Quarterly Audit and Performance
Review Report
FY 2021-22, Q3
May 24, 2022
Irella Blackwood, Audit Bureau Director
1 2
FY 2021-22 Audit Plan Portfolio Status
33 Audits and Assessments To Date
Upcoming
34%
Completed
40%In Progress
26%
Audits Completed and Reports Issued
Audit / Assessment Oversight
Body Report Date
SFPUC Revenue Bond Programs Audit:
Phase I CSA, Controller 2/9/2022
3 Audit Highlight:
Revenue Bond Programs Audit: Phase I
Findings:
• RBOC does not have adequate visibility over bond proceeds • Quality assurance audit function not operational June 2017 through Novem
ber 2020
Management concurred with the recommendations.
4 31 bond series
issued as of
June 30, 2021
6 bond series
selected
3 WTR, 3 WWE
Audit Objective: Determine whether project funds were
- Allowable under bond resolutions, laws, regulations
- Properly supported
- Assigned/allocated to correct project(s)
- Subjected to appropriate cost control measures
2 findings
noted
Open CSA Audits and
Recommendations
5 # Audit Title
Report
Issued
Date
Open
Rec
Total
Rec
Months
Open
%
Complete
Target
Close
Date
1 Significant Changes Are Needed to the Design, Monitoring, and Control of the San Francisco Public Utilities
Commission’s Social Impact Partnership Program
12/9/2021 7 7 5 0% 12/31/2022
2 The San Francisco Public Utilities Commission Spent
Revenue Bond Funds for Allowable Purposes but Should
Improve Its Controls Over Reporting and Quality Assurance 2/9/2022 2 2 3 0% 12/31/2022
9 9 0%
Revenue Bond Oversight Committee
External Affairs
Total
6 FY 2021-22, Q4 Outlook
Completing
• CleanPowerSF Privacy Audit
• 2021 Green-e Verification Audit
• 2021 Post Audit
Upcoming
• Revenue Lease Audit: Crystal Springs Golf Partners LP • IT / OT Network Audit
• FY 2021-22 Interim Audited Financial Statements
THANK YOU
Feedback & Questions?
7 OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
Audit Bureau
525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.934.5707
F 415.554.1877
Date: May 24, 2022
To: Commissioner Anson Moran, President
Commissioner Newsha Ajami, Vice President
Commissioner Sophie Maxwell
Commissioner Tim Paulson
Through: Dennis J. Herrera, General Manager
From: Irella Blackwood, Audit Bureau Director
Subject: FY 2021-22 Q3 Audit and Performance Review Report
This memorandum provides the San Francisco Public Utilities Commission (SFPUC) Quarterly Audit and Performance Review (QAPR) report, as of FY 2021-22 Q3.
I. Completed Audits
There was one completed audit since the last quarterly report:
1. SFPUC Revenue Bond Programs Audit: Phase I | February 9, 2022 Report Link: https://openbook.sfgov.org/webreports/details3.aspx?id=3047
The SFPUC Revenue Bond Oversight Committee (RBOC) engaged HKA Global, Inc. and Yano Accountancy Corporation through the Controller’s Office City Services Auditor to audit six bond series subject to their oversight. The objective of the audit was to determine whether revenue bond funds were spent appropriately.
The audit highlighted the below two recommendations. SFPUC is working diligently to implement the recommendations by the stated timelines.
- Coordinate with RBOC to provide a comprehensive project expenditures report to comply with San Francisco Administrative Code Sections 5A.30-5A.36. - Perform quality assurance audits during the 4 phases of a project’s lifecycle.
II. Audit Recommendation Status
9 audit recommendations remain open pertaining to the two audits: SFPUC Revenue Bond Programs Audit: Phase I and the Social Impact Partnership Program Audit. Both audits were issued within the last six months, and all recommendations are expected to be implemented by the end of the calendar year.
If you have questions, please contact me at [email protected].
Attachment: FY 2021-22 Audit Plan, By Status
CC: Nancy L. Hom, Deputy Chief Financial Officer
2 # Quarter
Status
Audit
Type Enterprise / Bureau Audit Name Oversight Body
1 Completed Financial Water
Annual Physical Inventory Count, FY 2020-21 SFPUC, Finance 2 Completed Financial Wastewater 3 Completed Financial Hetch Hetchy Water &
Power
4 Completed Financial Power Green-e Verification Audit, 2020 Center for Resource Solutions
5 Completed Financial Water
Audited Financial Statements, FY 2020-21 Controller 6 Completed Financial Wastewater 7 Completed Financial Hetch Hetchy Water &
Power & CleanPowerSF
8 Completed Financial Business Services,
Finance
Wholesale Revenue Requirement: Statement of
Changes in Balancing Account, FY 2019-20 BAWSCA
9 Completed Financial Business Services,
Finance Post Audit, CY 2020 Controller
10 Completed Financial Business Services,
Finance Sales and Use Tax Audit, 2018-20
CA Department of
Tax & Fee
Administration
11 Completed Financial Business Services,
Finance
Annual Comprehensive Financial Report, FY
2020-21 SFPUC
12 Completed Financial Business Services,
Finance Popular Annual Financial Report, FY 2020-21 SFPUC 13 [Updated]
In Progress Financial Power Green-e Verification Audit, 2021 Center for Resource Solutions
14 [Updated]
In Progress Financial Power Franchise Fee Audit: Pacific Gas & Electric Company Controller
15 [Updated]
In Progress Financial Power Franchise Fee Audit: Energy Center SF LLC Controller 16 [Updated]
In Progress Financial Business Services,
Finance Post Audit, CY 2021 Controller
17 [Updated]
In Progress Financial Business Services,
Finance
Wholesale Revenue Requirement: Statement of
Changes in Balancing Account, FY 2020-21 BAWSCA
18 Upcoming Financial All SFPUC Political Activity Fund Compliance Assessment, FY 2017-18 CSA, Controller
19 Upcoming Financial Water
Annual Physical Inventory Count, FY 2021-22 SFPUC, Finance 20 Upcoming Financial Wastewater 21 Upcoming Financial Hetch Hetchy Water &
Power
Quarterly Audit & Performance Review Report
FY 2021-22 Audit Plan, By Status
As of March 31, 2022
Status
Completed: 14
In Progress: 9
Upcoming: 12
Total: 33
3 # Quarter
Status Audit Type Enterprise / Bureau Audit Name Oversight Body 22 Upcoming Financial Business Services, Finance Single Audit (OMB Circular A-133), FY 2020-21 OMB
23 [Updated]
Upcoming Financial Water
Interim Audited Financial Statements,
FY 2021-22 Controller 24 [Updated]
Upcoming Financial Wastewater
25 [Updated]
Upcoming Financial Hetch Hetchy Water & Power
& CleanPowerSF
26 Completed Performance External Affairs Social Impact Partnership Program Audit CSA, Controller
27 In Progress Performance Infrastructure Public Integrity Assessment: SOLIS Procurement CSA, Controller
28 In Progress Performance Business Services, ITS CleanPowerSF Privacy Audit CPUC 29 In Progress Performance Infrastructure SSIP Program Management Contract Audit CSA, Controller
30 Upcoming Performance Business Services, ITS IT / OT Network Audit CSA, Controller 31 Upcoming
Concessions,
Lease
Revenue
Real Estate Services Revenue Lease Audit: Crystal Springs Golf Partners LP CSA, Controller
32 [Updated]
Completed
Revenue
Bond
Oversight
Committee
RBOC SFPUC Revenue Bond Programs Audit:
Phase I RBOC
33 [Updated]
In Progress
Revenue
Bond
Oversight
Committee
RBOC SFPUC Revenue Bond Programs Audit:
Phase II RBOC