Metropolitan Water District of Southern California
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Audit Department

Audit Department Charter

The Mission of the Audit Department of The Metropolitan Water District of Southern California is to provide independent, professional and objective assurance and consulting services designed to add value and improve Metropolitan's operations.  Metropolitan's Audit Department helps the District accomplish objectives by using a proactive, systematic approach to evaluate and improve the effectiveness of risk management, control and governance processes.

General Auditor Reports

SCOPE OF WORK

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 Audit 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 Audit 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 Audit 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 Audit 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 Audit 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 Audit 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 Audit 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 Audit 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 Audit 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.

General Auditor Monthly Reports
2014 2013 2012
December December
November November
October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
General Auditor Business Plans
FY 2014/2015
FY 2012/2013
Business Plan
External Audit Reports
KPMG Single Audit Reports for Fiscal Year ended June 30, 2013
KPMG Basic Financial Statements for years ended June 30, 2013 and 2012

KPMG Financial Statement of the Six Agency Committee for years ended June 30, 2013 and 2012

KPMG Statement of the Colorado River Authority for years ended June 30, 2013 and 2012


Click here to view other archived documents.

 


Page updated: December 3, 2014