Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000925

 

MEETING DATE:

09/24/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Internal Audit   (Approved)

Department contact person(s):

Scott Suzuki (714) 834-5509 

 

 

Michael Dean (714) 834-4101

 

 

Subject:  Internal Audit Department Status Report and Annual Report on Independence

 

      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):

 

 

1.

Receive and file Internal Audit Department's Executive Summary of Internal Audit Reports for the Quarter Ended June 30, 2019.

 

2.

Receive and file Internal Audit Department's Annual Report on Independence.

 

 

 

 

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 the annual report on independence affirms the Internal Audit Department’s independence from interference or influence.

 

 

 

BACKGROUND INFORMATION:

 

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.

 

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 A. The report for this quarter covers 10 audit reports issued from April 1, 2019, to June 30, 2019, see Attachments D through M.

 

The International Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors requires that the chief audit executive confirm to the Board, at least annually, the organizational independence of the internal audit activity.

 

 

FINANCIAL IMPACT:

 

N/A

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Internal Audit Department Annual Report on Independence
Attachment B - Executive Summary of Final Internal Audit Reports for the Quarter Ended June 30, 2019
Attachment C - Board of Supervisors Resolution No. 18-068
Attachment D - Internal Control Audit: Health Care Agency Payroll Process; Audit No. 1812 dated June 18, 2019
Attachment E - Internal Control Audit: OC Community Resources Payroll Process; Audit No. 1813 dated June 20, 2019
Attachment F - Internal Control Audit: Sheriff-Coroner Billing of Law Enforcement Services for Harbor Patrol and Airport Police Services; Audit No. 1632 dated June 18, 2019
Attachment G - Internal Control Audit: Social Services Agency Payroll Process; Audit No. 1814 dated June 18, 2019
Attachment H - First & Final Close-Out Follow-Up Internal Control Audit Countywide Audit of County Business Travel and Meeting Policy – Assessor; Audit No. 1839-C (Reference 1626-C-F1) dated June 28, 2019
Attachment I - Second & Final Close-Out Follow-Up Internal Control Audit: Auditor-Controller Overtime/Straight Overtime Calculations; Audit No. 1839-Q (Reference 1629-F2 & 1630-F2) dated June 18, 2019
Attachment J - First Follow-Up Information Technology Audit: County Executive Office/OC Information Technology General Controls; Audit No. 1748-A (Reference 1644-F1) dated June 26, 2019
Attachment K - Second & Final Close-Out Follow-Up Internal Control Audit: OC Dana Point Harbor Special Revenue Fund 108 Selected Processes & Controls; Audit No. 1839-J (Reference 1423-F2) dated June 11, 2019
Attachment L - Second & Final Close-Out Follow-Up Countywide Audit of Fiduciary Funds – Sheriff-Coroner; Audit No. 1839-I (Reference 1519-F2) dated June 27, 2019
Attachment M - Second & Final Close-Out Follow-Up Internal Control Audit: Social Services Agency Revolving Funds; Audit No. 1839-N (Reference 1633-F2) dated May 23, 2019