HomeMy WebLinkAboutMINUTES - 12071999 - C155 TO: BOARDS'OF SUPERVISORS 5.......
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FROM: v •` Costa
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INTERNAL OPERATIONS COMMITTEEUounty
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DATE: r°:r`r,..__•.:.••'c
November 8, '1999
SUBJECT: %
REPORT ON FOLLOW-UP TO THE COUNTY'S EXTERNAL AUDIT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ESTABLISH the following policy and procedure for addressing the annual findings
and recommendations of the County's external auditors:
• The County Administrator should forward to the Board of Supervisors all audit
letters from the County's independent audit firm addressed to the Board with
the recommendation that the letters be referred to the Board's Finance
Committee.
• When the audit findings and recommendations are referred to the Finance
Committee they should be accompanied by a copy of the prior year's audit
findings and recommendations, along with a report from the County
Administrator that identifies what corrective action has been taken or is
planned to be taken on each audit recommendation.
When the audit report is scheduled for consideration by the Finance
Committee, it should be accompanied by a response from the County
Administrator that outlines a proposed corrective action plan that addresses
each recommendation made by the auditors for the current year.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINIST TOR RECOMMENDATION OF BOARD COMMITTEE
APPROVEOTHER
SIGNATURE(S): E e. ILK A
ACTION OF BOARD ON_ Darember 7, 1999 APPROVED AS R OMMENOED X
OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
_XX UNANIMOUS(ABSENT - - - _ ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED December 7 , 1999
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
Auditor-Controller
Tony Enea, Senior Deputy County Administrator
Julie Enea, Senior Deputy County Administ ,DEPUTY
■00-01
• When the Finance Committee reports the matter back to the Board of
Supervisors, its report should be accompanied by the current year's audit
report and the reports from the County Administrator on what corrective
actions are proposed to be taken to respond to each of the recommendations
in the audits.
BACKt ROUND:
On February 2, 1999, the Board of Supervisors referred to the Internal Operations
Committee the County's policy and practice for responding to the recommendations
made by the County's independent auditors, currently Macias and Gini.
On November 8, 1999, our Committee heard this item and received the attached
report from Scott Tandy, Chief Assistant County Administrator,
Our Committee believes that the Board should be aware of the actions being taken
to respond to each of the recommendations made by the County's independent audit
firm. We are, therefore, making the above recommendation so the Board's Finance
Committee will have a better opportunity to provide oversight and comment to the
actions that are taken by departments to respond to all audit recommendations.
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OFFICE OF THE COUNTY ADMINISTRATOR s1
CONTRA COSTA COUNTY
Administration Building
651 Fine Street, 11th Floor
Martinez, CA 94553
DATE: November 8, 1999
TO: INTERNAL OPERATIONS COMMITTEE
Supervisor Gayle B. Uilkema, Chair
Supervisor John Gioia
FROM: - Scott Tandy, Chief Assistant County Administrator
SUBJECT: FOLLOW-UP PRACTICES ON INDEPENDENT AUDITOR
RECOMMENDATIONS
Pursuant to the Government Code, an independent audit of the county's general purpose
financial statements is conducted each year. The audit is made to form an opinion on
the financial statements taken as a whole and is conducted in accordance with generally
accepted accounting standards.
In addition, the independent auditor is required to report on various matters of internal
control. If the auditor determines that there are significant deficiencies that could
adversely affect the county's ability to accurately report financial data,these deficiencies
are disclosed and recommendations made in the form of a memorandum of internal
control or management letter.
The Board of Supervisors has a longstanding practice of requiring department heads to
respond to any recommendations with any corrective actions as necessary.
For many years, the independent audit firm of KPMG Peat Marwick and now, the
independent firm of Macias and Gini have provided memorandums of internal control or
management letters that have identified weaknesses so that improved systems of internal
control can be put in place. The most recent example is the theft of funds issue in the
Department of Employment and Human Services earlier this year which was reviewed by
the Internal Operations Committee.
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d:tmdy-IO Item 11-8