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Home My WebLink AboutMINUTES - 02112014 - C.61 (2)RECOMMENDATION(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 Schedule of Internal Audit ProjectsCalendar Year 2014HistoricalPrefd.ScheduledAudit DepartmentEstimatedLast DoneAuditForHoursProject DescriptionHoursThroughCycle (yrs)20142014Board of Supervisors1102District 2 General Department Audit (Including MACs)601/074X10Risk Management0043General Department Audit2505/052X300Auditor-Controller0105Revolving/Cash Diff. Fund & Shortage Report (fiscal year)606/131 (Law)X600116Medical & Dental Premium Payments2003/052X2400037Misc A-C duties (ie Petty Cash ICQ;Relief of Shortage;Increase/New Petty Cash; Recons)601X60Treasurer-Tax Collector0151Treasury Cash & Investments - 1st qtr1002/131/4 (Law)X1000151Treasury Cash & Investments - 2nd qtr 1005/131/4 (Law)X1000151Treasury Cash & Investments - July 11007/1/131/4 (Law)X1000151Treasury Cash & Investments - 3rd qtr (Auditor recommendation)1009/121/4 (Law)X1000151Treasury Cash & Investments - 4th qtr10012/121/4 (Law)X1000153Tax Collector's Special Trust (8314)508/044X600154Supplemental Tax Collection15012/082X1800155Duplicate payment trust (8315)654/044X750172Treasury Oversight Committee (calendar year)12012/121 (Law)X175Purchasing1491Purchasing175NEW4X1751493Procurement Card Program - 3rd qtr309/131/4 (CAO)X401493Procurement Card Program - 4th qtr3012/121/4 (CAO)X401493Procurement Card Program - 1st qtr303/131/4 (CAO)X401493Procurement Card Program - 2nd qtr306/131/4 (CAO)X40Department of Information Technology0147General Department Audit1009/073X100Sheriff-Coroner3005Inmates'cash40012/052X500Probation3081General Departmental Audit20012/112(Law)X220Health Services4501Public Health2502/082X2755408CCHP Vendor Payments1507/043X160Employment & Human ServicesTrust Funds100SpecialX100Page 1 of 2 Schedule of Internal Audit ProjectsCalendar Year 2014HistoricalPrefd.ScheduledAudit DepartmentEstimatedLast DoneAuditForHoursProject DescriptionHoursThroughCycle (yrs)20142014Public Works0791Craft inventories and Custodial Supplies Inventory (combined)1006/093X1501481Print and Mail (Central Services) Inventory1206/093X120Contra Costa Fire Protection District9502General Department Audit3001/062X310Page 2 of 2 Schedule of Internal Audits CompletedCalendar Year 2013Prefd.ScheduledAudit TotalDepartmentLast DoneAuditForHoursProjectProject DescriptionThroughCycle (yrs)20132013HoursAuditor-Controller0105Revolving/Cash Diff. Fund & Shortage Report (fiscal year)6/131 (Law)X60400037Misc A-C duties (ie Petty Cash ICQ;Relief of Shortage;Increase/New Petty Cash; Recons)1X60-Treasurer-Tax Collector0151Treasury Cash & Investments - 1st qtr2/131/4 (Law)X8576.50151Treasury Cash & Investments - 2nd qtr 5/131/4 (Law)X8576.50151Treasury Cash & Investments - July 17/1/131/4 (Law)X85620151Treasury Cash & Investments - 3rd qtr (Auditor recommendation)9/121/4 (Law)X85710151Treasury Cash & Investments - 4th qtr12/121/4 (Law)X8570.50152State of California trust (8011)4/134X80105.50172Treasury Oversight Committee (calendar year)12/121 (Law)X160212Purchasing1493Procurement Card Program - 3rd qtr (2012)9/121/4 (CAO)X40641493Procurement Card Program - 4th qtr12/121/4 (CAO)X40641493Procurement Card Program - 1st qtr3/131/4 (CAO)X40641493Procurement Card Program - 2nd qtr6/131/4 (CAO)X40641493Procurement Card Program - 3rd qtr (2013)9/131/4 (CAO)X4064Clerk-RecorderGC27361(d)(4) project re: SSN truncation - Required to be performed by 12/31/201320134X12094Sheriff-Coroner2553Seized & Forfeited Property12/125X150275Agriculture3351General Departmental Audit3/134X150135Health Services5403Materials Management3/13X200146.5County Libraries6201General Departmental Audit12/124X300230.5Public Works1492Capital Leases6/133X2302030632Vehicle Inventory6/133X175164Contra Costa Fire Protection District9501Other Supplies Inventory6/13X80119Page 1 of 2 Schedule of Internal Audits CompletedCalendar Year 2013Prefd.ScheduledAudit TotalDepartmentLast DoneAuditForHoursProjectProject DescriptionThroughCycle (yrs)20132013HoursAdditional Projects as discussed with Elizabeth0014Examination of Mitigation Funds, MACs/TACs, and Other Funds with Board DiscretionX360770Mitigation Funds (also brought up by Supervisor Gioia @ Finance Committee Mtg 2/7/11) Crockett Co-Generation3/13 Rodeo Unocal3/13 Livable Communities Trust12/12 County Regional Enhancement Contribution12/12 Transient Occupancy Tax/Contra Costa Futures12/12 Navy Transportation 2/13 Tosco/Solano Transportation2/13MACs/TACs BOS District #3: Byron MAC3/13 Diablo MAC3/13 Knightsen TAC3/13 Bethel Island MAC 3/13 BOS District #5: Bay Point MAC12/12 Pacheco MAC12/12 Rodeo MAC12/12General Purpose with Board Discretion Child Care Affordability Fund12/12 Dougherty Valley Transit Fees12/12 Industrial Job Training & Education Fee12/12Page 2 of 2 Schedule of Internal Audits in Progress at the End of Calendar Year 2013To be Completed in Calendar Year 2014Prefd.ScheduledInDepartmentEstimatedLast DoneAuditForProgressProject DescriptionHours Through Cycle (yrs) 2013 2014Board of Supervisors1102District 2 General Department Audit (Including MACs)601/074XXTreasurer-Tax Collector0151Treasury Cash & Investments - 3rd qtr (Auditor recommendation)1009/121/4 (Law)XXPAGE 1 OF 1 Schedule of Internal Audit Projects PostponedCalendar Year 2013Prefd.ScheduledScheduledDepartmentEstimatedLast DoneAuditForforProject Description Hours Through Cycle (yrs) 2013 2014Sheriff-Coroner3005 Inmates' cash400 12/05 2 X X The Office of the Sheriff-Coroner pushed back the start date for the audit. Ultimately, the assigned internal auditor was reassigned pending the Office of the Sheriff-Coroner agreeing to a date for the entrance meeting. The audit is included in the 2014 audit plan and got underway January 22, 2014.PAGE 1 OF 1