Approve an updated Internal Audit Charter and receive Internal Audit's External Quality Assessment (Peer Review) report. (No general fund impact) (Haynes/Eldredge)

On July 28, 2015, the Board of Supervisors approved an updated Internal Audit Charter to align with the formation of the Financial Oversight Committee.  Since 2015, the Internal Audit Charter has not been updated.  The Yolo County Internal Audit division recently had an external quality assessment (peer review) in which the peer review team (Napa County Internal Audit) recommended that the Chief Audit Executive (Internal Audit Manager) update the internal audit charter and add a section on the Quality Assurance Improvement Program and that the charter be reviewed and presented once every five years to verify conformance with auditing standards.  Standard 1000 - Purpose, Authority, and Responsibility requires the "Chief Audit Executive to periodically review the internal audit charter and present it to senior management and the Board for approval.  Final approval of the internal audit charter resides with the Board."  The Yolo County Audit Subcommittee and the Chief Audit Executive have worked collaboratively to revamp the Internal Audit Charter to agree with the Institute of Internal Auditors model of an internal audit activity charter, as illustrated in the attached final document. 

The International Standards for the Professional Practice of Internal Auditing (Standards) promulgated by the Institute of Internal Auditors require that the internal audit activity undergo a comprehensive external quality assessment at least once every five years.  The assessment evaluates the quality of the internal audit activity and recommends areas for improvements.  The Napa County Internal Audit performed the External Quality Assessment of Yolo County Internal Audit for the fiscal year ended June 30, 2022 and concluded that the internal audit activity generally conforms with the Standards and Code of Ethics (clean report).

The charter was submitted for review and approval by the Audit Subcommittee and Financial Oversight Committee and their comments were taken into account in the final document attached.  Internal Audit's External Quality Assessment (Peer Review) report was accepted by both committees in a regular session meeting.