Report 2022-120 Recommendation 12 Responses

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

Recommendation #12 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 establish a schedule for the risk oversight committee to provide periodic reports on its activities to the full board.

6-Month Agency Response

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.

The ROC met on April 3, 2023. An update of the meeting was provide to the Board in its April Board meeting. https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:d9852426-f2d8-4407-b327-fed723495695

The ROC met again on July 20th with the Chair and Vice Chair in attendance. We will report on this ROC meeting during the September Board meeting (the Board is on summer recess for August).

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

OCPA's policy requires its risk oversight committee to, at least quarterly, both meet and report to the board about its meetings, deliberations, and any areas of concern. OCPA provided evidence that on a quarterly basis since April 2023 staff have reported on the committee's meetings to the board. In addition, OCPA indicates that the board chair and vice chair have been invited to observe the risk oversight committee meetings. As such, although the board has not developed an additional schedule for risk oversight committee meetings, if the risk oversight committee does not meet there are now multiple means by which this fact should become apparent to the board. Therefore, we deem this recommendation to be fully implemented.

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.