Title
a. Receive the County Administrative Office's report regarding the Internal Audit function within the County of Monterey and options to implement a committee for internal audits oversight (Board Referral No. 2018.04); and
b. Direct the County Administrative Office to submit policies to the Board.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive the County Administrative Office's report regarding the Internal Audit function within the County of Monterey and options to implement a committee for internal audits oversight (Board Referral No. 2018.04); and
b. Direct the County Administrative Office to submit policies to the Board.
SUMMARY:
On February 6, 2018, County Counsel and the County Administrative Office (CAO) received a referral (Board Referral No. 2018.04) from the Monterey County Board of Supervisors (Board) to clarify authority lying within the Auditor-Controller's Office (ACO) to conduct performance audits or reviews on County departments. Concern was raised when the ACO notified departments that they would be contracting with an accounting firm to review programs such as the Lakes and cannabis taxes, and that departments would have to pay for these costs. The Office of the County Counsel issued an opinion that the authority to initiate a performance audit lies with the Board and only the Board can delegate that authority. The Office of County Counsel and the CAO were unable to find any records where this authority has been delegated to the ACO. The CAO conducted an analysis of internal audit programs and processes within other California counties as a means of comparison and best practices.
DISCUSSION:
California Government Code section 1237 states that all state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall consider establishing an ongoing audit function. An internal audit program can provide assurance regarding an organization's risk managemen...
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