A new policy calling for two “deep dive” special audits as part of Yorba Linda’s regular, annual financial review conducted by an outside, independent auditing firm has been implemented on a unanimous City Council vote.
Targeted for the special audits are the city’s credit card policies, procedures, approvals and charges and the city’s surplus property disposal procedures, topics chosen by the city’s Finance Committee composed of Mayor Peggy Huang and Councilwoman Beth Haney.
And tentatively designated by the committee for “deep dive” examinations at the end of the current fiscal year are citywide contract administration practices and overtime utilization by city departments.
Topics of proposed special audits for future years include fixed asset inventory procedures and city yard tank fuel usage and accounting from a list developed by city staff. Committee members can suggest other possible topics.
In the credit card review, auditors will examine “current credit card policies and procedures, as well as related forms, and compare them to industry best practices,” according to a report from Finance Director Scott Catlett.
Auditors will review the approval process for credit card charges and “note any identified exceptions to proper approvals or any other issues with the approval process through an examination of a sample of approval transactions,” Catlett stated.
And, auditors will examine “a sample of the actual charges made on the cards during last fiscal year to confirm that charges have been consistent with established policies and for appropriate purposes,” Catlett noted.
In regards to surplus property, Catlett noted, auditors will review current practices relative to disposal of property such as vehicles, equipment and furniture and “make recommendations for instituting more formalized procedures consistent with industry best practices,” with auditors reporting on “any concerns identified during their review.”