To: Board of Supervisors
From: Internal Operations Committee
Report Title: 2025 Internal Audit Report and 2026 Work Plan
☐Recommendation of the County Administrator ☒ Recommendation of Board Committee
RECOMMENDATIONS:
ACCEPT report on the Auditor-Controller’s audit activities for 2025 and schedule of audits for 2026.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
The Internal Operations Committee was asked by the Board in 2000 to review the process for establishing the annual schedule of audits, and to establish a mechanism for the Board to have input in the development of the annual audit schedule and request studies of departments, programs or procedures. The IOC recommended a process that was adopted by the Board on June 27, 2000, which called for the IOC to review the schedule of audits proposed by the Auditor-Controller and the County Administrator each December. However, due to the preeminent need during December for the Auditor to complete the Comprehensive Annual Financial Report, the IOC, some years ago, rescheduled consideration of the Auditor's report.
Internal Audit Division Manager, Sandra Bewley, presented the 2025 report to the Internal Operations Committee at its regular meeting on March 23, 2026. Attached is the report from the Auditor-Controller reviewing the department's audit activities for 2025 and transmitting the proposed schedule of financial audits for 2026, which are already in progress.
The Internal Audit Division completed (25) examinations on the Schedule of Internal Audit Examinations for 2025. As in past years, the Auditor's Office found a lack of adherence to several of the County's administrative requirements for safeguarding inventories and assets, and for ensuring reliable records. Noncompliance with procurement card policies were also among recent findings. The Auditor’s Office follows up with departments six months following the audits to review corrective action plans and their effectiveness.
CONSEQUENCE OF NEGATIVE ACTION:
This information report will not be accepted.