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Audit committee adopts internal‑charter updates, accepts KPMG external audit plan
Summary
The Compliance & Audit Committee approved amendments to the internal audit charter to align with new global standards and accepted KPMG's external audit plan for year ending 06/30/2026, which highlights management‑override risk and plans to use data analytics and AI tools in audit procedures.
Alex Bustamante, the chief compliance and audit officer, presented proposed amendments to the internal audit charter driven by new global internal audit standards and findings from the region’s recent external quality assessment. The amendments formalize existing practices, add an annual reporting commitment, clarify independence and reporting lines, and describe responsibilities for performance management of location audit directors.
KPMG partners presented their external audit plan for the fiscal year ending June 30, 2026. The auditors said the audit will focus on investments, medical center revenue recognition and patient accounts, pension and post‑retirement obligations, long‑term debt, grants and contracts (including uniform guidance), payroll and IT implementations. KPMG identified the presumed significant risk of management override of controls and said it will design procedures, including journal‑entry testing and data analytics, to address that risk. A KPMG partner described the firm’s use of AI and data tools to support research and transaction testing.
The committee moved and approved the internal charter amendments and accepted the external audit plan; members noted the need for continued coordination as a new audit firm reengages across a complex system.
