BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Receive the 2012 Safe, Clean Water and Natural Flood Protection (2012 Program) Performance Close-out Audit Report with Management’s Response.
End
RECOMMENDATION:
Recommendation
Receive the 2012 Program Performance Close-out Audit Report with Management’s Response.
Body
SUMMARY:
On April 27, 2023, Santa Clara Valley Water District (Valley Water) engaged Moss Adams LLP (Auditor) to conduct the performance close-out audit of the voter-approved 2012 Program (Measure B), which ended in June 2021. The 2012 Program, effective in July 2013, required the Board to conduct at least two professional audits of the 15-year Program to provide accountability and transparency. The first professional audit was conducted in 2017. Subsequently, in November 2020, voters approved the renewed Safe, Clean Water and Natural Flood Protection Program (renewed Program), which replaced the 2012 Program in July 2021. On March 14, 2023, the Board directed staff to conduct a close-out audit of the 2012 Program, following a recommendation by the Independent Monitoring Committee for the renewed Program.
The purpose of the audit was to validate compliance in the collection and expenditure of Measure B funds, verify compliance with Measure B tax provisions, evaluate Valley Water’s progress toward meeting the 2012 Program’s priorities and the stated key performance indicators (KPIs), and identify and document opportunities for operational efficiency for future iterations of the program.
On February 21, 2024, staff presented the Final Draft Report and the draft Management Responses to the Chief Executive Officer (CEO). The CEO received the information and directed staff to proceed with the process.
At the March 20th, 2024, Board Audit Committee (BAC) meeting, staff presented the draft report with management’s responses and asked the committee to provide any appropriate feedback. The committee commented on various aspects analyzed by the auditor, acknowledging that:
• KPIs are a good measure of progress and should align with the public’s desired outcome to be meaningful; and
• Lessons learned from prior projects should be implemented on future projects as appropriate; and
• Conflict of Interest policy that applies to monitoring committees is considered an industry best practice.
The Board is asked to receive the close-out audit report with management’s response (Attachment 1). Attachment 2 is a brief presentation on the 2012 Program audit prepared by the auditor.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
The receipt of a performance close-out audit of the former 2012 Program is not subject to environmental justice analysis.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Close-out Audit Report
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068