San Diego Audit Committee Meeting – May 12, 2022
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San Diego Audit Committee Meeting – May 12, 2022
The Audit Committee of the San Diego City Council met on Thursday, May 12, 2022, at 10:00 AM. Chair Stephen Whitburn presided, with members Vice Chair Moreno, Committee Member Halpern, and Committee Member Tab Shuri present (Andy Mafia absent). The committee reviewed a performance audit of workplace safety and workers' compensation, the City Auditor's monthly activity report, the FY23 proposed budget for the Office of the City Auditor, and the quarterly fraud hotline report. All actions were taken unanimously.
Consent Calendar
- The committee approved the committee actions from March 16, 2022, by a unanimous vote (motion by Vice Chair Moreno, second by Halpern).
Public Comments & Testimony
- Non-agenda public comment: Mr. Smikowski criticized the city's efforts to make participation equal, arguing that campaign financing disparities undermine equality. He called for campaign spending limits and taxpayer-funded elections.
- No public speakers for agenda items.
Discussion Items
Item 4: City Auditor's Monthly Activity Report
City Auditor Andy Hannow reported that the office issued two reports since the last meeting (workplace safety and workers' compensation audit, and quarterly fraud hotline report). Two audits are in report writing (code enforcement, SDPD body cameras) and four in fieldwork (Mission Bay fund, Fire-Rescue 911 system, Get It Done app, vehicle towing). The office has issued eight reports in FY22 with 57 recommendations. The 101 Ash Street audit won a national award. The committee commended the office.
Item 1: Performance Audit of Workplace Safety and Workers' Compensation
Andy Hannow and audit team (Luis Brazino, Joe Pisek, Racine Shin) presented findings. Direct workers' compensation costs were $40.7 million in FY21; including indirect costs, total could reach $224 million. The city's claims rate is 17% higher than other large California cities. Key issues: some departments (e.g., police, DSD, library) lack core elements of the required safety program; incident investigations are inconsistent; root cause analysis is seldom performed; fraud tracking is not centralized. The audit made 10 recommendations, all management agreed to implement. Chief Compliance Officer Christiana Gauger and Risk Management Director Angela Colton responded, noting ongoing improvements. Committee members Moreno, Halpern, and Tab Shuri discussed cost drivers (including COVID and PTSD presumptions) and expressed support for the audit.
Item 2: Office of the City Auditor's FY23 Proposed Budget
Andy Hannow presented the proposed $4.57 million budget for 22 FTEs. The office has had no significant budget increase in six years. The mayor's proposed budget includes mostly non-discretionary changes. Committee members Halpern encouraged future budget increases given the office's strong return on investment. The motion was to accept and support the staff recommendation (per City Attorney's guidance on charter compliance). Unanimously approved.
Item 3: Quarterly Fraud Hotline Report – FY22 Q3
Senior Fraud Investigator Andy Harida reported 63 reports received; 31 within purview (6 assigned to OCA, 25 to departments). 42 cases were closed during the quarter, leaving 46 open. Eight department-referred cases were substantiated (e.g., undisclosed outside employment, personal use of city vehicle). Six resulted in corrective actions. The committee accepted the report.
Key Outcomes
- Item 1: Motion by Vice Chair Moreno, second by Halpern, to accept the audit report and forward to the City Council. Unanimous.
- Item 2: Motion by Vice Chair Moreno, second by Halpern, to accept and support the staff recommendation for the FY23 budget. Unanimous.
- Item 3: Motion by Chair Whitburn, second by Vice Chair Moreno, to accept the fraud hotline report. Unanimous.
- The meeting was adjourned; next meeting scheduled for June 15, 2022, at 9:00 AM.
Meeting Transcript
Well, good afternoon. I will call to order the audit committee meeting of Thursday, May 12th, 2022. This meeting is being televised and is also being live streamed on the city's website. Members of the public may address the committee here in person. Additionally, today's meeting is being conducted pursuant to California Government Code Section 54953E, which allows the city to use teleconferencing. It enables the public to address the committee via a call-in option or an internet-based service option. The committee consultant will assist members of the public who wish to provide testimony via a call-in or internet-based services option. Participants must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. This will allow for better meeting management between the two platforms and will ensure that the council is able to manage and conduct city business. 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. I will note for the record that committee member Andy Mafia will not be present today. Present. Committee member Halpern. Present. And committee member Tab Shuri. Present. And I'm Stephen Whitburn, so we have a quorum. This committee is fortunate to have several attendees that will greatly contribute to our efforts today, including City Attorney Mara Elliott, City Auditor Andy Hannow, Chief Compliance Officer Christiana Gauger, and Lisa Byrne from the Office of the Independent Budget Analyst. Thanks to each of you for being here today. Members of the public who are here in person and would like to speak should complete a speaker slip located at the entrance of chambers and place it in the box at the speaker's lectern in the front of the room. Please do so in a timely manner to ensure proper meeting management. Members of the public can also join the online webinar by computer, tablet, or smartphone by accessing the link provided online in the preamble language of the agenda on the city's webpage. 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. That information is also available on the agenda. The public may view the meeting on City TV, which is Channel 24 for Cox Communication and Spectrum, or Channel 99 for ATT and Uverse. 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. Please note that if you're watching via C City TV or online, there may be a delay. So please participate using the audio on your phone and mute your TV or computer when it is your turn to speak. Thanks to our City TV staff for broadcasting this meeting. If you're in person, please come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lectern in the order called. If you join the webinar electronically, you'll receive a pop-up notice to click on to unmute your device. If you have called into the meeting by telephone or landline, press star six on your phone to unmute yourself. Please wait until the item to which you wish to speak has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When I introduce the item you would 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 is your turn to speak, he will 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. We will now take up the approval of committee actions of March 16th, 2022. Moncarlos, please proceed with public comment. Thank you, Chair. The public comment period for this item is now open. If you are in person, please sure to have your speaker slips submitted and come up to the reserve seats at the front of the room when your name is called. Members of the public who wish to provide testimony via call-in or an internet based uh-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted. Whichever occurs first. If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you are which uh watching on City TV or the live stream online and would like to call in to the meeting to speak, please call 1669-254-5252. Warm prompted input webinar ID 161-042537 pound. As a reminder, virtual speakers, please raise your hand to speak.
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