Budget and Audit Committee Meeting – April 4, 2023

The Budget and Audit Committee met on Tuesday, April 4, 2023, at 3:01 p.m. in the City Hall Council Chamber, with Vice Mayor Eric Guerra presiding until Mayor Darrell Steinberg arrived at 3:04 p.m. The committee unanimously approved the consent calendar and discussed two agenda items: the City Auditor’s Proposed Work Plan for Fiscal Year 2023/24 and the selection of a Vice Chair for calendar year 2023. The meeting adjourned at 3:20 p.m.

Consent Calendar

• Items 1–6 were approved unanimously (4–0). These included:
  • Approval of Budget and Audit Committee meeting minutes from November 29, 2022 and December 6, 2022.
  • Acceptance of the City Auditor’s Activity Report for the 2nd Quarter of FY 2022/23, forwarded to City Council.
  • Acceptance of the City Auditor’s Recommendation Follow-Up Report for July–December 2022, forwarded to City Council.
  • Receipt and filing of the FY 2021/22 Independent Accountants’ Report on the Appropriation Limit Calculation.
  • Receipt and filing of the FY 2021/22 Transportation Development Act Fund Audited Financial Statements and Compliance Report.
  • Acceptance of the FY 2021/22 Annual Comprehensive Financial Report (ACFR), forwarded to City Council.

Discussion Items

• Item 7 – City Auditor’s Proposed Work Plan for FY 2023/24

  • City Auditor Jorge Oseguera presented the work plan, which includes performance audits, cannabis audits, utilities audits, research and analysis, and operation of the whistleblower hotline. Highlights include auditing the city’s homeless response, fulfilling responsibilities related to Measure L (Sacramento Children and Youth Health and Safety Act), assessing water and wastewater fund fiscal sustainability, auditing police overtime, and auditing the business operation tax.
  • Committee members provided direction on the homeless response audit:
    • Councilmember Vang requested a timeline and emphasized the need to account for the new city-county MOU signed in December 2022, as services may shift.
    • Mayor Steinberg distinguished between “test one” (how many people helped) and “test two” (visible impact on streets) and stressed that the audit should determine whether dollars are creating more beds, services, outreach, and cleanup.
    • Vice Mayor Guerra expressed interest in process improvement to enhance the city-county partnership.
    • Councilmember Talamantes asked for a breakdown by department, including staff time (FTE) across divisions such as police, code enforcement, 311, and contracts with service providers.
  • Auditor Oseguera stated the audit would begin with an inventory of current city homeless spending and services, with a typical audit timeframe of seven to nine months. He noted the scope may narrow or expand based on initial findings.

• Item 8 – Selection of Vice Chair for Calendar Year 2023

  • Mayor Steinberg nominated Councilmember Karina Talamantes as Vice Chair, noting that other committee members already hold key leadership positions. The motion was seconded by Councilmember Vang and passed unanimously (4–0).

Key Outcomes

• Consent Calendar: Approved unanimously (4–0). Items 2, 3, and 6 are forwarded to the full City Council for final approval.
• Item 7: Approved unanimously (4–0) to accept the City Auditor’s Proposed Work Plan for FY 2023/24 and forward it to the full City Council for final approval. The committee provided specific direction on the homeless response audit scope.
• Item 8: Councilmember Karina Talamantes was elected Vice Chair of the Budget and Audit Committee for calendar year 2023 (4–0).
• No public comments were received on any agenda item.

Committee Comments

• None.