TO: Rules & Open Government Committee FROM: Joe Rois,
City Auditor
SUBJECT: Monthly Report of Activities for DATE: January 5, 2022 December 2021
RECOMMENDATION
Approve the Auditor’s Office Monthly Report of Activities for the month of December 2021.
SUMMARY OF RESULTS
Charter Section 8.05(e) requires the City Auditor to submit a monthly report to the City Council of our activities, findings, and recommendations. This report summarizes reports issued, other activities, assignments in process, and the status of the City Auditor’s Fiscal Year (FY) 2021-22 Work Plan during the month of December 2021.
Activities During the Month of December:
1. Issued Annual Report on City Services FY 2020-21. The report is online at:
https://www.sanjoseca.gov/your-government/appointees/city-auditor/servicesreport/current-report.
2. Macias, Gini & O’Connell (MGO) issued several of the City’s annual financial audits.
The reports are online at: https://www.sanjoseca.gov/your-government/appointees/cityauditor/external-financial-audits. The Parks Bond audit was presented to the Parks Commission on December 1, 2021 and the Measure T Bond audit to the Measure T Oversight Committee on December 9, 2021.
Information on the status of the City Auditor’s FY 2021-22 Work Plan is attached. On behalf of the Auditor’s Office, I would like to express my appreciation to City staff for their cooperation and assistance during our reviews.
Joe Rois
City Auditor
Attachment
RULES COMMITTEE AGENDA: 1/12/2022
ITEM: G.2
RULES AND OPEN GOVERNMENT COMMITTEE
Monthly Report of Activities for December 2021
Status of the City Auditor’s FY 2021-22 Audit Work Plan As of December 2021
Objective Status
Projected
Issuance
Date
Assignments Completed
1. Code Enforcement Management
Controls
Evaluation of oversight and management of Code Enforcement officials (added to work plan by the Rules Committee
November 18, 2020).
Completed September
2021
2. Semi-annual audit
recommendation status report
The City Auditor’s Office will maintain an online dashboard of audit recommendations, and issue a report on the
implementation status of all open audit recommendations as of June 30, 2021.
Completed September
2021
3. Municipal Water Billing and
Customer Service
Accuracy of billing and customer service responses for Municipal Water services. Completed October
2021
4. Semi-annual compliance reviews
of the City’s investment
program
(contracted audit service)
The City’s investment policy requires semi-annual compliance audits of the City’s investment portfolio. MGO will conduct the agreed-upon procedures as of June 30th. Completed October 2021
5. Annual audits of voter-approved
bond and parcel tax measures
(contracted audit service)
MGO will conduct audits of the Branch Library Bond Projects Fund, the Parks and Recreation Bond Projects Fund, the Public Safety Bond Projects Fund, the Library Parcel Tax Fund, and the Public Safety and Infrastructure (“Measure T”) Bond Fund satisfying the City’s obligation for guaranteed annual audits.
Completed November
2021
6. Annual performance review of
Team San José and the
Convention and Visitors Bureau
Annual review to determine whether Team San José met their performance metrics as of June 30, 2021. Completed November 2021
7. Biennial peer review for
FY 2019-20 and 2020-21
(contracted audit service)
The City Charter requires a performance audit of the Office of the City Auditor be conducted at least once every two years.
To fulfill this requirement, the Office participates in the Association of Local Government Auditors’ peer review
program. The last audit was conducted in 2019.
Completed November
2021
8. Compliance review of San José
Clean Energy’s risk management
practices
(contracted audit service)
MGO will conduct tests of SJCE investment and risk
management practices to ensure compliance with the City’s Energy Risk Management Policy and Energy Risk Management Regulations as of FY ended June 30, 2020.
Completed November
2021
9. Compliance review of San José
Clean Energy’s risk management
practices
(contracted audit service)
MGO will conduct tests of SJCE investment and risk
management practices to ensure compliance with the City’s Energy Risk Management Policy and Energy Risk Management Regulations as of FY Ended June 30, 2021.
Completed November
2021
10. Annual services report 14th annual report providing data about the cost, quality, quantity, and timeliness of City services. The report
incorporates existing performance measurement data, showing ten-year historical trends, a variety of comparisons to other cities, and the results of a resident survey.
Completed December
2021
Assignments in Process
11. Citywide Information
Technology Audit
(contracted service)
Conduct assessments of the City’s priority information systems, controls, risks, and susceptibilities, and recommendations for policy and organizational improvements.
In process January
2022
12. Annual external financial audit
and single audit
(contracted audit service)
The City Charter requires an annual audit of the City’s financial transactions. MGO will conduct the annual audits of the Annual Comprehensive Financial Reports of the City and the Airport.
MGO will also conduct audits of the financial statements of the Successor Agency to the Redevelopment Agency, Convention Center, the Clean Water Financing Authority, Deferred
Compensation, Tier 3 Defined Contribution Plan, Voluntary Employee Beneficiary Association (VEBA), MTC compliance, Multiple
projects
completed;
Single Audit
remains in
process
February
2022
RULES AND OPEN GOVERNMENT COMMITTEE
Monthly Report of Activities for December 2021
Objective Status
Projected
Issuance
Date
South Bay Water Recycling, SJCE, and the Single Audit (including Airport passenger facility charges and customer facility charges).
13. Environmental Review for New
Development
Assess the time required to complete the City’s CEQA review process. In process TBD
14. Citywide Grant Monitoring Review and assess Citywide management of federal awards across departments. In process TBD
15. Fleet (take-home vehicles) Assessment of current practices for take-home vehicles. In process TBD
16. Bill of Rights for Children and
Youth
Review the adherence to and implementation of the Bill of Rights for Children and Youth. (request by Councilmember and approved for inclusion by the Rules Committee May 12, 2021) In process TBD
Assignments Not Yet Started
17. Semi-annual audit
recommendation status report
The City Auditor’s Office will maintain an online dashboard of audit recommendations, and issue a report on the
implementation status of all open audit recommendations as of December 31, 2021.
March
2022
18. Semi-annual compliance reviews
of the City’s investment
program
(contracted audit service)
The City’s investment policy requires semi-annual compliance audits of the City’s investment portfolio. MGO will conduct the agreed-upon procedures as of June 30th and December 31st.
March
2022
19. COVID-19 Recovery
Expenditures
Audit scope to be determined based on a review of risks and controls around COVID-19 related expenditures of
Coronavirus Relief Fund, American Rescue Plan, or other funding sources.
TBD
20. Wage Theft Prevention Policy Review the administration of the City's wage theft and related labor policies identified in the City Council's Wage Theft Prevention Policy by the Public Works Office of Equality Assurance. This is a follow up to our 2017 Audit of the Office of Equality Assurance. (request by Councilmember)
TBD
21. Our City Forest Audit the expenditure of City funding and service delivery under the terms of grant agreements with the City. This is a follow up to our 2017 Audit of Our City Forest. (request by the Mayor) TBD
22. Development permitting Assess the timeliness of the building permit process for singlefamily residential additions or alterations, including accessory structures. (request by Councilmember and added by the Rules Committee on August 4, 2021)
TBD
23. San José Conservation Corps Review the service delivery and expenditures of funds under City contracts. (request by Councilmember and added by the Rules Committee on August 4, 2021)
TBD
24. Equity Pledge Assess progress of the City’s adherence to the principles outlined in the City Council’s Equity Pledge. (request by Councilmember and added by the Rules Committee on August 4, 2021)
TBD
25. Firearm Regulatory Processes
and Policies
Audit the City’s firearm regulatory processes and policies, including a review of trends in firearm violence in the city. (request by Councilmember and added by the Rules Committee on September 22, 2021)
TBD
Note: The approved work plan includes 23 projects. The two semi-annual recommendation status reports are listed as one project but separated here to show progress. The semi-annual compliance reviews of the investment program are similarly shown as one project on the work plan but separate here.
The City Auditor’s Fiscal Year 2021-22 Work Plan is online at:
https://www.sanjoseca.gov/home/showpublisheddocument/76011