Agenda

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INTERNAL OPERATIONS COMMITTEE

Meeting Date:	03/11/2019
Subject: REPORT FROM THE AUDITOR-CONTROLLER’S OFFICE ON THE SCHEDULE OF FINANCIAL AUDITS FOR 2019
Submitted For:	Robert Campbell, Auditor-Controller
Department:	Auditor-Controller
Referral No.:	IOC 19/2
Referral Name:	Review of the Annual Audit Schedule
Presenter:	Joanne Bohren, Auditor-Controller Division Mgr	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 2018 and transmitting the proposed schedule of financial audits for 2019, which are already in progress.

To provide continuity from the prior year report, in 2018, the Auditor's Office found an overall lack of adherence to several of the County's administrative requirements for cash collection; discharge of delinquent accounts; inventories of materials, supplies and capital assets; and petty cash. The Auditor also found noncompliance with procurement card policies, contracting policies and procedures, and MAC fiscal procedures.

Supervisor Andersen commented last year that staff compliance with the procurement card policies might be improved if an FAQ (frequently asked questions) document was made available on the Intranet. Purchasing Manager David Gould had clarified that procurement card training is provided once to new card holders.

Auditor-Controller Division Manager Joanne Bohren will present the 2019 report.

Recommendation(s)/Next Step(s):

ACCEPT report on the Auditor-Controller's audit activities for 2018 and APPROVE the proposed schedule of financial audits for 2019.

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
2019 Internal Audit Report