FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Approve updates to Actuary and Audit Policy No. 004 (Audit Committee Charter)
RECOMMENDATION:
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Approve and adopt updates to Actuary and Audit Policy No. 004 (Audit Committee Charter).
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BACKGROUND:
Actuary and Audit Policy No. 004 establishes an Audit Committee to advise the Board on audit matters, and its recommendations are subject to final approval by the Board.
Actuary and Audit Policy No. 004 (Audit Committee Charter) was last reviewed in 2018.
Pursuant to General Policy No. 005, staff has conducted a review of Actuary and Audit Policy No. 004 and has found it both generally consistent with current practice and appropriate for SBCERA's program. Staff is recommending moderate changes to include cybersecurity within the Charter, which has been the past practice of SBCERA. Staff also recommends a change to the process of transmitting audit reports and findings to the full Board, rather than be at the discretion of the Committee Chair. This has also been our practice for at least the last four years.
COMMITTEE REVIEW:
This item was reviewed by the Audit Committee at its June 16, 2022, meeting, and recommended Board approval with a 2-1 vote. Trustee Basle was absent from the meeting.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Actuary and Audit Policy No. 004 (Audit Committee Charter) - Redline