Riverside County Municipal Code Ch. 4.100 Authority of the Auditor-Controller Through the Assurance and Advisory…

The board of supervisors finds the necessity to reaffirm and codify the authority of the county auditor-controller to audit the accounts and records of any county department, office, board, institution, or district whose funds are maintained in the county treasury. This chapter builds upon the principles of Board Resolution No. 83-338 and relevant provisions of the Government Code, including Sections 26881, 26883, 26920, 25250, 26909, 29741 and 1236, which collectively establish the authority, standards, and responsibilities of the county auditor-controller in conducting audits and reviews.

(Ord. No. 1008, § 1, 5-12-2026)

The following audit entities shall be subject to audit as indicated:

A. Pursuant to government code section 26883, the auditor-controller is authorized to audit the accounts and records of any department, office, board, or institution under the control of the board of supervisors, and of any district whose funds are kept in the county treasury. Audit reports shall be filed with the board of supervisors, and if fraud or gross negligence is disclosed, with the district attorney.

B. Pursuant to Government Code Section 26881, the auditor-controller is the chief accounting officer of the county and shall exercise supervision over the accounting forms and the ability to review the internal controls of all county offices and institutions.

C. Pursuant to Government Code Section 26920, the auditor-controller shall perform quarterly reviews and annual audits of the treasurer's statement of assets in the county treasury.

D. Pursuant to Government Code Section 25250, the financial accounts and records of officers having responsibility for the care, management, collection, disbursement of money belonging to the county, or money received or disbursed by them under authority of law shall be audited biennially.

E. Pursuant to Government Code Section 26909, the accounts and records of any special district that is not otherwise audited as required by that section shall be audited either by the auditor-controller or by a certified public accountant or public accountant contracted for by the auditor-controller.

F. Pursuant to California Government Code Section 29741, the auditor-controller shall audit and allow or reject claims in lieu of, and with the same effect as, allowance or rejection by the board of supervisors in the following cases:

(i) Expenditures authorized by purchase orders issued by the purchasing agent or other authorized officer;

(ii) Expenditures authorized by contract, ordinance, resolution, or order of the board of supervisors;

(iii) Expenditures for public aid or assistance authorized by statute and ordered by the board of supervisors;

(iv) Expenditures for charges incurred by the county pursuant to Chapter 3 (commencing with Section 29600) of Division 3 of Title 3 of the Government Code; and

(v) Refunds of unearned business license, permit, or similar fees authorized by the board of supervisors.

G. Pursuant to Board Resolution No. 83-338, the revolving fund and fixed assets of any officer accountable for such resources shall be audited upon transfer of such resources to a new officer or as otherwise deemed appropriate by the auditor-controller.

H. Pursuant to Board Resolution No. 83-338, the financial, operational, and management elements of any county department, office, board, institution or function may be audited as deemed necessary by the auditor-controller.

I. The auditor-controller shall audit any areas of county operations specifically requested by the board of supervisors to be audited.

(Ord. No. 1008, § 2, 5-12-2026)

The auditor-controller and the internal audit staff shall have full, unrestricted access to any and all county records, physical properties and personnel needed to carry out any audit engagement as authorized by Government Code 26883. All county employees are requested to assist the audit division in fulfilling its roles and responsibilities.

(Ord. No. 1008, § 3, 5-12-2026)

Audit of entities specified in section 4.100.020 above shall include any single category or combination of categories of audit scope listed below, as determined by the auditor-controller:

A. Reliability and integrity of financial and operating information.

B. Compliance with policies, plans, procedures, laws and regulations.

C. Safeguarding of county assets.

D. Economical and efficient use of county resources.

E. Accomplishment of established objectives and goals for operations or progress.

(Ord. No. 1008, § 4, 5-12-2026)

Pursuant to Government Code Section 1236, the auditor-controller shall conduct a broad, comprehensive program of internal auditing in conformance with the "Global Internal Audit Standards," issued by the Institute of Internal Auditors.

In addition to the "Standards" addressed above, the internal audit function will operate, where appropriate, under the provisions of the Generally Accepted Auditing Standards published by the American Institute of Certified Public Accountants and the provisions of the Standards for Audit of Governmental Organizations, Programs, Activities and Functions published by the Comptroller General of the United States.

(Ord. No. 1008, § 5, 5-12-2026)

In addition to financial and compliance audits, the auditor-controller is authorized to conduct expanded internal audit functions, including but not limited to continuous auditing, control self-assessments, proactive risk assessment meetings with stakeholders, operational audits, performance audits, and monitoring programs designed to evaluate and strengthen the county's internal control environment, governance practices, and overall efficiency.

(Ord. No. 1008, § 6, 5-12-2026)

The auditor-controller shall administer the county's Fraud, Waste and Abuse (FWA) Prevention Program, originally established by the board of supervisors on August 11, 2009 (Agenda Item 3.19). Pursuant to California Assembly Bill 2001 and California Government Code Section 53087.6, the Auditor-Controller is authorized to maintain a whistle-blower hotline to receive reports of fraud, waste, abuse or improper governmental activity. Under Government Code Section 53087.6(a)(1), this includes receiving calls from persons with information regarding such matters, and, under subdivision (e)(1), the auditor-controller "may conduct an investigative audit of the matter."

Administration of the FWA Prevention Program shall be conducted consistent with Board of Supervisors Policy C-35 (Standards of Ethical Conduct to Address Fraud, Waste and Abuse), which establishes countywide ethical standards, reporting obligations, and full cooperation by county employees and officers in investigations of alleged fraud, waste, or abuse is expected.

Accordingly, pursuant to Government Code Section 53087.6, the Auditor-Controller or its designee, is authorized to conduct investigative audits of reported fraud, waste, abuse, or improper governmental activity. Through this chapter, subject to applicable law, the auditor-controller is granted authority to access the information necessary to carry out such investigative audits. Confidentiality protections apply, including that the identity of the person making the disclosure and the subject employees or contractors shall be kept confidential except as permitted in Government Code Section 53087.6(e)(2)—(3).

The objectives of the FWA Program are to eliminate or mitigate fraud, waste and abuse, to safeguard county resources, and to promote integrity, accountability and transparency in county operations. Reporting incidents, investigative conclusions and recommended remedial actions shall be done in accordance with the county's FWA program procedures and consistent with applicable law.

(Ord. No. 1008, § 7, 5-12-2026)

Pursuant to Board Resolution No. 2026-027, the auditor-controller's office contract auditing unit is responsible for auditing county contracts with vendors providing goods and services to the county, and services provided on behalf of the county. The purpose of the unit is to ensure compliance with contract terms, fiscal accountability, and effective performance. The auditor-controller and staff engaged in contract auditing shall have authority to access records, financial data, and information relevant to the administration of county contracts.

(Ord. No. 1008, § 8, 5-12-2026)

The board of supervisors of the County of Riverside formally acknowledges the audit committee bylaws as the governing document that defines the purpose, authority, and responsibilities of the audit committee. The bylaws affirms the county's commitment to transparency, accountability, and sound financial oversight. Through this acknowledgement, the board recognizes that the audit committee plays a vital role in the county's overall governance and risk management process. By overseeing the results of internal audits of county operations, external financial audits, and results of other government agencies audits, the committee helps safeguard public resources and maintain public trust.

(Ord. No. 1008, § 9, 5-12-2026)

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

(Ord. No. 1008, § 10, 5-12-2026)

Audit findings and recommendations shall be provided to the head of the audited entity, who shall respond in writing within thirty (30) calendar days. Audit reports shall be distributed to the board of supervisors, the executive office, the grand jury and, in instances of fraud, to the district attorney, except where restricted by statute or as otherwise required by law.

(Ord. No. 1008, § 11, 5-12-2026)

The auditor-controller shall coordinate, where appropriate, with the county executive office and other oversight bodies to avoid duplication and ensure efficient use of resources in carrying out audit and monitoring responsibilities.

(Ord. No. 1008, § 12, 5-12-2026)