File #: BC 19-022    Name: Internal Audit Update and FY2019-20 Audit Plan Proposal
Type: Budget Committee Status: Agenda Ready
File created: 3/14/2019 In control: Budget Committee
On agenda: 4/10/2019 Final action:
Title: a. Receive an update on the Auditor Controller's Fiscal Year 2018-19 Internal Audit Plan; and, b. Support approval of Fiscal Year 2019-20 Internal Audit Projects.
Attachments: 1. Budget Committee Report, 2. Attachment A - FY2018-19 Budget Summary, 3. Attachment B - FY2018-19 Internal Audit Plan Schedule, 4. Attachment C - FY2018-19 External Audit Plan Schedule, 5. Attachment D - FY2019-20 Internal Audit Proposals, 6. Interim Audit Report - Lakes Operations
Title
a. Receive an update on the Auditor Controller's Fiscal Year 2018-19 Internal Audit Plan; and,
b. Support approval of Fiscal Year 2019-20 Internal Audit Projects.

Report
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Receive an update on the Auditor Controller's Fiscal Year 2018-19 Internal Audit Plan; and,
b. Support approval of Fiscal Year 2019-20 Internal Audit Projects.

SUMMARY/DISCUSSION:
On September 25, 2018, the Board of Supervisors (Board), through Resolution No. 18-316, approved the Internal Audit Policy and revised Budget Committee Roles and Responsibilities recommended by the CAO's Office.

On December 12, 2018 the Board approved the Auditor-Controller Internal Audit Division's (IAD) Internal Audit Policies and Operations Manual and the Fiscal Year 2018-19 Internal Audit Plan.

Attachment A is the Budget Summary contained in the approved Fiscal Year 2018-19 Internal Audit Plan. Attachment B is a visual depiction of the scheduled audits and their timing. Both attachments have been updated to reflect budget vs. actual activity.

Originally, the plan contained a total of 13 projects covering a period of 7 months. As of March 13, The IAD has started 5 projects (4 audits and 1 Risk Assessment). Although still open for completion, projects range from 70% - 95% complete. We anticipate issuing two audit reports in March and the remaining two in April. Fieldwork for the Risk Assessments has been completed, however, refinement of the Risk Assessment is necessary as discussed later in this report.

The primary reason for the gaps in the Internal Audit Plan is the Chief Deputy's lack of familiarity with County operations. The work load distribution and assigned hours were estimated based on the Chief Deputy's prior experience working for private organizations, not with any direct experience auditing County operations. The key constraints not considered in the original plan relate to the amount of administrative work rel...

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