BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Recommendation from Board Audit Committee for the Board to Approve the Implementation of Three Performance Audits by the Board Independent Auditor, TAP International, Inc.
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RECOMMENDATION:
Recommendation
A. Approve the Board Independent Auditor, TAP International, Inc., to conduct three performance audits recommended by the Board Audit Committee, to include performance audits of the District Counsel's office, contract change order management processes, and real estate services; and
B. Authorize the Chief Executive Officer to increase the not-to-exceed amount of the on-call consultant agreement with TAP International, Inc. (Agreement A4071A) from $405,000 to $1,005,000 to complete the three proposed audits and approximately three additional future audits.
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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 the District 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 the District. The Risk Assessment Model developed heat maps of District operational areas based on risk impact (low, moderate, and high risk). The results of the risk assessment include input from the District'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 03, 2018, TAP International presented a draft Audit Work Plan to the BAC. The d...
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