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HomeMy WebLinkAboutMINUTES - 02112014 - C.61RECOMMENDATION(S): 1. ACCEPT report on the Auditor-Controller's audit activities for 2013 and APPROVE the proposed schedule of financial audits for 2014 with the following modification: REQUEST the Auditor-Controller to additionally review prior-year contracts of the Health Services-Mental Health Division to ensure that payments to contractors were made in strict accordance with the contract payment provisions. 2. DIRECT the County Administrator to verify prior to approval that contract payment provisions for mental health services provide for payment that is based on costs of services provided during the payment period rather than a fixed amount per period. FISCAL IMPACT: 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. BACKGROUND: 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 APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/11/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Joanne Bohren 925-646-2233 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: February 11, 2014 , County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: Asst. Auditor-Controller, Audits Chief, Sr. Deputy CAO - H&HS, IOC Staff C. 61 To:Board of Supervisors From:INTERNAL OPERATIONS COMMITTEE Date:February 11, 2014 Contra Costa County Subject:PROPOSED 2014 FINANCIAL AUDIT SCHEDULE BACKGROUND: (CONT'D) 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. Attached is a report from the Auditor-Controller reviewing the department’s audit activities for 2013 and transmitting the proposed schedule of financial audits for 2014, which are already in progress. At the February 3 IOC meeting, the Auditor reported that 40 projects originally scheduled for 2013 are now completed and one project (inmate cash) was rescheduled to 2014. The Auditor also reported that Macias Gini & O'Connell, LLP, was recently retained to conduct the Countywide Single Audit this year. The Committee approved the proposed financial audit schedule for 2014 and requested the Auditor-Controller to additionally review prior-year contracts of the Health Services-Mental Health Division to ensure that payments to contractors were made in strict accordance with the contract payment provisions. We also request the County Administrator to verify prior to approval that contract payment provisions for mental health services provide for payment that is based on costs of services provided during the payment period rather than a fixed amount per period. A fixed amount per payment period does not provide a clear indication of actual costs and adequacy of the contract budget. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Auditor-Controller 2014 Schedule of Financial Audits