Memorandum — San Jose City Council, March 28, 2023

Office of the City Auditor
Report to the City Council
City of San José

STATUS OF OPEN AUDIT

RECOMMENDATIONS AS OF
DECEMBER 31, 2022
March 2023

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Status of Open Audit Recommendations as of December 31, 2022 2 Office of the City Auditor
Joe Rois , City Auditor

March 17, 2023

Honorable Mayor and City Council
City of San José
200 E. Santa Clara Street
San José, CA 95113

STATUS OF OPEN AUDIT RECOMMENDATIONS AS OF DECEMBER 31, 2022

RECOMMENDATION

We recommend the City Council accept the Status of Open Audit Recommendations as of December 31, 2022.

SUMMARY OF RESULTS

The City Auditor’s Office monitors and reports on the status of open audit recommendations every six months. Since the last update, City staff implemented or closed 35
recommendations from past performance audits covering a range of departments and programs.

Over the past 10 years, the Administration has implemented 78 percent of all recommendations made by the Auditor’s Office (target: 80 percent). 182 recommendations remain pending, 133 of which have been partly implemented. There are $23 million in potential monetary benefits in open audit recommendations (e.g., budget savings, additional revenue, efficiency gains, protecting City assets).

Attached is a summary table of all recommendations by
report over the past five years (Appendix A) and details on the status of the 217 audit recommendations from our review as of December 31, 2022 (Appendix B).
1 1 This report does not include 10 recommendations from the Audit of Tree Removals and Replacements and seven recommendations from the Audit of Firearm Regulations which were published in November and December 2022 and went to Council in January 2023. These recommendations will be included in subsequent status reports. 217 recommendations in this report
7 were issued in new reports
35 implemented/closed since last
update
182 partly or not implemented
$23 million in potential monetary
benefits
78% of audit recommendations made
over the last 10 years have been
implemented or closed
Status of Open Audit Recommendations as of December 31, 2022 3 Twelve Priority Recommendations
Per
direction of the City Council, the Administration, in coordination with the City Auditor’s Office, identified 12 open audit recommendations to prioritize, while continuing to make progress on implementing or closing out other open audit recommendations.2 The current audit recommendation priorities (categorized by intended benefit and listed with target dates) are:

Pote
ntial budgetary savings/revenue generation
• Enforc
ing compensatory time balance requirements in the Police Department (Audit of Police Overtime, 2016)
The P
olice Department has issued General Orders reminding staff of the requirement to bring their compensatory (comp) time balances back to the 240-hour maximum level in accordance with the memorandum of agreement (MOA) with the Police Officers Association (POA). The City and the POA also agreed to changes in the use of compensatory time balances, such that if an employee's time balance reaches 300 hours, the employee must use compensatory time for time off until the employee's balance is below 240 hours. The comp time liability reduced slightly since our last report – from $23.8 million to $23.1 million as of February 2023. The number of sworn employees with comp time balances over 240 hours also decreased slightly. Controlling the growth in compensatory time is important and we encourage the
Administration to continue monitoring so that the comp time liability does not begin to increase. Recommendation #1608-10 CLOSED • Obt
ain more favorable contract terms from golf course operators (Audit of Golf Courses, 2015)
Par
ks, Recreation and Neighborhood Services (PRNS) conducted an RFP and brought forward the results to the City Council on March 14, 2023. The Department reports that new lease agreements are expected to take effect on April 1, 2023, for all three City golf courses:

Los Lagos, Rancho Del Pueblo, and Muni. At the time of this report, the agreement had not been finalized. Recommendation #1508-01 target date: April 2023 (delayed from December 2018).
• Impro
ve overtime controls in the Police Department (Audit of Police Staffing, Expenditures, and Workload, 2021)
The P
olice Department issued an internal memo outlining overtime controls for the Department and new requirements that include Captains and Division Managers reporting on the use of overtime in their division on a quarterly basis. The Department states that it will continue to review how overtime is being used and its overtime policies 2 In June 2018, the City Council approved the 2018-19 Open Audit Recommendation Priorities (https://sanjose.legistar.com/LegislationDetail.aspx?ID=3512937&GUID=A59AA751-4DB2-4759-BE3A- 03E8B26DB47F&Options=&Search). To date, nine of the original 12 priority recommendations have been implemented, and new priority recommendations have been added.

Status of Open Audit Recommendations as of December 31, 2022 4 in consideration of the current staffing issues, and develop a plan that considers policy changes, clarification of discretionary and mandatory overtime, consistent messaging, training, and management review. The Department also reports that it will be developing timecard training for line staff and supervisors on how to log discretionary, mandatory, or voluntary overtime type codes in their timecards. Recommendation #2101-06 target date: June 2023 (delayed from June 2022).

Opera
tional efficiency
• Develo
p Citywide policies and procedures for contract monitoring and management (Audit of Consulting Agreements, 2013)
The C
ity Manager’s Office (CMO), in coordination with the City Attorney’s Office, has developed draft Contract Administration and Management Guidelines to ensure contracts Citywide are properly administered and managed. The guidelines cover the different phases of contract administration, including contract formation and ongoing contract monitoring. Recommendation #1306-09 target date: June 2023 (delayed from June 2018).
• Develo
p volunteer program guidelines (Audit of the City’s Use and Coordination of Volunteers, 2016)
The Ad
ministration reports that it is assembling and reviewing resources and tools developed by City departments for incorporation into a draft Volunteer Guide, which it plans to publish as an internal resource webpage for City staff who administer volunteer programs.

Recommendation #1603-03 target date: December 2023 (delayed from June 2019).
• Upda
te tow service agreements (Audit of Towing Services, 2018) The Cit
y issued an RFP for a technology platform and contract
administration for tow services in February 2023. This had been planned for release previously, but was delayed because of the City’s emergency response to COVID-19. The Administration reports that multiple recommendations from this audit, including methods to address agreement violations, will be incorporated into the future agreement as appropriate. Recommendation #1810-03 target date: March 2024 (delayed from July 2020).

Status of Open Audit Recommendations as of December 31, 2022 5 Improved service delivery

• Update Police Activities League (PAL) agreement (Audit of the San José Police Activities League, 2018)

The City and PAL executed a new agreement that details PAL operations and performance measures. This includes PAL operating the facility and programs on a day-to-day basis, and PRNS providing primary field maintenance along with providing additional programming.

Recommendation #1802-01 IMPLEMENTED

• Improve monitoring of homeless service providers (Audit of City’s Homeless Assistance Programs, 2018)

The Housing Department has developed monitoring policies, procedures, and templates to conduct monitoring visits, and has engaged a consultant to aid in monitoring service providers. The Department also has been granted access to the County’s HMIS system and staff have begun reviewing grantee reports against HMIS data. Lastly, the Department is developing a schedule for ongoing monitoring of all agreements. Recommendation #1807-11 target date:

December 2023 (delayed from July 2020).

• Clarify massage program roles and responsibilities (Audit of Code Enforcement Management Controls, 2021)

Staff in Planning, Building and Code Enforcement (PBCE) report they are working on drafting a joint work plan to address the recommendations from this audit and related direction from Council. This includes the creation of a memorandum of understanding (MOU) or other means of documentation to outline massage program goals and departmental responsibilities between PBCE and the Police Department. Staff report that PBCE is in the process of drafting the MOU for Police Department review. Recommendation #2104-07 target date: December 2023 (delayed from August 2022).

Citywide security/risk mitigation

• Revise procurement card policy (Audit of City Procurement Cards, 2010)

At the time of our 2019 follow-up audit of procurement cards (p-cards), the City had been spending roughly $14 million annually through City- issued p-cards. The Finance Department has been working to revise the City Procurement Cards policy (Section 5.1.2 of the City Policy Manual), dividing the policy into two parts: a high-level administrative policy and a detailed p-card administrative guide. Both documents are currently under review. These revisions will address multiple open audit recommendations to ensure the ongoing appropriateness of p- card expenditures. Recommendation #1009-01 target date: September 2023 (delayed from June 2011).

Status of Open Audit Recommendations as of December 31, 2022 6 • Pro
cure software solution and sufficient supervisory staff to support wage compliance review (Audit of the Office of Equality Assurance, 2017) The
Office of Equality Assurance (OEA) has completed an RFP process to develop an online data system to support wage compliance review, and is in the final stages of awarding a contract. OEA has also executed minimum wage enforcement agreements with multiple local agencies.

The revenue collected was allocated to fund a Senior Analyst position.

Additionally, OEA received funding for three Contract Compliance Coordinators in the FY 2022-23 Adopted Operating Budget, two of which have been hired. Recommendation #1702-01 target date:

September 2023 (delayed from June 2018).
• Dev
elop Citywide administrative guidelines or procedures for managing federal grants (Audit of Citywide Grant Management, 2022) – New priority added Whil
e the Finance Department had identified seven limit-dated positions to work on grants-related work for FY 2022-23, including developing recommended administrative guidelines or procedures, the Department reports needing to divert resources to other work priorities, such as responding to an audit of Coronavirus Relief Funds (CRF) by the U.S.

Department of Treasury, responding to the Emergency Operation Center activation for the January 2023 storms, and completing final expenditure reports for CRF and Emergency Rental Assistance grants.

Recommendation #2203-01 target date: June 2023.

Mor
e detail about each of the priority recommendations is shown in our online dashboard and in Appendix B of this report.

Departments Implemented or Closed 35 Recommendations in the Last Six Months In add
ition to their work on the priority items listed above, departments continued to make progress toward implementing other open audit recommendations. Examples include:
• The Office of Economic Development and Cultural Affairs (OEDCA) has finalized procedures around reporting and tracking of disclosures of public subsidies to ensure compliance with the City’s Open Government Resolution and CA Government Code. (Audit of the City’s Open Government Provisions, 2017) • The Information Technology Department (ITD) has created a public, interactive dashboard showing the progress of Citywide technology projects, updated every two months. Separately, ITD had been presenting bimonthly status reports to the Smart Cities and Service Improvements Committee since August 2021.

Moving forward, ITD plans to report to the Public Safety, Finance and Strategic Support Committee every six months, starting in March 2023. (Audit of Technology Deployments, 2019)
Status of Open Audit Recommendations as of December 31, 2022 7 • In January 2023, PRNS brought forward to the City Council an updated strategic plan for the San José Youth Empowerment Alliance (formerly known as the Mayor's Gang Prevention Task Force) which outlines a broader approach to youth violence prevention than had been in place previously. (Audit of the Mayor’s Gang Prevention Task Force, 2019)
• The Police Department created a multilingual informational brochure that specifies the goals, processes, and potential penalties associated with massage permit inspections. It also describes the role of Code Enforcement and sets high-level expectations on inspections. The brochure is posted on the Police Department's website and linked to the online permit application form. (Audit of Code Enforcement Management Controls, 2021)
• Through the California Water and Wastewater Arrearages Program, the Environmental Services and Finance Departments provided bill credits to more than 950 customers totaling $541,000 to alleviate the financial burdens on Muni Water customers that arose during the pandemic. The City is also participating in the state’s Low-Income Household Water Assistance Program and has conducted outreach to account holders with overdue balances informing them of payment assistance options. (Audit of Municipal Water Billing and Customer Service, 2021)

Total of 182 Recommendations Are Still Pending

Of the 182 recommendations that are still pending, 133 (73 percent) are partly implemented and 49 (27 percent) are not implemented. PBCE has the largest number of open audit recommendations – many of which were from audits issued within the past two years.

When implemented, many recommendations will improve operational efficiency of City departments. Others will improve transparency and accountability, improve service delivery, help to secure City assets, or ensure equity in service delivery.

21 20 16 19 17 12
5 7 2 5 2 3 1 1 1 1
23 6
7 1 2
3 2 4 10
10 20
30 40
50 All Open Audit Recommendations
Not Implemented
Partly Implemented
Status of Open Audit Recommendations as of December 31, 2022 8 Note: The equity category was new as of the June 2022 report. Some recommendations have been recategorized from the other categories.
$23
Million in Potential Monetary Benefits from 16 Open Recommendations Imp
lementing recommendations can sometimes result in cost savings or additional revenue to the City. Examples include:
• Ren
egotiating the revenue sharing terms of the integration agreement with Santa Clara Valley Water District (estimated at $2.8 million at the time of an audit in 2016)
• Impro
ving management of overtime of sworn employees and reassessing how Community Service Officers are deployed in the Police Department (an estimated $1.9 million from multiple recommendations from a 2021 audit) • Rec
overing 100 percent of the cost of the Police Department’s secondary employment program ($747,000 at the time of the audit in 2012) • Creating a roster of massage businesses to help the City identify unpermitted businesses, and notifying businesses of the expiration of their licenses (estimated $500,000 in initial permit application fees, and $280,000 in ongoing annual permit fees)
Add
itional monetary benefits can be identified through reducing risk to the City. For example, we have recommendations to fully document justifications for sole-source procurements or service delivery from federal awards during the COVID-19 emergency. We estimated at least $13 million could potentially be at risk without further documentation of compliance with federal guidelines.

Thes
e and other recommendations that could result in potential savings are shown in more detail in Appendix B and in our online dashboard.
8 31
30 31
33 1
7 11
15 15
Equity
Securing City Assets
Transparency and Accountability
Improved Service Delivery
Operational Efficiency
Open Audit Recommendations by
Intended Outcome
Partly Implemented Not Implemented
Status of Open Audit Recommendations as of December 31, 2022 9 Departments Have Implemented 78 Percent of Recommendations Made in the Last 10 Years
Over
the last 10 years, the City Auditor’s Office has made 775 recommendations to improve or enhance City services. Of those recommendations, 78 percent have been implemented or closed.

Note: The number of recommendations can vary from year to year based on the type and scope of audits, as well as the timing of the release. This does not include 10 recommendations from the Audit of Tree Removals and Replacements and seven recommendations from the Audit of Firearm Regulations which were published in November and December 2022 and went to Council in January 2023.

Over
the past five years, departments have fully implemented 55 percent of the 298 audit recommendations made. (See Appendix A for a list of reports issued in the last five years and the status of their recommendations.)

CONCLUSION
Inf
ormation about all open recommendations is available online:
• The D
ashboard of the Status of Open Audit Recommendations contains information about the status of all pending recommendations as of December 31, 2022 – sortable by priority, department, year published, target date, and type/benefit. • The D
ashboard of All Recommendations 2010 to Present contains all recommendations (both open and closed) made since 2010 – sortable by report, department, year published, and status. A search feature allows users to search by keyword.

Both das
hboards are online at:
www.sanjoseca.gov/your-government/appointees/city-auditor/audit-recommendations 0 20
40 60
80 100
120
140
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Recommendations Made Over the Last 10 Years
Not Implemented
Partly Implemented
Implemented / Closed
Status of Open Audit Recommendations as of December 31, 2022 10 The City Auditor’s Office would like to thank the City Manager’s Office and all the departments for their efforts to implement audit recommendations and for their assistance in compiling this report.

Respe
ctfully submitted,
Joe R
ois
City Auditor
Audit
staff: Brittney Harvey, Hiwad Haider, Dilnoza Khudoyberganova, Michelle Ann Mallari, Gitanjali Mandrekar, Stephanie Noble, Ebelechukwu Obi, Michael O’Connell, Alison Pauly, Adrian Perez, and Ricky Tran
Appendi
x A: Summary Listing of Recommendations by Report (January 1, 2018 – December 31, 2022) Appendix B: Deta iled Listing of the Status of Open Recommendations as of December 31, 2022 Status of Open Audit Recommendations as of December 31, 2022 11 This page was intentionally left blank
Status of Open Audit Recommendations as of December 31, 2022 12 Appendix A:

SUMMARY LISTING RECOMMENDATIONS BY REPORT
(January 1, 2018 –December 31, 2022)

Status of Open Audit Recommendations as of December 31, 2022 13 key:  implemented  partly implemented  not implemented Report Audit Title Dept(s) We made recommendations to: Current Recommendation Status #18-01
Pensionable Earnings: Tighter Controls and More
Transparency Can Ensure Retirement
Contributions Continue to be Accurate
CMO Improve controls and transparency to ensure
retirement contributions continue to be accurate
 4
#18-02 Audit of the San José Police Activities League PRNS Improve the City’s oversight and management of the San José Police Activities League
 23
#18-03 Department of Public Works: Enhancing
Management of Capital Projects PW Enhance management of capital projects  10
#18-04
Audit of Vehicle Abatement: The City Could
Improve Customer Service for Vehicle
Abatement Requests
DOT Improve customer service for vehicle abatement
requests
 12
#18-06
Community Center Reuse (now the
Neighborhood Center Partner Program):

Efficient Monitoring and Better Data Can Help
Determine the Next Phase of Reuse
PRNS
Improve program monitoring and use of facility- and
provider-level data to better assess services delivered to residents
 19
#18-07
Audit of the City’s Homeless Assistance
Programs: More Coordination and Better
Monitoring Can Help Improve the Effectiveness
HSG Improve the City’s oversight and management of its
homeless assistance program
 14
#18-08 Team San Jose Performance FY 2017-18 OEDCA Establish and formalize the target for theater  1 #18-10
Audit of Towing Services: Changes to Contract
Terms and Consolidated Oversight Could
Improve Operations
DOT
Address towing contract violations, standardize towing
and storage fees, update contract terms, and improve
oversight
 17
#19-01
Audit of 9-1-1 and 3-1-1: Changes to Call
Handling and Increased Hiring Efforts Could
Improve Call Answering Times
PD Improve emergency call answering times
 19
#19-02 Employee Benefit Fund Administration:

Opportunities Exist to Improve Controls HR Improve administration of employee benefit funds  8
#19-03 Development Noticing: Ensuring Outreach
Policies Meet Community Expectations PBCE
Update outreach policies to reflect current conditions, and improve mechanisms for reaching neighborhood
associations and limited-English speaking populations
 8
Status of Open Audit Recommendations as of December 31, 2022 14 key:  implemented  partly implemented  not implemented Report Audit Title Dept(s) We made recommendations to: Current Recommendation Status #19-04
The Mayor’s Gang Prevention Task Force: Better
Coordination and Use of Data Can Further the
Task Force’s Strategic Goals
PRNS Support and enhance the Task Force's continuum of
care strategy
 17
#19-05 Employee Reimbursements: Strengthening and
Streamlining the Reimbursement Process FIN Streamline and better monitor the employee reimbursement process
 4
#19-06
Form 700s: Despite High Overall Filing Rates, the
City Can Improve Timeliness and Completeness
of Filings
CLERK
Streamline processes and standardize procedures to
improve the timeliness and completeness of Form 700
filings
 9
#19-07
Procurement Cards: Clarification on Policies and
Additional Oversight Can Improve the P-Card
Program
FIN Improve program controls and oversight, as well as
monitoring of agreements
 9
#19-08
Street and Utility In-Lieu Fees: Transparency and
Coordination Can Improve the Administration of
Fee Programs
PW Improve the calculation, collection, and use of in-lieu fees for street and utility-related public improvements  8
#19-10
Technology Deployments: Processes Can Be
Improved to Ensure Long-term Success of the
City’s Technology Vision
IT
Strengthen the City’s technology deployments process
by improving planning, tracking, and reporting of major technology projects throughout the City
 10
#20-02 Fleet Maintenance and Operations: Public Works
Can Continue to Improve Fleet Operations PW
Continue to enhance fleet operations by utilizing data
to identify fleet replacements and monitor operations,
and streamlining the fleet acquisition process
 13
#20-03
Audit of Fire Development Services: Staff
Resources and Process Efficiencies Will Help to
Reduce Backlog
FIRE
Improve customer service and the efficiency of the Fire development services program by reducing the backlog
of work, improving processes, and addressing resource
needs
 14
#20-04
Park Maintenance: Improved Data Collection and
Analysis Would Enhance Park Maintenance
Operations
PRNS
Continue to better monitor and improve park
maintenance operations by reassessing the Park
Condition Assessment process and data collection
protocols, and using targeted data to inform resource
decisions
 13
Status of Open Audit Recommendations as of December 31, 2022 15 key:  implemented  partly implemented  not implemented Report Audit Title Dept(s) We made recommendations to: Current Recommendation Status #20-05
Development Partners’ Work-in-Progress
Reserves: Better Monitoring Can Ensure
Reserves Align with Resource Needs
MULTIPLE Improve the workload and resource planning through better tracking of development work in progress
 5
#21-01
Police Staffing, Expenditures, and Workload:

Staffing Reductions Have Impacted Response
Times and Led to High Overtime Costs
PD
Review and compare Police staffing, spending, and calls for service over time, and provide recommendations
about managing overtime and staffing to meet Council
and community priorities
 10
#21-02
Advocate Referrals: Further Improvements to
Processes and Data Sharing Can Help Connect
More Survivors to Services
PD
Connect more survivors to services by making further
improvements to advocate referral processes and data
sharing
 6
#21-03
Real Estate Services: Better Tools and
Coordination Can Improve Asset Management
and Service Delivery
OEDCA Improve oversight and coordination for managing the City's real estate assets
 6
#21-04
Code Enforcement Management Controls:

Improvements to Oversight and Coordination
Needed
PBCE Improve oversight and management controls
 20
#21-05
Municipal Water Billing and Customer Service:

The City Can Take Steps to Enhance Customer
Service During an Unprecedented Time
ESD
Enhance Municipal Water customer service and
support customers during a drought and the COVID-
19 pandemic
 13
#21-06 Team San Jose Performance FY 2020-21 OEDCA Address an error in the incentive fee paid to Team San Jose
 1
#22-02
Environmental Review for New Developments:

Better Project Management and Reviewing
Resources Can Improve the CEQA Process
PBCE Improve the CEQA process through better project
management and reviewing resources
 12
#22-03
Citywide Grant Management: Improved
Coordination Can Increase Federal Grant
Opportunities and Standardize Grant
Administration
FIN
Improve Citywide grant management by developing
guidelines and training around the different phases of
grant management
 3
#22-04 Take-Home Vehicles: Improved Controls Can
Better Ensure Compliance With City Policies PW Improve the efficiency of the take-home vehicle process and compliance with City policy
 5
Status of Open Audit Recommendations as of December 31, 2022 16 key:  implemented  partly implemented  not implemented Report Audit Title Dept(s) We made recommendations to: Current Recommendation Status #22-05
Bill of Rights for Children and Youth:

Incorporating the Bill of Rights into Planning Can
Enhance Services
CMO
Enhance the City’s service delivery to children and
youth and promote continuous improvement of
programs for kids in San José
 2
#22-06
COVID-19 Food Distribution Expenditures: The
City Should Address Gaps in Emergency
Documentation and Procedures
FIN
Ensure the City collects documentation to support
federal procurement compliance and contract service
delivery; in addition, update policies to improve the
City’s emergency preparedness and contract
monitoring
 5
Status of Open Audit Recommendations as of December 31, 2022 17 This page was intentionally left blank
Status of Open Audit Recommendations as of December 31, 2022 18 Appendix B:

DETAILED LISTING OF THE STATUS OF PENDING
RECOMMENDATIONS AS OF DECEMBER 31, 2022
Status of Open Audit Recommendations as of December 31, 2022 19 Report and Recommendations Dept (s) Current Status Comments #10-09 City Procurement Cards
#01 Revise the p-card policy to require simple descriptive annotations on receipts or statements that describe the intended use of the purchases, as well as the intended location, and if applicable, the number of people intended to use the purchased items or services.

FIN Partly
Implemented
-
Priority
In 2012, the Finance Department began informing departments that they should annotate receipts or statements from p-card purchases with simple descriptive annotations of the intended use of the purchase, the intended location, and if applicable, the number of people intended to use the purchased items or services.

Finance recommends annotations in quarterly p-card trainings, as well. Additionally, the Finance Department is working on revising the City Procurement Cards policy (Section 5.1.2 of the City Policy Manual), dividing the policy into two parts: a high-level administrative policy and a detailed p-card administrative guide. Both documents are under senior staff review. Target Date: Sep-2023 (Delayed From: Jun-2011) #12-04 Police Department Secondary Employment
#05 To promote transparency and accountability, the Police Department should know and post annually, on the City’s web site, total compensation earned by Police Department employees working secondary employment in SJPD uniform. The Department should know and post information for each employee by name, each employer where that employee worked, and the amount earned from each employer during the year as reported by the employee to the Police Department.

PD Implemented The Department now has a link to total employer payments made to secondary employees on its secondary employment website. Through eResource, the Department has access to employee earnings and hours.
#12-04 Police Department Secondary Employment
#22 The Police Department should: (a) calculate the cost of bringing all coordination into SEU and the related impact on employers’ fees, and (b) assess the impact on the hourly rate charged to employers, as well employer fees, if coordination were brought into SEU and employees were paid at an overtime rate.

Given that information, the Department should seriously consider three options moving forward: (1) phasing into SEU the
coordination of additional pay jobs, (2) bringing all coordination into SEU, (3) bringing all coordination into SEU and also paying employees on overtime through the City.

PD Partly Implemented The Department is in the process of conducting an analysis of the costs associated with the Secondary Employment Unit and reviewing the feasibility of bringing all coordination into the Unit. Target Date: Dec-2024 (Delayed From: Dec-2019) #12-04 Police Department Secondary Employment
#28 The Police Department should:
(a) calculate the comprehensive cost of the secondary
employment program (personnel, administrative costs, etc.), (b) compare those costs to the revenue generated by related fees, and
(c) determine the fees that would be required to make the program 100% cost recovered and present this data to the City Council.

PD Partly Implemented The Department is in the process of conducting an analysis of the total costs of the secondary employment program to determine the overall fee for full cost-recovery.

Target Date: Dec-2024 (Delayed From: Dec-2019)
Potential Monetary Benefit: The personnel costs of operating SEU were estimated at $747,000 in the audit. Recovery of these costs through fees would reduce the subsidy by the General Fund.

Status of Open Audit Recommendations as of December 31, 2022 20 Report and Recommendations Dept (s) Current Status Comments #12-04 Police Department Secondary Employment
#29 The Police Department should fully recover the cost of secondary employment liability policy either through increased employee contributions or by a fee charged to secondary employers.

PD Partly Implemented The Department is in the process of reviewing whether the cost of secondary employment liability policy can be included in the fees charged to employers. Target Date: Dec-2024 (Delayed From: Dec-2019)
Potential Monetary Benefit: In 2022, the General Fund subsidy of the secondary employment liability policy was $37,200.
#12-04 Police Department Secondary Employment
#30 Assuming that the City continues to offer uniformed off-duty employment to private employers, the City should assess the public and private benefits of the current provision of uniformed security services to a broad range of private and public entities. The Department should analyze the costs and benefits of continuing to provide this service on such a broad scale as well as the potential effects of limiting the program to certain types of jobs. The Department should propose a plan for the future of the program to the City Council that includes the results of this analysis.

PD Partly Implemented The Department is in the process of conducting an analysis of the overall future of the secondary employment program. Target Date: Dec-2024 (Delayed From: Dec-2019) #12-06 Environmental Services
#13 The Administration should propose the City Council establish a City Council Policy which includes guiding principles so as not to raise rates in years in which ratepayer fund balances exceed reasonable targets.

ESD Partly Implemented At the time of our audit, the City had accumulated large ending fund balances in its utility funds – totaling more than $278 million at the end of FY 2010-11. The sources of the large balances were lower than expected capital spending, staff vacancies, and other budget savings. We recommended the Administration propose a policy to hold rates steady when fund balances exceed reasonable targets. In coordination with the City Managers’ Budget Office and the City Attorney's Office, the Environmental Services Department (ESD) has begun developing a new City Administrative Policy Manual section, the goal of which will be to identify the guiding principles for developing utility rates to ensure rate increases are fair and appropriate, while also balancing key priorities such as safe and reliable services, cost efficiency, and supporting environmental outcomes. Target Date: Jun-2023 (Delayed From: Sep- 2017)
#12-06 Environmental Services
#22 The Administration should propose the City Council adopt a City Council Policy which includes guiding principles for evaluating ratepayer costs and rate increases for fairness and
appropriateness, and balancing priorities, such as safe and reliable services, cost efficiency, ratepayer impacts, and environmental outcomes.

ESD Partly Implemented In coordination with the City Managers’ Budget Office and the City Attorney's Office, the Environmental Services Department (ESD) is developing a new City Administrative Policy Manual section outlining the overall guidelines for evaluating ratepayer costs and important considerations involved in establishing utility rates. The goal of the new City Policy Manual section will be to identify the guiding principles for developing utility rates to ensure rate increases are fair and appropriate, while also balancing key priorities such as safe and reliable services, cost efficiency, and supporting environmental outcomes. Target Date: Jun-2023 (Delayed From: Dec-2016) Status of Open Audit Recommendations as of December 31, 2022 21 Report and Recommendations Dept (s) Current Status Comments #12-07 Fire Department Injuries
#03 We recommend that the Administration review and update Fire Department job descriptions with more specific descriptions of the physical requirements of what employees actually do on a day- to-day basis, and make the job descriptions and physical requirements easily accessible to physicians.

HR / FIRE Partly Implemented The Fire Department has requested one-time funding of $30,000 for a consultant to review the physical requirements needed to perform the essential functions of the Fire Captain, Fire Engineer and Fire Fighter classifications. The intent of this review is to facilitate updates in those physical requirements and respective job requirements.

Target Date: Dec-2023 (Delayed From: Jun-2018)
#13-06 Consulting Agreements
#07 To lessen the burden on City staff while fostering improved competition in consultant procurements, the Finance Department should include in its annual procurement training simplified procurement processes for smaller consulting contract
procurements while encouraging full and open competition, and define when these simplified processes can be used.

FIN / CMO Partly Implemented The Administration engaged a consultant, Guidehouse LLC, to assess the City's current procurement processes and make recommendations for improvements. The scope of the work included consultant procurements. Included among the recommendations was for Purchasing to "develop comprehensive training documents to educate departments on conducting compliant consulting services procurements." City staff is discussing including this in Citywide contract procurement trainings to be conducted by the City Managers Office. Target Date: Jun-2023 (Delayed From: Jun- 2018)
#13-06 Consulting Agreements
#08 We recommend that the City:

A) Reconcile overpayments as described above and get
reimbursed for these overpayments,
B) Document any changes in consulting contract terms or requirements through a formal contract amendment, and enforce existing contract terms. If the contract allows for changes in terms without amendments, such changes should be documented in writing, and
C) Require contract managers to reconcile previously received deliverables to contract payments during the contract amendment process, prior to increasing contract amounts.

CMO / FIN Partly Implemented The City Manager's Office (CMO) reports that staff has been coordinating with the City Attorney's Office to finalize a Citywide Contract Processing Manual for use by City staff that will address the various elements in the recommendation. With respect to part (a), in 2014, the Police Department executed a retroactive extension that approved prior year expenditures with at least one of the consultants we identified. Target Date: Jun- 2023 (Delayed From: Dec-2019)
Status of Open Audit Recommendations as of December 31, 2022 22 Report and Recommendations Dept (s) Current Status Comments #13-06 Consulting Agreements
#09 We recommend the Administration develop Citywide policies and procedures on contract monitoring and management including:
- a standardized contract management process,
- organization of contract files,
- checklists for tracking agreed-upon deliverables and line item budgets,
- components of invoice review which link payments to contract deliverables, and
- documenting deliverables prior to payment.

We further recommend that the City require contract administrators to annually certify they have reviewed and understand those policies and procedures.

CMO / FIN Partly
Implemented
-
Priority
The City Manager's Office (CMO) reports that staff has been coordinating with the City Attorney's Office to finalize a Citywide Contract Processing Manual for use by City staff that will address the various elements in the recommendation. Target Date: Jun-2023 (Delayed From: Jun-2018)
#13-06 Consulting Agreements
#11 We recommend the Administration ensure that:

A) Staff managing contracts conform with current City contract retention policies and, consistent with those policies, keep all documents related to contract procurement, compliance and monitoring, including all documents related to contract renewals, amendments, continuation agreements, and other contract modifications; and
B) Require staff to include a notation regarding the City’s retention policies in each individual contract file.

FIN Partly Implemented The Administration engaged a consultant, Guidehouse LLC, to assess the City's current procurement processes and make recommendations for improvements. The scope of the work included consultant procurements. Included among the recommendations was a recommendation for Purchasing to "develop comprehensive training documents to educate departments on conducting compliant consulting services procurements." Target Date: Jun-2023 (Delayed From: Jun-2018) Status of Open Audit Recommendations as of December 31, 2022 23 Report and Recommendations Dept (s) Current Status Comments #13-11 Code Enforcement
#08 The City Administration should propose to expand the Residential Occupancy Permit program to include condominiums functioning as rental apartment complexes.

PBCE Partly Implemented The goal of the Residential Occupancy Permit Program is to provide minimum safety and habitability standards for renters. At the time of the audit, about 41 percent of San Jose residents were renters in a total of about 125,000 renter-occupied units.

However, the Multiple Housing Program issued Residential Occupancy Permits for only about 84,000 units. This net difference of 41,000 units could mean that as much as a third of San José’s renters were not receiving the same level of service afforded to other rental residents. The current policy to exclude condominiums (potentially housing hundreds of renters) potentially leaves a significant portion of San José’s renters at risk. Code Enforcement is working with the Finance Department on procuring a new case management system. An RFP was released in February 2023 with proposals expected to be received by April 2023. Code Enforcement anticipates that the new system will provide the capability to incorporate condominiums into the Residential Occupancy Permit Program. Target Date: Dec-2024 (Delayed From: Jul-2018) #13-11 Code Enforcement
#12 To ensure tenants are aware of deficiencies found in their place of residence, Code Enforcement should formally inform tenants of the violations found and the deadline for compliance.

PBCE Not Implemented Code Enforcement resumed full Multiple Housing proactive inspections in April 2021; however, a proposed pilot to inform tenants of deficiencies found during the inspection process has not occurred. Target Date: Apr-2023 (Delayed From: Jul-2018) #13-11 Code Enforcement
#16 Code Enforcement review options to replace or enhance its code enforcement database (CES) and include options for mobile units and interfacing with other city databases.

PBCE Partly Implemented As described in the audit, Code Enforcement’s current database does not have the capability of interfacing with Planning, Building and Code Enforcement’s (PBCE) primary database to retrieve property related information while out in the field, research any residual permit information, or document information immediately after completing an inspection. Code Enforcement released an RFP for a new case management system in February 2023 with proposals expected in April 2023. Code Enforcement anticipates that the new system will provide the inspectors with the capability to access and manage their cases through dashboards, including the ability to receive real time notifications, view case histories, and generate pre-defined City templates based on case information. In the interim, the Department reports that all inspectors have been provided laptops in which they can VPN to the current PBCE system if needed in the field. Target Date: Dec-2024 (Delayed From: Jul-2018) Status of Open Audit Recommendations as of December 31, 2022 24 Report and Recommendations Dept (s) Current Status Comments #13-11 Code Enforcement
#17 In order to ensure that the Multiple Housing roster is complete, Code Enforcement should: A) Periodically update its Multiple Housing Roster with newly issued Certificates of Occupancy from the AMANDA database; and B) Automate the process when it replaces its database.

PBCE Partly Implemented Code Enforcement staff continues to manually update the Multiple Housing roster by checking the City's integrated permitting system, AMANDA, for newly issued Certificates of Occupancy. This manual process can be unreliable. Code Enforcement had previously been part of a multi-departmental permitting system upgrade which would have provided staff with the ability to automate the process to update the multiple housing roster. However, because of implementation challenges, Code Enforcement was removed from the project scope. The Department released an RFP for a new case management system in February 2023 with proposals expected in April 2023. The Department anticipates that the new system will provide Code Enforcement staff to review and automate the process for updating the Certificates of Occupancy.

However, the Department reports that it will continue to review other solutions in the interim. Target Date: Apr-2023 (Delayed From: Jul-2018) #13-12 Audit of Employee Travel Expenditures
#08 The Administration should require, through the City Procurement Card Policy, that procurement card approvers attach travel coordinator-approved Travel Statements as supporting documentation for travel-related procurement card expenditures.

FIN Partly Implemented Finance staff have incorporated this recommendation into the draft Procurement Cards Policy (City Administrative Policy 5.1.2) and updated the Procurement Card Administrative Guide. Both documents are under senior staff review. Target Date: Sep- 2023 (Delayed From: Jun-2017)
#13-12 Audit of Employee Travel Expenditures
#11 To minimize work effort and facilitate timely approvals, the Administration should implement an electronic travel authorization system, and until then should encourage departments to use electronic pre-trip and post-trip approval.

FIN Partly Implemented The Finance Department completed an RFP for an electronic travel software solution, but was unable to reach agreement with the selected vendor. The Finance Department is considering reissuing an RFP or developing a Business Process Automation flow for approvals and travel reimbursements. After completing the analysis and business requirements, it was determined to split the process into two workflows: one for preapproval and one for the reimbursement process. Target Date: Dec-2023 (Delayed From: Jun-2018)
Status of Open Audit Recommendations as of December 31, 2022 25 Report and Recommendations Dept (s) Current Status Comments #14-07 City Procurement Cards
#01 We recommend that the Finance Department revise the Procurement Card Policy to:

A) Emphasize the responsibility cardholders have to make prudent purchases;
B) Include questions that guide cardholders to evaluate the reasonableness of their purchases;
C) For purchases that require IT approval, require documentation of that approval be attached to p-card statements;
D) Change the approval process for Council appointees to require review by the Finance Department and referral to the Mayor’s Office or City Council in cases of potential policy violations; E) Clarify the department coordinator’s responsibility to notify Finance of all violations and that Finance should only refer personal purchases to OER; and
F) Establish a process to have frequent contact via email with department coordinators
FIN Partly Implemented In 2015, the Finance Department began drafting revisions to the City Procurement Cards policy (Section 5.1.2 of the City Policy Manual) to reflect these recommended changes, aimed at enforcing prudent and responsible expenditure of City funds. Since then, the Department decided to rework the p-card policy, dividing it into two parts: a high-level administrative policy, and a detailed p-card administrative guide. Both documents are under senior staff review. In the meantime, Finance has incorporated several of the recommended items into quarterly p-card trainings and created a Citywide p-card email account for contact with department administrators. It also made an interim update to the p-card policy, which makes the Chief Purchasing Officer the final authority on p-card authorizations, increased transaction limits, and all inappropriate p-card transactions. Target Date: Sep-2023 (Delayed From: Jun-2015) #14-07 City Procurement Cards
#03 To improve transparency, accountability, and legibility, the Finance Department should create a pilot program that:
a) Begins the transition to online approvals, payment code entries, annotations and general finance coding (office supplies, travel, etc.);
b) Considers requiring monthly statements of activity be signed by cardholders and approving officials to ensure that all transactions are authorized;
c) Allows individual departments to collect, store, and submit receipts in PDF; and
d) States that sufficient documentation of p-card purchases includes line item transaction detail stored in Access Online for a list of approved vendors (e.g. Office Max).

FIN Partly Implemented The Finance Department and Information Technology Department (ITD) have been working with the City's Financial Management System (FMS) vendor and report that the integration solution needed to implement this recommendation may be possible.

The integration would be between the City's p-card payment processor's online module (US Bank) and FMS. Previously, it was uncertain whether the two systems could be integrated, but the City's FMS vendor reported that one of its other clients also uses US Bank, suggesting that the two systems are compatible. The updated P-card policy and P-card administrative guide are pending Finance Leadership review. Publication will happen once review is complete. Target Date: Sep-2023 (Delayed From: Jun- 2015)
#14-07 City Procurement Cards
#07 The City Administration should ensure that p-card expenditures accurately categorize expenditures by type of budgetary purpose.

FIN Partly Implemented In 2015, the Finance Department included this recommendation in the revised City Procurement Cards policy, which is being reworked into a policy and companion guide.

Both documents are under senior staff review. Target Date: Sep-2023 (Delayed From:

Jun-2015)
Status of Open Audit Recommendations as of December 31, 2022 26 Report and Recommendations Dept (s) Current Status Comments #14-08 Development Services
#18 Eliminate the Construction & Demolition Diversion Deposit.

PBCE /
ESD
Partly Implemented At the time of the audit, not all applicants had been refunded their CDD deposit. In addition, there was a state statute that precluded permit holders from receiving their certificate of occupancy without demonstrating they had proven they have diverted construction and demolition waste. The Environmental Services Department (ESD) reports it is pursuing changes to enhance and consolidate the CDD and CALGreen compliance review programs to simplify refund processing, among other benefits. The Department continues to evaluate the CDD program as part of Climate Smart San Jose’s Zero Waste Element, which will outline programmatic changes. The Department has continued outreach efforts to permit holders eligible for CDD refunds. According to the Department, the balance of the CDD fund was roughly $6.1 million at the time of this update, which includes both completed and active projects. Target Date: Jun-2023 (Delayed From: Mar-2017)
#14-08 Development Services
#19 To increase accessibility of online fee estimation, PBCE should update and simplify the online fee calculator.

PBCE Not Implemented The Information Technology Department (ITD) reports development of the SJPermits.org portal is ongoing, with new features including self-started permits for Public Works, Planning, and Fire Prevention being added in late 2022. ITD reports development of the online fee calculator feature could commence after the completion of the existing scope with the portal vendor which is expected to be completed in 2023.

Target Date: Jun-2024 (Delayed From: Jun-2016)
#14-12 Accounts Receivable
#16 The Finance Department should work with the Information Technology Department to: Improve the interface between department billing systems and Revenue Results so that key information, such as the service date and other details about the service or citation, that will aid in the collection process is transferred. Work with Planning, Building, and Code Enforcement and the Fire Department to develop an interface or some other means of transferring data from the departmental billing systems into Finance’s collections software to better manage collections for these departmental billings.

FIN / ITD /
PBCE /
FIRE
Partly Implemented With the implementation of RevQ, Finance reports that additional invoice detail can be transferred through interfaces with department billing systems, however this does not include all Planning, Building and Code Enforcement or Fire billings. In prior periods, Finance had reported it developed a summary "book of business" in collaboration with the Information Technology Department to prioritize the remaining work, along with other business owner software systems in the City. Target Date: Jun-2023 (Delayed From: Jun-2018)
Status of Open Audit Recommendations as of December 31, 2022 27 Report and Recommendations Dept (s) Current Status Comments #15-05 PRNS Fee Activity Program
#01 PRNS should work with the Budget Office to:

A) Reassess the purpose of the Fee Activity Program (including cost-recovery targets),
B) Provide reasonable justification for mid-year expenditure request,
C) More clearly link revenues and expenses to their respective programs, and
D) Determine which activities should be included in the Fee Activity Program.

PRNS /
CMO
Partly Implemented PRNS and the Budget Office continue to refine a Fee Activity Program Description and Administrative Guidelines document to address this recommendation. The guidelines aim to: summarize the program’s purpose; identify the main fee programs/lines of business (e.g., camps, leisure classes, ROCK, etc.); identify which cost components are included in the fee program; state the cost-recovery targets (which may vary year- to-year based on City objectives and market conditions); and describe the process by which corresponding revenues and costs are tracked and reported so as to clearly justify proposed and mid-year adjustments to the fee program. PRNS staff report that they are continuing to refine next steps to align guidelines with changes to scholarship support and the approach to cost recovery. This work will reflect updated Council guidance classifying child and youth-serving programs from “Category I” to “Category II” in the City’s FY 2022-23 Fees and Charges Report and the categorization of these programs as “Merit Based” services, as defined in City Council Policy 1-21, Pricing and Revenue Policy. With these changes in place, PRNS and the Budget Office plan to evaluate the distribution of resources allocated to Fee Classes/Activities and Family Camp programs versus other revenue-generating community programs. In doing this, staff report their goal will be to establish an agreed upon baseline of cost for each program, with a view towards establishing a consistent methodology for determining cost-recovery targets by program each year. As such, staff plan to no longer set pricing based on 100 percent cost recovery, but with a balance between program pricing and equitable access for residents who cannot afford market-based prices.

Staff still need to complete work to understand costs contributing to each activity (including programs for children and youth) for baseline costs and then adjust the cost- recovery target. Staff plan to make a policy recommendation to City Council along with the Budget Office regarding price setting moving forward. Target Date: Jun-2023 (Delayed From: Jun-2016)
#15-08 Golf Courses
#01 To obtain more favorable contract terms, when the lease and management agreements expire, the Department of Parks, Recreation and Neighborhood Services should seek competitive proposals from potential golf course lessees/operators that lower the City’s financial risks and grow customer usage.

PRNS Partly
Implemented
-
Priority
PRNS conducted an RFP and brought forward the results to the City Council on March 14, 2023. The Department reports that new lease agreements are expected to take effect on April 1, 2023 for all three City golf courses: Los Lagos, Rancho Del Pueblo, and Muni. At the time of this report, the agreement had not been finalized. Target Date: Apr-2023 (Delayed From: Dec-2018)
Potential Monetary Benefit: At the time of the audit, the golf courses required ongoing General Fund subsidies, in part to debt service. At that time, we estimated the monetary benefit of implementing this recommendation would be $2.2 million annually.

Status of Open Audit Recommendations as of December 31, 2022 28 Report and Recommendations Dept (s) Current Status Comments #15-08 Golf Courses
#05 To improve oversight of the golf courses and contracts, the Department of Parks, Recreation and Neighborhood Services should:

A) Regularly audit Muni’s gross revenues and capital
improvement fund;
B) Keep all golf records centrally and ensure they are obtained timely;
C) Formalize the revised maintenance standard; and
D) Formally approve the fees charged and discounts given to The First Tee and the schedule of access hours.

PRNS Partly Implemented PRNS has been requesting financial audits of Muni's gross revenues since 2017, and has centralized golf records. Upon completion of the RFP process noted in the update for Recommendation #1, PRNS intends to include updated maintenance standards in new lease agreements. PRNS reports that the lessee of Rancho Del Pueblo will be expected to negotiate and establish fees, discounts, and access hours with The First Tee. Target Date: Apr-2023 (Delayed From: Jun-2017)
#15-09 Police Hiring
#06 After ensuring appropriateness of content and sufficiency of oversight of the Law Enforcement Unit (LEU) Cadet Program, SJPD should enhance and expand the program to encourage San José residents to become San José Police Officers.

PD Partly Implemented The Department created a Police Cadet classification which was approved by City Council in March 2017. These positions are not currently funded. The Administration reports that it will revisit this recommendation once staffing numbers within the Department increase. Target Date: Jul-2024 (Delayed From: Dec-2017) #16-02 Street Sweeping
#01 DOT’s in-house street sweeping operation should stop emptying street sweepings onto the street.

DOT Partly Implemented
The Public Works Fleet team developed specifications for a hook lift truck and bins and reports submitting an order in December 2022 with a likely delivery in Spring 2024.

Target Date: Jun-2024 (Delayed From: Jun-2017)
#16-03 The City’s Use and Coordination of Volunteers
#01 To improve the accessibility of volunteer opportunities to the City’s residents, the Administration should develop and post on the City’s intranet an outreach “how-to” guide for volunteer coordinators across the City with information on social media strategies and how to update the City’s website and events calendar. It should also reference the Citywide Language Access Policy (once it is finalized).

CMO Partly Implemented The City Administration has drafted a Volunteer Guide and draft Volunteer Policy.

These incorporate the Language Equity Policy and Guidelines, including sections related to recruitment and volunteer communication. The City directs website visitors interested in volunteering to an opportunities page with all major City options, located at: https://www.sanjoseca.gov/residents/volunteering. The Administration has assigned executive sponsorship to coordinate departments that utilize volunteers to complete work related to this audit recommendation. Target Date: Dec-2023 (Delayed From: Feb-2018)
Status of Open Audit Recommendations as of December 31, 2022 29 Report and Recommendations Dept (s) Current Status Comments #16-03 The City’s Use and Coordination of Volunteers
#02 To ensure more consistent management of volunteer programs, the Administration should develop a Volunteer Policy to be included in the City Administrative Policy Manual that formally recognizes the value volunteers contribute and includes minimum standards for the management of volunteer programs. The policy should include guidance on the use of volunteer agreements; health and safety requirements, such as fingerprinting and TB testing; volunteer recognition; and other topics as necessary.

CMO Partly Implemented The City Administration developed a draft Volunteer Management policy and which the Administration plans to have reviewed by a multi-departmental team. This draft policy includes language on health screenings, fingerprint and backgrounding, volunteer recognition, among other areas identified in the audit. The Administration reports that it recognizes how City departments have incorporated lessons from COVID-19 Pandemic response and recovery into their volunteer programs. Target Date: Dec- 2023 (Delayed From: Feb-2018)
#16-03 The City’s Use and Coordination of Volunteers
#03 To assist City staff in managing volunteer programs, the Administration should create and post on the City’s intranet a volunteer guidebook or “toolkit” as a reference for staff during the development and management of volunteer programs.

CMO Partly
Implemented
-
Priority
The Administration has assembled and reviewed the resources and tools developed by City departments, and incorporated them into a draft Volunteer Guide. The Administration plans to review and update these for publication as an internal resource webpage for City staff who administer volunteer programs which they anticipate will include the current list of City staff leads for those programs. Target Date: Dec-2023 (Delayed From: Feb-2018)
#16-03 The City’s Use and Coordination of Volunteers
#04 The Administration should work with the departments of Parks, Recreation and Neighborhood Services, Environmental Services, and Transportation to coordinate efforts around place- based volunteer programs. In particular, the Administration should streamline the process and expand the options that allow volunteers to play an active role in cleaning and maintaining public spaces by:

A) Developing a separate volunteer webpage for the City’s place-based volunteer programs that includes (i) descriptions of the programs (ii) relevant contact information and (iii) specific directions on how to request materials and supplies. The website should also provide information to help groups interested in one- time clean up or similar events.

B) Allowing volunteers to apply with multiple place-based programs at once.

C) Identify resources to reactivate the Adopt a Street program and/or expand the types of spots that volunteers can adopt to clean or maintain, including storm drains and creek segments for which the City holds an easement.

CMO /
PRNS /

ESD / DOT
Not Implemented Elements of place-based volunteering were incorporated into options and the public resource page— https://www.sanjoseca.gov/residents/volunteering. The Administration has additional work to complete on an application process that eases volunteering by locations and engaging in public clean-up initiatives. The Administration’s designated lead will coordinate this work with PRNS, including potential ties to the Volunteer Policy and development of guidance and a toolkit for volunteer coordinators in the City.

Direction and possible development of a solution will be subject to funding and will be submitted as part of the FY 2023-24 Budget Process. Target Date: Dec-2023 (Delayed From: Dec-2018)
Status of Open Audit Recommendations as of December 31, 2022 30 Report and Recommendations Dept (s) Current Status Comments #16-03 The City’s Use and Coordination of Volunteers
#06 The Parks, Recreation and Neighborhood Services Department should provide broad oversight and management of its community center volunteer programs, including developing a volunteer recruitment strategy and standard policies and procedures that contain specific guidance on volunteer intake, ongoing assessments such as the tracking of hours, and the retention of key documents.

PRNS Implemented PRNS developed written guidelines for staff who work with volunteers across the Department including community centers, as well as a handbook for community center volunteers. The draft guidelines and handbook were reviewed by community center supervisors and their feedback was incorporated. Staff also drafted a standard operating procedure to accompany these documents and implement these efforts consistently.
#16-05 South Bay Water Recycling
#04 To sustain South Bay’s operational and capital cost recovery status in the future, ESD should:

A) Renegotiate the revenue sharing terms of the Integration Agreement to allow the City to access South Bay revenue to fund South Bay’s projected capital costs sooner than is projected to occur under the Agreement as currently written; and
B) Secure a recycled water wholesale cost of service study that can be used to maximize the ability to maintain cost recovery for South Bay.

ESD Partly Implemented A) South Bay Water Recycling (SBWR) staff have been in discussions with the Santa Clara Valley Water District (Valley Water) regarding the terms of the Integration Agreement, implementation of the Strategic Master Plan, and other agreements between the City and the District. Additional Council direction was given in September 2021 to negotiate with Valley Water until December 2021, with facilitator lead discussions occurring through Fall 2021. These discussions are continuing but have moved beyond simply renegotiating terms of existing contracts and instead have evolved into discussions about an additional water purification facility. Expected completion for this larger scope is Spring 2024.

B) ESD participated in a statewide rate study sponsored by the WateReuse Research Foundation, which was completed in December 2018. SBWR reviewed the study findings to determine an optimum fee study structure that will address program needs.

SBWR reports that currently wholesale rates are sufficient to cover program needs.

Pending a new Comprehensive Agreement with Valley Water, final modifications to the Integration Agreement, and/or increasing maintenance costs for aging infrastructure, the wholesale rate structure will be periodically re-evaluated. Target Date: Jun-2024 (Delayed From: Jan-2017)
Potential Monetary Benefit: At the time of the audit, we estimated the City would be able to invest an additional $2.8 million annually for needed reliability projects if the City renegotiated the Integration Agreement with the Water District. #16-07 Office of the City Clerk
#02 To increase the transparency of legislative actions taken, the City Clerk’s Office should decrease the turnaround time to create and post action minutes. Specifically, the City Clerk should:

A) Establish and document a more aggressive timeframe for approval of minutes by Council,
B) Reconsider whether both Council meeting synopses and action minutes are still required, and C) Bring to the City Council recommendations to update the Open Government Resolution to reflect these changes.

CLERK Implemented The purpose of this recommendation was to ensure that minutes are approved by Council within a reasonable timeframe. At the time of the audit, the Office of the City Clerk’s internal goal to post action minutes was three months. Other jurisdictions' minutes were generally approved more quickly, often within two weeks. The City Clerk reports that the amount of text included in the action minutes has been reduced, and that the Council passed action minutes as the preferred format. The Office of the City Clerk has documented a procedure that includes a turnaround time expectation for the legislative team to complete the City Council minutes and Council Committee minutes within one month of the meeting. The minutes are then to be agendized for the first available meeting to receive Council approval.

Status of Open Audit Recommendations as of December 31, 2022 31 Report and Recommendations Dept (s) Current Status Comments #16-07 Office of the City Clerk
#03 To ensure records of City Council proceedings are posted timely, the City Clerk should utilize existing technology to streamline the approval and posting of synopses and/or minutes.

CLERK Not Implemented The Office of the City Clerk worked with the Information Technology Department and Purchasing on replacement agenda and minutes management software. The Office is planning to take the contract for the replacement agenda and minutes management software to Council in 2023, and reports that the vendor states it can take up to a year to fully implement. Target Date: Jun-2024 (Delayed From: Apr-2017) #16-07 Office of the City Clerk
#20 The City Clerk’s Office should:

A) Develop consistent methodologies to track and calculate the performance measures for its statutory responsibilities that are reported in the City’s Operating Budget,
B) Identify staff leads tasked with maintaining these
performance measures and reporting them on a frequent basis to the City Clerk, and
C) Develop action plans to address areas where results do not meet established targets or expected results.

CLERK Partly Implemented The Office of the City Clerk has documented methodologies for calculating performance measures and assigned team leads to maintain these performance measures. The Office reports that it has requested the continuation of an overstrength Staff Specialist in FY 2023‐24 who would be tasked to collect performance measure data on a monthly basis in one workbook or dashboard for all managers to access when reporting for Auditor, CMO, and budget publications. The Office also reports it has requested to change an Activity/Workload measure in the FY 2023‐24 proposed budget process to better reflect the staff work involved when responding to public records requests. Depending on Budget approval, the Office reports that staff training would commence as soon as possible and dashboard data collection would be implemented. Once action plans to address areas where results do not meet established targets or expected results are developed, which addresses part (c) of the recommendation, this recommendation will be considered implemented. Target Date:

Dec-2023 (Delayed From: Oct-2017)
#16-08 Police Overtime
#09 To reduce the liability associated with high comp time balances, the San José Police Department should:

A) Lower the allowable comp time balance from 480 hours, B) Explore a comp time buy-out program, and
C) Consider a mandatory comp time balance buy-out upon
promotion between sworn ranks.

PD / OER Closed In 2017 and again in 2021, the Department issued General Orders reminding staff that they are responsible for bringing comp time balances to 240 hours by the end of the calendar year in accordance with the memorandum of agreement (MOA) with the Police Officers Association (POA). In 2022, the City and the POA also agreed to changes in the use of compensatory time balances. These changes require that if an employee's compensatory time balance reached 300 hours, the employee has to first use compensatory time for time off until the employee's compensatory time balance is below 240 hours. The comp time liability reduced slightly since our last report -- from $23.8 million to $23.1 million currently. As of February 2023, the number of sworn employees with comp time balances over 240 hours had decreased slightly from 727 in August 2022 to 717 in February 2023. The number of sworn employees with a balance of 480 hours also decreased from 433 in August 2022 to 398 in February 2023. For these reasons, we recommend closing this recommendation; however, controlling the growth in compensatory time is important and we encourage the Department to continue monitoring this area.

Status of Open Audit Recommendations as of December 31, 2022 32 Report and Recommendations Dept (s) Current Status Comments #16-08 Police Overtime
#10 The Police Department should enforce the requirement for employees to lower their comp balance to 240 hours by the end of the year or submit plans to reduce balances.

PD Closed
-
Priority
In 2017 and again in 2021, the Department issued General Orders reminding staff that they are responsible for bringing comp time balances to 240 hours by the end of the calendar year in accordance with the memorandum of agreement (MOA) with the Police Officers Association (POA). In 2022, the City and the POA also agreed to changes in the use of compensatory time balances. The City and the POA also agreed to changes in the use of compensatory time balances. These changes require that if an employee's compensatory time balance reached 300 hours, the employee has to first use compensatory time for time off until the employee's compensatory time balance is below 240 hours. The comp time liability reduced slightly since our last report -- from $23.8 million to $23.1 million currently. As of February 2023, the number of sworn employees with comp time balances over 240 hours had decreased slightly from 727 in August 2022 to 717 in February 2023. The number of sworn employees with a balance of 480 hours also decreased from 433 in August 2022 to 398 in February 2023. For these reasons, we recommend closing this recommendation; however, controlling the growth in compensatory time is important and we encourage the Department to continue monitoring this area.
#16-10 The Apartment Rent Ordinance
#15 To ensure customers are provided necessary services, the Housing Department should develop a strategic plan for the Rental Rights and Referrals Program that outlines desired goals and outcomes, and establishes measures of program effectiveness.

HSG Partly Implemented The Housing Department (HSG) reports the Rent Stabilization Program (RSP) completed a Request for Proposal process selecting RSG, Inc to serve as the consultant for the development of the Strategic Plan and provided an update on the project to the Neighborhood Services and Education Committee in June 2022. The Department reports they held a kickoff meeting with the consultant to outline next steps in the process. RSG has studied the City rental market and relevant ordinances; they also met with RSP and Code Enforcement staff. The Department reports that stakeholder outreach began virtually and in-person in February 2023, including an initial report to the Housing and Community Development Commission. In the spring of 2023, the Department intends to begin drafting a memo and strategic plan for a future City Council discussion. Target Date: Sep-2023 (Delayed From: Jun-2018) #16-11 Mobile Devices
#01 To ensure appropriate controls over City-owned mobile devices (including cellphones, smartphones, hotspots, tablets, and laptops), the Administration should require departments to label City-owned mobile devices and maintain current inventories. The inventories should include the type of device, serial number, the name and ID of the employee to whom the device is assigned, the phone number (if applicable), the date of issuance, and the date returned (if applicable).

ITD Partly Implemented The Information Technology Department's (ITD) guidelines and recommendations for managing mobile devices and the City Administrative policy on Procurement of Laptops and Tablets (1.7.8) was presented to City departments. ITD has been working with departments to either label assets as City-owned property or install mobile device management software on all City devices. Meanwhile, inventory data uploads to the central asset database have been ongoing and staff report it continues to be enforced to departmental IT leadership on a quarterly basis. Out of all City departments, one is still pending. Target Date: Jun-2023 (Delayed From: May-2018) Status of Open Audit Recommendations as of December 31, 2022 33 Report and Recommendations Dept (s) Current Status Comments #17-02 Office of Equality Assurance
#01 To better administer the prevailing and living wage compliance programs, the Office of Equality Assurance should:

A) Procure a software solution to automate payroll review to free up staff time for other responsibilities (e.g., site visits, review of supplemental documentation);
B) Adopt a risk-based strategy for conducting site visits and reviewing supplemental documentation to efficiently verify the accuracy of information in submitted payrolls; and
C) Ensure the program has sufficient supervisory resources following the implementation of Recommendation #3.

OEA Partly
Implemented
-
Priority
A) In the FY 2022-23 Adopted Operating Budget, the Office of Equality Assurance (OEA) received funding for an online data system to better administer prevailing and living wage compliance programs. OEA issued a Request for Proposal (RFP) and staff reviewed products that included the following: 1) conducts automated monitoring of Prevailing and Living Wage requirements on Public Works projects; 2) stores and reports case information regarding OEA enforcement activity; and 3) collects worker demographics information for use in designing, implementing, evaluating, and enforcing present and future workforce participation policies and goals. OEA is in the final stages of awarding a contract and expects the software to be in use by September 2023.

B) Public Works has developed a tracking system using Excel to maintain a list of compliance infractions and violations. Public Works reports that this tracking system allows staff to be consistent with enforcement, including penalties assessed, while also allowing staff to see trends with construction and make determinations on the need for additional oversight and site visits. In addition, two OEA staff review potential high- and moderate-risk projects with all OEA Specialists to aid in determining site visits.

C) OEA developed and executed minimum wage enforcement agreements with multiple local agencies. The revenue collected was allocated to fund a Senior Analyst position, which was filled in September 2021. Additionally, during the FY 2022-23 Budget Review, OEA received funding for three management level Contract Compliance Coordinators to develop sufficient supervisory resources throughout the division. OEA reports that two staff were hired in November of 2022 and is scheduled to complete the recruitment of the last position in July 2023. Target Date: Sep-2023 (Delayed From: Jun-2018)
Potential Monetary Benefit: We estimate that a software solution would free time for two FTE to be redeployed to other OEA functions that are currently understaffed.

Redeploying these staff will potentially reduce the need to hire additional staff to administer OEA responsibilities.
#17-04 Open Government
#01 The Administration should create an Open Government policy to be included in the City’s Administrative Policy Manual.

The policy should state the purpose and goals of the Open Government Ordinance and Resolution and cross reference with the specific procedures outlined in the resolution and other City policies as necessary.

CMO Partly Implemented The City Manager's Office reports that the Open Government Manager (OGM) is finalizing updates to the draft administrative policy and will meet with the City Attorney’s Office to complete a final review. The final policy will account for any policy changes that may have occurred since 2018. Target Date: Jun-2023 (Delayed From:

Dec-2018)
Status of Open Audit Recommendations as of December 31, 2022 34 Report and Recommendations Dept (s) Current Status Comments #17-04 Open Government
#02 The Office of Economic Development, in coordination with the City Attorney’s Office, should develop a policy and procedures to clarify whether and how to disclose cost-benefit information for provisions of economic benefit to private entities when: the provision is a part of a larger incentive program to be issued to entities that meet specified criteria, multiple provisions may benefit a single entity within a short timeframe, the City provides services on behalf of/for a private entity, and the entity receiving the benefit is a non-profit or public agency.

OEDCA Partly Implemented The City Attorney’s Office, Office of Economic Development and Cultural Affairs (OEDCA), and relevant partners have met several times to discuss OEDCA’s recommended approach to the various provision scenarios listed in the recommendation. OEDCA has drafted a proposed policy memo and it was reviewed by the City Attorney's Office. OEDCA is working toward achieving final consensus from internal stakeholders on the proposed approach. When that is achieved, OEDCA reports they will post the policy memo as a user-friendly webpage on the OEDCA intranet page. In addition, a cross-department CSA meeting was held in January 2023 to increase awareness among City staff about subsidy requirements and how to find out more information. Target Date: Apr-2023 (Delayed From: Jun-2018) #17-04 Open Government
#04 The Administration should implement procedures to track public subsidy and tax abatement agreements to ensure
compliance with state and Open Government after-action reporting requirements and financial statement disclosures.

OEDCA /
FIN
Implemented
The Office of Economic Development and Cultural Affairs (OEDCA) has implemented a system to track subsidy agreements. The system includes the following standard operating procedures: 1. Broadened Awareness: The Council Memo Staff Report Template (released December 2022; revised January 2023) now includes a section on subsidy reporting requirements and a separate Subsidy Reference Sheet to educate employees about the existence of disclosure requirements. 2. Subject Matter Expertise: OEDCA will designate a staff member to oversee a database that assists in tracking the existence of City subsidies, as well as tracking compliance with disclosure rules and after-action reports. 3. Ensuring Proper Disclosures: Upon recognizing a subsidy will trigger a disclosure under either Open Government Resolution §2.3.2.6 C, or California Government Code §53083, staff in the impacted department shall complete the necessary disclosure and analysis steps as described in the Council Memo Template. Staff will also notify the Director of the OEDCA, or the Director’s designee, about the upcoming subsidy. OEDCA will add any qualifying subsidies to the internal tracking database. 4. Public Disclosure Action: OEDCA reports that qualifying subsidies under California Government Code §53083 will be posted to a public sub- webpage within the www.SJEconomy.com website within 30 days of City Council approval. 5. Proper Internal Tracking and Follow-Up: The OEDCA tracking database will provide a mechanism for determining the due date of after-action reports and/or 10- year public hearings under §53083. However, each department will be responsible for completing after-action reports or public hearings within the required timeframe. In addition, a cross-department CSA meeting was held in January 2023 to increase awareness among City staff about subsidy requirements and how to find out more information.

Status of Open Audit Recommendations as of December 31, 2022 35 Report and Recommendations Dept (s) Current Status Comments #17-04 Open Government
#08 The City Council should consider a change to the Revolving Door Ordinance that mitigates potential conflicts of interest and simplifies the rules surrounding former designated employees who work for non-profit organizations as lobbyists or on legislative or administrative matters which they worked on as part of their City employment. Potential policy directions include:

A) Narrowing the non-profit exemption to 501(c)(3)
organizations, regardless of whether the organization had received support from the City; or
B) Striking the non-profit exemption, such that the same rules apply whether former designated employees go to work for non- profit or for-profit organizations.

CAO /
CLERK
Partly Implemented The City Council referred this recommendation to the Board of Fair Campaign and Political Practices (formerly the Ethics Commission) for further consideration, prior to the item’s return to Council. The Board discussed the recommendation at its January 10, 2018 meeting, and decided to recommend that Council strike the non-profit exemption. This recommendation was referred to the February 12, 2020 Rules & Open Government Committee meeting. The Committee voted to incorporate the recommendation, along with other Title 12 recommendations from the Board, into the Mayor's Biennial Ethics Review. The item is expected to return to the full City Council with that review. In January 2023, the Mayor's Biennial Ethics Review was completed, but the recommendation was not addressed. Target Date: Dec-2023 (Delayed From:

Jun-2019)
#17-04 Open Government
#09 The Administration should update City policies and guidance on the retention and disposition of electronic records and City email to reflect the current technological environment and allow for more effective management of public records. This includes the storage of records to efficiently respond to public records requests and the disposition of records per approved retention schedules.

CMO Partly Implemented The purpose of this recommendation was to address the growth of electronic records, many of which are not public records, such as preliminary draft documents or old emails that may be routine, mass, or unsolicited. The Open Government Manager (OGM) plans to hold one‐on‐one meetings with department Administrative Officers and retention staff to gather department‐specific information on what records are considered electronic and which are created, stored, and retained. The CMO reports that the OGM is working with several departments to condense findings and will craft an updated policy by the end of July 2023. The OGM has crafted a survey to supplement the meetings with the departments. Lastly, the CMO reports that the OGM is working with the City Attorney's Office to finalize an approach for the retention and disposition of email and other electronic records. Target Date: Jul-2023 (Delayed From: Jun-2018)
#17-04 Open Government
#10 To better manage electronic records on the City’s enterprise file share and email systems, the Administration should consider a combination of strategies, including but not limited to:

A) Developing procedures for department records
administrators to conduct electronic file clean outs to dispose of unnecessary electronic files as well as those saved past the City’s approved retention schedules.

B) Periodic reminders to City staff to clean out their email folders, along with guidance on what is a public record that should be saved, and what is not.

CMO Partly Implemented The Administration issued an RFQ in 2021 to obtain software specific to the management of electronic records. This software, GovQA, was purchased, and the Administration implemented it in August 2022. The Administration provided staff training from GovQA, as well as access to training recordings and user guides that are stored on the City’s intranet site. The CMO reports that the Open Government Manager (OGM) will continue to meet with departments as the software is implemented to update existing procedures, and updates will be included in the Open Government Policy being developed as part of 17‐04‐(01). The Administration reports that this recommendation is also being implemented in conjunction with 17‐04 (09), and that the Open Government Manager (OGM) is continuing to work with departments to update their departmental retention schedule and discuss internal processes for the destruction and/or digitization of records. Target Date: Jul-2023 (Delayed From: Dec- 2018)
Status of Open Audit Recommendations as of December 31, 2022 36 Report and Recommendations Dept (s) Current Status Comments #17-06 Audit of Retirement Services
#15 The Retirement Boards should adopt a formal set of performance measures to be included in the retirement plans’ budgets for both plan administration and the investment program.

The Retirement Boards should provide the City Council with the opportunity to review and provide comment on the adopted performance measures.

RET Partly Implemented In 2021, the Joint Personnel Committee approved CEO performance metrics and CIO investment staff metrics. Staff report that these metrics were used during the FY 2021- 22 fiscal year for their CEO/CIO performance review. The Office of Retirement Services is working with the City Manager's Budget Office to update the performance measures included in the City's FY 2023-24 Adopted Operating Budget accordingly.

Additionally, the Office of Retirement Services has aligned current practices with existing Budget performance measures, including updates to customer satisfaction surveys given to members. Target Date: Jun-2023 (Delayed From: Dec-2018) #18-02 Audit of the San José Police Activities League
#01 The City should reconsider how and who should manage the PAL facilities and associated activities, and revise its 2007 agreement with the PAL organization accordingly.

PRNS / PD Implemented
-
Priority
PRNS and PAL are operating in a hybrid model where PAL operates the facility and programs on a day-to-day basis. PRNS has begun providing additional programs and provides primary field maintenance. The agreement between PAL and the City was completed and executed in December 2022.
#18-02 Audit of the San José Police Activities League
#02 The City should clarify its relationship with the PAL Board, including the role of the Council liaisons and the role of police staff on the PAL Board.

PRNS / PD Implemented The City Council, in January 2021, approved guiding principles and revised roles and responsibilities for PAL, PRNS, and SJPD. PRNS and PAL are operating in a hybrid model. The agreement between PAL and the City was completed and executed in December 2022.
#18-02 Audit of the San José Police Activities League
#03 The San José Police Department should inform and encourage officers regarding available volunteer opportunities at PAL.

PD Partly Implemented
SJPD reports they have participated at some key events, however they report that PAL has not requested specific PD involvement for opening/closing events at this point as they are still sorting through its reorganization. SJPD reports it continues to pass PAL opportunities to the community when sports sign ups occur and is looking for ways to try to activate PAL sports into youth’s lives. Target Date: Aug-2023 (Delayed From:

Fall-2019)
#18-02 Audit of the San José Police Activities League
#04 The San José Police Department should determine if some opportunities for police officers to work with youth in PAL programs can be paid.

PD Not Implemented According to the Department, under the current staffing and budgetary restrictions, SJPD has been focusing on providing police core services to the city. Target Date:

Aug-2023 (Delayed From: Jun-2020)
#18-02 Audit of the San José Police Activities League
#05 The City should ensure that the PAL organization complies with the City’s requirement to submit an annual audit and regularly follow-up.

PRNS Implemented PAL had completed its 2015-2019 annual financial audits. The agreement between PAL and the City was finalized in December 2022 and includes the financial audit requirement.

Status of Open Audit Recommendations as of December 31, 2022 37 Report and Recommendations Dept (s) Current Status Comments #18-02 Audit of the San José Police Activities League
#07 The City should require that the PAL organization prepare and submit an annual budget.

PRNS Implemented The PAL Board reviews monthly financial reports and informal program reports at monthly board meetings, which a representative from PRNS and SJPD attend.

Additionally, PRNS reports that the PAL Board is developing Key Performance Indicators and full program reports to share at these monthly board meetings. PRNS reports that it and the PAL Board Executives hold Quarterly and Annual joint planning and progress review meetings as identified in the new agreement. The agreement between PAL and the City was completed and executed in December 2022. #18-02 Audit of the San José Police Activities League
#10 The City should work with the PAL Board to track and comply with revenue sharing provisions in its 2007 Agreement.

PRNS Implemented
The new agreement, which was executed in December 2022, defines that based on the new hybrid model, PAL Board revenue be invested directly back into PAL programs and the facility. PAL presents monthly and annual financial reports at the Board meetings, tracking revenue and how it is reinvested into PAL programs and operations. #18-02 Audit of the San José Police Activities League
#11 The City should require compliance with its rules on naming and advertising rights, and require policies and procedures to require written agreements regarding signage.

PRNS Implemented The PAL Board is in the process of redefining its sponsorship program. The new agreement, which was executed in December 2022, outlines PRNS' plans to include compliance with City rules on naming and advertising rights and the development of a sponsorship program that complies with City policies in the anticipated new agreement with PAL.
#18-02 Audit of the San José Police Activities League
#12 The City should require a comprehensive strategy to maximize fundraising opportunities through naming and advertising rights.

PRNS Implemented PRNS has included details on a fundraising plan, including sponsorships and their goals in the new agreement with PAL. PAL has hired a new Executive Director and reports it is finalizing a strategic plan and fundraising plan as required by the new contract.
#18-02 Audit of the San José Police Activities League
#13 The City should either require PAL board members to sign the City’s volunteer code of ethics, or work with the City Attorney’s Office to eliminate that provision from the Agreement.

PRNS Implemented The City has eliminated the clause in the new agreement and revised it to ensure the PAL Board includes a code of ethics in their by-laws.
#18-02 Audit of the San José Police Activities League
#16 The City should formalize the fees that are charged for use of the facilities including the required documents to be completed.

Further, address whether free use of the PAL facilities is allowed and what waivers would be required when providing that free use.

PRNS Implemented
Following this audit, PAL established a standardized fee schedule. The new agreement with PAL includes a provision that PAL’s program fees or waivers are approved by the Board which PRNS has a seat on. PRNS reports that these fees will also be reviewed as part of quarterly and annual planning meetings.

Status of Open Audit Recommendations as of December 31, 2022 38 Report and Recommendations Dept (s) Current Status Comments #18-02 Audit of the San José Police Activities League
#17 PRNS and Public Works should review the facilities, develop a list of long-term and short-term priority improvements, and determine the funding mechanism to address those
improvements.

PRNS /
PW
Partly Implemented PRNS and Public Works are undertaking a master plan update for the PAL facility (Facilities Plan). Previously, PRNS and Public Works had developed a list of short- term capital improvement priorities. The FY 2021-22 Adopted Capital Budget included $4.5 million for installing an artificial field (which was put on a brief hold to reevaluate scope), other associated improvements, and funding to complete the master plan update (Facilities Plan) for the PAL site. Additionally, The Parks and Community Facilities Development 2023-2027 Capital Improvement Program included $3 million for PAL Stadium electrical improvements (which is now moving forward into the design phase). Several minor projects and improvements have been completed since this recommendation was made. Target Date: Apr-2023 (Delayed From: May-2020) #18-02 Audit of the San José Police Activities League
#18 The City should require a process to ensure consistent and cost-equivalent fees and expenditures among all districts.

PRNS Implemented PAL equalized soccer registration rates for all districts in 2018, and provided uniforms to each district. The Police Department reports that PAL worked to refund many participants the $27 cost of uniforms, and $25 to participants who had a parent volunteer. The new agreement with PAL includes a provision that PAL’s program fees or waivers are approved by the Board which PRNS has a seat on. PRNS reports that these fees will also be reviewed as part of quarterly and annual planning meetings. #18-02 Audit of the San José Police Activities League
#19 The City should enforce fingerprint background checks of all adults serving in a supervisory or disciplinary role over children to ensure that all coaches and relevant volunteers comply with the California Public Resource Code 5164 and relevant City policies.

PD / PRNS Implemented Since publishing the audit, the SJPD Police Chief reported that "the DOJ/SMS [Department of Justice] system has flagged one volunteer, who has since been suspended. Over the last six months, the PAL Custodian of Records has received several subsequent arrest notifications from DOJ; however, these coaches were determined to no longer volunteer/coach for PAL". A background/fingerprinting process is in place and facilitated through PRNS. PRNS reports that PAL tracks and confirms all required volunteers and staff have complied with this requirement on a regular basis.
#18-02 Audit of the San José Police Activities League
#20 The City should require maintenance of an updated roster of all players, coaches, and other relevant volunteers participating in each of PAL’s activities.

PRNS Implemented After the audit, PAL updated rosters of all players, coaches, and assistant coaches participating in each of PAL's activities for 2018 and 2019. This requirement and process is in the new agreement which was executed in December 2022. #18-02 Audit of the San José Police Activities League
#23 The City should require formal agreements with the various sports leagues that govern the relationship and responsibilities of each of the leagues.

PRNS Implemented PRNS has included this in the new agreement with PAL and reports that the PAL Board anticipates it will develop a system of receiving and reviewing these agreements by the end of 2023.

Status of Open Audit Recommendations as of December 31, 2022 39 Report and Recommendations Dept (s) Current Status Comments #18-03 Department of Public Works
#01 To better allocate training and non-project costs to capital projects, Public Works and the City Manager’s Budget Office should appropriate a portion of capital staff time for such charges in the Public Works Program Support Fund (150), and allocate such costs to projects through the Public Works Cost Allocation Plan.

PW / CMO Partly Implemented In coordination with the City Manager's Budget Office, Public Works initially allocated $50,000 for training costs within the Public Works Program Support Fund (150). The Department reports that additional funding is necessary to fully cover training and other non-project costs within Fund 150 and are still determining how best to account for these costs. Target Date: Jun-2023 (Delayed From: Jul-2019) #18-03 Department of Public Works
#05 To support consistent project management delivery, knowledge transfer during staff turnover, and accessibility for future reference, Public Works should use a standard electronic file structure for capital projects and determine what files should be kept to ensure that key documents are maintained for each phase of the capital delivery process.

PW Partly Implemented The Capital Project Management System (CPMS) team is working to standardize electronic file structures and document retention. Additionally, Public Works is in the planning phase of centralizing project documents within SharePoint to further support staff in maintaining key project documents and providing retention guidelines. The Department also reports that it has developed a folder structure for project files, and has begun to move files to the appropriate folders within the CPMS platform. This will help project managers report project updates and milestones. Target Date: Jun-2023 (Delayed From: Jul-2019)
#18-03 Department of Public Works
#06 To ensure consistent project delivery, Public Works should:

a) Update its project management manual using existing
project management guidelines and checklists as well as current practices,
b) Expand the manual to include guidance for each project phase and include duties of all divisions that are responsible for project delivery, and
c) Establish a process to regularly review and update the manual as needed.

PW Partly Implemented Public Works reports that the project management manual is on hold until its training and development manager returns from leave. Its work group is in the process of standardizing project management forms and templates, but the Department reports that additional resources will be needed to fully implement this recommendation.

Target Date: Jun-2024 (Delayed From: Mar-2019)
#18-03 Department of Public Works
#07 Public Works should review and update its Standard Details and Specifications, in coordination with the City Attorney’s Office and other departments, to ensure it contains up-to-date specifications, and establish a process to regularly review and update the manual as needed.

PW / CAO
/ DOT /
ESD
Partly Implemented
Public Works reports that several technical construction specifications and details have been updated, but that the effort is on hold. The Department reports that staff plan to identify the resources necessary to support this effort. Target Date: Jun-2024 (Delayed From: Dec-2020)
Status of Open Audit Recommendations as of December 31, 2022 40 Report and Recommendations Dept (s) Current Status Comments #18-03 Department of Public Works
#08 To improve its metrics used to assess performance, Public Works should:
a) Clarify that the performance metrics “on-budget” and “on- schedule” for capital projects refer to the construction phase of project delivery, and
b) Track the categories of change orders over time across all projects.

PW Partly Implemented The Department tracks individual project change orders as part of its project closeout process, and will attempt to monitor change orders across all of its capital projects through its Capital Project Management System (CPMS). Staff is also working with the benchmarking team and the Admin group to clarify 'on-budget' and 'on-schedule' performance measures to ensure the criteria for determining these measures are consistent throughout the department. Target Date: Dec-2023 (Delayed From: Mar- 2019)
#18-04 Audit of Vehicle Abatement
#02 To improve customer service to My San Jose app requests, the Department of Transportation should prioritize the timeliness of visiting a vehicle for an initial visit. This could include continuing to use contracted staff to perform initial visits.

CMO /
DOT
Closed At the time of the audit, the City operated a complaint-driven vehicle abatement program to remove vehicles from public streets that had been stored for long periods of time, were inoperable, or were abandoned completely. These complaints were submitted through SJ311 and all routed to DOT. The Administration reports a broader change in vehicle complaint patterns that requires an overall, multi-departmental, coordinated redesign of SJ311 and how customer reports are received, routed to the correct department, and addressed. According to the Administration, the SJ311 redesign currently underway is focused on improving service by increasing customer understanding at receipt and setting expectations related to neighbor nuisance concerns, lived-in vehicles, RVs, bio-waste, vehicles in parks, along with requesting policy input for citing and abating extremely blighted vehicles. The vehicle abatement program within DOT focuses on inoperable, hazardous, or extremely blighted vehicles.

This includes proactive patrolling, as well as responding to resident reports received through SJ311. Under the new approach, all SJ311 vehicle abatement service requests are reviewed. However, only cases where submitted photos demonstrate that the vehicle is inoperable, hazardous, or contributing to extreme blight are investigated and receive first visits. In the first two quarters of FY 2022-23, DOT prioritized the investigation of these vehicles and reports completing initial field visits, on average, within about 2 days of receiving the request through SJ311 versus 11 days prior.

Ongoing funding for this approach, including the use of contractors, was added in FY 2022-23. In FY 2021-22, 16 percent of customers rated vehicle abatement services as good or very good, but 54 percent rated services as good or very good if their request qualified for an investigation. Due to the redesign of the City's approach and the changes to the vehicle abatement program, we recommend this closing this recommendation.

Status of Open Audit Recommendations as of December 31, 2022 41 Report and Recommendations Dept (s) Current Status Comments #18-04 Audit of Vehicle Abatement
#12 The Police Department should:
a) revisit the calculation of impound costs and recommend that the City Council approve an adjustment to the vehicle release fee accordingly, and
b) bring forward to the City Council a recommendation for the City to institute a subsidized vehicle release fee for low-income vehicle owners.

PD Partly Implemented After reviewing the vehicle release fee, the Police Department adjusted the fee to $122 per vehicle; the Council adopted the revised fee, effective February 2019. The Administration reports that due to the City’s emergency response to COVID-19, it delayed its RFP for a technology platform and contract administration for tow services.

Following implementation of this platform, the Administration plans to use data gathered through this platform to review costs and evaluate a subsidized vehicle release fee. Target Date: Mar-2024 (Delayed From: Jun-2019) #18-06 Community Center Reuse (now the Neighborhood Center Partner Program)
#01 To inform future capital investment decisions and better understand the subsidy value to reuse service providers, PRNS should work with Public Works to periodically assess the condition and calculate the deferred maintenance of reuse facilities.

PRNS Implemented PRNS hired a Senior Maintenance Worker and a Building Management Administrator to support management and infrastructure needs assessments for the Neighborhood Center Partner Program (NCPP, formerly the Community Center Reuse program) and other PRNS facilities. Public Works-City Facilities Architectural Services (PW-CFAS) executed a consultant master agreement for the building assessments consultants.

PRNS reports that in November 2022, the consultant completed field visits to nine NCPP sites, providing a report in January 2023. Staff aim to create a five-year Capital Improvement Program (CIP) for building infrastructure needs and capital replacements which will include assessed value of each NCPP site.
#18-06 Community Center Reuse (now the Neighborhood Center Partner Program)
#02 To better track the net costs of individual facilities in the Reuse Program, PRNS should improve tracking of maintenance costs and revenues, periodically review the City’s cost for re-use facilities, and assess the continued value of reuse sites.

PRNS Partly Implemented
PRNS' Building Management Administrator (BMA) and Senior Maintenance Worker are tasked with addressing building infrastructure, equipment needs, and facility improvements. The BMA evaluates and analyzes available database systems to review work orders and associated facility operational and maintenance costs of Neighborhood Center Partner Program buildings. Staff report the BMA is compiling data on a quarterly basis to complete a 12-month summary of facility costs based on work orders by site and type. Target Date: Dec-2023 (Delayed From: Dec-2021) #18-06 Community Center Reuse (now the Neighborhood Center Partner Program)
#03 To provide policy makers with information about the Reuse Program in all districts, PRNS should include information on contracted and actual reported services by program activity across all service providers and facilities in their annual reuse updates.

PRNS Partly Implemented PRNS developed reporting and monitoring requirements that were included in a 2021 RFQ and incorporated into service providers' executed contracts. Staff report that service providers submitted a mid-year report in April 2022 and an end-of-year report in November 2022. PRNS plans to provide an update on program performance to the Neighborhood Services and Education Committee (NSE) after a full program year.

Target Date: Aug-2023 (Delayed From: Jul-2020)
Status of Open Audit Recommendations as of December 31, 2022 42 Report and Recommendations Dept (s) Current Status Comments #18-06 Community Center Reuse (now the Neighborhood Center Partner Program)
#08 PRNS should immediately ensure verification or certification of background checks of reuse providers’ paid and unpaid staff, in accordance with the reuse agreement.

PRNS Partly Implemented An "Attestation of Background Check" form was developed by PRNS and approved by the City Attorney's Office to confirm partner compliance with fingerprinting, background checks, TB testing requirements, and Trustline registration (if applicable) for all employees and volunteers working and/or interacting with vulnerable populations at Neighborhood Center Partner Program (NCPP, formerly Reuse) sites. Staff have been working with the City Attorney's Office to issue non-compliance notices to agencies that have not yet met the background check requirement. The notice outlines areas of non-compliance and actions required by the agency to meet compliance. NCPP administrative staff report that they have continued to monitor background check compliance and determine whether further actions outlined in the monitoring and requirements guidelines are required. Staff report that several agencies have successfully progressed through Department of Justice review and are nearing issuance of the required clearance and that all agencies are active in the process of obtaining compliance with the background check requirement. Target Date: Jun-2023 (Delayed From: Dec-2019)
#18-07 Audit of the City’s Homeless Assistance Programs #07 To analyze the effectiveness of the City’s homeless assistance efforts, the Housing Department should use HMIS to:
a) Aggregate City of San Jose data by strategy area (rapid rehousing, permanent housing, crisis response, and prevention) and report on key performance indicators including: exits to permanent housing, returns to homelessness, number of
participants enrolled per strategy area; and
b) Compare the performance of the City’s homeless assistance by strategy area to identified targets and the performance of the CoC on a semi-annual basis.

HSG Partly Implemented The Department reports an analyst in the Homeless Response Team has completed HMIS training and is working with agencies to monitor performance and data entry into HMIS. The Annual Homeless Report includes key performance indicators including exits to permanent housing and number of participants enrolled per strategy. The next annual report is expected in March 2023 and returns to homelessness is expected to be included in the FY 2023-24 budget. Target Date: Jul-2023 (Delayed From: Aug- 2019)
Status of Open Audit Recommendations as of December 31, 2022 43 Report and Recommendations Dept (s) Current Status Comments #18-07 Audit of the City’s Homeless Assistance Programs #11 To effectively manage monitoring activities and utilize monitoring results to improve project delivery of its homeless response grants, the Housing Department should:
a) Develop monitoring procedures including an annual
monitoring plan, grantee performance summary, and upload monitoring reports and risk assessment to the City’s grants management system;
b) Conduct on-site monitoring visits for each homeless
assistance contract at least every two years as has been described in its annual action plan; and
c) Compare grantee progress reports against HMIS reported data on a semi-annual basis to ensure the accuracy of grantee reported performance metrics.

HSG Partly
Implemented
-
Priority
a) The Department developed a Grants Monitoring Policies and Procedures Manual, last revised in July 2020, including COVID-19 Emergency Monitoring Plan. Staff updated the manual to include best practices acquired from the monitoring exercise.

The Grants Management Analysts completes annual risk assessments and performance summaries. These reports are filed in the Grants Management SharePoint library. The team uses WebGrants to assist in managing all agreements/projects. Staff worked with the WebGrants vendor to establish a monitoring portal that allows staff to upload all monitoring documents into WebGrants as they are filed and completed.
b) The Department reports that due to the COVID-19 pandemic, on-site monitoring visits were suspended during FY 2019-20 to FY 2021-22. The Department reports the Grants Management division has completed risk assessments to facilitate developing the 2022 monitoring plan. In February 2022, the Department engaged an outside firm to assist with monitoring of agreements/projects based on level of risk, reviewing the existing monitoring policies and procedures, and the creation of a cyclical plan for annual monitoring. In October 2022, consultants from the PUN Group began programmatic and fiscal monitoring both remotely and on-site for high-risk agreements, twelve of which have been monitored as of December 2022. Monitoring agreements will continue in 2023-24; a schedule is being developed for ongoing monitoring of all agreements.
c) The Department reports two Homelessness Response Team members have completed HMIS training and work with contracted agencies to monitor performance and data entry into HMIS. The Department reports that it has identified and grouped contracts into categories by strategy area to focus monitoring activities, and drafted a quarterly reporting procedures manual on how to review quarterly performance reports in WebGrants to data in HMIS. Additionally, the Homelessness Response Team has trained staff from the Grants Team to perform basic audits of submitted WebGrants reports that include demographics data using the prebuilt reports in HMIS. The Homelessness Response Team and Grant Analysts validated Q1 of 2022-2023 and plan to validate Q3 2022-2023 next. Target Date: Dec-2023 (Delayed From: Jul-2020) #18-10 Audit of Towing Services
#01 To provide a method to address violations, the City should include in future towing services agreements:
a) An escalating penalty structure of liquidated damages, suspensions, and contract termination. Liquidated damages should be increased over time.
b) Provisions requiring towing contractors to respond to another tow zone in case of a tow refusal or suspension (with a different timeliness standard).

PBCE Not Implemented
-
Priority
Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration reports that requirements to meet this recommendation have been incorporated into the RFP, and will be incorporated into the future agreement as appropriate. Target Date: Mar-2024 (Delayed From: Jul- 2020)
#18-10 Audit of Towing Services
#04 The City should consider allowing contractors to submit proposals for a contract fee, paid by the contractor to the City per towed vehicle, as part of the Request for Proposal process. The amount of the contract fee should be evaluated along with other aspects of a potential contractor’s proposal.

PBCE Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration also brought forward a Fifth Amendment to the City Generated Tow Services Agreements in March 2021, which continued the reduction of the contract compensation fee to zero, to ensure continuity of tow services. The Tow Services Agreements were extended through March 31, 2023. The Agreements may be extended year-by-year through March 31, 2026 at the City’s option. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration reports that requirements to meet this recommendation have been incorporated into the RFP, and will be incorporated into the future agreement as appropriate. Target Date: Mar-2024 (Delayed From: Jul- 2020)
#18-10 Audit of Towing Services
#05 In future towing services agreements, the City should continue the junk vehicle reimbursement program or, in conjunction with Recommendation #4, request that proposed contract fees account for the costs of junk vehicle disposal.

PBCE Partly Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration brought forward a fifth amendment to the City Generated Tow Services Agreements to Council in March 2021 to ensure continuity of tow services. The Administration brought forward a sixth amendment to the City Generated Tow Services Agreements to the City Council in December 2022 to provide reimbursement for junk vehicle towing and disposal in connection with BeautifySJ clean-up efforts. This is currently being executed. Staff anticipates that the issues which warranted a junk vehicle reimbursement program will be addressed as part of the tow software and contract administration RFP and new City Generated Tow Services Delivery Model as appropriate. Target Date: Mar-2024 (Delayed From: Jul- 2020)
#18-10 Audit of Towing Services
#06 The City Administration, in consultation with appropriate departments, should establish clear guidelines for the appropriate disposal of hazardous waste and junk vehicles.

PBCE Partly Implemented On June 25, 2019, City Council approved a second amendment to the tow services agreements to clarify hazardous waste disposal and documentation requirements in order for towing contractors to be eligible for compensation. The Administration intends to develop additional guidelines for disposal of junk vehicles during the current RFP process and potential implementation of a new service delivery model. Target Date:

Mar-2024 (Delayed From: Jul-2020)
Status of Open Audit Recommendations as of December 31, 2022 45 Report and Recommendations Dept (s) Current Status Comments #18-10 Audit of Towing Services
#09 The City should modify future towing services agreements to allow towing contractors to have tow yards located outside of their assigned zones, such as anywhere within the City limits.

PBCE Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration extended the existing City Generated Tow Services Agreements through March 2023 and plan to exercise the option to extend the agreements through March 2024. The Administration reports that requirements to meet this recommendation have been incorporated into the RFP, and will be incorporated into the future agreement as appropriate. Target Date: Mar-2024 (Delayed From: Jul-2020)
#18-10 Audit of Towing Services
#10 The City should consider additional changes to future towing services agreements, such as:
a) Specifying that tow yard capacity must be sufficient, and having respondents propose tow yard capacity;
b) Allowing towing contractors to engage in private business towing;
c) Specifying that the number of tow trucks must be
sufficient; and/or
d) Redrawing the tow zone boundaries such that they have an equal number of expected tows.

PBCE Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration extended the existing City Generated Tow Services Agreements through March 2023 and plan to exercise the option to extend the agreements through March 2024. The Administration reports that requirements to meet this recommendation have been incorporated into the RFP, and will be incorporated into the future agreement as appropriate. Target Date: Mar-2024 (Delayed From: Jul-2020)
#18-10 Audit of Towing Services
#11 The City should require towing contractors to submit all information as specified in the City’s towing services agreements (including claimed vehicles), regardless of whether payments are missed or late.

PBCE Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration brought forward a fifth amendment to the City Generated Tow Services Agreements to Council in March 2021 to ensure continuity of tow services. The Administration brought forward a sixth amendment to the City Generated Tow Services Agreements to the City Council in December 2022 to provide reimbursement for junk vehicle towing and disposal in connection with BeautifySJ clean-up efforts. This is currently being executed. Staff anticipates that the issues which warranted a junk vehicle reimbursement program will be addressed in future agreements following the RFP as appropriate. Target Date: Mar-2024 (Delayed From: Jul-2020)
#18-10 Audit of Towing Services
#12 In future towing services agreements, the City should require towing contractors to provide tow records in an electronic format or consider requiring the use of a towed vehicle database system (either procured by the City or by towing contractors with access granted to City staff).

PBCE /
FIN
Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration brought forward a fifth amendment to the City Generated Tow Services Agreements to Council in March 2021 to ensure continuity of tow services. The Administration brought forward a sixth amendment to the City Generated Tow Services Agreements to the City Council in December 2022 to provide reimbursement for junk vehicle towing and disposal in connection with BeautifySJ clean-up efforts. This is currently being executed. Staff anticipates that the issues which warranted a junk vehicle reimbursement program will be addressed in future agreements following the RFP as appropriate. Target Date: Mar-2024 (Delayed From: Jul-2020)
#18-10 Audit of Towing Services
#14 To reduce time required to oversee contract terms, in future towing services agreements the City should charge one
consolidated fee to towing contractors based on the number of towed vehicles.

PBCE Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. The Administration brought forward a fifth amendment to the City Generated Tow Services Agreements to Council in March 2021 to ensure continuity of tow services. The Administration brought forward a sixth amendment to the City Generated Tow Services Agreements to the City Council in December 2022 to provide reimbursement for junk vehicle towing and disposal in connection with BeautifySJ clean-up efforts. This is currently being executed. Staff anticipates that the issues which warranted a junk vehicle reimbursement program will be addressed in future agreements following the RFP as appropriate. Target Date: Mar-2024 (Delayed From: Jul-2020)
#18-10 Audit of Towing Services
#15 For improved oversight over the towing services agreements, the administration of the contract should be consolidated in the Police Department with an evaluation of the resources needed to perform this responsibility.

PD Not Implemented Due to the City’s emergency response to COVID-19 and changes to the scope of services, the Administration delayed an RFP for a technology platform and contract administration for tow services. The Administration released the RFP in February 2023, with a closing date in April 2023. Staff will be working on a work plan to transition the program to the Police Department in tandem with the RFP; however, staff also report that the Police Department currently does not have staffing or capacity to support the administration and management of City Generated Tow Services agreements. As part of the 2023-24 mid-year budget process or the 2024-2025 annual budget process, the Police Department Fiscal Unit, in coordination with PBCE, intends to explore proposals to secure the required staffing and resources to support contract administration as appropriate. Target Date: Jun-2024 (Delayed From: Jul-2020) #19-01 Audit of 9-1-1 and 3-1-1
#02 Fire Communications should pull regular performance reports and monitor average answering times.

FIRE Implemented The Department has hired a Fire Communications Analyst, who runs monthly reports on Fire's call volume and answer times (emergency and non-emergency). Moving forward, the Department plans to formalize regular distribution of these reports.

Status of Open Audit Recommendations as of December 31, 2022 47 Report and Recommendations Dept (s) Current Status Comments #19-01 Audit of 9-1-1 and 3-1-1
#05 To increase focus on outreach and recruiting for Communications staff, Police Communications and Fire
Communications should each develop a recruiting plan for their respective divisions, and explore opportunities for collaboration and joint recruitment opportunities.

PD / FIRE Partly Implemented According to the Police Department's recruiting plan, Communications positions are advertised on the recruiting website www.SJPDYOU.com and on social media.

Additionally, a Communications Senior Police Dispatcher works with Police Recruiting to attend job fairs, symposiums, and recruiting events. The Senior Dispatcher attends these events with current Police Communications Specialists and Police Radio Dispatchers. According to the Fire Department, their Fire Communication Analyst is developing a formalized recruitment plan. The Police Department reports they will advise the Fire Communications Manager if there is an excess of Police dispatch applicants, or they consider a candidate is better fit for Fire dispatch. Target Date: Jun- 2023 (Delayed From: Jun-2021)
#19-01 Audit of 9-1-1 and 3-1-1
#06 The Police and Fire Department should utilize external marketing firms to bolster marketing efforts to recruit communications staff for both Police and Fire staff.

PD / FIRE Partly Implemented The Sworn Police Department Recruiting Unit has an agreement with Civilian, Inc. to help with recruiting. The Police Department reports that Civilian is working on videos and social media. According to the Department, the Civilian contract is being reviewed by the City Attorney's Office for renewal. Additionally, the Department reports that the Unit's Senior Dispatcher has attended hiring fairs, created a recruiting team to attend events, and hosted Q&A sessions about employment opportunities. The Fire Department reports that their Fire Communications Analyst is developing a recruitment plan and will evaluate the use of external marketing firms. Target Date: Jun-2023 (Delayed From: Jun-2021)
#19-01 Audit of 9-1-1 and 3-1-1
#07 The Police and Fire Departments should work with the Public Works Department to make closer parking options available to Communications staff that work night shifts.

PD / FIRE Partly Implemented Police and Fire Communications personnel continue to have parking options across the street in a County lot. The N. San Pedro Street and Mission Street parking lot is also available and secured by Department card readers. The Police Department offers interior parking spots for Police Communications personnel working on swing and night shifts. The Fire Department reports they are working with the Finance Department to procure security guard services to escort personnel between the employee parking lot and building during hours of darkness. Target Date: Jun-2023 (Delayed From: Dec- 2020)
#19-01 Audit of 9-1-1 and 3-1-1
#09 To retain qualified staff that are more inclined to call taking versus dispatch, the Administration should explore the creation of a call taker position in the Fire Department.

FIRE Partly Implemented According to the Fire Department, a final report from Mission Critical Partners, pursuant to the Fire Communications Workforce Optimization Study, provides an analysis on the staffing levels, call taking capacity, and strategies to address Fire Communication's staffing resources. Target Date: Jun-2023 (Delayed From: Jun- 2021)
#19-01 Audit of 9-1-1 and 3-1-1
#12 To remove report-taking responsibilities from emergency call takers, the Police Department should assess and potentially distribute report-taking responsibilities that could be handled by (a) the City Customer Contact Center, (b) police officers on modified duty, (c) retiree rehires, or (d) Community Service Officers.

PD Partly Implemented The Police Department continues to use retiree rehires and per-diem staff for call- taking, radio dispatching, and Telephone Report Automation Center (TRAC) calls. The Department reports that Community Service Officers are placed in the Police Department lobby to take in-person reports, but do not currently handle reports over the phone. The Department has determined that assigning these call-taking responsibilities to the City Customer Contact Center or police on modified duty is not feasible, but plans to continue reviewing other options. Target Date: Dec-2024 (Delayed From: Jun-2020)
Status of Open Audit Recommendations as of December 31, 2022 48 Report and Recommendations Dept (s) Current Status Comments #19-01 Audit of 9-1-1 and 3-1-1
#16 Police non-emergency services should provide information and translation services for customers who do not speak English.

PD Implemented According to the Department’s translator policy, non-emergency call takers use the Department’s non-emergency translation service to respond to calls in languages other than English. If the translation services line is busy or unavailable, call takers identify available certified bilingual call takers. When none are available, the call taker uses the emergency translation service. Per the policy, when a non-emergency call results in a dispatch, the call taker includes information regarding the language spoken, whether a translator was used, and if there is someone at the scene who can translate for the officer when contact is needed. Staff report they either send an officer that speaks the same language as the reporting party or use a translation service on the field. #19-03 Development Noticing
#01 Planning should propose updates to Council Policy 6-30 that set realistic goals for the timing of on-site notices, and require evidence of on-site posting prior to setting a hearing date.

PBCE Not Implemented According to the Department, due to limited staffing resources in the Planning Division it does not plan on amending policy 6-30 at this time. The Department reports it will continue to undertake outreach and engagement strategies in coordination with the Community Engagement Working Group (CWEG) in the interim. The Administration plans to revisit the policy review in FY 2023-24. Target Date: Dec-2024 (Delayed From: Dec-2021)
#19-03 Development Noticing
#03 Planning should propose updates to Council Policy 6-30 and develop and implement procedures to:

A. Proactively identify projects and dominant neighborhood languages to ensure hearing notices are properly translated, B. Include guidance on when interpretation services for hearings should be provided, and
C. Remove the requirement that requesting parties pay for the translation of hearing notices, and determine an appropriate funding source.

PBCE Partly Implemented According to the Department, implementation of this recommendation would be included in a full review of Policy 6-30. However, due to limited staffing resources in the Planning Division, the Department does not plan on amending policy 6-30 at this time. The Department reports it will continue to undertake outreach and engagement strategies in coordination with the Community Engagement Working Group (CWEG) in the interim. The Administration plans to revisit the policy review for FY 2023-24.

Target Date: Dec-2024 (Delayed From: Dec-2021)
#19-03 Development Noticing
#04 To clarify expectations on noticing practices, Planning should propose changes to Council Policy 6-30 to provide additional guidance on mailing radii and permit types.

PBCE Not Implemented According to the Department, implementation of this recommendation would be included in a full review of Policy 6-30. However, due to limited staffing resources in the Planning Division, the Department does not plan on amending policy 6-30 at this time. The Department reports it will continue to undertake outreach and engagement strategies in coordination with the Community Engagement Working Group (CWEG) in the interim. The Administration plans to revisit the policy review for FY 2023-24.

Target Date: Dec-2024 (Delayed From: Dec-2021)
#19-03 Development Noticing
#05 Planning should propose changes to Council Policy 6-30 to set goals to increase the availability of online information prior to a public hearing.

Target Date: Dec-2024 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of December 31, 2022 49 Report and Recommendations Dept (s) Current Status Comments #19-04 The Mayor’s Gang Prevention Task Force
#03 In addition to its goal of reducing youth gang violence, the Administration should determine the role of the Task Force (BEST and Youth Intervention Services) in the context of overall juvenile crimes and youth violence prevention.

PRNS Implemented On January 31, 2023, the City Council accepted the strategic plan of the San José Youth Empowerment Alliance (formerly known as the Mayor's Gang Prevention Task Force) which outlines a broader approach to youth violence prevention. The plan has four objectives -- prevention, intervention, diversion/reentry, and healing, which emphasizes trauma-informed and racial equity policymaking. Goals within these objectives include the delivery of expanded BEST eligible services and piloting a cross- agency program with the County and Youth Intervention Services in a Project Hope neighborhood.
#19-04 The Mayor’s Gang Prevention Task Force
#04 The Department of Parks, Recreation and Neighborhood Services should ensure participant needs are consistently assessed by developing processes to:
a) Assess youth participants through the adoption of a standardized assessment tool to be used for all Task Force programming,
b) Create corresponding service plans based on those risk levels, and
c) Track and report enrollment by risk level including pre and post results for all Task Force services.

PRNS Partly Implemented A consultant completed a screening tool and piloted it with two BEST funded agencies and two Youth Intervention Services (YIS) programs. Based on the feedback from the pilot stage, the consultant adjusted the tool to align risk categories with risk levels identified by the screener. The goal of the pilot was to obtain a minimum of 100 completed screeners across all six programs. The consultant report that they received 174 completed screeners. Following the adjustment, staff report the consultant developed training for YIS and BEST program staff to support consistent implementation of the tool across youth violence prevention programs. Screening tool implementation began September 2022 for YIS programs; staff anticipate BEST will implement the survey in program year 2023-24, the first year after an RFQ process to identify new agencies. Target Date: Mar-2024 (Delayed From: Jun-2021) #19-04 The Mayor’s Gang Prevention Task Force
#08 The Department of Parks, Recreation and Neighborhood Services should work with the City Attorney’s Office to update the current Memoranda of Agreement with school districts to include:
a) All services provided by City staff on school campuses, b) Roles and responsibilities for City staff and school administrators, including criteria for Safe School Campus Initiative activations, and
c) Key documents that would be required to enroll
participants, including parental consent forms.

PRNS Partly Implemented The San José Youth Empowerment Alliance (formerly known as the Mayor's Gang Prevention Task Force) serves 17 school districts. PRNS has updated and executed agreements for six school districts including East Side Union High School District, Alum Rock, Franklin-McKinley, Moreland, San Jose Unified, and the Santa Clara County Office of Education (alternative schools). Agreements with the Fremont Union High School District, the Campbell Union High School District, and the Cambrian School District have also been executed. Draft agreements have been submitted to Oak Grove School District and Morgan Hill Unified School District for review. Staff report that they continue to reach out to the remaining districts to complete new agreements while previous agreements to provide services to each district remain in force. Target Date: Jul-2023 (Delayed From: Jul-2020) Status of Open Audit Recommendations as of December 31, 2022 50 Report and Recommendations Dept (s) Current Status Comments #19-04 The Mayor’s Gang Prevention Task Force
#14 The Department of Parks, Recreation and Neighborhood Services should:
a) Reassess reported program outcomes and units of service for all Task Force programs, and
b) Re-define and annually report key program outcome
measures.

PRNS Partly Implemented PRNS hired a consultant to develop a performance measurement framework for all Task Force programs (BEST and Youth Intervention Services) to reassess program outcomes and units of service. The framework sought to align the preliminary theory of change developed by the evaluation consultant (Social Policy Research Associates), City audit recommendations, and program capacity for data collection. Staff report the planning process for reassessing program outcomes and re-defining program outcome measures for both YIS and BEST funded program was completed July 2022. After the consultant recommended the performance metrics and data collection processes and tools, PRNS staff reviewed the outcomes and determined existing data collection tools remain viable. Staff plan to use the new performance outcome measure framework for 2023-24 program evaluations for BEST. This aligns with a new cycle for BEST agencies, following the first year after the agency selection process. Staff report that second phase evaluation for YIS pends budget approval and would be implemented following a renewed selection process for evaluation consultants in 2023. Target Date:

Jun-2024 (Delayed From: Jul-2021)
#19-04 The Mayor’s Gang Prevention Task Force
#15 To evaluate the satisfaction of services provided to youth participants and their families, the Department of Parks, Recreation and Neighborhood Services should establish a formal mechanism for youth to provide feedback through the annual administration of participant surveys. The results of the surveys should be included in the annual report to Council on Task Force activities.

PRNS Partly Implemented For the BEST program, PRNS has been conducting youth surveys and reporting results in the annual report presented to the Neighborhood Services and Education Committee and City Council. Staff report that Youth Intervention Services (YIS) completed a revised pilot survey, based on the BEST survey, with a sample of Safe School Campus Initiative and Female Intervention Team clients. The survey included 11 statements participants agreed or disagreed with, to varying degrees, in reporting their view of the programs and outcomes achieved. Staff plan to expand use of this survey instrument, and develop evaluation instruments for other YIS programs, during the next phase of the evaluation system project. Staff report that they are preparing a scope of work to select a consultant for this work. They anticipate including results of this survey in the next annual report to City Council, as well as regular use of the survey for each of the YIS programs by June 2023. Target Date: Jun-2023 (Delayed From: Jul-2020)
#19-06 Form 700s
#02 The City Clerk’s Office should establish standard procedures surrounding the assessment of late fines and referral of non-filers to the Fair Political Practices Commission (FPPC). The procedures should include using its e-filing system to track follow up activities, such as assessing late fines and sending non-filing notices.

CLERK Partly Implemented The FPPC changed the reporting procedures for non-filers. The Office of the City Clerk reports the process is now more labor-intensive, and that they are working with the FPPC to come up with a better solution for large agencies. The procedures for the Office of the City Clerk will be reworked based on the changes. Target Date: Dec- 2023 (Delayed From: Jun-2020)
#19-06 Form 700s
#09 The Administration, in consultation with the City Attorney’s Office, should develop guidance for departments to review employee Form 700s for potential conflicts of interest.

CMO /
CAO
Implemented The City Manager's Office (CMO), City Attorney's Office, and City Clerk coordinated to complete an administrative procedure providing guidance for a periodic review of Form 700s. The CMO conducted training in February 2023 for the Administrative Officers and Form 700 liaisons on the procedure.

Status of Open Audit Recommendations as of December 31, 2022 51 Report and Recommendations Dept (s) Current Status Comments #19-07 Procurement Cards
#01 The Finance Department should:
a) Periodically (at least monthly) review list of separated employees and ensure that p-cards of employees on that list are immediately deactivated, and
b) Reassess and clarify policy expectations to deactivate p- cards when employees are on leaves.

FIN Partly Implemented The Finance Department has started to perform monthly reviews of separated employee lists to ensure that p-cards assigned to former City employees are deactivated. The Department plans to clarify policy expectations as part of the revised p-card policy and new administrative guide. Both documents are under senior staff review. Target Date: Sep-2023 (Delayed From: Jun-2020) #19-07 Procurement Cards
#02 The Finance Department should:
a) Develop a process to annually share recertification data with p-card coordinators so departments can easily cross-check and verify compliance with the recertification quiz,
b) Require p-card holders that have not completed the
recertification to immediately do so, and
c) Suspend p-cards for employees that do not comply with the recertification requirements within an agreed-upon timeframe.

FIN Partly Implemented The Finance Department is now responsible for administering and monitoring the annual recertification quiz Citywide, including enforcing suspensions as needed. The Department plans to address items b) and c) of this recommendation as part of the p- card policy update or p-card administrative guide. Both documents are under senior staff review. Target Date: Sep-2023 (Delayed From: Jun-2020) #19-07 Procurement Cards
#03 To help employees comply with applicable purchase requirements, Finance should:
a) Aggregate all policies and guidelines applicable to p-card purchases, including furniture purchases, in an easy and user friendly resource available on the City’s intranet site; and b) Work with Public Works to clarify restrictions on vehicle related p-card expenses and that any questions regarding such purchases be directed to Public Works’ Fleet Division, and include such guidance in the p-card administrative guide.

FIN / PW Partly Implemented
Finance plans on aggregating all p-card related policies and guidelines, including those related to furniture purchases, and making them available on Purchasing's intranet site.

The Department is also working with Public Works' Fleet Division to clarify restrictions on vehicle-related p-card purchases and the correct procurement methods for vehicle- related purchases. This clarification will be included as part of the aggregation of p- card related policies and guidelines. Target Date: Sep-2023 (Delayed From: Jun- 2020)
#19-07 Procurement Cards
#04 The Finance Department should work with the Information Technology Department to clarify whether cloud based
subscriptions are considered services and whether these types of services require Information Technology Department approval.

FIN Partly Implemented
San José's Municipal Code defines software as a service. The Finance Department will clarify in its p-card policy and administrative guide that cloud-based subscriptions require approval from the Information Technology Department. Both documents are under senior staff review. Target Date: Sep-2023 (Delayed From: Jun-2020) Status of Open Audit Recommendations as of December 31, 2022 52 Report and Recommendations Dept (s) Current Status Comments #19-07 Procurement Cards
#05 We recommend Finance work with Office Depot to review past pricing and purchasing data to determine and ensure the City received:
a) Discounts on non-contracted items;
b) Appropriate rebates, including those based on the sales of “piggybacked” cities; and
c) Appropriate pricing under the terms of the agreement.

FIN Partly Implemented Finance has reviewed with Office Depot past City pricing and purchasing data for contracted items and has reached a settlement of $63,000 with Office Depot to account for missed discounts and unpaid rebates on these items. Due to staffing challenge at both the Department and Office Depot, as well challenges arising from the COVID-19 pandemic, the Department has not yet been able to review pricing and purchasing data for non-contracted items or confirm rebates for "piggybacked" cities.

Target Date: Sep-2023 (Delayed From: Jun-2020)
Potential Monetary Benefit: At the time of the audit, we estimated the City may have lost out on at least $176,00 in savings.
#19-07 Procurement Cards
#07 The Finance Department should:
a) Include in its department p-card coordinator training expectations about on-going monitoring of p-card purchases to ensure that departments are appropriately utilizing Citywide and department-specific open purchase orders when applicable; b) Work with the Information Technology Department to
ensure that related purchase order information is available in all browsers, or that purchase orders specifically clarify that the related information is only available through Internet Explorer Browsers.

FIN / ITD Partly Implemented Finance is including in its p-card training sessions the expectation that departments use Citywide and department-specific open purchase orders when applicable and practical. The Department intends to incorporate this expectation within its revised p- card policy or administrative guidelines. Both documents are under senior staff review.

The Department has published instructions to help City staff view complete purchase order information on all internet browsers. Target Date: Jun-2023 (Delayed From: Jun- 2020)
#19-07 Procurement Cards
#09 PRNS should develop procedures for p-card usage that include:
a) A review of p-card usage to reevaluate the operational necessity of individual staff having a p-card and cancel p-cards if not necessary,
b) Guidelines to establish the business need for purchases, including for food and beverages used for events or programs, c) Providing expectations for tracking and securing high-value items purchased with p-cards,
d) Ensuring staff are using available purchase orders for food and beverage purchases,
e) Developing guidelines surrounding the purchase of gift cards that set expectations on dollar limits, usage, and supporting documentation, and
f) Ensuring that p-card payments are made in a timely
manner.

PRNS Partly Implemented Part e) of the recommendation has been implemented. For the other elements of the recommendation, the Department reports using draft standard operating procedures (SOP’s) for each, including: 9a) “Assessing Operational Necessity for P-Card Issuance and Limits”; 9b) “Guidelines for Using P-Cards for Food & Beverage Purchases”; 9c) “Guidelines for High-value Asset Inventory Tracking”; 9d) “Guidelines for Using Food & Beverage Purchase Orders”; and, 9f) “P-Card Payment Processing Submission Procedures/Timelines.” Next steps include reviewing and validating the SOP’s with PRNS executive staff to finalize implementation. With that, staff plans to post the SOP’s on SharePoint for general reference. Target Date: Jun-2023 (Delayed From:

Mar-2022)
Status of Open Audit Recommendations as of December 31, 2022 53 Report and Recommendations Dept (s) Current Status Comments #19-08 Street and Utility In-Lieu Fees
#05 To ensure that the City’s utility undergrounding fee is a fair estimate of the cost of utility undergrounding projects, Public Works should reassess the utility undergrounding in-lieu fee.

PW Partly Implemented In December 2022, staff adjusted the underground fee to $605 per linear foot of frontage, based on the City Average Construction Index. While staff had anticipated updating the undergrounding fee based on recent project costs, two undergrounding projects were delayed due to the COVID-19 pandemic, unforeseen utility congestion, and design issues. Staff anticipates the subject projects to be completed by December 2023 and December 2026. This will provide cost data to be compared to the current fee to determine if an adjustment is required. Staff will continue to update the underground fee per Construction Cost Index, as has been done annually for the past two years. Target Date: Feb-2024 (Delayed From: Jun-2021) #19-10 Technology Deployments
#07 To limit loss of knowledge when key project staff leave the City, the Administration should develop procedures to require project staff Citywide to document (potentially using a shared platform) key technology deployment decision points, which include:
• Approval of specifications
• Product customizations and their approvals
• Progress against project plans
• Changes to agreed-upon features
• Key communications with the vendor
ITD Implemented The City’s Technology Management and Deployments Policy 1.7.2 requires project charters, key communications and approvals, and status reports be documented by the Products-Projects Manager. Documentation is stored in unique SharePoint directories by project. Approvals, customizations, progress reports, agreed-upon changes, and key communications with vendors are archived and searchable in SharePoint. Project charters are stored in the appropriate SharePoint directory and signed off by project sponsors and key stakeholders. ITD reports that documentation and storage requirements are included in trainings for all Product-Project Managers. #19-10 Technology Deployments
#09 For transparency on the status of technology projects above a certain threshold of complexity, dollar value, or public impact, the Administration should develop guidelines to:
a. Require regular and detailed reporting to the appropriate Council Committee(s).
b. Include budget and time metrics, as well as deviations from original estimates in reporting
c. Create a dashboard, or other online tool, to track and publicly display the progress of key technology projects, incorporating metrics that are critical to the success of the deployment.

ITD Implemented ITD provided high-level status reports to Smarts Cities and Services Improvements Committee (SCSI) every other month since August 2021. Regular reporting included projects with changes to budget and schedule. With the sunset of SCSI, ITD will begin reporting to the Public Safety, Finance, and Strategic Support Committee (PSFSS) twice a year, starting in March 2023. Budget and time metrics are also reflected in an ITD internal dashboard and publicly available dashboard at https://www.sanjoseca.gov/your-government/departments-offices/information- technology/it-projects-c3po. Staff report that both dashboards are updated every two months. The public, interactive dashboard includes the project status, budget, and enterprise priority.

Status of Open Audit Recommendations as of December 31, 2022 54 Report and Recommendations Dept (s) Current Status Comments #20-02 Fleet Maintenance and Operations
#02 To help manage fleet asset levels and the allocation of fleet assets, Public Works should update the City Policy Manual 1.8.1 to:
a) Adjust or establish minimum utilization standards for all fleet assets,
b) Require annual utilization reviews to identify underutilized assets, and
c) Include procedures on coordinating utilization reviews with City departments and the use of underutilized assets, such as transferring underutilized assets to the Citywide motor pool, disposing them, or reallocating them as appropriate.

PW Partly Implemented Public Works is currently working on updating the policy, and plans to have the updates completed, reviewed, and approved by June 2023. Target Date: Jun-2023 (Delayed From: Mar-2022)
Potential Monetary Benefit: At the time of the audit, we identified $160,000 in work orders generated in FY 2018-19 from fleet assets identified as potentially underutilized. #20-02 Fleet Maintenance and Operations
#03 In the context of overall budget priorities, Public Works should work with the Budget Office to develop short- and long-term staffing strategies to achieve desired performance results, that may include:
a) Further use of the rehire retirees program,
b) Use of contractual services for additional repair types or asset classes, and/or
c) Additional overtime opportunities for current staff.

PW/ CMO Partly Implemented While the FY 2022-23 Adopted Operating budget included 2 Equipment Mechanic Positions to support shop operations, Public Works continues to use the rehire retiree program and contractual services to help offset staffing shortages. The Budget Office and Public Works report that more substantial staffing additions were contemplated before the onset of COVID-19. They also report that a long-term staffing strategy will be revisited during the development of the FY 2023-24 budget development process, though implementation of the plan will be subject to resource constraints and other competing City priorities. Target Date: Jul-2023 (Delayed From: Dec-2021) #20-02 Fleet Maintenance and Operations
#04 To improve Citywide preventive maintenance (PM) compliance, Public Works’ Fleet Division should:
a) Work with departments to confirm point of contacts for PM notifications and complete implementation of the automated PM notifications,
b) Establish a Citywide PM compliance target, as well as internal PM compliance targets for departments/asset classes, an c) Implement a PM compliance incentive program, that could include expansion of the fuel shut-off program for noncompliant assets that meet criteria identified by the Fleet Division, or including departmental PM compliance performance into the fleet replacement prioritization process.

PW Partly Implemented Public Works has implemented automated emails for preventative maintenance notifications, and is working with its vendor to finalize dashboards that will help the Department as well customer departments monitor preventative maintenance compliance. Target Date: Jun-2023 (Delayed From: Dec-2021) Status of Open Audit Recommendations as of December 31, 2022 55 Report and Recommendations Dept (s) Current Status Comments #20-02 Fleet Maintenance and Operations
#06 Public Works’ Fleet Division should pilot an electronic work order intake process using AssetWorks to increase efficiency and remove duplication of efforts.

PW Implemented Fleet Division could not fully automate the work order intake process through AssetWorks. However, the Fleet Division developed a new process to receive orders via email in PDF form rather than requiring hard copy. An Equipment Mechanics Assistant, also known as Service Advisor, is responsible for uploading work orders electronically. The Service Advisor is also available to greet and help customers with electronic requests at the Central Service Yard.
#20-02 Fleet Maintenance and Operations
#07 To enhance performance monitoring and inform resource allocation decisions, Public Works’ Fleet Division should develop internal performance measures and reports to monitor availability of specific assets at the department level.

PW Partly Implemented
Public Works reports it is in the final stages of development with its asset management vendor for an analytics module for production. Once completed Fleet will reach out to department contacts to set up access and training within the new module. Target Date: Jul-2023 (Delayed From: Jan-2023)
#20-02 Fleet Maintenance and Operations
#08 To enhance accountability and transparency, Public Works’ Fleet Division should develop and report on performance measures on work order timeliness.

PW Partly Implemented Public Works reports it continues to work with its asset management vendor to create dashboards to help monitor work order timeliness. Target Date: Jul-2023 (Delayed From: March 2023)
#20-02 Fleet Maintenance and Operations
#09 To support consistent data entry and reporting, Public Works’ Fleet Division should create procedures around:
a) Classification of repair reason IDs in AssetWorks,
b) Data entry of work orders and contracted services work orders, an
c) Pulling reports on active assets, preventive maintenance compliance, vehicle utilization, work orders, and/or others as necessary.

PW Partly Implemented Public Works reports they have performed several upgrades to how labor is captured in the fleet database and finished a clean up of labor tasks. Staff is currently drafting Standard Operating Procedures (SOP) with a goal of completion by December 2023.

Target Date: Dec-2023 (Delayed From: Dec-2021)
#20-02 Fleet Maintenance and Operations
#12 Public Work’s Fleet Division should develop performance targets related to the timeliness of fleet asset purchases and actual costs of acquisitions against budgeted funds. Performance against those targets should be reported in the department’s Fleet Management Annual Report.

PW Not Implemented Public Works reports that it has been unable to start working on this recommendation because of global supply chain issues, which has resulted in nearly all vehicle purchases schedule in prior years to be carried forward to FY 2023-24. Target Date:

Jan-2024 (Delayed From: Jun-2022)
Status of Open Audit Recommendations as of December 31, 2022 56 Report and Recommendations Dept (s) Current Status Comments #20-02 Fleet Maintenance and Operations
#13 To better allocate the costs of the maintenance and replacement programs, Public Works’ Fleet Division should:
a) Track staff hours for the fleet acquisition process, and b) Charge City departments separate labor rates to recover the staff costs for (1) maintenance services and (2) acquisitions and build-outs of new or replacement assets.

PW Partly Implemented
Public Works reports it has finalized costs associated with procurement of vehicles and equipment and intends to provide data to partner departments for budget consideration in FY 2023-24. Fleet Management will notify stakeholders of additional costs for vehicle/equipment procurement. The Department has confirmed dual labor charge functionality within its database and can move forward in FY 2023-24. Target Date:

Jun-2023 (Delayed From: Jun-2022)
#20-03 Audit of Fire Development Services
#03 To make it easier for customers to navigate the permitting process, the Bureau of Fire Prevention should update the website such that information is current and organized by discipline or customer type, and create simplified, concise resources for customers, similarly by discipline or project type.

FIRE Partly Implemented The Bureau of Fire Prevention has begun working on a comprehensive website design and update organized based on discipline. Staff report that this started with updates to the landing page and information about project scoping, and that further work in coordination with the Information Technology Department is underway. Target Date:

Oct-2023 (Delayed From: Aug-2022)
#20-03 Audit of Fire Development Services
#04 The Bureau of Fire Prevention should pilot an option for customers to schedule combination inspections, such that staff trained in multiple disciplines (i.e., alarms, sprinklers, life safety) can inspect multiple systems at one time.

FIRE Partly Implemented The Bureau of Fire Prevention initiated the cross-training of existing inspectors to provide and perform multiple discipline inspections (i.e., alarms, sprinklers, life safety).

Staff are working to initiate a pilot option for combined inspection scheduling. The scheduling software has been updated to create a combination inspection option. After policies and procedures are created, staff intend to begin a 6-month pilot to determine if this is a useful customer tool. Based on discussions with project applicants, staff report that there does not appear to be a high need as sprinkler, alarm, and fire safety inspections are handled by different contractors and coordination is not standard.

However, there may be some interest in multi-discipline inspections for smaller projects such as ADUs. Target Date: Oct-2023 (Delayed From: Jun-2021) Status of Open Audit Recommendations as of December 31, 2022 57 Report and Recommendations Dept (s) Current Status Comments #20-03 Audit of Fire Development Services
#06 To ensure inspection time is used efficiently, the Bureau of Fire Prevention should develop policies to address unprepared customers, such as:
a) Incentivizing customers to cancel appointments when they are not prepared by piloting a reduced cancellation fee, and b) Clarifying expectations for when staff should leave a site that is not ready for full inspection.

FIRE Partly Implemented a) Bureau of Fire Prevention continues to use a pre-inspection procedure that evaluates site readiness and provides information on the Fire Department's "no fee" inspection cancellation. The current process allows for an applicant to cancel 48-hours prior to the inspection without a cancellation fee. The Bureau plans to pursue a pilot study to change the fee structure. Cancellations more than 5 days prior would have no fee; cancellations within 5 days to 48 hours prior would have a reduced fee. The Department intends to update their Fees and Charges schedule in FY 2023-24 to enable this study.
b) The Bureau of Fire Prevention has developed new guidelines which include requirements for when to cancel, fail, or partially pass an inspection along with a report tracking inspectors’ compliance with these guidelines. The Bureau has modified their policies and procedures with the assistance of newly available reports. Staff report using this information to assess inspector performance and implement training as necessary. Target Date: Aug-2023 (Delayed From: Jun-2021) #20-03 Audit of Fire Development Services
#07 To improve customer service, the Bureau of Fire Prevention should implement a more efficient and customer friendly scheduling process, that may include:
a) Developing an online scheduling system, potentially with limits on how far out inspections can be scheduled,
b) Posting any limits on inspection scheduling along with expected wait times (for when new inspection slots are available) online, and
c) Resolving call routing issues between the PBCE call center and Fire Development Services Division.

FIRE Partly Implemented Bureau of Fire Prevention staff have worked with the Information Technology Department to develop an online inspection scheduling platform. Staff report that the platform is in testing phase and will be fully implemented later this year. The Bureau has established inspection scheduling limits when inspection times are impacted to prevent an applicant from reserving an entire week of inspections. By March 2022, a new phone tree for the Planning, Building and Code Enforcement Department's call center was implemented. One of the goals was to streamline the process for inspection scheduling and general questions for the Bureau. Staff report that further adjustments were made to the messaging that reduced call wait times and allowed returning customers to skip the recorded messages. Target Date: Jun-2023 (Delayed From:

Aug-2022)
#20-03 Audit of Fire Development Services
#12 The Fire Department should work with the Information Technology Department to:
a) Create reports or a dashboard tool utilizing AMANDA
attempt data to show the number of plans pending review, under review, awaiting resubmittal, and staff assignments, and b) Implement a mechanism to identify unscheduled inspections within AMANDA to better track and manage inspections
scheduling.

FIRE / ITD Implemented The Bureau of Fire Prevention worked with the Information Technology Department to create plan review and inspection reports. The plan review reports enable staff to track the number of plans pending review, under review, and awaiting resubmittal, as well as staff assignment. The Inspection Report allows staff to better track and manage open inspections within AMANDA.

Status of Open Audit Recommendations as of December 31, 2022 58 Report and Recommendations Dept (s) Current Status Comments #20-03 Audit of Fire Development Services
#13 The Fire Department should revise its calculation of the fire inspection cycle time measure to reflect the time from when an inspection was requested until when the inspection occurred, and revise its target, as appropriate.

FIRE Partly Implemented The Bureau of Fire Prevention reports that staff have created an inspection schedule available to applicants requesting an inspection through the call center. Information is provided regarding the available inspection slots for a 2 week period. Staff generate a bi-weekly report that indicates the wait times for an available inspection slot, depending on inspection type (i.e., Fire Engineering, Fire Alarms, Fire Sprinklers, and Hazardous Materials). This report is based on inspection module data through AMANDA. While this information allows customers to understand wait times for inspections as they are scheduling, the Bureau has not yet updated the performance measure calculation to reflect the wait time for inspections across projects overall. The Fire Department reports that staff will meet internally to discuss and revise their performance measure methodology as appropriate in Fiscal Year 2024-25. Target Date: Jul-2024 (Delayed From: Jul-2022)
#20-03 Audit of Fire Development Services
#14 The Fire Department should review the methodology of its calculations of the number of plan reviews and the percent of time that plan check processing time targets are met, and should reset targets, as appropriate.

FIRE Partly Implemented The Bureau of Fire Prevention is working with City Information Technology Department staff to identify an existing report that lists projects that exceed processing time targets.

The objective for this is to modify the existing report to include total projects over a given time period that have met processing targets for enhanced trend analysis. These reports will provide information to better track projects that are exceeding targets and update performance measure calculations as needed. The Fire Department will meet internally to discuss and revise their performance measure methodology as appropriate in Fiscal Year 2024-25. Target Date: Jul-2024 (Delayed From: Jul-2022) #20-04 Park Maintenance
#04 To ensure appropriate allocation of capital resources for park improvements in Council Districts and help prioritize capital budgeting, PRNS should:
a) Develop separate maintenance and capital/infrastructure Park Condition Assessment scores, and
b) Use the capital/infrastructure Park Condition Assessment scores in the Construction and Conveyance Tax Fund allocation formula.

PRNS Partly Implemented The Department developed a maintenance-specific PCA process, based on Park Maintenance Standards established in April 2021, and conducted a pilot capital infrastructure assessment in 2021. The first round of data included the condition of playgrounds, sports courts, exercise equipment, and trails. Staff report that the 2021 capital infrastructure data was input into the Construction and Conveyance Tax Fund allocation formula for the 2022 allocation of funds. In 2022, additional infrastructure condition ratings were added for parking lots, synthetic turf sports fields, restrooms, and park structures, such as shade sails and picnic overheads. The data set was incorporated into the C&C distribution worksheet in FY 2022-23. The Department reports that park structures and restrooms require further analysis and were not included in the overall infrastructure Park Condition Assessment rating or C&C distribution worksheet. They report that distribution of C&C funds is now based on the condition of capital infrastructure and the condition data are used to distill priorities to advance projects to correct those identified deficiencies. Target Date: Aug-2023 Status of Open Audit Recommendations as of December 31, 2022 59 Report and Recommendations Dept (s) Current Status Comments #20-04 Park Maintenance
#05 To ensure that data collection efforts adequately meet its needs, PRNS should:
a) Refocus data collection priorities, determine short-term and long-term data collection and data analytics goals, and set clear objectives on achieving those goals,
b) Reassess the use of Infor EAM to determine if it meets those needs, and
c) Develop an ongoing training program for staff to ensure that data entry is consistent and accurate and meets its business goals.

PRNS Not Implemented The Department reports hiring a Business Intelligence Manager, filling a key position that had been vacant since the audit. Staff reviewed Infor EAM, including receiving a demonstration. The Department intends to design a comprehensive training program for its data collection software including an annual recertification program to ensure correct staff use. As of January 2023, PRNS made changes to how park maintenance work orders are scheduled (from weekly to monthly). Staff plans to report regularly on completed daily activity sheet percentage. Additionally, PRNS is writing a scope of work for a possible RFP given that Infor EAM's current contract ends in July 2024.

Target Date: Jul-2024 (Delayed From: Jan-2022)
#20-04 Park Maintenance
#07 To ensure that staffing is appropriately and equitably distributed across Park Districts, PRNS should review and realign current staffing based on workload, such as type of park, acreage, park conditions, and other factors as appropriate.

PRNS Implemented The Department reorganized the Parks Division in July 2020, which created a "Destinations, Events and Sports" unit with core maintenance teams that is separate from neighborhood and regional park maintenance. In July 2022, the Department further reorganized the Parks Division, creating centralized teams for mowing and irrigation repair work. According to PRNS, this reorganization brings together staff who perform similar duties for efficiency through economies of scale. With the centralization complete, PRNS is assigning corrective work orders and projects to centralized teams using an equity lens via the Healthy Places Index (HPI). It is also focusing staff to plan volunteer events in parks with low PCA scores and having Division-wide project days to accelerate progress on low-scoring areas/amenities. Staff reports that it will continue to analyze park maintenance asset and performance data, beyond acreage and amenities, to evaluate future changes to the service delivery model. #20-04 Park Maintenance
#09 PRNS should develop a formal process to track and reconcile its larger equipment and vehicles and improve internal coordination of vehicle purchases and asset management.

PRNS Partly Implemented As part of the FY 2022-23 Adopted Operating Budget, the Department added an Automotive Equipment Specialist to coordinate the Department’s equipment and vehicle fleet tracking, purchasing, and oversight. The Department reports drafting a standard operating procedure (SOP) for tracking and reconciling vehicles and large equipment. They expect to finalize the SOP by end-of-year 2023. To improve vehicle purchasing coordination and asset management, PRNS also has created a monthly Fleet Committee comprised of stakeholders from all sections of PRNS. Target Date:

Dec-2023 (Delayed From: Jun-2022)
Status of Open Audit Recommendations as of December 31, 2022 60 Report and Recommendations Dept (s) Current Status Comments #20-04 Park Maintenance
#11 To reduce travel time, PRNS should reassess routes with consideration for traffic peak times, park locations, and staffing.

PRNS Partly Implemented Department staff are coordinating with staff in the Department of Transportation to obtain average daily traffic data to plan routes according to local traffic patterns, and continue looking to software solutions for route optimization in light of existing resources. To reduce drive times, PRNS is working to improve the small park yard in Overfelt Gardens Park so it can accommodate staff and equipment for the Park District that serves portions of North and East San Jose. The Department currently estimates this Park District will move into the Overfelt Gardens Park maintenance yard, and out of the Central Service Yard, by June 2023. PRNS continues to explore other opportunities to reduce drive time, such as potential joint use agreements with school districts. Target Date: Jul-2023 (Delayed From: Dec-2021) #20-04 Park Maintenance
#13 PRNS should assess language access needs for parks in areas with higher concentrations of limited English speaking households and provide information and resources in multiple languages in those areas.

PRNS Partly Implemented The Department reports that new park signs in every upcoming capital project have multilingual text in English, Spanish, Vietnamese, and Chinese in accordance with the newly-updated City Policy Manual. Worn out signs and other park materials are also being updated in multiple languages upon request through the Department’s communications team, on an ad hoc basis. The Department reports that fully assessing language access needs and replacing signage for parks in areas with high concentrations of limited English speaking households may require dedicated funding.

Target Date: Jun-2023
#20-05 Development Partners’ Work-in-Progress Reserves
#01 To better assess workload and resources, Planning, Building and Code Enforcement’s Planning Division should develop and implement procedures to track the work in progress on current development projects, based on staff hours worked, milestones, or some other metric.

PBCE Partly Implemented PBCE reports the Planning Division has created the structure and requirements for the work in progress report but continued staffing limitations has paused the development of this report. With the completion of other information technology projects, the expectation is that this work could resume in FY 2023-24. Target Date: Oct-2023 (Delayed From: Sep-2021)
#20-05 Development Partners’ Work-in-Progress Reserves
#02 To better assess workload and resources, Public Works Development Services Division should develop and implement procedures to track the work in progress on current development projects, based on staff hours worked, milestones, or some other metric.

PW Partly Implemented Public Works has developed procedures for time tracking in AMANDA for engineering and inspection staff, and time tracking and data collection is ongoing. The Department has begun monitoring and reporting from this time tracking, and intends to correlate the time tracked with funds spent. Public Works intends to continue to coordinate between departments and development milestones to estimate current work in progress. Target Date: Jun-2023 (Delayed From: Jun-2020)
#20-05 Development Partners’ Work-in-Progress Reserves
#04 To ensure that the Development Partners have adequate funding to support their development work, Public Works, the Fire Department, and Planning, Building and Code Enforcement should work with the Budget Office and the City Attorney’s Office to develop reserve policies or guidelines around the appropriate uses of funds, including work-in-progress reserves.

CMO / PW
/ PBCE /
FIRE /
CAO
Partly Implemented The Administration has made progress by creating individual budgeted funds for each of the development fee programs. This recommendation is partly implemented because the Administration has not implemented a new process to account for the work-in-progress reserves.  The City Manager’s Budget Office, Finance Department, City Attorney’s Office, and the Development Services partners plan to meet to discuss and develop a process following the development of work-in-progress reports from Planning, Public Works, the Fire Department, and the Finance Department. Target Date: Oct-2023 (Delayed From: Sep-2021)
Status of Open Audit Recommendations as of December 31, 2022 61 Report and Recommendations Dept (s) Current Status Comments #20-05 Development Partners’ Work-in-Progress Reserves
#05 To properly account for development fee revenues, the Finance Department should work with the City’s external financial auditor to determine the proper accounting treatment of development fee revenues that have been collected for projects still in progress.

FIN Partly Implemented Progress has been made on the accounting treatment for work-in-progress Development Fees, but completion of this recommendation is dependent on the completion of recommendations 1, 2, and 3 from this audit. Following the development of the work-in-progress reports for the Development Services partners, the Finance Department will be able to make progress on implementing the new treatment. Target Date: Dec-2023 (Delayed From: Dec-2021)
#21-01 Police Staffing, Expenditures, and Workload
#02 To optimize police staffing, the Police Department should include an analysis of alternative schedules either in its current redistricting work or in a separate study, and report to the City Council on the results of the studies.

PD Partly Implemented The Department issued an RFP for consultant services to start the analysis for redistricting and intends to include the analysis of alternative work schedules based on redistricting recommendations as part of this process. Target Date: Jun-2024 (Delayed From: Jun-2023)
#21-01 Police Staffing, Expenditures, and Workload
#03 To determine the most suitable approaches for responding to certain types of calls, the Police Department should:
a. Begin tracking calls that may benefit from an alternative response, such as incidents involving individuals experiencing homelessness or individuals with disabilities.
b. Determine whether some of the responses can be diverted to non-sworn staff or coordinated with other City departments or agencies.

PD Partly Implemented The Department reports that it implemented a technology solution to track calls for service related to unhoused individuals and those with perceived disabilities. Once the data for one year is available, the Department plans to analyze and evaluate it further. Target Date: Jun-2023
#21-01 Police Staffing, Expenditures, and Workload
#04 To ensure that targets for community policing address Council and community priorities, the Police Department should develop a long-term community policing strategy that describes how performance targets address those priorities and work with the City Administration to identify consistent sources of funding for priority community policing positions, such as foot patrol.

PD Not Implemented The Department reports that it plans to evaluate community policing opportunities through a consultant (which has not currently begun). Target Date: Jun-2024 (Delayed From: Jun-2023)
Status of Open Audit Recommendations as of December 31, 2022 62 Report and Recommendations Dept (s) Current Status Comments #21-01 Police Staffing, Expenditures, and Workload
#05 To limit the risk of fatigue and more evenly distribute overtime hours across the department, the Police Department should:
a. Enforce existing limits on total overtime hours worked in a day, week, and year, including which types of overtime can be worked beyond these limits.
b. Update eResource to ensure all prescheduled and biddable overtime assignments are captured in the system.
c. Develop a policy to address frequent violations of Duty Manual specified overtime weekly limits.

PD Partly Implemented On May 19, 2021, the Department issued Memorandum #2021-015 titled “Overtime Controls.” This memorandum limited overtime to that which is absolutely mandatory and unavoidable. The memorandum further clarified that no discretionary overtime would be allowed and that all overtime is subject to management review. All Captains and Division Managers are required to submit a memorandum quarterly to the Chief Executive Officer justifying the use of overtime. The Department has updated eResource to include most biddable and prescheduled overtime and intends to continue to update it on an ongoing basis. However, the Police Department's overtime expenditures continue to be high and were over $47 million in FY 2021-22. Overtime hours worked also continue to be high--over 500,000 hours. We will continue to follow- up to determine whether the new controls appropriately address use of overtime above allowed limits and duty manual violations. Target Date: Dec-2023 (Delayed From: Jun- 2022)
#21-01 Police Staffing, Expenditures, and Workload
#06 To ensure that supervisory staff can better assess the purpose and appropriateness of overtime use, the Police Department should:
a. Clearly define types of overtime considered mandatory and discretionary, including when follow up and report writing should be conducted on overtime.
b. Develop guidelines for documenting Captain approval of discretionary overtime.
c. Update internal procedures and train staff on how to log discretionary, mandatory, or voluntary overtime type codes in their timecards.

PD Partly
Implemented
-
Priority
The Department issued a memo, Memo #2021-015, which outlines overtime controls for the Department and new requirements that include Captains and Division Managers to report out on the use of overtime in their division on a quarterly basis. The Department states that it will continue to review overtime, including how it is being used, review its overtime policies in consideration of the current staffing issues, and develop a plan that considers policy changes, clarification of discretionary and mandatory overtime, consistent messaging, training for staff, and management review.

The Department also reports that it will be developing timecard training for line staff and supervisors on how to log discretionary, mandatory, or voluntary overtime type codes in their timecards, however the expectation is that this will be managed by line supervisors. Target Date: Jun-2023 (Delayed From: Jun-2022) Potential Monetary Benefit: With greater controls and approval over overtime for discretionary time (e.g., admin, report writing, training, and follow up), we estimate savings of $1,147,350 if such overtime was reduced by 7.5 percent. #21-01 Police Staffing, Expenditures, and Workload
#07 To ensure transparency, the Police Department should clarify which overtime assignments can be worked for pay or compensatory time and review and update the Memorandum of Agreement and/or General Orders, as appropriate.

PD Partly Implemented
(Subject to meet
and confer)
The Department reports that all paycars have been updated in eResource and that it will update its annual overtime memorandum to include regularly used paycars. Target Date: Jun-2023 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of December 31, 2022 63 Report and Recommendations Dept (s) Current Status Comments #21-01 Police Staffing, Expenditures, and Workload
#08 To enhance budgetary transparency and increase the controls surrounding compensatory time liability, the Police Department should pursue at least one or a combination of the following:
a. Work with the Budget Office to develop a reserve for future compensatory time liability, similar to sick leave pay out liability. b. Regularly report in the bimonthly financial reports to the Public Safety Finance and Strategic Support Committee, the Mid- Year Budget Review, and/or the City Manager’s Annual Report: (1) the amount of overtime expenses attributable to staff that have reached the 480-hour compensatory accrual limit, (2) number of individuals who have reached both the 480-hour and 240-hour limits, and (3) the total compensatory time liability.
c. Assess options to prioritize the use of compensatory time over vacation leave.

PD Implemented The compensatory time liability and the number of personnel with compensatory time of between 240 and 480 hours and staff that have reached the maximum allowable 480 hours is reported in the Bi-monthly Financial Report to the Public Safety, Finance and Strategic Support Committee. This report also documents the excess compensatory time payouts to personnel that have 480 hours of compensatory time balances. The City and the POA also agreed to changes in the use of compensatory time balances.

These changes require that if an employee's compensatory time balance reached 300 hours, the employee has to first use compensatory time for time off until the employee's compensatory time balances are below 240 hours. For these reasons, we consider this recommendation implemented; however, controlling the growth in compensatory time is important and we encourage the Administration to continue monitoring this area.
#21-01 Police Staffing, Expenditures, and Workload
#09 To supplement sworn police services and manage overall workload challenges in the department, the Police Department should:
a. In the context of the overall budget, add more Community Service Officers (CSOs) to address Priority 3 and 4 incidents, and

b. Develop guidelines to ensure more equitable distribution of CSOs across districts, such that districts with higher workloads receive appropriate coverage. This may include redistributing workload and assignments as vacancies occur.

PD Not Implemented The Department has not begun work on this recommendation. Target Date: Jun-2023 Potential Monetary Benefit: We estimate savings of $751,500 if CSOs responded to additional calls rather than sworn officers using overtime. This is dependent on future hiring of additional CSOs.

Status of Open Audit Recommendations as of December 31, 2022 64 Report and Recommendations Dept (s) Current Status Comments #21-01 Police Staffing, Expenditures, and Workload
#10 To better align Department call priorities with CSO work, the Police Department should update its Duty Manual to:
a. Reassess its priority list of CSO-dispatchable calls and determine how to better utilize CSOs to address those priorities. b. Include common types of calls not currently listed in the Duty Manual, such as “Suspicious Vehicles” and “Expired Registration”.
c. Develop a strategy for CSO involvement in community policing, as described in the SJPD Duty Manual.

PD Not Implemented
(Subject to meet
and confer)
The Department has not begun work on this recommendation. Target Date: Jun-2023 #21-02 Advocate Referrals
#04 To better understand the timeliness of referrals and utilization of advocacy services, as well as to further ensure survivors who received a referral are accounted for, the Police Department should:
a) Work with the YWCA to determine what data should be
regularly provided to the Department for domestic violence and sexual assault survivors, as well as data on the high-risk response team. This could include data on timeliness, utilization, demographics, lethality assessment score, and services provided, and
b) Ensure the YWCA is provided a report of all domestic violence and sexual assault survivors who consented to a referral on a monthly or other regular basis.

PD Implemented a) YWCA, in collaboration with the SAIU, created an online reporting and exchange of information tool. SAIU and FVU now use this tool for advocate referrals. YWCA sends SAIU and FVU monthly reports of the referrals made, which includes the number of survivors served by the YWCA and services provided, some demographic information about the survivors, and the timeliness of YWCA responses. Additionally, FVU receives regular reports on the High-Risk Response Team's activity from YWCA as well as the timeliness of the YWCA advocate responses.
b) FVU sends a monthly list of survivors who answered “Yes” to the question of whether they can share the survivor’s information with FVU's YWCA advocate. This list serves as a check to confirm that reports concerning all survivors are forwarded to YWCA if the survivor wishes. This part of the recommendation is completed through SAIU’s use of the referral tool and FVU’s monthly list that it sends to YWCA. #21-03 Real Estate Services
#01 To better manage the City’s real estate assets, the Real Estate Services Division should work with City departments to compile a comprehensive list of real estate assets that includes department ownership and intended or actual use of the property.

OEDCA Not Implemented According to Real Estate Services (RES), they have coordinated with the Information Technology Department (ITD) and partner departments, including DOT, Finance, PRNS, Housing, ESD, and Public Works. to identify needs for an enterprise solution.

This work was presented to the Smart Cities Committee. RES is working with Purchasing to put a bid out to procure the software. The Finance Department currently estimates implementation of the software within ten months, or January 2024. This software will give RES the foundation to compile a comprehensive database of the City's real estate assets, including department ownership and uses. Target Date: Jan- 2024 (Delayed From: Dec-2022)
Status of Open Audit Recommendations as of December 31, 2022 65 Report and Recommendations Dept (s) Current Status Comments #21-03 Real Estate Services
#02 The Real Estate Services Division should work with the Information Technology Department, the Finance Department, and other City departments to implement a database platform to better manage the City’s real estate assets that includes:
a) Property management information such as lease terms, payments, and related information,
b) Property-related agreements or other relevant information to identify ownership or management responsibilities, nd
c) Any other information that the Real Estate Services Division deems necessary.

This software will give RES the foundation to compile a comprehensive database of the City's real estate assets, including department ownership and uses. Target Date: Jan- 2024 (Delayed From: Dec-2022)
#21-03 Real Estate Services
#03 The Real Estate Services Division should work with other City departments to identify all vacant lands within the City’s real estate portfolio, and report on that land and their intended uses to the City Council on an annual basis.

OEDCA Not Implemented Real Estate reports that the database software platform referenced in recommendations #1 and #2 can be developed in a way that stores the information needed for annual reporting on the City's vacant land inventory. Target Date: Jan-2024 (Delayed From: Dec-2022)
#21-03 Real Estate Services
#04 The Real Estate Services Division should work with the multiple departments involved in maintenance of City properties and the Information Technology Department to:
a) Identify business process and service integration to ensure the data in its asset management software can be cross- referenced with other departments’ databases, and
b) Coordinate with other departments to ensure the City’s vacant properties are provided with ongoing maintenance.

OEDCA Not Implemented Real Estate reports that after it has completed the buildout of the database referenced in recommendation #2, Real Estate plans to engage the Information Technology Department to build the system in a manner that allows for optimal standardization of data across City departments. Once Real Estate’s software database is established, Real Estate plans to work with other departments to standardize data and facilitate cross-referencing between departments. Target Date: Jan-2024 (Delayed From: Dec- 2022)
#21-03 Real Estate Services
#05 To improve San José residents’ access to cellular networks, after the Real Estate Services Division completes the market rate analysis of its telecommunication fees, it should bring recommendations for a new fee schedule to the City Council for approval.

OEDCA Partly Implemented Real Estate reports it has completed a market analysis of Telecommunications facilities and is preparing to take an updated schedule to Council. Real Estate reports coordinating with the Office of Civic Innovation and other City staff to inform the best way to structure the new fee schedule and incentivize digital inclusion benefits. Target Date: Jun-2023 (Delayed From: Jul-2022)
Status of Open Audit Recommendations as of December 31, 2022 66 Report and Recommendations Dept (s) Current Status Comments #21-03 Real Estate Services
#06 In order to ensure compliance with California’s Surplus Land Act, the Real Estate Division should work with the City Attorney’s Office to update Council Policy 7-13 and the San José Municipal Code (Chapter 4.20) and bring to the City Council for approval.

OEDCA /
CAO
Implemented In November 2022, the Council adopted amendments to Council Policy 7-13 and Municipal Code 4.20. These amendments were developed in coordination with the City Attorney’s Office and eliminated inconsistencies between San Jose’s ordinance and policies and California’s Surplus Land Act.
#21-04 Code Enforcement Management Controls
#01 The Department of Planning, Building and Code
Enforcement should revise the Code Enforcement Division’s incident policy to include direction around courses of action (e.g., temporary reassignment, partner-use, other actions) to address instances such as:
a) extortion or bribery attempts made to staff,
b) serious allegations and complaints, or
c) other instances deemed appropriate by the
Administration.

PBCE Not Implemented Code Enforcement reports that it is in the process of drafting an update to its incident policy. While these types of instances are rare, the Department of Planning, Building and Code Enforcement understands the potential, inherent risks associated with Code Enforcement work and recognizes the importance of providing formal direction to staff on how to appropriately address criminal and/or serious allegations or complaints of employee misconduct should they occur. Target Date: Apr-2023 (Delayed From: Jun- 2022)
#21-04 Code Enforcement Management Controls
#03 To enforce the Massage Ordinance permitting requirements, the Administration should:
a) Create a roster of massage businesses based on active Business Tax Certificates and/or the list of certified massage therapists under the California Massage Therapy Council, and procedures to regularly update the roster, and
b) Based on the roster of businesses, implement an
outreach program to inform and educate massage businesses on the Massage Ordinance.

CMO Not Implemented The Police Department receives data from the City of San José Business Tax Certificate database, however staff need to complete additional work to identify potentially subject businesses. Once complete, Code Enforcement and the Police Department plan to coordinate work to expand outreach efforts to the community, including but not limited to: updating departmental websites, creating a program brochure in coordination with departmental public information officers, creating an informational letter to be sent with permit renewal invoices, and holding informational workshops. Target Date: Dec-2023 (Delayed From: Jul-2022) Potential Monetary Benefit: During the audit, we found over 200 businesses with business tax certificates without massage permits. We estimated initial applications for unpermitted massage businesses would generate $500,000 in permit fees and $280,000 in ongoing renewal fees.
#21-04 Code Enforcement Management Controls
#04 To ensure massage businesses are aware of the permit and other requirements of the massage program:
a) The Administration should create and post on the City’s website multi-lingual informational brochures that provide information regarding the massage program goals, inspection process, and penalties or fines, and
b) The Police Department should update the massage
permit application to include details on Code Enforcement’s role and inspection expectations.

CMO / PD Implemented The Police Department posted a multilingual informational brochure that specifies the goals, process, and potential penalties associated with massage permit inspections. It also describes the role of Code Enforcement and sets high-level expectations on inspections. The brochure is posted on the Police Department's website and linked to the online permit application form.

Status of Open Audit Recommendations as of December 31, 2022 67 Report and Recommendations Dept (s) Current Status Comments #21-04 Code Enforcement Management Controls
#05 To ensure massage businesses renew their massage permits timely, the Police Department should establish a procedure for ensuring permitted businesses are notified when they need to renew their massage permit and the consequences of not renewing their permit.

PD Not Implemented The Police Department reports that Permits Unit staff are currently building out an online permit form and have submitted a purchase request for software to enable notifications to be sent to permit holders regarding the expiration of their permits. Staff anticipate implementation in December 2024, following a competitive procurement process. Target Date: Dec-2024 (Delayed From: Dec-2022) Potential Monetary Benefit: At the time of this audit, we estimated initial applications for unpermitted massage businesses would generate $500,000 in permit fees and $280,000 in ongoing renewal fees.
#21-04 Code Enforcement Management Controls
#07 To clarify the purpose and responsibilities in the massage program, the Police Department and Department of Planning, Building and Code Enforcement should align on and create guidance through a Memorandum of Understanding or other means of documentation, to include:
a) Massage permit program goals;
b) Roles and responsibilities of the different Police
Department units and Code Enforcement;
c) Expectations for code inspections upon application, renewal, and/or regular compliance;
d) Protocols for how and when the Vice Unit should inform the Code Enforcement inspector and Code supervisor of
investigatory activities; and
e) Criteria and procedures for case referral between Code Enforcement, the Vice Unit, and the Permits Unit for businesses not in compliance with the Massage Ordinance or where there are indications of criminal activity.

PBCE / PD Not Implemented
-
Priority
Staff in Planning, Building and Code Enforcement (PBCE) drafted a joint work plan to address the audit recommendations and related direction from Council, including the creation of an MOU or other means of documentation to outline massage program goals and departmental responsibilities between PBCE and the Police Department.

Staff report that PBCE is in the process of drafting the MOU for Police Department review before finalizing and implementing. The massage program in Code Enforcement remains on hold due to staff vacancies. Target Date: Dec-2023 (Delayed From: Aug- 2022)
#21-04 Code Enforcement Management Controls
#08 To mitigate risk associated with the massage program, the Police Department and the Department of Planning, Building and Code Enforcement should consider:
a) Backgrounding Code Enforcement inspectors assigned to the massage program, at a level determined appropriate by the Police Department’s Background Unit, and/or
b) Implementing a policy for partner use for complaint-based massage inspections and other non-routine, high-risk inspections (e.g., inspections of unpermitted businesses) for the massage program.

PBCE / PD Partly Implemented Planning, Building and Code Enforcement (PBCE) acquired funding in the FY 2022-23 Adopted Operating Budget for a Code Enforcement Inspector position to serve as a back‐up and partner for complaint‐based massage inspections and other non‐routine, high‐risk inspections for the massage program. However, due to high vacancies, staff report that the position has not yet been filled and that the massage program remains on hold pending implementation of this and other audit recommendations and controls.

Code Enforcement reports that it has been conducting an ongoing recruitment effort and intends to restart the massage program in mid to late Spring 2023. Target Date:

Apr-2023 (Delayed From: Aug-2022)
Status of Open Audit Recommendations as of December 31, 2022 68 Report and Recommendations Dept (s) Current Status Comments #21-04 Code Enforcement Management Controls
#09 To allow the Department of Planning, Building and Code Enforcement to track the permit status of massage businesses, the Police Department should grant access to the roster of permitted massage businesses to Code Enforcement.

PD / PBCE Not Implemented Staff report that SJPD is in the process of updating its massage business program roster and that the Permits Unit and Code Enforcement will receive access after completion. Target Date: Dec-2023 (Delayed From: Jul-2022) #21-04 Code Enforcement Management Controls
#11 To aid in evaluating program performance, the Department of Planning, Building and Code Enforcement should:
a) Establish performance measures and targets for special programs, like cannabis and massage, that relate to program goals (e.g., annual inspection targets, percentage of completed inspections based on the roster, percentage of businesses brought into compliance),
b) Either create system-based reports for special program performance measures or establish a process to check inspector- reported data for accuracy, and
c) Report performance measures to the appropriate City Council committee.

PBCE Not Implemented Code Enforcement reports that staff have begun revising performance measures for the massage and cannabis programs. Upon completion of recommendations #3, #7, and #9, which relate to massage program goals and the roster of massage businesses in San José, the Department plans to further revise program performance measures and inspection targets for the massage program. Code Enforcement also plans to develop protocols for monthly system‐based reporting to be completed by the program supervisor. The Administration will evaluate the appropriate Council Committee to report Code Enforcement's massage program performance measures (NSE or PSFSS) and will add the update to that committee’s work plan. Target Date: Jul-2023 #21-04 Code Enforcement Management Controls
#12 To better set expectations for staff and address potential risks in its programs, the Department of Planning, Building and Code Enforcement should:
a) Create and update Code Enforcement policies using a risk-based approach to identify where programs may not meet objectives, for example, incorporating policies or guidance for elements of supervisory review, documentation for deviating from policies, and for special programs,
b) Combine the policies into a comprehensive digital
manual, and
c) St a schedule for periodic review of policies and
procedures to update as needed.

PBCE Partly Implemented Staff worked with a Fuse Fellow to create a comprehensive department digital policy manual of all policies and procedures. The manual is located on the Department’s SharePoint site and includes a department policy for the periodic review of policies.

Staff report the manual launched in October 2022 for all PBCE staff and has been fully implemented for staff use. Code Enforcement reports staff are in the process of systematically reviewing all Division policies and procedures to ensure they reflect current practices and expectations, that staff are informed of expectations, and to create new policies as appropriate. Staff anticipates completing the review of the approximately 90 existing policies and procedures by October 2023, with priority towards updating policies described in the audit. Target Date: Oct-2023 (Delayed From: Nov-2022)
#21-04 Code Enforcement Management Controls
#13 To promote consistent case review practices, the Department of Planning, Building and Code Enforcement should develop training for new Code Enforcement supervisors.

PBCE Not Implemented Code Enforcement reports that the development of a new comprehensive supervisor training program has been delayed due to a focus on filling inspector vacancies and training new inspectors. Staff plan to develop the supervisory training program following the recruitment of a new supervisor, with completion anticipated in April 2023.

Target Date: Apr-2023 (Delayed From: Apr-2022)
Status of Open Audit Recommendations as of December 31, 2022 69 Report and Recommendations Dept (s) Current Status Comments #21-04 Code Enforcement Management Controls
#15 The Department of Planning, Building and Code
Enforcement should revise Code Enforcement’s “attempt to contact” letter template to include authority, complaint description, and purpose of inspection prior to inspection and, as appropriate, supervisors’ contact information for questions or concerns.

PBCE Partly Implemented
The "attempt to contact letter" is a standard, template letter used by Code Enforcement to contact a responsible party (i.e., property owner, tenant, or property manager) when other attempts to contact the responsible party, such as an in-person inspection, email, or phone call, have been unsuccessful. As recommended, the Code Enforcement Division revised the "attempt to contact letter" to include enforcement authority per the municipal code, complaint description, and, an option to add supervisors' contact information, as appropriate, for questions or concerns, and the purpose of the letter or inspection. The revised letter has been added to the Code Enforcement Case Management System and staff have been advised of the change, however the Division is working to fix an issue to generate the letter from the system. Target Date: Apr-2023 (Delayed From: Jun-2022)
#21-04 Code Enforcement Management Controls
#17 Department of Planning, Building and Code Enforcement should develop targets and track Code Enforcement program performance to:
a) Establish expectations for inspector activity and
performance and incorporate into regular performance evaluations (e.g., time to case closure based on type of violation and number of open cases).
b) Rebalance workloads or add resources, as needed.

PBCE Not Implemented According to the Department, Code Enforcement plans to research and review historical and current data, reports, and timelines to revise or update current case response times, case closure timelines by violations type, and manageable caseload level, as appropriate, to develop and establish clear and reasonable expectations for inspector activity and performance. The updated expectations and performance standards will be incorporated into staff performance evaluations. Due to ongoing vacancies, staff report that progress has been slow. Staff report that focus over the past 16 months has been recruitment to fill inspector vacancies and add staffing to address the case backlog. As Division leadership review and make updates to the policies and procedures, they anticipate advising staff of the updates to the policies and procedures and their use as criteria in future performance evaluations. Staff will continue to explore strategies to rebalance workloads, utilize resources more efficiently, and add staffing. Target Date: Sep-2023 (Delayed From: Dec-2022) #21-04 Code Enforcement Management Controls
#18 The Code Enforcement Division within the Department of Planning, Building and Code Enforcement should complete all outstanding performance evaluations and set a schedule for regular evaluations going forward.

PBCE Partly Implemented Code Enforcement has made progress in the performance evaluation process. Staff report that 84 percent of staff received an appraisal in 2022, but that due to new employee onboardings and other transitions, the Division has appraisals that are coming due, due, or overdue per Human Resources tracking. Staff report that they are in the process of developing an annual performance evaluation schedule for supervisors and managers to ensure all required evaluations are completed and timely going forward. Target Date: Apr-2023 (Delayed From: Jun-2022) Status of Open Audit Recommendations as of December 31, 2022 70 Report and Recommendations Dept (s) Current Status Comments #21-04 Code Enforcement Management Controls
#19 To align performance evaluations with Division goals, the Department of Planning, Building and Code Enforcement should review and revise its employee expectations and incorporate into Code Enforcement performance evaluations based on objective criteria and measurement (e.g., inspector use of photos, consistency in case notes; supervisor quality of supervisory case review).

PBCE Not Implemented Code Enforcement reports that staff planned to complete the revision of employee expectations by October 2022, for use as criteria in performance evaluations beginning in FY 2022-23. However, Code Enforcement reports that the revision of employee expectations has been delayed as staff is working to systematically review all policies and procedures to ensure they reflect current practices and expectations, and that staff are informed of the expectations for inspector activity and performance. As updates to the policies and procedures are completed, Division leadership plans to advise staff of the updates and their applicability as criteria for future performance evaluations.

Target Date: Jul-2023 (Delayed From: Oct-2022)
#21-05 Municipal Water Billing and Customer Service
#01 To improve the City’s leak notification process, the Environmental Services Department and the Information
Technology Department should, in coordination with the City Attorney’s Office and in accordance with the City’s Digital Privacy Policy:
a) Develop a process to collect the email addresses and mobile phone numbers of existing customers, and
b) Enroll customers to receive automated leak notices via text, voice message, mail, and/or email through WaterSmart or another mechanism as appropriate, while providing customers the option of opting-out from receiving such notices.

ESD / ITD /
CAO
Partly Implemented The Environmental Services Department (ESD) began implementing a marketing campaign that encourages customers to enroll in the WaterSmart Program, and update their contact information in their WaterSmart account. ESD reports that social media posts began running December 2022 and continued until February 2023. Email leak notifications are sent to customers (whether or not the customer has enrolled in an online WaterSmart account) as long as an email address is on file within CIS (the City's utility billing system) and/or WaterSmart. ESD completed a review to ensure the program comports with the City’s Information and Systems Security Policy (1.7.6) and Digital Privacy Policy (0-49), and completed the Privacy Initiative Form which was approved by the Information Technology Department's Cybersecurity team. Target Date: Jun-2023 (Delayed From: Jun-2022)
#21-05 Municipal Water Billing and Customer Service
#03 To help manage meter investigation service orders, the Environmental Services Department should:
a) Develop a process for periodically assessing pre-exception parameters using data around past results and staff insight, and b) Adjust pre-exception parameters to better identify potential water leaks.

ESD Partly Implemented According to the Department, staff drafted a process and schedule to periodically review CIS parameters and are on schedule to complete this recommendation by June 2023. They also plan to complete a privacy review with the Digital Privacy Office.

Target Date: Jun-2023 (Delayed From: Jun-2022)
#21-05 Municipal Water Billing and Customer Service
#04 To streamline the service order process, the Environmental Services Department, in coordination with the Information Technology Department, should update the process to enable staff to coordinate service orders electronically.

ESD / ITD Not Implemented According to the departments, staff investigated using the Business Process Automation system to manage service orders with online forms. However, according to the departments, there is not a current method to automatically sync data between CIS (the City's utility billing system) and an online form without significant investment that department teams are evaluating. Staff plans to reach out to the vendor to confirm costs of upgrading CIS and adding interface options. Target Date: Dec-2023 (Delayed From: Jun-2022)
Status of Open Audit Recommendations as of December 31, 2022 71 Report and Recommendations Dept (s) Current Status Comments #21-05 Municipal Water Billing and Customer Service
#05 To better assess performance, the Environmental Services Department should revise the performance measure methodology for “% of customer service requests handled within 24 hours” to use operational data instead of customer survey data.

ESD Not Implemented The purpose of this recommendation is to accurately measure the timeliness of customer service requests. According to the Environmental Services Department, progress on this recommendation is contingent upon completing an upgrade to CIS (the City's utility billing system). Target Date: Dec-2023 #21-05 Municipal Water Billing and Customer Service
#07 The Finance Department and the Environmental Services Department should increase access to Municipal Water-related materials through:
a) Identifying materials that could benefit from translation into commonly spoken languages in San José and making the
translations available (e.g., late payment notices, the Low Income and Vulnerable Designations application form, and/or online customer platforms such as E-Bill Express).
b) Providing translated notes in commonly spoken languages on materials such as forms and bills, sent to customers with instructions on how to obtain translated versions or information.

FIN / ESD Partly Implemented The Low Income and Vulnerable Designations form has been translated and is available for customer use. The Late Payment Notice was also updated and translated into several languages. According to the departments, the E-Bill Express platform does not have the capability to provide language translations of the user interface. Staff is finalizing remaining documents for improved clarity: Bill Appeal Form, Third Party Authorization Form, Bill/Back of Bill. Staff will complete Recommendation #11 prior to translations of the Bill/Back of Bill, and will translate remaining documents and post them all online. Target Date: Jun-2023 (Delayed From: Jun-2022) #21-05 Municipal Water Billing and Customer Service
#09 To improve accessibility for customers to view and pay their bills, the Finance Department should work with the Information Technology Department, to:
a) Enable Muni Water customers to view detailed
statements online, and
b) Provide customers the option to receive electronic
statements.

FIN / ITD Not Implemented The Finance Department reports that is has contacted its bill print provider and online payment collection provider to discuss potential online billing and payment options.

Target Date: Jun-2023
Potential Monetary Benefit: Paper bills are estimated to cost about $100,000 to print and mail annually for Muni Water’s 26,000 accounts.
#21-05 Municipal Water Billing and Customer Service
#10 The Finance Department should update the “How to Read Your Bill” instructions to align with the current payment/rate structure and include explanations for the additional charges line items (i.e., late payment charges, returned check).

FIN Partly Implemented The Environmental Services Department (ESD) reports that is collaborating with the Finance Department to update the "How to Read Your Bill" instructions. ESD reports that once the instructions are updated, they will be translated into several languages and posted on the City's website. Target Date: Jun-2023 (Delayed From: Dec-2022) Status of Open Audit Recommendations as of December 31, 2022 72 Report and Recommendations Dept (s) Current Status Comments #21-05 Municipal Water Billing and Customer Service
#11 To reduce the likelihood of late payments, the Finance Department and the Environmental Services Department should include consistent information on the bill, Muni Water’s website, and the City’s Pay My Bill webpage informing customers of the consequences of missed/late payments, including noting
processing delays.

FIN / ESD Partly Implemented The Environmental Services Department (ESD) reports that it is collaborating with the Finance Department, the Call Center, and the City Manager's Office (CMO) to ensure consistent messaging on bills and websites. The CMO Webmaster will assist in updating City’s Pay My Bill webpage and assist, as needed, the ESD Web Manager with Muni Water page updates once messaging is completed. Target Date: Jun-2023 (Delayed From: Dec-2022)
#21-05 Municipal Water Billing and Customer Service
#13 To help alleviate the financial burdens of significant outstanding balances owed by Municipal Water customers, the Administration should implement a combination of strategies, including:
• Automatically enroll customers with overdue balances into payment plans when the moratorium ends,
• Conduct outreach to customers about the Low Income and Vulnerable designation service options, potentially leveraging the City’s communications outreach and other existing efforts (e.g., San José Clean Energy, CA Rental Relief),
• Work with the City’s Budget Office to explore potential sources of ongoing funding for customer assistance, including excess late payment charges, and/or
• Develop a process to distribute aid from Federal and State funding sources, such as from the Low Income Household Water Assistance Program (LIHWAP), to qualifying households and align the Low Income thresholds as appropriate.

CMO /

ESD / FIN /
ITD
Implemented The California Water and Wastewater Arrearages Program was completed and resulted in 978 customers receiving bill credits, with a total of $541,000 in bill credits.

Though customers will not be automatically enrolled in payment plans due to resource constraints, they are offered payment plan options when contacting the Customer Contact Center (CCC) and are enrolled if they agree to the terms. The City is participating in the Low-Income Household Water Assistance Program (LIHWAP) and reports performing outreach and coordinating between Sacred Heart and water retailers to provide residents with financial assistance options. The Environmental Services Department reports that in November 2022, a bill message regarding resources to assist in bill payment were included with each bill cycle, and letters were sent to all account holders with overdue balances informing them of payment assistance options.

Status of Open Audit Recommendations as of December 31, 2022 73 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#01 To improve the coordination of reviews, the Department of Planning, Building and Code Enforcement should:
a. Develop a training plan that includes both formal and informal training options on project management, environmental review, and entitlement review, and
b. Expand the model in which planners handle both the entitlement and environmental reviews, with a division dedicated to projects with more complex environmental review.

PBCE Partly Implemented The Department of Planning, Building and Code Enforcement (PBCE) has developed a training plan. Topics include a high-level overview of the CEQA review process in San José for all Planning staff, developing a project description for Citywide and Housing projects, an overview of common exemptions, project and time management best practices, and more. PBCE has held four training sessions: CEQA Basics, Initial Study and EIR review, Exemptions, and Public Projects and Project Description Development (which included attendees from other City Departments). PBCE reports that future trainings include NEPA for Affordable Housing Projects, Project Management Best Practices, and Overview of CEQA references for Council Memos for Other City Departments. PBCE plans for training to be ongoing. Regarding part b of the recommendation, PBCE reports that starting joint project management for new planners was delayed to Q1 FY 2023-24 due to staff turnover, team transitions, and significant workload in Fall 2022. PBCE plans to expand to other planners during/after Q3 FY 2023-24. PBCE reports that training of staff (Recommendation 1.a.) will increase knowledge of CEQA for entitlement planners so they can start preparing more complex exemptions and Addendums/Determination of Consistencies. Target Date:

Dec-2024 (Delayed From: Dec-2023)
#22-02 Environmental Review for New Developments
#02 To improve the project management of environmental reviews, the Department of Planning, Building and Code
Enforcement should develop a set of procedures that includes:
a. Having regularly-held meetings with key stakeholders, b. Establishing timelines with all key milestones, and
c. Expectations on project roles and responsibilities for the environmental review planner, entitlement planner, and other City departments and teams (e.g., how project changes should be communicated, who is responsible for the overall timeline).

PBCE Partly Implemented a) PBCE developed standard operating procedures (SOPs) for environmental impact reports (EIRs), negative declarations/mitigated negative declarations, and addendums.

The SOPs include check-in expectations and recommendations at certain milestones, such as after public comments are received from the circulation of the draft EIR. Once PBCE has documented procedures for check-in meetings that occur in a more regular cadence where necessary, this part of the recommendation will be considered implemented. PBCE also reports that staff are working on SOPs for other document types and tasks (exemptions, mitigation monitoring, Habitat Conservation Plan application review, and environmental appeals). b) PBCE updated environmental review timelines and milestones included in project schedule templates and SOPs.

Staff developed templates in Excel to use for project schedule planning by staff and the Environmental Consultant. These templates include City target review times for the reviews of EIRs, MNDs/NDs, and Initial Study/Addendums. Staff are expected to share the project schedule template with consultants during scope of work review or the project kick-off meeting. c) The SOPs include the protocol for roles and responsibilities for City Staff. PBCE held training for other City Departments on information needed for an adequate project description. Forms were developed to facilitate preparing an adequate project description in order to inform and help the environmental review path for plan, regulation, and policy changes. Once the roles and responsibilities for the overall project timeline and communicating project changes is documented in procedures, this part of the recommendation will be considered implemented. Target Date: Dec-2023
Status of Open Audit Recommendations as of December 31, 2022 74 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#03 To improve performance measurement and guide project management, the Department of Planning, Building and Code Enforcement should set performance targets for environmental review, including timeliness overall and timeliness of achieving milestones, and measure performance against the targets.

PBCE Partly Implemented Staff has used existing data from AMANDA and the Environmental Project Tracking sheet to determine a baseline for total project review time by environmental document type. Staff reviewed total review time data for EIRs, MNDs/NDs, and Addendums for 2020 and 2021. In 2023, PBCE reports that staff compiled review times and hours for EIRs, MNDs/NDs, and Addendums for projects completed in 2022. PBCE reports that Environmental Review Team staff will continue tracking total review time on the completed projects page of the Environmental Project Tracking spreadsheet on SharePoint using AMANDA data. PBCE is developing a Customer Service Charter, which includes performance metrics that will be tracked. Specific performance measures proposed as part of this effort related to the Environmental Review Team include the following: 1) Number of Administrative Draft reviews completed per month; 2) Percentage of Administrative Draft reviews completed within the City's target review times; 3) Number of Major Environmental Review Documents (EIRs, MNDs/NDs, and Addendums) approved per month; and 4) Average Review Times for Major Environmental Review Documents (evaluated bi-annual and annually). PBCE reports that planners are now entering review time for key milestones into AMANDA, which is an action item in the SOPs for internal staff (Recommendation #2). As part of PBCE's Customer Service Charter effort, PBCE reports that staff are collecting data on total review times, number of Administrative Drafts reviewed, and number of Administrative Drafts reviewed within the City's target timelines. Target Date: Jun-2023 (Delayed From: Mar-2023)
#22-02 Environmental Review for New Developments
#04 To promote consistency of environmental review data entry, the Department of Planning, Building and Code Enforcement should:
a. Update and expand AMANDA guidelines and related
expectations around data entry for areas such as recording of staff hours, use of entry codes, and use of comments, and
b. Develop training for staff about the AMANDA guidelines.

PBCE Not Implemented a) PBCE reports that AMANDA 7 guidelines will be updated after updates are made to the ENV folder in AMANDA based on Recommendation #5. b) AMANDA 7 training was held for the Environmental Team in March 2022 regarding closing out the folder for the project. Training for the updated AMANDA 7 folder will occur after completion of Recommendation #5. Target Date: Jun-2024 (Delayed From: Dec-2023) #22-02 Environmental Review for New Developments
#05 To effectively track project milestones, the Department of Planning, Building and Code Enforcement should establish a mechanism for consistently capturing necessary milestone data either using AMANDA or another tool, and update appropriate guidelines as necessary.

PBCE Partly Implemented Staff is tracking key environmental review milestones on its Environmental Tracking Sheet for major projects while waiting for the update to the AMANDA 7 folder. PBCE reports that the tracking sheet is used to determine metrics for the Customer Service Charter for implementing Recommendation #3. PBCE reports that the AMANDA 7 update will require the commitment of a planner and Information Technology staff, and that this work will not be able to start until Q4 FY 2022-23 at the earliest due to staff turnover and high volume of major projects in Q1-Q3 FY 2022-23. Target Date: Jun- 2024 (Delayed From: Dec-2023)
Status of Open Audit Recommendations as of December 31, 2022 75 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#06 To make the environmental review process more
standardized and consistent, the Department of Planning, Building and Code Enforcement should update and expand relevant tools and templates for the environmental review team, as well as develop related procedures on the expected usage, including:
a. Establish a standard project schedule tracker that staff are expected to use for projects, and
b. Create additional tools and templates to support project management, such as agenda templates for meetings with different stakeholders, a consolidated list of the City’s thresholds of significance, and City resolution templates for adoption for the different types of environmental reviews.

PBCE Partly Implemented a) Staff developed templates in Excel to use for project schedule planning by staff and the Environmental Consultant, and PBCE reports that these have been posted on the Environmental Review Team SharePoint site. These templates include City target review times for the reviews of EIRs, negative declarations/mitigated negative declarations, and Initial Study/Addendums. Templates will be shared with consultants during scope of work review or the project kick-off meeting. b) Additional tools and templates to support project management are still to be developed. PBCE reports that creating comprehensive Environmental Consultant Guidelines, which will include thresholds of significance, is not achievable by City staff alone given staff turnover, workload, and competing priority projects, and that retaining an environmental consultant to assist with drafting and finalizing the guidelines is needed. PBCE reports they submitted a budget request for FY 2023-24 to retain a consultant to draft comprehensive Environmental Consultant Guidelines with thresholds of significance. If the Budget Proposal is approved for FY 2023-24, staff expects to start this work in Q1 FY 2023-24 and finish in Q3 FY 2023-24. Target Date: Jun-2024 (Delayed From: Jun- 2023)
#22-02 Environmental Review for New Developments
#07 To educate City staff about available resources and expectations for the environmental review process, the Department of Planning, Building and Code Enforcement’s environmental review team should conduct annual trainings for City staff in other departments or teams.

PBCE Partly Implemented PBCE developed a training plan and topics include a CEQA overview for external departments and Council memo citations, and focused CEQA training for departments with frequent project-level CEQA review. Trainings started on topics such as project description development and the CEQA process for projects. PBCE reports that trainings will be ongoing. Target Date: Dec-2023 (Delayed From: Jan-2023) Status of Open Audit Recommendations as of December 31, 2022 76 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#08 To better manage the work done by environmental consultants, the Department of Planning, Building and Code Enforcement should:
a. Establish project management requirements for the relationship with consultants, including regular check-ins, expectations for communication with the consultant, and guidelines for dealing with delays, and
b. Consider instituting a list of required consultants.

PBCE Partly Implemented a) PBCE developed standard operating procedures (SOPs) for environmental impact reports (EIRs), negative declarations/mitigated negative declarations, and addendums.

The SOPs include check-in expectations and recommendations at certain milestones, such as after public comments are received from the circulation of the draft EIR.

Additionally, in Q4 FY 2021-22, staff drafted interim Environmental Consultant Guidelines. It includes guidelines for consultants on maintaining the project schedule and instructs the consultant to update the schedule based on any delays. PBCE reports that staff also reviewed guidelines for other jurisdictions that have expectations for quality of work and timeliness. PBCE reports that creating comprehensive Environmental Consultant Guidelines, which will include thresholds of significance, is not achievable by City staff alone given staff turnover, workload, and competing priority projects, and that retaining an environmental consultant to assist with drafting and finalizing the guidelines is needed. PBCE reports they submitted a budget request for FY 2023-24 to retain a consultant to draft comprehensive Environmental Consultant Guidelines with thresholds of significance. If the Budget Proposal is approved for FY 2023-24, staff expects to start this work in Q1 FY 2023-24 and finish in Q3 FY 2023-

24. b) Per memorandum from the Director of PBCE dated 10/11/2022, all applications for private development that require CEQA analysis must use a consultant on the City's Approved Environmental Consultants list starting 1/1/2023. The City will update the Qualified Consultant List through a new RFP process in Q3 FY 2022-23. Target Date:

Jun-2024 (Delayed From: Jun-2023)
#22-02 Environmental Review for New Developments
#09 The Department of Planning, Building and Code
Enforcement should finalize and publish guidelines about the City’s CEQA requirements and process for environmental consultants to help them prepare environmental documents according to the City’s standards.

PBCE Not Implemented In Q4 FY 2021-22, staff drafted interim Environmental Consultant Guidelines to help consultants develop their scope of work and schedule. PBCE reports that staff also reviewed guidelines for other jurisdictions that have thresholds of significance and expectations for quality of work and timeliness. PBCE reports that creating comprehensive Environmental Consultant Guidelines, including thresholds of significance, is not achievable by City staff alone given staff turnover, workload, and competing priority projects. The Department intends to retain an environmental consultant to assist with drafting and finalizing the guidelines. PBCE reports they submitted a budget request for FY 2023-24 to retain a consultant to draft comprehensive Environmental Consultant Guidelines with thresholds of significance. If the Budget Proposal is approved for FY 2023-24, staff expects to start this work in Q1 FY 2023-24 and finish in Q3 FY 2023-24. Target Date: Jun-2024 (Delayed From: Jun- 2023)
Status of Open Audit Recommendations as of December 31, 2022 77 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#10 To ensure costs are appropriately recovered, the Department of Planning, Building and Code Enforcement should:
a. Review and update guidelines for how to track time spent on environmental reviews and what activities should be billed, and b. Review the cost recovery calculation for environmental review fees.

PBCE Partly Implemented a) PBCE developed standard operating procedures (SOPs) for environmental impact reports (EIRs), negative declarations/mitigated negative declarations, and addendums.

The SOPs include guidelines for tracking time spent on environmental reviews and includes some references of what activities should be billed. b) PBCE reports that this piece of the recommendation will be part of the next comprehensive update of the Planning Fee Schedule. Environmental Review Team staff will coordinate with Administrative Team staff to provide data on hours and fee collection to support this effort. Target Date: Jun-2024
Potential Monetary Benefit: At the time of the audit, we determined that if the City was able to identify additional billable tasks (accounting for about 5 percent of planners' time), the City could save about $63,000.
#22-02 Environmental Review for New Developments
#11 To reduce workload on environmental review planners, the Department of Planning, Building and Code Enforcement should re- assign invoicing and other administrative duties to support staff, to the extent possible. This could include filling the administrative position assigned to the environmental review team.

PBCE Not Implemented At the time of the report, the recruitment for the Principal Office Specialist position to support the Environmental Review and Historic Teams was listed under "Upcoming Recruitments" in the Department Recruitment Plan. PBCE reports that staff are wrapping up several active recruitments for other positions. Recruitment of the Principal Office Specialist position will depend on recruitment prioritization. Target Date: Jun-2023 (Delayed From: Dec-2022)
Potential Monetary Benefit: We estimate the cost of invoicing and other administrative duties would be $49,000 less if conducted by administrative staff rather than planners. #22-02 Environmental Review for New Developments
#12 To enable the City Council to make informed decisions about strategic planning, the Department of Planning, Building and Code Enforcement should develop a process to regularly present to Council options for analyses that could streamline environmental reviews as part of the City’s comprehensive planning efforts. This should include resources and tentative timelines needed to complete the work.

PBCE Not Implemented Although development of a process to regularly present options for analyses that could streamline environmental reviews has not been accomplished, PBCE reports that for City-initiated plans and policies, staff started presenting PBCE management with options for CEQA analysis that provide opportunities for streamlined CEQA review.

This approach is reflected in requests for proposals from environmental consultants for CEQA review for some Citywide projects, such as the CEQA analysis for Emergency Interim Housing and the Five Wounds Urban Village Plan. For the latter project, the City requested that consultants provide cost, timeline, and analysis approaches for an option that provides program-level CEQA clearance that can provide future project- level CEQA streamlining. Target Date: Jun-2023 (Delayed From: Dec-2022) Status of Open Audit Recommendations as of December 31, 2022 78 Report and Recommendations Dept (s) Current Status Comments #22-03 Citywide Grant Management
#01 To assist departments that manage grants awards Citywide, the Administration should identify staffing resources to develop and maintain Citywide administrative guidelines or procedures, and training materials around the different phases of grant management, including:
i. Applying for grants,
ii. Accounting, tracking, and monitoring of expenditures, including subrecipient and contractor management,
iii. Grant closeout responsibilities, and
iv. Preparing for federal audits and reviews, including notifying the Finance Department when the award is selected for an audit or review by a federal agency.

FIN Not Implemented
-
Priority
While the Finance Department had identified seven limit-dated positions to work on grants-related work for FY 2022-23, the Department reports needing to divert resources to other work priorities, such as responding to the U.S. Treasury's Coronavirus Relief Funds (CRF) audit, responding to the EOC activation for the January 2023 storms, and completing final expenditure reports for CRF and Emergency Rental Assistance grants. Target Date: Jun-2023 #22-03 Citywide Grant Management
#02 To provide a forum for inter-departmental coordination and training, the Administration should formalize the grant working group’s role in coordinating training for grant managers across departments, and assessing and developing Citywide resources.

FIN Not Implemented As noted in the audit, Finance has an informal Grants Working Group to discuss funding opportunities and best practices. The Department plans to formalize the Grant Working Group's charter to include the group's purpose, composition, meeting frequency, and role in coordinating training for grant managers across departments.

Target Date: Jun-2023 (Delayed From: Dec-2022)
#22-03 Citywide Grant Management
#03 To comply with federal and state guidelines for reimbursable indirect costs, the Finance Department should develop a process to regularly submit the City’s Indirect Cost Allocation Plan to the City’s cognizant federal and state agencies.

FIN Not Implemented The Finance Department reports that it plans to develop a process to regularly submit the City Indirect Cost Allocation Plan to the City’s cognizant federal and state agencies to comply with federal and state guidelines for reimbursable indirect costs. Target Date: Jun-2024 (Delayed From: Jun-2023)
#22-04 Take-Home Vehicles
#01 The Administration should clarify and update guidelines for take-home vehicles in City Policy Manual 1.8.1 Use of City and Personal Vehicles to:
a) Better define roles and responsibilities of department liaisons, Public Works, and the City Manager’s Office,
b) Provide acceptable mechanisms to calculate call-backs, such as required documentation of reported numbers, and
c) Require exemption requests, in instances where employees do not meet all the policy guidelines, to include justification and reasoning for the request, including cost/benefit analyses as appropriate.

PW Partly Implemented Public Works reports it is currently working on updating the policy and plans to have the updates completed, reviewed, and approved by April 2023. Target Date: Apr-2023 (Delayed From: Nov-2022)
Status of Open Audit Recommendations as of December 31, 2022 79 Report and Recommendations Dept (s) Current Status Comments #22-04 Take-Home Vehicles
#02 To streamline the authorization process, Public Works should work with the Information Technology Department to simplify and develop an electronic approval process. This should include standard processes to:
a) Identify take-home vehicles, which should include departments providing updates to Public Works and the City Manager’s Office on a periodic basis to account for changes to the roster of employees approved for take-home vehicles, and
b) Submit exemption requests for employees that do not meet all the policy requirements.

PW Partly Implemented Public Works reports that a new electronic request and approval form has been completed through SmartSheets. Public Works expects partner departments to implement SmartSheets in spring 2023. Public Works is planning to set up automated emails to remind departments to update the electronic Take Home Vehicle requests periodically. The expectation for periodic updates from departments will also be added to the CPM 1.8.1 Policy revision by June 2023. Target Date: Jun-2023 (Delayed From: Jan 2023)
#22-04 Take-Home Vehicles
#03 To monitor for potential personal use:
a) Public Works should ensure take-home vehicles are equipped with telematics, as appropriate, and relevant department staff have access to telematics.
b) The Administration should update the policy to require departments to monitor for personal use, such as through random audits to identify off-hour, evening, or weekend use, or requiring department directors to attest that controls are in place to prevent personal use of take-home vehicles.

PW Partly Implemented Public Works transitioned to a new telematics provider and the department is currently finishing the installations on Phase I vehicles. Staff expects the installations to be completed in several phases. Target Date: Apr-2023 (Delayed From: Jan-2023) #22-04 Take-Home Vehicles
#04 To ensure clear expectations for employees who may be subject to taxable fringe benefits, the Administration should update City Policy Manual 1.8.1 Use of City and Personal Vehicles the Take-Home Policy C.P.M 1.8.1 to include IRS guidelines around what vehicles are exempt from fringe benefit calculations.

PW / FIN Partly Implemented Public Works and Finance report drafting an update to CPM 1.8.1 and expect to complete it by June 2023. Target Date: Jun-2023 (Delayed From: Nov-2022) #22-04 Take-Home Vehicles
#05 To ensure accuracy of IRS reporting of taxable fringe benefits, the Finance Department should:
a) Work with Public Works to annually review the roster of take- home vehicles against IRS guidelines to identify vehicles subject to taxable fringe benefit reporting, and
b) Revise the calculation of taxable fringe benefits to remove call- back events from the commute mileage.

FIN / PW Partly Implemented
The Finance Department revised the calculation of taxable fringe benefits (removed the call back events from commute milage) to fully implement part b and plans to work with Public Works (Fleet Division) to establish a mechanism for identifying which take-home vehicles are subject to taxable fringe benefit reporting per IRS guidelines. Target Date:

Apr-2023 (Delayed From: Dec-2022)
Status of Open Audit Recommendations as of December 31, 2022 80 Report and Recommendations Dept (s) Current Status Comments #22-05 Bill of Rights for Children and Youth
#01 To enhance the impact of children and youth programing, as part of the City’s Children and Youth Services Master Plan development process, the City Administration should:
a)Identify a process and resources to develop and maintain an inventory of the City’s children and youth programs and use the inventory to document gaps in services as it relates to the Bill of Rights for Children and Youth.
b)Continue to enhance equity in service delivery by developing Citywide procedures and monitoring mechanisms to increase accessibility to children and youth programs in underserved areas.
c)Implement a process for children and youth to access the spectrum of City programs and services, regardless of their entry point.

CMO Partly Implemented a) In collaboration with the Library and PRNS, the Administration created a centralized excel portfolio to begin to record and track programs and services. This document was cross-referenced with the articles of the Bill of Right for Children and Youth. As part of the next phase, the Administration plans to meet with other departments to develop an inventory of programs and services for children and youth to integrate in the portfolio.

They plan to update this annually. The Administration plans to identify potential partners to assist in addressing the gaps, however they note that resources support and other organizations' expertise is required.
b) The Library and PRNS report they are continuing to enhance equity in service delivery. The Library reports it has developed an Equity, Diversity, and Inclusion Toolkit outlining learning materials for City staff across the organization, and plan to pilot this in Spring 2023. PRNS reports it is enhancing expanded mobile program registration events, has made priority registration the standard for all scholarship-eligible families, and is working to increase its scholarship program. Additionally, the City's Youth Commission promotes resources and opportunities available to youth citywide, including equitable access to marginalized youth communities. They report that additional resources can help enhance the work they perform. c) The Administration reports that it is currently in the early phase of developing a strategic approach to provide families, children, and youth seamless access to services regardless of provider. Departments are working with a consultant, the County, community-based organizations, and families to develop and implement a Citywide process for children and youth to access the spectrum of programs and services, regardless of their entry point. The Administration plans to incorporate digital access in this approach. Target Date: Jun-2024
#22-05 Bill of Rights for Children and Youth
#02 To promote continuous improvement of City’s children and youth programs and services, and as part of the Children and Youth Services Master Plan development process, the City Administration should:

A. Define metrics to assess overall progress towards desired outcomes identified in the Bill of Rights for Children and Youth.

B. Develop a reporting schedule to the appropriate City Council committee on these metrics.

This may require establishing data sharing agreements with partners, potentially including school districts and the Santa Clara County Office of Education.

CMO Partly Implemented As mentioned in recommendation #1, the Administration has created an updated inventory of programs and services and is identifying gaps. The Administration has identified current metrics and progress towards desired outcomes that departments are regularly reporting to City Council as they relate to the Bill of Rights for Children and Youth. The Administration reports that it will continue to engage departments and external partners to review their respective outcomes, explore shared outcomes, and identify where they align with the Children and Youth Services Master Plan. Upon completion of the Children and Youth Services Master Plan the Administration plans to develop a reporting schedule to the Neighborhood Services and Education Committee.

Target Date: Jun-2024
Status of Open Audit Recommendations as of December 31, 2022 81 Report and Recommendations Dept (s) Current Status Comments #22-06 COVID-19 Food Distribution Expenditures
#01 For FEMA and ARPA funded expenditures, the
Administration should document in its emergency cost recovery files:
• specific justification for all sole-source and non-competitive contracts, as well as any changes to existing contracts beyond the scope of the original agreement, including appearances of conflicts of interest and efforts made to identify potential conflicts, •
cost or price analysis for all purchases and contract modifications over the City’s formal bidding threshold, and
• other information as required to document compliance with federal requirements for competitive procurements (e.g., affirmative steps to include minority-owned firms in solicitation lists and separate negotiation of profit for solely responsive bidders).

For expenses where the Administration is unable to document compliance with appropriate requirements, it should reallocate those expenses to alternate funding sources.

FIN Not Implemented The Finance Department onboarded seven limit-dated positions, funded through June 30, 2023, to administer the City’s COVID-19 grants, including timely programmatic and expenditure reporting, compiling, and centralizing expenditure documentation (contracts, purchase orders, invoices, and proofs of payment), and supporting the City through grantor audits. The Department plans to further review and maintain documentation around procurement in the emergency cost recovery files, including specific justification for sole-source and non-competitive contracts and amendments, cost or price analysis, and other information required to document compliance with federal requirements for competitive procurements. Target Date: Jun-2024 Potential Monetary Benefit: At the time of the audit, the City had $10.6 million in FEMA- and ARPA- funded expenditures from sole-source contracts with values above $130,000, the City’s formal bidding threshold, or minimum for triggering a cost or price analysis. Gathering additional documentation would protect the City in case of future federal audits.
#22-06 COVID-19 Food Distribution Expenditures
#02 To verify service delivery and reduce the potential for questioned costs from grant agencies, Parks, Recreation and Neighborhood Services in coordination with the Finance Recovery Group should:
•
Using a risk-based approach, collect sample documentation from food vendors to support reported service levels and eligibility of contracted populations where the City does not currently have detailed data on service delivery. Documentation should support that grant funds met contract terms.
• As needed, collect documentation to supplement or clarify invoices that do not tie to service reports.

PRNS /
FIN
Partly Implemented According to PRNS, the Food and Necessities Distribution Team conducted several risk-based reviews of supporting documentation from food partners during site visits and when invoices were received for payment for contracts from June to December 2022. Staff report that risk-based reviews are based on vendor performance. PRNS updated its site visit forms with steps to document food partners’ controls around service delivery reporting and population eligibility as defined in food contracts. PRNS also collected sign-in sheets and delivery confirmation slips for select vendors to support reported service activity. Additionally, staff report spot-checking information by cross-referencing intake forms and delivery documents, and comparing invoice totals with itemized service and expenditure reports. PRNS has worked with food vendors to clarify errors or outliers in invoices or service reports when appropriate. PRNS and Finance plan to retroactively monitor contracts and collect documentation to support service delivery and grant fund requirements. Target Date: Jun-2023 Potential Monetary Benefit: In a sample of invoices tested during the audit, $3.1 million in invoices did not have associated documentation to support delivered services, such as zip codes, delivery dates, or unique IDs. Gathering additional documentation would protect the City in case of future federal audits.

Status of Open Audit Recommendations as of December 31, 2022 82 Report and Recommendations Dept (s) Current Status Comments #22-06 COVID-19 Food Distribution Expenditures
#03 To prepare for the next emergency, the Administration should update the Emergency Operations Plan to reassign the Purchasing Division’s roles and responsibilities to ensure segregation of duties and formalize procurement tools as developed by staff during the COVID-19 emergency.

CMO Not Implemented The Office of Emergency Management (OEM) has taken the lead to update the Emergency Operations Plan and Community Recovery Annex. According to OEM, both plans are in draft form for adoption in June 2023. Finance staff have been reassigned to the Finance and Administration Section and Recovery Section to separate staff making purchases from staff requesting purchases in the Logistics Section. OEM is updating their organizational chart to reflect these changes. OEM reports that Finance is working with an outside contractor to create a Cost Recovery Document to incorporate the procurement tools developed by staff during the COVID-19 emergency.

Target Date: Jun-2023
#22-06 COVID-19 Food Distribution Expenditures
#04 To increase emergency preparedness, the Administration should establish processes in accordance with Uniform Guidance for City staff to review submitted documentation and verify information through site visits and desk reviews, and reference such guidance within the Emergency Operations Plan.

FIN / CMO Not Implemented The Finance Department intends to issue a Request for Proposal for review of existing policies and procedures and recommendations on enhancing the City's processes.

According to the Department, Finance and the consultant will develop Citywide processes in accordance with the Uniform Guidance, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards to non-Federal entities. Target Date: Jun-2024
#22-06 COVID-19 Food Distribution Expenditures
#05 The Parks, Recreation and Neighborhood Services Department should update its contract development and
management guidance to incorporate clear expectations on validating costs and verifying information through documentation and invoice reviews, site visits to program sites and administrative premises, and desk reviews based on levels of risk.

PRNS Not Implemented According to PRNS, the Food and Necessities Distribution Team has assisted the Department’s Strategic Partnership Unit in updating its contract development and management guidelines. PRNS reports that the draft guidelines include specified service report documentation to verify deliverables and contract adherence, updated site visit checklists, and updated procedures for invoice reviews. Target Date: Jun- 2023
Status of Open Audit Recommendations as of December 31, 2022 83

San Jose City CouncilMarch 28, 2023

San Jose City Council
March 28, 2023