A regional transit authority strengthens governance and oversight through a comprehensive risk assessment and data-driven audit plan.
Background
A prominent regional transit authority in California plays a critical role in delivering safe, reliable, and sustainable mobility solutions across a diverse and growing metropolitan area. MGO serves as the outsourced auditor general for the agency, providing independent oversight and strategic audit planning. On a biennial basis, the MGO team leads a comprehensive internal risk assessment to guide the development of the agency’s audit plan.
Challenge
As with many public transportation entities, the agency faced increasing complexity in its operations — ranging from capital project delivery, ridership, and large events to cybersecurity, workforce planning, and continuity. To navigate these challenges, the agency required a structured and transparent approach to identifying and prioritizing organizational risks. The goal was to develop an audit plan that addressed the most critical areas of exposure, aligned with board priorities, and supported long-term operational resilience.
Approach
MGO deployed a multi-phase methodology to assess the agency’s risk landscape:
- Conduct a targeted survey of board members, executive leadership, and management to gather insights on perceived risks.
- Facilitate collaborative risk brainstorming sessions with the auditor general team, client management, executive leadership, and the governance and audit committee.
- Research and review risk factors and emerging issues faced by other regional and national transportation agencies.
- Synthesize input from all stakeholders to develop a comprehensive risk heatmap and priority list.
- Use the final risk profile to design a focused and actionable annual audit plan.
The resulting audit plan was not only data-driven but also aligned with stakeholder expectations and governance priorities — an essential factor for public agencies entrusted with taxpayer dollars and community trust.
Value to Client
The final risk assessment report and audit plan were formally presented to the audit committee and approved by the board. MGO also executed the audit plan, delivering value through each engagement.
Since our initial collaboration, MGO has conducted three full risk assessments and more than 50 individual audit task orders for the client. These efforts have helped the agency strengthen internal controls, enhance transparency, and proactively address emerging risks in a dynamic transit environment.
Strengthen Your Governance With Risk-Based Audit Planning
From transportation to public infrastructure, MGO helps state and local agencies identify, assess, and manage organizational risks to build stronger governance and accountability.
Reach out to learn how our team can help align your audit strategy with your agency’s mission and long-term goals. Contact us today.