Article 1 – General Provisions

Chapter 4.04
INTERNAL AUDIT*

Sections:

4.04.010    Status – Purpose.

4.04.020    Authority – Generally.

4.04.030    Auditor – Duties/responsibilities.

4.04.040    Responsibilities of agency under review.

4.04.050    Scheduling and planning of audits.

4.04.060    Audit reports.

*    Editor’s Note: Prior ordinance history: Res. 40-1980; Res. 237-1981.

4.04.010 Status – Purpose.

The internal audit is an independent appraisal activity for the review of accounting operations within an organization. The objective of the internal audit is to assist management in the effective discharge of its accounting duties.

(Res. 180-1984 (part), 1984)

4.04.020 Authority – Generally.

The internal auditor is authorized to perform analytical reviews of internal controls and accounting records with the intent of evaluating the security of county assets and the accuracy/reliability of financial reports.

(Res. 180-1984 (part), 1984)

4.04.030 Auditor – Duties/responsibilities.

(a)    The internal auditor is authorized to examine the books and records of any office, department, political subdivision or organization which receives monetary appropriations from the board of county commissioners.

(b)    The internal auditor shall have access to all of the records, properties, and personnel relevant to the subject under review.

(c)    The internal auditor is charged with responsibilities as follows:

(1)    To conduct an entrance interview with the department’s head or elected official, at which time the scope of the interview shall be explained;

(2)    To appraise the adequacy and completeness of internal controls;

(3)    To confirm compliance with the legislative decisions of the board of county commissioners, state laws, and the state Constitution;

(4)    To discuss findings and recommendations, during the examination with the management of the agency under review;

(5)    To conduct an exit meeting with the auditee, the Kitsap County board of commissioners, and the director of internal management, during which a preliminary draft of the audit report is presented and discussed;

(6)    To submit an audit report on each examination to the board of county commissioners, the director of internal management, and to the management of the agency under review. Each audit report will include, but will not be limited to, the following:

(A)    Statement of scope and methods,

(B)    Identification of conditions which need improvement as noted during the examination;

(C)    Presentation of problem solutions and recommendations.

(d)    The internal auditor will provide assistance, as necessary, towards implementation of the recommendations; however, the internal auditor will not develop and install procedures or engage in any activity which would reasonably be construed to impair his/her objectivity during subsequent examinations.

(Res. 180-1984 (part), 1984)

4.04.040 Responsibilities of agency under review.

The management of the agency under review is charged with responsibilities as follows:

(1)    Provide for the internal auditor access to all records, properties, and personnel relevant to the subject under review;

(2)    Participate in preaudit, interim-audit, and exit-audit interviews with the internal auditor, and to objectively consider each proposal as presented;

(3)    Act upon each audit recommendation within ten working days of the exit-audit interview. Proposals will be acted upon by delivery of written response to the board, stating either a plan on implementation or the rationale for reluctance to implement.

(Res. 180-1984 (part), 1984)

4.04.050 Scheduling and planning of audits.

(a)    Requests for audits may be submitted in writing to the Kitsap County board of commissioners by any elected official or department head.

(b)    The internal auditor will submit annually to the board of county commissioners the department’s audit work schedule. The internal auditor will also submit all significant interim changes for approval and information. This schedule will be distributed to the heads of the departments affected. The internal auditor will submit activity reports to the county commissioners annually.

(Res. 180-1984 (part), 1984)

4.04.060 Audit reports.

(a)    Each audit report, after being acted upon by the management of the agency under review, will be filed as a matter of public record with the recording and filing department of the auditor’s office.

(b)    Copies of the complete report will be available to the public at the cost of its reproduction.

(Res. 180-1984 (part), 1984)