COUNTY AUDIT DEPARTMENT   

   

REPORT # 337 

TRIENNIAL EXTERNAL QUALITY ASSESSMENT    

 

NOVEMBER 9, 2017  

November 9, 2017 The Honorable Stacy R. White, Chairman The Honorable Victor D. Crist The Honorable Ken Hagan The Honorable Al Higginbotham The Honorable Pat Kemp The Honorable Lesley “Les” Miller, Jr. The Honorable Sandra L. Murman Dear Chairman White and Commissioners: Attached are the results of the recent Quality Assurance Review for the County Audit Department. This triennial review process assesses the activities of the County Audit Department based on the requirements set forth in the International Standards for the Professional Practice of Internal

Auditing and Generally Accepted Government Auditing Standards (Red Book and Yellow Book, respectively). The Quality Assurance Review was conducted by a peer review team through the Association of Local Government Auditors. The review team has concluded that the County Audit Department’s activities are in conformance with all applicable standards and requirements. I am available to address any questions or comments you may have regarding this process. Please do not hesitate to contact me. Sincerely, Heidi Pinner, CIA, CFE, CISA, CRMA Director of County Audit CC: Pat Frank, Clerk of Court and Comptroller

... ,. '

of the

External Quality Control Review

Hillsborough County Clerk of the Court and Comptroller County Audit Department

conducted in accordance with guidelines of the

Association of Local Government Auditors for the period September l, 2014 through August 31, 2017

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, \ It\ J Association of Local Government Auditors

~' October 26, 2017

Heidi Pinner, Director of County Audit 601 E Kennedy Blvd Tampa, FL 33601

Dear Ms. Pinner,

We have completed a peer review of the Hillsborough County Clerk of the Court and Comptroller, County Audit Department for the period September 1, 2014 through August 31, 2017. In conducting our review, we followed the standards and guidelines contained in the Peer Review Guide for Assessing Conformance with International Standards for the Professional Practice of Internal Auditing by the Association of Local Government Auditors (ALGA).

We reviewed the internal quality control system of your audit organization and conducted tests in order to determine if your internal quality control system operated to provide reasonable assurance of conformance with the International Standards for the Professional Practice of Internal Auditing (the Standards) issued by the Institute of Internal Auditors as part of their Professional Practices Framework. Due to variances in individual performance and judgment, conformance does not imply adherence to standards in every case, but does imply adherence in most situations.

Based on the results of our review, it is our opinion that the Hillsborough County Clerk of the Court and Comptroller, County Audit Department internal quality control system was suitably designed and operating effectively to provide reasonable assurance of conformance with the Standards for assurance and consulting engagements during the September 1 , 2014 th rough August 31 , 2017.

w0;z~ ~ Kimberly L. Houston Tashonda V. Cobbs City of Corpus Christi Fulton County Schools

Yvette V. Suarez Los Angeles Metropolitan Transportation Authority

449 Lewis Hargett Circle. Suite 290. Lexington. KY 40503. Phone: (859) 276-0686. Fax : (859) 278-0507 webmaster@nasact.org • www.algaonline.org

of the

External Quality Control Review

Hillsborough County Clerk of the Court and Comptroller County Audit Department

Conducted in accordance with guidelines of the

Association of Local Government Auditors for the period September l, 2014 through August 31, 2017

, 1A11-0J,, Qr.

\ £ J Association of Local Government Auditors

~' October 26, 2017

Heidi Pinner, Director of County Audit 601 E Kennedy Blvd Tampa, FL 33601

Dear Ms. Pinner,

We have completed a peer review of the Hillsborough County Clerk of the Court and Comptroller, County Audit Department for the period of September 1, 2014 through August 31, 2017. In conducting our review, we followed the standards and guidelines contained in the Peer Review Guide published by the Association of Local Government Auditors (ALGA).

We reviewed the internal quality control system of your audit organization and conducted tests in order to determine whether your internal quality control system operated to provide reasonable assurance of compliance with Government Auditing Standards issued by the Comptroller General of the United States. Our procedures included:

• Reviewing the audit organization's written policies and procedures. • Reviewing internal monitoring procedures. • Reviewing a sample of audit and attestation engagements and working papers. • Reviewing documents related to independence, training, and development of auditing staff. • Interviewing auditing staff, management, and County Clerk to assess their understanding of, and

compliance with, relevant quality control policies and procedures.

Due to variances in individual performance and judgment, compliance does not imply adherence to standards in every case, but does imply adherence in most situations.

Based on the results of our review, it is our opinion that the Hillsborough County Clerk of the Court and Comptroller, County Audit Department internal quality control system was suitably designed and operating effectively to provide reasonable assurance of compliance with Government Auditing Standards for audits and attestation engagements during the September 1, 2014 through August 31, 2017.

We have prepared a separate letter offering suggestions to further strengthen your internal quality control system.

(if~~~~ City of Corpus Christi

Tashonda V. Cobbs Fulton County Schools ~ Los Angeles Metropolitan Transportation Authority

449 Lewis Hargett Circle. Suite 290. Lexington. KY 40503. Phone: (859) 276-0686. Fax: (859) 278-0507 webmaster@nasact.org • www.algaonl ine.org

Association of Local Government Auditors

October 26, 2017

Heidi Pinner, Director of County Audit 601 E Kennedy Blvd Tampa, FL 33601

Dear Ms. Pinner,

We have completed a peer review of the Hillsborough County Clerk of the Court and Comptroller, County Audit Department for the period September 1, 2014 through August 31 , 2017 and issued our report thereon dated October 26, 2017. We are issuing this companion letter to offer certain observations and suggestions stemming from our peer review.

We would like to mention some of the areas in which we believe your office excels : • Auditees are receptive to recommendations from audit reports and view working with the Audit

Department as a method to process improvement.

• Although the department is undergoing changes, they are moving in a positive direction. • Staff were professional , extremely flexible and accommodating during the peer review, and

demonstrate a drive to improve through their professional development.

We offer the following observations and suggestions to enhance your organization's demonstrated adherence to Government Auditing Standards: • GAGAS Standard 3.05 states "Except under the limited circumstances discussed in paragraphs 3.47

and 3.48, auditors should be independent from an entity during: a. any period of time that falls within the period covered by the subject matter of the audit"

During engagement review, we observed instances where independence statements were not included for all auditors with access to the audit project. To help ensure future compliance with the standard, we recommend all auditors complete a Conflict of Interest Statement Form .

• GAGAS Standard 3.08 states that "Auditors should apply the conceptual framework at the audit organization, audit and individual auditor levels to: a. identify threats to independence; b. evaluate the significance of the threats identified, both individually and in the aggregate; and c. apply safeguards as necessary to eliminate the threats or reduce them to an acceptable level."

To enhance documented compliance with the standard, we recommend that the Conflict of Interest Statement Form be updated to include reference to the Yellow Book standards.

We extend our thanks to you, your staff and the other county officials we met for the hospitality and cooperation extended to us during our review.

Sincerely,

~':tV4 Kimber-I~. Ho~/"'-City of Corpus Christi

~ eJt6 µ~ Tashonda V. Cobbs Fulton County Schools

Yvette V. Suarez Los Angeles County Metropolitan Transportation Authority

449 Lewis Hargett Circle, Suite 290. Lexington. KY 40503. Phone: (859) 276-0686, Fax: (859) 278-0507 webmaster@nasact.org • www.algaonline.org

November 6, 2017 Kimberly L. Houston Interim City Auditor City Auditor’s Office-City of Corpus Christi Tashonda V. Cobbs Auditor Fulton County Schools Yvette V. Suarez Senior Manager, Audit Los Angeles County Metropolitan Transportation Authority Dear Ms. Houston and Team, I would like to thank you, as well as the Association of Local Government Auditors, for the time and effort spent performing our quality assurance (peer) review for the period September 1, 2014 through August 31, 2017. I believe the County Audit Department has benefited throughout the preparation and participation in the review process. I appreciate the strengths noted by the review team and the suggestions offered to enhance the County Audit Department’s demonstrated compliance with Government Audit Standards. I concur with the suggestions included in the companion letter dated October 26, 2017. In response, the County Audit Department will:

• Continue to require all auditors assigned to an audit engagement to complete a conflict of interest statement.

• Review the two instances noted by the review team during the review period to ensure these circumstances are not repeated.

• Update the Conflict of Interest Statement used within the audit engagements to include specific reference to Yellow Book standards.

The diligence, professionalism and collaborative spirit demonstrated by the review team throughout the course of the review was greatly appreciated. I look forward to our continuing participation in the peer review program. Sincerely,

Heidi Pinner, CIA CISA CFE CRMA Director of County Audit