BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Amendment No. 2 to Agreement No. A4071A with TAP International, Inc. for Board Independent Auditing Services to extend the Agreement term to June 30, 2021.
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RECOMMENDATION:
Recommendation
A. Approve Amendment No. 2 to Agreement No. A4071A with TAP International, Inc. for Board Independent Auditing Services to extend the Agreement term to June 30, 2021; and
B. Delegate the Authority to the Chief Executive Officer to execute the Agreement Term to June 30, 2021, Amendment No. 2, to Agreement No. A4071A with TAP International, Inc. to complete the Board Independent Auditing Services, based on the Board-approved multi-year Audit Work Plan.
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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 would be 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 ri...
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