San Antonio City Audit Committee Meeting - October 7, 2026

The San Antonio Audit Committee met on October 7, 2026, from 10:05 a.m. to 11:35 a.m. Chair Villagran presided; Councilmembers Mesa Gonzalez and White, Citizen Members Tinal and Pacheco, and Chair Villagran were present, establishing a quorum. The committee took up procurement briefings, contract awards, three final audit reports, and the proposed FY2027 annual audit plan.

Public Comments & Testimony

• Mary Scott (Katie), with Act for SA, thanked the committee for adding a police overtime audit to the FY2027 plan and asked the auditor to expand it to total compensation, grant management, and contracts; to make findings public; and to repeat the audit every three years, citing the city budget gap.
• Christian Nunez, director of organizing at Akron SA, supported the proposed 1,000-hour SAPD overtime audit, noting overtime had not been audited since 2020 and that SAPD spent more than $34 million against a $17.7 million overtime budget in 2024 within a $631 million department. He asked for the audit to cover total compensation, benefit/leave/incentive pay, a SAPD grant management audit, a SAPD contract review, public progress reports, and a recurring audit every three years.

Pre-Solicitation Briefings

• (Item 2) Custodial and supplemental conversion services for the Alamodome. Staff proposed an annual contract for cleaning, restroom maintenance, trash/recycling disposal, and supplemental labor during event transitions, with an estimated total value of $13.25 million, initial 3-year term and two 1-year renewals, funded by the Alamodome Fund. The current contract expires May 31. Solicitation planned for release Oct. 12, proposals due Nov. 30, and contract start June 1. Outreach included 295 vendors notified and 4 targeted. Evaluation: 30 points experience/qualifications, 40 proposed plan, 20 price, 10 SBE prime; 14% subcontracting requirement. Chair Villagran stressed expectations for in-event cleaners training and customer interaction; staff described real-time issue escalation. This item was briefing only.
• (Item 3) Event attendant and supplemental event security services for the Alamodome. Staff proposed a contract for guest guidance, ticket collection/verification, entry screening, restricted-area security, crowd control, and visible security presence. Estimated total value $15 million, initial 3-year term and two 1-year renewals, funded by the Alamodome Fund; current contract expires Sept. 30. Solicitation release planned Oct. 22, proposals due Dec. 8, contract start Oct. 1. Outreach included 362 vendors notified and 3 targeted. Evaluation criteria were the same as item 2, with an 11% subcontracting requirement. Chair Villagran said security must prepare for changing crowds, merchandise lines, photo ops, and family events. A councilmember asked about supplemental event terminology and school district security cost reimbursements; staff said renters/partners reimburse event-related expenses such as security for graduations and UTSA football, and the councilmember asked to see reimbursement data. This item was briefing only.

Post-Solicitation Procurement Approvals

• (Item 4) Temporary staffing services. Human Resources presented an RFP for citywide temporary staffing, estimated total value $12.5 million, 3 years with two 1-year renewals; current contract expires Dec. 21. Of 156 notified vendors, 58 attended the pre-submittal conference; 60 responded; 33 were deemed non-responsive for failing to meet the 6% subcontracting requirement, and one additional respondent was deemed non-responsive for failing to provide all required documentation, leaving 26 responsive proposals. Staff recommended awarding to the three highest-scoring responsive vendors. Discussion noted current usage of 90 temps citywide (39 DHS, 15 animal care, 6 finance), and a committee member asked for a department/function breakdown and why one vendor lacked SBE prime points. Motion approved.
• (Item 5) Fire Station No. 33 construction. Capital Delivery recommended awarding the 2022 bond project at 2935 Castroville Road, District 5, to the top-ranked proposer, with an estimated $10 million contract and roughly 400-day construction period. Twelve bids were received; four were non-responsive, leaving eight scored. The committee discussed the scoring rubric; staff said the evaluation guide defines excellent/good ranges and agreed to provide a follow-up memo explaining the scoring legend. Motion approved to move the contract to City Council.

Audit Report: PWD Right-of-Way Permits (Item 6)

• The audit (AU 25-033) found effective controls for 311 service requests and documenting denied permits, but identified weaknesses in policies/procedures, permit phase accuracy, fee accuracy, and accounts receivable management. In FY2025, about 19,000 permit applications were submitted and $5.4 million revenue generated. The audit recommended clearer written procedures, monitoring of permit phases, accurate invoicing of emergency excavation fees, parking restrictions, and violations, and adherence to Administrative Directive AD 8.4 for past-due accounts.
• Public Works staff accepted the findings, noted staff training and new procedures, and said permits will not be issued to applicants with balances past due 90 days. A committee member asked about the $954,000 outstanding balance; staff said $142,000 had been collected and the rest was being processed for write-off, with some old debts not recoverable. Staff agreed to provide a written collection update at the halfway point. Motion to accept the audit carried.

Audit Report: Municipal On-Site Solar Project (Item 7)

• The audit (AU 25-035) concluded the department did not have adequate controls to monitor the municipal on-site solar program. A master services agreement with Big Sun was executed in Nov. 2023; the goal is about 13 MW and $1.8 million annual utility savings; as of Feb. 2026, 22 sites were completed and $12 million had been paid. Findings included gaps in contract monitoring of Big Sun and third-party inspector West East, missing documentation for replacement sites and inspection letters, payments made before inspection documentation was received or not approved by fiscal staff, issues with energy savings calculations, and inappropriate user access to PrimeLink. The department agreed and set completion date Aug. 2026.
• Chair Villagran thanked the audit team for early review and said solar investment was an important story. A committee member raised concerns about how the city can independently confirm work was complete and suggested pre-implementation audits/cost analysis. Motion to accept the audit carried.

Audit Report: Ready to Work Program (Item 8)

• The audit (AU 25-036) of the Workforce Development Office Ready to Work program found effective controls overall. Positive results included participant eligibility, prime agency reporting, SBE goals on track, authorized employers, appropriate services, invoicing reviews, insurance monitoring, and advisory board collaboration. Recommendations addressed verifying full-time W-2 status for OJT/IWT participants (13 of 103 trainees not initially verified), monitoring all eight performance measures including one-year retention, and improving user access controls to the Sync platform (3 of 30 non-COSA users had inappropriate access).
• Workforce staff said the programs now measure retention internally at 85% against an 80% goal; 63% of participants are placed within six months and 73% within 12 months; all missing documentation was later obtained and an SOP now requires verification before future reimbursement. Motion to accept the audit carried.

FY2027 Annual Audit Plan (Item 9)

• City Auditor Buddy Vargas presented the proposed FY2027 plan, required by ordinance, with 30 audits, 3 consulting projects, and 1,000 reserved hours for special project requests. He recommended cancelling the standalone accounts receivable audit from the FY2026 plan because current audits already identify AR trends. Priorities include revenue recognition, operations, cost savings, grants compliance, and the requested SAPD overtime audit. The plan is targeted for City Council consideration Oct. 29 and can be modified only with audit committee approval.
• Discussion included why some areas had no audit in seven years; staff explained resource allocation and FY2026 carryover IT audits. A committee member asked about the vehicle replacement/renewal fund; staff agreed to consider including it in the fleet operational audit if applicable. Public comments earlier asked for the SAPD audit scope and public reporting. Motion to approve the FY2027 audit plan carried.

Key Outcomes

• Approved meeting minutes.
• Approved HR temporary staffing contracts to proceed to City Council.
• Approved Fire Station 33 construction contract to proceed to City Council.
• Accepted the three audit reports (Items 6, 7, and 8).
• Approved the FY2027 annual audit plan, including cancellation of the standalone accounts receivable audit.
• Staff will provide follow-up items: scoring rubric memo; temp staffing departmental usage breakdown; PWD right-of-way collection update; confirmation on vehicle replacement fund in fleet audit scope; and Alamodome security reimbursement data.