COMMITTEE AGENDA MEMORANDUM
Board Audit Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Discuss the Results of the Board Audit Committee’s (BAC) Annual Self-Evaluation for Calendar Year (CY) 2025.
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RECOMMENDATION: Recommendation
Discuss the results of the BAC’s Annual Self-Evaluation for CY 2025.
Body
SUMMARY:
The Board Audit Committee (BAC) was established to assist the Board of Directors (Board), consistent with direction from the full Board, to identify potential audit priorities, and to review, update, plan, and coordinate execution of Board-directed audits.
According to Article 9, paragraph 4 of the BAC Audit Charter, the BAC shall conduct a self-evaluation of its performance annually. The Committee shall conduct the evaluation of its performance to determine whether it is functioning effectively and to discuss with the Chief Audit Executive (CAE) any observations related to the effectiveness of the Committee. The BAC shall prepare and submit a formal report based upon each such self-evaluation to the full Board.
At its February 18, 2026, meeting the BAC discussed potential approaches to the self-evaluation process, including the use of questionnaires and interviews, and requested the CAE to schedule interviews with each member of the BAC to obtain insight regarding the Committee’s performance as well as opportunities for improvement.
Interviews with BAC members occurred between March 3 and March 19, 2026. Consistent with prior years, members of the BAC generally agreed that the overall governance and activities of the committee were aligned with its charter. Specifically, members have a clear understanding of the role and responsibility of the BAC, strive to ensure the BAC acts independently of Valley Water management, meet regularly as scheduled, adhere to the annual work plan, maintain open lines of communication with the Chief Audit Executive, engage in ongoing assessments of corrective action taken by management in response to audit findings and recommendations, routinely evaluate risk and systems of internal control, and strive for continuous improvement.
However, members raised specific areas where improvements may be achieved, and value added. These include:
• Incorporating into the risk assessment process (a) areas within Valley Water’s operations and capital program that should be audited on a cyclical basis, and (b) areas focused on the Water Supply Master Plan, including factors that could impede Valley Water’s ability to ensure a reliable, sustainable water supply.
• Promoting transparency by developing a way to report to the public. This could include developing an annual report reflecting audit activity as well as improvements that Valley Water has made as a result of the audit process-e.g., the results or outcomes of Board-directed audits, management audits, and other audits.
• Developing a process to initiate audits when there is turnover of executive leadership and/or Board Appointed Officers.
• Updating the BAC Charter to allow for follow-on audit services related to completed audits.
• Promoting open communication between Board members and Board auditors, including communications during the audit planning process.
• Developing a process to facilitate management or stakeholder feedback on the audit process.
• Continuing to emphasize Valley Water’s collaborative approach to audits, focusing on continuous improvement while minimizing the potentially adversarial nature of audits and building collaboration from management and staff.
The purpose of this agenda item is to discuss the results of the 2024 annual self-evaluation.
ENVIRONMENTAL JUSTICE IMPACT:
The Annual Self-Evaluation topic is not subject to environmental justice analysis. The discussion is an opportunity for the BAC members to identify areas where the committee is doing well, and/or areas where the committee could improve their efforts to meet the Board's priorities.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068