San Antonio Audit Committee Meeting - August 21, 2026

This meeting of the Audit Committee was called to order at 11:03 AM on August 21, 2026. Members present: Councilmember Mesa Gonzalez, Councilmember White, Citizen Member Dino, Citizen Member Pacheco, and Chair Via Gran. Quorum was established. The committee approved the minutes of the previous meeting and accepted four audits on the consent agenda (items 2–5) without discussion.

Consent Calendar

• Approval of minutes from prior meeting (motion carried unanimously).
• Acceptance of audits numbered 2, 3, 4, and 5 on the consent agenda (motion carried unanimously).

Discussion Items

Item 6: Audit of DSD Demolitions of Dangerous Properties (Report AU 25-012)

Audit Manager Abigail Stevis presented the audit, which assessed whether demolition of dangerous properties was performed in accordance with regulations and whether contract services were monitored. The overall conclusion was that DSD had effective controls for initial inspections, notices, vacancy confirmation, and appeals verification. However, several recommendations were made:

• Insurance coverage: DSD did not monitor the primary demolition contractor’s insurance; the contractor lacked appropriate coverage. Recommended controls to obtain, review, and retain certificates of insurance.
• Demolition program oversight: Out of 56 sampled cases, required steps were not consistently executed or documented. Issues included untimely follow-up inspections, missing demolition permits for owner-initiated demolitions, incomplete Building Standards Board packets, and missing debris disposal documentation. Recommended strengthening controls and updating training.
• Case progress: Of 25 ongoing cases, five had an average of five months of inactivity. Recommended active monitoring and case note updates.
• Accounts receivable: DSD lacked effective controls over recouping demolition costs. Problems included inaccurate/unreported AR, inconsistent lien placement, non-compliance with citywide directive, and no write-off process. Accounts dating back to 1990 were identified. Recommended updating procedures.
• User access: Inappropriate access to the agenda builder system was found. Recommended monthly user access reviews.

DSD Deputy Director Tomas responded, stating that many issues were already addressed (e.g., insurance process, training, policy updates, monthly access reviews). He noted that accounts receivable recovery is challenging, especially for homestead properties where liens cannot be placed. Outstanding balance is approximately $5 million, with historically 15–20% recovery. DSD’s corrective action plans are expected to be completed by January 2027.

Committee members discussed the process timeline (6–18 months for standard demolitions), staffing (13 dangerous premises officers citywide), and the need for better communication with council offices. Chair Via Gran requested a future discussion on whether the timeline can be shortened and whether staffing is adequate. Councilmember Mesa Gonzalez asked about enforcement of demolition permits; DSD confirmed they now verify permits before owner-initiated demolitions. Councilmember White inquired about interim safety measures, delays, and collectibility of outstanding balances. Committee member Dino offered support from the city to help close gaps.

The committee voted to accept the audit (motion carried).

Item 7: Status Update of Outstanding Management Action Plans

City Auditor Buddy Vargas presented a summary of follow-ups on 56 recommendations from prior audits. Most recommendations were verified as implemented (blue status), with some still pending (yellow) for recent audits or partial implementation. The process is working as intended. Committee members discussed the possibility of tracking repeat delays and identifying systemic issues across departments. Chair Via Gran announced a subcommittee (led by the civilian member) to work with the city manager’s office on improving follow-up. Councilmember White asked which overdue recommendations pose the greatest financial/operational risk; the auditor agreed to provide a detailed analysis later. Councilmember Mesa Gonzalez suggested looking for structural issues across audits (e.g., accounts receivable). The item was for briefing only; no vote was taken.

Key Outcomes

• Approved minutes and consent agenda items.
• Accepted the audit of DSD demolition of dangerous properties (Item 6) with recommendations to be implemented by January 2027.
• DSD committed to ongoing corrective actions, including insurance monitoring, process documentation, training, and accounts receivable improvements.
• The committee will form a subcommittee to review outstanding management action plans and work with the city manager’s office.
• The auditor will provide further analysis on overdue recommendations and identify citywide trends.

Meeting adjourned at 11:53 AM.