43PROPOSED WORK PLAN
TASK 1 Evaluate City of El Segundo's Business License Operation
• This task will be performed under the provisions of Statement on Standards for
Consulting Services No 1 (SSCS No. 1)
• We will review the City's business license system and business license fee structure and
compare them with those used by other California cities
• We will review the applicable sections of the City's municipal code pertaining to
business licenses and present written recommendations regarding its consistency,
equitableness, and ease of administration
• We will review the City's internal control procedures pertaining to business licenses by
conducting interviews with appropriate management and other personnel involved in
the business license operation and by analyzing business license forms, reports and
other documentation currently in use. We will present written recommendations
regarding internal control procedures that will improve enforcement efforts and the
detection of unreported business license fees. We will also present written
recommendations regarding code enforcement policies that will improve compliance
with the City's municipal code.
TASK 2 Develop an Internal Business License Audit Program
This task will be performed under the provisions of Statement on Standards for Consulting
Services No 1 (SSCS No 1)
' We will develop an internal audit program for use by the Finance Department staff based
upon our evaluation of the City's business license operation and the goals and objectives
of the Finance Department. The internal audit program will be designed to detect
businesses not in compliance with the City's municipal code and bring such businesses into
compliance. It will include a step -by -step approach to identifying potential noncompliance
based on information provided by businesses, potential sources of information to review
i for the detection of unlicensed businesses, the criteria for determining whether a site audit
is required; the possible sources of information to obtain from a business being audited,
and, the steps necessary to resolve any variance in the calculation of the business license
fee.
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