Glendale committee hears audit benchmarking as residents urge independent audit commission

The Glendale Charter Review Committee on May 7 received an extensive briefing on the city's internal audit operations and benchmarking results and heard public commenters urge stronger, charter-protected audit oversight.

Principal internal auditor Natalie Manami Valdivia told the committee that Glendale's internal audit division is authorized for three full-time equivalents but is operating with one filled position and two vacancies, and that the team completed 37 audits over the past 24 months (mostly shorter "continuous" analytics audits). She described the audit program's risk-based annual process, how director "picks" and a risk scoring matrix inform the work plan, and how the audit committee and city manager review and approve the final plan. "Internal audit evaluates whether operations, controls and compliance are working well across all city departments," Valdivia said, describing sample findings from a Fire Prevention/Environmental Management Center audit that identified unbilled inspections, reconciliation gaps and about $100,000 in aged receivables.

Why it matters: committee members and members of the public framed the briefing as central to trust in government oversight and to the committee's work on possible charter changes. The presentation showed how Glendale's practices compare with peer charter cities, and exposed gaps committee members said could leave taxpayers vulnerable if audit staffing or independence are weakened.

Public comments and pressure for an independent commission

Resident Herbert Milano used his public-comment time to press for more independence and funding for audit functions. "This report ... means nothing if it doesn't get budgeted," Milano said, arguing the city should put audit funding and commission independence in the charter and proposing a five-member, paid audit commission with the authority to hire the city auditor. Milano repeatedly alleged that overtime practices and contract change orders have escaped adequate scrutiny and urged the committee to propose stronger safeguards.

Staff response and committee questions

City staff said external financial audits required by the charter and state law remain separate from internal audit work. Committee members asked whether the full audit universe and risk-assessment results are shared with the audit committee; Valdivia said the proposed work plan is taken to the city manager's office and then to the audit committee for review, and that quarterly reports track outstanding audit recommendations and implementation status. She also described using analytics tools for "continuous audits" to flag user-access and other exceptions.

Division structure and benchmarking findings

Valdivia summarized the division's legal foundations (internal audit established by ordinance) and a benchmarking survey of 10 peer charter cities (8 responded). The survey found most peer cities keep audits in-house; Glendale is mid-range on budget (reported in the presentation as about $500,000$1,000,000) and staffing when fully funded, and uses a hybrid approach combining Government Auditing Standards (the "Yellow Book") and IIA internal audit standards (the presentation labeled this approach an "orange book"). She told the committee the internal audit function issues findings publicly, follows up on management responses and tracks implementation in a Microsoft List database with quarterly reminders.

Votes and procedural business

The committee approved draft minutes from the April 2 meeting on a motion by Member Meek with a recorded result Chair Flower announced as "5 in favor, 3 abstentions." No ordinance or charter change was adopted; members agreed to carry several items — including proposed qualifications for the city clerk and treasurer and the question of audit-committee structure — to future agendas for more concrete language.

What comes next

Members asked staff to provide materials and to return with concrete options. Several members suggested possible charter language that would enshrine the audit committee or require the committee to approve an annual audit work plan; legal staff cautioned about embedding staffing minimums in a charter because it can reduce managerial flexibility. The committee left the topic open and asked members to submit drafted language ahead of the next meeting.

Sources: Presentation and Q&A by Natalie Manami Valdivia, Glendale principal internal auditor; public comments by Herbert Milano; committee discussion and roll-call vote on minutes.