Office of the City
Auditor
New
Councilmembers’
Orientation
Courtney Ruby CPA, CFE
City Auditor
Michael Houston, CIA
Assistant City Auditor
December 2022
Independent City Auditor. Serving Oakland With Integrity.
Office Overview & Structure
• Auditor assumed Office January 7, 2019
and was re-elected in November 2022.
• Term: 4 years
• Authority to audit anything and everything
in the City
• Staffing: 11 FTE’s
• 9 Auditors
• 2 Administrative staff
• Oakland voters approved Measure X in
November 2022, which when
implemented, will increase the office’s
staffing to a minimum of 14 FTE.
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Personal Vision
• Highest standards of
performance and
professionalism
• Serve the public with the utmost
integrity
• Dig Deeper – greater impact
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Mission Statement
To conduct performance audits and
investigations that return in-depth and
meaningful results to the residents of
Oakland by identifying, auditing and
investigating areas of government most
vulnerable to mismanagement, fraud,
waste, and abuse.
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
The City Auditor’s Authority
Section 403 of the City Charter
Office of the City Auditor
The City Auditor shall have the power and duty to:
• Audit all departments and agencies of the City and such other matters as the Council and Mayor may request.
• Audit areas deemed to be in the best interest of the public. • Report to Council the results of such audits.
• Advise and make recommendations to the City Administrator. • Access all city records needed to conduct our work.
Independent City Auditor. Serving Oakland With Integrity.
The Role of Public Sector Auditing
A cornerstone of good public sector governance
Auditors provide unbiased, objective assessments of whether public resources are managed responsibly and effectively to achieve intended results.
Auditors help public sector organizations
• attain accountability and integrity,
• improve operations, and
• instill confidence among residents and stakeholders.
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
The Role of Public Sector Auditing
The public sector auditor’s role supports the governance responsibilities of oversight, insight, and foresight.
• Oversight addresses whether public sector entities are doing what they are supposed to do and serves to detect and deter public corruption.
• Insight assists decision-makers by providing an independent assessment of public sector programs, policies, operations, and results.
• Foresight identifies trends and emerging challenges.
Auditors use tools such as financial audits, performance audits, investigations, and advisory services to fulfill each of these roles.
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
How Does My Office Fulfill Its Role?
• Performance Audits
• Mandated Audits
• Ballot Measure Analyses
• Whistleblower Investigations
• And more…
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
What is a Performance Audit?
Performance audits evaluate the efficiency and effectiveness of government programs to determine if there are ways of making them work better.
We use laws and leading practices as criteria to evaluate City departments and programs and make recommendations when we find opportunities for improvement.
Performance audits answer questions such as, are:
1. Programs achieving their intended objectives or outcomes?
2. Services efficient, effective and equitable?
3. Legal requirements and rules being met?
4. Programs using evidence-based best practices
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Mandated Audits & Their Role In
Establishing Public Trust
Mandated audits - are audits we are required to audit
based upon the City Charter or Municipal Code.
Generally performed every 2 years.
They establish public trust through:
✓Accountability
✓Added Assurance
✓Transparency
✓Entrusting government to meet the will of the people
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Why You Can Rely on the Audit Process
Organizational independence
A formal mandate
Unrestricted access
Objective staff
Competent staff
Auditee involvement
Relevant recommendations
Professional audit standards
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Why You Can Rely on the Audit Process
Generally Accepted Auditing Standards
Our office adheres to the Generally
Accepted Government Auditing Standards,
known as GAGAS/or the Yellow Book
• Provides a framework for conducting high-quality
audits with competence, integrity, objectivity, and
independence.
• Statement of Compliance with these standards is
included in every audit we complete. Essentially,
an affidavit we adhered to GAGAS’s standards.
• Ensures reliable, credible audit reports
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Why You Can Rely on the Audit Process
Who Audits the Auditor?
We receive an External Peer Review
at least once every three years.
• Conducted by a team of independent
auditors from other governmental
jurisdictions.
• Provides assurance that established
policies, procedures, and applicable
standards are being followed.
• Determines if an audit organization has
internal quality control systems in
place and if they are operating
effectively.
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Audits Issued
Office of the City Auditor
Risk-based Audits
1. Police Overtime
2. City of Oakland Financial Condition (2018-19)
3. Workforce Development Board Follow-Up Audit
4. Oakland Fire Department – Fire Prevention Bureau
5. Rent Adjustment Program Follow-up Audit
6. City of Oakland Financial Condition (2019-20)
7. Homeless Encampment Management Interventions
and Activities
8. Oakland Police Department (OPD) Overtime
Recommendation Follow-Up Report on OPD Overtime
Performance Audit Released in 2019
9. The City of Oakland's Homelessness Services: Better
Strategy and Data are Needed for More Effective and
Accountable Service Delivery and Positive Outcomes
for Oakland's Homeless Residents
Mandated Audits
10. Library Services (Measures Q and D)
11. Kids First! Fund for Children and Youth Act
(Measure D)
12. Police Commission & Community Policing Review
Agency (Measure LL)
13. Business Tax Refunds FY 2017-18
14. Limited Public Financing Act 2020 Election
15. Measure M - Emergency Medical Services
Retention Act
16. Measure N - Paramedic Services Act
Independent City Auditor. Serving Oakland With Integrity.
Audits in Progress
Office of the City Auditor
Risk-based Audits
• Recommendation Follow-up Audit
• Planning & Building:
• Development Services Fund
• Internal Controls
Mandated Audits
• Business Tax Refunds
• Measure Q – The 2020 Oakland
Parks and Recreation Preservation,
Litter Reduction, and Homeless Act
Independent City Auditor. Serving Oakland With Integrity.
Ballot Measure Financial Analyses
These reports provide an impartial financial analysis
of City of Oakland ballot measures
Office of the City Auditor
Analyses Competed in 2022
1. Measure Q - Article 34 Affordable Housing Authorization
2. Measure W - Fair Elections Act/Campaign Reform
3. Measure R - Gender Inclusive Language
4. Measure X - Good Governance Charter Reform
5. Measure V - Just Cause Amendment
6. Measure U - New Infrastructure Bond
7. Measure S - Non-Citizen Voting/OUSD
8. Measure Y - Oakland Zoo
9. Measure T - Progressive Business Tax III
10. Measure C - Library Services Retention & Enhancement Act of 1994 Independent City Auditor. Serving Oakland With Integrity.
Whistleblower Program Purpose
Office of the City Auditor
• Deter, detect and defend against
fraud, waste, and abuse.
• 46% of fraud is initially detected
through hotline tips; drops to
30% without hotline and
• 28% of tips come from
employees
Independent City Auditor. Serving Oakland With Integrity.Office of the City Auditor Waste AbuseFraud
Extravagant,
irresponsible use or
management of the
City’s resources.
Ex: Leaving City
vehicle unsecure and
vulnerable to theft
Misusing authority
and access for
personal reasons.
Ex: Using City vehicle
outside of City
purposes
Attempt to personally
benefit through
wrongful or criminal
deception
Ex: theft of City
property, payroll &
timekeeping fraud,
information theft
Independent City Auditor. Serving Oakland With Integrity.
We Work Honestly & Fairly With the Public
• The City Auditor protects
confidentiality.
• Whistleblowers can remain
anonymous.
• Employees are protected from
retaliation.
• We will take appropriate action
based on the investigation results.
• The City benefits!
Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
How to Submit a Confidential Complaint
To file a complaint, call the WHISTLEBLOWER HOTLINE at 1- 888-329-6390 (interpreter available) or SUBMIT A REPORT ONLINE
(Español or 汉语)
All reports go through an independent company
All reports are then reviewed by the Office of the City Auditor Office of the City Auditor
Independent City Auditor. Serving Oakland With Integrity.
Whistleblower Investigations Issued
Office of the City Auditor
2019
• Oakland Promise Investigation
2020
• Controlled Substances
Investigation
2021
• Cannabis Dispensary Application Process
• Flawed Contracting Process: Biohazard Clean-
up Services
• Oakland Parks Recreation & Youth
Development Investigation
2022
• Oakland Fire Prevention Bureau Investigation:
Employees Lack Required Certifications
• Sewer Service Franchise Fee Investigation
• Telecommunication Facilities Sinking Fund
Investigation Report
Independent City Auditor. Serving Oakland With Integrity. ✓Check-ins at any time
✓Briefings on audits and investigations
✓Follow-up on audit presentations to
Council
✓Collaboration on potential audits
✓Annual audit planning meetings
Office of the City Auditor
Open Lines of Communication with
Councilmembers
1 Frank H. Ogawa Plaza
4th Floor, City Hall
Oakland, CA 94612
Ph. (510) 238-3378