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HomeMy WebLinkAbout02-10-2021 Audit Ad Hoc Committee Meeting Complete Agenda Packet ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which temporarily suspend portions of the Brown Act which addresses the conduct of public meetings. The General Manager and the Chairman of the Board of Directors have determined that due to the size of the Orange County Sanitation District’s Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. The Audit Ad Hoc Committee meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx You may submit your comments and questions in writing for the Audit Ad Hoc Committee’s consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 4:00 p.m. on Tuesday, February 9, 2021. You may also submit comments and questions for the Audit Ad Hoc Committee’s consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Audit Ad Hoc Committee and may be read into the record or compiled as part of the record. Thank you. February 3, 2021 NOTICE OF SPECIAL MEETING AUDIT AD HOC COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, February 10, 2021 – 4:00 P.M. ACCESSIBILITY FOR THE GENERAL PUBLIC Due to the spread of COVID-19, the Orange County Sanitation District will be holding all upcoming Board and Committee meetings by teleconferencing and Internet accessibility. This meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx A special meeting of the Audit Ad Hoc Committee of the Orange County Sanitation District will be held in the manner indicated herein on Wednesday, February 10, 2021 at 4:00 p.m. ROLL CALL AUDIT AD HOC COMMITTEE Meeting Date: February 10, 2021 Time: 4:00 p.m. Adjourn: COMMITTEE MEMBERS (4) Glenn Parker, Chair (Brea) Anthony Kuo, Vice-Chair (Irvine) Marshall Goodman (La Palma) Patrick Harper (Fountain Valley) OTHERS Brad Hogin, General Counsel STAFF Jim Herberg, General Manager Lorenzo Tyner, Assistant General Manager Wally Ritchie, Controller Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 1/27/2021 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Stephen Faessel Jose Diaz Brea Glenn Parker Steven Vargas Buena Park Art Brown Connor Traut Cypress Stacy Berry Anne Hertz Fountain Valley Patrick Harper Glenn Grandis Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O’Neill Huntington Beach Kim Carr Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Jose Medrano La Palma Marshall Goodman Nitesh Patel Los Alamitos Mark A. Chirco Ron Bates Newport Beach Brad Avery Joy Brenner Orange Mark Murphy Kim Nichols Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Chad Zimmerman Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Sergio Contreras Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins County Areas Board of Supervisors Doug Chaffee Donald P. Wagner AUDIT AD HOC COMMITTEE Special Meeting Agenda Wednesday, February 10, 2021 - 4:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District’s website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting. Please contact the Clerk of the Board's office at (714) 593-7433 to request the audio file. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsd.com at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg, jherberg@ocsd.com / (714) 593-7300 Asst. General Manager: Lorenzo Tyner, ltyner@ocsd.com / (714) 593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsd.com / (714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsd.com / (714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsd.com / (714) 593-7365 Director of Environmental Services: Lan Wiborg, lwiborg@ocsd.com / (714) 593-7450 AUDIT AD HOC COMMITTEE Special Meeting Agenda Wednesday, February 10, 2021 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. The Audit Ad Hoc Committee meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx. You may submit your comments and questions in writing for the Audit Ad Hoc Committee’s consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 4:00 p.m. on February 9, 2021. You may also submit comments and questions for the Audit Ad Hoc Committee’s consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Audit Ad Hoc Committee and may be read into the record or compiled as part of the record. REPORTS: The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: None. NON-CONSENT: 1.2021-1465INTERNAL AUDIT UPDATE RECOMMENDATION: Information Item. Originator:Lorenzo Tyner Agenda ReportAttachments: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Adjourn the Audit Ad Hoc Committee meeting. Page 1 of 1 AUDIT AD HOC COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1465 Agenda Date:2/10/2021 Agenda Item No:1. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INTERNAL AUDIT UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND The Orange County Sanitation District (Sanitation District)selected the audit firm of Eide Bailly LLP to provide audits of various Sanitation District programs and processes and as selected by the Audit Ad Hoc Committee.Most recently,the Audit Ad Hoc Committee selected the permit fee collection process and the Cyber Security program areas for audit.However,as result of COVID-19,the auditors were directed to focus its efforts on Cyber Security at this time.The auditors will provide an update of those efforts.Additionally,staff and the auditors will present potential topics for future audit selection. ADDITIONAL INFORMATION Potential Audit Areas: 1)Construction Contract Compliance Audit contracts related to four (more or less)construction projects to determine if they were executed successfully in several areas,including project cost and timeliness,accuracy of invoice payments,retention release,and administrative requirements such as insurance and bonding. Validate that appropriate checks and balances exist between Engineering and Contracts staff to ensure proper payment to correct vendors for completed work. 2)Sole Source Contracts Review the Sanitation District’s purchasing policies and procedures as they relate to the procurement of sole source products and services,including a walkthrough to determine that the proper procedures were being followed as designed to ensure that sole source contracts are properly authorized and appropriate. Orange County Sanitation District Printed on 2/3/2021Page 1 of 2 powered by Legistar™ File #:2021-1465 Agenda Date:2/10/2021 Agenda Item No:1. Selected sole source contracts and test projects for key internal controls related to the authorization of sole source contracts,including approvals for sole source request forms, minutes,and justification letters.Test that the Sanitation District has established valid justification for selecting sole source vendors in accordance with the purchasing policies and procedures in addition to reviewing sole source vendor service agreements and invoices. 3)General Manager Approved Purchases The General Manager has the authority to approve purchases over $50,000.These purchases are reported to the Board on a quarterly basis through a report to the Administration Committee.Review purchasing process to ensure that appropriate documentation is completed, and protocols are followed. RELEVANT STANDARDS ·Conduct audits to determine if an entity’s operations are being conducted in an economical and efficient manner ·Conduct audits to establish whether specific government programs are effective in meeting their stated goals and objectives ·Conduct audits to determine if an entity is following policies and procedures in conducting operations ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 2/3/2021Page 2 of 2 powered by Legistar™