BOARD AGENDA MEMORANDUM
SUBJECT:Title
Consider the April 20, 2022, Recommendation from the Board Audit Committee (BAC) Meeting to Approve Initiation of the Capital Improvement Program (CIP) Process Audit; and Sjoberg Evashenk Consulting, Inc. as the Auditor to Conduct the CIP Process Audit.
End
RECOMMENDATION:Recommendation
Consider recommendations resulting from the April 20, 2022 Board Audit Committee Meeting to:
A. Approve initiation of the Capital Improvement Program (CIP) Process Audit; and
B. Approve Sjoberg Evashenk Consulting, Inc. as the auditor to conduct the CIP Process Audit.
Body
SUMMARY:
On January 11, 2022, the proposed 2022-2024 Annual Audit Work Plan (Attachment 1) was approved by the full Board. Shortly thereafter, at its January 19th meeting, the Board Audit Committee (BAC) identified the top 3 areas of interest to be audited in 2022: 1) ID #1, CIP Process; 2) ID #3, Emergency Response; and 3) ID #6, Data Management.
At the April 20, 2022, BAC meeting, the Chief Audit Executive (CAE) reviewed the audit scoping document for the CIP Process Audit (Attachment 2), which is the first audit proposed to be conducted in 2022. The proposed schedule to conduct the top 3 audit priorities was also provided.
The purpose of this agenda item is to approve the recommendation to initiate the CIP Process Audit as the first audit in 2022, and authorize Sjoberg Evashenk Consulting, Inc. to conduct the CIP Process Audit.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item. Environmental Justice impacts will be addressed as a part of each audit as they are implemented.
FINANCIAL IMPACT:
The Agreement with Sjoberg Evashenk Consulting, Inc. for Board Audit Consultant Services has a not-to-exceed amount of $800,000. The duration of this agreement spans multiple budget cycles. Funding for this item is partially included in Fiscal Year 2021-22, and the remainder will be requested by staff in future budget cycles for Fiscal Years 2022-23, 2023-24, and 2024-25 under project 60131014 (Continual Improvement).
The Capital Improvement Program Process Audit has an estimated cost of $117,325. There are adequate funds in the Office of Chief Financial Officer's Board-adopted FY 2021-2022 budget, Project 60131014 to conduct this audit.
CEQA:
The recommended action does not constitute a project under the California Environmental Quality Act (CEQA) because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: 2022-2024 Annual Audit Work Plan
Attachment 2: CIP Performance Audit Scope Document
UNCLASSIFIED MANAGER:Manager
Darin Taylor, 408-630-3068