BOARD AGENDA MEMORANDUM
SUBJECT: Title
Approve Revised Clarifying Language to the Board Audit Committee Audit Charter.
End
RECOMMENDATION: Recommendation
Approve Revised Clarifying Language to the Board Audit Committee Audit Charter.
Body
SUMMARY:
The Board Audit Committee (BAC) was established by the Valley Water Board of Directors (Board) to identify potential areas and priorities for auditing; to review, update, plan, and coordinate the execution of Board audits. On September 26, 2018, the BAC directed that a Board Audit Committee Audit Charter (BAC Audit Charter) be developed, and on June 26, 2019, it approved of a final version of the BAC Audit Charter to recommend for approval by the Board. At its regular meeting of August 27, 2019, the Board formally approved the BAC Audit Charter. As a best practice, the BAC Audit Charter provides the BAC with formal Board guidance regarding its purpose, duties, and powers. It also ensures that audits are carried out in accordance with the expectations of the Board and in accordance with commonly recognized audit standards.
At the September 16, 2020, BAC meeting, the BAC recommended that staff present to the full Board for approval the following updates to the BAC Audit Charter: (1) updated naming convention from "the District" to "Valley Water" and substituted the new Valley Water logo on the cover page; (2) addition of Article III Section 3 - Disclosure of Impairment to Independence; (3) addition of supplemental text to Article III Section 7.2 related to proposed substantive changes to the Annual Audit Work Plan must be approved by the Board; (4) addition of supplemental text to Article V Section 2(e) related to Board approval not required for desk reviews; and (5) addition of supplemental text to Article VI Section 7 related to management review for technical accuracy of preliminary draft audit report to be provided within ten working days from issuance. These proposed changes were presented at the Oct...
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