COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

September 20, 2007

BOARD MEETING DATE:

October 2, 2007

SPECIAL NOTICE:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

John L. Maltbie, County Manager

SUBJECT:

2006-07 Grand Jury Response

Recommendation

Accept this report containing the County’s responses to the following 2006-07 Grand Jury report: Audit and Review of County Financial Statements.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

This activity contributes to the goal by ensuring that all Grand Jury findings and recommendations are thoroughly reviewed by the appropriate County departments and that, when appropriate, process improvements are made to improve the quality and efficiency of services provided to the public and other agencies.

Discussion

The County is mandated to respond to the Grand Jury within 90 days from the date that reports are filed with the County Clerk and Elected Officials are mandated to respond within 60 days. To that end, attached is the County’s response to the Grand Jury report regarding the Audit and Review of County Financial Statements, issued on July 11, 2007.

Audit and Review of County Financial Statements

Findings:

Staff is in general agreement with the Grand Jury’s findings.

Recommendations:

The Grand Jury recommends that the San Mateo County Board of Supervisors:

1. Establish an Audit Committee to advise the Board of Supervisors regarding the selection of the San Mateo County’s independent auditors and regarding a review of the County’s financial statement auditing process. The Audit Committee should be composed solely of members of the Board of Supervisors.

Response: Concur. The Board created and appointed two Board members to an Audit/Management Review Committee in October 2005. On April 10, 2007, the Board established five standing committees to streamline committee assignments. The standing committees, each consisting of two Board members, subsumed numerous, sometimes duplicative and often narrowly focused subcommittees to improve the County’s efficiency and effectiveness in developing and setting policy. One of the Board’s standing committees is the Finance and Operations Committee, which has been meeting regularly since July. A resolution with proposed changes to the committee structure will be brought to the Board in December, which will include a change indicating that the Finance and Operations Committee will serve as the County’s Audit Committee.

2. Establish an Audit Committee pursuant to a resolution containing substantially the matters set forth in Exhibit A to this report.

Response: Concur. A resolution with proposed changes to the Board committee structure will be brought to the Board in December, which will include a change indicating that the Finance and Operations Committee will serve as the County’s Audit Committee. If approved, the Committee will consider the scope of activities described in Exhibit A at a future meeting.