Budget and Audit Committee Meeting Summary - February 2, 2021
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Budget and Audit Committee Meeting Summary - February 2, 2021
The Budget and Audit Committee met on February 2, 2021, at 3:07 PM via teleconference due to the COVID-19 pandemic, with Vice Chair Eric Guerra presiding. Committee members Rick Jennings and Mai Vang were present, while Mayor Darrell Steinberg was absent. The committee approved the consent calendar and heard a detailed discussion on the City Auditor's second report regarding COVID-19 revenues and expenses. The meeting adjourned at 3:26 PM.
Consent Calendar
- Item 1: City Auditor's Activity Report for the 2nd Quarter of Fiscal Year 2020/2021 – The committee passed a motion to accept the report and forward it to the City Council for final approval. The motion was moved by Councilmember Vang, seconded by Councilmember Jennings, and approved unanimously (3-0, with Mayor Steinberg absent). No public comments were received.
Public Comments & Testimony
- No public comments were made on matters not on the agenda.
Discussion Items
- Item 2: City Auditor's Assessments of Revenues and Expenses Associated with the City's COVID-19 Response - Report No. 2 – City Auditor Jorge Oseguera presented the report, highlighting the office's work in reducing the risk of federal clawbacks and ensuring compliance with single audit requirements. He noted that most tested programs were in compliance, but some issues were identified and quickly addressed by management. Councilmember Vang asked about 52 contracts that could be invalid due to unauthorized signatures and expressed concern about documentation gaps. Assistant City Manager Leyne Milstein responded that the city has appropriate resources but acknowledged the heavy workload caused by the pandemic, emphasizing that staff are working to upload documents into a new repository retroactively. Vang also inquired about lessons learned, to which Milstein and Oseguera cited the need for simpler program design, better communication of federal requirements, and the importance of cross-departmental coordination. The committee praised staff for their efforts in distributing nearly $90 million in federal funds.
Key Outcomes
- Motion on Item 2: Councilmember Jennings moved, and Councilmember Vang seconded, to receive the City Auditor's Assessments of Revenues and Expenses Associated with the City's COVID-19 Response - Report No. 2 and forward it to the City Council for approval. The motion passed unanimously (3-0). Committee members commended the collaborative work of the City Manager's Office, City Attorney's Office, and City Auditor's Office in navigating the complexities of federal funding.
Meeting Transcript
It's a countdown. Well, thank you, Madam Clerk. I'm gonna go ahead and call this committee of the uh budget and audit committee on February 2nd, 2021 uh to order at 307 uh p.m. If the clerk could please call the roll. Thank you, Councilmember Ghana. Here council member Jennings. I am present. Councilmember Vang here. And Mayor Steinberg may join us later. Great. Thank you very much, Madam Clerk. Uh we'll go ahead and commence with the first item on the consent calendar. Does any member wish to discuss any item on the consent calendar? Matt will take a motion. Uh so move. Move by uh councilmember Vang, seconded by council member Jennings. Uh Madam Clerk, do we have any um uh members of the public wishing to comment on this item? No, I don't. Okay, seeing that, uh member uh we'll bring it back to the council here. Uh any questions? If not, Madam Clerk, if you could please call the rule. Thank you. Well, Councilmember Getta. All right. Councilmember Jennings. All right. Councilmember Vang. Yes. Mayor Steinberg's absent. Thank you. Thank you. Our next item uh on the agenda here is city auditors uh report. Uh welcome uh Mr. City Auditor. Um thanks for being here, Jorge, and uh take it away. Thank you. It's a pleasure to be here. Good afternoon, members of the budget naughty committee. Jorge Seguera, your city auditor. With me today are Lynn Bashad, Jordan Sweeney, and Joyce Chi, who were primarily responsible for this report. The recommendation that is before you is that you pass a motion receiving the city auditors' assess assessments of revenues and expenses associated with the city's COVID-19 response, report number two, and to forward to the city council for final approval. This report is a second in a series of reports my office will be working on, which are intended to keep the mayor and council informed regarding the city's COVID-19 revenue and expense activity. As detailed in the report, the city auditor's office continues to be involved in helping the city reduce its risk of future federal clawbacks. One of the things that I'd like to highlight uh from this endeavor uh is the work that we've been recently doing on testing our compliance with single audit requirements. Uh as noted in the report, um based on our testing uh against single audit requirements. Uh we have determined that the majority of the programs that we tested are in compliance with the single audit requirements. We did, however, find some issues that we informed management of and management uh swiftly and quickly move to take action to remedy those issues, and we continue to work with management and the attorney's office as uh issues are identified. We would like to thank the city manager's office, the city attorney's office, and um uh their staff that have been involved in these endeavors for their continued partnership uh in safeguarding the city's use of COVID-19 related funds. Uh that is the conclusion of my presentation. I'm available to answer any questions should you have any.
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