Staff warns Glendale's internal audit function is understaffed; public urges independent audit commission

Natalie Manami Valdivia, Glendale's principal internal auditor, told the Charter Review Committee on April 2 that the city's internal audit function was created after a late‑1990s review recommended a standalone audit operation and an audit committee. The office set professional standards and adopted a dual reporting relationship to the city manager (administrative) and the council‑appointed audit committee (functional). Staffing peaked at seven, later dropped to four, and is now down to one auditor because of retirements and separations.

Manami Valdivia described the audit office's risk‑based annual work plan: a continuous, quarterly risk assessment that combines Power BI analytics (to find high dollar contracts, expiring agreements and outliers) and qualitative input from management. The office categorizes audit candidates by four risk types—strategic (including reputational), financial, operational and compliance—and scores impact and likelihood to prioritize audits. She said benchmarking of peer cities and options including outsourcing or co‑sourcing will be completed by the audit committee's April 30 packet.

Committee members asked for practical examples and for an illustration of how the audit committee selects and reviews contracts. Public commenters, including Herbert Milano and Beth Brooks, pushed for a fully independent, paid audit commission with authority to set audit priorities and sufficient staffing; Milano presented his review suggesting that of 91 contracts over $1 million, only three had been audited in his sample and said the scale of contracts requires a more robust function.

The committee did not adopt charter language at this meeting but asked staff to return with a concise, practical overview of audit types, an example of one contract audit, and options for structuring and resourcing the office. Members separately raised the question whether the audit committee should be moved from ordinance authority into the charter to protect its independence.

What happens next: Staff plans to deliver benchmarking results by April 30, provide a sample contract audit high‑level review and offer draft options for strengthening the audit function or codifying it in the charter.