City of Sacramento
Personnel and Public Employees Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00911 7/25/2023 Discussion Item 2.
Annual Report and Performance Evaluation for City Council Appointive Officer - City Auditor File ID: 2023-00911
Location: Citywide
Recommendation: Receive annual report and pass a Motion forwarding to the City Council for review.
Contact: Jorge Oseguera, City Auditor, (916) 808-7270, [email protected], Office of the City Auditor
Presenter: Jorge Oseguera, City Auditor, (916) 808-7270, [email protected], Office of the City Auditor
Attachments:
1-Description/Analysis
2-Council Staff Linkage: City Auditor
3-Office of the City Auditor Activity Report for FY 2022/23 4-Office of the City Auditor Proposed Performance Measures and Goals for FY 2023/24 5-External Quality Control Review and Certificate of Compliance Description/Analysis
Issue Detail: The mayor and city council is committed to performing regular annual reviews of its appointive officers.
The annual report and appointed officer evaluation is intended to move forward to the city council.
The city council will meet in closed session, per Government Code section 54957(b), to provide feedback on past accomplishments and to give direction on the workplan for the upcoming year.
Overview
The Office of the City Auditor provides independent, objective, and reliable information regarding the City's ability to meet its goals and objectives, and establish an adequate system of internal controls.
In many cases, this involves verifying compliance with laws and regulations, assessing the efficiency and effectiveness of the City's operations, and identifying internal control weaknesses and failures.
The City Auditor also prepares persuasive audit reports with recommendations to mitigate or eliminate the areas of concern.
File ID: 2023-00911 7/25/2023 Discussion Item 2.
The City Council appoints the City Auditor independent of other City Offices to promote and enhance honest, efficient, effective, transparent, and accountable City government. The City Auditor reports directly to City Council and has full responsibility for the direction and management of the Office of the City Auditor. The City Auditor works closely and interfaces with the City Council, Audit Committee, Charter Officers, Department Directors, and Division Managers.
City of Sacramento Charter § 77 City Auditor establishes the following:
The city council shall appoint a city auditor and shall prescribe the qualifications, duties, and compensation of such officer. The city auditor shall independently assess and report on city operations and services; shall assist the council in the conduct of budgetary inquiries and in the making of budgetary decisions; and shall have such other powers and duties as may be prescribed by state law and by ordinance or resolution of the city council. The city auditor shall appoint all other members of the city auditor’s office.
City Code Section 2.18 expands on what is established in the City Charter. Some of the City Auditor’s key responsibilities include:
· By April 15th each year, the city auditor shall submit an annual work plan to the city council for approval.
· The city auditor shall prepare a written report of the results of each audit conducted and will be responsible for retaining a copy as a permanent record. The city auditor shall periodically review audit recommendations and investigations as practical to determine if responsive action has been taken. The city auditor may request status reports from audit subjects regarding actions taken to address audit findings and recommendations. · The city auditor shall conduct audits of city departments, offices, boards, commissions, and committees as directed by the council.
· Audits shall be conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS) promulgated by the Comptroller General of the United States of America. · The city auditor shall manage the city’s whistleblower hotline and determine if allegations of fraud, waste, abuse, or illegal acts need further investigation. · The city auditor shall assist the council’s budgetary inquiries and budgetary decisions. · The city auditor shall make recommendations to the city council in connection with the city auditor’s audits, investigations, analyses, studies, and reports.
The attached linkage policy report will be used by the City Auditor to inform the City Council in closed session of the City Auditor’s compliance with the City Council’s expectations detailed in the Linkage Policy and any issues or concerns that the Auditor needs to discuss with the City Council.
The other attachments will be used to support and expand on the compliance with Council expectations and summarize the Office’s accomplishments over the past year.
Policy Considerations: Council Rules of Procedure, Chapter 18.
File ID: 2023-00911 7/25/2023 Discussion Item 2.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Clear communication and performance metrics are at the core of the work of the council and the city. To evaluate council appointive officers on a consistent basis, the Personnel and Public Employee (P&PE) Committee has the role and responsibility of developing and leading annual performance metrics and evaluations.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
Council Staff Linkage: City Auditor
Sc
ope: Council Directed
P
olicy Contact
Lawrence Carr, Chair of Governance Ad Hoc Committee
City Council Member, District 8
(916) 808-5071
[email protected]
P
olicy Number: 003
Date of Adoption: 06-26-2018
Resolution No.: 2018-0259
Monitoring Method: City Auditor Report
Frequency: Annually, based on appointment date
A. T
he City Auditor provides independent, objective, and reliable information regarding the City's ability to meet its goals and objectives. The City Auditor promotes honest, efficient, effective, transparent, and accountable City government.
B. T
he City Auditor reports directly to the City Council. The City Council is responsible for hiring, evaluating, and terminating the City Auditor.
C. T
he City Auditor shall not cause or allow any practice, activity, decision, or organizational circumstance that is illegal, unethical, imprudent, or in violation of commonly accepted business and professional ethics.
D. T
he City Auditor shall provide applicable monitoring reports to the City Manager for consolidation into a comprehensive citywide report.
E. Th
e City Auditor shall treat the council as a whole and be responsive to individual council members except where substantial resources are required to fulfill a request.
F. T
he City Auditor shall submit an annual audit plan to the City Council for approval. The annual audit plan may be amended during the year with the approval of the City Council.
The City Auditor is responsible for managing the City’s Whistleblower Hotline. The City Auditor will also perform special projects and investigations as directed by the City Council.
2 Council Staff Linkage: City Auditor
G. The City Auditor shall conduct audits in accordance with Generally Accepted Government Auditing Standards (GAGAS) promulgated by the Comptroller General of the United States of America. The City Auditor shall be subjected to a peer review at least once every 3 years and maintain a Certificate of Compliance with GAGAS.
H. The work of the auditor shall provide reasonable assurance regarding the achievement of objectives in the following areas:
1. Adherence to plans, policies, and procedures.
2. Compliance with applicable laws and regulations.
3. Effectiveness and application of administrative and financial controls.
4. Effectiveness and efficiency of operations.
5. Reliability of data.
6. Safeguarding assets.
7. Accuracy of monitoring reports.
I. The City Auditor, in the performance of his or her duties, shall have unlimited access to all activities, records, property, and personnel, unless restricted or prohibited by law. The City Auditor shall not directly audit or investigate the office of any elected official unless the City Council or the elected official requested the review.
J. The City Council shall review the results of all audits and reports from the City Auditor.
Audit reports shall be agendized for City Council discussion and approval. In addition, the City Auditor shall inform the City Council of the results of any substantiated whistleblower investigations. The City Auditor shall inform the City Council when he or she reasonably determines that an audit indicates a significant financial, operational, or reputational risk to the City Council. In all cases, reports shall be sent to the City Council and those in management, who are in positions to see that action is taken on audit findings and recommendations.
Office of the City Auditor Ac�vity Report For FY 2022/23
The Office of the City Auditor’s mission is to provide a catalyst for improvements of municipal opera�ons, promote credible, efficient, effec�ve, fair, focused, transparent, and a fully accountable City Government.
In order to keep the City Council informed of the City Auditor’s work, the City Auditor reports on a regular basis to the City Council regarding its Ac�vity Reports, Recommenda�on Follow-up reports, and Whistleblower Hotline Ac�vity reports. For example, the following table details the status of audit projects as of June 2023.
Status of the City Auditor’s FY 2022/23 Audit Plan
Preliminary
Survey
Risk
Assessment Fieldwork Report
Wri�ng
Report
Issuance
Date
Assignments Completed
Risk Assessment of the City’s Revenue
Sources Completed Completed Completed N/A N/A
Language Accessibility Gap Analysis, Survey
Results, and Policy Recommenda�ons Completed Completed Completed Completed 22-Dec Audit of the Cannabis Code Enforcement Unit Completed Completed Completed Completed 22-Oct Audit of the City’s Financial Condi�on Completed Completed Completed Completed 22-Sep Execu�ng A Contract with the Wrong En�ty
and Awarding Funding Without Writen
Agreements Compromised the City’s Ability to
Audit Wide Open Walls and David Sobon
Events
Completed Completed Completed Completed 22-Jul
Assignments Pending Presenta�on To the
Council
2022 Diversity Assessment of Boards,
Commitees, and Commissions Completed Completed Completed Completed 23-Jul Audit of the Police Department’s Property
and Evidence Division – Part 1 Completed Completed Completed Completed 23-Aug Assessments of Revenues and Expenses
Associated with the City's COVID-19 Response
- Report No. 5
Completed Completed Completed Completed 23-Aug
Audit of the Department of U�li�es
Supervisory Control and Data Acquisi�on
(SCADA) System
Completed Completed Completed Completed 23-Sep
Assignments in Progress
Ethics Commission Assessment Completed Completed Completed In Progress Audit of Fire Department EMS Completed Completed Completed In Progress Audit of the Police Department’s Property
and Evidence Division – Part 2 Completed Completed In Progress Audit of the City’s Complaint Inves�ga�on
and Resolu�on Prac�ces Completed Completed In Progress
Audit of Homeless Response In Progress
Audit of the Transient Occupancy Tax In Progress
Sacramento Children and Youth Health and
Safety Act (Measure L) NA NA In Progress
City Auditor Dashboards
To promote transparency and accountability, our office maintains several dashboards that City Council, City employees, and the public can use to analyze certain informa�on. These include dashboards on audit recommenda�ons, whistleblower hotline ac�vity, the City of Sacramento Community Survey, and several others on Diversity.
For example, the Office of the City Auditor created the City of Sacramento Gender and Ethnic Diversity Dashboard which provides interac�ve data on the gender and ethnic composi�on of City employees over �me. The figure below is a screenshot of the dashboard. Users can analyze City employee demographic data by filtering for different variables.
Office Of the City Auditor Gender and Ethnic Diversity
As shown in the table below, the City of Sacramento is a very diverse community, and the Office of the City Auditor does well to reflect in its staff the gender and ethnic diversity of the City of Sacramento.
White
Hispanic
Asian
Black or African
American
Two or More
Races
Middle Eastern
or North African
Filipino
American Indian
or Alaska Native
Native Hawaiian
or Other Pacific
Islander
Other
Total Population
2020 City Population (524,943 Total) 30% 29% 17% 13% 6% NA 3% 0.5% 2% 0.7% 524,943 City Auditors Office 2021 30% 30% 10% 10% 10% 10% 0.0% 0% 0.0% 0% 10 City Auditors Office 2022 33% 33% 11% 11% 0% 11% 0.0% 0% 0.0% 0% 9 City Auditors Office 2023 20% 40% 20% 10% 0% 10% 0.0% 0% 0.0% 0% 10 Male
Female
Other
Total
2020 City Population (524,943 Total) 49% 51%
City Auditors Office 2021 40% 60% 10
City Auditors Office 2022 44% 56% 9
City Auditors Office 2023 50% 50% 10
Office of the City Auditor Performance Metrics and Goals for FY 2023/24
Office of the City Auditor City key deliverables:
• Did the Office of the City Auditor receive a cer�ficate of compliance with Generally Accepted Government Audi�ng Standards (GAGAS) within the last three years? • Did the Office of the City Auditor present the proposed work plan by April 15th? • Did the Office of the City Auditor provide the City Council with ac�vity reports regarding audits, recommenda�ons, and whistleblower �ps and inves�ga�ons? Office of the City Auditor Performance Goals:
• 80% of work plan completed or ini�ated within the Fiscal Year • 100% of staff meet Con�nuing Professional Educa�on requirements of GAGAS • 95% of audit findings accepted by the City Council
• 95% audit recommenda�ons accepted by the City Council • 90% recommenda�ons in agreement with City Management
TheAssociationofLocalGovernmentAuditorsAwardsthis
CertificateofCompliancetothe
CityofSacramentoOfficeoftheCityAuditor
Recognizingthattheorganization’sinternalqualitycontrolsystemwassuitablydesignedandoperatingeffectivelytoprovidereasonableassuranceofcompliancewithGovernmentAuditingStandardsforauditandattestationengagementsduringtheperiodJanuary1,2019throughDecember31,2021.
Corrie Stokes
CorrieStokesALGAPeerReviewCommitteeChair