CITY COUNCIL
Kevin McCarty, Mayor
Lisa Kaplan, District 1
Roger Dickinson, District 2
Karina Talamantes, Vice Mayor, District 3
Phil Pluckebaum, District 4
Caity Maple, District 5
Eric Guerra, Mayor Pro Tem, District 6
Rick Jennings, II, District 7
Mai Vang, District 8
CHARTER OFFICERS
Mindy Cuppy, City Clerk
Susana Alcala Wood, City Attorney
Farishta Ahrary, City Auditor
Leyne Milstein, Interim City Manager
John Colville, City Treasurer
City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency Successor Agency
City Hall Complex
915 I Street, Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 808-7200
SUPPL
EMENTAL MATERIAL
Description: Attached is supplemental material received after publishing the agenda, which includes revisions to the staff report. The attached staff report replaces the original staff report in its entirety.
For the Meeting of: Tuesday, January 14, 2025 at 2:00 p.m.
Agenda Item: Consent Item 2
2. City Auditor's Activity Report for the 1st Quarter of Fiscal Year (FY) 2024/2025 File ID: 2025-00208
Location: Citywide
Recommendation: Pass a Motion approving the City Auditor’s Activity Report for the
1st Quarter of FY2024/25.
Contact:
Farishta Ahrary, City Auditor, (916) 808-7266, [email protected], Office
of the City Auditor
City of Sacramento Page 1
City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00208 1/14/2025 Consent Item 2.
City Auditor's Activity Report for the 1st Quarter of Fiscal Year (FY) 2024/2025 File ID: 2025-00208
Location: Citywide
Recommendation: Pass a Motion approving the City Auditor’s Activity Report for the 1st Quarter of FY2024/25.
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 1
st 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 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: On December 10, 2024, the Budget and Audit Committee passed a motion to accept the City Auditor’s Activity Report for the 1st Quarter of FY2024/25 and to forward
File ID: 2025-00208 1/14/2025 Consent Item 2.
to the City Council for approval.
Rationale for Recommendation: This staff report provides the City Council 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’s FY2024/25 operating bBudget.
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