TO: Rules & Open Government Committee FROM: Joe Rois,
City Auditor
SUBJECT: Monthly Report of Activities for DATE: August 31, 2022 August 2022
RECOMMENDATION
Approve the Auditor’s Office Monthly Report of Activities for the month of August 2022.
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) 2022-23 Work Plan during the month of August 2022.
Activities During the Month of August:
1. Brought the Office’s proposed FY 2022-23 work plan to the Rules & Open Government Committee for approval. The work plan can be found at:
https://www.sanjoseca.gov/your-government/appointees/city-auditor/annual-workplans.
2. Issued Bill of Rights for Children and Youth. The report is online at:
https://www.sanjoseca.gov/home/showpublisheddocument/84480.
Information on the status of the City Auditor’s FY 2022-23 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: 09/07/2022
ITEM: B.2
RULES AND OPEN GOVERNMENT COMMITTEE
Monthly Report of Activities for August 2022
Status of the City Auditor’s FY 2022-23 Audit Work Plan As of August 2022
Objective Status
Projected
Issuance
Date
Assignments Completed
1. 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) Completed August 2022
Assignments in Process
2. Semi-annual audit
recommendation status reports
Report on the implementation status of all open audit
recommendations as of June 30, 2022. In process September2022
3. COVID-19 Recovery
Expenditures
Audit of COVID-19 related expenditures of Coronavirus Relief Fund, American Rescue Plan, or other funding sources. Per Council request, objective of this audit will be to document and review the dispersal of COVID-19 related funds for food distribution for transparency and fiscal accountability.
In process October
2022
4. Tree-related mitigation funds
and cost-effectiveness of tree
planting efforts
An audit of a) how and whether the City is collecting treerelated mitigation fees from developers, b) how and whether the City is enforcing tree-planting conditions on development, c) how the City is spending tree mitigation funds, and d) how the City can most cost-effectively plant more trees. (request by the Mayor and Councilmembers)
In process December
2022
5. 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)
In process December
2022
6. San José Conservation Corps Review the service delivery and expenditures of funds under City contracts. (request by Councilmember) In process TBD Assignments Not Yet Started
7. Annual external financial audit
and single audit
(contracted audit service)
The City Charter requires an annual audit of the City’s financial transactions. The City’s outside financial statement auditor, Macias, Gini & O’Connell (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, Deferred Compensation, Tier 3 Defined Contribution Plan, Voluntary Employee Beneficiary Association, MTC compliance, South Bay Water Recycling, San José Clean Energy (SJCE), and the Single Audit (including Airport passenger facility charges and customer facility charges).
September
2022 -
February
2023
8. 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.
October
2022
9. 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 30, 2022, and December 31, 2022.
October
2022,
April 2023
10. 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, 2022. November
2022
RULES AND OPEN GOVERNMENT COMMITTEE
Monthly Report of Activities for August 2022
Objective Status
Projected
Issuance
Date
11. 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, 2022.
November
2022
12. Annual services report 15th 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. The office will also maintain an online dashboard of CSA dashboard measures.
December
2022
13. Semi-annual audit
recommendation status reports
Report on the implementation status of all open audit
recommendations as of December 31, 2022. The office will also maintain an online dashboard of audit recommendations.
March
2023
14. Performance measure reviews
(on-going)
Recurring projects to assess the validity and usefulness of performance metrics by City departments, programs, or City Service Areas. This work is intended to be ongoing to augment the Annual Services Report and assist the Administration to enhance the City’s performance management systems in
alignment with the “Outcome, Equity Indicators, and
Performance Management” City Roadmap initiative.
(Councilmembers have made requests about the City’s performance measurement and management in prior years)
15. 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)
16. Development permitting Assess the timeliness of the building permit process for singlefamily residential additions or alterations, including accessory structures. (request by Councilmember)
17. Integrated Waste Management
Inspection Programs
Evaluation of the Integrated Waste Management (IWM)
Enforcement Program’s service delivery. (IWM ranked high on the Citywide risk assessment; open audit request related to IWM)
18. Employee Travel Expenses Periodic audit of employee travel expenditures for appropriateness and compliance with City policies and
procedures. In FY 2020-21, travel expenses totaled roughly $400,000. (Routine audit last conducted in 2017)
19. Language Accessibility Assess City communications for compliance with the City’s Language Access Policy. Specific scope to be determined. (CMO’s Lead and Manage the Organization core service ranked high on the Citywide risk assessment)
20. Non-management employee
performance appraisals
“% of Non-Management Employee Performance Appraisals
Completed on Schedule” is a dashboard performance measure in the Adopted Operating Budget’s Strategic Support City Service Area. According to data provided to the City Auditor’s Office for the Annual Services Report, just 52 percent of nonmanagement employees had on-time performance appraisals in FY 2020-21. (Open audit request and the Lead and Manage the Organization core service ranked high on the Citywide risk assessment)
Note: The approved work plan includes 19 projects. The two semi-annual recommendation status reports are listed as one project but separated here to show progress.
The City Auditor’s Fiscal Year 2022-23 Work Plan is online at:
https://www.sanjoseca.gov/your-government/appointees/city-auditor/annual-work-plans