Report 2022-120 Recommendation 11 Responses

Report 2022-120: Orange County Power Authority: Increased Board Oversight Is Needed to Improve Its Operations (Release Date: February 2023)

Recommendation #11 To: Orange County Power Authority

To provide meaningful oversight of OCPA's efforts to monitor, measure, report, and control the market and credit risks that it is exposed to in its normal course of business, OCPA's board should amend its risk management policy to alter the membership of the risk oversight committee to include a limited subset of OCPA board members that does not violate open meeting act requirements.

6-Month Agency Response

During 3-15-2023 Board meeting this recommendation was discussed by the Board and concerns regarding the Brown act were raised.

At the 4-19-2023 Board meeting item 9.3 was presented to the Board. The item discusses quarterly meetings and the responsibilities of the Risk Oversight Committee.

Although the Board decided not to add board members to the committee it agreed with staff and legal counsel's recommendation to invite both Board Chair and VC to future meetings as observers.

Orange County Power Authority Board Regular Meeting March 15, 2023 (vimeo.com). The conversation regarding the ROC begins at 1:15.37.

California State Auditor's Assessment of 6-Month Status: Resolved

In April 2023, the CEO reported to the OCPA board that, as an alternative to our recommendation, beginning in April 2023 he initiated a practice of inviting the chair and vice chair of the OCPA board to observe risk oversight committee meetings. According to OCPA, its legal counsel determined that including a limited subset of OCPA board members on the risk oversight committee would make its meetings subject to open meeting act requirements. Based on its legal counsel's determination we consider this recommendation to be resolved.

60-Day Agency Response

OCPA has developed an Improvement Plan to address each recommendation. In accordance with the Improvement Plan, this recommendation will be completed as of May 2023.

California State Auditor's Assessment of 60-Day Status: Pending

OCPA has not yet submitted evidence demonstrating it has implemented this recommendation.

All Recommendations in 2022-120

Agency responses received are posted verbatim.