Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
NOVEMBER 15, 2023
Subject
SUBJECT: MANAGEMENT AUDIT SERVICES FY 2024 FIRST QUARTER REPORT
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Management Audit Services FY 2024 first-quarter report.
Issue
ISSUE
Management Audit Services (MAS) is required to provide a quarterly activity report to Metro’s Board of Directors (Board) that presents information on audits that have been completed or are in progress, including information related to audit follow-up activities.
Background
BACKGROUND
It is customary practice for MAS to deliver the quarterly audit report. The FY 2024 first quarter report covers the period of July 1, 2023, through September 30, 2023.
Discussion
DISCUSSION
MAS provides audit services in support of Metro’s ability to provide responsive, accountable, and trustworthy governance. The department performs internal and external audits. Internal audits evaluate the processes and controls within the agency, while external audits analyze contractors, cities, and/or non-profit organizations that are recipients of Metro funds. The department delivers management audit services through functional groups: Performance Audit; Contract, Financial and Compliance Audit; and Administration and Policy, which includes audit support functions. Performance Audit is mainly responsible for internal audits related to Operations, Finance and Administration, Planning and Development, Program Management, Information Technology, Communications, Risk, Safety and Asset Management including the Chief Executive Office; and other internal areas. Contract, Financial and Compliance Audit is primarily responsible for external audits in Planning, Program Management and Vendor/Contract Management. MAS’ functional units provide assurance to the public that internal processes and programs are being managed efficiently, effectively, economically, ethically, and equitably; and that desired outcomes are being achieved. This assurance is provided by MAS’ functional units conducting audits of program effectiveness, economy and efficiency, internal controls, and compliance. Administration and Policy is responsible for administration, quality assurance, financial management, including audit support, audit follow-up, and resolution tracking.
The following summarizes MAS activity for FY 2024 first quarter:
Performance Audits: One (1) audit project was completed; seven (7) were in progress.
Contract, Financial and Compliance Audits: Eleven (11) audits with a total value of $2.6 million were completed; 75 were in progress.
Audit Follow-up and Resolution: Twenty-eight (28) recommendations were closed; 5 are open.
Note: MAS performs audit follow-up for the OIG.
The FY 2024 First Quarter Report is included as Attachment A.
Equity_Platform
EQUITY PLATFORM
Management Audit Services’ quarterly audit activities provide an additional level of review and assessment to identify potential equity impacts from Metro’s work and performance. There are no known equity impacts or concerns from audit services conducted during this period.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Management Audit Services FY 2024 First Quarter Report supports Metro’s Vision 2028 Goal #5: Provide responsive, accountable, and trustworthy governance within the Metro organization.
Next_Steps
NEXT STEPS
Management Audit Services will continue to report audit activity throughout the current fiscal year.
Attachments
ATTACHMENT
Attachment A - FY 2024 First Quarter Report
Prepared_by
Prepared by:
Monica Del Toro, Sr. Manager, Audit, (213) 922-7494
Lauren Choi, Sr. Director, Audit, (213) 922-3926
Alfred Rodas, Sr. Director, Audit, (213) 922-4553
Kimberly L. Houston, Deputy Chief Auditor, (213) 922-4720
Reviewed_by
Reviewed by: Sharon Gookin, Deputy Chief Executive Officer, (213) 418-3101
