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.
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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
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