Report 2022-120 Recommendation 13 Responses

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

Recommendation #13 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 direct the risk oversight committee to fulfill the functions defined in OCPA's risk management policy.

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.

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

OCPA provided evidence that since April 2023 staff have reported to the board on a quarterly basis about the risk oversight committee's activities. In addition, OCPA indicates that the board chair and vice chair have been invited to each risk oversight committee meeting. These represent multiple means by which the board can monitor whether the risk oversight committee is performing its assigned functions. Therefore, we deem the 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.