The scope of work of the Audit Department is to determine whether the District's network of risk management, internal control and governance processes is adequate and functioning in a manner to ensure that:

• Risks are appropriately identified, managed and monitored.
  
  
• Significant financial, managerial and operating information is accurate, reliable and timely.
  
  
• Employees’ actions are in compliance with policies, standards, procedures and applicable laws and regulations.
  
  
• Resources are acquired economically, used efficiently and adequately protected.
  
  
• Programs, plans and objectives are achieved.
  
  
• Quality and continuous improvement are fostered in the organization’s control processes.
  
  
• Significant legislative or regulatory issues impacting the organization are recognized and addressed appropriately.

Opportunities for improving management internal control, efficiency and the organization’s image may be identified during audits. They are communicated to the appropriate level of management.

ACCOUNTABILITY

The General Auditor reports to the Board of Directors and is accountable to the Executive Committee to:

• Provide an assessment on the adequacy and effectiveness of the organization’s processes for controlling its activities and managing its risks.
  
  
• Periodically report significant issues related to the processes for controlling the activities of the District, including potential improvements to those processes and to provide information concerning such issues through to resolution.
  
  
• Coordinate with other control and monitoring functions (risk management, legal, finance, ethics, security, and environmental).

For comments or questions please contact General Auditor
Gerald C. Riss

RESPONSIBILITIES

The Audit Department shall carry out the following responsibilities:

• Develop and present an annual audit plan to the Executive Committee for review and approval. This plan should be developed utilizing a risk-based methodology and should include risks or internal control concerns identified by the Board of Directors or Management.
  
  
• Report periodically to the Executive Committee and Management the status of the current year’s audit plan and the sufficiency of department resources.
  
  
• Issue an opinion on internal controls over financial reporting on an annual basis.
  
  
• Submit audit reports to the Executive Committee and Management communicating the auditor’s opinion regarding the internal control structure, identifying significant control issues and providing related recommendations.
  
  
• Evaluate the adequacy and timeliness of Management’s responses to, and the corrective action taken on, all significant control issues noted in such reports. Conduct follow up reviews as necessary and periodically report to the Executive Committee the status of Management's progress.
  
  
• Ensure the selection, development and supervision of competent and professional audit staff.
  
  
• Meet or exceed the International Standards for the Professional Practice of Internal Auditing set forth by The Institute of Internal Auditors. Comply with Metropolitan policies and procedures, the California Government Code, and Government Auditing Standards (GAGAS).
  
  
• Perform a Quality Assurance Program by which the General Auditor evaluates internal auditing activities against professional standards.  Obtain external quality assurance reviews.
  
  
• Perform consulting services to assist Metropolitan in meeting its objectives. Examples may include facilitation, process design, training, and advisory services.
  
  
• Evaluate additions or changes in internal control processes coincident with their development and implementation.
  
  
• Keep the Executive Committee informed of emerging trends and best practices in internal auditing.
  
  
• Assist in the investigation of significant suspected fraudulent activities within the organization. Assure reporting to the Executive Committee on the results, as appropriate.
  
  
• Coordinate with external auditors to minimize duplication of effort and to ensure that issues raised, as a result of their review, are appropriately addressed.
  
  
• This Charter shall be reviewed at least annually by the Executive Committee and the Board of Directors.

AUTHORITY

The General Auditor and Audit Department staff members are authorized to:

• Have unrestricted access to all functions, records, property, and personnel, subject to the requirements of safekeeping, confidentiality, and applicable process.
  
  
• Have full and free access to the Executive Committee, subject to applicable law.
  
  
• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.
  
  
• Obtain the necessary assistance of personnel in units of the organization where they perform audits, as well as other specialized services from within or outside the organization

The General Auditor and Audit Department staff members are not authorized to:

• Perform any operational duties for the organization.
  
  
• Initiate or approve accounting transactions external to the Internal Audit Department.
  
  
• Direct the activities of any organization employee not employed by the Internal Audit Department, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.