Agenda Item

AGENDA STAFF REPORT

 

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ASR Control 16-001021

 

MEETING DATE:

09/13/16

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 Monthly Internal Audit Report June and July 2016

 

††††† 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 Monthly Internal Audit Activity Status Report for the months of June and July 2016 as detailed in Attachment A.

 

 

 

SUMMARY:

 

The monthly Auditor-Controller Internal Audit Activity Status Report for June and July 2016 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 monthly summary of internal audit activity for the prior months' activities.All applicable audit reports issued during June and July 2016 are provided as attachments to this Agenda Staff Report as follows:

 

A.††† Monthly Internal Audit Activity Status Report for June and July 2016. Six audit reports were issued and a summary of each audit report issued is provided.

 

B.††† Cash Compliance Audit: OC Community Resources/OC Animal Care.We completed an audit of the internal controls over cash handling at the OC Animal Care facility for FY 2015-16.We identified one Control Finding to enhance internal controls over cash handling.We also performed a first follow-up audit of recommendations from the prior cash handling review from FY 2012-13 and found that OC Animal Care had successfully implemented the seven recommendations and two observations from the prior audit.This report represents the final close-out of the prior cash handling review.

 

C.††† First and Final Close-Out Follow-Up Revenue Generating Lease Audit: John Wayne Airport/Dollar Rent A Car.We completed a First Follow-Up Audit of Dollar Rent A Car to review actions taken as of March 16, 2016, to implement the two recommendations from our original audit.We found that the John Wayne Airport/Dollar Rent A Car implemented the two recommendations from the original audit.As such, this report represents the final close-out of the original audit.

 

D.††† Continuous Compliance Auditing of the Treasurerís Investment Portfolio for the Quarter Ended March 31, 2016.At the request of the Treasury Oversight Committee, we completed the continuous compliance auditing of the Treasurerís investment portfolio for the quarter ended March 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.††† Revenue Generating Lease Audit: OC Community Resources/OC Parks Salt Creek Beach Concession.We completed a revenue generating lease audit of the agreement between the County of Orange and John and Sherry Efstathiou of Salt Creek Beach Concession.We identified seven Control Findings to enhance compliance with the lease agreement and improve OC Community Resources oversight process.

 

F.††† Report on Review of the Schedule of Assets Held by the County Treasury as of December 31, 2015.We reviewed the Schedule of Assets Held by the County Treasury as of December 31, 2015.All information included in this financial schedule is the representation of the management of the Treasurerís Office.Total assets (cash and investments) reported as of December 31, 2015, totaled $9 billion. 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.

 

G.††† Internal Control Audit: District Attorney/Public Administrator Selected Processes and Controls.We completed an audit of internal controls over selected processes and controls in the District Attorney/Public Administrator (DA/PA) as of December 31, 2015.We identified one Critical Control Weakness, three Control Findings, and five Efficiency/Effectiveness Findings to enhance the reviewed processes and controls.

 

 

 

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 2016 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, Sarah "Sally" J. Anderson, Mark Wille, Gary Caporicci and Drew Atwater.

 

 

 

FINANCIAL IMPACT:

 

N/A

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A - Report No. 1607-1 Auditor-Controller Monthly Internal Audit Activity Status Report for June and July 2016.
Attachment B - Audit No. 1578, Cash Compliance Audit:OC Community Resources/OC Animal Care for fiscal year 2015-16, Issued 06/08/16.
Attachment C - Audit No. 1438-F1 (reference 1534), First and Final Close-Out Follow-Up Revenue Generating Lease Audit:John Wayne Airport/Dollar Rent A Car as of March 16, 2016, Issued 06/08/16.
Attachment D - Audit No. 1556, Continuous Compliance Auditing of the Treasurer's Investment Portfolio for the Quarter Ended March 31, 2016, Issued 06/13/16.
Attachment E - Audit No. 1558, OC Community Resources/OC Parks - Salt Creek Beach Concession for the period September 1, 2014, through August 31, 2015, Issued 06/28/16.
Attachment F - Audit No. 1549, Report on Review of the Schedule of Assets Held by the County Treasury as of September 30, 2015, Issued 07/19/16.
Attachment G - Audit No. 1523, Internal Control Audit:District Attorney/Public Administrator Selected Processes and Controls (DA/PA), Issued 07/20/16.