City of Oakley
Internal Controls
Introduction: With the adoption of the fiscal year budget the Team has concluded that this would be a perfect time to review the internal financial controls that are here at the City of Oakley. Historically, internal controls relied heavily on segregation of duties, which continues to be the heart of establishing good internal controls; but the accounting profession broadened the definition of internal controls to include establishing a control environment, risk assessment, the flow of information and communication and monitoring.
Control Environment: The control environment is the set of standards, processes and structures that provide the basis for carrying out internal controls across the entity. The control environment starts at the top of any organization. Ethical behavior and management integrity set the tone to establish the organization’s culture. The City of Oakley uses policies and procedures to promote and maintain a proper control environment.
Risk Assessment: Risk assessment is primarily handled by the Finance Division, although all supervisors and managers need to be aware of potential for fraud. You can see how important an organization’s ethical standards and employee culture are to this process.
Control Activities: This is the center of our internal controls. The following are examples of City of Oakley policies and procedures that have established to maintain internal control:
Purchasing and Accounts Payable.
No invoice is processed without an approval signature and account coding.
All purchases over $10,000 require a purchase order or Contract approved by the Department Director, Administrative Services Director and City Manager
Only the Finance Manger or City Manager can print checks. Blank checks are stored in a locked cabinet and in locked room at all times, and required two signatures, the City Manager and Administrative Services Director.
Each accounts payable check number is accounted for through the Financial Accounting system.
Human Resources and Payroll
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Cash Receipts
• All Departments who take payments input those payments into the financial software daily.
• At end of each day a member of the Finance Division will close the register, count cash, and reconcile for deposit. Finance Manager approves and secures cash for each day's deposit.
• All receipts (checks, cash and credit cards) are reconciled at the end of each day and the receipts are posted to the accounting system the following morning after review by the Accountant.
Bank and Investment Reconciliations
General Ledger
• The general operating bank account, payroll bank account and successor agency bank account are reconciled monthly by the Accountant that has no check preparation duties for the accounts. Canceled checks are not provided to the City
although they are available online.
• The Finance Manager reviews and signs each monthly
bank reconciliation.
• The Local Agency Investment Fund (LAIF) and other investment pool accounts (CalTrust) are reconciled quarterly by the Finance Manager.
Each Personnel Action Form, establishing employees’ wages and budget account numbers are signed by the
Administrative Services Director verified with the adopted salary schedule and PAF's are reviewed by the Finance Division and the City Manager.
All blank checks are stored in a locked cabinet and locked room at all times and required two signatures, the City Manager and Administrative Services Director.
All employees’ time sheets are approved by a Department Director and supervisor if applicable and the Payroll Specialist. • All journal entries are reviewed and signed by either the Administrative Services Director or Finance Manager.
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Budget
• The City Manager and Administrative Services Director must sign a budget amendment for all over-budget amounts, with adequate explanation, unless the amendment requires City Council approval per approved policy.
Audits
• The City undergoes a yearly audit. As part of governmental auditing standards, the auditor must review and test the City’s internal controls and issue a separate opinion on the City’s internal control. The City has always received “clean” opinions on our financial report and on the auditors internal control report.
Flow of Information and Communication: Accessibility of financial information to all levels of the organization help to ensure correct and complete recording of financial transactions. Each day the Accounting System, generates daily revenue status and detail reports, expenditure status and detail reports and purchase order status reports which are accessible to all department managers over the City’s network.
Monitoring: Monitoring activities are primarily following up on situations or transactions that come to the Finance Division's attention when processing revenues and expenditures. By following up with the other departments, Team members realize that the City operates with tight controls. This helps set the tone that the Finance Division monitors department financial transactions.
Conclusion: this summary of internal control concepts and specifically how the City works to safeguard the City of Oakley’s assets, is how we ensure the safekeeping of our greatest assets. The City’s Finance Division employees take great pride in the City’s great financial record and strive to continue maintaining effective internal controls, consistent with professional standard and practices, in a very dynamic environment.
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3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.oakleyca.gov
Information Technology Plan
Fiscal Year 2025/2026
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Table of Contents
Message from the City Manager.................................................................................. 1
1. City Profile ............................................................................................................ 3
2. Technology Profile ................................................................................................ 3
2.1. Staff................................................................................................................... 3
2.2. Network Infrastructure....................................................................................... 4
2.3. Hardware .......................................................................................................... 5
2.4. Software............................................................................................................ 5
3. Principles and Mission.......................................................................................... 6
3.1. Principles .......................................................................................................... 6
3.2. Information Technology Mission........................................................................ 7
4. Status of Information Technology Projects for the Prior Fiscal Year ..................... 8
5. Fiscal Year 2025/2026 Planned Information Technology Projects ........................ 8
6. Budget .................................................................................................................. 9
7. Future Projects ................................................................................................... 10 636
Information Technology Plan FY 25/26
1 Message from the City Manager
Dear Mayor Shaw and Councilmembers:
I am pleased to submit the City of Oakley’s first annual Information Technology (“IT”) Plan with the proposed Fiscal Year 2025/2026 (“FY 25/26”) Budget. The IT Plan describes the City’s technology strategy to help guide our technology investments and initiatives for the next Fiscal Year.
In this first iteration of the IT Plan, we continue to focus on the modernization of Oakley’s services through technology. The Plan is designed to align with the technology goals and objectives in the City of Oakley Strategic Plan 2022-2027+ (“Strategic Plan 27+”) to allow Oakley to be a sustainable, responsive, and transparent digital city with easy to use and accessible services for every resident, visitor, business and employee.
With the addition of our first in-house IT Manager in February 2024 and the implementation of a new IT support contract at the beginning of FY 2024/2025, we have made substantial progress in updating and upgrading software and equipment citywide to improve government operations and provide better services. In his first few weeks in the position, the IT Manager fully restored City operations within two weeks after the cyberattack and over the past 15 months, the IT Division has actively secured the City’s technology and increased productivity by:
• Replacing the firewalls in the main building and the Police Department wing of City Hall for increased security.
• Replacing the aging and faulty SAN, removing major security and operational vulnerabilities.
• Replacing the City’s aged backup solution and overhauling backup procedures to bring Oakley in line with best practices including immutable cloud backups. • Bringing the City into compliance with Microsoft licensing requirements, removing potential risk of litigation.
• Removing the open public WiFi hotspot network.
• Creating a Generative Artificial Intelligence (“AI”) Use Policy for staff. • Updating and reimplementing the Email Retention Policy.
This fiscal year, the City reached full compliance and has maintained a zero-vulnerability score in ongoing Department of Homeland Security – Cybersecurity and Infrastructure Security Agency (“CISA”) Cyber Hygiene Scans. The City also rolled out a new and accessible website in February (on budget and on schedule) with an easier to remember URL, up-to-date information and an easy to navigate and modern design.
As reported at City Council meetings over the past year, the City has implemented a new Enterprise Resource Planning system to wholly transform the way departments manage 637
Information Technology Plan FY 25/26
2 our financial data. The rollout of the permitting and licensing software in FY 25/2026 will streamline community development and business management services and the planned future phases will transform planning, inspections, code enforcement and compliance.
The continued expansion of the functionality of this technology solution will provide an unprecedented level of transparency and efficiency in the administration of services to the Oakley community.
I am proud of our many accomplishments and look forward to an even brighter future.
Looking ahead, the City will continue to improve services with proven technologies. The proposed FY 25/26 IT Plan recommends $996,251 from the Information Technology Fund to update, upgrade and maintain technology that enables and enhances City services.
Although the demand for technology investment continues to outpace available resources, the City strategically plans investments in technologies with the most impact.
I look forward to continuing to accomplish our goals together.
Sincerely,
Joshua McMurray
City Manager
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Information Technology Plan FY 25/26
3 1. City Profile
The City of Oakley was incorporated in 1999, making it the youngest of the 19 incorporated cities in Contra Costa County. Located in eastern Contra Costa County, on the western edge of the San Joaquin Valley, it is east of and adjacent to the City of Antioch, north of and adjacent to the City of Brentwood, and west of Bethel Island. Oakley is bordered on the west by California State Route 160. Land uses range from a variety of urban uses in the developed portion of the community and nearby areas to the west and south, to agricultural land to the east and the Sacramento-San Joaquin Delta to the north.
The community is served by five elected officials and 97 full-time employees (when all approved positions are filled), a team of part-time and part-time-seasonal employees, and contractors within the following departments:
• City Manager
• Administrative Services
• Community Development
• Police
• Public Works and Engineering
The City operates on a one-year (annual) budget with the fiscal year running from July 1st through June 30th.
2. Technology Profile
The Information Technology (“IT”) Division is responsible for the hardware, software, and technology infrastructure that supports the City’s operations at its four sites, City Hall, the Public Works Operations Building, the Recreation Center and the Entrepreneur Center.
IT provides technology support services citywide for all City staff, including, but not limited to: data information systems, network infrastructure, cybersecurity, phone system and other communication systems (e.g., mobile devices, radios, email, digital signs, etc.), audio/visual equipment, body-worn cameras, printing and duplication, workflow and document management and physical access control systems. IT does not oversee video surveillance systems nor the City’s Geographical Information System (“GIS”). The Division also provides strategic planning consulting related to managing and maintaining the City’s IT infrastructure citywide, including for parks technology.
2.1. Staff
From the City’s incorporation in 1999 until early 2024, the City’s IT services were solely provided by a Managed Service Provider (“MSP”), a third-party company that remotely managed the IT infrastructure and end-user systems and provided a full-time on-premise help desk technician. The MSP was managed by the Finance Director until mid-2023 when IT shifted to the City Manager’s Office under the Assistant City Manager as part of the citywide reorganization. In early 2024, the City hired its first IT Manager, who assumed 639
Information Technology Plan FY 25/26
4 management of the MSP. The agreement with the MSP was terminated at the end of FY 2023/2024 and the City contracted with a new MSP at the beginning of FY 2024/2025.
The full-time IT Manager manages and conducts the daily operations of the citywide IT portfolio. The IT Manager assists in the development of the IT budget, and manages and implements the City’s IT policies, citywide software agreements and all contracts for IT improvement projects, as well as the City’s contracted IT services:
• Keep It Simple (“KIS”) MSP – one part-time on-premise Desktop Engineer, and remote services; and client, server, infrastructure and security services. • AireSpring – telephone and internet services.
• T-Mobile and Verizon – mobile phone services.
• Canon – printer/copier leases.
The IT Manager reports to the Assistant City Manager, who directs the development of and monitors the IT budget, provides oversight to the IT Manager in the administration of IT policies, serves as the City’s lead website administrator and, as the City’s Public Information Officer, manages all social media platforms and service agreements related to public communications (i.e. electronic newsletter software and the City’s primary graphic design software).
2.2. Network Infrastructure
The City’s operations are based at four separate facilities throughout Oakley: City Hall, the Public Works Operations Building, the Recreation Center and the Entrepreneur Center.
City Hall
City Hall houses all divisions of the City Manager’s Office; the Human Resources and Finance Division of the Administrative Services Department; all divisions of the Community Development Department; the Engineering and Capital Projects Division of the Public Works and Engineering Department; and all divisions of the Police Department.
It includes the City Council Chambers (main Chamber and antechamber).
Public Works Operations Building
The Public Works Operations Building (“PWOB”) houses the Public Works Maintenance Division.
Recreation Center
The Recreation Center houses the Recreation Division of the Administrative Services Department.
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Information Technology Plan FY 25/26
5 Entrepreneur Center
The Entrepreneur Center consists of leased offices and shared meeting spaces for businesses.
City Hall is the central hub from which all other Oakley locations branch. The PD, Recreation Center and Public Works Operations Building are full extensions of the City’s network, while the Entrepreneur Center has minimal connectivity. Redundancy is built into critical points in the network to prevent or reduce downtime. For instance, there are primary and backup fiber connections at City Hall to ensure that we retain an Internet connection in the event that our primary connection goes down.
2.3. Hardware
The City of Oakley houses two main server rooms, one in the main building of City Hall and one in the wing that houses the Police Department. Virtual technology is used to run the majority of the servers for the City. The server room at City Hall houses three physical servers that host 30 virtual servers that provide the majority of the functions for the entire City. Beyond City Hall, a physical server resides within the datacenter at the Police Department to support Active Directory. In all, the City maintains and manages 34 servers using both physical and virtual platforms.
There are approximately 75 physical end-user workstations across all City-staffed sites.
2.4. Software
The City of Oakley standardizes Microsoft (“MS”) Office 365 as the default office suite for word processing, spreadsheets, presentations, and email. The IT Division upgraded all staff members to MS Office 365 in 2022.
All City emails are processed through MS Exchange Online and then accessed by staff using MS Outlook. Spam filtering and malware protection are provided by AppRiver, an online vendor that removes 99% of spam, malware, and viruses before passing the legitimate emails onto the City’s email server for distribution to staff. All emails are then passed through Office 365’s built-in anti-spam filter for an additional layer of protection.
Content filtering of internet traffic is performed by the City’s new firewalls which were installed at the end of 2024. All websites identified as possibly containing viruses, phishing, inappropriate content, or malicious intent are blocked. Endpoint Detection and Response software is installed on all Endpoints within the organization. 641
Information Technology Plan FY 25/26
6 3. Principles and Mission
3.1. Principles
The use of technology in municipal government has increased dramatically since the City’s incorporation, from simply supporting desktop computers and network servers to being a tool for productivity, and technology impacts almost every operation. As demand for technology applications has increased, the need to develop integrated plans has become critical for success. Proper implementation of technology can result in cost reductions, increased staff efficiency, and improved transparency. The IT Division supports government operations by enhancing efficiency across all departments.
The IT Division has four primary goals that support the overall City goals and IT objectives adopted by the City Council in the Strategic Plan 27+:
1. Support and maintain critical infrastructure. The City’s technology infrastructure is aging and requires a focused effort towards modernization.
In particular, three major areas outline our infrastructure direction: the City’s network, telephony, and affordable cloud environments.
2. Prepare and protect City systems. Whether from a natural or man-made emergency, the City’s information systems and communications must be operational and restored quickly if interrupted. From public safety radio communications to network and internet service, disaster preparedness and cyber security protections require constant vigilance.
3. Make City operations more efficient and effective. To provide the next generation of services, our technology needs to create efficiencies in cost and operations. Our data should help guide our way to finding this value, which requires additional sophistication in analytics and data science.
4. Improve customer service experience. Technology is transforming government services to be easier to use and more accessible. Replacing our legacy technologies, redesigning existing practices and innovating new services is key to our modernization efforts.
The IT Division operates on three guiding principles to achieve the goals outlined above:
1. Purpose Driven. All technology projects and implementations should be driven by a purpose of improving a process, enhancing security, increasing efficiency, and/or reducing cost. Technology should not be implemented for the sake of implementing technology. In order to adhere to this principle, major technology projects and implementations should have the support and input of stakeholders, which results in a higher rate of end-user adoption.
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Information Technology Plan FY 25/26
7 2. Based on Value. The solution chosen should be based on best value instead of price alone. Best value is based on neither the highest nor lowest price. Rather, it would be defined as receiving the maximum benefit for the goods or services purchased based on the lowest possible price. As a prerequisite, adequate funding for all technology initiatives should be defined and follow the City’s Purchasing Policy before implementation.
3. Standardization, Integration, Consolidation, and Scalability. These are all critical considerations of any technology initiative. Standardization is the process of defining, procuring, and implementing consistent technologies whether by brand or type in order to achieve lower cost of procurement, minimize complexity of support, and maximize compatibility and interoperability. Integration is the ability for two or more separate systems or solutions to interoperate and communicate together. Consolidation is minimizing the use or maintenance of similar solutions or devices that perform the same function. Scalability is the ability for the solution or system to grow or consolidate along with the needs of the organization with minimal additional investment.
3.2. Information Technology Mission
Whereas the principles are the guidelines under which the IT Division operates, the Division’s mission defines the daily operation and directs which projects are undertaken.
All of the projects proposed in the Information Technology Plan are founded on the mission that the IT Division strives to achieve:
1. Achieve and maintain a high level of support to all City staff by reducing response times and increasing effectiveness in resolving issues.
2. Implement equipment and software solutions to increase efficiencies in processes, systems, and operations.
3. Implement innovative solutions to provide new features and functions to expand the value of City services for its residents and business
4. Reduce costs in operations and ongoing maintenance by identifying and assertively negotiating value-driven support and service contracts to replace or eliminate underutilized or obsolete systems. 643
Information Technology Plan FY 25/26
8 4. Status of Information Technology Projects for the Prior Fiscal Year
In future years, this section will include a description of the IT projects completed in the prior fiscal year and the status of the ongoing projects.
5. Fiscal Year 2025/2026 Planned Information Technology Projects
The Information Technology Plan for FY 25/26 focuses on continuing to improve City operations through the use of technology, updating infrastructure and improving IT’s level of service. The IT Plan is dependent on the adoption of the City’s FY 25/26 Proposed Budget.
Beyond projects that require funding, the IT Division will also be committed to identifying ways to create efficiencies in all divisions and departments with the resources that the City already owns. When a solution or system is implemented, often the training provided to staff only focuses on the essentials and what’s minimally necessary to accomplish the job function.
During this time when budget is limited, the IT Division can provide staff with additional training to enable more effective and efficient use of the City’s existing solutions and systems.
Lastly, an ongoing priority for the IT Division is to continue to improve City operations through the use of technology. The IT Manager regularly meets with departments to seek their input and technological requests. The resulting input is also factored into the Information Technology Plan.
The following table lists the IT Division’s projects slated for the FY 25/26. Each proposed project has been classified according to the IT Division’s mission objectives addressed earlier in this plan. The departments that they benefit are also listed. The table does not include existing software and baseline IT services nor new software implementation. Any software exceeding $25,000 will be included as a project. 644
Information Technology Plan FY 25/26
9 Project Name Project Description Departments
or Divisions
Benefitted
Proposed
Budget
(Estimate)
City Council Chambers
AV Replacement Project
Update and replace the AV
equipment in the City
Council Chambers, which
also serves as the City’s
Emergency Operations
Center
All $150,000
Police Department
Domain Overhaul Project
Fully modernize and
integrate the PD Domain.
Police
Department
$ 35,000
Public Works Operations
Building and Recreation
Center Firewall
Replacement Project
Replace older firewalls with
next generation devices to
bring locations in line with
City Hall and PD.
Public Works
(Maintenance)
and
Recreation
$ 35,000
Total Estimated Cost $220,000
6. Budget
The following table illustrates the revenues allocated to the IT Division for information technology needs in FY 25/26. The budget was created based on the City’s information technology annual ongoing operational expenditures and estimates of the proposed FY 25/26 improvement projects.
Information Technology Fund (703)
Beginning Balance $413,073
FY 25/26 Projected Revenue $976,432
FY 25/26 Proposed Expenditures $996,251
Projected Ending Balance $393,254
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Information Technology Plan FY 25/26
10 7. Future Projects
The IT Division will update the Information Technology Plan on a schedule that coincides with the City’s Annual Budget. The IT Division will pursue the work with departments to identify areas where the injection of technology can increase staff efficiencies resulting in higher productivity, cost reduction, and/or added functionality. Some improvements such as internal staff training, applying best practices and clean-up can often be accomplished without the need for additional funds.
Technology is ever changing, constantly improving to make processes and devices more efficient and less costly. The IT Division is dedicated to seeking out those solutions that best adhere to our guiding principles while achieving the goals adopted in the City’s Strategic Plan and IT’s objectives to support City staff and better serve the City’s residents and businesses.
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