COMMITTEE AGENDA MEMORANDUM
Board Audit Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Discuss 2026 Annual Audit Plan (Risk Assessment, Asset Management, Pacheco Reservoir Project, and Investigations Process), Receive Status of Open Board-Directed Audit Engagements, and Provide Feedback as Needed.
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RECOMMENDATION: Recommendation
A. Discuss 2026 annual audit plan (Risk Assessment, Asset Management, Pacheco Reservoir Project, and Investigations Process),
B. Receive status of open Board-directed audit engagements, and
C. Provide feedback as needed.
Body
SUMMARY:
The Board Audit Committee (BAC) has directed the initiation of eight audit engagements that remain open as of July 2026.
• The Board Policy Compliance Audit is in the reporting phase, and the draft report has been updated based on management’s initial review, and an updated draft has been submitted to management in preparation for exit conferences.
• The Water Usage and Demand Forecasting audit has concluded the fieldwork and the draft report stage. The final report with management’s responses will be presented to the full Board on 9/8/26.
• The Contracting Practices audit is in the reporting phase; the draft report has been submitted to management in preparation for an exit conference.
• The Capital Project Delivery audit commenced later than anticipated and has experienced delays in obtaining the final information necessary to complete audit fieldwork. Because of this, the project remains in the fieldwork stage, with completion projected for late Q3 2026.
• The Asset Management audit commenced in February 2026, and initial interviews have taken place. The draft report is expected to be submitted to management for initial review in Q3 of Calendar Year 2026.
• The Investigations Process audit commenced in April 2026 with an initial planning and a second scoping phase, and the draft report is expected to be submitted to management for initial review in Q1 of Calendar Year 2027. The initial planning phase is almost complete, and staff anticipate moving into Phase 2 in early Q3 of Calendar Year 2026.
• The Pacheco Reservoir Project audit is anticipated to commence in Q3 of Calendar Year 2026 with completion in Q1 2027.
• The Districtwide Risk Assessment is anticipated to commence in Q3 of Calendar Year 2026 with completion in Q4 of Calendar Year 2026.
The purpose of this agenda item is to discuss the 2026 Annual Audit Plan, provide status of other open audit engagements, and receive any feedback the Board deems appropriate.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item. The Annual Audit Workplan serves as a tool for communicating audit priorities as determined by the BAC and the Board of Directors.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068