San Diego City Council Audit Committee Meeting - February 15, 2017
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San Diego City Council Audit Committee Meeting - February 15, 2017
The San Diego City Council Audit Committee met on February 15, 2017, under Chair Gomez. The meeting covered approval of previous minutes, several informational presentations, and acceptance of audit reports. No public comments were made. The committee unanimously approved the minutes and accepted two audit reports. All other items were informational and required no action.
Consent Calendar
- Approval of Minutes: The committee approved the records of action from the January 25, 2017 meeting by unanimous consent.
Public Comments & Testimony
- No public comment speaker slips were turned in.
Discussion Items
- Item 1: Monthly Activity Report (City Auditor Eduardo Luna) – Informational presentation on the Office of the City Auditor's recent activities, including two issued audit products (IT audit on SAP user access and annual accomplishments report) and ongoing audits (e.g., stormwater, grants management, capital improvement program, Office of Special Events, city boards and commissions). No action taken.
- Item 2: ACCELA/ACELA Systems Implementation (presented by Jim Myers, Deputy Director for Development Services) – Informational update on the implementation status. Discussion included the expedite program and the need for controls to ensure proper inclusionary fee collection. The system will have capability to add reports post-implementation. No action taken.
- Item 3: Follow-up to Performance Audits for Purchasing and Contracting Department (presented by Matthew Helms, Deputy Director) – Informational update on progress implementing prior audit recommendations, including revision of the Standard Operating Procedure manual and development of online training and a compliance dashboard, expected to go live in June 2017. No action taken.
- Item 4: IT Audit of SAP Privileged User Access Management (presented by Steve Gomez, Principal IT Auditor, and Laura Reyes Cortez) – Presented the audit findings and five recommendations to improve security of SAP privileged user management. Both the IT Department and Commissioner's Department agreed to all recommendations with reasonable implementation timelines. The committee voted to accept the audit report (motion by Sherman, second by Valdivia, vote unanimous).
- Item 5: Calendar Year 2016 Annual Activities and Accomplishments Report (presented by Danielle Knighton, Deputy City Auditor) – Highlighted the office's achievements: 13 performance audits, one agreed-upon procedure, six hotline investigation reports, 109 recommendations (all agreed to by administration), and two recommendation follow-ups. Key reports included audits of the expedite program, street light repair, pedestrian safety, San Diego Housing Commission, library, and selected contracts. The committee voted to accept the report (motion by Sherman, second by Valdivia, vote unanimous).
Key Outcomes
- Approved the minutes from the January 25, 2017 meeting.
- Accepted the IT Audit of SAP Privileged User Access Management report (motion by Sherman, second by Valdivia, unanimous).
- Accepted the Calendar Year 2016 Annual Activities and Accomplishments Report (motion by Sherman, second by Valdivia, unanimous).
- All other items were informational and required no action.
The meeting adjourned. The next audit committee meeting is scheduled for March 15, 2017.
Meeting Transcript
Good morning, everyone. Started. Welcome to this February 15, 2017 meeting of the City Council's Audit Committee. For the record for the record, we have a quorum consistent of Councilmember Sherman, Audit Committee member Tom Hebrank, Audit Committee Member Ricardo Valde uh Valdivia, Audit Committee Member Alan Spencer. Also present are Priscilla Dugart, Deputy City Attorney, Eduardo Luna, Auditor, Lisa Byrne from the Independent Budget Analysis Office, and Committee Consultant Laura Gates. Let's begin with the committee records of action of the January 5th, 25th, 2017 committee meeting. Is there a motion to approve the record of action? A second. Thank you, Tom. They are considered approved by unanimous consent unless there they are pooled for discussion. Hearing no request to pull the two actions, they stand approved. At each meeting, we have invited public comment for up to two minutes about issues within committee jurisdiction, but not on the agenda. This morning we don't have any public comment speaker slips turned in for non-agenda public comment. So we're gonna skip public comment. And do any of the committee members, IBA, city attorney, or auditor have any comments to make. No. Okay. So I I have uh a few comments to share. Last week I had the pleasure of um the opportunity to visit the audit auditors department and meet with the auditor staff and learn more about what they do and who they are. I really appreciate the work that this group and dedication professionality they they offer to the city and what they do. I really look forward to working with them an entire year, so thank you so much for opening the department. Really appreciate it. Well, thank you for visiting. Yes, of course. Um are there any requests uh for continuance? No. Hearing no requested continuance, we'll move on to item one. We will hear presentation on item one, which is the monthly activity report. I would like to welcome Mr. Eduardo Luna, our city auditor. Thank you for being here today. I will now turn it over to you for your presentation. Good morning, Madam Chair, members of the audit committee, Eduardo Luna, the city auditor. I'm here to give an update of our office's activities since our last meeting last month. Um since we've last met, we've issued two audit products. This includes the IT audit on SAP user access, which will be heard later today at this meeting. And also we issued our annual accomplishments report for calendar year 2016, which will also be heard today. We have two audits that are in the report writing phase. This includes the IT audit of citywide privileged user management, and also we have a um environmental services department, um streetlight utility billing audit, which has been expanded to include citywide billing as a whole. This includes we have the capital improvement program audit that's focused on quality assurance of street repairs. In addition, we have the IT audit on the Excel implementation. We have the audit of of the Office of the Special Events that's looking at the application process, and finally we have the audits of city boards and commissions. This includes economic development department, the business and industry incentive program, capital approving program for lifeguard tower, um, park and recreation department citywide activities and programs, the planning department development impact fees, and then with regards to the office of the city attorney, I need to just bring to the committee's attention. I had notified the committee last week that at the request of the city attorney, and as a professional courtesy to the newly elected city attorney, we are deferring that audit until next fiscal year. In its place, we have actually commenced two additional audits that are on the approved work plan. We've started the stormwater audit. In addition, we have also started our grants management audit. And finally, the last slide shows additional audits that we need to commence this year. Communications department, two additional IT audits, and then two required annual audits. I'm happy to answer any questions at this time.
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