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Inspector General Proposal
April 12, 2022
CHARTER REVIEW COMMITTEE
RiversideCA.gov
2 • On July 21, 2020, the City Council referred granting a publication of an annual report on written complaints or whistle-blower complaints alleging fraud, waste, abuse, or criminal conduct and a potential need for an oversight position of such program to an Ad Hoc Charter Review Committee (CRC) for consideration for placement on the ballot in November, 2021, and/or November, 2022
• In February 2021, the CRC identified an Ad Hoc Committee, from the newly appointed CRC members, to research the need of an oversight position
BACKGROUND
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3 • CRC concluded that an additional position was needed for oversight and tasked the subcommittee with conducting additional research • At the 4/21/21 CRC meeting, it was approved to direct the subcommittee to explore the creation of a new position with recommendations including options of outside audit agency, appointed or elected position, and point of contact
• At the 08/18/21 meeting, the CRC voted on the best option for an oversight position and approved these results to be presented to City Council in September 2021 for discussion
BACKGROUND
RiversideCA.gov
4 • At the 9/7/21 City Council Meeting, CRC members Alia Rodriguez and Chair Pete Benavides presented the CRC’s current recommendation of An elected Inspector General with full subpoena powers and asked for questions and comments from the Council
– Members of The City Council and the Mayor asked 26 questions • Subcommittee members met and answered all questions from Council and presented to full CRC
• City Council provided and extension of committee’s work thru the end of Feb 2022
BACKGROUND
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5 Questions from City Council during 9/7/21
Meeting
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6 • Return on Investment
• Provide equity and fairness for all investigations
• Provide true layer of transparency
• Streamlines processes for reporting fraud, waste, abuse • Single point of contact and single point of responsibility • Growing community requires additional accountability
Justification for Position
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7 Return on Investment
• A recent progress report to Congress found that every dollar invested in inspectors general returns more than $22 in potential savings.
• Office of the Special Inspector General for the Troubled Asset Relief Program • Reported a 29x return on investment from 2010‐2021
• US Department of Labor
• Over the past five years (2015‐2019), every dollar invested in the U.S. Department of Labor (DOL), Office of Inspector General (OIG) resulted in a return on investment of nearly $10 to the federal government and American taxpayers
• Social Security Administration
• In FY 2020, the OIG identified $29 in returns to the government through investigative recoveries and audit findings, for every $1 received through our appropriation. • Jefferson Parish, LA
• Questioned $42M in spending over 10 years, with 42% of recommendations implemented • Office budget averages $1.1M/year = $11M over the same 10 year period • New York City MTA
• Found $22M in savings in 2020
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8 • Met with City Manager and City Attorney as well as consulted with City Clerk
• Met with Riverside County District Attorney, Mike Hestrin, and a Deputy District Attorney
• Spoke with Association of Local Government Auditors
• Spoke with Association of Inspectors General
• Interviewed City Staff and Riverside Citizens
• Countless hours of research by subcommittee
How did we get to this proposal?
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9 Subpoena Powers
1. Full
2. Light
3. None
Structure/Reporting
1. Who does this position report to?
2. What does the structure look
like?
Options Presented to CRC
Job Title Options
1. City Controller
2. Inspector General
3. Chief Accountability Officer
Selection Process
1. Appointed
2. Elected
RiversideCA.gov
10 Subpoena Powers
1. Full
2. Light
3. None
Structure/Reporting
1. Who does this position report to?
2. What does the structure look
like?
Options Chosen by CRC
Job Title Options
1. City Controller
2. Inspector General
3. Chief Accountability Officer
Selection Process
1. Appointed
2. Elected
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11 Inspector General Proposed Charter Summary
• One new Section to the Charter with (9) subsections
• Changes made to 5 existing Charter sections to ensure new IG section remains consistent with Charter
– Section 400, Adding Inspector General to current elected language – Section 401, Adding Inspector General to existing eligibility requirement to hold office – Section 500, Adding when election for Inspector General would take place – Section 601, Adding Inspector General and Office of Inspector to exception list for City Manager to have approval authority over staffing decisions (City Attorney and City Clerk offices are currently exempted) – Section 709, Adding Inspector General to existing Nepotism language RiversideCA.gov
12 Inspector General Proposed Charter Language
• (a) There shall be an Office of Inspector General which shall have the power and duty to provide a full‐time program of investigation, audits, inspections, and operational performance evaluations in accordance with generally accepted auditing standards to provide increased accountability and oversight of entities of city government, special districts and joint powers authorities that the City is a member of and entities receiving funds through the City, to assist in improving agency operations and in deterring and identifying, fraud, waste, abuse, and illegal acts.
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13 Inspector General Proposed Charter Language
• (b) The Office of Inspector General shall be headed by an elected Inspector General, as otherwise provided in the Charter. The Inspector General’s salary shall be commensurate with the Mayor’s salary and benefits.
– November 2022, Inspector General propos al placed on ballot for Riverside voters – June 2023, Election for Inspector General. Winner will be determined by a plurality of voters for initial election
– Future elections will be held at the same time as Wards 2,4,&6 and will be held to same election rules RiversideCA.gov
14 Inspector General Proposed Charter Language
• (c) The City Council shall include in its annual budget or through a supplemental appropriation such appropriations of funds sufficient for the efficient and proper functioning of the Office of Inspector General. At least six months prior to the beginning of each fiscal year, the Inspector General shall provide to the City Manager a budget containing estimates of revenues and expenditures for the Office of Inspector General.
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15 Inspector General Proposed Charter Language
• (d) The Office of Inspector General shall be operationally independent from the City Council, the Mayor, and the offices of the City Manager, City Clerk and City Attorney, none of whom shall interfere with the execution by the Inspector General of his/her powers and duties. "Operationally independent" shall mean that neither the City Council, the Mayor, the offices of the City Manager, City Clerk and City Attorney, nor any employee of the City shall prevent, impair, or prohibit the Inspector General from initiating, carrying out, or completing any audit, investigation, inspection, or operational performance review.
RiversideCA.gov
16 Inspector General Proposed Charter Language
• (e) The Office of the Inspector General may include, but not be limited to, a division of criminal investigations, a division of audit, a division of inspections, and a division of operational performance review.
• (f) The Office of the Inspector General shall have the power of subpoena to require the attendance of witnesses, including persons employed by the City, and the production of books and papers pertinent to any investigation and to administer oaths to such witnesses and to take testimony to the extent permissible by law. 15 16
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17 Inspector General Proposed Charter Language
• (e) The Office of the Inspector General shall exercise such other powers and perform such other duties as may be prescribed by ordinance not inconsistent with any of the provisions of this Charter.
• (h) The Inspector General shall be accorded a seat at the City Council table and shall be entitled to place a matter before the City Council and Mayor and participate in their deliberations, but shall not have a vote. • (i) The Inspector General shall report at least annually the final findings and recommendations from its activities to the City Council at a public meeting.
RiversideCA.gov
18 Inspector General Proposed Ballot Question
Inspector General Shall the City Charter be amended
to create an elected office of Inspector General, with
the first election on June 6, 2023, with four year terms, with the powers and duties to independently
investigate fraud, waste, abuse and illegal acts within city government and to provide annual reports on their
findings and recommendations on an annual basis,
with an appropriate budget, a salary commensurate
with the Mayor’s salary, and subpoena power?
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19 Thank you for your time and
consideration
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