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Extraído del Informe Consolidado

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Score: -3 (2/2/5)

Riverside County Grand Jury • 2003-2004

Riverside County Auditor-Controller Internal Audit Unit

Published: July 06, 2004 4 pages

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⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Findings 9 findings

Evidence clearly shows that staffing shortages have plagued the Auditor-Controller’s Office since 1990. This matter has been brought to the attention of the Board of Supervisors in six (6) past Riverside County Grand Jury Reports. (1990, 1992, 1993, 1996, 1997 and 2001) In 2001 the Riverside County Grand Jury issued a report on the Riverside County Internal Audit Unit, concluding that the IAU was inadequately staffed. In May 2002, the Board of Supervisors allocated funds to the IAU for three (3) additional senior auditors, bringing the total number of senior auditors to six (6). In February 2004, an eight percent (8%) budget cut was decreed by the Board of Supervisors resulting in the loss of twenty-three (23) positions, eleven (11) staff, and twelve (12) temporary positions in the Auditor-Controller’s Office. In May 2004, one senior auditor resigned, reducing the senior auditing positions to five (5). 1

The Riverside County Board of Supervisors have utilized the county’s comprehensive annual financial report (CAFR), to meet the requirements of Government Code Section 25250 and Board of Supervisors’ Resolution 83-338. The CAFR audit is not an in- depth analysis of county operations. Without an in-depth audit, this deprives the Board of Supervisors, County Executive Officer and Department Directors of information necessary to make sound fiscal evaluations and decisions.

A severe staffing shortage has resulted in: • Non-compliance with laws, regulations, policy and procedure. • Difficulty in performing operational audits or special audits without adversely impacting the two-year auditing cycle. • Inability to perform routine financial functional and operational audits. • Failure to provide the taxpayers with accountability in spending public funds.

Riverside County has the largest average number of county employees and the fourth largest budget with a disproportionate auditing staff as shown in chart below: TOTAL AVERAGE # COUNTY TOTAL # COUNTY FISCAL OF COUNTY OF BUDGET YEAR EMPLOYEES AUDITORS San Bernardino 16 $2,378,800,251 2003-2004 16,000 Orange 17 $5,086,921,444 2003-2004 17,000 San Diego 20 $3,414,398,000 2002-2003 14,000 Ventura 7 $641,215,000 2003-2004 8,000 Riverside 5 $2,211,371,850 2003-2004 19,000 2

Frequent auditing requests from county department directors for internal audits, are causing limited audit resources to be diverted from other needed areas or the requests cannot be met.

There are thirty-eight (38) departments in Riverside County whose budgets are required to be audited by the Auditor- Controller. Approximately twenty-two (22) departments have not had an in-depth audit, within the last five (5) years, as well as the County Board of Supervisors and the County Treasurer’s Office.

A shortage of internal auditors has hampered the process of performing risk based audits, resulting in a selected review of higher risk areas in the departments and use of a system control audit approach with limited testing.

Outside CPA firms, used by county departments to perform the function that the Auditor-Controller is elected to do, results in duplication of costs and waste of taxpayer’s dollars.

The Auditor-Controller is not afforded the option to have any input as to the selection of CPA firms, type of audits performed or fees incurred for the outside audits.

Recommendations 3

R1

To be comparable with surrounding counties, the Board of Supervisors immediately fund the County Auditor-Controller a minimum of six (6) additional Senior Internal Auditor positions. Increase positions requested by the Auditor-Controller through Fiscal year 2009.
R2

To comply with Board of Supervisors’ Resolution 83-338 and Government Code Section 25250, the Auditor-Controller utilize outside auditing firms only when critical need arises. 3
R3

Outsourced audits must be procured and approved by the Auditor-Controller’s Office. The Auditor-Controller’s Office post all outsourced audits for general public information that will include, department name, cost incurred and reason for outsourcing. 4

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

Response

July 13, 2004 • 11 pages • 9 responses • Score: -3 (+2, 2, -5) View Details ▾

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9 responses to findings and recommendations

To be comparable with surrounding counties, the Board of Supervisors immediately fund the County Auditor-Controller a minimum of six (6) additional Senior Internal Auditor positions. Increase positions requested by the Auditor-Controller through Fiscal year 2009.

Response: Will Not Implement

Score: -1

The recommendation will not be implemented because it is not warranted or is not reasonable. As discussed above, the Board of Supervisors supports considering requests for increased staffing of the Auditor- Controller's .Internal Audits unit based on workload drivers, and which follow demonstrated success in completing statutory functions within planned performance measures.

Response: Disagree Partially Score: 0

Respondent agrees with the finding. The Board of Supervisors appreciates the purpose and intent of Government Code Section 25250, and is working with the Auditor-Controller toward the goal of compliance with it. Findinn 3: A severe staffing shortage has resulted in: Non-compliance with laws, regulations, policy and procedure. Difficulty in performing operational audits or special audits without adversely impacting the two-year auditing cycle. Inability to perform routine financial functional and operational audits. Failure to provide the taxpayers with accountability in spending public funds. ...

To comply with Board of Supervisors’ Resolution 83-338 and Government Code Section 25250, the Auditor-Controller utilize outside auditing firms only when critical need arises. 3

Response: Will Not Implement

Score: -1

The recommendation will not be implemented because it is not warranted or is not reasonable. The Board of Supervisors will retain any professional services necessary and appropriate for the smooth and efficient conduct of the public's business. Grand Jury Report: Riverside County Auditor-Controller Internal Audit Unit Page 5 r-

Response: Agree Score: +1

Respondent agrees with the finding.

Outsourced audits must be procured and approved by the Auditor-Controller’s Office. The Auditor-Controller’s Office post all outsourced audits for general public information that will include, department name, cost incurred and reason for outsourcing. 4

Response: Will Not Implement

Score: -1

The recommendation will not be implemented because it is not warranted or is not reasonable. It is unnecessary and inappropriate to channel all procurements for all professional auditing services through the Auditor- Controller's Office. When such services are necessary for special projects, the Board of Supervisors and departments retain discretion to engage qualified professional assistance so the Auditor-Controller's Office need not divert their own resources from fulfilling planned audits. ATTACHMENT B OFFICE OF THE COUNTYA UDITOR-CONTROLLER County Administrative Center 4080 Lemon Street,...

Response: Agree Score: +1

Respondent agrees with the finding.

Frequent auditing requests from county department directors for internal audits, are causing limited audit resources to be diverted from other needed areas or the requests cannot be met.

Response: Disagree Partially Score: 0

Respondent agrees with the finding. However, this is largely a function of the Auditor-Controller's deployment decisions. 'The Board of Supervisors supports establishing firm priorities and performance measures in the Auditor-Controller's annual audit plan. 'These should focus first on core statutory functions and high-risk issues, with sufficient flexibility in workflow planning to address a manageable number of unforeseen urgent issues. Findina 6: 'There are thirty-eight (38) departments in Riverside County whose budgets ace required to be audited by the Auditor-Controller. Approximately twe...

Outside CPA firms, used by county departments to perform the function that the Auditor-Controller is elected to do, results in duplication of costs and waste of taxpayer’s dollars.

Response: Disagree Score: -1

Respondent disagrees wholly with the finding. The County does not hire outside CPA firms to perform the Auditor-Controller's statutorily required internal audit responsibilities. The County retains professional services of accounting firms as needed to address special projects. This is not duplicative of the Auditor-Controller's role, nor is it in conflict with the Auditor-Controller's authority or statutory responsibility.

The Auditor-Controller is not afforded the option to have any input as to the selection of CPA firms, type of audits performed or fees incurred for the outside audits.

Response: Disagree Score: -1

Respondent disagrees wholly with the finding. The Auditor-Controller's office participates in procuring auditing and accounting services when appropriate and necessary. However, there are occasions when it is appropriate and within the discretion of a department or the Board of Supervisors to retain such professional services without input from the Auditor-Controller. This is not in conflict with the Auditor-Controller's authority or statutory responsibility. RECOMMENDATIONS: