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INTERNAL OPERATIONS COMMITTEE

Meeting Date:	03/12/2018
Subject: REPORT FROM THE AUDITOR-CONTROLLER’S OFFICE ON THE SCHEDULE OF FINANCIAL AUDITS FOR 2017
Submitted For:	Robert Campbell, Auditor-Controller
Department:	Auditor-Controller
Referral No.:	IOC 18/2
Referral Name:	Review of the Annual Audit Schedule
Presenter:	Joanne Bohren, Chief Auditor	Contact:	Joanne Bohren 925-335-8610

Information

Referral History:

The Internal Operations Committee was asked by the Board in 2000 to review the process for establishing the annual schedule of audits, and to establish a mechanism for the Board to have input in the development of the annual audit schedule and request studies of departments, programs or procedures. The IOC recommended a process that was adopted by the Board on June 27, 2000, which called for the IOC to review the schedule of audits proposed by the Auditor-Controller and the County Administrator each December. However, due to the preeminent need during December for the Auditor to complete the Comprehensive Annual Financial Report, the IOC, some years ago, rescheduled consideration of the Auditor’s report to February of each year.

Referral Update:

Attached is a report from the Auditor-Controller reviewing the department’s audit activities for 2017 and transmitting the proposed schedule of financial audits for 2018, which are already in progress.

To provide continuity from the prior year report, in 2017, Chief Auditor Joanne Bohren had indicated last year that 37% of the findings were repeat findings from the previous year and concerned violations of Municipal Advisory Council fiscal policies, procurement card policies, and cash handling procedures. Asst. Auditor-Controller Elizabeth Verigin had advised that the Auditor's Office would reinstate periodic fiscal management training for the Municipal Advisory Councils, and strongly recommended a recommitment by Public Works-Purchasing to revive Procurement Card Training. Purchasing Services Manager David Gould advised that he had personally conducted one-on-one procurement card training during the previous six months and was researching electronic tools to help monitor card use and identify misuse. The Auditor's Office and Clerk of the Board's Office, in September 2017, jointly conducted a fiscal training session for MAC staff and membership.

Assistant Auditor-Controller Haj Nahal and Chief of Internal Audits Joanne Bohren will present the 2018 report.

Recommendation(s)/Next Step(s):

ACCEPT report on the Auditor-Controller's audit activities for 2017 and APPROVE the proposed schedule of financial audits for 2018.

Fiscal Impact (if any):

There is no fiscal impact related to providing input into the annual audit schedule. The financial auditing process may result in positive and negative fiscal impacts, depending on the audit findings.

Attachments
2018 Internat Audit Report