Minneapolis Audit Committee Meeting, October 19, 2026

The Minneapolis Audit Committee met on October 19, 2026, at 14:31:16 UTC under Chair Elliot Payne. A quorum was established with six members initially present; Member Engelhardt joined later. The committee adopted the agenda, accepted the August 24, 2026 minutes, and then heard status updates on open corrective action plans, an advisory report on after-action reviews, the Behavioral Crisis Response audit, and an update from the Office of the City Auditor. All formal motions were approved by voice vote with no reported opposition.

Discussion Items

Corrective Action Plan Progress Updates

• City Auditor Timmerman opened by explaining that corrective action plans are developed by auditees, while the Office of the City Auditor monitors and validates status updates. He noted that dashboard entries may not yet show items as closed even if departments describe them as complete, because the office is still validating submitted evidence.
• Director Matt Kwaters stated that he had evaluated more than 1,800 pieces of information and 108 individual evidence submissions from public safety departments between August and the night before the meeting.

Minneapolis Police Department

• Commander Chris Brown reported that the 2023 property and evidence audit, which initially had 12 findings, has been fully satisfied and closed, as has the sexual assault examination kit special project follow-up audit with 4 findings.
• On the 2024 fleet management audit, MPD has closed 3 findings and has 4 remaining open: prioritizing MPD investigations in employee-involved vehicle accidents, updating fleet policies and definitions with stakeholders, aligning information sharing with risk management on crashes, and developing a fleet management system with City IT. A meeting with the auditor's office on the fleet system finding is scheduled for October 28.
• On the 2019 off-duty audit, one finding has been closed and two remain open. MPD described new internal controls that did not exist in 2019 and said a new timekeeping and scheduling system is planned for 2027, though its full off-duty management capabilities have not yet been assessed.
• On the 2026 after-action review following the shooting of Davis Maturry and the death of Alison Lucher, MPD reported 37 findings in total, with 3 fully satisfied and 3 near completion. Work includes policy development, department-wide training, domestic violence protocol changes, additional domestic assault investigators, warm handoffs to navigators, and updated resource cards.
• City Auditor Timmerman clarified that a finding can be closed when the auditee completes the corrective action commitment, such as submitting engineering reports, budget requests, and mitigation plans, even if future capital construction remains unfunded.
• Committee members asked about evidence storage risks. MPD noted continuity-of-operations and disaster plans, alarms, humidity controls, and a backup generator plan. A $500,000 to $600,000 backup power and climate control project and roughly $250,000 in warehouse environmental controls, plus a $3 million roof replacement request, were identified in the 2026-2031 capital planning process.
• On fleet audit deadlines, Commander Reisdorfer said the revised May 2027 target is achievable only if staffing, training, and FTE resources are available; policy development is expected to be substantially complete by December, and the new fleet software system is built and undergoing data migration.
• Vice Chair Singleton asked about off-duty call signs and the domestic violence pilot. MPD explained the four-digit off-duty and three-digit 911 call sign distinction. Deputy Chief Adams said the domestic violence pilot had been restarted with a new one-page risk assessment; an internal working group with the City Attorney and Hennepin County Attorney is meeting, and all community navigators have been trained on domestic violence.
• Chair Payne noted the City Council passed an ordinance to allow charging fees for off-duty work and asked why IT infrastructure described as a barrier still delays implementation. MPD said the new UKG timekeeping system may help but its off-duty capabilities are not yet fully confirmed.

Neighborhood Safety Department

• Director Amanda Harrington reported on the neighborhood safety contract management audit. NSD said none of its items are past due, with one sub-item needing its dashboard due date corrected to the latest applicable date.
• NSD has held monthly meetings since June 4, 2026 with finance, procurement, controller, and City Attorney staff. A shared agenda and notes document is used, covering contract policy, deviations, invoice issues, and next steps.
• Policies completed so far include contractor training and contractor food and beverage reimbursement, both reviewed by finance and the City Attorney. The invoicing policy and contract management policy are being updated. Contract staff training on invoice reviews was completed in July, ahead of the September due date.
• NSD developed a standardized site visit form, a centralized contractor training tracker, and updated contract file and communication standards. The City Auditor has informed NSD that the contractor training tracking and contract documentation items are closed.
• On the undue influence and pressure finding, Harrington said clearer contract manager designation letters and communication standards should help, but acknowledged that small community-based contractors may still contact elected officials if they are frustrated or stressed by the city's 35-day invoice payment timeline.

Finance and Property Services Department

• CFO Dushani Dye presented two findings. The first, from the 2023 revenue and collections audit, involved mailed payments left unsecured on a desk. The original due date was October 1, 2024, revised to October 1, 2026. Locked mailbox cabinets have been installed, and the item will close once keys and key holders are finalized.
• The second finding involved the Health Department's contract with Helix Health and Housing Services. Finance has moved to a consistent, higher standard for invoice backup aligned with federal grant requirements. Procurement training occurred in October 2026. Dye also stated that emergency procurement procedures are no longer used unless there is an emergency declaration.

Minneapolis Park and Recreation Board

• An MPRB representative reported all seven cash-handling audit findings remain open, with a target deadline of December 31, 2026. Information security and PCI compliance policies have been updated, an information security and compliance analyst has been hired, and an annual information security awareness training is on the MPRB training portal.
• Cash-handling training is being adapted from the city's version and is expected to be available by November. Collection-point-specific procedures and finance oversight procedures are nearing completion. MPRB is limiting cash held at facilities, recreation centers have no cash drawers, and larger cash deposits are directed to headquarters.
• MPRB has a $250,000 annual security camera replacement program and is developing concession agreement inspection procedures.
• In response to member questions, MPRB described contingency instructions for when internet or credit card systems are down, including phone payments at other locations, and said it would research automated cash-accepting machines.

After-Action Review Advisory Report

• The Director of Internal Audit presented an advisory engagement requested by the council through the audit committee. It assessed whether the city has an independent function to evaluate high-impact public safety cases.
• The conclusion was that the city does not currently have a department or division dedicated to managing after-action reviews of high-impact violent events, and creating one would require new funding and could overlap or conflict with Minnesota Statutes chapter 611A, including sections 611A.72 through 611A.74 and the Crime Victim Justice Unit.
• The report recommended creating a work group with the City Attorney's Office to develop training and procedures for routing complaints to the Office of Police Conduct Review and the Crime Victim Justice Unit, maintaining a resource list, and reporting progress to the City Auditor within six months.
• Member Wathaq asked how systemic after-action reviews would occur if another high-impact incident happens. The presenter said the state already has the statutory mechanism and expertise, and the city should focus on education and referral rather than creating a new city office.
• Member Peterson asked about the source of the 37 recommendations referenced in the report; the presenter confirmed they came from the city's recent after-action reviews involving the deaths of Alison Lucher and Davis Maturry.

Behavioral Crisis Response Audit

• Matt Kwaters presented the 2026 Behavioral Crisis Response Program audit, covering contract COM0003838 with Canopy Roots for 24/7 citywide behavioral crisis response. Oversight of the contract was transferred to the Minneapolis Fire Department in amendment two, and the reviewed period ran through August 15, 2026.
• Finding 1 stated the contract measures service availability but does not define performance targets. The recommendation is to align operational metrics with MFD standards, implement a standard operating procedure, and establish response data sharing.
• Finding 2 stated contractor billing and MFD invoice review processes do not match. Auditors observed repeated invoice period labels and summary-level support documentation, but did not find actual noncompliance. A tracking mechanism was recommended.
• Finding 3 stated MFD reviews vendor invoices without written criteria, relying on the expertise of the individual contract manager. The report recommended memorializing the oversight process.
• The report also included an informational advisory with future program suggestions and possible grant funding streams. MFD provided a management response with corrective actions coordinated with the Office of Community Safety.
• Member Wathaq cited approximately $2.73 million in repeated billing amounts despite varying reported staffing and hours, and asked whether a retrospective financial reconciliation would be conducted. Kwaters said determining recoverable amounts was outside the audit scope, but the management response commits to strengthening invoice controls, and a further review could be discussed.
• Member Chughtai criticized the MFD management response for suggesting it had not received information from departments within the same office, and criticized the informational advisory for making future-scope suggestions, including homelessness-related funding uses, that were not part of the requested audit. Kwaters apologized, clarified that the advisory was informational rather than a formal recommendation, and accepted accountability for it.
• Chair Payne and Member Hosbein added context that the program had moved from Neighborhood Safety to MFD because of earlier contract management deficiencies, and that questions about vendor versus in-house delivery and expanded scope are ultimately policy decisions for the council and administration.

Office of the City Auditor Update

• City Auditor Timmerman reported completed work, including the reports presented earlier that day, and noted that the surveillance technology review management response had been entered into the dashboard.
• Upcoming work includes the permitting process audit in December, a data governance audit, an Ethical Practices Board advisory engagement, a city fleet management audit with a kickoff meeting that day, and the 2027 enterprise-wide risk assessment with meetings expected in November.
• The office has two active fraud, waste, and abuse referrals, hired a Macalester College intern, and posted an auditor 3 position and its backfill.
• Timmerman said the mayor's proposed budget would reduce the Office of the City Auditor by two FTE and $100,000 in contractual services, which would effectively eliminate outside contracting capacity and create a threat to auditor independence. He suggested exploring a city charter change to set the office's budget with authority to increase, but not decrease, tied to inflation.
• Chair Payne suggested using the annual audit work plan and risk assessment to document resource needs ahead of the mayor's budget proposal. Audit committee training was rescheduled to January or February, and fraud awareness week activities were announced.

Key Outcomes

• Agenda adopted and August 24, 2026 minutes accepted by voice vote.
• The committee received and filed the corrective action plan progress updates from MPD, NSD, Finance and Property Services, and MPRB, and directed staff to publish the reports.
• The committee received and filed the advisory report on managing after-action reviews and directed staff to publish it.
• The committee received and filed the Behavioral Crisis Response audit report and directed staff to publish it.
• The Office of the City Auditor update was presented for discussion; no formal action was taken on the budget proposal or future audit plan.