CalHFA audit committee to recommend adding enterprise risk reporting to charter

Rebecca Franklin, interim chief deputy director and director of enterprise management and compliance, presented staff-recommended amendments to the CalHFA Audit Committee charter to add an enterprise risk reporting function and expand the committee's scope from audit-only to audit and risk oversight.

"We're proposing to expand the scope of the committee from just an audit perspective to an audit and risk perspective," Franklin said, explaining the change would bring strategic and operational risk topics'including credit, market, compliance, technology, legal and business continuity'into the committee's regular reporting.

Committee members broadly supported the change but said the expanded scope will likely require more frequent meetings. Chair Delilah Sotelo said the committee should meet at least quarterly to provide robust, dynamic oversight; Dr. Fred White and departing Director Tina Johnson Hall agreed the added responsibilities warrant closer cadence.

Staff and legal advised that because the charter amendment was not agendized as a formal action item, the audit committee would report its agreement in the chair's report to the full board and the board would take formal action. Mark (board chair) confirmed an advisory committee's role is to recommend changes to the board.

Rebecca Franklin said staff will present the framework and periodic reporting cadence as the enterprise risk work is refined; she offered to attend the board meeting to explain the changes when the item is considered.

The committee did not take a formal binding vote on the charter at this meeting; members agreed to recommend the amendment to the board for consideration and formal action.