High-Speed Rail board approves FY25-26 internal audit plan; audit office reports partial compliance fixes

The California High-Speed Rail Authority board on July 10 approved the authority's fiscal year 2025'26 internal audit plan and acknowledged the audit office's internal quality assessment, the board chair said. Paula Rivera, the authority's chief auditor, presented the plan and the results of an internal assessment required by auditing standards. Rivera told the board she leads a 13-person audit office and that the FY25'26 audit plan includes pre-award reviews, contract compliance (incurred cost) audits, performance audits and staff training. "We are a team of 13," Rivera said. She described pre-award reviews as typically scheduled for about three weeks per subconsultant and said the office aims to cover 90% of proposed costs in those pre-award reviews. Rivera said the internal peer review covering June 2024 through May 2025 found no material noncompliance with auditing standards but did identify two instances of partial compliance related to documentation. "There were no instances of material noncompliance with the standards," she said. The office reported it updated processes and procedures to address the two findings. The board voted to approve the audit plan and to acknowledge receipt of the internal quality assessment. The vote was taken by roll call; Chair Richards and several directors voted yes, and Director Williams was recorded as absent. The audit office told the board it will complete two interim contract compliance audits this summer, finish a Merced-to-Madera final report in August and issue a draft civil work certification audit this month. Rivera said the office has three teams and built the FY25'26 plan around existing staffing levels and that resources are adequate for the year. Asked about timing, Rivera said pre-award reviews typically take three to six weeks depending on the number of subconsultants and that the office schedules work so ongoing audits reach natural stopping points before pre-award reviews begin. Board members asked for more detail on staffing and timelines; Rivera said the plan was based on current staff but that the number of subconsultants in incurred-cost audits will be determined by a risk assessment. The board record shows a motion and second to approve the plan; the chair announced the motion carried by roll call.