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Home My WebLink AboutMINUTES - 05222007 - C.82 I TO: BOARD OF SUPERVISORS Contra Costa FRO-M: INTERNAL OPERATIONS COl�2viITTEE ', ��;� _ � � Tom-- �� DATE: APRIL 16. _007 0:-_ '— M. rA a- County I SUBJECT: 2007 FINANWI.AL AUDIT PLAT! i I SPECIFIC REQUESTS)OR RECONIMENTDATIONIS)&BACKGROL-ND L\TD TUSTIFICATIOti 1 I RECOMMENDATIONS: I i 1. ACCEPT report from the Auditor-Controller on the financial audit activities in 2006 and the proposed schedule of financial audits for 2007. I 2. ACKNOWLEDGE that in addition to an ambitious schedule of internal audits.the internal audit staff also spends approximately 25%of its time helping to prepare the County's annual Comprehensive Financial Report(CAFR). I I 3. RECOGNIZE that the Audit Division met a significant portion of its 2006 audit projects despite three staff vacancies resulting from retirements and promotions. i 4. COMMEND the Auditor-Controller's Office-Internal Audit Division on its success in maintaining a regular and aggressive audit cycle and adding information technology audits. providing a greater level of confidence in the County's internal financial transactions and i reporting procedures and systems. i I I CONT13- ED ON ATTACHMENT: YES— SIGNATURE: COYikIENDATIpS OF COUNTY ADktINISTRATOR _&o6ECOW%IENDA O '-OF BOARD CW hMI TEE PROVE _OTHER SIGNATLRE(S): (A p Gt+. / 0 `(� .y I SUSAN A.BONILLA,CHAIR AYLE IL IvLA � ACTION OF BOARD ON APPROVE AS REC - XIENDED A OTHER I I I I I VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE D CORRECT COPY OF �COTAKE\\ N I UN.MIOUS(ABSENT i AND ENTERED ON THE MINUTES OF THE I BOARD OF SUPERVISORS ON THE DATE I AYES: NOES: SHOWN- I ABSEtiT: ABSTAL\: I I ATTESTED: kSAY 22,2007 i CONTACT: JULIE ENEA(925)335-107' JOHN CULLEN.CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADML\ISTRATOR j CC: L\TERNAL OPERATIONS COMNUTTEE STAFF AUDITOR-CONITROLLER I � I ` DEPUTY i i i I 2007 Financial Audit Schedule April 16,2007 Internal Operations Committee Page 2 i I I I BACKGROUND: 1 I I On June 27, 2000,the Board of Supervisors reviewed the County's audit program and directed that each I December,the County Administrator and Auditor-Controller report to the Internal Operations I Committee on the proposed schedule of internal financial and management audits for the following I year, including those studies requested by the Board of Supervisors. i i Attached is the 2006 status report and the 2007 internal audit plan proposed by Auditor-Controller. Our Committee is very appreciative of the efforts of the Internal Audit Division in completing much of the I 2006 audit plan with severely reduced staffing. The Auditor's Office continues recruitment efforts to fill current staff vacancies. I I For 2007,the Auditor has proposed several new audits including the payroll,timekeeping, and I inventory control functions. The Auditor sets priorities for the audit program by consulting State j statutes and County policies, and by conducting risk assessments that consider the amounts and i frequency of cash handling. In recognition that many of department audit findings can be remedied through training,the Auditor's Office plans to develop training programs to address common fiscal procedures and control issues. I i Our committee recommends acceptance of the Auditor's report for 2006 and approval of the audit plan for 2007. i i i i I I I I I I I I I I i I I i i i i i Contra Costa County I Office of SEa Stephen J.Ybarra I y — _ _ I COUNTY AUDITOR-CONTROLLER A" Elizabeth A.Verigin _<. Assistant A.,dc-Cont%X=_r I .- 625 Court Street I Martinez; California 94553-1282 Telephone (925) 646-2181 'March :_. 2007 Fax (925) 646-2649 I I I TO: Internal Operations Committee i I FROM: Stephen J. Y-barra, Auditor-Controller Bv: Tim Ernst, CPA, Chief Auditory I SUBJECT: Annual Report on the Financial Audits Program I I I I I The Board of Supervisor's directive of June 27, 2000,requires the Auditor-Controller to report to the Internal Operations Committee on the proposed schedule of financial audits for the following year. The attachment, "2007 Schedule of Audits',provides the audit schedule for 2007, and summarizes the status of the audit projects that were scheduled for completion in 2006. I In 2006, the Internal audit division met a significant portion of its audit projects: however. personnel changes impacted the progress toward reaching its established goals. In March 2006, the Chief Auditor retired. The replacement Chief Auditor, a former auditor III in the organization,was appointed in April of 2006. Also, in March 2006, an auditor III retired and the following month the remaining I Auditor III received a promotion to Supervising Accountant. This left a remaining Internal audit staff as of April 2006, of one Auditor II and one Information Svstems Auditor. Four new Auditor I's were I hired between June and August 2006. I Dunne 2005. the Chief auditor and the Assistant auditor-Con-,Toller performed a thorough review of existing recurring audit projects and examined potential new projects. Because of this process, a I substantial number of nes;-projects were included in the 2006 audit schedule. Some of the new I projects included departmental audits that historically-have not been conducted based on the prior risk assessment profile. Additionally, several information system audits are included in the audit schedule due to the reemployment of the Information Systems auditor. I The 2006 schedule included new audit projects, above the existing normal cycle audits, equal to the I equivalent of one additional full time position. This was a eery aggressive schedule. Although we knew hiring additional staff was unlikely due to the County's fiscal constraints last rear, we planned on I achieving the additional goals through the efficiencies of the experienced audit staff. i i I i I I i l I Internal Operations Committee Annual Report on the Financial Audits Program March 5. 2007 The Internal Audit Division also is responsible for preparing the County's Comprehensive-Annual � Financial Report. The Division additionally provides ongoing assistance to other County departments and the County's external auditors on financial and audit matters. In addition to the internal audits conducted by the Office of the Auditor-Controller.the County's financial operations are subject to audits by independent external auditors. The firm of Caporicci & Larson is responsible for performing an annual audit of the County's general-purpose financial statements. the County's Redevelopment Agency, the Public Financing Authority, and the Public � Facilities Corporation. Caporicci &Larson also perform the annual"Single Audif' of the County's federal financial-assistance programs. Other independent auditors perform annual audits of the Contra Costa County Employees' Retirement Association. the County Housing authority. state grant programs, and the FIRST 5 Contra Costa Children and Families' Commission. Attachment I i I i � x I c o o I CNN O_ "J_ •N v c c � - -"� p I �- m I � a I l Q I r, 0 N .. r. 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