San Diego Audit Committee Meeting - July 26, 2023

The Audit Committee met on July 26, 2023, with Chair Stephen Whitburn, Vice Chair Moreno, and members Halpern, Tabshuri, and Mafia present, forming a quorum. The Committee heard presentations from the Office of the City Auditor, received public comment, approved the FY24 audit work plan, and accepted two performance audits. No agenda or minutes were available for this meeting; this summary is based solely on the meeting transcript.

Public Comments & Testimony

• During approval of the June 14, 2023 committee actions, Lori Saldania commented that unused emergency housing trailers and climate action plan concerns were not being effectively addressed.
• In non-agenda public comment, speakers requested audits or expressed positions on: marijuana business fees, taxes, and youth access (Terry Ann Skelly, Peggy Walker, Kathleen Lippitt); campaign finance and media rankings (Dan Smikowski); homeless program outcomes and city assets (Lori Saldania); smart streetlight and ALPR surveillance transparency (Blair Beekman); and general criticism of city spending and surveillance (an attendee identified as 'the original').
• On the classified hiring audit, public commenters included Joyce, Civil Service Commission member Will Moore, Lori Saldania, and 'the original.' Views ranged from strong support for collaboration and modernization to concerns about root causes, equity, and the audit's scope.
• On the brush management audit, commenters Blair Beekman, Lori Saldania, and 'the original' discussed wildfire preparedness lessons from Berkeley/Oakland, the use of native plants and goats, and the potential consolidation of brush management responsibilities.
• On the risk assessment and work plan, commenters suggested additional audits of homelessness programs, surveillance technology, and the Pure Water program, and raised concerns about transparency and community participation.
• On the fraud hotline and activity report items, commenters asked about hotline follow-up procedures, whether elected officials are covered, health concerns related to body cameras, inventory of cots and trailers, and the city's hiring timeline.

Performance Audit of the Classified Employee Hiring Process

• The audit found that the city took an average of nine months to fill a classified vacancy, and applicants typically started seven months after applying.
• Hiring departments were responsible for about 70% of the hiring timeline. The longest single step was the 109 days hiring departments took to submit a requisition to the personnel department.
• Once a requisition was submitted, the process took about 184 days, compared with an average of about 130 days at comparable local government organizations, making the city 42% slower.
• The audit documented at least 67 required hiring steps and more than 90 pages of interview-related forms.
• Key findings included a lack of centralized oversight, no transparent timeline tracking, no goals for hiring duration, and a personnel department focused on fairness sometimes to the detriment of efficiency and effectiveness.
• The Office of the Independent Budget Analyst asked questions about root causes and implementation capacity. Management and the personnel department agreed to all recommendations.
• The committee voted unanimously to accept the report and forward it to the City Council.

Performance Audit of Brush Management on City-Owned Land

• The audit estimated that about 3,200 acres of city-owned land lie within very high fire hazard severity zones and within 100 feet of structures, managed by at least 10 city departments.
• Fire Rescue was found to lack proactive monitoring, inspection, and reporting for brush management on city-owned land.
• Only the Parks and Recreation Department's Open Space Division, managing about 1,200 acres, had a regular, systematic brush management program. Transportation and Public Utilities efforts were largely reactive.
• The audit identified about 83 acres of paper streets adjacent to Open Space-managed land that were not being systematically maintained, creating a patchwork approach and increased wildfire risk.
• The report noted the 2007 Witch Creek fire caused over $1 billion in regional property damage, while the city's open space brush management budget averaged less than $5 million per year between FY19 and FY23.
• Management agreed to all seven recommendations, contingent on available resources. The committee voted unanimously to accept the report and forward it to the City Council.

FY24 Citywide Risk Assessment and Audit Work Plan

• The City Auditor's Office received more than 80 suggested topics and proposed a work plan containing 22 projects for fiscal year 2024.
• Proposed audits included purchasing and contract management, facilities maintenance, grants, fleet maintenance, fire rescue overtime, environmental services, Pure Water, IT/cybersecurity areas, the fraud hotline, and recommendation follow-up.
• The office reported that it completed 76% of its FY23 work plan and established a goal of completing 90%.
• The committee voted unanimously to approve the FY24 audit work plan.

Fraud Hotline Quarterly Report - FY23 Q4

• The City Auditor reported 268 fraud hotline reports in FY23, the highest in the past five years, compared with 226-238 in prior years.
• In the fourth quarter, 89 reports were received: 10 were assigned to the City Auditor, 30 to city departments, and 49 were outside the hotline's jurisdiction.
• Starting with 44 open cases and adding 40 new city-related cases, 84 cases were active; 29 were closed, leaving 55 open at quarter's end.
• Approximately 38% of closed investigations were substantiated or resulted in other corrective action.
• This item was presented as an information item; no vote was taken.

City Auditor Monthly Activity Report

• The office issued the brush management and classified hiring audits, containing a total of 19 recommendations.
• Eight audits were in progress: four in writing, two in fieldwork, and two in planning, including the body camera IT security review, street maintenance, SDPD overtime, Mission Bay, Housing Commission property acquisition, and pothole re-review.
• A performance auditor recruitment was announced, and former Assistant City Auditor Kyle Elser has rejoined the office as a returning retiree.
• This item was informational; no action was required.

Key Outcomes

• Approved the June 14, 2023 committee actions unanimously.
• Accepted and forwarded the classified employee hiring process audit to the City Council unanimously.
• Accepted and forwarded the brush management on city-owned land audit to the City Council unanimously.
• Approved the FY24 citywide risk assessment and audit work plan unanimously.
• Received the FY23 Q4 fraud hotline report and the City Auditor monthly activity report as information items.
• The next regularly scheduled audit committee meeting is at 9:00 a.m. on Wednesday, September 20, 2023.