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Internal Audit 2025 Annual Report and Audit Plan
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DESCRIPTION: To approve the 2025 Audit Plan for the Office of Internal Audit and Compliance |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorization for the Office of Internal Audit and Compliance to conduct internal audits in accordance with the 2025 Audit Plan and Internal Audit Charter.
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ISSUE/BACKGROUND:
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The purpose of the Office of Internal Audit and Compliance (OIAC) is to provide independent, objective assurance and consulting services designed to add value and improve the organization’s operations.
As the governing body of the RTA, the Board of Commissioners determines agency policy and oversees the funding, operation, and expansion of public transportation in the City of New Orleans and the metro area. This oversight function includes establishing accountability for senior management as they seek to accomplish its mission and objectives.
Operating synergistically with the Board’s mission is the Office of Internal Audit and Compliance’s mission and purpose to provide assurance to the Board that RTA is operating effectively and efficiently in carrying out its mission. Internal Audit provides this assurance by assessing and reporting on the effectiveness of governance, risk management, and control processes designed to help the organization achieve strategic, operational, financial, and compliance objectives.
Per the Internal Audit Charter, the Board of Commissioner must approve the Internal Audit Plan each year. In addition, the Board must receive an Annual Report of the work done by the department. This report and resolution will serve to address both of those mandatory charter elements.
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DISCUSSION:
The Office of Internal Audit and Compliance will continue to operate in accordance with the guidelines established in the charter. The charter continues to highlight key areas central to the internal audit activity. They include mission and purpose, auditing standards, authority, independence and objectivity, scope and responsibility, annual audit plan, audit reporting, compliance monitoring, and quality assurance and improvement program.
As a public-facing and public-serving agency, internal and external stakeholders rely on the assurances provided by the internal audit activity to ensure that efficient, effective, and equitable use is being made of RTA resources and that RTA is operating in the public interest. Adherence to and implementation of the charter provides all stakeholders assurance that the RTA is operating transparently and ethically in carrying out its mission.
The Office of Internal Audit and Compliance (OIAC) is dedicated to assisting the New Orleans Regional Transit Authority (RTA) in meeting its mission. To this end, the assurances provided by the OIAC encompass the examination and evaluation of the adequacy and effectiveness of RTA’s governance, risk management, policies, procedures, and internal controls as well as the quality of performance in fulfilling assigned responsibilities to achieve RTA’s goals and objectives.
To assess and report on the quality of the internal audit activity, the OIAC will establish and maintain a quality assurance and improvement program that covers internal and external assessments of the internal audit activity. The program will assess the efficiency and effectiveness of the internal audit activity and identify opportunities for improvement.
FINANCIAL IMPACT:
While there is no direct financial impact in approving the 2025 Audit Plan, potential indirect financial and other risks may exist as a result of not approving the plan. These potential risks include but are not limited to the following: reputational risk resulting in loss of integrity and goodwill; noncompliance with regulatory agencies resulting in potential penalties and loss of funding; operational risks of inefficiency resulting in increased labor, maintenance, and other costs; potential for fraud, waste or abuse of RTA resources, and misappropriation of assets.
NEXT STEPS:
With Board approval, the Office of Internal Audit and Compliance will move forward with conducting internal audits in accordance with the 2025 Audit Plan.
ATTACHMENTS:
1. Board Resolution
2. 2025 Annual Report and Audit Plan
Prepared By: Malon Thompson
Title: Manager of Audit and Compliance
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
2/18/2025
Lona Edwards Hankins Date
Chief Executive Officer