San Diego Audit Committee Meeting Summary – March 16, 2022
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San Diego Audit Committee Meeting Summary – March 16, 2022
The Audit Committee of the San Diego City Council met on March 16, 2022, at 9:00 a.m. via teleconference. The meeting focused on reviewing the city's internal financial controls, monitoring the implementation of audit recommendations, and receiving a monthly activity report from the City Auditor. Key actions included accepting reports, requesting status updates on overdue recommendations, and directing follow-up work plans.
Consent Calendar
- Approval of Minutes (Feb 16, 2022): Unanimously approved.
Public Comments & Testimony
- Mr. Schmiehovsky (public comment on non-agenda item): Raised concerns about the interim San Diego Housing Commissioner not disclosing his salary during a prior City Council meeting, stating he felt uncomfortable and requesting proper address in future.
Discussion Items
- Item 1: Annual Report on Internal Financial Controls (Calendar Year 2021)
- Presented by Jeff Hill, Assistant Director of Finance. The report summarized management's evaluation of internal controls using the COSO framework, noted no material impacts from the pandemic, and highlighted a clean audit opinion and GFOA awards. The committee accepted the report unanimously and forwarded it to the full Council.
- Item 2: Office of the City Auditor’s Recommendation Follow-Up Report (Period Ending Dec 31, 2021)
- Presented by City Auditor Andy Hanau, Deputy Auditor Danielle Knighton, and Assistant Auditor Matt Helm. The report covered 196 open recommendations from 48 audits. As of the reporting period, 24 recommendations had been implemented, with 170 remaining in process. Key highlights included:
- TAP Program (Recommendation 7, Hotline Investigation): HR attempted to renegotiate pricing but was unsuccessful; cost to city is minimal. OCA concurred with dropping the recommendation as no longer applicable.
- Improper Free Trash Collection for STROs (Recommendation 1, Hotline Investigation): Administration determined legislative action is needed. OCA recommended keeping the recommendation in process until compliance is achieved through legislation.
- SDPD Complaint Forms (Recommendation 8, Data Analysis Audit): SDPD declined to keep complaint forms in all vehicles, citing supervisor involvement as best practice. OCA recommended keeping the recommendation open to ensure accessibility.
- Departmental updates were provided by various city departments (e.g., Development Services, Public Utilities, HR, Economic Development, etc.) for their specific open recommendations.
- Presented by City Auditor Andy Hanau, Deputy Auditor Danielle Knighton, and Assistant Auditor Matt Helm. The report covered 196 open recommendations from 48 audits. As of the reporting period, 24 recommendations had been implemented, with 170 remaining in process. Key highlights included:
- Item 3: City Auditor’s Monthly Activity Report (Information Item)
- City Auditor Andy Hanau summarized recent and planned audits, including audits of workers' compensation, 911 system, body cameras, code enforcement, and more. He also discussed progress on a ballot measure for independent legal counsel for the Audit Committee, noting the City Attorney declined to assign outside counsel but agreed to assign in-house counsel. No action was taken on this item.
Key Outcomes
- Approved the annual report on internal financial controls and forwarded it to the City Council.
- Accepted the Recommendation Follow-Up Report with the following specific actions:
- Directed that the STRO free trash collection recommendation (Hotline Report) remain in process until full compliance is achieved through legislative action.
- Authorized dropping the TAP program recommendation (Hotline Report) as no longer applicable.
- Directed that the SDPD complaint forms recommendation (Data Analysis Audit) remain in process until fully implemented.
- Requested status updates on three overdue audits to the appropriate City Council committees: (a) Advanced Metering Infrastructure Implementation, (b) Public Utilities Customer Service Call Center, and (c) Economic Development Department's Business and Industry Incentives Program.
- Requested the City Auditor to work with the Economic Development Department on a Recommendation Implementation Work Plan (RIP) for the Business and Industry Incentives Program audit (Recommendation 1, Audit 18-015).
- No action taken on the monthly activity report.
- The next Audit Committee meeting is scheduled for April 20, 2022, at 9:00 a.m.
Meeting Transcript
Greetings everyone and welcome to today's meeting of the audit committee. Thank you very much for being with us this morning. California Government Code Section 54953G allows the city to use teleconferencing and to provide the public with an opportunity to address the committee via a call-in option or an internet-based service option. As such, uh many of the committee members are participating via Zoom, and no members of the public are in physical attendance in the interest of public health and safety. However, the committee liaison is arranged for the public to make comments using the Zoom webinar platform. As we go forward, I'll go over the specifics on how to join the webinar and we'll give details on how people can offer public testimony. At this time, I will call to order the audit committee meeting of Wednesday, March 16th, 2022. And I will now call the roll. Vice Chair Vivian Moreno. Present. Committee member Stuart Halpern. I see Committee Halpern here. Committee member Andy Mafia. Present. And Committee Member Tofiq Tabshuri. Here. And I'm Stephen Whitburn, so we have a quorum. The committee is fortunate to have several permanent attendees from our city government, Lisa Byrne and Charles Modica from the Office of the Independent Budget Analyst, the Honorable Mara Elliott, the San Diego City Attorney. Christiana Gogger, the Chief Compliance Officer, and of course Andy Hanow, the city auditor. Additionally, this committee welcomes our district one council member, the Honorable Joe Lakava, who will be briefly participating later this morning. Thanks to each of you for being here and being with us today. The public may view the meeting on City TV, which is Channel 24 for Cox Communication and Spectrum, or Channel 99 for ATTU verse, or you may view the meeting online by going to the City Council Committee's homepage at Sandiego.gov and selecting the City TV Live Webcast Blue button on the right-hand side of the page. Thank you to our City TV staff for broadcasting our meeting this morning. Members of the public can offer public comment on items by accessing the Zoom webinar online or by calling into the meeting. The link to join the committee meeting webinar online is listed on the agenda under How to Join by iPhone 1 tab. To join the Zoom webinar by telephone, you may dial either 1 669-254-5252 or 1-646-828-7666. And when prompted, input webinar ID 161-042-5337 pound. This information is also available on the agenda. When I introduce the item you'd like to comment on, please raise your hand by either tapping the raise your hand button on your device or by pressing star nine on your phone. When our committee consultant Juan Carlos Leiva indicates that it's your turn to speak, he'll call you by your name or he'll read out the last four digits of your phone number. At that time, please unmute your phone by tapping the unmute button on your device or by pressing star six on your phone. Also, please mute the volume on your TV or computer before you begin to speak. At this time, we'll take up the approval of the committee actions of February 16th, 2022. The public comment period for the approval of the committee actions is now open. To raise your hand to speak, select the raise your hand button or press star nine. Each speaker will have two minutes. Chair Woodburn, at the moment there's no bulk speakers in the queue. Thank you very much, Juan Carlos. Well, at this time then I will invite comments or questions at a motion from my colleagues on the approval of the committee actions, and we'll start with Vice Chair Moreno. Happy to make a motion to move staff to move the minutes. Chair Moreno. Committee member Halpern. I would second the motion and vote yes. All right. So why don't we just go ahead and go through each committee member? If you have any comments, uh please feel free to offer them at that time. Otherwise, uh go ahead and register your vote and we'll start again with Vice Chair Moreno. Moreno, yes. Committee member Halpern. Uh for whatever reason I think you were muted, Committee Member Halpern.
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