Minneapolis Audit Committee Regular Meeting — December 8, 2025

The Audit Committee met on December 8, 2025 (regular meeting) to receive updates on implementation of recommendations from prior audits (notably MPD fleet management and MPD off-duty work), review the Minnesota Office of the State Auditor’s 2024 Management & Compliance reports (with clean/unmodified opinions), receive and publish a City Auditor assurance report on Minneapolis Park & Recreation Board (MPRB) revenue collections (Phase 2), approve updates to the Audit Charter, and hear the City Auditor’s office status report (work plan, investigations, open/overdue issues, staffing/budget, and upcoming organizational needs). Quorum was present (6 members at roll call; later votes reflected absences).

Consent Calendar

• Adopted the meeting agenda (voice vote; carried).
• Accepted minutes from the October 20, 2025 meeting (voice vote; carried).

Discussion Items

• MPD update on actions related to recommendations from the 2024 MPD Fleet Management Audit

  • Vehicle accident investigations (Deputy Chief Olson; introduced by Commander Justin Royster; with Commanders Reisdorfer and Lewis present)

    • Described policy framework for accident reviews and forwarding preventable accidents to Internal Affairs.
    • Reported staffing/training barriers (traffic reconstruction training described as taking 3–4 years; losses in 2020; competing priority cases such as fatalities and criminal vehicular operations).
    • Reported closure status by year (as presented): 100% cases closed for 2019 and 2020; prioritized more recent years (noted older cases left open often involved minor damage and/or employees who left).
      • Closure rates stated: 62% in 2025, 47% in 2023, 53% in 2024.
    • Staffing levels discussed: 5 crash investigators in 2019; 4 currently; stated they are putting one more person into the training pipeline.
    • Member questions:
      • Prioritization: MPD stated cases are prioritized by severity, including injury, multiple policy violations, and repeat preventable accidents.
      • Community impacts: Member Hosbein asked about how many open cases involved community members; MPD stated they do not currently know for the backlog but added community-involvement tracking to 2025 data collection.

  • Fleet policies/procedures, GPS tracking, fuel cards, oversight, mileage entry, and systems modernization (Commander Reisdorfer)

    • Policies vs procedures: Procedures described as in “remediate/compliance documentation” steps; policies described as constrained by limited policy staff due to consent decree work. Estimated timeline: 2nd–3rd quarter 2026 to amend policies; 4th quarter 2026 for command staff review.
    • GPS/vehicle tracking: Stated squad cars are monitored through CAD; described benefits for safety, dispatch efficiency, accountability, and asset oversight.
    • External fuel cards: Reported MPD pulled back all external fuel cards except five, implemented usage tracking (Smartsheet), added a request/tracking form, and does monthly reconciliation with finance.
    • Oversight structure: Reported weekly executive oversight meetings and monthly Fleet Services review meetings.
    • Maintenance reporting modernization: ServiceNow integration described as a key change; expected to go live January 2026.
    • Mileage entry: Described department-wide communications and supervisory follow-up for anomalous mileage entries; noted limitations of the city’s fueling system to automatically flag improbable entries.
    • Fleet management database: Stated transition from a legacy database toward ServiceNow as a cost-effective enterprise platform; integration planning underway.
    • Member question on change management: Commander Reisdorfer stated the new process has been received well due to ease of reporting via phone/MDC.

  • MPD Driver’s License Program and MPD Off-Duty Work Audit updates (Commander Renee Lewis, Inspections Unit)

    • Driver’s License Program: Reported completion “a couple of months” prior with 100% compliance for drivers meeting qualifications.
    • Off-duty work audit measures:
      • Implemented required Workforce Director time entry under a specific code (“POD”) for off-duty assignments to verify off-duty hours.
      • Established squad usage approval process and Smartsheet sign-out.
      • Required supervisors (including lieutenants) to visit at least one off-duty job site during their shift and record checks via Smartsheet.
      • Required off-duty site coordinators to submit monthly schedules to verify hours.
      • Developing an off-duty scheduling Power App to replace email scheduling; intended to support compliance checks and track weekly off-duty hours (while Workforce Director remains system of record).
      • Noted future work toward an all-encompassing audit program monitoring regular/overtime/off-duty hours and potential integration with new payroll system (UKG) and GPS-based tools.
    • Committee noted Issue 7 update from the fleet audit was not presented because Deputy Chief Montgomery was not present.
    • The committee voted to receive and file the MPD update report.

• 2024 State of Minnesota Office of the State Auditor (OSA) Management and Compliance Reports (City, MPRB, Municipal Building Commission)

  • Presenter: Karen Stackin (Audit Director, OSA)

    • Audit coverage: City of Minneapolis, MPRB, and Municipal Building Commission (MBC) for year ended December 31, 2024.
    • Audit standards: GAAS, Government Auditing Standards, and Uniform Guidance.
    • Opinion dates: June 25, 2025.
    • Reported unmodified (“clean”) opinions for City and MPRB financial statements and unmodified opinions on compliance for major federal programs.
    • Findings:
      • City: 4 findings in the 2024 management & compliance report; 3 prior-year findings resolved.
      • MPRB: no findings (and no prior-year findings to follow up).
      • MBC: no current findings; 1 prior-year finding resolved.
      • City findings described as including two internal control-related items (including a prior period adjustment and service organization controls) and two federal award program items (suspension/debarment and subrecipient monitoring).

  • City response: George Hargrove (City Controller) and Rob Lang (Deputy Controller)

    • Suspension and debarment: Stated procurement will document checks (including printing evidence from the relevant website); expressed desire for future automation via Workday (stated this could be “a few years”).
    • CPED land value finding: Stated regular meetings and reconciliation between Salesforce land transaction records and the general ledger.
    • Subrecipient monitoring: Stated they restructured one FTE to strengthen monitoring; plan includes pre-award assessments and reviewing subrecipient financial statements/audits, with graduated communication.
    • SOC 1 Type 2 controls (service organization controls): For Convention Center software, vendor was not able to produce a SOC report; the city developed an internal review process and is working with operator leadership on a plan; Controller indicated the vendor has the capability but has not fully agreed, leaving vendor change as a possibility.

  • The committee voted to receive and file the OSA reports.

• Assurance Services Report: Revenue Collections Audit (Phase 2) — Minneapolis Park & Recreation Board (MPRB)

  • Presenter: Director Pudyal (City Auditor’s Office), with Julie Wiseman (MPRB Finance Director) and Chad Lauber (MPRB IT Director) available
  • Scope: Revenue collection across decentralized sites (rec centers, parks, golf courses, lake facilities, MPRB HQ) covering January 1, 2022 through June 30, 2025; payment forms included cash, checks, cards, online payments; included concession agreements.
  • Overall conclusion: MPRB should strengthen policies/procedures and internal controls for consistent and effective revenue collection management.
  • Results: 7 issues total — 1 high and 6 moderate.
    1. Customer information / PCI DSS: Need to strengthen policies/training/oversight to safeguard customer data and comply with PCI DSS; noted staff sometimes wrote down credit card info when systems were down; outdated references to a PCI DSS version retired March 2024; terminal inspections inconsistently performed/documented.
       • Member Williams asked whether policy allowed writing down card info. Julie Wiseman stated the current policy does allow writing it down and shredding it, and MPRB needs to remove that from policy.
       • Audit staff stated they did not observe breaches/fraud, but learned practices through staff descriptions.
    2. Cash-handling policies/procedures: Not reviewed timely; roles/responsibilities for collection point supervisors/managers unclear; most sites lacked procedures beyond system payment steps.
    3. Oversight and monitoring: Finance works with sites on reconciliation/deposits but does not conduct periodic reviews of cash-handling internal controls; supervisory duties not documented.
    4. Internal controls in transfers of accountability: Reconciliations not completed between shifts at some sites; safe access control deficiency at one tested site; checks not endorsed immediately as required; no centralized mailroom or documented mail-payment separation-of-duties process.
    5. Training: Finance department had not developed training as envisioned in policy; staff often unaware of PCI training video; recommended systematic training and tracking via training portal.
    6. Concession agreement oversight: No formalized inspection process for concessionaire records; despite rights to monthly inspection, only 2–3 record reviews were conducted annually via email.
    7. Security over assets/staff safety: Not all sites had documented emergency safety plans; some lacked security technology; unclear policy on who can transport deposits.
  • Management action plan: MPRB agreed to recommendations.
  • Member Abeni raised concern about the workload of site-specific procedures; Julie Wiseman stated procedures will be standardized by site category (e.g., all rec centers the same; all golf courses the same), estimating about 10 sets; she reported 4 of 10 already completed.
  • The committee voted to receive and file and to publish the report (voice vote; carried).

• Audit Charter updates

  • Presenter: Robert Timmerman (City Auditor)
  • Described collaborative drafting following the prior meeting, with City Attorney review for legal alignment.
  • Vote: Motion to approve the audit charter passed by roll call: 5 ayes, 0 nays (Abeni, Hosbein, Williams, Singleton, Payne voting aye; Chugtai and Omar absent at the time of vote).

Key Outcomes

• Agenda adopted; October 20, 2025 minutes accepted (voice votes; carried).
• Received and filed: MPD update on actions related to recommendations from the 2024 MPD Fleet Management Audit (and MPD off-duty work audit updates).
• Received and filed: 2024 OSA management and compliance reports (City, MPRB, MBC), including acknowledgement of unmodified opinions dated June 25, 2025.
• Received, filed, and directed publication of the City Auditor assurance report on MPRB Revenue Collections (Audit Phase 2) covering 1/1/2022–6/30/2025 with 7 issues identified (1 high, 6 moderate).
• Approved updated Audit Charter (roll call vote 5–0).
• City Auditor’s report received and filed, including these notable updates:
  • Work in progress: MPD body-worn camera and ALPR state-required review (fieldwork); Neighborhood Safety Department contract management audit (fieldwork); after-action reviews related to the shooting of Davis Moturi and the death of Allison Lucia (consultant report now targeted for the April Audit Committee meeting); ShotSpotter performance audit (kicked off); procurement phase two (to include an example review involving Meet Minneapolis); enterprise risk assessment underway with ~35 meetings, with risk assessment and separate audit plan expected at the February meeting.
  • Fraud, waste, and abuse: 2 investigations in progress (no details discussed).
  • Open issues tracking: Since the last meeting, 6 issues closed and 7 added (net +1); reported 10 open issues and 22 overdue issues, with 4 items in validation.
  • Staffing/budget: Reported office staffing at 9, targeting ~12 within ~6 weeks; anticipated potential growth to 14 of 15 positions by mid-year 2026 if budget actions proceed. Noted Council budget actions occurring “today” and finalizing “this week.”
  • Governance/logistics: Noted need for an organizational meeting on January 26 (new council terms/appointments, leadership elections, and rules updates). Also flagged plan to shift committee communications to city email addresses only, with reminders to avoid reply-all to prevent serial meetings.
• Meeting adjourned after closing remarks and appreciation from Chair Payne (noting it was the last meeting of the year/term).