City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01715 10/21/2025
City Auditor's Activity Report for the 4th Quarter of Fiscal Year (FY) 2024/2025 File ID: 2025-01715
Location: Citywide
Recommendation: Pass a Motion approving the City Auditor’s Activity Report for the 4th Quarter of FY2024/25.
Contact: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected], Office of the City Auditor
Presenter: None
Attachments:
1-Description/Analysis
2-City Auditor’s Activity Report for the 4th Quarter of FY2024/25 Description/Analysis
Issue Detail: According to the Council Rules of Procedure, the Budget and Audit Committee shall receive, review, and forward to the council as appropriate, reports, recommendations, and updates from the City Auditor. This report documents the City Auditor’s Activity Report for the 4th Quarter of FY2024/25.
Policy Considerations: The City Auditor’s Activity Report for the 4th Quarter of FY2024/25 is consistent with the Mayor and the City Council’s intent to have an independent audit function for the City of Sacramento.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: None.
Commission/Committee Action: On September 16, 2025, the Budget and Audit Committee passed a motion to accept the City Auditor’s Activity Report for the 4th Quarter of FY2024/25 and to forward
File ID: 2025-01715 10/21/2025
to the City Council for approval.
Rationale for Recommendation: This staff report provides the City Council with information that may be used to meet its responsibility to provide oversight and supervision of the City Auditor.
Financial Considerations: The costs of the projects listed in the Activity Report were mostly funded out of the Office of the City Auditor Budget in the applicable fiscal year.
Local Business Enterprise (LBE): None.
April through June 2025 Report Number: 2025/26-03
Q U A R T E R L Y
A C T I V I T Y
R E P O R T
Fourth Quarter of Fiscal Y ear 2024/25
Reports Issued During the Fourth Quarter of FY 2024/25
Introduction
T h e Q u a r t e r l y A c t i v i t y R e p o r t h i g h l i g h t s t h e a c t i v i t i e s o f t h e O f f i c e o f t h e C i t y A u d i t o r f o r t h e f o u r t h q u a r t e r o f f i s c a l y e a r ( F Y ) 2 0 2 4 / 2 5 . T h i s r e p o r t a l s o i d e n t i f i e s t h e s t a t u s o f t h e C i t y A u d i t o r ' s F i s c a l Y e a r 2 0 2 4 / 2 5 W o r k P l a n p r o j e c t s .
T h e O f f i c e o f t h e C i t y A u d i t o r i s s u e d s e v e r a l r e p o r t s d u r i n g t h e f o u r t h q u a r t e r o f F Y 2 0 2 4 / 2 5 .
A u d i t o f S a c r a m e n t o
P o l i c e D e p a r t m e n t ' 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
C i t y ' s H o m e l e s s
R e s p o n s e : U p d a t e d
A u d i t S c o p e
P r o p o s a l
A u d i t o f t h e
C i t y ' s H o m e l e s s
R e s p o n s e : C i t y
M o t e l P r o g r a m
C i t y A u d i t o r ' 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 :
J u l y - D e c e m b e r
2 0 2 4
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
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
O f f i c e o f t h e C i t y
A u d i t o r ' s 2 0 2 5 - 2 6
W o r k P l a n
D E I E f f o r t s
T h e O ffi c e ' s R a c i a l a n d G e n d e r
E q u i t y A c t i o n P l a n ( R G E A P ) T e a m c o n t i n u e d t o w o r k t o w a r d s t h e
C i t y w i d e c o o r d i n a t e d s t r a t e g i c w o r k p l a n fo c u s e d o n w o r k fo r c e
e q u i t y .
Other Highlights
T h e f o l l o w i n g h i g h l i g h t s o t h e r a c t i v i t i e s o f t h e O f f i c e o f t h e C i t y A u d i t o r f o r t h i s r e p o r t i n g p e r i o d .
S t a f f V a c a n c i e s P a s s e d P e e r R e v i e w 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 O ffi c e 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 t h a t fo u n d t h e O ffi c e ’ s i n t e r n a l q u a l i t y c o n t r o l s y s t e m i s w e l l - d e s i g n e d a n d o p e r a t i n g e ffec t i v e l y ,
p r o v i d i n g r e a s o n a b l e a s s u r a n c e o f c o m p l i a n c e w i t h 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 fo r a u d i t w o r k c o m p l e t e d b e t w e e n J a n u a r y 2 0 2 2 a n d D e c e m b e r 2 0 2 4 .
W h i s t l e b l o w e r
H o t l i n e
T h e O ffi c e r e c e i v e d a n d p r o c e s s e d a n u m b e r o f w h i s t l e b l o w e r
a l l e g a t i o n s .
T h e O ffi c e c o n t i n u e d t o h a v e s t a ff v a c a n c i e s d u e t o t u r n o v e r a n d
p r o m o t i o n s . D u r i n g t h i s r e p o r t i n g p e r i o d , t h e O ffi c e i n i t i a t e d t h e r e c r u i t m e n t p r o c e s s fo r t w o 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 p o s i t i o n s .
S e v e r a l e m p l o y e e s o f t h e O ffi c e
a t t e n d e d 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 n n u a l
C o n fer e n c e t o fu r t h e r d e v e l o p
t h e i r k n o w l e d g e b a s e a n d s k i l l s .
As 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
Au d i t o r s C o n f e r e n c e
F i s c a l Y e a r 2 0 2 5 / 2 6
W o r k P l a n Ap p r o v e d
T h e O ffi c e ' s F i s c a l Y e a r 2 0 2 5 / 2 6 W or k P l a n w a s p r e s e n t e d t o a n d
a p p r o v e d b y t h e C i t y C o u n c i l .
P r o j e c t s I n i t i a t e d
T h e O ffi c e i n i t i a t e d t h e R e v i e w of t h e D e p a r t m e n t of U t i l i t i e s ' S t or m
D r a i n a g e F u n d a n d T h e A u d i t of t h e C i t y ' s H om e l e s s R e s p on s e : E v a l u a t i on of C os t s a n d O u t c om e s of H om e l e s s S h e l t e r T y p e s .
FY 2024/25 W ork Plan Assignments In-Progress
A u d i t o f F i r e D e p a r t m e n t E m e r g e n c y M e d i c a l S er v i c es T h e a u d i t i s c u r r e n t l y i n t h e R e p o r t W r i t i n g p h a s e . D u r i n g t h e l a s t q u a r t e r , w e h a v e m a d e p r o g r e s s d r a f t i n g t h e r e p o r t , u p d a t i n g a n a l y s i s , a n d m e e t i n g w i t h k e y s t a k e h o l d e r s t o u n d e r s t a n d o p p o r t u n i t i e s t o c o l l a b o r a t e i n d e p l o y m e n t o f e m e r g e n c y m e d i c a l s e r v i c e s t h r o u g h o u t t h e C i t y .
T h e f o l l o w i n g h i g h l i g h t s t h e s t a t u s o f t h e F i s c a l Y e a r 2 0 2 4 / 2 5 W o r k P l a n a s s i g n m e n t s i n - p r o g r e s s .
A u d i t o f t h e C i t y ' s H o m e l e s s R e s p o n s e : E v a l u a t i o n o f C o s t s a n d O u t c o m e s o f H o m e l e s s S h e l t e r T y p es T h i s a u d i t w a s i n i t i a t e d d u r i n g t h i s r e p o r t i n g p e r i o d a f t e r t h e C i t y C o u n c i l a p p r o v e d t h e p r o j e c t s c o p e . T h e a u d i t w i l l e x a m i n e t h e C i t y ’ s h o m e l e s s s h e l t e r s y s t e m b y a s s e s s i n g c o s t s , e f f e c t i v e n e s s , a c c e s s i b i l i t y f o r d i v e r s e p o p u l a t i o n s , a n d p r a c t i c e s a s s o c i a t e d w i t h p o s i t i v e h o u s i n g o u t c o m e s , w i t h t h e g o a l o f p r o v i d i n g r e c o m m e n d a t i o n s t o e n h a n c e e f f i c i e n c y a n d i m p a c t . T h e r e v i e w w i l l f o c u s o n s h e l t e r p r o g r a m s o p e r a t e d o r f u n d e d b y t h e C i t y .
A u d i t o f t h e D e p a r t m e n t o f U t i l i t i es ' E n er g y U s e T h i s a u d i t i s c u r r e n t l y i n t h e R i s k A s s e s s m e n t p h a s e o f t h e a u d i t . T h i s a u d i t w i l l e v a l u a t e t h e D e p a r t m e n t o f U t i l i t i e s ’ e n e r g y a n d f l e e t i n i t i a t i v e s b y r e v i e w i n g c o s t s , c o m p l i a n c e , v e n d o r p e r f o r m a n c e , a n d c o n t r a c t u a l o b l i g a t i o n s r e l a t e d t o p o w e r p u r c h a s e a g r e e m e n t s , t h e S M U D S o l a r S h a r e s P r o g r a m , a n d z e r o - e m i s s i o n v e h i c l e r e q u i r e m e n t s , w i t h t h e g o a l o f i d e n t i f y i n g r i s k s a n d o p p o r t u n i t i e s t o i m p r o v e e f f i c i e n c y a n d r e l i a b i l i t y .
T h i s a u d i t i s c u r r e n t l y i n t h e F i e l d w o r k p h a s e . T h e a u d i t ' s t e s t i n g p l a n h a s b e e n u p d a t e d t o r e f l e c t c h a n g e s t o d e p a r t m e n t a l p r o c e d u r e s a n d t o c o n f i r m a l i g n m e n t w i t h a u d i t o b j e c t i v e s a n d c r i t e r i a . P r o g r e s s h a s b e e n s l o w e r t h a n p l a n n e d d u e t o l i m i t e d s t a f f a v a i l a b i l i t y .
A u d i t o f t h e T r a n s i e n t O c c u p a n c y T a x A u d i t o f t h e S a c r a m e n t o P o l i c e D e p a r t m e n t ’ s P r o p er t y a n d E v i d e n c e D i v i s i o n
O u r o f f i c e r e - i n i t i a t e d t h e p e r f o r m a n c e a u d i t o f t h e S a c r a m e n t o P o l i c e D e p a r t m e n t ’ s P r o p e r t y a n d E v i d e n c e D i v i s i o n t o e v a l u a t e c u r r e n t p r a c t i c e s a g a i n s t i n d u s t r y s t a n d a r d s a n d i d e n t i f y o p p o r t u n i t i e s f o r i m p r o v e m e n t . O v e r t h e p a s t q u a r t e r , w e c o n d u c t e d i n t e r v i e w s w i t h S P D p e r s o n n e l , r e v i e w e d b e s t p r a c t i c e s , a n d a n a l y z e d i n f o r m a t i o n g a t h e r e d t h r o u g h f a c i l i t y w a l k - t h r o u g h s a n d d e p a r t m e n t a l d a t a .
FY 2024/25 W ork Plan Assignments In-Progress (Continued) A u d i t o f t h e C i t y ' s C o m p l a i n t I n v e s t i g a t i o n a n d R es o l u t i o n P r a c t i c e s
T h i s a u d i t h a s b e e n p l a c e d o n a t e m p o r a r y h o l d d u e t o d e p a r t m e n t r e s o u r c e c o n s t r a i n t s . T h e a u d i t w i l l b e r e - i n i t i a t e d w h e n s u f f i c i e n t d e p a r t m e n t r e s o u r c e s a r e a v a i l a b l e . 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 P o t e n t i a l C o s t S a v i n g s a n d R e v e n u e R e c o v er y A u d i t S er v i c es – U t i l i t y C o s t R e c o v e r y A u d i t
T h i s p r o j e c t w a s i n i t i a t e d d u r i n g t h e p r e v i o u s q u a r t e r a n d w i l l e x p l o r e e n t e r i n g i n t o c o n t i n g e n c y c o n t r a c t s w i t h a v e n d o r t o c o n d u c t t h i r d - p a r t y a u d i t s t o p o t e n t i a l l y i d e n t i f y c o s t s a v i n g s a n d / o r o t h e r a u d i t s t o r e c o v e r p o t e n t i a l p a s t t a x e s o r a n y o t h e r m o n i e s o r r e v e n u e o w e d t o t h e C i t y t h a t w e r e n o t p r o p e r l y a t t r i b u t e d t o t h e C i t y o r w e r e n o t p r o p e r l y p a i d / c o l l e c t e d a n d t o d e t e r m i n e p o t e n t i a l f u t u r e t a x e s a n d o t h e r m o n i e s o w e d t o t h e C i t y n o t p r e v i o u s l y c o u n t e d . D u e t o s t a f f t u r n o v e r , t h i s p r o j e c t w a s t e m p o r a r i l y p u t o n h o l d d u r i n g t h i s r e p o r t i n g p e r i o d .
R e v i e w o f t h e D e p a r t m e n t o f U t i l i t i es ' S t o r m D r a i n a g e F u n d T h i s p r o j e c t w a s i n i t i a t e d d u r i n g t h i s r e p o r t i n g p e r i o d a n d w i l l a n a l y z e t h e f i s c a l s u s t a i n a b i l i t y o f t h e S t o r m D r a i n a g e F u n d , i n c l u d i n g t h e n e w S t o r m D r a i n a g e P r o p e r t y F e e , a n d f o r e c a s t f u t u r e r e v e n u e s b a s e d o n v a r i o u s s c e n a r i o s , i n c l u d i n g p o t e n t i a l r a t e i n c r e a s e s .