HomeMy WebLinkAbout02. Approve revisions to Board Policy BP 039 - Internal Audit Function Page 1 of 4
Item 2.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETINGDATE: JULY15, 2021
SUBJECT: APPROVE REVISIONS TO BOARD POLICY BP 039 - INTERNAL AUDIT
FUNCTION
SUBMITTED BY: INITIATING DEPARTMENT:
KATIE YOUNG, SECRETARY OF THE SECRETARYOF THE DISTRICT
DISTRICT
REVIEWED BY: BENJAMIN JOHNSON, INTERNALAUDITOR
PHILIP LEIBER, DIRECTOR OF ADMINISTRATION AND FINANCE
Roger S. Bailey
General Manager
ISSUE
Changes to Board policies require Board approval. The Board is asked to consider acceptance of minor
updates that would amend the referenced Board Policy.
BACKGROUND
As part of the biennial review of the aforementioned Board policy, staff brought before the Administration
Committee minor revisions for review and Board approval recommendation. When revisions are
recommended, the Board Policy is brought before the full Board for consideration, which is hereby
attached and shown in a strikeout version.
ALTERNATIVES/CONSIDERATIONS
The Board could choose not to adopt the proposed revisions or provide other direction to staff.
FINANCIAL IMPACTS
None.
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COMMITTEE RECOMMENDATION
The Administration Committee reviewed the proposed changes at its meeting on July 6, 2021 and
recommended Board approval with minor revisions, which have been incorporated.
RECOMMENDED BOARD ACTION
Approve the proposed revisions to Board Policy B P 039 - Internal Audit Function.
Strategic Plan Tie-In
GOAL ONE: Customer and Community
Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation
GOAL TWO: Environmental Stewardship
Strategy 1—Achieve 100% compliance in all regulations
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
ATTACHMENTS:
1. Proposed Revisions to BP 039
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Number: BP 039
Related Admin. Procedure AP 039
Authority: Board of Directors
Effective: May 2, 2019
Revised: July 15, 2021
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 Auditor as requested, in furtherance of the forementioned
objectivempen request, as deemed apprepriate by the Beard, to satisfy the
ebjeGtiVeS Of the Internal Audit fiinntinn
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
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Number: BP 039
INTERNAL AUDIT FUNCTION
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• Present an annual audit plan to the General Manager and Board of Directors.
• Present each internal audit report to the General Manager and Board Committee
having jurisdiction over the subject matter of the audit, and subsequently to the
Board.
/1 Review and Approval of the Internal Audit Board Delini
This poliGy will be reviewed at least every two years and revised as needed-.
[Original retained by the Secretary of the District]
July 15, 2021 Regular Board Meeting Agenda Packet- Page 23 of 117