COMMITTEE AGENDA MEMORANDUM
Board Audit Committee
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: title
Discuss Potential Audit Topics for 2027 Annual Audit Plan, and Provide Further Guidance as Needed.
End
RECOMMENDATION:
Recommendation
Discuss potential audit topics for 2027 Annual Audit Plan, and provide further guidance as needed.
Body
SUMMARY:
The purpose of this agenda item is to discuss the potential audit topics to be proposed as the 2026 Annual Audit Plan, discuss any new related information as appropriate, and provide any guidance the BAC deems appropriate.
The BAC Charter, Article I, Paragraph 4 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." To that end, the Board's 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 results of the risk assessment included input from Valley Water's Board of Directors (the Board), executives, and management and was used to help develop the proposed 2024-2026 Audit Plan, included as Appendix B of Attachment 1. Based on this risk assessment and subsequent committee meeting discussions, the BAC recommended to the Board, and the Board approved the completion of performance audits on the following topics:
* Information Technology / Cybersecurity
* Human Resources
* Board Policies
* Capital Project Delivery
* Contracting Practices
* Water Conservation Strategies
* Water Usage and Demand Forecasting
* Asset Management
* Investigations Process
* Pacheco Reservoir
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