TO: Board of Supervisors
FROM: Tracy Schulze, Auditor-Controller
REPORT BY: Christine Hernandez, Deputy Auditor-Controller
SUBJECT: Countywide Internal Control Review over Capital Asset Inventory Certification Process for the Fiscal Year Ended June 30, 2024
RECOMMENDATION
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Accept and instruct the Clerk of the Board to file the report summarizing the countywide internal control review of the capital asset inventory certification process for the Fiscal Year Ended June 30, 2024. (No Fiscal Impact)
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BACKGROUND
Internal Audit conducted a countywide review of internal controls over the year-end capital asset inventory certification process for the fiscal year ended June 30, 2024. The review covered 26 departments representing both governmental and enterprise funds and included physical verification of selected assets and testing of inventory certifications. Overall, 18.5% of assets (by count) and 33.1% (by value) were tested.
The engagement focused on determining whether internal controls were adequate and whether inventory certifications were accurate, complete, and properly supported.
Based on the procedures performed, Internal Audit concluded that departments generally maintain adequate internal controls to accurately record, account for, and track capital assets. Substantive testing identified an overall exception rate of 3.0%. Where opportunities for improvement were identified, we have included recommendations to strengthen internal processes.
Action Requested: Accept and instruct the Clerk of the Board to file the report summarizing the countywide internal control review of the capital asset inventory certification process for the Fiscal Year Ended June 30, 2024. (No Fiscal Impact; Discretionary)
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.