Internal Audit
The purpose of the District’s internal audit function is to strengthen BART’s ability to create, protect, and sustain value by providing independent, risk-based, and objective assurance, advice, insight, and foresight. Internal audits focus on management controls, risk mitigation, process improvements/ efficiencies, capital project change order reviews, and contractor rate reviews. Internal Audit also provides advisory services to BART staff, coordinates the evaluation of potential conflicts of interest concerning BART staff and its contractors, and ensures that management provides timely responses to recommendations made by the Office of the Inspector General (OIG).
Through the execution of its professional responsibilities, Internal Audit enhances BART’s:
- Achievement of its objectives
- Governance, risk management, and control processes
- Decision-making and oversight
- Reputation and credibility with its stakeholders
- Ability to serve the public interest
Internal Audit, external auditors, and BART’s OIG differ in purpose, scope, and reporting lines. Internal Audit reports administratively to the Director of Performance and Audit but has unrestricted access to the General Manager, the Audit Committee, and the Board of Directors. External audits are conducted by an independent third-parties providing stakeholders and the general public assurance of BART’s financial statements and financial position. The OIG reports to the California Legislature, and its objective is to identify fraud and waste and opportunities for efficiencies within the District. Internal Audit and the OIG meet periodically to ensure that there is no duplication of effort regarding planned audits and reviews.
Internal Audit Charter
The primary purpose of the District’s Internal Audit Charter is to define the scope, authority, and responsibilities of the internal audit function within BART. It serves as the formal document that outlines the internal audit function’s mandate, including its organizational position, reporting relationships, types of services offered, and other key specifications. Essentially, the charter establishes the framework for the BART Internal Audit activities and ensures its independence and objectivity.
Activities Report
The annual Internal Audit Activities Report summarizes the end-of-year status of the audit plan and the Internal Audit team’s activities. The report presents capital reviews, operational/performance audits, advisory services, status updates on management action plans from past audits, and follow-ups to audits from previous years, some of which were closed during the noted fiscal year.