Internal Audit Department Status Report to the Board of Supervisors

Description

EXHIBIT A IAD’S MONTHLY ACTIVITY REPORT FOR MARCH 2007 TO THE BOARD OF SUPERVISORS 2005 Recipient of the Institute of Internal Auditors’ Award for Recognition of Commitment to Professional Excellence, Quality & Outreach The Internal Audit Department is an independent audit function reporting directly to the Orange County Board of Supervisors. by the Director of Internal Audit Dr. Peter Hughes, MBA, CPA Certified Information Technology Professional (CITP), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE) Assistance in assembling this report provided by: Eli Littner, Deputy Director, CPA, CIA, CFE, CFS, CISA Alan Marcum, Senior Audit Manager, MBA, CPA, CIA, CFE Michael J. Goodwin, Senior Audit Manager, CPA, CIA Autumn McKinney, Senior Audit Manager, CPA, CIA, CGFM Board Date: April 24, 2007 Exhibit A, Page 1 of 7 MONTHLY SUMMARY – March 2007 Status Report to the Board of Supervisors by IAD MARCH AUDIT ACTIVITY: WE FINISHED 4 PROJECTS FOR THIS MONTH AS SUMMARIZED BELOW: We completed 1 Audit: 1. Health Care Agency - Performance Measure Validation: Based on our audit of the 2005 Results reported in HCA 2006 Business Plan, we rated 87% or thirteen (13) of HCA reported Performance Indicator Results as 5 Star, and two (2) as 4 Star. We completed 3 Follow-Up Audits: 1. John Wayne Airport Public Works Contract Administration First and Final Close-Out Follow-Up Audit of JWA public works ...

Sujets

• management
• managers

Informations

• Publié par: Erdie
• Nombre de lectures: 20
• Langue: English

Extrait

EXHIBIT A

Board Date:

April 24, 2007

Exhibit A,

Page 1 of 7

IAD’

S

M

ONTHLY

A

CTIVITY

R

EPORT

FOR

M

ARCH

2007

TO THE

BOARD OF SUPERVISORS

2005 Recipient of the Institute of Internal Auditors’ Award for

Recognition of Commitment to Professional Excellence, Quality & Outreach

The Internal Audit Department is an independent audit function reporting directly to the Orange County Board of Supervisors.

by the Director of Internal Audit

Dr. Peter Hughes, MBA, CPA

Certified Information Technology Professional (CITP),

Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE)

Assistance in assembling this report provided by:

Eli Littner, Deputy Director

, CPA, CIA, CFE, CFS, CISA

Alan Marcum, Senior Audit Manager

, MBA, CPA, CIA, CFE

Michael J. Goodwin, Senior Audit Manager

, CPA, CIA

Autumn McKinney,

Senior

Audit Manager

,

CPA, CIA, CGFM

MONTHLY SUMMARY – March

2007

Status Report to the Board of Supervisors by IAD

MARCH AUDIT ACTIVITY:

WE FINISHED 4 PROJECTS FOR THIS MONTH AS SUMMARIZED

BELOW:

We completed 1 Audit:

1.

Health Care Agency - Performance Measure Validation:

Based on our

audit of the 2005 Results reported in HCA 2006 Business Plan, we rated

87% or thirteen (13) of HCA reported Performance Indicator Results as 5

Star, and two (2) as 4 Star.

We completed 3 Follow-Up Audits:

1.

John Wayne Airport Public Works Contract Administration

First and Final Close-Out Follow-Up Audit of JWA public works

contract administration. Corrective action was taken on all

26

recommendations.

2.

Assessor Department Revolving Fund

First and Final Close-Out Follow-Up Audit of the Assessor revolving

fund. Corrective action was taken on all

3

recommendations.

3.

District Attorney Revolving Fund

First and Final Close-Out Follow-Up Audit of the District Attorney

revolving fund. Corrective action was taken on all

3

recommendations.

Board Date:

April 24, 2007

Exhibit A,

Page 2 of 7

MONTHLY SUMMARY – March 2007

Status Report to the Board of Supervisors by IAD

Board Date:

April 24, 2007

Exhibit

A, Page 3 of 7

For a copy of the complete audit report that contains the audit objective,

scope, findings, recommendations, and management’s response,

contact the Internal Audit Department’s website at http://www.ocgov.com/audit/

MATERIAL FINDING:

Department and Description

Comments

None issued during March 2007.

MONTHLY SUMMARY – March 2007

Status Report to the Board of Supervisors by IAD

Board Date:

April 24, 2007

Exhibit

A, Page 4 of 7

For a copy of the complete audit report that contains the audit objective,

scope, findings, recommendations, and management’s response,

contact the Internal Audit Department’s website at http://www.ocgov.com/audit/

NON-MATERIAL FINDINGS

Department and Description

Comments

1.

DEPT:

Health Care Agency

TITLE:

Performance Measure

Validation

Audit No.:

2658

ISSUED:

March 7, 2007

S

COPE

:

Our audit included obtaining an understanding of the methodology in place for

collecting and reporting Performance Indicator Results by interviewing key personnel,

observations, and reviewing source documentation.

The 2005 Business Plan contained a

total of 15 Performance Indicator Results; we selected all 15 for testing Health Care

Agency (HCA) supporting documentation. Our audit scope did not include an assessment

of the appropriateness of HCA Performance Indicators based on their mission, goals and

objectives.

We rated source (supporting) documentation provided as follows:

5 Star -

Adequate supporting documentation; 4 Star - Adequate documentation with

recommendations for improvement; and 3 Star - Noted opportunities for improvement.

C

ONCLUSION

:

Based on our audit of the 2005 Results reported in HCA 2006 Business

Plan, we rated 87% or thirteen (13) of HCA reported Performance Indicator Results as 5

Star, and two (2) as 4 Star.

B

ACKGROUND

:

We have initiated our PMV audits at the request of the Audit Oversight

Committee.

Our approach is to review performance measure results, assign validation

ratings, report conclusions, and make recommendations.

Our validation program is

designed to provide assurance to the Board of Supervisors, the County Executive Officer,

and the departments/agencies and other stakeholders that reported Outcome Indicators are

reliable and can be utilized in decision making covering Government resources with

confidence.

T

YPE OF

R

ECOMMENDATIONS

:

S

upporting documents are retained for all results reported in

the Business Plans.

MONTHLY SUMMARY – March 2007

Status Report to the Board of Supervisors by IAD

Board Date:

April 24, 2007

Exhibit

A, Page 5 of 7

For a copy of the complete audit report that contains the audit objective,

scope, findings, recommendations, and management’s response,

contact the Internal Audit Department’s website at http://www.ocgov.com/audit/

Department and Description

Comments

2.

DEPT:

John Wayne Airport

TITLE:

Final Close-Out Follow-

up Audit of the John Wayne

Airport Public Works Contract

Administration, (Original Audit

No. 2567, Issued June 29, 2006)

Audit No.:

2636-C

ISSUED:

March 8, 2007

S

COPE

:

1

st

Follow-Up Audit of John Wayne Airport public works contract administration

to determine the implementation status of recommendations made in our original report.

In that report, there were

26

recommendations to enhance controls and processes over

public works contract administration.

C

ONCLUSION

:

We are pleased to report that satisfactory corrective action has taken place

on all

26

recommendations.

As such, this report represents the final close-out of the

original audit.

B

ACKGROUND

:

Our original audit examined two types of public works contracts:

Public

Works contracts exceeding $75,000, and Delivery Order contracts.

As of July 2005, there

were

ten active public works contracts over $75,000

with contracts ranging individually

from

$558,000 to $5,997,500

.

T

YPE OF

R

ECOMMENDATIONS

:

Updating written policies and procedures; establishing

criteria for evaluating contractor bids; reconciling project financial reports; performing

field inspections and supervisory reviews of inspection reports; documenting deviations to

project plans and specifications; reviewing change orders; ensuring accuracy of contractor

pay requests, and finalizing procedures for Delivery Order contract administration.

MONTHLY SUMMARY – March 2007

Status Report to the Board of Supervisors by IAD

Board Date:

April 24, 2007

Exhibit

A, Page 6 of 7

For a copy of the complete audit report that contains the audit objective,

scope, findings, recommendations, and management’s response,

contact the Internal Audit Department’s website at http://www.ocgov.com/audit/

Department and Description

Comments

3.

DEPT:

Assessor

TITLE:

First and Final Close-Out

Follow-Up Audit of the Assessor

Department Revolving Fund,

(Original Audit No. 2596, Issued

August 21, 2006)

Audit No.:

2636-F

ISSUED:

March 15, 2007

S

COPE

:

1

st

Follow-Up Audit of Assessor Department revolving fund to determine the

implementation status of recommendations made in our original report.

In that report,

there were

3

recommendations to enhance revolving fund controls and processes.

C

ONCLUSION

: We are pleased to report that satisfactory corrective action has taken place

on all

3

recommendations.

As such, this report represents the final close-out of the

original audit.

B

ACKGROUND

:

The Assessor Department maintains one revolving fund of

$80,000

for

general operations and has allocated $60,000 for travel cash advances and $20,000 for

petty cash expenditures.

During the period under review, there were approximately

$64,000 in travel cash advances and $29,000 in petty cash expenditures.

T

YPE OF

R

ECOMMENDATIONS

:

Perform travel cash advance

fund reconciliations on a

monthly basis;

submit travel cash advance claims timely per CAM procedures; ensure that

travel cash advance supporting documentation is marked as “paid.”

MONTHLY SUMMARY – March 2007

Status Report to the Board of Supervisors by IAD

Board Date:

April 24, 2007

Exhibit

A, Page 7 of 7

For a copy of the complete audit report that contains the audit objective,

scope, findings, recommendations, and management’s response,

contact the Internal Audit Department’s website at http://www.ocgov.com/audit/

4.

DEPT: District Attorney

TITLE:

Final Close-Out Follow-

Up Audit of the District Attorney

Revolving Fund, (Original Audit

No. 2597, Issued August 9, 2006)

Audit No.:

2636-E

ISSUED:

March 19, 2007

S

COPE

:

1

st

Follow-Up Audit of the District Attorney revolving fund to determine the

implementation status of recommendations made in our original report.

In that report,

there were

3

recommendations to enhance revolving fund controls and processes.

C

ONCLUSION

: We are pleased to report that satisfactory corrective action has taken place

on all

3

recommendations.

As such, this report represents the final close-out of the

original audit.

B

ACKGROUND

:

The District Attorney maintains one revolving fund of

$70,000

for general

operations and has allocated $30,000 for travel cash advances and $40,000 for petty cash

expenditures.

During the period under review, there were approximately

$116,000 in

travel cash advances and $128,000 in petty cash expenditures.

T

YPE OF

R

ECOMMENDATIONS

:

Segregate duties of petty cash request approval and check

signing; submit travel cash advance claims timely per CAM procedures; ensure long-

outstanding items on bank and fund reconciliations are resolved timely.