BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Consider the November 20, 2024, Board Audit Committee Recommendation of Including Performance Audits for the 2025 Annual Audit Plan and Provide Further Guidance as Needed.
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RECOMMENDATION: Recommendation
Consider recommendations resulting from the November 20, 2024, Board Audit Committee meeting to:
A. Approve the inclusion of Performance Audits for the 2025 Annual Audit Plan; and
B. Provide further guidance as needed.
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SUMMARY:
According to the Board Audit Committee (BAC) Charter, Article I, Paragraph 4 which states "The Committee shall assist the Board, consistent with direction from the full Board, by identifying potential areas for audit and audit priorities, and to review, update, plan and coordinate execution of Board audits."
Additionally, Article VI, Paragraph 1 states "The Committee shall make recommendations to the full Board for the selection of all Auditors to perform audits in the approved Annual Audit Plan. . . ."
To this end, the Chief Audit Executive (CAE) conducted a risk assessment in FY 2023 to identify key areas of risk that could be considered for auditing. The 2023 Risk Assessment Final Report dated November 2023 (Attachment 1) is attached for reference. The Risk Assessment includes heat maps of Valley Water's operational areas based on risk impact (low, moderate, and high risk). The CAE also interviewed Board members to obtain input regarding potential audit topics for the 2025 Annual Audit Plan.
The BAC Audit Charter (Article III, Paragraph 7.2) also requires that, by November 30 of each year, the BAC shall submit its recommended Annual Audit Plan to the full Board for consideration and direction.
At the August 21, 2024, BAC meeting, the CAE began discussion of potential audit topics and the process and schedule for completing the proposed Annual Audit Plan for the full Board's co...
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