BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Approve Recommendation from Board Audit Committee to Approve the Fiscal Years 2018-2019 to 2020-2021 Annual Audit Work Plan Updated by the Board Independent Auditor, TAP International, Inc.
End
RECOMMENDATION:
Recommendation
A. Approve the addition of the Fiscal Year 2020-2021 Property Management Audit to the Fiscal Year 2018-2019 to Fiscal Year 2020-2021 Annual Audit Work Plan; and
B. Approve the Updated Fiscal Year 2018-2019 to Fiscal Year 2020-2021 Annual Audit Work Plan.
Body
SUMMARY:
On May 23, 2017, the Board approved an on-call consultant agreement with TAP International, Inc. (TAP International) for Board Independent Auditing Services. The agreement requires TAP International to work with the Board and the Board Audit Committee (BAC) to develop an annual audit program, assess operational risks, advise on potential audits to ensure Santa Clara Valley Water District (Valley Water) is in full compliance with its policies, procedures, and regulations, and conduct audits as directed by the Board and BAC.
On September 26, 2018, TAP International presented the final Risk Assessment Model to the BAC assessing operational risks to Valley Water. The Risk Assessment Model developed heat maps of Valley Water operational areas based on risk impact (low, moderate, and high risk). The results of the risk assessment include input from Valley Water's Board of Directors, management, and staff and was used to assist in the development of an Annual Audit Work Plan. The highest risk areas include procurement, contract change order management, succession planning, and fraud prevention.
On December 3, 2018, TAP International presented a draft Audit Work Plan to the BAC. The draft Audit Work Plan identified 41 potential audits to conduct, ranked by highest risk, based on the results of the risk assessment previously conducted by Valley Water's independent auditor, Board of Directors, and management and staff.
The BAC reviewed...
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