HomeMy WebLinkAbout03.a. Proposed Revisions to Board Policy No. BP 039 - Internal Audit FunctionPage 1 of 4
Item 3.a.
DCENTRALSAN
MEETING DATE: JUNE 6, 2023
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER APPROVING PROPOSED REVISIONS
TO BOARD POLICY NO. BP 039 - INTERNALAUDIT FUNCTION
SUBMITTED BY: INITIATING DEPARTMENT:
KATIE YOUNG, SECRETARY OF THE SECRETARYOF THE DISTRICT
DISTRICT
REVIEWED BY: BENJAMIN JOHNSON, INTERNALAUDITOR
PHILIP LEIBER, DEPUTYGENERAL MANAGER
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
Revisions to Board of Directors (Board) policies must be approved by Central San's Board.
BACKGROUND
The policy is up for its biennial review and staff would like to propose revisions to update the language in
the policy. No substantive changes were made.
ALTERNATIVES/CONSIDERATIONS
The Board could elect to not accept the changes.
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
This item was reviewed at the June 6, 2023, Administration Committee meeting. The Committee
staffs recommended changes.
June 6, 2023 Regular ADM IN Committee Meeting Agenda Packet - Page 3 of 32
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RECOMMENDED BOARD ACTION
Approve the proposed revisions to BP 039 - Intemal Audit Function
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability
and sustainability
GOAL FIVE: Safety and Security
Strategy 2 - Protect personnel and assets from threats and emergencies
ATTACHMENTS:
1. Proposed Revisions to BP 039 - Internal Audit Function
June 6, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 4 of 32
Page 3 of 4
Number: BP 039
Related Admin. Procedure AP 039
Authority: Board of Directors
Effective: May 2, 2019
Revised: July 15, 2021
Reviewed: July 6;2021- June 6, 2023
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.
Authority
The Internal Audit function shall report administratively to the General Manager
and functionally to the Board of Directors.
Timely Sooperation 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 objective.
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.
June 6, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 5 of 32
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Number: BP 039
INTERNAL AUDIT FUNCTION
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3. Responsibility
The Internal Audit function shall
• 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.
[Original retained by the Secretary of the District]
June 6, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 6 of 32