File #: 2020-0633   
Type: Informational Report Status: Filed
File created: 9/15/2020 In control: Board of Directors - Regular Board Meeting
On agenda: 10/22/2020 Final action: 10/22/2020
Title: ADOPT the FY21 Proposed Audit Plan.
Sponsors: Finance, Budget and Audit Committee
Indexes: Access Services Inc., Audit, Budgeting, Capital Project, Coronavirus Disease 2019 (COVID-19), Evaluation and assessment, Financial Audit, Funding plan, Informational Report, Metro Vision 2028 Plan, Metrolink, Plan, Policy, Strategic planning
Attachments: 1. Attachment A - FY21 Proposed Audit Plan, 2. Presentation
Related files: 2020-0786
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 14, 2020

Subject
SUBJECT: FY21 AUDIT PLAN

Action
ACTION: ADOPT THE FY21 PROPOSED AUDIT PLAN

Heading
RECOMMENDATION

Title
ADOPT the FY21 Proposed Audit Plan.

Issue
ISSUE

Management Audit Services (MAS) is required to complete an annual agency-wide risk assessment and submit an annual audit plan to the Board of Directors for approval.

Background
BACKGROUND

At its January 2008 meeting, the Board adopted modifications to the FY07 Financial Stability Policy. The Financial Stability Policy requires Management Audit Services (MAS) to develop a risk assessment and an audit plan each year and present it to the Board. It also requires that the Finance, Budget and Audit Committee provide input and approval of the audit plan.

Discussion
DISCUSSION

The FY21 Audit Plan (Audit Plan) has been developed with consideration to the current state of the agency as result of the impacts of COVID-19 and the results of the agency-wide risk assessment including input from Metro's senior leadership. As a result, the Audit Plan is flexible, relevant and risk based; and the plan includes audit projects that will provide actionable information to support risk management efforts, add value to the agency and lend to the achievement of organizational goals in alignment to Metro's Vision 2028 Strategic Plan.

A. Risk Assessment

MAS staff performed an agency-wide risk assessment between the period of March 2020 and July 2020 through a comprehensive and systematic process that entailed the review of financial, operational and strategic reports and data; internal stakeholder meetings with the senior leadership teams of each Metro department; and the analysis of risks by themes and impact. The risk assessment ensured continued emphasis on the agency's internal control framework, vulnerability to fraud and the identification of new and emerging risks that have the potential to affect the agency-wide performance.
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