DISTRIBUTION DATE:
MEMORANDUM
TO: HONORABLE MAYOR &
CITY COUNCIL
FROM: Courtney A. Ruby
City Auditor
SUBJECT: Informational Report From The
City Auditor On The Status Of
Required Audits
DATE: October 10, 2022
INFORMATION
Attached is an informational report on the status of mandated audits performed by the Office of the City Auditor.
These mandated audits are required as set forth in specific ballot measures successfully passed by Oakland voters or by ordinance and approved by City Council.
This informational report will be presented to the Finance and Management Committee Meeting on October 10, 2022 at 1:30pm.
Respectfully submitted,
Office of the City Auditor / Courtney A. Ruby
City Auditor, Office of the City Auditor
For questions, please contact Michael C. Houston, Assistant City Auditor at [email protected]
Attachment
-- City Auditor’s Office - Report on Status of Required Audits – October 2022
Attachment A
October 2022 Status of Required Audits
Mandated Audits
_____________________________________________________________________________________________________________________________ _____________________ *Due to resource limitations, the City Auditor’s goal is to conduct these required audits biennially. Howeve r, due to the COVID-10 pandemic, staff vacancies, and increased mandated workload, the Office was unable to complete these audits biennially. These audits had been previously conducted by t he Office multiple times. Audit findings have been insignificant and therefore these audit areas are considered low risk.
# Required Audit Background/Audit Objectives Department Status Next Planned Audit 1 Business Tax Refunds* The Municipal Code requires the City Auditor to annually audit business tax refunds on a
sample basis to determine if these refunds
were paid correctly, properly approved, and
management controls are sufficient.
Finance In Progress (to cover FYs 2018-
19, 2019-20, and 2020-21). We
plan to issue the audit report in
December 2022.
Planned for
December 2023.
2 Limited Public Financing
Act
The City Auditor was required to audit the
administration of the Limited Public Financing
Act (LPFA) every two years after the City
Council elections to assess whether the
Public Ethics Commission has adequate
internal controls to ensure the process for
qualifying and awarding public funds complies
with the intent of the requirements of the
LPFA.
Public
Ethics
Commission
Issued October 29, 2021
(covered the November 2020
election).
Requirement of
biennial post-
election audits of
the LPFA
eliminated by City
Council in May
2022.
3 Measure D – Kids First!
Oakland Fund for
Children and Youth Act*
The City Auditor is required to assess whether
the City has satisfied the Children and Youth
Services Baseline Spending and Set-Aside
requirements annually.
Finance Issued Nov 2020 (covered FY
2016-2017 and FY 2017-
2018).
Planned for June
2023 (to cover FY
2018-19, FY 2019-20,
and FY 2020-2021).
4 Measure M – Emergency
Medical Services
Retention Act*
The City Auditor is required to conduct annual
audits to determine whether the Oakland Fire
Department used parcel tax monies in
accordance with the purposes of the
measure--for emergency medical services.
Fire Audit is in progress. It will be
issued in October/November
2022 (covering FY 2017-18, FY
2018-19, FY 2019-20, and FY
2020-21 along with the Measure
N audit).
To Be Determined.
Attachment A
October 2022 Status of Required Audits
Mandated Audits
_____________________________________________________________________________________________________________________________ _____________________ *Due to resource limitations, the City Auditor’s goal is to conduct these required audits biennially. Howeve r, due to the COVID-10 pandemic, staff vacancies, and increased mandated workload, the Office was unable to complete these audits biennially. These audits had been previously conducted by t he Office multiple times. Audit findings have been insignificant and therefore these audit areas are considered low risk.
# Required Audit Background/Audit Objectives Department Status Next Planned Audit 5 Measure N – Paramedic
Services Act*
The City Auditor is required to conduct annual
audits to determine whether the Oakland Fire
Department used parcel tax monies in
accordance with the purposes of the
measure--for paramedic services.
Fire Audit is in progress. It will be
issued in October/November
2022 (covering FY 2017-18, FY
2018-19, FY 2019-20, and FY
2020-21 along with the Measure
M audit).
To Be Determined.
6 Measure Q – Library
Services Retention and
Enhancement Act*
The City Auditor is required to audit the
Library Department to determine whether the
Library has spent tax proceeds as intended by
the measure and complied with the Library
Services Retention and Enhancement Act that
created a parcel tax to raise revenues to fund
library services. In June 2022, Measure Q was
extended by the voters, through the passage
of Measure C, which requires biennial audits
by the City Auditor.
Library Issued February 11, 2021
(covering FY 2017-18 and FY
2018-19).
Planned for October
2023 (to cover FY
2019-20, FY 2020-21,
FY 2021-22, and FY
2022-23 in
conjunction with the
Measure D Library
Services audit).
7 Measure D – Library
Services*
The City Auditor is required to perform an
annual audit to ensure accountability and
proper disbursement of all revenue collected
by the City from the special tax imposed by
this Ordinance, in accordance with the
objectives stated and in compliance with
provisions of California State Law.
Library Issued February 11, 2021
(covering FY 2017-18 and FY
2018-19).
Planned for October
2023 (to cover FY
2019-20, FY 2020-21,
FY 2021-22, and FY
2022-23 in
conjunction with the
Measure Q Library
Services audit).
Attachment A
October 2022 Status of Required Audits
Mandated Audits
_____________________________________________________________________________________________________________________________ _____________________ *Due to resource limitations, the City Auditor’s goal is to conduct these required audits biennially. Howeve r, due to the COVID-10 pandemic, staff vacancies, and increased mandated workload, the Office was unable to complete these audits biennially. These audits had been previously conducted by t he Office multiple times. Audit findings have been insignificant and therefore these audit areas are considered low risk.
# Required Audit Background/Audit Objectives Department Status Next Planned Audit 8 Measure W – Vacant
Property Tax
The City Auditor is required to perform audits
to ensure accountability and proper
disbursement of Measure revenue collected
by the City for the following purposes: to
support a variety of identified services and
programs for homeless people; to preserve
existing affordable housing and produce new
affordable housing; to provide code
enforcement and cleanup of blighted
properties and remedy illegal dumping; and to
pay the City’s costs of administering the tax.
Finance Planned to begin in January
2023.
Scheduled for Fall
2023 (Scope to be
determined).
9 Measure Q – Parks
Preservation, Litter
Reduction, and
Homelessness Support
The City Auditor is required to perform
biennial audits to ensure accountability and
proper disbursement of revenue collected by
the City from the special tax imposed by this
Ordinance, in accordance with the objectives
stated herein and in compliance with
provisions of California State Law.
Public Works,
Human
Services,
Parks,
Recreation,
and Youth
Development,
City
Administration
Audit is in Progress. Planned for January
2023.