT

Implicit in the operation of the City's employee hotline. The consultant found the procedures manual lacks defined anti-retaliation controls — no definitions of retaliation, no training requirements — and no provision for independent or secondary review. One person is solely responsible for receiving and deciding whether to escalate every report.

D8 — The 380 follow-up audit will be performed — stated twice

TESTED-FAILS   TWICE — INTERNAL AUDIT DEPARTMENT, APPROVED BY THE OVERSIGHT COMMITTEE BOTH TIMES

First scheduling: FY2024–2025 plan, fourth quarter (June–August 2025). Second scheduling: FY2025–2026 plan, second quarter (December 2025–February 2026), with a discretionary condition added that wasn't present the first time.

Not performed in FY2025; zero hours charged as of the FY2026 first quarter; unpublished through May 2026. More than 25 months after the original audit, 17 months past the stated corrective-action deadline.

D9 — Peer-review readiness self-assessments

TESTED-FAILS   SCHEDULED Q3 FY2025 — INTERNAL AUDIT DEPARTMENT

One self-assessment carried over into FY2026, drawing a small fraction of its budgeted hours; the peer review itself shows zero hours as of the same reporting period. No peer review has been published since 2022.

D12 — "There's nothing that we should be alarmed in terms of their misusing money"

TRUE BUT NON-INFORMATIVE   A CITY REPRESENTATIVE, TWO DAYS AFTER THE PRELIMINARY RESULTS WERE PRESENTED

Made roughly three months before the assessment being discussed was actually complete.

What the assessment was actually scoped to do

Assess the audit department's structure, roles, and practices against professional standards — a capability-maturity review, not a financial audit or a review of transactions. Misuse of funds was never within its scope.

The statement is accurate and answers a question the assessment was never built to ask. Logged not as criticism of the speaker — clarifying "this is about process, not money" is a reasonable thing to say — but because a true, reassuring statement about the wrong scope is exactly the kind of assurance that needs an artifact behind it rather than a speaker.

ONE ENTRY FROM THE SOURCE RECORD — A LOG OF UNANSWERED OUTREACH TO THE CHIEF INTERNAL AUDITOR'S OFFICE — IS HELD OUT OF THIS VERSION PENDING A FORMAL RECORDS REQUEST, AND WILL BE ADDED ONCE THAT RECORD EXISTS.

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