BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Receive the Board Audit Committee 2020 Self-Evaluation Report.
End
RECOMMENDATION:
Recommendation
Receive the Board Audit Committee 2020 Self-Evaluation Report.
Body
SUMMARY:
The Board Audit Committee (BAC) was established to assist the Board of Directors (Board), consistent with direction from the full Board, to identify potential areas for audit and audit priorities, and to review, update, plan, and coordinate execution of Board audits.
On August 27, 2019, the Board approved the BAC Audit Charter to provide detailed guidance regarding how the BAC should carry out its functions and to guide the work of the Board's Chief Audit Executive. TAP International, Inc.
According to Article 9, paragraph 4 of the BAC Audit Charter, the BAC shall conduct a self-evaluation of its performance annually. The Committee shall conduct the evaluation of its performance to determine whether it is functioning effectively and to discuss with the Independent Auditor any observations related to the effectiveness of the Committee. The Committee shall prepare a formal report based upon each such self-evaluation and shall provide such report to the full Board following its adoption by the Committee.
At the March 17, 2021 BAC meeting the committee reviewed the completed self-evaluation forms (attached). Except for a few aspects, the BAC generally agreed that the overall governance of the committee was aligned with its charter. There was also general agreement that the committee composition was independent and had an adequate representation of diverse knowledge, skills, and abilities.
Specific aspects identified for improvement are as follows:
? Maintaining open communication with the Board and the Independent Auditor
? Allowing the independent auditor and external auditors to raise sensitive issues in compliance with the Brown Act
? Review of key decisions made by management that may impose material risk to Valley Water business areas...
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