San Antonio Audit Committee Meeting: March 20, 2026

The Audit Committee of the San Antonio City Council met on March 20, 2026, at 10:01 a.m. The meeting included approval of previous minutes, public comment, pre-solicitation briefings for temporary labor and library materials, and a presentation on the FY 2025 external audit results. The committee received updates on upcoming procurement timelines and celebrated the eighth consecutive year of no internal control findings.

Consent Calendar

• Approval of Minutes: The minutes from the previous meeting were approved unanimously by voice vote.

Public Comments & Testimony

• Carl Merkel: Delivered his 32nd speech to the council. He criticized the city's internal controls regarding compliance with laws and regulations, citing his own experience with 12,500 in stolen property allegedly in city possession. He made allegations about the lack of internal controls in the U.S. judicial system, asserting that 22 federal judges committed felonies against him.
• Chair View Garan: Took a point of personal privilege to remind attendees that March is Colorectal Cancer Awareness Month and urged everyone to schedule a colonoscopy.

Pre-Solicitation Briefings

Item 2: Temporary Labor Personnel Services

• Presenter: Renee Frieda, Director of Human Resources.
• Scope: Solicitation for multiple contracts to provide temporary personnel for clerical, general labor, and specialized roles (e.g., Metro Health, human services, finance).
• Estimated Value: 6 million per year, 30 million total over a 3-year base term (plus two 1-year renewals).
• Current Spending: Year-to-date spending is 945,000; projected annual spend is up to 3.9 million.
• Vendor Pool: Current contract has four vendors; new RFP allows multiple awards.
• Evaluation Criteria: Experience (40 pts), proposed plan (30 pts), pricing (20 pts), SBE Prime Contract Program (10 pts).
• Timeline: RFP release April 13, 2026; contract target start December 22, 2026.
• Discussion Highlights:
  • Chair Garan raised the need for background checks and asked if vendors would accommodate second-chance hiring. Renee confirmed the city has second-chance initiatives and expects vendors to apply similar standards.
  • Councilman White questioned the increase from current spending to 6 million annually. Renee explained that the contract amount must anticipate unforeseen needs (e.g., pandemic peak of 450 temps) and noted that over 20 million of the prior 35 million was grant-funded.
  • Councilman White asked about AI alternatives to temporary labor. Staff indicated an AI policy update is scheduled for June 2026.
  • Committee Member Trisha asked about vendor criteria. Renee highlighted vetting, comparable wages, and benefits as factors.
  • Trisha also asked about building bench strength to reduce temp reliance. Renee confirmed that internal special assignments and backfilling are used.

Item 3: Library Print Materials, Cataloging, and Processing

• Presenter: Dale McNeill, Assistant Director of the San Antonio Public Library.
• Scope: Up to six contracts for print materials (primarily books in English and Spanish), cataloging, and processing services.
• Estimated Value: 3.5 million annually, 24.5 million total over a 5-year base term (plus two 1-year renewals).
• Background: The previous major vendor, Baker & Taylor (125 years in business), went out of business with no notice. The city has used an interim contract with Ingram Library Services since November 2025.
• Evaluation Criteria: Experience (25 pts), proposed plan (55 pts), pricing (20 pts).
• Timeline: RFP release April 10, 2026; council consideration September 2026.
• Discussion Highlights:
  • Councilman White asked about the impact of digital resources. Dale noted that print demand has declined, and usage is roughly 50/50 print vs. electronic. He explained the higher cost of ebooks for libraries (e.g., up to 100 for a title).
  • Committee Member Trisha asked about library card penetration. Dale reported approximately 250,000 cardholders and mentioned outreach strategies, including door hangers with solid waste collections.
  • Chair Garan affirmed that the library continues to provide quality service and noted the importance of adapting to the economic climate.

Discussion Items

Item 4: FY 2025 External Financial Audit Results

• Presenters: Victoria Rader, Deputy Finance Director, and Amanda Eves, Partner at Forvis Mazars (external auditors).
• Key Results: The city received an unmodified (clean) opinion on its financial statements for the eighth consecutive year. No material weaknesses, significant deficiencies, or proposed audit adjustments were identified. The single audit for federal and state grants also had no compliance findings.
• Background: The audit covers the city's financial statements and ensures compliance with state and federal grant requirements. A new Texas law (SB 1851) requires the audit to be completed within 180 days of fiscal year end; noncompliance could cap the property tax rate.
• Deliverables: Annual Comprehensive Financial Report (ACFR), Single Audit Report, and other reports available on the city's transparency website.
• Discussion Highlights:
  • Committee Member Trisha asked for clarification on "unmodified clean opinion." Amanda explained it means financial statements are properly stated per GAAP with no additional explanatory paragraphs.
  • Councilman White asked what a "true and fair view" means. Victoria clarified it confirms the accuracy of the numbers, not an assessment of the city's financial health.
  • Councilman White inquired about the use of AI and automation in finance. Victoria stated the city is not currently using AI for financial reporting, but plans to explore it during the SAP upgrade (S4 HANA and Ariba) later in 2026.
  • Chair Garan and other members commended the finance team and city leadership for achieving eight consecutive years of clean audits and no proposed adjustments.

Key Outcomes

• The committee accepted the FY 2025 external audit report and related communications as briefings.
• The next audit committee meeting, originally scheduled for April 1, 2026, will be rescheduled for the week of April 13, 2026, to allow additional time for procurement preparations.
• Staff will ensure meeting packets are distributed one week in advance, following the departure of prior administrative staff.
• The meeting adjourned at 11:05 a.m.