A Report by*

R2

County Organizations maintain or add audit report results to appropriate financial managements' performance goals to ensure that such individuals are held accountable for promptly remedying deficiencies identified in audit reports, and consider the legality of maintaining or adding such performance goals on audit reports to financial managements' evaluations.

R3

The County Organizations improve direct financial oversight and assessment of the control environment including: The Board of Supervisors more actively provide oversight in the case of the County a. and appoint a formal Audit Committee from among their members to ensure that Internal Control and grant compliance deficiencies are promptly remedied and there are sufficient direct and detailed discussions between the Board and the outside auditors. b. The City Councils more actively provide oversight by appointing an Audit Committee from among their members as well as an ad hoc citizens' committee to ensure that Internal Control deficiencies are promptly remedied. c. The governing boards of school districts appoint a formal Audit Committee from among their members and provide direct oversight to district operating and financial management to ensure that Internal Control deficiencies are promptly remedied. d. The governing boards of special districts appoint a formal Audit Committee from among their members and provide direct oversight to district operating and financial management to ensure that Internal Control deficiencies are promptly remedied. In instances where the size of the entity precludes an adequate segregation of duties, governing board members need to consider direct involvement in key financial processes. The Superintendent of the County Office of Education continue to provide e. oversight over governing boards of school districts and continue to use the power of this office to compel remediation of Internal Control deficiencies. f. LAFCO (Local Agency Formation Commission) encourage governing boards of special districts to promptly remedy Internal Control deficiencies that are identified. The Board of Supervisors have the County internal audit staff report directly to the g. Board of Supervisors rather than the Auditor Controller. The governing boards of Contra Costa County 2012-2013 Grand Jury ASSESSING FISCAL RISK other County Organizations have the internal audit groups of other County Organizations maintain their independence and not report to financial management but instead to the City Council in the case of cities and the governing boards in the case of school districts and special districts.