Audit Committee Meeting Summary - December 3, 2025

The Audit Committee convened at 10:00 a.m. on December 3, 2025, to approve meeting minutes, review four internal audit reports on the consent agenda, and deliberate on two individual items: a contract for a new Animal Care Services veterinary hospital and an audit of the Visit San Antonio contract management. The committee proceeded with a clear quorum and concluded with motions carrying for all agenda items.

Consent Calendar

• Approved the minutes of the previous meeting without corrections.
• Accepted four final internal audit reports included on the consent agenda (Items 2-5) without any items being pulled for individual discussion.

Public Comments & Testimony

• No members of the public signed up to speak.

Discussion Items

Item 6: Capital Delivery Department - New Animal Care Services Veterinary Hospital

• Staff Presentation: Mike Shannon, Director of the Capital Delivery Department, presented on post-solicitation activities for a 2022 bond project. The project involves constructing a new 14,000+ square foot veterinary hospital and renovating the existing clinic in Council District 6, with an estimated total value of $15,322,500 and a completion target of late 2027.
• Procurement Details: The committee noted that the project proceeded to a competitive sealed bidding process for the second time due to ordinance changes (SABRA). Of seven respondents, five were deemed non-responsive, primarily for failing to meet the 20% small business subcontractor requirement. Vendor A was selected with a high score of 83.14, while Vendor B was not selected despite being a small business prime.
• Committee Positions:
  • The Chair expressed disappointment that no bidders met the 20% small business subcontractor requirement but acknowledged this as a significant challenge for the sector following recent ordinance changes. The Chair stated a desire to have economic workforce development groups assist in helping smaller groups meet these requirements.
  • The Chair noted that Vendor A is not a small business prime but will meet the subcontracting goals.
• Outcomes: The committee voted to approve the selection of Vendor A to proceed with scheduling the contract for City Council consideration.

Item 7: Audit of CSF Visit San Antonio Contract (AU 24-007)

• Audit Findings: Michael Gutierrez, Audit Manager, presented findings from a review to determine if the Convention Services and Facilities (CSF) department adequately monitored the Visit San Antonio (VSA) contract. While VSA was found to be in compliance with key terms, two areas requiring improvement were identified:
  1. CSF was not adequately monitoring accounts receivable for hosting obligations.
  2. CSF was not obtaining sufficient source documentation to validate data in quarterly performance metrics reports.
• Staff Response: Tricia Muski-Scan, CSF Director, accepted the recommendations and outlined an action plan completed in October. She explained that payment for four delayed accounts had been received. She noted that delays in reporting hosting obligations are inherent to waiting on hotel data from meeting planners.
• Committee Positions:
  • Councilmember Via Gran: Expressed concern regarding transparency and taxpayer accountability, noting that the lack of source documentation makes it difficult to verify efficiency. She acknowledged the industry-standard nature of the "Salesforce/ Simple View" CRM but emphasized the need for a direct line from dollars spent to economic impact. She raised concerns about the accuracy of "heads and beds" data given the prevalence of alternative accommodations like Airbnb.
  • Councilmember Mark: Expressed worry about whether source documentation is available in a timely manner and questioned if the lack of controls was a reoccurring issue. He stated that the audit was informative but highlighted the need for continuous monitoring to ensure ROI.
  • Councilmember Spears: Expressed strong support for Visit San Antonio and noted that the "Simple View" CRM is an industry standard with a functioning economic impact calculator. She inquired about the nature of the tracking mechanism improvements and noted that delays in TPID data are a function of business reality (waiting on customers).
  • Staff (Mario): Clarified that the disconnect in the CRM was due to the sales lifecycle; detailed data is often missing in the initial "lead" phase and is populated as the deal progresses. He explained that meeting planners withhold data initially to negotiate better rates.
• Future Steps: The audit team confirmed this was the first visit SA audit, so no reoccurrence issues could be identified. A follow-up matrix validating the action plan will be presented at the next meeting.
• Outcomes: The committee voted to accept the audit report and the CSF management response plan.

Key Outcomes

• Approved: Minutes of the previous meeting.
• Approved: Four internal audit reports on the consent agenda.
• Approved: Selection of Vendor A for the new Animal Care Services veterinary hospital contract, subject to a future vote by the full City Council.
• Accepted: Audit report AU 24-007 regarding the Visit San Antonio contract, with CSF agreeing to implement recommended improvements for monitoring accounts receivable and validating performance metrics.
• Scheduling: The next meeting is tentatively rescheduled for the second or third week of January (after January 7th) to allow time for staff to canvass calendars and meet posting requirements for an open meeting act special meeting.