Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  17-000477

 

MEETING DATE:

05/09/17

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Auditor-Controller   (Approved)

Department contact person(s):

Eric Woolery (714) 834-2457 

 

 

Toni Smart (714) 834-5442

 

 

Subject:  Auditor-Controller Quarterly Internal Audit Report January through March 2017

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Consent Calendar

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: N/A

County Audit in last 3 years: No

 

 

    Prior Board Action: N/A

 

RECOMMENDED ACTION(S):

 

Receive and File Auditor-Controller Quarterly Internal Audit Activity Status Report for the months of January through March 2017 as detailed in Attachment A.

 

 

 

 

SUMMARY:

 

The Quarterly Auditor-Controller Internal Audit Activity Status Report for January through March 2017, is provided to inform the Board of Supervisors of the on-going progress of internal audit coverage Countywide and to highlight the purpose and conclusion of the audits.

 

 

 

BACKGROUND INFORMATION:

 

The Auditor-Controller Internal Audit Division is pleased to present a quarterly summary of internal audit activity for the prior months' activities.  All applicable audit reports issued during January through March 2017 are provided as attachments to this Agenda Staff Report as follows: 

 

A.    Quarterly Internal Audit Activity Status Report for January through March 2017. Nine audit reports were issued and a summary of each audit report issued is provided.

 

B.    OCCR/OC Parks – Vintage Marina Partners, LP for the Period April 1, 2015, through March 31, 2016.  Auditor-Controller completed a Revenue Generating Operating Agreement audit of the agreement (Agreement) between the County of Orange and Vintage Marina Partners, LP (Vintage Marina) for the period April 1, 2015, through March 31, 2016.  We identified three Significant Control Weaknesses regarding the reporting of gross receipts, other financial requirements, and oversight and management of Vintage Marina.  We also identified 11 Control Findings concerning controls over gross receipts, records supporting operating expenses, and other provisions of the Agreement.

 

C.    Report on Review of the Schedule of Assets Held by the County Treasury as of September 30, 2016.  We reviewed the Schedule of Assets Held by the County Treasury as of September 30, 2016.  Based on our review, we are not aware of any material modifications that should be made to the financial schedule referred to above in order for it to be in accordance with the modified cash-basis of accounting.

 

D.    Compliance Monitoring of the Treasurer’s Investment Portfolio for the Quarter Ended December 31, 2016.  At the request of the Treasury Oversight Committee, we performed the Continuous Compliance Monitoring of the Treasurer’s Investment Portfolio for the quarter ended December 31, 2016, to determine whether the Office of the Treasurer-Tax Collector complied with specified provisions of the Investment Policy Statement (IPS).  No compliance deficiencies were identified.

 

E.    Audit of Unearned Revenue: Health Care Agency.  We completed an audit of internal controls over the recording of unearned revenue by the Health Care Agency for the year ended June 30, 2016.   There were no findings in this report.

 

F.    Audit of Unearned Revenue: Social Services Agency.  We completed an audit of internal controls over the recording of unearned revenue by the Social Services Agency for the year ended June 30, 2016.   There were no findings in this report.

 

G.    Audit of Unearned Revenue: OC Public Works.  We completed an audit of internal controls over the recording of unearned revenue by OC Public Works for the year ended June 30, 2016.   There were no findings in this report.

 

H.    First and Final Close-Out Follow-Up Countywide Audit of Fiduciary Funds: Clerk-Recorder.  We completed a First Follow-Up Countywide Audit of Fiduciary Funds: Clerk-Recorder.  Our audit was limited to reviewing actions taken as of October 31, 2016, to implement the four (4) recommendations from our original audit dated April 21, 2016.  Our first follow-up audit found that the Clerk-Recorder implemented three recommendations and is in the process of implementing the remaining recommendation from the original audit.

 

I.     First and Final Close-Out Follow-Up Countywide Audit of Fiduciary Funds: Health Care Agency/Public Guardian.  We completed a First and Final Close-Out Follow-Up Countywide Audit of Fiduciary Funds: Health Care Agency/Public Guardian.  Our audit was limited to reviewing actions taken as of February 28, 2017, to implement the two  recommendations from our original audit dated May 6, 2016. Our first follow-up audit found that the Health Care Agency/Public Guardian implemented the two recommendations from the original audit.

 

J.     First and Final Close-Out Follow-Up Revenue Generating Lease Audit: John Wayne Airport/The Asfour Family Corporation dba Subway. We completed a First and Final Close-Out Follow-Up Audit of Revenue Generating Lease Audit: John Wayne Airport – Asfour Family Corporation dba Subway.  Our audit was limited to reviewing actions taken as of November 10, 2016, to implement two recommendations from our original audit dated April 29, 2016.  Our first follow-up audit found that John Wayne Airport implemented the two recommendations from the original audit.

 

 

The Auditor-Controller Internal Audit Division reports quarterly, in an open public meeting to an advisory Audit Oversight Committee (AOC) established by the Board of Supervisors.  The 2017 AOC members are comprised of the Chairwoman and Vice Chair of the Board of Supervisors, the County Executive Officer and five at-large private sector members: Dr. David Carlson, Mark Wille, Drew Atwater, Peter Agarwal and Robert Brown.

 

 

 

FINANCIAL IMPACT:

 

N/A

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A - Report No. 1607-4 Auditor-Controller Quarterly Internal Audit Activity Status Report for January through March 2017
Attachment B - Audit No. 1531, Revenue Generating Operating Agreement Audit: OC Community Resources/OC Parks – Vintage Marina Partners, LP HA78H-24-003, Issued 03/02/17
Attachment C - Audit No. 1612, Report on Review of the Schedule of Assets Held by the County Treasury as of September 30, 2016, Issued 02/24/17
Attachment D - Audit No. 1616, Compliance Monitoring of the Treasurer’s Investment Portfolio for the Quarter Ended December 31, 2016, Issued 03/13/17
Attachment E - Audit No. 1619-A, Audit of Unearned Revenue: Health Care Agency, Issued 03/31/17
Attachment F - Audit No. 1619-C, Audit of Unearned Revenue: Social Services Agency, Issued 03/30/17
Attachment G - Audit No. 1619-D, Audit of Unearned Revenue: OC Public Works, Issued 03/30/17
Attachment H - Audit No. 1519-F1 (Reference 1634-F), First Follow-Up Countywide Audit of Fiduciary Funds: Clerk-Recorder, Issued 03/14/17
Attachment I - Audit No. 1519-F1 (Reference 1634-H), First Follow-Up Countywide Audit of Fiduciary Funds: Health Care Agency/Public Guardian, Issued 03/22/17
Attachment J - Audit No. 1580-F1 (Reference 1642-H), First and Final Close-Out Follow-Up Revenue Generating Lease Audit: John Wayne Airport – Asfour Family Corporation dba Subway, Issued 01/04/17