Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000588

 

MEETING DATE:

06/25/19

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

Discussion

 

 

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: 09/25/2018 #38

 

RECOMMENDED ACTION(S):

 

 

1.

Receive and file Internal Audit Department's Executive Summary of Internal Audit Reports for the Quarter Ended March 31, 2019.

 

2.

Approve Internal Audit Department's Annual Risk Assessment & Audit Plan for FY 2019-20.

 

 

 

 

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 2019-20 authorizes the department to proceed with specified audits.

 

 

 

BACKGROUND INFORMATION:

 

The Annual Risk Assessment & Audit Plan for FY 2019-20 and Executive Summary of Internal Audit Reports were approved by the Audit Oversight Committee on May 9, 2019. The Annual Risk Assessment & Audit Plan for FY 2018-19 was approved by the Board of Supervisors (Board) on September 25, 2018.

 

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

 

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 2019-20 (Audit Plan) that provides a systematic approach for evaluating the effectiveness of internal control and efficiency of County business operations, see Attachment A. 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 IT 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, see Attachment B. The report for this quarter covers nine audit reports issued from January 1, 2019, to March 31, 2019, see Attachments D through L.

 

The Audit Oversight Committee (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 - Internal Audit Department Annual Risk Assessment & Audit Plan for Fiscal Year 2019-20
Attachment B - Executive Summary of Final Internal Audit Reports for the Quarter Ended March 31, 2019
Attachment C - Board of Supervisors Resolution No. 18-068
Attachment D - Information Technology Audit: Auditor-Controller Information Technology General Controls; Audit No. 1741 dated March 6, 2019
Attachment E - Information Technology Audit: Clerk-Recorder County Agency Vital Records Index Access System; Audit No. 1840 dated March 22, 2019
Attachment F - Internal Control Audit: CEO/Real Estate – Revenue Generating Lease Administration Process; Audit No. 1730 dated March 5, 2019
Attachment G - First Follow-Up Internal Control Audit Countywide Audit of County Business Travel and Meeting Policy – Auditor-Controller; Audit No. 1839-D (Reference 1626-D-F1) dated March 26, 2019
Attachment H - First Follow-Up Internal Control Audit: Countywide Audit of County Business Travel and Meeting Policy – Clerk of the Board of Supervisors; Audit No. 1839-E (Reference 1626-E-F1) dated February 22, 2019
Attachment I - First & Final Close-Out Follow-Up Internal Control Audit: County Executive Office/County Procurement Office Procurement Processes; Audit No. 1735-E (Reference 1521-F1) dated March 5, 2019
Attachment J - Second & Final Close-Out Follow-Up Countywide Audit of Fiduciary Funds: County Executive Office; Audit No. 1839-L (Reference 1519-F2) dated March 19, 2019
Attachment K - First Follow-Up Internal Control Audit: Sheriff-Coroner Special Revenue Funds; Audit No. 1735-C (Reference 1520-F1) dated January 22, 2019
Attachment L - First & Final Close-Out Follow-Up Internal Control Audit: Countywide Audit of County Business Travel & Meeting Policy – Sheriff-Coroner; Audit No. 1839-F (Reference 1626-H-F1) dated February 11, 2019