COMMITTEE AGENDA MEMORANDUM
Board Audit Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive and Discuss 2025 Centralized and Decentralized Contracting Practices Audit Report with Management Response; Refer the Final 2025 Centralized and Decentralized Contracting Practices Audit Report to the Board.
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RECOMMENDATION: Recommendation
A. Receive and discuss the 2025 Centralized and Decentralized Contracting Practices Audit Report with Management Response, and
B. Refer the final 2025 Centralized and Decentralized Contracting Practices Audit Report to the Board.
Body
SUMMARY:
The Board Audit Committee (BAC) was established by the Santa Clara Valley Water District Board of Directors (Board) to identify potential areas for audit and audit priorities, and to review, update, plan, and coordinate execution of Board audits.
Per the BAC Charter, Article VI, Paragraph 5, Review of Final Audit Results/Notice to Board, the Committee shall review the observations and conclusions of all audits conducted pursuant to the Annual Audit Plan. Upon finalization of the audits and any related reports, the Committee shall provide the Board with the results and make any recommendations to the Board regarding improvement of program performance and operations, cost reductions, and best practices. . .”
At its meeting on November 20, 2024, the BAC approved a proposed 2025 annual audit plan containing four (4) audit topics, the Centralized and Decentralized Contracting Practices audit being one of them and recommended the audit plan to the full Board for approval. The Board approved the 2025 annual audit plan at its meeting on January 14, 2025.
The requested audit of Centralized and Decentralized Contracting Processes focused on evaluating the efficiency, effectiveness, and timeliness of Valley Water’s contracting and procurement practices, including assessing compliance with established policies and procedures, reviewing procurement methods for various types of goods and services, identifying opportunities for process improvements, and evaluating roles and responsibilities related to contracting activities.
On November 18, 2026, Sjoberg Evashenk (the auditor) submitted their audit report (Attachment 1) with the draft management responses (see Appendix A/Page 27 in the report) for BAC review and comment. The auditor will also provide a presentation regarding the audit (Attachment 2).
The BAC is requested to receive 2025 Centralized and Decentralized Contracting Practices Audit Report with Management Response and refer the final report to the full Board at a future date.
ENVIRONMENTAL JUSTICE IMPACT:
The proposed Recommendation(s) is not subject to environmental justice analysis. Actions taken by the Board Audit Committee are reviewed on a case-by-case basis.
ATTACHMENTS:
Attachment 1: 2025 Centralized and Decentralized Contracting Practices Audit Final Report with Management Responses
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068