June 19, 1995

TO: Rodney S. Melville, Presiding Judge of the Superior Court Robert Glick, Grand Jury Foreman

FROM: John Torell, CPA, Asst. Auditor-Controller

RE: Grand Jury Interim Final Report - Management of County

Government

Per the Grand Jury's request, and as required by law, we are' responding to those recommendations made in the subject report which pertain to our Department.

Recommendation 7a: The Grand Jury recommends that the Board of Supervisors either (1) direct the county Administrator's office, or (2) enter into an agreement With the Auditor-Controller, to perform management audits of each department under the Board's control on a five year cycle,, and report the results to the Board.

Auditor-Controller's Response: In January of last year, the Board of Supervisors approved Internal Audit's proposed "Five year Audit Plan". On that occasion, as well as on other occasions, (notably upon the Board's review of the management audit of the Assessor's office, as well as upon the Board's review of Internal Audit's evaluation of the County-Clerk/Assessor proposed consolidation), the Board expressed a desire that all departments be audited by Internal Audit on a rotational basis.

Upon adoption of the audit plan, it was pointed out to the Board that Sec. 1236 of the Ca. Gov't Code precluded the County Administrator from performing management audits. while it is the County Administrator's job to "manage" the County, it is the duty. of the Auditor to evaluate the County Administrator's effectiveness, via management audits.

Internal Audit will continue to perform management audits of County departments and will continue to solicit Board and departmental input in establishing audit priorities.

Recommendation 7b: ~e Grand Jury recommends that the Board direct the County Administrator to coordinate the initiation of an effective annual self-audit by each department headed by a nonelected department head, and report the results to the Board within thirty (JO) days of its completion.

AuditorController's Responses Internal Audit has developed an Internal Control management survey that was designed to assist managers to self-assess the adequacy of financial and management controls in their own departments to assure that policies are adhered to and objectives thereby achieved. Although the Board directed Internal Audit to circulate the survey, other priorities have precluded this being done. Internal Audit could be in a position to circulate the survey and evaluate survey results at the' Board's discretion upon a reprioritization of present audit activities.

Recommendation 7c: The Grand Jury recommends that each department headed by an elected official should initiate a selfadministered audit program, and require an outside review audit every five years by either the AuditorController, the County Administrator, or an outside consultant and publish the results and recommendations.

AllditorController's Response: See responses to Recommendations la and lb above. All departments (whether headed by elected or appointed department heads) are included in Internal Audit's Five year Audit Plan. In addition, the self assessment survey referred to above would also be circulated to all departments.

c: Kent Taylor, County Administrator