File #: 22-1307    Version: 1 Name:
Type: Board of Directors Item Status: Agenda Ready
File created: 11/1/2022 In control: Board of Directors
On agenda: 11/22/2022 Final action:
Title: Consider the October 19, 2022, Board Audit Committee Recommendation to Remove Objective 1 Related to Risk Management Organizational Alignment; Keep Objective 2 Related to Operational Performance Audit Objective for Consideration at a Later Date; and Authorize Staff to Update FY 22-24 Annual Audit Workplan.
Attachments: 1. Attachment 1: 2019-2021 Annual Audit Work Plan, 2. Attachment 2: 2022-2024 Annual Audit Work Plan
BOARD AGENDA MEMORANDUM


SUBJECT:Title
Consider the October 19, 2022, Board Audit Committee Recommendation to Remove Objective 1 Related to Risk Management Organizational Alignment; Keep Objective 2 Related to Operational Performance Audit Objective for Consideration at a Later Date; and Authorize Staff to Update FY 22-24 Annual Audit Workplan.


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RECOMMENDATION:Recommendation
Consider recommendations resulting from the October 19, 2022, Board Audit Committee (BAC) meeting to:
A. Remove Objective 1 related to Risk Management organizational alignment from the FY22-24 Annual Audit Work Plan;
B. Keep Objective 2 related to operational performance audit objective for consideration at a later date; and
C. Authorize staff to update FY22-24 Annual Audit Workplan accordingly.


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SUMMARY:
The 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. Furthermore, the BAC Charter states in Article 1 - Purpose, Paragraph 6 that "In carrying out its functions, the Committee shall emphasize: (a) the identification of organizational risk; (b) service delivery; (c) operational efficiency; (d) effectiveness of Valley Water programs; (e) project delivery; (f) establishment of an Annual Workplan to guide the Committee's work; and (g) oversight and monitoring of Valley Water operations and compliance with all applicable regulatory requirements."
At the December 16th, 2020, BAC meeting the BAC reviewed and discussed the District Counsel Audit Final Report. Recommendation #5 from the District Counsel Audit was addressed to the Board Audit Committee as follows: "The Board Audit Committee should ensure that the scope of the audit currently proposed in the annual audit work plan for the risk management function, include an evaluation of the advantages and disadvantages of implementing alternative organizational alignments for the Risk Man...

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