Audit Committee Meeting of September 29, 2021: Performance Metrics, Building Acquisition, Board-Up Services, and More
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Audit Committee Meeting Summary – September 29, 2021
The Audit Committee met virtually on September 29, 2021, to discuss several items including the adoption of performance metrics for the city auditor, a confidential recommendation follow-up, a performance audit of major building acquisitions, annual audits of park improvement funds and central stores inventory, a hotline investigation of board-up services, and the quarterly fraud hotline activity report. All motions passed unanimously.
Consent Calendar
- Approval of committee actions from July 28, 2021, passed unanimously.
Public Comments & Testimony
- Lori Saldania (former assemblywoman) spoke during non-agenda public comment urging an audit of the city's response to homelessness during COVID, citing CDC recommendations and alleging police destruction of belongings in the Midway district.
- During item 1, Lori Saldania encouraged the committee to consider audits that save money and lives.
- During item 2, Lori Saldania questioned the independence of audit funding and urged more transparency.
- During item 3, Lori Saldania expressed concern about a culture of deal-making benefiting private interests at public expense.
- During item 4, John Stump commented on regional park fund allocations and questioned the Fairmont Park fire station purchase.
- Lori Saldania also commented on item 4, emphasizing the need for proper staffing for Mission Bay leaseholds.
- During item 6, Freddie Lacara (owner of a board-up vendor) defended his company's practices, stating no fraud.
- During item 7, Lori Saldania flagged a potential misuse of city resources for a political video.
Discussion Items
- Item 1: Final Report – Ad Hoc Subcommittee on City Auditor's Evaluation and Performance Metrics Subcommittee members Halpern and Tabsuri presented a four-step evaluation process with weighted categories. City auditor Andy Hanao expressed support. Committee members praised the collaborative effort. Motion to approve passed unanimously.
- Item 2: Final Report – Ad Hoc Subcommittee on Confidential Recommendation Follow-Up Subcommittee reviewed 24 of 30 recommendations from six confidential reports. Structural budget issues identified. Recommended the city council meet in closed session to discuss funding needs. Motion passed unanimously.
- Item 3: Performance Audit of Major Building Acquisition Process City auditor reported that management agreed to implement all recommendations. City attorney Mara Elliott responded with a rebuttal, which committee members criticized as inaccurate and unproductive. Committee members Tapshuri and others noted the city attorney's memo was misleading. Motion to accept the audit and forward to council passed unanimously.
- Item 4: Performance Audit of Mission Bay and San Diego Regional Parks Improvement Funds (FY2020) Presented by Rod Greek. All revenues and expenditures were compliant. Two findings: understaffing in real estate assets (now being addressed) and a Mission Bay Park Committee member serving beyond the eight-year term limit (Office of Boards and Commissions working on replacement). Motion to accept passed unanimously.
- Item 5: Central Stores Inventory Agreed-Upon Procedures Review (FY2021) Presented by MGO. Inventory variance was very small (under $1,100, about 0.5% of total). Improvements over prior year. Recommendation to procure handheld scanners for inventory management was agreed to by management. Motion to accept passed unanimously.
- Item 6: Hotline Investigation of Board-Up Services Presented by Gina Ruza. SDPD used a single vendor without a contract, lacking policies. Three recommendations: amend municipal code, procure competitive contract, update SDPD procedures. Management agreed. Motion to accept passed unanimously.
- Item 7: Quarterly Fraud Hotline Activity Report (Q4 FY2021) Presented by Gina Ruza. 227 reports in FY2021, 70 in Q4. 46 reports within purview, 32 closed, 53 open. Several substantiated cases leading to corrective actions. Motion to accept passed unanimously.
- Item 8: City Auditor's Monthly Activity Report Andy Hanao reported on issued work products, audits in progress, and the recommendation implementation work plan (RIP) process. Information item; no motion required.
Key Outcomes
- Approved: Performance evaluation metrics for city auditor, to be used for evaluation in October 2021 and closed session discussion on November 17, 2021.
- Approved: Recommendation that city council meet in closed session to discuss confidential audit recommendations and funding needs.
- Approved and forwarded to council: Performance audit of major building acquisitions, including management's revised response and city attorney's rebuttal.
- Approved: Annual audit of Mission Bay and Regional Parks Improvement Funds.
- Approved: Central stores inventory review.
- Approved: Hotline investigation of board-up services.
- Approved: Quarterly fraud hotline activity report.
- Next meeting: Wednesday, October 27, 2021, at 9:00 a.m.
Meeting Transcript
And no member of the public will be in attendance at the meeting in the interest of public health and safety. In addition, this meeting is being televised and live streamed on the city's website, and the city committee liaison has made arrangements for the public to comment using the Zoom webinar platform. We appreciate the public's cooperation. I'm going to go over the specifics on how to join the webinar and we'll give you details on how the public can offer their public testimony. I will now I will now call the audit committee meeting of September 29th, 2021 to order. And I'm going to call the role. Present. Committee member Halpern. Present. Committee member Tapsuri. Present. Committee member Mafia. Okay, each committee. Thank you. Each committee member is attending virtually. Also on the virtual meeting is Christina Gower, Chief Compliance Officer. Welcome. Lisa Byrne with the office of the IBA. Heather Ferber with the City Attorney's Office and our city auditor, Andy Hanao. The public may view the meeting on public television on City TV channel 24 for Cox Communication and Time Warm Time Warner Cable or Channel 99 for ATT or view the meeting online by going to the City Council Committee homepage at Sandiego.gov and selecting the City TV Live Webcast blue button on the right hand side of the page. And members of the public can offer public comment on items by accessing the Zoom webinar online using a desktop, computer laptop, tablet, or smartphone, or by calling into the meeting using a smartphone cell or landline. The link to join the committee meeting webinar by computer tablet or smartphone is listed by the agenda on how to join by iPhone one tap. To join the Zoom webinar by telephone, you may either call 1669-254-5252. When prompted, input webinar ID number 161753 pound. Information is also available on the agenda and will appear on the screen during the public uh comment period for each item. When I introduce the item you'd like to comment on, uh, you're gonna raise your hand by either tapping the raise your hand button on your computer or by pressing star nine on your phone. Uh you will be taken in the order in which you raise your hand and you may only speak once on a particular item. Uh when our committee consultant Kevin Smith indicates that it's your turn to speak, he's gonna call on you by your name as it appears on the Zoom webinar attendee list, or he's gonna read out the last four digits of your phone number. If you've called into the meeting, uh, that is how you'll know it is your turn to speak. Uh and if you've joined the webinar by computer, tablet, or smartphone, you're gonna receive a pop-up notice to select uh to unmute your device. If you've called into the meeting by cell phone or landline, please don't forget to press star six on your phone to unmute yourself. Um, I'm gonna review these instructions briefly again when the public comment period on an item is open. So please wait until the item you wish to speak to has been called before raising your hand to speak. Um, if you raise your hand during a non-comment period, uh, your hand will be lowered. And when you are announced as the next speaker, please unmute yourself and offer your comments. Also, please remember to mute the volume on your TV or computer before you begin to speak. Uh quorum is now present, and we're gonna dispense with the approval of the committee action of July 28th, 2021. Uh, do I have a motion to approve the committee actions? Uh so moved. Wonderful. May I have a second? Alpern second. Halburn second. Okay, and now we're gonna take committee member questions or comments and have each committee member register their vote. Uh, once again, please unmute yourself when you've completed your comment. Uh unmute yourself to make your comments. Uh Vice Chair Lakava. Comments, I vote yes. Committee member Halpern. Uh no comments, I vote yes as well.
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