AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 21-000475
MEETING DATE:	06/22/21
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Internal Audit (Approved)
Department contact person(s):	Aggie Alonso (714) 834-5442
	Scott Suzuki (714) 834-5509

Subject: Internal Audit Department Status Report and Annual Risk Assessment & Audit Plan

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:

# 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: 3/23/2021 #17, 6/23/2020 #29

RECOMMENDED ACTION(S):

Receive and file Internal Audit Department's Executive Summary of Internal Audit Reports for the Quarter Ended March 31, 2021.

Approve Internal Audit Department's Annual Risk Assessment & Audit Plan for FY 2021-22.

SUMMARY:

The Executive Summary of Internal Audit Reports is provided to inform the Board of Supervisors of the ongoing progress of internal audit coverage and approval of the Annual Risk Assessment & Audit Plan for FY 2021-22 authorizes the department to proceed with specified audits.

BACKGROUND INFORMATION:

The Annual Risk Assessment & Audit Plan for FY 2021-22 and Executive Summary of Internal Audit Reports were approved by the Audit Oversight Committee (AOC) on May 13, 2021. The Annual Risk Assessment & Audit Plan for FY 2020-21 was approved by the Board of Supervisors (Board) on June 23, 2020.

Board Resolution 18-068 (Attachment A) established the Internal Audit Department (IAD) reporting directly to the Board, effective July 1, 2018.

IAD supports and assists the Board and County management in the realization of their business goals and objectives. IAD’s contribution to this effort is testing and reporting on the effectiveness of County internal control systems and efficiency of business processes. To assist IAD in performing its role as part of the County team, IAD has prepared the Annual Risk Assessment & Audit Plan for FY 2021-22 (Audit Plan) that provides a systematic approach for evaluating the effectiveness of internal control and efficiency of County business operations (Attachment C). The Audit Plan is a comprehensive plan that details audits to be completed in the upcoming fiscal year and incorporates the results of our Countywide risk assessment including a specialty Information Technology risk assessment.

IAD issues written reports following the conclusion of each internal audit engagement and the results are summarized quarterly for the Board and are presented in the Executive Summary of Internal Audit Reports (Attachment B). The report for this quarter covers nine audit reports issued from January 1, 2021, to March 31, 2021 (Attachments D through L).

The AOC serves as an advisory committee to the Board on issues related to the County’s internal and performance audit functions. The AOC is responsible for review and approval of the Audit Plan prepared by IAD.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Board of Supervisors' Resolution No. 18-068
Attachment B - Executive Summary of Internal Audit Reports for the Quarter Ended March 31, 2021
Attachment C - Internal Audit Department Annual Risk Assessment & Audit Plan for Fiscal Year 2021-22
Attachment D - Internal Control Audit: OC Information Technology Contract Administration over Science Applications International Corporation for Data Center Services; Audit No. 1624 dated February 22, 2021
Attachment E - Internal Control Audit: OC Public Works Toll Road & Transponder Usage for County Vehicles; Audit No. 2022 dated March 31, 2021
Attachment F - Internal Control Audit: Sheriff-Coroner Purchasing & Contracts; Audit No. 1912 dated February 1, 2021
Attachment G - Second Follow-Up Information Technology Audit: County Executive Office/OC Information Technology General Controls; Audit No. 1949-F (Reference 1644-F2) dated March 11, 2021
Attachment H - Second & Final Close-Out Follow-Up Internal Control Audit: Health Care Agency Payroll; Audit No. 2039-N (Reference 1812-F2) dated January 14, 2021
Attachment I - First & Final Close-Out Follow-Up Internal Control Audit: Health Care Agency Purchasing; Audit No. 1939-J (Reference 1819-F1) dated January 28, 2021
Attachment J - First & Final Close-Out Follow-Up Internal Control Audit: Health Care Agency Fee-Generated Revenue; Audit No. 2039-H (Reference 1915-F1) dated March 8, 2021
Attachment K - Second & Final Close-Out Follow-Up Internal Control Audit: OC Public Works Billing of Public Works Services to County Departments; Audit No. 2039-M (Reference 1734-F2) dated March 3, 2021
Attachment L - First Follow-Up Internal Control Audit: Probation Department Cal-Cards; Audit No. 1939-M (Reference 1822-F1) dated January 20, 2021