City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-02004 12/10/2024 Consent Item 2.
City Auditor's Activity Report for the 1st Quarter of Fiscal Year (FY) 2024/2025 File ID: 2024-02004
Location: Citywide
Recommendation: Pass a Motion: 1) accepting the City Auditor’s Activity Report for the 1st Quarter of FY2024/25; and 2) forwarding to City Council for approval.
Contact: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected], Office of the City Auditor
Presenter: None
Attachments:
1-Description/Analysis
2-City Auditor’s Activity Report for the 1st Quarter of FY2024/25 Description/Analysis
Issue Detail: According to the Council Rules of Procedure, the Budget and Audit Committee shall receive, review, and forward to the council as appropriate, reports, recommendations, and updates from the City Auditor. This report documents the City Auditor’s Activity Report for the 1st Quarter of FY2024/25.
Policy Considerations: The City Auditor’s Activity Report for the 1st Quarter of FY2024/25 is consistent with the Mayor and the City Council’s intent to have an independent audit function for the City of Sacramento.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: None.
Commission/Committee Action: None.
File ID: 2024-02004 12/10/2024 Consent Item 2.
Rationale for Recommendation: This staff report provides the Budget and Audit Committee with information that may be used to meet its responsibility to provide oversight and supervision of the City Auditor.
Financial Considerations: The costs of the projects listed in the Activity Report were mostly funded out of the Office of the City Auditor Budget.
Local Business Enterprise (LBE): None.
July through September 2024 Report Number: 2024/25-04
Q U A R T E R L Y
A C T I V I T Y
R E P O R T
First Quarter of Fiscal Y ear 2024/25
Reports Issued
T h e O f f i c e o f t h e C i t y A u d i t o r i s s u e d s e v e r a l r e p o r t s d u r i n g t h e f i r s t q u a r t e r o f f i s c a l y e a r 2 0 2 4 / 2 5 .
C i t y A u d i t o r ' s
F i s c a l Y e a r 2 0 2 4
A n n u a l R e p o r t
C i t y A u d i t o r ’ s
R e c o m m e n d a t i o n
F o l l o w - U p R e p o r t
f o r t h e S i x - M o n t h
P e r i o d E n d i n g
J u n e 3 0 , 2 0 2 4
C i t y A u d i t o r ’ s
W h i s t l e b l o w e r
H o t l i n e A c t i v i t y
R e p o r t f o r t h e
P e r i o d A p r i l
2 0 2 2 t h r o u g h
J u n e 2 0 2 4
Introduction
T h e Q u a r t e r l y A c t i v i t y R e p o r t h i g h l i g h t s t h e a c t i v i t i e s o f t h e O f f i c e o f t h e C i t y A u d i t o r f o r t h e f i r s t q u a r t e r o f f i s c a l y e a r ( F Y ) 2 0 2 4 / 2 5 . T h i s r e p o r t a l s o i d e n t i f i e s t h e s t a t u s o f t h e C i t y A u d i t o r ' s F i s c a l Y e a r 2 0 2 4 / 2 5 W o r k P l a n p r o j e c t s .
Q u a r t e r l y
A c t i v i t y R e p o r t
f o r t h e p e r i o d
o f A p r i l 2 0 2 4
t h r o u g h J u n e
2 0 2 4
D E I E f f o r t s
T h e O ffi c e ' s R a c i a l a n d G e n d e r
E q u i t y A c t i o n P l a n ( R G E A P ) T e a m d e v e l o p e d a r a c i a l e q u i t y
s t a t e m e n t a n d c o m p l e t e d R G E A P
y e a r - e n d u p d a t e s . S o m e s t a ff a l s o p a r t i c i p a t e d i n t h e C i t y ' s 2 1 - D a y R a c i a l E q u i t y H a b i t B u i l d i n g
C h a l l e n g e .
Other Highlights
T h e f o l l o w i n g h i g h l i g h t s o t h e r a c t i v i t i e s o f t h e O f f i c e o f t h e C i t y A u d i t o r f o r t h i s r e p o r t i n g p e r i o d .
R e c r u i t e d fo r a n d h i r e d a S e n i o r F i s c a l P o l i c y A n a l y s t , J o s e p h
F l e m i ng , t o w o r k u n d e r t h e
P e r fo r m a n c e A u d i t s D i v i s i o n a s t h e C a n n a b i s C o m p l i a n c e A u d i t o r .
T h e O ffi c e a l s o i n i t i a t e d t h e
r e c r u i t m e n t p r o c e s s fo r t h e v a c a n t F i s c a l P o l i c y A n a l y s t p o s i t i o n .
S t a f f V a c a n c i e s Au d i t I n i t i a t e d T h e O ffi c e i n i t i a t e d t h e
S ac r am e n t o C h i l dr e n ’ s F u n d F i s c al Y e ar 2 0 2 3 / 2 0 2 4 B as e l i n e F u n di n g V e r i f i c at i o n .
W h i s t l e b l o w e r
H o t l i n e
T h e O ffi c e r e c e i v e d a n u m b e r o f
w h i s t l e b l o w e r a l l e g a t i o n s .
T h e O ffi c e a l s o w o r k e d w i t h t h e
v e n d o r t o u p d a t e t h e W h i s t l e b l o w e r H o t l i n e ’ s c a s e i n t a k e fo r m , w h i c h h a s r e s u l t e d i n m a n y c o m p l a i n a n t s p r o v i d i n g a d d i t i o n a l d e t a i l s r e l a t e d t o t h e a l l e g a t i o n s .
P e e r S u p p o r t
T h e O ffi c e p r o v i d e d i n s i g h t a n d s u p p o r t t o t h e B a y A r e a R a p i d
T r a n s i t ' s O ffi c e o f t h e I n s p e c t o r G e n e r a l a n d t h e C i t y o f O a k l a n d ' s O ffi c e o f t h e C i t y A u d i t o r a n d
D e p a r t m e n t o f R a c e a n d E q u i t y .
J o r d a n S w e e ne y a s s i s t e d t h e
O ffi c e o f P u b l i c S a fet y
A c c o u n t a b i l i t y i n i t s r e c r u i t m e n t a n d i n t e r v i e w e ffo r t s .
T h e O ffi c e d e v e l o p e d a n d
p u b l i s h e d t h r e e n e w d i v e r s i t y
d a s h b o a r d s t o p r e s e n t C i t y w i d e A p p l i c a n t s , H i r e s , a n d S e p a r a t i o n s d a t a . T h i s d a t a c a n b e u s e d t o
m o n i t o r , m e a s u r e , a n d a n a l y z e
t r e n d s o v e r t i m e a n d h e l p u s e r s m a k e i n fo r m e d d e c i s i o n s .
T h e O ffi c e a d d e d F Y 2 0 2 4 d a t a t o t h e C i t y o f S a c r a m e n t o E m p l o y e e G e n d e r a n d E t h i c D i v e r s i t y
d a s h b o a r d .
D i v e r s i t y
D a s h b o a r d s
FY 2024/25 W ork Plan Assignments In-Progress
A u d i t o f F i r e D e p a r t m e n t E m e r g e n c y M e d i c a l S er v i c es A l t h o u g h t h i s a u d i t i s n o t o n h o l d , p r o g r e s s d u r i n g t h i s r e p o r t i n g p e r i o d h a s b e e n s l o w e r t h a n a n t i c i p a t e d d u e t o d e p a r t m e n t a l r e s o u r c e c o n s t r a i n t s . T h e a u d i t i s c u r r e n t l y i n t h e R e p o r t W r i t i n g p h a s e , a n d a d d i t i o n a l a n a l y s i s i s b e i n g c o n d u c t e d t o i n c o r p o r a t e d a t a f r o m t h e m o s t r e c e n t f i s c a l y e a r .
A u d i t o f t h e C i t y ' s E t h i c s C o m m i s s i o n T h e a u d i t i s c u r r e n t l y i n t h e R e p o r t i n g W r i t i n g p h a s e o f t h e p r o j e c t . A d r a f t w a s p r o d u c e d a n d i s i n t h e p r o c e s s o f b e i n g c i r c u l a t e d i n o r d e r t o o b t a i n a n d r e p o r t t h e v i e w s o f m a n a g e m e n t c o n c e r n i n g t h e f i n d i n g s , c o n c l u s i o n s , a n d r e c o m m e n d a t i o n s .
D e p a r t m e n t o f U t i l i t i e s ' W a t e r a n d W a s t e w a t er F u n d s R e v i e w T h i s p r o j e c t i s c u r r e n t l y i n t h e R e p o r t W r i t i n g p h a s e w i t h t h e c o n s u l t a n t w o r k i n g t o u p d a t e t h e a n a l y s i s a n d r e p o r t b a s e d o n f e e d b a c k f r o m t h e C i t y . D u r i n g t h e l a s t q u a r t e r , t h e c o n s u l t a n t s u b m i t t e d t h e s e c o n d d r a f t o f t h e a n a l y s i s a n d r e p o r t t o t h e C i t y . T h e C i t y r e v i e w e d t h e d r a f t a n d h e l d m u l t i p l e m e e t i n g s w i t h t h e c o n s u l t a n t t o d i s c u s s t h e C i t y ’ s f e e d b a c k .
T h e f o l l o w i n g h i g h l i g h t s t h e s t a t u s o f t h e F i s c a l Y e a r 2 0 2 4 / 2 5 W o r k P l a n a s s i g n m e n t s i n - p r o g r e s s .
T h e a u d i t i s c u r r e n t l y i n t h e f i n a l s t a g e s o f t h e R e p o r t i n g W r i t i n g p h a s e o f t h e p r o j e c t .
D u r i n g t h e l a s t q u a r t e r , c o n s i d e r a b l e w o r k h a s b e e n c o n d u c t e d o n u n d e r s t a n d i n g P o l i c e D e p a r t m e n t c o m p l i a n c e a c t i v i t i e s a n d p r o c e s s e s f o r t r a c k i n g a n d r e p o r t i n g o f m i l i t a r y e q u i p m e n t i n v e n t o r i e s . A d d i t i o n a l l y , s u b s t a n t i a l w o r k h a s b e e n c o m p l e t e d o n b e n c h m a r k i n g t h e d e p a r t m e n t ’ s c o m p l i a n c e a c t i v i t i e s w i t h s i m i l a r l y - s i z e d l o c a l l a w e n f o r c e m e n t a g e n c i e s i n C a l i f o r n i a .
A u d i t o f S a c r a m e n t o P o l i c e D e p a r t m e n t M i l i t a r y E q u i p m e n t U s e P o l i c i e s a n d I n v e n t o r y P r a c t i c es S a c r a m e n t o C h i l d r e n ’ s F u n d F i s c a l Y e a r 2 0 2 3 / 2 4 B a s e l i n e F u n d i n g V e r i f i c a t i o n
W e i n i t i a t e d t h i s p r o j e c t i n S e p t e m b e r 2 0 2 4 a n d h e l d a C i t y w i d e E n t r a n c e C o n f e r e n c e t o p r o v i d e d e p a r t m e n t s w i t h i n f o r m a t i o n a b o u t t h e b a s e l i n e f u n d i n g v e r i f i c a t i o n p r o c e s s a n d i d e n t i f y k e y m i l e s t o n e s i n t h e t i m e l i n e . T h i s p r o j e c t i s i n t h e P r e l i m i n a r y S u r v e y p h a s e a n d a u d i t s t a f f h a v e r e a c h e d o u t t o a l l C i t y d e p a r t m e n t s t o b e g i n i d e n t i f y i n g t h e C i t y ’ s y o u t h p r o g r a m s a n d s e r v i c e s o f f e r e d i n F Y 2 0 2 3 / 2 4 .
F i s c a l Y e a r 2 0 2 3 / 2 4 A u d i t e d C a n n a b i s B u s i n es s O p er a t i o n s T a x A m o u n t f o r t h e S a c r a m e n t o C h i l d r e n ' s F u n d A s w e d e t e r m i n e d t h a t c o n t r a c t i n g w i t h t h e C i t y ’ s e x t e r n a l a u d i t o r s w o u l d b e t h e m o s t e f f i c i e n t u s e o f r e s o u r c e s t o c o m p l e t e t h i s a u d i t , d u r i n g t h e l a s t q u a r t e r , t h e C i t y c o m p l e t e d t h e p r o c u r e m e n t p r o c e s s , a n d a c o n t r a c t i s i n p l a c e . T o c o m p l e t e t h e p r o c u r e m e n t p r o c e s s , w e m e t w i t h t h e e x t e r n a l a u d i t o r s t o d i s c u s s t h e s c o p e o f t h e p r o j e c t , a n s w e r e d i n i t i a l q u e s t i o n s , a n d d e v e l o p e d c o n t r a c t l a n g u a g e .
FY 2024/25 W ork Plan Assignments In-Progress (Continued) A u d i t o f t h e C i t y ' s A n i m a l C a r e S er v i c es O u r o f f i c e e n g a g e d a c o n s u l t a n t t o c o n d u c t a p e r f o r m a n c e a u d i t o f t h e A n i m a l C a r e S e r v i c e s D i v i s i o n . T h e c o n s u l t a n t i s n e a r i n g c o m p l e t i o n o f t h e F i e l d w o r k p h a s e o f t h e p r o j e c t a n d h a s s t a r t e d r e p o r t d r a f t i n g . T h e c o n s u l t a n t h a s b e e n e n g a g i n g i n i n t e r v i e w s , c o n d u c t i n g b e n c h m a r k i n g r e s e a r c h , a n d a n a l y z i n g d a t a .
A u d i t o f t h e C i t y ' s H o m e l e s s R e s p o n s e - M o t e l S h e l t er P r o g r a m T h i s a u d i t i s a s u b s e t o f o u r f i r s t h o m e l e s s r e s p o n s e a u d i t p r o j e c t o n C i t y w i d e a n d s y s t e m w i d e s t r a t e g y a n d c o o r d i n a t i o n . D u r i n g t h i s r e p o r t i n g p e r i o d , w e h a v e c o m p l e t e d t h e P r e l i m i n a r y S u r v e y , R i s k A s s e s s m e n t , a n d d e v e l o p e d t h e f i e l d w o r k a u d i t p l a n . T h e a u d i t i s c u r r e n t l y i n t h e F i e l d w o r k p h a s e o f t h e p r o j e c t .
A u d i t o f t h e C i t y ' s C o m p l a i n t I n v e s t i g a t i o n a n d R es o l u t i o n P r a c t i c e s
T h i s a u d i t h a s b e e n p l a c e d o n a t e m p o r a r y h o l d d u e t o d e p a r t m e n t r e s o u r c e c o n s t r a i n t s . T h e a u d i t w i l l b e r e - i n i t i a t e d w h e n s u f f i c i e n t d e p a r t m e n t r e s o u r c e s a r e a v a i l a b l e .
A u d i t o f t h e C i t y ' s H o m e l e s s R e s p o n s e - P a r t 1 U p o n a c q u i r i n g a p p r o v a l f o r o u r w o r k p l a n o n o u r t w o p r o p o s e d h o m e l e s s r e s p o n s e a u d i t p r o j e c t s , w e i n i t i a t e d a n d c o m p l e t e d t h e R i s k A s s e s s m e n t p h a s e f o r t h e f i r s t a u d i t p r o j e c t , w h i c h a d d r e s s e s C i t y w i d e a n d s y s t e m w i d e s t r a t e g y a n d c o o r d i n a t i o n .
W e a l s o u s e d t h e r e s u l t s o f o u r r i s k a s s e s s m e n t t o c o m p l e t e o u r f i e l d w o r k a u d i t p l a n f o r t h i s f i r s t a u d i t p r o j e c t , w h i c h i s c u r r e n t l y i n t h e F i e l d w o r k p h a s e . w w w . c i t y o f s a c r a m e n t o . g o v / a u d i t o r A u d i t o f t h e D e p a r t m e n t o f U t i l i t i es ' E n er g y U s e D u r i n g t h e l a s t q u a r t e r , w e h e l d t h e E n t r a n c e C o n f e r e n c e w i t h t h e D e p a r t m e n t o f U t i l i t i e s t o k i c k o f f t h i s a u d i t . S h o r t l y t h e r e a f t e r , i t b e c a m e a p p a r e n t t h a t t h e P u b l i c W o r k s D e p a r t m e n t p l a y s a c r i t i c a l r o l e i n t h e C i t y ’ s e n e r g y p r o g r a m s ; t h e r e f o r e , w e c o n d u c t e d a s e c o n d E n t r a n c e C o n f e r e n c e w i t h t h e P u b l i c W o r k s D e p a r t m e n t t o c o l l a b o r a t e . T h i s p r o j e c t i s c u r r e n t l y i n t h e P r e l i m i n a r y S u r v e y p h a s e a n d s u b s t a n t i a l w o r k h a s b e e n d o n e r e s e a r c h i n g a n d l e a r n i n g a b o u t t h e v a r i o u s p r o g r a m s .
T h i s a u d i t h a s b e e n p l a c e d o n a t e m p o r a r y h o l d d u e t o d e p a r t m e n t r e s o u r c e c o n s t r a i n t s . T h e a u d i t i s c u r r e n t l y i n t h e F i e l d w o r k p h a s e , w i t h a s m a l l n u m b e r o f s u b - o b j e c t i v e s l e f t t o c o m p l e t e . W e a n t i c i p a t e r e s u m i n g t h i s a u d i t b y e a r l y 2 0 2 5 .
A u d i t o f t h e T r a n s i e n t O c c u p a n c y T a x