City of Sacramento
Personnel and Public Employees Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01080 7/22/2025
Annual Report and Performance Evaluation for City Council Appointive Officer - City Auditor File ID: 2025-01080
Location: Citywide
Recommendation: Receive annual report and pass a Motion forwarding to the City Council for review.
Contact: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected], Office of the City Auditor
Presenter: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected], Office of the City Auditor
Attachments:
1-Description/Analysis
2-Office of the City Auditor Annual Report for FY 2024/25 3-Presentation
Description/Analysis
Issue Detail: The mayor and city council are committed to performing regular annual reviews of its appointive officers.
The annual report and appointed officer evaluation process is intended to move forward to the city council. As appropriate, 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 establishes 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: 2025-01080 7/22/2025
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, Budget and 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.
Policy Considerations: Council Rules of Procedure, Chapter 18.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
File ID: 2025-01080 7/22/2025
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.
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O v e r v i e w , C i t y C h a r t e r , a n d
C i t y C o d e
M i s s i o n , P h i l o s o p h y , a n d V i s i o n F i s c a l Y e a r 2 0 2 5 W o r k P l a n
K e y D e l i v e r a b l e s a n d
P e r f o r m a n c e G o a l s
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O f f i c e o f t h e C i t y A u d i t o r T e a m a n d D e m o g r a p h i c s
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G o a l s a n d O b j e c t i v e s
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 2 Honorable Mayor, Councilmembers, and Community Members, I am pleased to present the Fiscal Year 2025 Annual Report for the Office of the City Auditor.
Over the past year, our Office has continued to strengthen its role in promoting transparency, accountability, and continuous improvement across City operations. As the City Auditor, I remain committed to fostering strong partnerships with City Council, City management, and community stakeholders to ensure our work supports meaningful, positive change.
This year, we completed several impactful projects, including the Audit of the City's Homeless Response: City Motel Program, an area of significant community interest and investment. We also completed the Audit of Sacramento Police Department's Military Equipment Use Policy and Inventory Practices. Additionally, we successfully completed and passed our triennial external peer review, demonstrating our ongoing commitment to meeting professional auditing standards and delivering high-quality, objective, and reliable work. These efforts underscore our dedication to providing independent, actionable information that supports informed decision-making.
In addition, the Office made important strides toward improving our own operations. We enhanced our stakeholder communications, implemented new tools to clarify the audit process, and worked towards refining our internal procedures to align with updated Generally Accepted Government Auditing Standards. As of the end of Fiscal Year 2025, our vacancy rate stood at 20 percent; however, with the City Council's support in maintaining these positions through the budget process, we are actively working to fill these vacancies to ensure we have the resources needed to execute our ambitious work plan.
Looking forward, I am committed to maintaining the high standards of professionalism and rigor that the City and its residents expect of this Office. We will continue working to strengthen public confidence by providing fair, balanced, and meaningful assessments of City programs and services.
Thank you for your continued support.
Respectfully,
Farishta Ahrary, CPA, CFE, PMP
City Auditor
[email protected]
(916) 808-7266
Transmittal Letter
Fiscal Year 2025 Annual Report 03
O v e r v i e w , C i t y C h a r t e r , a n d
C i t y C o d e
O v e r v i e w
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 p r o v i d e s i n d e p e n d e n t , o b j e c t i v e , a n d r e l i a b l e i n f o r m a t i o n r e g a r d i n g t h e C i t y ' s a b i l i t y t o m e e t i t s g o a l s a n d o b j e c t i v e s, a n d e s t a b l i sh a n a d e q u a t e s y s t e m o f i n t e r n a l c o n t r o l s . I n m a n y c a s e s , t h i s i n v o l v e s v e r i f y i n g c o m p l i a n c e w i t h l a w s a n d r e g u l a t i o n s , a s s e s s i n g t h e e f f i c i e n c y a n d e f f e c t i v e n e ss o f t h e C i t y ' s o p e r a t i o n s, a n d i d e n t i f y i n g o p p o r t u n i t i e s f o r i n t e r n a l c o n t r o l i m p r o v e m e n t s.
I n N o v e m b e r 2 0 1 8 , t h e S a c r a m e n t o C i t y G o v e r n m e n t A c c o u n t a b i l i t y a n d E f f i c i e n c y A c t ( M e a s u r e K ) w a s p a s s e d b y v o t e r s . T h i s e s t a b l i s h e d t h e C i t y A u d i t o r a s a c h a r t e r o f f i c e r a n d c o m b i n e d t h e d u t i e s o f t h e C i t y A u d i t o r a n d t h e I n d e p e n d e n t B u d g e t A n a l y s t . T h e C i t y A u d i t o r r e p o r t s d i r e c t l y t o C i t y C o u n c i l a n d h a s f u l l r e sp o n si b i l i t y f o r t h e d i r e c t i o n a n d m a n a g e m e n t 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 . S e c t i o n 7 7 o f t h e C h a r t e r s t a t e s t h e C i t y A u d i t o r " s h a l l i n d e p e n d e n t l y a s s e s s a n d r e p o r t o n C i t y o p e r a t i o n s a n d se r v i c e s; sh a l l a ssi s t t h e c o u n c i l i n t h e c o n d u c t o f b u d g e t a r y i n q u i r i e s a n d i n t h e m a k i n g o f b u d g e t a r y d e c i si o n s; a n d s h a l l h a v e s u c h o t h e r p o w e r s a n d d u t i e s a s m a y b e p r e sc r i b e d b y s t a t e l a w a n d b y o r d i n a n c e o r r e s o l u t i o n o f t h e c i t y c o u n c i l . " C i t y C o d e
S a c r a m e n t o C i t y C o d e S e c t i o n 2 . 1 8 . 0 5 0 o u t l i n e s t h e d u t i e s o f t h e C i t y A u d i t o r . S o m e o f t h e d u t i e s o u t l i n e d i n c l u d e :
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 4 C i t y C h a r t e r
O v e r v i e w , C i t y C h a r t e r , a n d C i t y C o d e C o n d u c t i n g a u d i t s o f C i t y d e p a r t m e n t s, o f f i c e s, b o a r d s, c o m m i s si o n s, a n d c o m m i t t e e s a s d i r e c t e d b y t h e c o u n c i l .
M a n a g i n g t h e C i t y ' s W h i s t l e b l o w e r H o t l i n e a n d d e t e r m i n i n g i f a l l e g a t i o n s o f f r a u d , w a s t e , a b u s e , o r i l l e g a l a c t s n e e d f u r t h e r i n v e s t i ga t i o n .
A s s i s t i n g t h e C o u n c i l ' s b u d g e t a r y i n q u i r i e s a n d b u d g e t a r y d e c i si o n s a s d i r e c t e d b y t h e C i t y C o u n c i l .
M a k i n g r e c o m m e n d a t i o n s t o t h e C i t y C o u n c i l i n c o n n e c t i o n w i t h t h e C i t y A u d i t o r ' s a u d i t s, i n v e s t i g a t i o n s , a n a l y s e s , s t u d i e s , a n d r e p o r t s.
I f r e q u e s t e d b y a n i n d i v i d u a l C o u n c i l m e m b e r , a u d i t i n g t h a t C o u n c i l m e m b e r ' s o w n o f f i c e t h r o u g h a n i n d e p e n d e n t o u t s i d e a u d i t o r .
T h e C i t y C o d e a l s o o u t l i n e s t h e C i t y A u d i t o r ' s a c c e ss t o a l l so u r c e s o f i n f o r m a t i o n , p r o p e r t y , a n d p e r s o n n e l r e l e v a n t t o t h e p e r f o r m a n c e o f a n a u d i t , u n l e ss r e s t r i c t e d o r p r o h i b i t e d b y l a w .
I n a d d i t i o n , t h e C i t y C o d e p r o h i b i t s a n y p e r s o n f r o m d i r e c t l y o r i n d i r e c t l y c o e r c i n g o r a t t e m p t i n g t o c o e r c e t h e C i t y A u d i t o r r e l a t i v e t o t h e C i t y A u d i t o r ' s e x a m i n a t i o n s, a u d i t s, o r a p p o i n t m e n t o r r e m o v a l o f a n y e m p l o y e e b y t h e C i t y A u d i t o r .
M i s s i o n , P h i l o s o p h y , a n d
V i s i o n
O f f i c e M i s s i o n
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 ' s m i s s i o n i s t o p r o v i d e a c a t a l y s t f o r i m p r o v e m e n t s o f m u n i c i p a l o p e r a t i o n s a n d p r o m o t e a c r e d i b l e , e f f i c i e n t , e f f e c t i v e , e q u i t a b l e , f a i r , f o c u se d , t r a n sp a r e n t , a n d f u l l y a c c o u n t a b l e C i t y g o v e r n m e n t .
P h i l o s o p h y
I n d e p e n d e n c e : M a i n t a i n i n d e p e n d e n c e i n f a c t a n d a p p e a r a n c e , a n d r e m a i n f r e e f r o m p e r s o n a l , e x t e r n a l , a n d o r g a n i z a t i o n a l i m p a i r m e n t s t o e n su r e a u d i t f i n d i n g s, o p i n i o n s, c o n c l u s i o n s , j u d g m e n t s , a n d r e c o m m e n d a t i o n s a r e i m p a r t i a l .
O b j e c t i v i t y : C o n d u c t a l l p r o j e c t s o b j e c t i v e l y , f a c t u a l l y , a n d w i t h o u t p r e c o n c e i v e d i d e a s, n o t i o n s , b i a s e s , o r v e s t e d i n t e r e s t s . B a se a l l c o n c l u si o n s a n d r e c o m m e n d a t i o n s o n a f u l l r e v i e w o f r e l e v a n t i n f o r m a t i o n a n d o n o p e n - m i n d e d c o n si d e r a t i o n o f o p p o si n g v i e w p o i n t s.
T e c h n i c a l A c c u r a c y : U t i l i z e s t r i c t q u a l i t y a s s u r a n c e p r o g r a m s t o e n su r e s t a f f e x e r c i se d u e p r o f e s s i o n a l c a r e , a d e q u a t e l y p l a n a u d i t s , a n d p r e p a r e w o r k p a p e r s t h a t c o n t a i n su f f i c i e n t a n d c o m p e l l i n g e v i d e n c e t o s u p p o r t a n y s t a t e m e n t s o f f a c t i n r e p o r t s.
V i s i o n
I m p r o v e C i t y S e r v i c e s : P r o v i d e i n d e p e n d e n t , o b j e c t i v e , a n d r e l i a b l e i n f o r m a t i o n r e g a r d i n g t h e C i t y ' s a b i l i t y t o m e e t i t s g o a l s a n d ob j e c t i v e s a n d e s t a b l i s h a d e q u a t e i n t e r n a l c o n t r o l s y s t e m s.
M i t i g a t e F r a u d : R o o t o u t i m p r o p e r g o v e r n m e n t a l a c t i v i t i e s ( i . e . , f r a u d , w a s t e , o r a b u se ) .
A d d r e s s I n e q u i t i e s : A d d r e s s r a c i a l , g e n d e r , a n d e t h n i c i n e q u i t i e s.
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 5 F i s c a l Y e a r 2 0 2 5 W o r k P l a n
F i s c a l Y e a r 2 0 2 5 W o r k P l a n
O n M a y 2 8 , 2 0 2 4 , t h e C i t y C o u n ci l a p p r o v e d t h e C i t y A u d i t o r ' s F i sca l Y e a r 2 0 2 4 / 2 5 W o r k P l a n w h i c h i n cl u d e d w o r k u n d e r t h e O f f i ce ' s t h r e e d i v i s 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 F u n d R e v i e w
D e p a r t m e n t o f U t i l i t i e s ' W a s t e w a t e r F u n d R e v i e w
A u d i t o f t h e P o l i c e D e p a r t m e n t ' s 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 y a n d I n v e n t o r y P r a c t i c e s
A u d i t o f t h e S a c r a m e n t o E t h i c s C o m m i s s i o n
F i s c a l Y e a r 2 0 2 3 / 2 0 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 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
F i s c a l Y e a r 2 0 2 3 / 2 0 2 4 A u d i t e d A m o u n t o f C a n n a b i s B u s i n e s s O p e r a t i o n s T a x
P e r f o r m a n c e A u d i t o f C i t y o f S a c r a m e n t o ' s 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
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 se :
C i t y M o t e l P r o g r a m
P e r f o r m a n c e
A u d i t s
R e s e a r c h a n d
A n a l y s i s
W h i s t l e b l o w e r
H o t l i n e
D u r i n g F i s c a l Y e a r 2 0 2 5 , 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 co m p l e t e d e i g h t p r o j e c t s :
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 a l so p r o v i d e d t h e C i t y C o u n ci l w i t h t h e f o l l o w i n g a c t i v i t y r e p o r 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 s :
A p r i l t h r o u g h J u n e 2 0 2 4
J u l y t h r o u g h S e p t e m b e r 2 0 2 4
O c t o b e r t h r o u g h D e c e m b e r 2 0 2 4
S e m i - A n n u a l 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 s :
J a n u a r y t h r o u g h J u n e 2 0 2 4
J u l y t h r o u g h D e c e m b e r 2 0 2 4
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 6 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 s :
A p r i l 2 0 2 2 t h r o u g h J u n e 2 0 2 4
J u l y t h r o u g h D e c e m b e r 2 0 2 4
A n n u a l R e p o r t 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 F i s c a l Y e a r 2 0 2 5 W o r k P l a n
S t a t u s o f P r o j e c t s i n P r o g r e ss:
T h e C i t y A u d i t o r ' s W o r k P l a n i s d e s i g n e d t o b e f l e x i b l e , a d j u s t i n g t o n e w r i s k s a n d c h a n g i n g p r i o r i t i e s . A n n u a l l y , w e r e v i e w a n d r e p r i o r i t i z e p r o j e c t s t o d e t e r m i n e t h e i r r e l e v a n c e f o r t h e u p c o m i n g y e a r . C o n s e q u e n t l y , s o m e p r o j e c t s a r e d e f e r r e d t o t h e n e x t y e a r ' s W o r k P l a n , w h i l e o t h e r s m a y b e r e - a s s e s s e d a n d e x c l u d e d . T h i s e n s u r e s t h a t o u r e f f o r t s a r e c o n s i s t e n t l y a l i g n e d w i t h t h e C i t y ' s m o s t p r e s s i n g n e e d s.
P r o j e c t s C a r r i e d O v e r t o t h e F i s c a l Y e a r 2 0 2 6 W o r k P l a n :
A u d i t o f P e d e s t r i a n S a f e t y
A u d i t o f I l l e g a l C a n n a b i s C u l t i v a t i o n Project Preliminary
Survey
Risk
Assessment
Fieldwork Report
Writing
Audit of Emergency Medical Services Complete Complete Complete In Progress Audit of the Transient Occupancy Tax Complete Complete In Progress Audit of Evidence and Property - Part 2 Complete Complete In Progress Audit of Utilities' Energy Use Complete Complete In Progress Audit of Complaint Investigation and
Resolution Practices
Complete Complete On Hold
Audit of Homeless Response - Part 2 In Progress
Storm Drainage Fund Review In Progress
Potential Cost Savings and Revenue
Recovery Audit Services
In Progress
P r o j e c t s N o t Y e t S t a r t e d :
F i s c a l Y e a r 2 0 2 5 W o r k P l a n
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 7 K e y D e l i v e r a b l e s a n d
P e r f o r m a n c e G o a l s
K e y D e l i v e r a b l e s
C e r t i f i c a t e o f C o m p l i a n c e w i t h G e n e r a l l y A c c e p t e d G o v e r n m e n t A u d i t i n g S t a n d a r d s w i t h i n l a s t t h r e e y e a r s :
L a s t p e e r r e v i e w c o m p l e t e d A p r i l 2 0 2 5 .
C e r t i f i c a t e o f C o m p l i a n c e a w a r d e d t o 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 p e r i o d J a n u a r y 1 , 2 0 1 9 t h r o u g h D e c e m b e r 3 1 , 2 0 2 4 .
P r e s e n t P r o p o s e d W o r k P l a n b y A p r i l 1 5 :
C i t y A u d i t o r ' s P r o p o s e d W o r k P l a n f o r F i s c a l Y e a r 2 0 2 5 / 2 6 w a s p r e s e n t e d t o t h e B u d g e t a n d A u d i t C o m m i t t e e o n M a r c h 2 5 , 2 0 2 5 .
T h e f i n a l W o r k P l a n w a s a p p r o v e d b y t h e C i t y C o u n c i l o n A p r i l 2 2 , 2 0 2 5 .
P r o v i d e t h e C i t y C o u n c i l w i t h a c t i v i t y r e p o r t s r e g a r d i n g a u d i t s ,
r e c o m m e n d a t i o n s , a n d w h i s t l e b l o w e r t i p s a n d i n v e s t i g a t i o n s :
C i t y C o u n c i l w a s k e p t a p p r i s e d o f O f f i c e a c t i v i t i e s t h r o u g h v a r i o u s m e c h a n i s m s su c h a s : q u a r t e r l y a c t i v i t y r e p o r t s , s e m i - a n n u a l 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 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 s , a n n u a l w o r k p l a n s , p r e s e n t a t i o n s , a n d i n d i v i d u a l b r i e f i n g s .
P e r f o r m a n c e G o a l s
1 0 0 %
C P E C o m p l i a n c e
o f s t a f f m e t c o n t i n u i n g
p r o f e s s i o n a l e d u c a t i o n
r e q u i r e m e n t s o f
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w e r e a c c e p t e d b y t h e
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r e c o m m e n d a t i o n s w e r e
a g r e e d u p o n b y C i t y
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1 0 0 %
R e c o m m e n d a t i o n s
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r e c o m m e n d a t i o n s w e r e
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5 7 %
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o f t h e W o r k P l a n w a s
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d u r i n g t h e f i s c a l y e a r .
* T h e O f f i c e e x p e r i e n c e d a 1 0 - 3 0 % v a c a n c y r a t e d u r i n g t h e f i s c a l y e a r .
K e y D e l i v e r a b l e s a n d P e r f o r m a n c e M e t r i c s F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 0 8 * C i t y C o u n c i l h a s n o t y e t h e a r d t h e 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 e r v i c e s D i v i s i o n w h i c h h a d 1 0 f i n d i n g s a n d 3 1 r e c o m m e n d a t i o n s .
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t O t h e r O f f i c e A c t i v i t i e s
T o p r o m o t e t r a n s p a r e n c y a n d a c c ou n t a b i l i t y t h e O f f i c e m a i n t a i n s se v e r a l d a sh b o a r d s t h a t C i t y C o u n c i l , C i t y e m p l o y e e s , a n d t h e p u b l i c c a n u se t o a n a l y z e c e r t a i n i n f o r m a t i o n . T h e O f f i c e m a i n t a i n s t h e f o l l o w i n g d a s h b o a r d s:
R E C O M M E N D A T I O N F O L L O W - U P
M o s t R e c e n t R e p o r t i n g P e r i o d
O p e n R e c o m m e n d a t i o n s
C l o s e d R e c o m m e n d a t i o n s
W O R K P L A C E C L I M A T E S U R V E Y
2 0 2 3 C O M M U N I T Y S U R V E Y
S u r v e y R e s u l t s B y D e p a r t m e n t
S u r v e y R e s u l t s B y E t h n i c i t y
S u r v e y R e s u l t s B y S e x
O f f i c e D a s h b o a r d s
C i t y A u d i t o r ' s O f f i c e S u c c e ssf u l l y C o m p l e t e s P e e r R e v i e w
W H I S T L E B L O W E R H O T L I N E
M o s t R e c e n t R e p o r t i n g P e r i o d
A l l C l o s e d C a s e s
S u b s t a n t i a t e d C a s e s
I n a c c o r d a n c e w i t h G e n e r a l l y A c c e p t e d G o v e r n m e n t A u d i t i n g S t a n d a r d s ( G A G A S ) , a u d i t o r g a n i z a t i o n s a r e r e q u i r e d t o u n d e r g o a n e x t e r n a l p e e r r e v i e w e v e r y t h r e e y e a r s. T o m e e t t h i s r e q u i r e m e n t , 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 p a r t i c i p a t e d i n a p e e r r e v i e w c o n d u c t e d b y t h e A s s o c i a t i o n o f L o c a l G o v e r n m e n t A u d i t o r s ( A L G A ) d u r i n g t h e w e e k o f M a r c h 3 1 . T h e p e e r r e v i e w c o v e r e d a u d i t w o r k p e r f o r m e d d u r i n g t h e p e r i o d f r o m J a n u a r y 1 , 2 0 2 2 t h r o u g h D e c e m b e r 3 1 , 2 0 2 4 .
T h e p e e r r e v i e w t e a m c o n d u c t e d a t h o r o u g h a sse ssm e n t o f o u r p o l i c i e s, p r o c e d u r e s, a n d a u d i t w o r k t o d e t e r m i n e w h e t h e r t h e o f f i c e c o m p l i e s w i t h G A G A S . 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 s u c c e s s f u l l y p a s s e d t h e p e e r r e v i e w . T h i s o u t c o m e a f f i r m s o u r c o m m i t m e n t t o m a i n t a i n i n g h i g h s t a n d a r d s o f a u d i t q u a l i t y , p r o f e ssi o n a l i s m , a n d i n t e g r i t y i n o u r w o r k o n b e h a l f o f t h e C i t y .
0 9
O t h e r A u d i t A c t i v i t i e s
D I V E R S I T Y
G e n d e r a n d E t h n i c D i v e r s i t y
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H i r e s D i v e r s i t y
S e p a r a t i o n s D i v e r s i t y
O f f i c e o f t h e C i t y A u d i t o r
T e a m a n d D e m o g r a p h i c s
F a r i s h t a A h r a r y - C i t y A u d i t o r K e v i n C h r i s t e n s e n - A s s i s t a n t C i t y A u d i t o r V a c a n t - P r i n c i p a l F i s c a l P o l i c y A n a l y s t J o y c e C h i h - 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 n g - 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
P a r i n a z N e j a t i e - F i s c a l P o l i c y A n a l y s t R i c a r d o S a n c h e z M o l i n e r o - F i s c a l P o l i c y A n a l y s t
V a c a n t - P r i n c i p a l F i s c a l P o l i c y A n a l y s t C h e v e l l e J a c k s o n - 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 e s s i c a L u g o - F i s c a l P o l i c y A n a l y s t O f f i c e o f t h e C i t y A u d i t o r T e a m O f f i c e o f t h e C i t y A u d i t o r D e m o g r a p h i c s T h e C i t y o f S a c r a m e n t o i s a v e r y d i v e r s e c o m m u n i t y , a n d 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 g e n e r a l l y d o e s w e l l t o r e f l e c t i n i t s s t a f f t h e g e n d e r a n d e t h n i c d i v e r s i t y o f t h e C i t y o f S a c r a m e n t o .
D u r i n g t h e f i s c a l y e a r , t h e O f f i c e e x p e r i e n c e d s t a f f a t t r i t i o n , r e s u l t i n g i n a 2 0 p e r c e n t v a c a n c y r a t e . W e h a v e i n i t i a t e d r e c r u i t m e n t e f f o r t s t o f i l l t h e s e p o s i t i o n s a n d a n t i c i p a t e c o m p l e t i n g t h i s p r o c e ss e a r l y i n F i s c a l Y e a r 2 0 2 6 .
O f f i c e o f t h e C i t y A u d i t o r G e n d e r D i v e r s i t y
O f f i c e o f t h e C i t y A u d i t o r E t h n i c / R a c i a l D i v e r s i t y F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 1 0 O f f i c e o f t h e C i t y A u d i t o r T e a m a n d D e m o g r a p h i c s
P r o g r e s s o n F i s c a l Y e a r 2 0 2 5
S t r a t e g i c G o a l s a n d O b j e c t i v e s P r o g r e s s o n F i s c a l Y e a r 2 0 2 5 S t r a t e g i c G o a l s a n d O b j e c t i v e s D u r i n g F i s c a l Y e a r 2 0 2 5 , 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 d e n t i f i e d k e y p r i o r i t i e s t o s t r e n g t h e n o u r o p e r a t i o n s , f o s t e r c o l l a b o r a t i o n , a n d b u i l d p u b l i c t r u s t . B e l o w i s a su m m a r y o f o u r p r o g r e ss t o w a r d s t h e s e o b j e c t i v e s .
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 1 1 E n h a n c i n g C o l l a b o r a t i o n a n d C o m m u n i c a t i o n T h e O f f i c e a c t i v e l y e n g a g e d w i t h C i t y d e p a r t m e n t s a n d C o u n c i l O f f i c e s t h r o u g h o u t t h e y e a r , h o l d i n g r e g u l a r c h e c k - i n s a n d b r i e f i n g s t o sh a r e i n f o r m a t i o n a b o u t a u d i t o b j e c t i v e s, p r o c e s s e s , a n d o u t c o m e s .
W e d e v e l o p e d a n d i m p l e m e n t e d T h e P e r f o r m a n c e A u d i t P r o c e s s : W h a t t o E x p e c t f a c t s h e e t t o d e m y s t i f y t h e p e r f o r m a n c e a u d i t p r o c e ss a n d c l a r i f y e x p e c t a t i o n s a t t h e s t a r t o f e a c h a u d i t .
W e a l s o i m p l e m e n t e d a n A u d i t S c o p i n g M e m o r a n d u m t o c l e a r l y i n f o r m a u d i t e e s o f t h e a u d i t s c o p e d e t e r m i n e d t h r o u g h o u r r i sk a sse ssm e n t p r o c e ss.
P r o m o t i n g O p e r a t i o n a l E f f i c i e n c i e s D e s i g n e d a n d d e p l o y e d a d d i t i o n a l i n t e r a c t i v e d i v e r s i t y d a sh b o a r d s f o r 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 .
C o n t i n u e d a d v a n c i n g t h e O f f i 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 t o p r o m o t e i n c l u s i v i t y a n d d i v e r s i t y .
C o m p l e t i n g R e c r u i t m e n t E f f o r t s C o n d u c t e d r e c r u i t m e n t f o r v a c a n t p o s i t i o n s, a c h i e v i n g n e a r - f u l l s t a f f i n g b y m i d F i sc a l Y e a r 2 0 2 5 . H o w e v e r , t h e r e c e n t d e p a r t u r e o f a n o t h e r e m p l o y e e h a s b r o u g h t o u r v a c a n c y r a t e t o 2 0 p e r c e n t a t t h e e n d o f t h i s f i s c a l y e a r .
C o m p l y i n g w i t h U p c o m i n g C h a n g e s t o S t a n d a r d s W o r k e d o n r e v i s i n g p o l i c i e s , p r o c e d u r e s, a n d t e m p l a t e s t o a l i gn w i t h f o r t h c o m i n g u p d a t e s t o G e n e r a l l y A c c e p t e d G o v e r n m e n t A u d i t i n g S t a n d a r d s ( G A G A S ) . T h i s w o r k w i l l c o n t i n u e i n t o F i s c a l Y e a r 2 0 2 6 .
F i s c a l Y e a r 2 0 2 6 S t r a t e g i c
G o a l s a n d O b j e c t i v e s
F i s c a l Y e a r 2 0 2 6 S t r a t e g i c G o a l s a n d O b j e c t i v e s F o r F i s c a l Y e a r 2 0 2 6 , w e a r e e x c i t e d t o w o r k w i t h t h e C i t y C o u n c i l a n d C i t y m a n a g e m e n t t o c o n t i n u e m a n a g i n g t h e C i t y ' s W h i s t l e b l o w e r H o t l i n e a n d a u d i t i n g C i t y o p e r a t i o n s a n d se r v i c e s t o i d e n t i f y o p p o r t u n i t i e s f o r e n h a n c e d e f f i c i e n c y a n d e f f e c t i v e n e ss.
W e w i l l a l s o b e f o c u s e d o n i n t e r n a l i m p r o v e m e n t s i n c l u d i n g :
F i s c a l Y e a r 2 0 2 5 A n n u a l R e p o r t 1 2 P r o m o t i n g O p e r a t i o n a l E f f i c i e n c i e s W e w i l l a s s e s s o p p o r t u n i t i e s t o l e v e r a g e t e c h n o l o g y t o i m p r o v e t h e e f f i c i e n c y a n d p r o d u c t i v i t y o f o u r a u d i t p r o c e s s e s . T h e se i n v e s t m e n t s c o u l d a l l o w u s t o d e l i v e r m o r e t i m e l y , h i g h - q u a l i t y r e s u l t s a n d e x p a n d o u r c a p a c i t y t o se r v e t h e C i t y a n d t h e c o m m u n i t y .
S t r e n g t h e n i n g O r g a n i z a t i o n a l C a p a c i t y T h e O f f i c e c u r r e n t l y h a s t w o v a c a n t p o s i t i o n s - w h i c h m e a n s a v a c a n c y r a t e o f 2 0 p e r c e n t . W e w i l l p r i o r i t i z e f i l l i n g v a c a n t p o s i t i o n s a n d su s t a i n i n g a h i gh - p e r f o r m i n g , d i v e r s e , a n d i n c l u s i v e t e a m .
E n s u r i n g S t a n d a r d s C o m p l i a n c e a n d P r o f e s s i o n a l E x c e l l e n c e T h e O f f i c e w i l l c o n t i n u e r e v i s i n g p o l i c i e s, p r o c e d u r e s, a n d t e m p l a t e s t o a l i g n w i t h f o r t h c o m i n g u p d a t e s t o G e n e r a l l y A c c e p t e d G o v e r n m e n t A u d i t i n g S t a n d a r d s ( G A G A S ) .
A d v a n c i n g E q u i t y a n d I n c l u s i o n T h e O f f i c e w i l l c o n t i n u e t o i m p l e m e n t a n d m o n i t o r o u r 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 , f u r t h e r e m b e d d i n g e q u i t y p r i n c i p l e s i n t o o u r a u d i t p l a n n i n g , f i e l d w o r k a n d r e p o r t i n g p r o c e s s e s .
C o n t a c t :
F a r i s h t a A h r a r y , C i t y A u d i t o r
F A h r a r y @ c i t y o f s a c r a m e n t o . o r g 9 1 6 - 8 0 8 - 7 2 6 6
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 C i t y o f S a c r a m e n t o
O f f i c e o f t h e C i t y
A u d i t o r
Personnel and Public Employees Committee PresentationJuly 22, 2025Farishta AhraryCity Auditor
AgendaOverview, City Charter, and City CodeMission, Philosophy, and VisionOffice of the City Auditor Team and DemographicsFiscal Year 2025 Work PlanOther Office ActivitiesKey Deliverables and Performance GoalsProgress on Fiscal Year 2025 Strategic Goals and ObjectivesFiscal Year 2026 Strategic Goals and Objectives OverviewThe 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 opportunities for internal control improvements.
City Charter◦With the passing of Measure K in 2018, the City Auditor was established as a Charter Officer.◦The duties of the City Auditor and the Independent Budget Analyst were combined.◦Section 77 of the City Charter states 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.” City CodeSacramento City Code Section 2.18.050 outlines the duties of the City Auditor. Some of the outlined duties include:Conducting audits of City departments, offices, boards, commissions, and committees as directed by the Council.Managing the City’s Whistleblower Hotline and determining if allegations of fraud, waste, abuse, or illegal acts need further investigation.Assisting in the Council’s budgetary inquiries and budgetary decisions as directed by the City Council.Making recommendations to the City Council in connection with the City Auditor’s audits, investigations, analyses, studies, and reports.If requested by an individual Councilmember, auditing that Councilmember’s own office through an independent outside auditor. • Outlines the City Auditor’s access to all sources of information, property, and personnel relevant to the performance of an audit, unless restricted or prohibited by law.• If a City contract so provides, access to the contracting party’s records related to the service or goods provided under the contract.2.18.060 Access to Information • Prohibits any person from directly or indirectly coercing or attempting to coerce the City Auditor relative to the City Auditor’s examinations, audits, or appointment or removal of any employee by the City Auditor.2.18.070 Noninterference with City AuditorCity Code Office MissionThe Office of the City Auditor’s mission is to provide a catalyst for improvements of municipal operations and promote a credible, efficient, effective, equitable, fair, focused, transparent, and fully accountable City government.
PhilosophyIndependence• In fact and appearance and free from impairments to ensure impartiality.Objectivity• In projects and without preconceived ideas or biases.Technical Accuracy• By utilizing strict quality assurance programs to ensure due professional care and sufficient and compelling evidence to support any statements of fact in reports.
Vision
ImproveImprove City Services• Provide independent, objective, and reliable information regarding the City’s ability to meet its goals and objectives and establish adequate internal control systems.
MitigateMitigate Fraud• Root out improper governmental activities (i.e. fraud, waste, or abuse) AddressAddress Inequities• Address racial, gender, and ethnic inequities.
Office of the City Auditor Team
Farishta Ahrary, City Auditor
Kevin Christensen, Assistant City Auditor
VACANT, Principal
Joyce Chih, Senior Fiscal Policy Analyst
Joseph Fleming, Senior Cannabis Auditor
Parinaz Nejatie, Utilities Fiscal Policy Analyst
Ricardo Sanchez Molinero, Fiscal Policy Analyst
VACANT, Principal
Chevelle Jackson, Senior Fiscal Policy Analyst
Jessica Lugo, Fiscal Policy Analyst
Office of the City Auditor DemographicsOffice of the City Auditor Gender Diversity Total PopulationFemaleMale535,79850%50%2024 City Population1060%40%City Auditor’s Office 2021956%44%City Auditor’s Office 20221050%50%City Auditor’s Office 2023771%29%City Auditor’s Office 2024863%38%City Auditor’s Office 2025 Office of the City Auditor Demographics
Total PopulationNative Hawaiian or Other Pacific IslanderAmerican Indian or Alaska NativeFilipinoMiddle Eastern or North AfricanTwo or More RacesBlack or African AmericanAsianHispanicWhite523,6002%0%3%0%6%12%16%29%31%2022 City Population100%0%0%10%10%10%10%30%30%City Auditor’s Office 202190%0%0%11%0%11%11%33%33%City Auditor’s Office 2022100%0%0%10%0%10%20%40%20%City Auditor’s Office 202370%0%0%14%0%14%29%29%14%City Auditor’s Office 202480%0%0%13%0%13%25%13%38%City Auditor’s Office 2025Office of the City Auditor Ethnic/Racial Diversity Note: Totals may not equal 100% due to rounding.
Fiscal Year 2025 Work Plan
On May 28, 2024, the City Council approved the City Auditor’s Fiscal Year 2024/25 Work Plan which included work under the Office’s three divisions:•Performance Audits•Research and Analysis•Whistleblower Hotline Completed ProjectsDuring Fiscal Year 2025, the Office of the City Auditor completed eight projects:Department of Utilities’ Water Fund ReviewDepartment of Utilities’ Wastewater Fund ReviewAudit of the Police Department’s Military Equipment Use Policy and Inventory PracticesAudit of the Sacramento Ethics CommissionFiscal Year 2023/2024 Baseline Funding Verification for the Sacramento Children’s FundFiscal Year 2023/2024 Audited Amount of Cannabis Business Operations TaxPerformance Audit of City of Sacramento’s Animal Care Services DivisionAudit of the City’s Homeless Response: City Motel Program Activity ReportsQuarterly Activity Reports• April through June 2024• July through September 2024• October through December 2024Semi-Annual Recommendation Follow-Up Reports• January through June 2024• July through December 2024Whistleblower Hotline Activity Reports• April 2022 through June 2024• July through December 2024Annual Report• Fiscal Year 2024 Annual ReportThe Office of the City Auditor also provided the City Council with the following activity reports:
Status of Projects in Progress
Report WritingFieldworkRisk AssessmentPreliminary SurveyProjectIn ProgressCompleteCompleteComplete Audit of Emergency Medical ServicesIn ProgressCompleteComplete Audit of the Transient Occupancy TaxIn ProgressCompleteComplete Audit of Evidence and Property – Part 2In ProgressCompleteCompleteAudit of Utilities’ Energy UseOn HoldCompleteCompleteAudit of Complaint Investigation and Resolution PracticesIn ProgressAudit of Homeless Response – Part 2In ProgressStorm Drainage Fund ReviewIn ProgressPotential Cost Savings and Revenue Recovery Audit Services Projects Not Yet StartedProjects Carried Over to the Fiscal Year 2026 Work PlanAudit of Pedestrian SafetyAudit of Illegal Cannabis Cultivation Office DashboardsTo promote transparency and accountability, the Office maintains several dashboards that City Council, City employees, and the public can use to analyze certain information. The Office maintains the following dashboards:Recommendation Follow-UpWhistleblower HotlineCommunity SurveyGender and Ethnic Diversity2022 Diversity & Workplace Climate Survey ResultsDiversity of City ApplicantsDiversity of City HiresDiversity of City Separations City Auditor’s Office Successfully Completes Peer Review•Generally Accepted Government Auditing Standards (GAGAS) require an external peer review every three years.•The peer review team conducted a comprehensive assessment of our policies, procedures, and audit work and determined the office complies with GAGAS.
Key Deliverables for Fiscal Year 2025
Certificate of Compliance with Generally Accepted Government Auditing Standards within the last three years Present proposed Work Plan by April 15
Provide the City Council with activity reports regarding audits, recommendations, and whistleblower tips and investigations
Performance GoalsDuring Fiscal Year 2025, the Office of the City Auditor exceeded most of its performance goals:
• CPE Compliance100%
• Management Agreement95%
• Audit Findings Acceptance100%
• Recommendations Acceptance100%
• Work Plan57%
Update on Fiscal Year 2025 Strategic Goals and ObjectivesFor Fiscal Year 2025, we identified key priorities to strengthen our operations, foster collaboration, and build public trust. Our goals included:
Enhancing Collaboration and Communication
Promoting Operational Efficiencies
Completing Recruitment Efforts
Complying with Upcoming Changes to Standards
Fiscal Year 2026 Strategic Goals and ObjectivesFor Fiscal Year 2026, we are excited to work with the City Council and City management to continue managing the City’s Whistleblower Hotline and auditing City operations and services to identify opportunities for enhanced efficiency and effectiveness. We will also be focused on internal improvements including:
Promoting Operational Efficiencies
Strengthening Organizational Capacity
Ensuring standards Compliance and Professional Excellence Advancing Equity and Inclusion
Thank YouFarishta AhraryCity [email protected]