Internal Audit Services

The vendor is required to provide to obtain proposals from qualified proposers to perform internal audit services.
- Development of the annual audit plan:
• The successful proposer shall develop an annual audit plan that identifies individual audits to be conducted during the next fiscal year and submit the plan for approval by agency governing board.
• The annual audit plan shall be developed using risk assessment techniques to identify risk factors that affect agency major systems and controls, including, but not limited to, accounting systems and controls, administrative systems and controls, and electronic data processing systems and controls, ensuring compliance with contract processes and controls and for monitoring agency contracts.
• The successful proposer shall establish a methodology in the annual audit plan for assigning risk factors and weights and for prioritizing the audit work schedule.
• The successful proposer shall interview agency executive director, board, and other management as applicable for input on proposed projects or key processes to be included in the annual audit plan.
• The successful proposer shall present the internal audit annual plan at a meeting of agency governing board for approval. within thirty (30) days of approval, the plan will be posted on the agency’s website.
- Implementation of the annual audit plan
• The successful proposer shall implement the approved annual audit plan. the successful proposer shall complete all activities in the annual audit plan for the current fiscal year and submit the final annual audit plan to agency governing board no later than august 31
• The successful proposer shall perform the duties outlined of the state internal auditing act.
a. Report directly to agency governing board;
b. Develop an annual audit plan;
c. Conduct audits as specified in the audit plan and document deviations;
d. Prepare audit reports;
e. Conduct quality assurance reviews in accordance with professional standards as provided by section 2102.011 and periodically take part in a comprehensive external peer review; and
f. Conduct economy and efficiency audits and program results audits as directed by agency governing board.
g. The program of internal auditing conducted by agency must provide for the auditor to:
a. Have access to the executive director; and
b. Be free of all operational and management responsibilities that would impair the auditor’s ability to review independently all aspects of agency operation.
- Reporting and related services
• Agency governing board, an individual commissioner or executive management, the successful proposer shall provide periodic written updates on internal audits being conducted and internal audit services being provided to include any issues found so that appropriate corrective action can be taken.
• The successful proposer shall conduct entrance, interim, and final audit meetings with the auditee and executive management for each audit.
• The successful proposer shall prepare a draft report of the results of each internal audit or other internal audit service completed. a draft audit report shall be provided to the auditee and executive management for review and comment prior to the final report being issued.
• The successful proposer shall obtain responses from executive management for each finding and observation presented in the draft report.
• The successful proposer shall provide a final report of the results of each internal audit or other internal audit service completed to agency governing board and executive management
• Each final report will include an executive summary, scope, background, significant findings of risk exposures and control deficiencies, recommendations for correcting each significant finding, and management’s response to findings. each report will also include observations representing opportunities for agency to improve the effectiveness and efficiency of its operations in the audited or reviewed area, as applicable.
• At agency request, the successful proposer shall follow up and monitor agency corrective and preventative action plans to resolve findings and observations from internal audits and/or other internal audit services.
- Annual audit reports
• The successful proposer shall develop and submit the internal audit annual report for approval by agency governing board.
• The successful proposer shall submit the approved internal audit annual report to the governor, the legislative budget board, the state auditor’s office, and agency governing board and executive director. the internal audit annual report shall be prepared in accordance with the state auditor’s office’s guidelines for submitting and posting the internal audit annual report and periodic internal audit reports.
- Ethics point and state auditor’s hotline
• The successful proposer shall manage ethics point, an internet and telephone-based reporting system that can be accessed by agency employees.
• This system is intended to supplement the existing avenues within the agency for employees to report concerns.
• The ethics point system is provided by a third-party vendor, Navex global.
• The vendor provides round-the-clock monitoring, intake and distribution of reports.
• The system directly routes any reports to the internal auditor unless the concerns relate to any member of the internal audit function or any member of agency governing board
• The successful proposer shall review reports submitted through ethics point and consult with the executive director or agency governing board, as appropriate, for any further action to be taken.
• Agency may choose to utilize another internet and telephone-based reporting system in the future,
• The state auditor’s office may coordinate investigative work with the internal auditor depending on the type of fraud complaints received by the state auditor’s hotline.
•  The successful proposer shall review reports submitted through the state auditor’s hotline and consult with the executive director or agency governing board, as appropriate, for any further action to be taken.
- Contract Period/Term: 1 year
- Non-Mandatory Pre-Proposal Conference Date: March 20, 2025
- Questions/Inquires Deadline: March 27, 2025