HomeMy WebLinkAbout4.a. Conduct biennial review and approve revisions to Board Policy BP 039 - Internal Audit Function Page 1 of 3
Item 4.a.
,orVIOIN SAN
July 6, 2021
TO: ADMINISTRATION COMMITTEE
FROM: KATIE YOUNG, SECRETARY OF THE DISTRICT
REVIEWED BY: BENJAMIN JOHNSON, INTERNALAUDITOR
PHI LI P LEI BER, DIRECTOR OF ADMINISTRATION AND FINANCE
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: CONDUCT BIENNIAL REVIEW AND APPROVE REVISIONS TO BOARD
POLICY BP 039 - INTERNALAUDIT FUNCTION
Staff has recommended changes to the existing policy, which is being presented for Committee consideration for
biennial review. Those changes are reflected in strikeout on the attached copy. If the Committee concurs, the
proposed changes will be brought to the full Board for consideration.
Strategic Plan Tie-In
GOAL ONE: Customer and Community
Strategy 2—Maintain a positive reputation
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
ATTACHMENTS:
1. Proposed Revisions to BP 039
July 6, 2021 Regular ADM IN Committee Meeting Agenda Packet- Page 4 of 78
Page 2 of 3
Number: BP 039
Related Admin. Procedure AP 039
Authority: Board of Directors ,
Effective: May 2, 2019 ----
Revised:
Reviewed: July 6, 2021 CENTRALSAN
Initiating Dept./Div.: Administration/Internal Audit
BOARD POLICY
INTERNAL AUDIT FUNCTION
PURPOSE
The purpose of this policy is to establish an Internal Audit function within Central San as
part of the framework for monitoring the ongoing effectiveness of internal controls.
POLICY
The Board of Directors supports establishment and maintenance of an Internal Audit
function to assist management in fulfilling its mission.
1. Authority
The Internal Audit function shall report administratively to the General Manager and
functionally to the Board of Directors.
Cooperation shall be afforded by staff to the Internal Auditor in the execution of
internal audits as specified by the annual audit work plan approved by the Board and
in other audits as approved by the General Manager. Documentation shall be made
available to the +Internal aAuditor as requested, in furtherance of this.Un^n FegYe .+
as deerned appropriate by the Board, to satisfy the ebjeGtives ef the InterRal Audi
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2. Independence and Objectivity
Internal auditors will have no direct operational responsibility or authority over any
activities audited, nor engage in activities that may impair their judgement. Any
impairment in fact or appearance will be disclosed by Internal Audit to the Board.
3. Responsibility
The Internal Audit function shall
July 6, 2021 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 78
Page 3 of 3
Number: BP 039
INTERNAL AUDIT FUNCTION
Page 2 of 2
• Present an annual audit plan to the Board of Directors.
• Present each internal audit report to the Board Committee having jurisdiction
over the subject matter of the audit, and subsequently to the Board.
/1 Review and Onnreyal of the Internal Audit Beard Dnlln\/
This nelinY will be reviewed at least every twe years and revised as needed-.
[Original retained by the Secretary of the District]
July 6, 2021 Regular ADMIN Committee Meeting Agenda Packet- Page 6 of 78