The mission of the Office of Internal Audit is to provide independent, objective assurance and consulting services designed to add value and improve the Urban County Government’s operations. It helps the local government accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The scope of work of the Office of Internal Audit is to determine whether the Urban County Government’s procedures of risk management, internal control, and governance, as designed and represented by management, are adequate and functioning in a manner to ensure:
- Risks are appropriately identified and managed.
- Significant financial, managerial, and operating information is accurate, reliable, and timely.
- Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
- Resources are acquired economically, used efficiently, and adequately protected.
- Programs, plans, and objectives are achieved.
- Quality and continuous improvements are fostered in the Urban County Government’s control process.
- Conduct scheduled Internal Audits to evaluate controls, noting adherences to correct practices while pointing out weaknesses, and recommending cost effective improvements.
- Perform special projects in areas needing corrective actions.
- Follow up on prior audits to determine if agreed upon recommendations were implemented.
- Advise and consult with Urban County Government Management for improvements in operating efficiencies, effectiveness and results.
- Promote continuous training and skills development, quality assurance, and adherence to independence with integrity for the internal audit staff.
Audit Selection Process
The Office of Internal Audit prepares an annual audit plan based upon a risk assessment. Risk assessment techniques are used to identify areas or activities that represent considerable risk to the Urban County Government. The risk assessment is designed to identify auditable activities, identify the risks associated with those activities, and determine what external factors serve to mitigate the risks. Areas considered to be high-risk receive priority in the annual audit plan.
The factors that will typically be evaluated include the following:
- Control Environment (personnel turnover and expertise, Department/Division size, operational/organizational changes, etc.)
- Risk Assessment (complexity/volume of transactions, value of receipts/inventories, impact on continuing operations, compliance issues, etc.)
- Control Activities (physical controls, segregation of duties, performance indicators, policies and procedures, etc.)
- Information & Communications (automated vs. manual systems, system maintenance, quality, etc.)
Quality Assessment Review
The Institute of Internal Auditor’s Standards for the Professional Practice of Internal Auditing (Standards) requires that internal audit functions undergo a comprehensive Quality Assessment Review (QAR) at least once every five years. The principal objectives of the QAR are to assess the Office of Internal Audit’s conformity to the Standards, evaluate its effectiveness in carrying out its mission (as set forth in its charter and expressed in the expectations of management), and identify opportunities to enhance its management and work processes, as well as its value to the Lexington Fayette Urban County Government.
We are pleased to report that the results of the QAR indicate that the LFUCG Office of Internal Audit “generally conforms” to the Standards, which is the highest rating that can be achieved in the QAR process. The results of the QAR.
Internal Audit Board
Ultimate supervision and oversight of the Office of Internal Audit rests with an Internal Audit Board. The Board is comprised of seven voting members, including four members from the community, two Urban County Council members, and the Mayor or his designee. The CAO and Council Administrator are non-voting Ex-Officio members. This reporting structure promotes auditor independence.
- Gary Ludwick, Chair
- Gwen Pinson, Vice-Chair
- Fred Brown
- Jennifer Burke
- Daniel King
- William O' Mara
Ex-Officio (non-voting members):
- Sally Hamilton
- Stacey Maynard
Internal Audit Reports