OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Diego Audit Committee Meeting – January 24, 2024

Audit CommitteeWednesday, January 24, 2024
BodySan Diego, California
SessionAudit Committee
DateWednesday, January 24, 2024
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
2:55

Good morning, and welcome to the audit committee meeting of January 24th, 2024.

3:01

Uh, our committee liaison, Natalie Kessler will go over instructions for today's meeting.

3:07

Thank you, Chair Moreno.

3:08

While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom Ovenar platform.

3:19

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes.

3:24

The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

3:30

This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct the city business.

3:58

Committee member Tab Shuri.

3:59

Here.

4:21

If you're in person, please complete a speaker's lip located at the entrance of chambers and place it on top of the box indicated at the speaker's lecture to the front of the room.

4:28

Please do so in a timely manner to ensure proper meeting management.

4:31

In-person testimony will conclude before virtual testimony begins.

4:34

Members of the public can also join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's website.

4:42

If you need to participate by telephone, you may dial 1669-2545252.

4:47

The webinar ID is 1607-8861 pound.

4:51

This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item.

5:00

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the closes.

5:03

And please note that if you're watching via City TV 24 or online, there may be a delay.

5:07

So please participate via the audio on your phone and mute your TV or computer when it is your turn to speak.

5:12

If you wish to speak on our particular item, wait for that item to be called, then raise your hand to speak by tapping the raise your hand icon, or if you're a call-in participant, star nine on your cell phone or landline.

5:22

If you raise your hand during a non-comment period, your hand will be lowered.

5:26

Chair.

5:27

Thank you, Natalie, for reviewing those instructions for the benefit of the public.

5:31

A quorum is now present, and we will now uh dispense with the approval of the committee actions of November 15, 2023.

5:40

Natalie, please proceed.

5:42

Thank you, Chair.

5:43

The public comment period for the past committee actions is now open.

5:46

If you have already joined the Zoom webinar online or by phone and wish to speak on the past committee actions of November 15th, 2023, please raise your hand at this time.

5:54

Chair, we have not received any speaker slips in chambers, but we have one hand currently raised in the queue.

6:00

You will have one minute to speak, the original.

6:05

Please provide your comments.

6:08

Thank you.

6:08

Yeah.

6:09

So with the minutes we're dealing with the trust surveillance ordinance, fighting warrants and the urban area security initiative.

6:17

Um we seem to be continuing to um amend and do many things with this trust ordinance that is leaving the public feeling like there is no trust or transparency going on with it.

6:31

Um and this urban area security initiative is a little bit um, you know, we uh something that also we should be more concerned about our open border and not the people in the urban community who could possibly be a terrorist um because uh, you know, I mean, well, some of the illegals that could actually be there, but I feel like we're going after the people and we need to be securing and making sure that our people are safe and um that there isn't some you know sleeper cell that's going to wake up because we continue to let people cross the border.

7:07

Um, and as Blake or Blair always says about the body worn cameras, you know, are those something that are going to be causing radiation or illness to the officers.

7:17

Thank you.

7:18

And Chair, that will conclude public comment on the past committee actions.

7:21

Thank you.

7:22

We will now vote on the approval of the committee actions of November 15th, 2023.

7:27

Happy to make a motion, if I may get a second.

7:31

Wonderful, thank you.

7:32

We have a motion by myself and a second by council member Whitburn.

7:36

And now we're gonna take um, let's go ahead and vote in the system.

7:44

And the motion passes unanimously.

7:46

Thank you.

7:47

We're now gonna take up non-agenda public comment.

7:49

Um, just to remind folks the committee members of respect and appreciate the public's input and are fully committed to protecting every participant's free speech right at council and committee meeting.

8:01

Uh Natalie, please proceed with non-agenda public comment.

8:05

Per rule 2.7, non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda but within the subject matter jurisdiction of the committee.

8:14

Each speaker will have two minutes.

8:15

If you've already joined the Zoom webinar online or by phone, please raise your hand at this time if you have non-agenda public comment.

8:20

And chair, we have not received any speakers lips here in chambers, so we will move to the virtual queue.

8:25

We currently have two hands raised, and I will begin the five-minute timer for all those to indicate if they wish to speak on non-agenda public comment.

8:32

Our first speaker is the original.

8:34

Please provide your comments.

8:37

Um, yes, so yesterday at the um uh council meeting.

8:41

Um, I do Moreno appreciate you not voting to put forward their surveillance ordinance, whether or not it's for the same reasons that I probably wouldn't.

8:50

It's still um I appreciate that because I feel like it's um completely being rushed.

Discussion Breakdown — Share of Meeting
Audit Follow-up███████████████████████████████████████████43%
Public Comment███████████████15%
Budget███████████████15%
Procedural██████6%
Parks and Recreation██████6%
Purchasing and Contracting████4%
Public Finance███3%
Surveillance Technology██2%
Public Engagement██2%
Summary of Proceedings

San Diego Audit Committee Meeting – January 24, 2024

The Audit Committee convened on January 24, 2024, to review financial reports, audit findings, and the office's budget proposal. The meeting featured a clean audit opinion for the FY2023 ACFR, updates on inventory and park improvement funds, and a debate on the City Auditor's FY2025 budget. All but one item received unanimous approval.

Consent Calendar

  • Approval of committee actions from November 15, 2023: passed unanimously.

Public Comments & Testimony

  • Past minutes (trust surveillance ordinance): A speaker expressed concern about the trust surveillance ordinance amendments, lack of transparency, and questioned body-worn camera radiation risks.
  • Non-agenda public comment:
    • A speaker thanked Chair Moreno for not advancing the surveillance ordinance and called for audits of fraud, waste, and abuse in smart streetlights and ALPR.
    • Dan Smikowski, candidate for mayor, shared a personal story about fiscal frugality.
    • Joyce (District 3) praised the committee as a "dream team" and thanked them for their work.
  • Item 1 (ACFR): Public commenter Joyce thanked Finance and MGO, reiterated concerns about structural budget deficits, and asked about internal controls.
  • Item 3 (Parks Improvement Funds): Joyce applauded progress on recommendations; a speaker questioned spending on artificial turf and its toxicity.
  • Item 5 (Auditor Accomplishments): Joyce praised the office's solutions-oriented approach; a speaker asked about whistleblower protection and the unsafe driving hotline.
  • Item 4 (Budget): Joyce called the presentation a model for budget discussions; a speaker opposed competitive salary increases given the city's deficit.
  • Item 6 (Fraud Hotline): A speaker asked about the scope of OCA's authority in mitigating fraud after cases are closed.
  • Item 7 (Monthly Activity): Joyce welcomed new staff; a speaker expressed concern about bias in audits due to climate agenda.

Discussion Items

  • Item 1: FY2023 Annual Comprehensive Financial Report (ACFR) – Finance and external auditor MGO presented a clean audit opinion with no material weaknesses or significant deficiencies. Two new GASB standards (94 and 96) were implemented. Chair Moreno conducted a detailed Q&A with MGO, confirming independence, no management override, and a conservative accounting approach. The committee received the report and passed a motion to approve unanimously.
  • Item 2: Central Stores Inventory Agreed-Upon Procedures Review FY2023 – MGO reported minor exceptions due to human error and recommended automated scanning. Purchasing & Contracting updated that previous scanners did not interface with the SAP system; a new RFP is in progress. Committee members expressed frustration over the wasted scanner purchase. Motion to accept the report passed unanimously.
  • Item 3: Performance Audit of Mission Bay and San Diego Regional Parks Improvement Funds FY2022 – City Auditor's office presented findings: all revenues properly recorded, expenditures compliant, four of eight prior recommendations implemented. Chair Moreno noted that three of 11 Mission Bay Park Committee seats are still vacant. Motion to accept the report passed unanimously.
  • Item 5: City Auditor's Annual Activities and Accomplishments Report for Calendar Year 2023 – OCA reported 16 reports issued, 96% recommendation agreement rate, 55 recommendations implemented, and nine ALGA Knighton awards (including a second consecutive win). Staff training and website redesign highlighted. Motion to accept the report passed unanimously.
  • Item 4: Office of the City Auditor's FY2025 Proposed Budget – The administration requested a 2% cut; OCA proposed a 1.2% cut ($62,000) by holding vacancies, preserving salary competitiveness, and making it one-time. Chair Moreno argued the office's return on investment justifies the budget; Councilmember Whitburn preferred to wait until June. The motion to recommend the alternative proposal (1.2% cut, one-time, no additional cuts) passed 4-1, with Whitburn dissenting.

Key Outcomes

  • Approved minutes of November 15, 2023 (unanimous).
  • Received and approved the FY2023 ACFR (unanimous).
  • Accepted the Central Stores Inventory agreed-upon procedures report (unanimous).
  • Accepted the FY2022 Mission Bay and Regional Parks Improvement Funds performance audit (unanimous).
  • Accepted the City Auditor's FY2023 accomplishments report (unanimous).
  • Recommended to City Council the OCA's FY2025 budget proposal (1.2% cut, one-time, no additional reductions) – passed 4-1 (Whitburn no).
  • Received informational items: Fraud Hotline Q2 FY2024 report and Monthly Activity Report (Nov/Dec 2023). No action required.
  • Meeting adjourned to next regular meeting on February 14, 2024.

Meeting Transcript

Good morning, and welcome to the audit committee meeting of January 24th, 2024. Uh, our committee liaison, Natalie Kessler will go over instructions for today's meeting. Thank you, Chair Moreno. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom Ovenar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct the city business. Committee member Tab Shuri. Here. If you're in person, please complete a speaker's lip located at the entrance of chambers and place it on top of the box indicated at the speaker's lecture to the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can also join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's website. If you need to participate by telephone, you may dial 1669-2545252. The webinar ID is 1607-8861 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the closes. And please note that if you're watching via City TV 24 or online, there may be a delay. So please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on our particular item, wait for that item to be called, then raise your hand to speak by tapping the raise your hand icon, or if you're a call-in participant, star nine on your cell phone or landline. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Natalie, for reviewing those instructions for the benefit of the public. A quorum is now present, and we will now uh dispense with the approval of the committee actions of November 15, 2023. Natalie, please proceed. Thank you, Chair. The public comment period for the past committee actions is now open. If you have already joined the Zoom webinar online or by phone and wish to speak on the past committee actions of November 15th, 2023, please raise your hand at this time. Chair, we have not received any speaker slips in chambers, but we have one hand currently raised in the queue. You will have one minute to speak, the original. Please provide your comments. Thank you. Yeah. So with the minutes we're dealing with the trust surveillance ordinance, fighting warrants and the urban area security initiative. Um we seem to be continuing to um amend and do many things with this trust ordinance that is leaving the public feeling like there is no trust or transparency going on with it. Um and this urban area security initiative is a little bit um, you know, we uh something that also we should be more concerned about our open border and not the people in the urban community who could possibly be a terrorist um because uh, you know, I mean, well, some of the illegals that could actually be there, but I feel like we're going after the people and we need to be securing and making sure that our people are safe and um that there isn't some you know sleeper cell that's going to wake up because we continue to let people cross the border. Um, and as Blake or Blair always says about the body worn cameras, you know, are those something that are going to be causing radiation or illness to the officers. Thank you. And Chair, that will conclude public comment on the past committee actions. Thank you. We will now vote on the approval of the committee actions of November 15th, 2023. Happy to make a motion, if I may get a second. Wonderful, thank you. We have a motion by myself and a second by council member Whitburn. And now we're gonna take um, let's go ahead and vote in the system. And the motion passes unanimously. Thank you. We're now gonna take up non-agenda public comment. Um, just to remind folks the committee members of respect and appreciate the public's input and are fully committed to protecting every participant's free speech right at council and committee meeting. Uh Natalie, please proceed with non-agenda public comment.

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