2025-01614 City Auditor’s Recommendation Follow-Up Report for the Six-Month Period Ending June 30, 2025 — Budget and Audit Committee, September 16, 2025

City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01614 9/16/2025
City Auditor’s Recommendation Follow-Up Report for the Six-Month Period Ending June 30, 2025
File ID: 2025-01614
Location: Citywide
Recommendation: Pass a Motion: 1) accepting the City Auditor’s Recommendation Follow-Up Report for the Six-Month Period Ending June 30, 2025; 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 Recommendation Follow-Up Report for the Six-Month Period Ending June 30, 2025 Description/Analysis
Issue Detail: According to the City Council Rules of Procedures, 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 details the implementation status of open audit recommendations during the second half of fiscal year (FY) 2024/25.

Policy Considerations: The City Auditor’s presentation of the Recommendation Follow-Up Report 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.

Page 1 of 2 ends

File ID: 2025-01614 9/16/2025
Commission/Committee Action: None.

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 cost of the Recommendation Follow-Up Report was funded out of the Office of the City Auditor budget.

Local Business Enterprise (LBE): Not applicable.

Page 2 of 2 ends

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Report #
2025/26-04

City Auditor’s Semi-Annual
Recommendation Follow-Up Report:

January – June 2025

Farishta Ahrary
City Auditor
September 2025

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Our Mission
To provide a catalyst for improvements of municipal operations and promote a credible, efficient, effective, equitable, fair, focused, transparent, and fully accountable City government.

Our Vision
To improve City services by providing independent, objective, and reliable information regarding the City’s ability to meet its goals and objectives and establish an adequate system of internal controls, root out improper governmental activities (i.e., fraud, waste, or abuse), and address racial, gender, and ethnic inequities.

Suggest an Audit
The Office of the City Auditor conducts performance audits of the City of Sacramento's operations to determine whether these operations and programs are operating efficiently and effectively. If you would like to offer ideas for audits to save the City money, increase revenues, or improve the efficiency and effectiveness of City operations and programs, please fill out our online form:

https://forms.cityofsacramento.org/f/Suggest_an_Audit_Form

Whistleblower Hotline
In the interest of public accountability and being responsible stewards of public funds, the City has established a whistleblower hotline. The hotline protects the anonymity of those leaving tips to the extent permitted by law. The service is available 24 hours a day, 7 days week, 365 days per year. Through this service, all phone calls and emails will be received anonymously by third party staff.

Report online at http://www.cityofsacramento.ethicspoint.com or call toll-free: 888-245-8859.

The City of Sacramento’s Office of the City Auditor can be contacted by phone at 916-808-1166 or at the address below:

915 I Street
MC09100
Historic City Hall, Floor 2
Sacramento, CA 95814

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Contents
Recommendation Follow-Up Process .............................................................................................................................................. 5 Recommendation Progress ................................................................................................................................................ 5 Benefits of Implementing Recommendations ............................................................................................................................... 5 Implementation Progress of Recommendations ......................................................................................................................... 7 89% of All Recommendations Have Been Closed .............................................................................................................. 7 Status of Open Recommendations .................................................................................................................................... 8 The Number of Recommendations Issued and Closed Per Year ........................................................................................ 9 Open Recommendations by Department ........................................................................................................................ 10 Post Audit Recommendation Follow Up Status by Audit ......................................................................................................... 11 Audit of City Light-Duty Vehicle Use ................................................................................................................................ 11 Audit of Citywide Purchase-Card Use .............................................................................................................................. 12 Audit of the Department of Utilities Labor Reporting ..................................................................................................... 12 Audit of the City's Risk Management Division ................................................................................................................. 13 Audit of the Department of Utilities Inventory ................................................................................................................ 14 Audit of Procurement for Services of $25,000 or Less..................................................................................................... 16 Audit of the Department of Parks and Recreation's Strategic Planning and Part-time Employee Benefits Management16 Audit of the Department of Utilities Workplace Safety ................................................................................................... 18 Audit of Retiree Health Benefits ...................................................................................................................................... 19 Audit of the 911 Emergency Communications Center ..................................................................................................... 20 Audit of the Department of Utilities Vehicle Fleet .......................................................................................................... 21 Audit of City-Owned and Leased Real Property ............................................................................................................... 22 Audit of the City's Green Efforts ...................................................................................................................................... 24 Audit of the Cannabis Storefront Dispensary Permitting Process ................................................................................... 26 Audit of the Sacramento Community Police Review Commission ................................................................................... 27

For interactive dashboards and copies of past reports, visit our website:
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Vendor Audit of Wide Open Walls ................................................................................................................................... 31 Language Access Gap Analysis, Survey Results, and Policy Recommendations .............................................................. 32 Audit of the Sacramento Police Department’s Evidence and Property Division – Sexual Assault Evidence Kits ............ 36 Audit of the Department of Utilities Supervisory Control and Data Acquisition (SCADA) System .................................. 36

For interactive dashboards and copies of past reports, visit our website:
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Recommendation Follow-Up Process
The Office of the City Auditor (Office) makes recommendations to strengthen accountability and improve the efficiency and effectiveness of City programs. In many cases, this involves verifying compliance with laws and regulations, identifying internal control weaknesses and failures, and assessing whether the City has acquired and used its resources efficiently. Sacramento City Code section 2.18.040 states “[t]he 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 Office monitors the implementation of all recommendations and reports on the status of open recommendations every six months with this semiannual report.

In accordance with the City Auditor’s approved Fiscal Year (FY) 2024/25 Work Plan, we have prepared a report on the status of open recommendations for the six-month period ending June 2025. To prepare this report, we met with department staff, reviewed documentation provided by departments, and performed testing to evaluate implementation progress. We would like to express our appreciation to City staff for their cooperation and assistance during our reviews.

Recommendation Progress
We classified recommendations based on the responsible party’s progress:

 Not started – The responsible party temporarily postponed implementing the audit recommendation or did not demonstrate sufficient progress toward implementing the recommendation.
 Started – The responsible party began implementing the recommendation, but considerable work remains.  Partly Implemented – The responsible party satisfied some elements of the audit recommendation, but additional work and testing remains.
 Implemented – The responsible party provided documentation and the Auditor verified the satisfactory implementation of the audit recommendation.
 Dropped – The auditor recommends eliminating the recommendation since a change in circumstances rendered it unnecessary.

Benefits of Implementing Recommendations
One of the goals in performing our work is to identify areas in which the City could reduce expenses or increase revenues. However, in some cases it can be difficult to calculate the financial benefit that a recommendation could produce. For example, it would be difficult to determine avoided costs of potential workers’ compensation claims in the future.

While much of our work aims to identify financial benefits, recommendations are not solely focused on identifying savings. Sometimes they focus on areas that identify key benefits that are not easily quantifiable. For example, it could be difficult to quantify the value of increased

For interactive dashboards and copies of past reports, visit our website:
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residents’ satisfaction with City services due to implementation of recommendations, or the benefits of having policies in place that reduce the City’s overall risk.

We expect that most of our work will yield both financial and non-financial benefits. Some examples of benefits captured include identifying revenue the City should have collected, errors that led the City to overpay expenses, and potential savings by modifying practices or agreements.

Figure 1 illustrates the potential financial benefits identified in our reports as well as the estimated realized financial benefits resulting from the implementation of all recommendations made by the Office of the City Auditor.

Figure 1: Potential Financial Benefit Identified and Estimated Financial Benefit Realized Since Establishment of the Office of the City Auditor

Source: Auditor generated.

As the figure above covers various types of potential benefits and relies on decisions and agreements that may or may not be made, it does not represent an expectation that the City will necessarily save or recover the full amount identified. For example, although the Audit of the Community Development Department identified $2.3 million in fees that the City did not collect, recovering those fees may prove difficult due to barriers to collection.

Potential Benefit
$98 Million
Realized Benefit
$41.9 Million

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Implementation Progress of Recommendations
89% of All Recommendations Have Been Closed
Since the establishment of the Office of the City Auditor in 2010, the Office has issued over 85 reports and made 751 recommendations1. At the end of this recommendation follow-up period, 671 (89%) of total recommendations had been closed. Figure 2 illustrates the number of recommendations open compared to the number of recommendations closed as of June 30, 2025.

Figure 2: Recommendation Status

Source: Auditor generated.

1 Several reports were issued near the end of this reporting period. Since follow-up on their recommendations did not occur during this period, they are not reflected in the figures presented. These reports will be included in the subsequent reporting period.

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4 Recommendations Were Closed During the Reporting Period During this reporting period, 4 recommendations were closed as implemented.

Status of Open Recommendations
Open recommendations are classified based on the responsible party’s progress towards implementation. Figure 3 illustrates the progress of all open recommendations. During the reporting period, the City made notable new progress towards implementing 31 of these recommendations.

Figure 3: Status of Open Recommendations

Source: Auditor generated.

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The Number of Recommendations Issued and Closed Per Year Figure 4 illustrates the number of recommendations issued and closed in the last nine fiscal years2. The average number of recommendations closed per year is 50.

Figure 4: Recommendations Issued Compared to Recommendations Closed by Fiscal Year

Source: Auditor generated.

2 Several reports, and their corresponding recommendations, were issued near the end of this reporting period. Since follow-up on their recommendations did not occur during this period, they are not reflected in the figures presented. These reports will be included in the subsequent reporting period.

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Open Recommendations by Department
Recommendations made by the Office of the City Auditor are directed towards specific departments or entities. In some cases, implementation requires extensive coordination between multiple parties. Recommendations directed towards multiple parties are listed under the lead department. Figure 5 illustrates the outstanding recommendations by department. For context, the number of closed and total recommendations issued to each department is also listed.

Figure 5: Recommendations by Department
Department Open Closed Total % Closed
City Attorney 0 1 1 100%
City Clerk 0 1 1 100%
City Council 12 10 22 45%
City Manager 17 35 52 67%
Community Development 0 51 51 100%
Finance 5 96 101 95%
Fire 0 58 58 100%
Human Resources 0 110 110 100%
Information Technology 1 47 48 98%
Non-City Organization 0 33 33 100%
Office of Cannabis Management 2 26 28 93%
Police 3 18 21 86%
Public Works 13 69 82 84%
Sacramento Housing and Redevelopment Agency 0 12 12 100% Utilities 20 92 112 82%
Youth, Parks, and Community Enrichment 7 12 19 63%
Grand Total 80 671 751 89%
Source: Auditor generated.

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Post Audit Recommendation Follow Up Status by Audit
The following tables provide the status of audit recommendations, by audit report, generally in the order the audits were issued. Please note that recommendations closed in a prior period are not listed.

Audit of City Light-Duty Vehicle Use

Report #2011-05

Finding # Recommendation Status Update

The lack of a detailed City
take-home vehicle policy has
allowed the City to approve
almost 250 take-home
vehicles, resulting in a
substantial cost
10 Revise the City’s transportation policy to
consolidate City direction and enhance
criteria for allocating take-home
vehicles.

Started No progress was made during the reporting period. The policy is still with Labor Relations for review.

The lack of a detailed City
take-home vehicle policy has
allowed the City to approve
almost 250 take-home
vehicles, resulting in a
substantial cost
13 Work towards incorporating into all City
labor agreements language that clearly
states the City’s rights and authority
over vehicle assignments and removals.

Started Labor Relations is in the process of revising the City Employee Transportation Policy. New language has been
added to the draft policy. While this issue is on the list of issues to address during MOU negotiations, it is not
anticipated to be completed this negotiations cycle. This item will remain on the list of issues to address for future MOU negotiations. This approach may be reconsidered if
additional financial resources are provided for this
bargaining cycle.

For interactive dashboards and copies of past reports, visit our website:
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Audit of Citywide Purchase-Card Use

Report #2012-06

Finding # Recommendation Status Update

The purchase card program
lacked complete policy
guidance and oversight
8 Provide mandatory annual purchasing
card-use training for cardholders and
require them to sign a form agreeing to
program terms and acknowledging their
responsibilities.

Partly
Implemented
All P-Card training has been moved to Acumen but some
technical issues arose in trying to assign this training annually. The Procurement Division is continuing to work with the Human Resources Department to find a solution.

The purchase card program
lacked complete policy
guidance and oversight
9 Provide mandatory annual purchasing
card-approval training for approving
officials and require them to sign a form
agreeing to program terms and
acknowledging their responsibilities
Partly
Implemented
All P-Card training has been moved to Acumen but some
technical issues arose in trying to assign this training annually. The Procurement Division is continuing to work with the Human Resources Department to find a solution.

Audit of the Department of Utilities Labor Reporting

Report #2016-04

Finding # Recommendation Status Update

Policies Can Be Improved and
Opportunities for Cost
Savings Through
Renegotiation Exist
8 Review the existing employee user access
to pay types and restrict access to only
those pay types for which an employee is
eligible.

Started The department is in the process of identifying Time Reporting Codes by each Bargaining Unit/Rep Unit. They
will aim to have eCAPS codes updated by the end of this calendar year.

Policies Can Be Improved and
Opportunities for Cost
Savings Through
Renegotiation Exist
14 Review and update all Department of
Utilities internal policies related to labor
reporting.

Partly
Implemented
DOU submitted extensive edits to the Policy and
Procedures manuals to Labor Relations in late 2020.

During the current reporting period, the department met with Labor Relations and was advised to make only
minimal changes to the Policy and Procedures manuals,
then resubmit them for review and guidance on next
steps. DOU staff are working on this update through the next period.

For interactive dashboards and copies of past reports, visit our website:
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Audit of the City's Risk Management Division

Report #2016-05

Finding # Recommendation Status Update

The City May Reduce Risk and
Liability by Making
Improvements to Some
Programs and Policies
16 Continue to work towards implementing
the updated draft of the Transportation
Policy to increase the insurance
requirement of employees driving their
personal vehicles for City business.

Partly
Implemented
No progress was made during the period. According to
the Risk Management Division, the Transportation Policy is still being reviewed in preparation for negotiations with the unions.

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Audit of the Department of Utilities Inventory

Report #2017-04

Finding # Recommendation Status Update

Strengthening the Physical
Security of Department of
Utilities Inventory Could
Reduce the Risk of Fraud,
Waste, and Abuse
3 Review the number and appropriateness
of employees with access to the
inventory warehouse and formalize
which positions can be granted access to
each warehouse in the inventory
policies.

Partly
Implemented
Phase 1 sitework (which includes fence removal, asphalt removal, electrical infrastructure, grading, and repaving) is scheduled to be completed by the end of August 2025.

Phase 2 (which includes fencing, concrete pad, container, and rack installation) is scheduled to start in September 2025.

Strengthening the Physical
Security of Department of
Utilities Inventory Could
Reduce the Risk of Fraud,
Waste, and Abuse
5 Establish a policy that prohibits
employees from borrowing City-owned
tools and equipment for personal use
and document employee
acknowledgement.

Partly
Implemented
Multiple inventory-related policies were updated and
condensed into one Inventory policy that was sent to
Labor Relations in May 2025. The draft Inventory Policy remains with Labor Relations for review.

While the Department of
Utilities’ Inventory Count
Procedures Appear Robust,
the Execution Breaks Down
7 Develop a process to ensure all
warehouses are included in the
inventory counts.

While the Department of
Utilities’ Inventory Count
Procedures Appear Robust,
the Execution Breaks Down
9 Formalize specific count methodologies
in a written policy.

While the Department of
Utilities’ Inventory Count
Procedures Appear Robust,
the Execution Breaks Down
11 Formalize a procedure for accurately
recording inventory count adjustments
in a written policy.

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While the Department of
Utilities’ Inventory Count
Procedures Appear Robust,
the Execution Breaks Down
13 Add an additional step to the water
meter serial number count that
reconciles the Water Meter Receipt and
Issue Log with Cityworks.

While the Department of
Utilities’ Inventory Count
Procedures Appear Robust,
the Execution Breaks Down
14 Review, update, and enforce inventory
policies related to the tracking of water
meters.

The Department of Utilities
Lacks Formal User Access
Policies and Procedures
Regarding Their Inventory
Systems
22 Formalize logical access to the inventory
systems in a written policy.

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Audit of Procurement for Services of $25,000 or Less

Report #2017-05

Finding # Recommendation Status Update

Procurement Guidance and
Training were Insufficient to
Ensure Employees Properly
Procured Services on Behalf
of the City
3 Develop processes to ensure EBO
analysis and reports are completed as
required by City policy.

Started Procurement is determining what reports and
audits can be run to gain compliance with the
monitoring requirements of the EBO policy.

Audit of the Department of Parks and Recreation's Strategic Planning and Part-time Employee Benefits Management
Report #2017-08

Finding # Recommendation Status Update

The Department of Parks and
Recreation Has Not Updated
Key Strategic Planning
Guidance
6 Define when it is appropriate to use the
“General Info” or “Other” call
categories.

Partly Implemented Staff transitioned to a new system
(Salesforce) and received training to
properly categorize 311 calls. The Auditor's
Office reviewed the call data available on
the City of Sacramento Open Data Portal to
determine whether the new system reduced
the percentage of calls labeled as 'other' or
'general.' The data did not indicate that the
issue was resolved, and YPCE staff confirmed
these findings. YPCE staff noted that the
issue may stem from 311 dispatch training.

Developing a Formal Cost
Recovery Philosophy May
Help the Department of Parks
and Recreation Better Align
9 Develop department-specific policies
and procedures.

Started The department has developed staff and
mandated reporter policies that are
currently being reviewed by the City
Attorney's office for finalization.

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Its Pricing Practices with Its
Mission and Core Values

Developing a Formal Cost
Recovery Philosophy May
Help the Department of Parks
and Recreation Better Align
Its Pricing Practices with Its
Mission and Core Values
10 Define the department’s cost recovery
goals and objectives.

Started The department is participating in a Citywide
fee study in October 2025 that will help
inform fee adjustments, and cost recovery
goals and objectives.

Developing a Formal Cost
Recovery Philosophy May
Help the Department of Parks
and Recreation Better Align
Its Pricing Practices with Its
Mission and Core Values
11 Evaluate the department’s fees and
charges to determine if they are in
alignment with the department’s
mission, vision, and cost recovery goals.

Started The department is participating in a Citywide
fee study beginning October 2025, that will
help inform fee adjustments, and cost
recovery goals and objectives.

Developing a Formal Cost
Recovery Philosophy May
Help the Department of Parks
and Recreation Better Align
Its Pricing Practices with Its
Mission and Core Values
12 Comply with the Citywide Fees and
Charges Policy by establishing cost
recovery goals and identifying cost
recovery levels.

Started The department is participating in a Citywide
fee study beginning in October 2025 that will
help inform fee adjustments, and cost
recovery goals and objectives.

Developing a Formal Cost
Recovery Philosophy May
Help the Department of Parks
and Recreation Better Align
Its Pricing Practices with Its
Mission and Core Values
14 Consider updating the fee structure for
some programs and services to include a
non-resident fee.

Started No reported progress has been made this
period.

Nearly Half of the Supervisors
Responsible for Administering
and Monitoring Part-Time
Employee Hours and Benefits
Have Not Received Labor
Relations Training
18 Develop policies and procedures on
part-time employee reporting,
responsibility, and training.

Partly Implemented The department is working on policy
surrounding youth work permits. Current
language is being reviewed by City
Attorney's Office. Further changes are taking
place in the youth-related hiring process,
particularly pertaining to work permits.

For interactive dashboards and copies of past reports, visit our website:
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Audit of the Department of Utilities Workplace Safety

Report #2018-02

Finding # Recommendation Status Update

The Department of Utilities
Lacks Sufficient Controls Over
the Administration and Use of
Safety and Personal
Protective Equipment
1 Review and update existing policies and
procedures concerning safety and
personal protective equipment to fill in
gaps and clarify its appropriate use.

Partly
Implemented
DOU submitted extensive edits to the Policy and
Procedures manuals to Labor Relations in late 2020.

The Department of Utilities
Should Implement Health and
Safety Best Practices to
Reduce Risks and Improve
Accountability
21 Develop a formal management of
change process.

Partly
Implemented
Labor Relations has sent the draft Management of
Change procedure back to DOU with substantial
suggested edits. The edits reflect changes to the City’s template. DOU staff are currently reviewing the edits for implementation.

The Department of Utilities
Should Implement Health and
Safety Best Practices to
Reduce Risks and Improve
Accountability
22 Review and update departmental safety
policies and procedures.

Partly
Implemented
DOU submitted extensive edits to the Policy and
Procedures manuals to Labor Relations in late 2020.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of Retiree Health Benefits

Report #2019/20-04

Finding # Recommendation Status Update

Recordkeeping of Retiree
Benefit Eligibility and
Elections Could be
Strengthened
3 Work with the IT department to identify
and resolve eCAPS health benefit report
errors for retirees.

Implemented The Human Resources Department (HR) partnered with the Information Technology Department (IT) to
investigate the reporting errors. IT determined that
manually changing employee or benefit record numbers
in eCAPS was not feasible. Instead, they developed a new retiree enrollment query using alternate data tables. This query captures retirees who were previously excluded
and now supports HR’s reconciliation process. In addition to this query, HR also relies on enrollment records from carriers and their discrepancy reports as part of its
broader system of checks and balances.

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Audit of the 911 Emergency Communications Center

Report #2019/20-05

Finding # Recommendation Status Update

Finding 1: Call Answer Times
Have Improved and Are
Exceeding State Standards
2 Consider improving the supervisor-to-
dispatcher ratio to provide better
supervisory coverage.

Partly
Implemented
Promotion into this vacant position is pending attaining adequate staffing at the Dispatcher I/II positions to
manage line level duties. Once that objective is obtained we plan to promote to fill this position and reduce span of control for floor Dispatcher III's.

Finding 2: Quality Assurance
and Disaster Preparedness
Could Be Improved by
Adopting Industry Best
Practices
7 Develop and document a continuous
quality assurance program based on
industry standards that includes
reviewing a percentage of all calls and
incorporates an evaluator calibration
process.

Partly
Implemented
The Communications Center has tested for, and is
currently in the unfreezing/selection of, a new Dispatcher 3 to create the QA supervisor position. This new
promotion will accompany the development of a QA
program over the coming months.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of the Department of Utilities Vehicle Fleet

Report #2018/19-11

Finding # Recommendation Status Update

The Department of Utilities
Can Realize Cost Savings
Through Improved
Management of Their Vehicle
Fleet
8 Formalize the Fleet Engine Idling Limit
Policy and post the policy on the City's
Policies and Procedures webpage.

Partly
Implemented
No progress was made during the period. The policy
remains with the Labor Relations Division for review.

System Access and Data
Quality Could Be Improved to
Better Enable Management
to Perform Analyses and
Identify Trends
19 Review the data captured by the M5
system, determine key data fields, and
implement controls to ensure these
fields contain accurate and complete
information.

Partly
Implemented
The Fleet Management Division has identified key fields and implemented processes to input the data into the M5 system. We spot-checked these fields to determine
amount of data that has been inputted into the system to verify decrease in empty cells. The division will submit information about controls used to verify the accuracy of data and to increase the rate of key fields filled by next recommendation follow-up period.

The City Can Mitigate Risk by
Better Documenting and
Tracking Employee Licensure,
Certifications, and Insurance
Information
24 Revise the City Employee's
Transportation Policy and Procedures to
require employees to provide proof of
licensure when using pool vehicles.

Partly
Implemented
No progress was made during the reporting period. The
policy is still with Labor Relations for review.

For interactive dashboards and copies of past reports, visit our website:
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Audit of City-Owned and Leased Real Property

Report #2019/20-02

Finding # Recommendation Status Update

The City Has Potential Surplus
and Remnant Parcels That
Could Be Leveraged to
Achieve A Variety of City
Goals
2 Develop policies and procedures to
provide guidance on how asset-
managing departments should ensure
all City-owned properties are
appropriately secured and maintained.

Not Started No progress was made during the reporting
period.

The City’s Real Property
Management Is Decentralized
and Would Benefit from
Detailed Policy Development
8 Work with the City Attorney’s Office to
create lease contract templates that
include key contract provisions to
ensure consistency in City lease
contracts.

Partly Implemented No progress was made during the reporting period.

The City’s Real Property
Management Is Decentralized
and Would Benefit from
Detailed Policy Development
11 Work with the Finance Department to
establish a uniform policy that provides
the process and steps required for
acquisition and disposition of City-
owned properties. Procedures should
include details regarding compliance
with Sacramento City Code and
California State Law, financial reporting
standards between the Real Estate
Service Section and the Department of
Finance, and the method of storing
documents and financial records.

Started No progress was made during the reporting
period.

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Appropriate Management of
City-Owned and Leased Real
Property Is Required to
Ensure Financial Statements
Comply with the Government
Accounting Standards Board
16 Work with other City departments to
identify real property tracking needs
and utilize a Citywide software program
or develop another platform to
centralize the management of the City’s
real property
Partly Implemented The IT department has redesigned the INFOR i7 system to include new fields for Risk,
Facilities, and Real Estate, enabling improved
tracking of parcels and the storage of
easement records. Enhancements have also
been implemented to support the scanning
and storage of related documents within the
City's document management system
(CARA).

Appropriate Management of
City-Owned and Leased Real
Property Is Required to
Ensure Financial Statements
Comply with the Government
Accounting Standards Board
17 Centralize City lease inventory and
document clear processes for all City
departments to follow to standardize
maintenance of City lease inventory,
including utilizing the Asset Database or
new platform used for real property
inventory to ensure consistent tracking
and consolidation of Citywide lease
inventory.

Started No progress has been made during this
reporting period.

Appropriate Management of
City-Owned and Leased Real
Property Is Required to
Ensure Financial Statements
Comply with the Government
Accounting Standards Board
18 Work with the City’s Finance
Department to develop policies and
procedures on lease revenue billing and
collection processes
Started No progress has been made during this
reporting period.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of the City's Green Efforts

Report #2020/21-04

Finding # Recommendation Status Update

Improved Monitoring and
Reporting of Sustainability
Data, Progress, and
Outcomes Is Essential for
Tracking Impacts and
Realizing the Intended
Benefits
6 Develop and track performance
measures as they relate to published
sustainability goals.

Implemented The Climate Action & Adaptation Plan (CAAP), as approved in Resolution #2024-0067, includes proposed performance measures, and a strategy for monitoring and tracking
progress. On May 8, 2025, staff presented the General
Plan and CAAP Annual Progress Reports (APRs) to the
Planning and Design Commission. A presentation on these APRs to the full City Council occurred on July 29, 2025. The General Plan and CAAP APRs include updates on
performance measures identified in the General Plan and CAAP. As stated in the CAAP, the City will provide a report with information on the implementation status and
monitoring results to City Council in 2027.

Improved Monitoring and
Reporting of Sustainability
Data, Progress, and
Outcomes Is Essential for
Tracking Impacts and
Realizing the Intended
Benefits
7 Ensure sustainability reports consistently
track and report progress over time.

Centralized Management and
Oversight of the City’s
Sustainability Efforts May
Better Position the City to
Establish Sustainability as an
12 Develop guidance on prioritizing
Citywide sustainability goals.

Partly
Implemented
Staff is revising the Staff Sustainability Training on Acumen in preparation for a Citywide launch in 2025.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Organizational Priority and
Core Value

Centralized Management and
Oversight of the City’s
Sustainability Efforts May
Better Position the City to
Establish Sustainability as an
Organizational Priority and
Core Value
13 Establish a Citywide internal
communication strategy and
accountability mechanism for
sustainability goals and priorities.

Partly
Implemented
The Climate Action & Adaptation Plan (CAAP) includes
sustainability goals, proposed performance measures, and a strategy for monitoring and tracking progress. City staff are working with a consultant team to develop a
monitoring tool in conjunction with finalization of the CAAP. The monitoring tool ('CapDash') will launch in 2025 and will be available to internal staff as an accountability mechanism for sustainability goals and priorities. Regular reporting will be conducted on the CAAP sustainability
goals (as part of the broader annual General Plan
reporting) by the Community Development Department,
with a recent report to the Planning and Design
Commission on May 8, 2025 and to the full City Council on July 29, 2025.

Centralized Management and
Oversight of the City’s
Sustainability Efforts May
Better Position the City to
Establish Sustainability as an
Organizational Priority and
Core Value
18 Assist other City departments and
offices with incorporating sustainability
into their department-level operations
through the creation, implementation,
and tracking of specific performance
goals.

Partly
Implemented
The Climate Action & Adaptation Plan (CAAP) includes
proposed performance measures, and a strategy for
monitoring and tracking progress. Staff will revisit these department sustainability performance goals through the Climate Action Task Force to identify department specific goals.

Awareness of and Compliance
with Sustainable Policies,
Procedures, and Plans Could
Be Strengthened
24 Review and update the Sustainable
Purchasing Policy.

Partly
Implemented
The Sustainable Purchasing Policy has been updated and is undergoing final approval.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of the Cannabis Storefront Dispensary Permitting Process

Report #2020/21-09

Finding # Recommendation Status Update

Ownership of Cannabis
Dispensary Operating Permits
were Transferred Between
Individuals and Corporate
Entities as a result of
Ambiguity in the City Code
and an Evolving Regulatory
Environment
1 Seek direction from City Council to
determine whether dispensary transfers
should be allowed. The Office of Cannabis
Management in conjunction with the City
Attorney’s Office should then propose a
City Code update that clearly articulates
the policy and legal goals of the City
Council, that are in conformance with
State law.

Partly
Implemented
OCM continues to evaluate transfer code modifications
and plans to present to both L&L and the Council in 2026, as an integral part of a comprehensive code refinement
initiative.

OCM is looking to review all of Title 5 in a comprehensive assessment later this year to address the audit
recommendation.

The City Needs to Better
Define Ownership if it Expects
to Enforce City Code
Restrictions on Ownership
and Manage who is Truly
Behind its Permitted
Cannabis Related Businesses
3 Seek direction from City Council to
determine standards and definitions of
ownership of cannabis dispensaries in the
City. At minimum, these discussions
should include a definition of clear
ownership and limits on ownership for all
cannabis dispensary owners. The Office
of Cannabis Management in conjunction
with the City Attorney’s Office should
then propose a City Code update that
articulates the ownership policy and
goals of the City Council, that are in
conformance with State law.

Partly
Implemented
OCM continues to evaluate transfer code modifications
and plans to present to both L&L and the Council in 2026, as an integral part of a comprehensive code refinement
initiative.

OCM is looking to review all of Title 5 in a comprehensive assessment later this year to address the audit
recommendation.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of the Sacramento Community Police Review Commission

Report #2021/22-06

Finding # Recommendation Status Update

The Lack of Clearly Defined
Roles and Responsibilities has
Led to Confusion and
Frustration
1 The City Council should clarify the
purpose, powers, and duties of the
Sacramento Community Police Review
Commission and how it interacts with
other City departments to achieve its
objectives. The City Council should
memorialize the specific purpose,
powers, and duties, through resolution,
ordinance, or codifying the changes in
the City Code.

Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
2 The City Council should determine the
staffing needs and responsibilities, and
funding for the Sacramento Community
Police Review Commission. The City
Council should memorialize the specific
role of staff provided, the funding source,
and what City office or department will
house the position, through resolution or
codifying the changes in the City Code.

Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
3 The City Council should determine the
training curriculum that SCPRC
Commissioners should be required to
complete and potential remedies if
training is not completed.

Started No progress has been made during this reporting period.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
4 The City Council should codify the
training requirements for the Sacramento
Community Police Review Commission in,
at minimum, City Council ordinance. The
Sacramento Community Police Review
Commission also should include the
training requirements in its policies and
procedures.

Not Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
5 Identify resources to provide the
Sacramento Community Police Review
Commission with an increased internet
presence.

Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
6 Work with the Sacramento Community
Police Review Commission, the City
Manager’s Office and City Council to
develop policies and procedures for
communicating with the public.

Not Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
9 Provide secure email accounts for
Sacramento Community Police Review
Commission Commissioners and require
the use of these email addresses to
conduct Commission-related business.

Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
10 Develop and implement policies for email
use and provide training to the
Sacramento Community Police Review
Commissioners.

Started No progress has been made during this reporting period.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

The Sacramento Community
Police Review Commission
Requires
Resources and Investment
from the City to Effectively
Achieve its Objectives.
11 Determine the level of access to
information across City government
needed by the Sacramento Community
Police Review Commission to fulfill its
City Code mandated duties. The City
Council should memorialize the
Sacramento Community Police Review
Commission’s access to information in
either resolution, ordinance, or in the
City Code.

Not Started No progress has been made during this reporting period.

This dialogue should identify a process
for the presentation of the
recommendations and vote. Finally, the
process should be presented to City
Council to be memorialized in City
Council resolution or ordinance.

Not Started No progress has been made during this reporting period.

The Sacramento Community
Police Review Commission is
in Need of a
Recommendation and
Follow-Up Process to Ensure
the Recommendations are
Documented, Presented to
the City Council, and
Recommendations that are
Approved are Implemented
by the Relevant Department.
15 Determine whether the City should track
and report on the implementation status
of Sacramento Community Police Review
Commission recommendations. The City
Council should consider adopting a
process to track and report on the
implementation status of SCPRC
recommendations that includes the
department responsible. Finally, the City
Council should consider whether to
memorialize the requirement and
process in resolution or ordinance.

Partly
Implemented
No progress has been made during this reporting period.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

The Sacramento Community
Police Review Commission is
in Need of a
Recommendation and
Follow-Up Process to Ensure
the Recommendations are
Documented, Presented to
the City Council, and
Recommendations that are
Approved are Implemented
by the Relevant Department.
16 Determine whether to provide resources
for making SCPRC recommendation
responses and implementation status
publicly available in a transparent and
timely manner. The City Council should
identify additional funding for the
tracking process. Finally, the City Council
should consider whether to memorialize
the funding provision in resolution or
ordinance.

Partly
Implemented
No progress has been made during this reporting period.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Vendor Audit of Wide Open Walls

Report #2022/23-01

Finding # Recommendation Status Update

Executing A Contract with the
Wrong Entity and Awarding
Funding Without Written
Agreements Compromised
the City’s Ability to Audit
Wide Open Walls and David
Sobon Events
1 Update the Grant Distribution Policy to
clarify that sponsorships should also have
written agreements documenting the
intended use of City funds, the
requirement for recipients to document
the appropriate use of funds, and
expectations that such records will be
made available to assess compliance in a
timely manner.

Implemented The City’s Manager’s Office finalized the Sponsorship Request Form to document the public benefit and use of
funds. This form clarifies that sponsorships should also have written agreements documenting the intended use
of City funds, the requirement for recipients to document the appropriate use of funds, and expectations that such records will be made available to assess compliance in a timely manner. These requirements became effective on
May 8, 2025, and implementation resources are available on the City Manager's Nexus page.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Language Access Gap Analysis, Survey Results, and Policy Recommendations Report #2022/23-05

Finding # Recommendation Status Update

Policy recommendations
from gap analysis
1 Establish and maintain robust language
access capabilities for Spanish speaking
LEP residents.

Partly
Implemented
The Language Access Policy has been finalized and is
available on the City of Sacramento’s Policies and
Procedures website in both English and Spanish. The
Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
2 Evaluate whether any department
programs serve a significantly higher LEP
population than that of the overall City-
wide population and apply more robust
language services towards those
programs.

Partly
Implemented
The Language Access Policy has been finalized and
addresses programs and services that will serve a
significantly higher LEP population. The Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
3 The City should refer to the U.S. Census
and Language Link usage data from the
City’s 311 and 911 departments to
regularly evaluate the number and
proportion of LEP individuals and use this
information in assessing the sufficiency of
the City’s language access services.

Partly
Implemented
The Language Access Policy has been finalized and
addresses the Language Access Coordinator’s duty to
track data concerning the City's LEP population and the frequency of City staff’s encounters with LEP individuals.

This information will be collectively used to assess the sufficiency of the City's language access services. The City will refer to the data provided by LEP.gov, U.S. Census Bureau, LSCs, and the City's 311 and 911 programs. The
Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
4 Provide guidance on whether programs
should perform additional outreach to LEP
persons to increase the frequency of
contact with LEP language groups.

Partly
Implemented
The Language Access Policy has been finalized, and
addresses developing guidance for City departments to
identify their documents and determine areas where
language access expansion can occur, within reason, and when funding allows. The Language Access Coordinator
and staff are in the process of implementing the
recommendations.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Policy recommendations
from gap analysis
5 Provide guidance on whether programs
that interact frequently with LEP
individuals should provide meaningful
language access services at a broader
scale than departments who have
infrequent encounters.

Partly
Implemented
The Language Access Policy has been finalized and
addresses developing guidance on whether programs that
interact frequently with LEP individuals should provide meaningful language access services at a broader scale
than departments who have infrequent encounters. The
Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
6 Evaluate whether funding for language
services is sufficient based on the volume
of LEP individuals that interact with City
departments or programs and the relative
importance of the services they provide.

Partly
Implemented
The Language Access Policy has been finalized and
addresses tracking the City’s overall budget and funding for language services and determining whether a request should be made for increased funding. The Language
Access Coordinator and staff are in the process of
implementing the recommendations.

Policy recommendations
from gap analysis
7 Train City staff on language access
procedures. This training may include the
process for arranging interpreters where
appropriate, the list of providers the City
currently contracts with and what services
they provide, and the differences between
translation and interpretation services.

Partly
Implemented
The Language Access Policy has been finalized and
addresses training City staff on language access
procedures and successful interactions with LEP
individuals. The Language Access Coordinator and staff
are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
8 Provide guidance and train staff on how to
respond in situations where a minor or
family member is asked to serve as an
interpreter.

Partly
Implemented
The Language Access Policy has been finalized and
addresses providing guidance and training staff on how to respond in situations where a minor or family member is asked to serve as an interpreter. The Language Access
Coordinator and staff are in the process of implementing the recommendations.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Policy recommendations
from gap analysis
9 Provide direction on how and when
bilingual staff are used for translation
services and when professional translators
should be used for vital documents,
website content, and for lengthy
documents.

Partly
Implemented
The Language Access Policy has been finalized and
addresses providing direction on how and when bilingual staff are used for translation services and when
professional translators should be used for vital
documents, website content, and for lengthy documents.

The Language Access Coordinator and staff are in the
process of implementing the recommendations.

Policy recommendations
from gap analysis
10 We recommend the City leverage the
resources and best practices on the
LEP.gov website in developing the
Citywide language access policy, to ensure
the City’s websites are accessible and that
the use of machine translation is accurate.

Partly
Implemented
The Language Access Policy has been finalized and states that the Language Access Coordinator will regularly check with the federal LEP.gov website to leverage available
resources and stay informed about developing
technologies that will improve translation accuracy. The Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
11 Develop guidance for City departments to
identify their vital documents and
determine how to provide robust
language services for those documents.

Partly
Implemented
The Language Access Policy has been finalized and will
provide guidance for City departments to identify their vital documents and determine how to provide robust
language services for those documents. The Language
Access Coordinator and staff are in the process of
implementing the recommendations.

Policy recommendations
from gap analysis
12 Train City employees on how to determine
if an individual is LEP and how and when
to offer language assistance.

Partly
Implemented
The Language Access Policy has been finalized and
addresses training City employees on how to determine if an individual is LEP and how and when to offer language assistance. The Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
13 Employ additional means to proactively
notify LEP individuals of the availability of
language services.

Partly
Implemented
The Language Access Policy has been finalized and
addresses employing additional means to proactively
notify LEP individuals of the availability of language
services. The Language Access Coordinator and staff are in the process of implementing the recommendations.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Policy recommendations
from gap analysis
14 Develop a mechanism that allows LEP
individuals to file a complaint to provide
feedback about the City’s language access
services.

Partly
Implemented
The Language Access Policy has been finalized and
addresses developing a mechanism that allows LEP
individuals to file a complaint to provide feedback about the City’s language access services. The Language Access Coordinator and staff are in the process of implementing the recommendations.

Policy recommendations
from gap analysis
15 Consider providing on-going funding for
citywide language access marketing, so
that more community members are aware
of the language access services provided
by the City.

Partly
Implemented
The Language Access Policy has been finalized and
addresses providing on-going funding for citywide
language access marketing, so that more community
members are aware of the language access services
provided by the City. The Language Access Coordinator
and staff are in the process of implementing the
recommendations.

Policy recommendations
from gap analysis
16 Consider appointing a citywide LEP
coordinator or a working group of
individuals from different departments to
regularly monitor/update the agency’s
response to LEP needs.

Partly
Implemented
The Language Access Policy has been finalized and states the City will appoint a citywide LEP coordinator to ensure the effective implementation of the policy and program.

The coordinator's duties include reviewing and updating the policy and citywide program as needed and providing updates and ideas for ongoing improvement. The
Language Access Coordinator and staff are in the process of implementing the recommendations.

For interactive dashboards and copies of past reports, visit our website:
https://www.cityofsacramento.gov/auditor/our-reports/recommendation-follow-up

Audit of the Sacramento Police Department’s Evidence and Property Division – Sexual Assault Evidence Kits Report #2023/24-04

Finding # Recommendation Status Update

Opportunities Exist for the
Sacramento Police
Department to Update
Evidence Procedures Related
to Sexual Assault Evidence as
Recommended by Best
Practices
5 Consider requiring regularly scheduled
audits and identify metrics to collect and
report to SPD management.

Partly
Implemented
During this period, the Sacramento Police Department
continued to work on an automated audit process that
will produce quarterly reports to determine the status of sexual assault evidence kits as well as any anomalies.

According to the department, the current output needs
to be refined so that can be utilized more efficiently and easier to read, without multiple layers of filtering and refinement.

Audit of the Department of Utilities Supervisory Control and Data Acquisition (SCADA) System Report #2023/24-08

Finding # Recommendation Status Update

Audit standards allow for the
exclusion of information from
a publicly available or widely
distributed report in
circumstances associated
with public safety, privacy, or
security concerns. Due to the
critical and sensitive nature of
SCADA, this report omits
details that could put SCADA
at risk.
1-8 Audit standards allow for the exclusion of
information from a publicly available or
widely distributed report in circumstances
associated with public safety, privacy, or
security concerns. Due to the critical and
sensitive nature of SCADA, this report
omits details that could put SCADA at risk.

Partly
Implemented
Audit standards allow for the exclusion of information
from a publicly available or widely distributed report in circumstances associated with public safety, privacy, or security concerns. Due to the critical and sensitive nature of SCADA, this report omits details that could put SCADA at risk.

Budget and Audit CommitteeSeptember 16, 2025

Budget and Audit Committee
September 16, 2025