Memorandum, rev. 9/18/25 — San Jose City Council, September 23, 2025

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

STATUS OF OPEN AUDIT

RECOMMENDATIONS AS OF
JUNE 30, 2025
September 2025

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Status of Open Audit Recommendations as of June 30, 2025 2 Office of the City Auditor
Joe Rois, City Auditor
September 12, 2025
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 JUNE 30, 2025

RECOMMENDATION
We recommend the City Council accept the Status of Open Audit Recommendations as of June 30, 2025.

SUMMARY OF RESULTS
The City Auditor’s Office reviews open audit
recommendations every six months. Since the last update, City departments implemented or closed 42
recommendations from past performance audits covering
various services and programs.

Over the past decade, the Administration has implemented 85 percent of all recommendations from the Auditor’s Office (target: 80 percent). Currently, 109 recommendations
remain open with 85 partly implemented—the fewest
recommendations remaining open in more than a decade.

Attached are:
• Appendix A: A summary table of all recommendations
by report over the past ten years.
• Appendix B: The status of the 151 audit
recommendations from our review as of June 30, 2025.1
1 This report excludes the four recommendations from the June 2025 Audit of City Costs for Outdoor Special Events, presented to Council in August 2025. They will be included in future status reports. 151 recommendations in this report
6 were issued in new reports
42 implemented / closed
109 partly or not implemented
85% of audit recommendations made over
the last 10 years have been implemented or
closed
Status of Open Audit Recommendations as of June 30, 2025 3 Departments Implemented or Closed 42 Recommendations in the Last Six Months Over the past six months, City departments have implemented or closed 42 recommendations.2 Examples include:
• Finance Department: Worked with the City’s outside financial auditors and the City’s development partners to determine the proper accounting treatment of fee revenues. They also updated the City’s encumbrance policy and created additional guidance for staff to better manage encumbrances. (Audit of Development Partners’ Work-in-Progress Reserves, 2020 and Encumbrances, 2024) • Police Department: Finalized a Community Engagement Plan and established a team within the Crime Prevention Unit to coordinate its community engagement activities. The Department also updated its Duty Manual to clarify responsibilities around gun violence restraining orders. (Audits of Police Staffing, Expenditures, and Workload, 2021 and Firearm Regulations, 2022)
• Department of Transportation: Developed new performance measures to assess progress on tree planting goals, including resident ratings of street trees and other metrics. (Audit of Tree Removal and Replacements, 2022) • City Manager’s Office of Communications: The City’s Language Access Manager began site visits of City facilities to assess language accessibility and developed standard operating procedures for monitoring language accessibility.

They have also created new trainings and made other resources available to City staff to support the City’s language access and equity efforts. (Audit of Language Accessibility, 2024)
• Public Works: Animal Care & Services (ACS) implemented multiple recommendations from the 2024 audit of ACS, including formalizing protocols for different aspects of operations, such as pathway planning for incoming animals, better tracking of fosters, communications, and licensing. (Audit of Animal Care & Services, 2024)
• Parks, Recreation and Neighborhood Services: Created a tool to compare BeautifySJ blight reduction and beautification service delivery to the Healthy Places Index to support equitable service delivery. (Audit of Access and Use of Neighborhood Blight Reduction Programs, 2024)
• Open Government: The Administration clarified guidelines around disclosures of public subsidies and updated City policies around the retention and disposition of electronic records. (Audit of Open Government, 2017)
Over the last decade, the City Auditor’s Office has made 650 recommendations to improve City services, 85 percent of which have been implemented or closed. (See Appendix A for a list of reports issued in the last ten years and the status of their recommendations.)
2 The City Auditor’s Office recommends closing a recommendation when a department has not completed all elements of a recommendation, but the Office agrees that the department has made sufficient progress to address the underlying issues identified in the audit and remaining work may only have marginal additional benefits. We may also recommend closing a recommendation if it does not reflect the current operating environment because of changes to the service delivery model.

Status of Open Audit Recommendations as of June 30, 2025 4 Twelve Priority Recommendations
In June 2018, the City Council directed the Administration, in coordination with the City Auditor’s Office, to identify and prioritize 12 open audit recommendations while continuing to make progress on all others. The current priority audit recommendations, categorized by intended benefit and listed with target dates, are:

Potential Budgetary Savings / Revenue Generation
Implemented
Improve overtime controls in the Police Department (Audit of Police Staffing, Expenditures, and Workload, #2101-06).

Status: Following the audit, the Police Department implemented new overtime controls, including limiting discretionary overtime, requiring Captains to submit quarterly overtime reports, and creating a dashboard for supervisors to review specific overtime details. In 2025, further restrictions required Chief approval for certain overtime categories. Although overtime costs continue to rise, the steps taken meet the intent of the recommendation. The City Auditor’s Office is currently conducting a follow-up to the Police Staffing, Expenditures, and Workload audit.

Implemented
Add Community Service Officers (CSO) to address lower priority Police calls (Audit of Police Staffing, Expenditures, and Workload, #2101- 09).

Status: As part of the FY 2024-25 budget process, the Police Department reduced CSO supervisory positions to deploy all CSOs in the field. In April 2025, the Department began a pilot to better align CSO and patrol schedules. If the pilot is successful, the Department anticipates full implementation would require meet-and-confer with the relevant bargaining unit.

Implemented
Outreach and educate potential massage businesses on the Massage Ordinance and notify businesses when their permit is about to expire (Audit of Code Enforcement Management Controls, #2104-03 and 05) – New priority added.

Status: The Department of Planning, Building and Code Enforcement (PBCE) reviewed Business Tax Certificate data and Massage Therapy Council records to create a roster of 338 potentially eligible businesses.

PBCE plans to work with the Police Department to update the roster quarterly. The departments have also developed and implemented an outreach strategy to inform and educate businesses on the Massage Ordinance. The Police Department’s new permitting software is now live and sends automatic notifications to businesses 60 days before permit expiration. Businesses can now apply, renew, and pay permit fees online.

Status of Open Audit Recommendations as of June 30, 2025 5 Operational Efficiency
Partly
Implemented
Identify all vacant lands within the City’s real estate portfolio and report on that land and their intended use annually (Audit of Real Estate Services, #2103-03) – New priority added – Target date: February 2026 (delayed from January 2024).

Status: Real Estate’s database software platform was developed and launched with the capability to store information needed for annual reporting on the City’s vacant land inventory. Real Estate plans to report on the vacant lands inventory annually at the Community and Economic Development (CED) Committee starting in 2026.

Not
Implemented
Finalize and publish guidelines about the City’s California Environmental Quality Act (CEQA) requirements and process for environmental consultants (Audit of Environmental Review for New Developments, #2202- 09) – New priority added – Target date: December 2025 (delayed from June 2023).

Status: PBCE has engaged a consultant to assist with drafting and finalizing Environmental Consultant Guidelines. PBCE reports the Guidelines will need to be amended to account for changes to the CEQA from new streamlining laws.

Partly
Implemented
Contract with outside service providers for spay and neuter services (Audit of Animal Care and Services, #2406-09) – New priority added – Target date: December 2025.

Status: ACS has purchase orders with three vendors for spay and neuter services. Moving forward, ACS plans to work with the Finance Department to maintain coverage for these contracted services.

Improved Service Delivery
Not
Implemented
Increase language translations of vital documents and include translation options in the SJPermits.org website (Audit of Residential Building Permits, #2307-15) – Target date: December 2025 (delayed from December 2024).

Status: PBCE reports it is developing a process to prioritize vital documents for translation and is working with the Information Technology Department (ITD) to add translation options for SJPermits.org.

Partly
Implemented
Update San José ACS manual to align with Association of Shelter Veterinarians Guidelines (Audit of Animal Care and Services, #2406-11) – Target date: December 2025.

Status: ACS is in the process of developing additional protocols to address the Association of Shelter Veterinarians’ Guidelines.

Status of Open Audit Recommendations as of June 30, 2025 6 Partly
Implemented
Incorporate languages spoken by 5 percent or more of the population into the SJ311 website and mobile application, as well as the 3-1-1 phone trees (Audit of Access and Use of Neighborhood Blight Reduction Programs, #2408-02 and 03) – New priority added – Target date: June 2026.

Status: ITD fixed Spanish and Vietnamese translation errors on the SJ11 website and mobile application. Implementation of Traditional Chinese and Simplified Chinese translations, including integration into the SJ311 Customer Call Center phone tree, have been incorporated into ITD’s SJ311 2025-26 Strategic Plan.

Citywide Security / Risk Mitigation
Implemented
Develop Citywide administrative guidelines or procedures for managing federal grants (Audit of Citywide Grant Management, #2203-01).

Status: The Finance Department finalized a City Grants Acquisition, Management, and Compliance Policy in May 2025. The policy covers applying for grants, monitoring, closeout, and preparing for audit, along with other relevant information. It is available to City staff on the Finance Department's Intranet site.

Implemented
Update the Emergency Operations Plan to ensure segregation of duties and formalize procurement tools (Audit of COVID-19 Food Distribution Expenditures, #2206-03).

Status: The Office of Emergency Management (OEM) updated the Emergency Operation Plan (EOP) to reassign staff and ensure segregation of duties. The Finance Department finalized its Cost Recovery Document with procurement tools, which is referenced in the EOP.

Implemented
Improve the accuracy and usefulness of reporting mechanisms for encumbrances (Audit of Encumbrances, #2404-05).

Status: Finance has worked with its vendor to verify which report to use for encumbrance monitoring and to fix identified errors. ITD has worked with Finance and department staff on the mass closure of over 18,000 purchase orders with zero outstanding amounts. This has streamlined the report by eliminating redundant data and enhancing performance. Department staff will be reminded to close out old purchase orders during regular Finance trainings to prevent this issue in the future.

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

Status of Open Audit Recommendations as of June 30, 2025 7 Total of 109 Recommendations Are Still Pending
Of the 109 recommendations that are still pending, 85 (78 percent) are partly implemented and 24 (22 percent) are not implemented.

Public Works (PW) has the largest number of open audit recommendations – the majority of which were from the December 2024 audit of Animal Care and Services.

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

CONCLUSION
Information about all open recommendations is available online:
• The Dashboard of the Status of Open Audit Recommendations contains information about the status of all pending recommendations as of June 30, 2025 – sortable by priority, department, year published, target date, and type/benefit. • The Dashboard of All Recommendations 2010 to Present contains all recommendations (both open and closed) made since 2010 – sortable by report, 9 6 4 3 1 1
28 19
9 6 6 3 6 2 2 1 1 1 10
5 10
15 20
25 30
35 40
Open Recommendations
Partly Implemented
Not Implemented
2 3
4 6
9 6
9 21
22 27
Securing City Assets
Equity
Improved Service Delivery
Transparency and Accountability
Operational Efficiency
Open Audit Recommendations by Intended
Outcome
Not Implemented Partly Implemented
Status of Open Audit Recommendations as of June 30, 2025 8 department, year published, and status. A search feature allows users to search by keyword, status, and report number.

Both dashboards are online at:
www.sanjoseca.gov/your-government/appointees/city-auditor/audit-recommendations 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.

Respectfully submitted,
Joe Rois
City Auditor
Audit staff: Brittney Harvey, Michelle Mallari, Hiwad Haider, Dilnoza Khudoyberganova, Gitanjali Mandrekar, Ebelechukwu Obi, Michael O’Connell Jr., Alison Pauly, Adrian Perez, and Maria Valle Appendix A: Summary Listing of Recommendations by Report (July 1, 2015 – June 30, 2025) Appendix B: Detailed Listing of the Status of Open Recommendations as of June 30, 2025 Status of Open Audit Recommendations as of June 30, 2025 9 This page was intentionally left blank
Status of Open Audit Recommendations as of June 30, 2025 10 Appendix A:

SUMMARY LISTING RECOMMENDATIONS BY REPORT
(July 1, 2015 – June 30, 2025)
Status of Open Audit Recommendations as of June 30, 2025 11 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #15-08 Golf Courses: Loss of
Customers and Revenues Requires A
New Strategy
PRNS Improve the utilization and finances of
the City's golf courses.
⬛⬛⬛⬛⬛ 5
#15-09 Police Hiring: Additional Efforts
to Recruit Qualified Candidates
Urgently Needed to Fill Vacancies
PD
Bolster recruiting efforts and increase
the efficiency of recruiting to fill the
growing vacancies in the Police
Department.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 14
#15-10 Cities Association of Santa
Clara County Expenditure Review,
Fiscal Years Ending June 30, 2014 &
2015
OTHER No recommendations.
#15-11 Team San Jose's Performance
2014-15 OEDCA
Clarify the City and Team San Jose's
respective roles in managing fees
charged to fund facility improvements.
⬛ 1
#15-12 Personnel Investigation
Structure: Augmenting Policies and
Training Can Improve the Process
CMO Improve the structure of personnel
investigations.
⬛⬛ 2
#15-13 Annual Report on City Services
FY 2014-15 CITY No recommendations.
#16-01 Measuring San José's Financial
Condition CITY No recommendations.
#16-02 Street Sweeping: Significant
Investment and Re-Tooling Are Needed
to Achieve Cleaner Streets
DOT Improve the effectiveness of the City's
street sweeping program.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 14
#16-03 The City’s Use and
Coordination of Volunteers: Volunteer
Programs Provide Significant Benefits to
the Residents of San José
CMO
Provide tools for City staff to better
manage volunteers and allow for better
coordination across volunteer
programs.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
Status of Open Audit Recommendations as of June 30, 2025 12 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #16-04 Technology Deployments:

Additional Resources Needed to
Shorten Deployment Timelines
ITD
Improve and establish additional
resources for deploying new technology
across the City organization.
⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9
#16-05 South Bay Water Recycling:

Better Information and Renegotiation of
Contractual Obligations Will Increase
Transparency and Aid Program Success
ESD
Provide more transparency over the
accounting of South Bay Water
Recycling revenues and expenses and
help sustain revenues sufficient to cover
costs.
⬛⬛⬛ 3 ⬛ 1
#16-06 Police Response to Animal
Calls for Service PD No recommendations.
#16-07 Office of the City Clerk:

Streamlining Processes and Clarifying
Roles Can Better Ensure Compliance
with Statutory Responsibilities
CLERK
Maximize organizational efficiency and
consistency, as well as transparency and
public accountability, by streamlining
processes and clarifying roles.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛ 19
⬛ 1
#16-08 Police Overtime: The San José
Police Department Relies on Overtime
to Patrol the City Due to
Unprecedented Vacancies
PD
Increase efficiency of staffing, improve
tracking of hours worked by Police
Department employees, and improve
the tools for supervisors to monitor
overtime worked.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 12
#16-09 Team San Jose’s Performance
2015-16 OEDCA No recommendations.
#16-10 The Apartment Rent
Ordinance: Additional Investment,
Improved Processes, and Strategic
Resource Deployment Needed to
Better Serve Tenants and Landlords
HSG Better deploy resources, improve
processes, and recover program costs.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛ 19
Status of Open Audit Recommendations as of June 30, 2025 13 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #16-11 Mobile Devices: Improvements
Needed to Ensure Efficient, Secure, and
Strategic Deployment
ITD
Ensure efficient, secure, and strategic
deployment of mobile devices across
the organization.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛ 16
#16-12 Annual Report on City Services
FY 2015-16 CITY No recommendations.
#17-01 Audit of Our City Forest DOT
Ensure consistency and accountability
with the City's grant agreements with
Our City Forest and improve the off-
site tree replacement program.
⬛⬛⬛⬛ 4
#17-02 Office of Equality Assurance:

Increased Workload Warrants
Reevaluation of Resource Needs
PW
Reallocate staff and update procedures
considering the growing number of
OEA responsibilities.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
#17-03 Audit of Residential High-Rises:

Considerations for A City with A
Growing Number of Tall Buildings
PBCE
Consistently assure health and safety
standards are met, and ensure
transparency of development reviews
for high-rise development projects.
⬛⬛⬛ 3
#17-04 Open Government: The City
Has Made Progress in Meeting
the Goals of the Sunshine Reform Task
Force
CMO
Promote government transparency and
ensure compliance with the City's
Consolidated Open Government and
Ethics Provisions.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛ 1
#17-05 Audit of Environmental Services
Department Consulting Services:

Agreements Require Additional
Oversight
ESD
Protect City resources by strengthening
controls and improve contract
monitoring.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 10
#17-06 Audit of Retirement Services:

Greater Transparency Needed in the
Budgeting Process, Interactions Among
Stakeholders, Investment Policies, and
Plan Administration
ORS
Increase transparency in the budgeting
process, interactions among
stakeholders, investment policies, and
plan administration.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 25
Status of Open Audit Recommendations as of June 30, 2025 14 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #17-07 Preliminary Review of San José
Clean Energy: The City Is Developing
Controls to Manage Risks
CED No recommendations.
#17-08 Audit of Employee Travel
Expenses FIN
Clarify portions of the existing City
travel policy to improve compliance and
strengthen controls over the gas card
program.
⬛⬛⬛⬛ 4
#17-09 San José’s Tier 3 Defined
Contribution Plan: The City Should
Clarify How Contributions Are
Calculated
CMO Clarify how contributions to employee
accounts are calculated.
⬛ 1
#17-10 Team San Jose's Performance
2016-17 OEDCA No recommendations.
#17-11 Airport Financial Projections AIR No recommendations. #17-12 Annual Report on City Services
2016-17 CMO No recommendations.
#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. ⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9 ⬛ 1 #18-04 Audit of Vehicle Abatement:

The City Could Improve Customer
Service for Vehicle Abatement Requests
DOT Improve customer service for vehicle
abatement requests.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛ 1
Status of Open Audit Recommendations as of June 30, 2025 15 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #18-05 Cities Association of Santa
Clara County Expenditure Review,
Fiscal Years Ending June 30, 2017 &
2018
OTHER No recommendations.
#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 of
Programs
HSG
Improve the City’s oversight and
management of its homeless assistance
programs.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 14
#18-08 Team San Jose Performance FY
2017-18 OEDCA Establish and formalize the target for
theater occupancy.
⬛ 1
#18-09 Annual Report on City Services
2017-18 ALL No recommendations.
#18-10 Audit of Towing Services:

Changes to Contract Terms and
Consolidated Oversight Could Improve
Operations

PBCE / PD
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.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛ 18
⬛ 1
#19-02 Employee Benefit Fund
Administration: Opportunities Exist to
Improve Controls
HR Improve administration of employee
benefit funds.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
Status of Open Audit Recommendations as of June 30, 2025 16 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #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.
⬛⬛⬛⬛ 4 ⬛⬛⬛ 3 ⬛ 1
#19-04 The Mayor’s Gang Prevention
Task Force (now the San José Youth
Empowerment Alliance): Better
Coordination and Use of Data Can
Further the Task Force’s Strategic Goals
PRNS
Support and enhance the Youth
Empowerment Alliance's continuum of
care strategy.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 13 ⬛⬛⬛⬛ 4
#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.
⬛⬛⬛⬛⬛⬛⬛⬛ 8 ⬛ 1
#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.
⬛⬛⬛⬛⬛⬛⬛ 7 ⬛ 1
#19-09 Team San Jose Performance FY
2018-19 OEDCA No recommendations.

Status of Open Audit Recommendations as of June 30, 2025 17 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #19-10 Technology Deployments:

Processes Can Be Improved to Ensure
Long-term Success of the City’s
Technology Vision
ITD
Strengthen the City’s technology
deployments processes across the
organization.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 10
#19-11 Annual Report on City Services
2018-19 ALL No recommendations.
#20-01 Memo - Preliminary Review of
Controls to Document COVID-19
Recovery Costs
CMO No recommendations.
#20-02 Fleet Maintenance and
Operations: Public Works Can
Continue to Improve Fleet Operations
PW
Enhance fleet operations by utilizing
data to identify fleet replacements and
monitor operations.
⬛⬛⬛⬛⬛⬛⬛ 7 ⬛⬛⬛⬛⬛ 5 ⬛ 1
#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.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 14
#20-04 Park Maintenance: Improved
Data Collection and Analysis Would
Enhance Park Maintenance Operations
PRNS
Improve park maintenance operations
by reassessing data collection protocols
and using targeted data to inform
resource decisions.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 13
#20-05 Development Partners’ Work-
in-Progress Reserves: Better Monitoring
Can Ensure Reserves Align with
Resource Needs

MULTIPLE
Improve workload and resource
planning through better tracking of
development work in progress.
⬛⬛ 2 ⬛⬛⬛ 3
#20-06 Memo - Preliminary Review of
Documentation for Costs Included in
the July 2020 Coronavirus Relief Fund
Interim Report
CMO No recommendations.

Status of Open Audit Recommendations as of June 30, 2025 18 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #20-07 Memo - Cities Association of
Santa Clara County Expenditure
Review, Fiscal Years Ending June 30,
2019 & 2020
OTHER No recommendations.
#20-08 Team San Jose Performance FY
2019-20 OEDCA No recommendations.
#20-09 Memo - Preliminary Review of
the Allocation and Monitoring of
COVID-19 Related Housing Grants
CMO No recommendations.
#20-10 Annual Report on City Services
2019-20 ALL No recommendations.
#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.
⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9 ⬛ 1
#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.
⬛⬛⬛⬛ 4 ⬛⬛ 2
#21-04 Code Enforcement
Management Controls: Improvements
to Oversight and Coordination Needed
PBCE
Improve oversight and management
controls over code enforcement
activities.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛ 18
⬛⬛ 2
Status of Open Audit Recommendations as of June 30, 2025 19 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #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.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛⬛ 2
#21-06 Team San Jose Performance FY
2020-21 OEDCA Address an error in the incentive fee
paid to Team San Jose.
⬛ 1
#21-07 Annual Report on City Services
2020-21 ALL No recommendations.
#22-01 Information Technology:

Improved Governance Would
Strengthen the City’s Cybersecurity
ITD Improve controls around the City’s
information and technology assets.
⬛⬛⬛⬛⬛ 5
#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.
⬛⬛⬛⬛ 4 ⬛⬛⬛⬛⬛ 5 ⬛⬛⬛ 3
#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.
⬛ 1 ⬛⬛⬛⬛ 4
#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 and
promote continuous improvement of
programs for children and youth in San
José.
⬛⬛ 2
Status of Open Audit Recommendations as of June 30, 2025 20 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #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 and update policies to improve
the City’s emergency preparedness.
⬛⬛⬛⬛⬛ 5
#22-07 Team San Jose Performance FY
2021-22 OEDCA No recommendations.
#22-08 Tree Removals and
Replacements: The City Can Improve
Processes to Protect and Grow the
Community Forest
PBCE /
DOT
Improve management of the community
forest program.
⬛⬛⬛⬛⬛⬛⬛ 7 ⬛⬛⬛ 3
#22-09 Firearm Regulations: The City
Should Update Procedures Around Gun
Violence Restraining Orders and
Firearm Business Inspections
PD Enhance firearm regulatory processes
and policies.
⬛⬛⬛⬛⬛⬛⬛ 7
#22-10 Annual Report on City Services
2022-23 ALL No recommendations.
#23-01 San Jose Conservation Corps:

The Corps Provides Essential Services
to Residents, However The City Can
Better Monitor Performance and
Promote Workplace Safety
PRNS
Enhance performance monitoring and
promote workplace safety for Corps
members.
⬛⬛⬛⬛ 4 ⬛ 1
#23-02 Employee Travel Expenses:

Additional Training Can Enhance
Compliance With the City’s Travel
Policy
FIN Ensure compliance with the City’s
Employee Travel Policy.
⬛ 1
Status of Open Audit Recommendations as of June 30, 2025 21 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #23-03 Integrated Waste Management
Enforcement Program: Clarifying Goals
and Performance Expectations Would
Improve Enforcement Coverage
ESD
Improve the team’s performance by
having clear goals and success metrics
including performance expectations for
inspectors.
⬛⬛⬛⬛⬛⬛ 6 ⬛ 1
#23-04 Housing Performance
Measures: The City Should Focus and
Align Measures to Support Decision-
Making
HSG Streamline and improve current
performance measures.
⬛ 1 ⬛⬛ 2
#23-05 Retirement Services: Interim
Report on the Alignment of Controls
Between the City and the Office of
Retirement Services
ORS
Strengthen the internal controls around
administrative functions in the Office of
Retirement Services.
⬛ 1
#23-06 Team San Jose Performance FY
2022-23 OEDCA No recommendations.
#23-07 Residential Building Permits:

Additional Resources and Further
Process Enhancements Can Reduce
Wait Times and Improve Service
Delivery
PBCE
Align PBCE resources to its building
permit workload, create standard
processes for permit intake and plan
review, and improve communication
with customers.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛⬛ 2 ⬛⬛ 2
#23-08 Annual Report on City Services
2022-23 ALL No recommendations.
#24-01 Non-Management Performance
Appraisals: The Administration Should
Improve and Clarify Appraisal Processes
HR
Improve the performance appraisal
process through better tracking and
clarification of processes.
⬛⬛⬛⬛⬛⬛⬛ 7 ⬛ 1
#24-02 Language Accessibility: The City
Can Strengthen Efforts to Address
Language Equity Across Its Services
CMO Enhance language accessibility across
City departments and services.
⬛⬛⬛⬛⬛⬛⬛⬛ 8 ⬛⬛⬛⬛ 4
Status of Open Audit Recommendations as of June 30, 2025 22 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title Dept(s) We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #24-03 Retirement Services: The Office
Has Not Consistently Followed City
Procurement Policies and Standard
Practices
ORS
Ensure appropriate controls around
procurement and contracting for the
Office of Retirement Services.
⬛⬛ 2 ⬛ 1
#24-04 Encumbrances: Departments
Should Regularly Review All
Encumbrances to Ensure Timely
Liquidation
FIN Improve the timeliness of encumbrance
liquidation.
⬛⬛⬛⬛⬛ 5
#24-05 Tenant Protection Ordinance:

Housing Should Refine its Fee
Calculation Process and Standardize
Procedures to Improve Program
Administration
HSG Refine the fee calculation process and
improve program administration.
⬛ 1 ⬛⬛⬛⬛⬛⬛⬛ 7 ⬛⬛⬛⬛ 4
#24-06 Animal Care and Services:

Addressing Capacity Constraints and
Updating Shelter Protocols Will Help
Improve Animal Outcomes
PW
Improve animal outcomes through
consistent protocols and better data
management practices.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
15 ⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛ 16
⬛⬛⬛⬛⬛⬛⬛⬛ 8
#24-07 Team San Jose Performance FY
2023-24 OEDCA No recommendations.
#24-08 Access and Use of
Neighborhood Blight Reduction
Programs: BeautifySJ Can Continue and
Expand Its Equity Efforts
PRNS
Improve access and use of BeautifySJ
Neighborhood Blight Reduction and
Beautification programs by traditionally
marginalized communities.
⬛⬛⬛ 3 ⬛ 1 ⬛⬛ 2
#24-09 Annual Report on City Services
2023-24 CITY No recommendations.

Status of Open Audit Recommendations as of June 30, 2025 23 This page was intentionally left blank
Status of Open Audit Recommendations as of June 30, 2025 24 Appendix B:

DETAILED LISTING OF THE STATUS OF PENDING
RECOMMENDATIONS AS OF JUNE 30, 2025
Status of Open Audit Recommendations as of June 30, 2025 25 Report and Recommendations Dept (s) Current Status Comments #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 conducted an analysis of the costs associated with the Secondary Employment Unit (SEU) and has developed an implementation proposal. The Department reports that it has proposed an amendment to Section 8.16.090 of the San José Municipal Code. This amendment would authorize administrative fees to recover costs associated with the administration of the Secondary Employment Program that are not currently recovered through the secondary employment fees.

Finally, the department has recommended bringing all coordination duties into the SEU and adding staff to the Unit. The Budget Office is in the process of reviewing the feasibility of the proposal. Target Date: Mar-2026 (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 As discussed in recommendation #22, (12-04 #22) the Department conducted an analysis of the costs associated with the Secondary Employment Unit and has developed an implementation proposal. The Department reports that it has proposed an amendment to Section 8.16.090 of the San José Municipal Code. This amendment would authorize administrative fees to recover costs associated with the administration of the Secondary Employment Program that are not currently recovered through the secondary employment fees. The Budget Office is in the process of reviewing the feasibility of the proposal. Target Date: Mar-2026 (Delayed From: Dec-2019)
Potential Monetary Benefit: The Department has estimated that the personnel costs of operating the Secondary Employment Unit (SEU) as it is currently staffed is $1.2 million. Recovery of these costs through fees would reduce the subsidy by the General Fund.
#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 As discussed in recommendations #22 and #28 (12-04 #22 and #28), the Department will be proposing an increase in the administrative fees to cover the cost of managing the secondary employment program. The Department reports that it will review the liability insurance once the proposal has been reviewed by City Council. The Budget Office is in the process of reviewing the feasibility of the proposal. Target Date: Mar- 2026 (Delayed From: Dec-2019)
Potential Monetary Benefit: In FY 2024-25, the General Fund subsidy of the secondary employment liability policy was estimated to be $60,637.

Status of Open Audit Recommendations as of June 30, 2025 26 Report and Recommendations Dept (s) Current Status Comments #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.

Finally, the department has recommended bringing all coordination duties into the SEU and adding staff to the Unit. The Budget Office is in the process of reviewing the feasibility of the proposal. Target Date: Mar-2026 (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. The Administration is in the process of developing an amendment to City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy, 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: Oct-2025 (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 The Administration is in the process of developing an amendment to City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy, outlining the overall guidelines for evaluating ratepayer costs and important considerations involved in establishing utility rates. The goal 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: Oct-2025 (Delayed From: Dec- 2016)
#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.

FIRE / HR Closed The Fire Department issued a Request for Proposal (RFP) for a consultant to review the physical requirements needed to perform the essential functions of specific fire classifications. However, Fire received only one response and the proposed price exceeded the amount that had been budgeted for the project. The Department reposted the RFP in 2025 but was similarly unsuccessful. At this time, because of the Fire Department's multiple unsuccessful attempts to solicit vendors to provide this service, we recommend closing this recommendation. We encourage the department to continue exploring options to review these classifications in the context of budget priorities.

Status of Open Audit Recommendations as of June 30, 2025 27 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 In May 2024, Code Enforcement executed a contract with a vendor for a new case management system. Staff expects this new system will provide the capability to incorporate condominiums into the Residential Occupancy Permit Program. The implementation of this system is currently underway. The City's Housing Elements Strategy included a feasibility study on the cost, needed staffing, potential timeline for expansion, and other resources needed to expand the types of housing units covered by proactive code inspections which help avoid complaint-based evictions. Staff report that they have begun work to evaluate existing city and county assessor data on townhomes and condominium properties to identify properties that may be candidates for the proposed program as a first step of the feasibility study. Target Date: Oct-2027 (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 Partly Implemented Code Enforcement executed a contract with a vendor for a new case management system in May 2024 and is in the process of implementation of a new code enforcement system. The Department reports that the feature to inform tenants of deficiencies found in their place of residence is expected to be implemented as part of Phase 1 of the implementation schedule. Target Date: Jul-2026 (Delayed From: Jul- 2018)
#14-08 Development Services
#18 Eliminate the Construction & Demolition Diversion Deposit.

PBCE /
ESD
Partly Implemented The Environmental Services Department (ESD) reports that due to feedback received from Planning, Building and Code Enforcement and the City Attorney's Office regarding potential elimination of the Construction and Demolition Diversion Deposit (CDDD) program, they are at this time considering changes to the program to increase permittee awareness of the refundable deposit, including increased communications, and potentially eliminating deposits for small dollar projects (which are often abandoned). ESD reports it has continued outreach efforts to permit holders eligible for CDDD refunds while program enhancements, including potential changes to the Municipal Code, are developed, approved, and implemented. Target Date: Dec- 2025 (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 Partly Implemented In December 2024, the Planning, Building and Code Enforcement (PBCE) Department reported that the Information Technology Department (ITD) had completed the first two phases of the fee estimation tool for accessory dwelling units (ADUs) and new residential construction. The Department reports that ITD has continued development of the third phase of the fee estimation tool for multifamily new construction. According to staff, the third phase for multifamily new construction is expected to launch in August 2025, with the final phase for single-family additions and alterations expected to launch in June 2026. Target Date: Jun-2026 (Delayed From:

Jun-2016)
Status of Open Audit Recommendations as of June 30, 2025 28 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
Implemented PRNS worked with the Budget Office to make two budget adjustments at the close of FY 2024-25 to align Fee Activity Program expenditures with increased Fee Activity levels. This was the result of discussions between PRNS and the Budget Office to determine the Fee Activity Program budget based on revenue projections. The Department also met with the Budget Office's Financial Status Coordinator to better understand how to set and manage cost recovery strategies and future revenue estimates, including for the Fee Activity Program. PRNS staff wrote informational base studies for two sampled Fee Activity budgets: R.O.C.K. and Camps, which the Budget Office reviewed and were used during base budget development for FY 2025-

26. Given the collaboration between PRNS and the Budget Office in repurposing the Fee Activity Program on an ongoing basis as part of the annual base budget process since the time of the audit, we recommend that this recommendation be considered implemented.
#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) The City has reached agreements with Valley Water amending their ground lease, enabling the development of an advanced water purification facility, and amending the revenue-sharing terms of the existing South Bay Water Recycling (SBWR) integration agreement. The Department expects agreements to be finalized in the coming months, pending completion of an Environmental Impact Review related to further development of the site.

B) In 2018, SBWR participated in a statewide rate study sponsored by the WateReuse Research Foundation. SBWR reviewed the study findings to determine an optimum fee study structure to address program needs. SBWR reports that currently wholesale rates are sufficient to cover program needs. Pending agreement finalization in the coming months, the wholesale rate structure will be periodically re- evaluated. Target Date: Feb-2026 (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
#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, assigned team leads to maintain these performance measures, and has begun to document action plans where results do not meet established targets or expected results. The Office also worked with the Administration to review its performance measures as part of the City's Outcomes, Equity Indicators, and Performance Management effort. The Office of the City Clerk also reports that deadlines are being addressed in employee evaluations. Once the action plans are completed, which addresses part (c) of the recommendation, this recommendation will be considered implemented. Target Date: Dec-2025 (Delayed From: Oct-2017)
Status of Open Audit Recommendations as of June 30, 2025 29 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:
a) The provision is a part of a larger incentive program to be issued to entities that meet specified criteria,
b) Multiple provisions may benefit a single entity within a short timeframe,
c) The City provides services on behalf of/for a private entity, and
d) The entity receiving the benefit is a non-profit or public agency.

OEDCA Implemented The City Attorney’s Office (CAO), Office of Economic Development and Cultural Affairs (OEDCA), and relevant partners met several times to discuss OEDCA’s recommended approach to the various scenarios outlined in the recommendation. A proposed subsidy policy memo was drafted by OEDCA and reviewed by the CAO.

OEDCA finalized consensus among internal stakeholders and published the subsidy policy memo on the department's intranet page as well as Agenda Services' Public Subsidy Process Guidelines page in August 2025.
#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 Implemented The City Manager's Office (CMO) coordinated with the City Attorney's Office (CAO) and Information Technology Department (ITD) to clarify policy objectives and revise City Administrative Policy 1.7.1 - Use of E-Mail, Internet Services, and Other Electronic Media. Additionally, the CMO met with all departments and office directors to review proposed changes to this administrative policy and discuss the scope of implementation over the next fiscal year. CMO leadership finished reviewing the final policy revisions and published the updated policy in early September. #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 City Manager's Office (CMO) coordinated with the City Attorney's Office (CAO) and Information Technology Department (ITD) to clarify policy objectives and revise City Administrative Policy 1.7.1 - Use of E-Mail, Internet Services, and Other Electronic Media. Additionally, the CMO has met with all departments and office directors to review proposed changes to this administrative policy and discuss the scope of implementation over the next fiscal year. CMO leadership finished reviewing the final policy revisions and published them in early September. An implementation transition plan will also begin this fall and is expected to continue through the end of FY 2025-26. The implementation plan will include, but will not be limited to, periodic reminders to clean out electronic folders, staff exit surveys, onboarding and separation checklist procedures, and the creation of electronic filing architecture for each department. Target Date: Jul-2026 (Delayed From: Dec-2024) Status of Open Audit Recommendations as of June 30, 2025 30 Report and Recommendations Dept (s) Current Status Comments #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 Training and Development staff in the Department are working on standardizing project management forms and templates. However, the Department also reports that additional resources may be needed to continue to make updates to its project management manual. Target Date: Jun-2026 (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
Implemented Public Works updated several technical construction specifications and details, and designated staff to regularly review and update the manual according to a quarterly schedule. The project is ongoing, and the Department’s efforts fulfill the recommendation’s intent by ensuring routine updates are conducted. #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 Department of Planning, Building and Code Enforcement has executed a new agreement with a vendor for tow administrator services. The responsibility of administering the program has shifted to the Police Department. The new software system went live in February 2025. As of August 2025, the Police Department has a new towing program manager. Once the new towing program manager is onboarded, the Department plans to conduct an analysis and provide a recommendation to the City Council regarding subsidized vehicle release fees. Target Date: Aug-2026 (Delayed From: Jun-2019)
#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.

FIRE / PD 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 purchased a vehicle for escorting personnel during hours of darkness in March 2023. The Fire Department reports that efforts to achieve security guard services through a vendor were unsuccessful due to the requirement that the security guard personnel undergo background checks through the Police Department. Due to security guard turnover, lack of responsiveness of security guard personnel during the background process, and failure to pass the background process, the Fire Department has determined that this concept is not feasible. The Fire Department intends to explore an alternative route to hire a temporary City position for this pilot project. Target Date: Jun-2026 (Delayed From:

Dec-2020)
Status of Open Audit Recommendations as of June 30, 2025 31 Report and Recommendations Dept (s) Current Status Comments #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 Partly Implemented In June 2024, Planning Building and Code Enforcement (PBCE) developed guidelines for staff to provide applicants with the initial City comment letter to ensure the public receives accurate information. The Department reported staff do not accept any future submittals from an applicant until they provide confirmation of the required on-site notice is posted. PBCE reports updates to Council Policy 6-30 has been deferred to create capacity within the Citywide Planning Group to complete the General Plan Four Year Review based upon direction received from City Council. The Department reports efforts to update Council Policy 6-30 will resume in June 2026, with a target completion date of December 2026. The comprehensive update is intended to encompass the remaining recommendations from this audit and fulfill obligations to update the Policy that were included in the City's 6th Cycle Housing Element. Target Date: Dec-2026 (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 In January 2020, a language map was incorporated into the AMANDA integrated permitting system to help staff identify predominant languages in project areas. The Department reports updates to Council Policy 6-30 have been deferred to create capacity within the Citywide Planning Group to complete the General Plan Four Year Review based upon direction received from City Council. The Department reports efforts to update Council Policy 6-30 will resume in June 2026, with a target completion date of December 2026. The comprehensive update is intended to encompass the remaining recommendations from this audit and fulfill obligations to update the Policy that were included in the City's 6th Cycle Housing Element. Target Date: Dec-2026 (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 Planning Building and Code Enforcement (PBCE), implementation of this recommendation would be included in a full review of Policy 6-30. The Department reports updates to Council Policy 6-30 have been deferred to create capacity within the Citywide Planning Group to complete the General Plan Four Year Review based upon direction received from City Council. The Department reports efforts to update Council Policy 6-30 will resume in June 2026, with a target completion date of December 2026. The comprehensive update is intended to encompass the remaining recommendations from this audit and fulfill obligations to update the Policy that were included in the City's 6th Cycle Housing Element. Target Date: Dec-2026 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of June 30, 2025 32 Report and Recommendations Dept (s) Current Status Comments #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.

PBCE Partly Implemented In September 2021, the Development Services Partners and the Information Technology Department completed the technical requirements that enhances the availability of information online. According to Planning Building and Code Enforcement (PBCE), full implementation of this recommendation would be included in a full review of Policy 6-30. The Department reports updates to Council Policy 6-30 have been deferred to create capacity within the Citywide Planning Group to complete the General Plan Four Year Review based upon direction received from City Council.

The Department reports efforts to update Council Policy 6-30 will resume in June 2026, with a target completion date of December 2026. The comprehensive update is intended to encompass the remaining recommendations from this audit and fulfill obligations to update the Policy that were included in the City's 6th Cycle Housing Element. Target Date: Dec-2026 (Delayed From: Dec-2021) #19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)
#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 created and piloted a screening tool with two agencies and four programs within the San José Youth Empowerment Alliance. The consultant adjusted the tool to align risk categories with risk levels identified by the screener. Parks, Recreation and Neighborhood Services (PRNS) reports implementing the risk assessment tool to screen participants for all Youth Intervention Services (YIS) programs starting in July 2023. In FY 2023-24, the tool was implemented by YIS programs and Bringing Everyone's Strengths Together (BEST) grant programs for high school age youth. Feedback was received on the tool's language and length.

BEST worked with the consultant on suggested edits and the revised tool was implemented in September 2024. PRNS reports that this updated tool will be used across BEST and all applicable youth intervention programs. BEST included their findings in the 2023-24 Annual Evaluation Report. YIS continues to work with a consultant for program evaluation of the 2024-25 program year and plans to report the findings to the Neighborhood Services and Education (NSE) Committee in May 2026.

Target Date: May-2026 (Delayed From: Jun-2021)
#19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)
#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 serves 18 school districts. Parks, Recreation, and Neighborhood Services (PRNS) has updated and executed agreements for 14 school districts: Alum Rock Union Elementary, Berryessa Union, Cambrian, Campbell Union High School, Campbell Union School (TK-8th grade), East Side Union High School, Franklin-McKinley, Fremont Union High School, Moreland, Santa Clara County Office of Education (alternative schools), Orchard, Evergreen, Mount Pleasant, and San José Unified. PRNS reports providing a draft agreement to Cupertino Union School District and meeting with the superintendent, but is still confirming whether they require any revisions. Agreements with Oak Grove, Union, and Morgan Hill School Districts are currently under review in the City's contract process. Once accepted, PRNS plans to submit the finalized versions for execution.

Target Date: Dec-2025 (Delayed From: Jul-2020)
Status of Open Audit Recommendations as of June 30, 2025 33 Report and Recommendations Dept (s) Current Status Comments #19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)
#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 Parks, Recreation and Neighborhood Services (PRNS) selected a consultant to lead the next evaluation of Bringing Everyone's Strengths Together (BEST) grantees and conduct the first evaluation of the Youth Intervention Services (YIS) programs. Due to cost savings requested for addressing the budget deficit, the evaluation consultant allocation was reduced by 60 percent, which delayed the start of YIS evaluation work until June 2025. At this time, YIS management has met with the consultant and finalized the scope of work. The consultant has scheduled focus groups with YIS staff, with evaluation tools and staff trainings planned for completion in December 2025. A PRNS Senior Analyst will assist on gathering data for the evaluation. Another key deliverable from the consultant's evaluation will be the YIS program participant survey results. PRNS anticipates that the full YIS evaluation will be completed during FY 2026-27, and a full report is scheduled to be presented at the Neighborhood Services and Education (NSE) Committee in Spring 2028. Target Date: May-2028 (Delayed From: Jul-2021)
#19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)
#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 Parks, Recreation and Neighborhood Services (PRNS) selected a consultant to lead the next evaluation of Bringing Everyone's Strengths Together (BEST) grantees and conduct an evaluation of the Youth Intervention Services (YIS) programs. Due to cost savings requested for addressing the budget deficit, the evaluation consultant allocation was reduced by 60 percent, which delayed the start of YIS evaluation work until June 2025. At this time, YIS management has met with the consultant and finalized the scope of work. The consultant has scheduled focus groups with YIS staff, with evaluation tools and staff trainings planned for completion in December 2025. A PRNS Senior Analyst will assist on gathering data for the evaluation. Another key deliverable from the consultant's evaluation will be YIS program participant survey results. PRNS anticipates that the full YIS evaluation will be completed during FY 2026-27, and a full report is scheduled to be presented at the Neighborhood Services and Education (NSE) Committee in Spring 2028. Target Date: May-2028 (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 City Clerk's Office has made updates to its Form 700 procedures for handling non-filers and is working on additional updates. Per the procedure, department liaisons are expected to run more frequent non-filer reports using the e-filing system.

The procedures also provide that the City Clerk's Office will send a monthly non-filer report to each department head and liaison. Liaisons will be responsible for updating the e-filing system including adding alternative contact information. The City Clerk's Office will follow-up with liaisons regarding the status of both employee and consultant non-filers. The City Clerk's Office will also be responsible for referring non- responsive filers to the FPPC for enforcement. Once the procedures address the standard process for assessing late fines for non-filers and the referral to the FPPC, this recommendation will be considered implemented. Further, the Office of the City Clerk reports that changes to Form 700 laws occurred on January 1, 2025, and thus staff continue to work with the FPPC to understand the new rules and how it impacts procedures. Staff expect to update the procedures accordingly. Lastly, the Office of the City Clerk reports that it is switching software providers for its e-filing system.

Target Date: Feb-2026 (Delayed From: Jun-2020)
Status of Open Audit Recommendations as of June 30, 2025 34 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 Based on the projected costs of a project that was underway at the time of the audit there was concern that the undergrounding fee was not a fair estimate of the costs of utility undergrounding projects. While Public Works had anticipated updating the undergrounding fee based on recent project costs, two projects were delayed because of COVID-19, unforeseen utility congestion, and design issues. Staff anticipates one current project to be completed in Fall 2025 and another in late 2026, and intends to use the costs in these projects to assess the undergrounding fee. The first project experienced numerous procurement delays, and the second project is currently delayed due to easement needs for utility substructures. Meanwhile, Public Works intends to continue to update the underground fee per the Construction Cost Index, as has been done annually. Target Date: Jun-2027 (Delayed From: Jun-2021) #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 Fleet Management completed updates to City Policy Manual 1.8.1, which provide guidance on utilization for departments and requirement for partner departments to report out utilization annually. The proposed edits have been sent to senior management for review. Target Date: Dec-2025 (Delayed From: Mar-2022) Potential Monetary Benefit: 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
#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, and
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 its Technology Services team has developed dashboards that will help the Division and customer departments monitor preventive maintenance (PM) compliance. According to the Department, the current PM compliance target is 80 percent completion within 10 days of notice. The Department reports that because of vehicle and equipment shortages, users have a higher workload and bring in vehicles late. Target Date: Dec-2025 (Delayed From: Dec-2021) #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 Fleet continues to work with Technology Services to develop additional internal reports to monitor the availability of specific assets. Currently, Fleet Management has reports for Airport Shuttle Bus availability, Animal Care & Service Kennel Truck availability, and Electric Vehicle charging stations. Fleet plans to create future internal reports to enhance performance monitoring, but is currently focused on backlogged work. Target Date: Dec-2025 (Delayed From: Jan-2023) Status of Open Audit Recommendations as of June 30, 2025 35 Report and Recommendations Dept (s) Current Status Comments #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 that it has shifted to having an analytics module created by its Technology Services team due to vendor delays. Fleet Management has created internal downtime reports that can run via Access and plans to work with Technology Services to automate the report. The Division is currently focused on backlogged work. Target Date: Dec-2025 (Delayed From: Mar-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, and
c) Pulling reports on active assets, preventive maintenance compliance, vehicle utilization, work orders, and/or others as necessary.

PW Partly Implemented Public Works has finalized the classification of repair reason IDs in its fleet management software and has begun pulling reports, and that staff are making progress on the standardization of data entry. The Department reports that it is working on a Standard Operating Procedure, and expects to finalize it in October 2025. Target Date: Oct-2025 (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, although market conditions have slightly improved. Target Date: Jan-2026 (Delayed From: Jun-2022) #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 Planning, Building and Code Enforcement (PBCE) reports that the Planning Division has created a draft work-in-progress report structure which is currently under review before being formally integrated into the work-in-progress reporting tool. Additionally, staff report they are assessing existing open fees to evaluate how inflight permits and open invoices will impact the report. The Division expects to submit the report requirements to the Information Technology Department (ITD) to be created before the end of the calendar year. Target Date: Dec-2025 (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; time tracking and data collection is ongoing. The Department reports staff are focused on correlating tracked time with funds spent to provide more meaningful insight into workload management. Public Works intends to continue to coordinate between departments to develop a consistent methodology for all departments to ensure milestones align with project timelines to estimate current work in progress. Target Date: Dec-2025 (Delayed From: Jun-2020) Status of Open Audit Recommendations as of June 30, 2025 36 Report and Recommendations Dept (s) Current Status Comments #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 In January 2024, The Finance Department reported they had successfully collaborated to complete necessary accounting adjustments, reclassifying roughly $9 million from revenues to liabilities across various funds. This reclassification was performed in accordance with the sampling methodology developed by the City's external financial auditor. To ensure regulatory compliance and budgetary stability while considering community cost impacts, the City Administration has drafted a revised Council Policy 1-18 around development services work-in-progress reserve funds. Target Date: Dec-2025
#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 Implemented In January 2024, the Finance Department established a cross-department team comprising Planning, Building and Code Enforcement, Public Works, Fire, Finance, and the City's external financial auditor to determine the proper accounting treatment of development fee revenues. The Finance Department reports they have successfully collaborated to complete the necessary accounting adjustments, reclassifying roughly $9 million from revenue to liabilities across various funds. This reclassification was performed in accordance with the sampling methodology developed by the City's external financial auditor. Staff report the three departments have been advised to continue applying this methodology in future fiscal years using the most current and available permit population data to ensure consistency and accuracy in financial reporting.
#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 Since 2010, consultant studies have repeatedly examined alternative scheduling for the Department, finding that such changes could improve response times and/or increase proactive work. In 2023, the Department contracted with a consultant for a redistricting and staffing deployment analysis, which was completed in 2024 and included alternative schedule recommendations. In March 2025, the Department shared some of the findings in an information memorandum to City Council. Per the memorandum, the Department reported that it had either completed or was working on 29 of the 81 recommendations made. It further identified four additional priorities.

These included: changing from a 16-district patrol structure to a 12-district structure, creating a detention services unit staffed with a new detention officer classification, transitioning to a district-based deployment system, and continuing and potentially expanding the current practice of limited deployment of two-person patrol cars. The Department reports that it will review options to present information on the recommended alternative schedules to City Council. Target Date: Dec-2025 (Delayed From: 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 policing positions, such as foot patrol.

PD Implemented In June 2025, the Department reported on a finalized Community Engagement Plan to the City's Public Safety, Finance and Strategic Support Committee. The Plan made 29 recommendations around the following: 1) Strategic Plan Revisions, 2) Officer Expectations and Support, 3) Enhanced Community Engagement Functions, 4) Community Cooperation, 5) Internal Coordination, 6) Enhanced Web and Social Media Presence, 7) Events and Programs, and 8) Ongoing Tracking and Evaluation.

The Department also created a Community Engagement Team within the Crime Prevention Unit as the primary contact for coordinating the Department's community engagement activities on an ongoing basis.

Status of Open Audit Recommendations as of June 30, 2025 37 Report and Recommendations Dept (s) Current Status Comments #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 Implemented
-
Priority
The Police Department issued a memo, Memo #2023-23, which outlined overtime controls for the Department, described when follow up and report writing can be conducted on overtime, limited discretionary overtime, and provided that Captains and Division Managers are to report out on the use of overtime in their division on a quarterly basis. The Department also has created a new overtime dashboard which is to be updated each pay period. Supervisors can look at the dashboard and drill down to specifics by employee, unit, overtime code, or other data inputs. Managers can now review overtime, including how it is being used, and review its overtime policies in consideration of the current staffing issues. Finally, beginning in 2025, the Department further restricted overtime usage by limiting attendance of some personnel at community events on days off, and requiring prior approval of overtime by personnel not assigned to the Bureau of Investigations and the Special Operations Division. These requests now need prior approval from the Chief of Police. As a result of these added controls, we consider this recommendation implemented. We should note that at the time of this update, overtime costs had continued to rise, and the City Auditor's Office had begun a follow up audit on Police Staffing, Expenditures, and Workload which could result in additional analysis and recommendations around overtime.
#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 Implemented
-
Priority
The 2024-25 Proposed Budget eliminated 6.0 Senior Community Service Officer (CSO) positions and 1.0 Supervising CSO position to realign the CSO program.

According to the Police Department, eliminating positions dedicated to strict supervision allowed all CSOs to be deployed in the field. In order to increase its community presence in the Downtown San José area, the Department has assigned six Community Service Officers to Downtown to help serve in an "ambassador" role with their presence and visibility. According to the Department, staff assignments of CSOs are reviewed every six months and are based on previous call data. As recommended by a redistricting analysis conducted by an outside consultant, the Department moved the CSO program supervision to field patrol to build teamwork and coordination. CSO supervision is now through sergeants. In April 2025, the Department piloted a change to CSO schedule to better align with patrol schedules.

The Police Department anticipates that if the pilot is successful, it will need to meet- and-confer with the appropriate bargaining unit prior to full implementation. #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 Partly
Implemented
-
Priority
Real Estate reports that their database software platform has been developed and launched with the capability to store information needed for annual reporting on the City's vacant land inventory. Real Estate plans to report on the vacant lands inventory annually at the Community and Economic Development Committee starting in January 2026. Target Date: Feb-2026 (Delayed From: Jan-2024) Status of Open Audit Recommendations as of June 30, 2025 38 Report and Recommendations Dept (s) Current Status Comments #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 Partly Implemented Real Estate reports that their database software platform has been developed and launched with optimal standardization features for data across City departments. Real Estate is in the process of uploading Public Works' enterprise land and facilities database into their platform as of July 2025. Next, Real Estate plans to integrate databases from Transportation (DOT), Parks, Recreation and Neighborhood Services (PRNS), and potentially other departments as well. As part of this process, Real Estate is identifying responsible departments for vacant properties, which will set the foundation for ongoing maintenance coordination. Target Date: Dec-2025 (Delayed From: Jan-2024)
#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.

PBCE / PD Implemented
-
Priority
(a) Planning, Building, and Code Enforcement (PBCE) completed the review of the Business Tax Certificates and Massage Therapy Council lists to create a roster of potentially eligible businesses. From this review, they added 338 businesses to the outreach program. PBCE and the Police Department plan to update the roster quarterly.
(b) PBCE completed the Phase 1- Outreach Strategy, Procedures, and Materials Development and began Phase 2 - Outreach and Education to businesses in April 2025 including an Informational and Program Enrollment Notification Letter sent in batches requiring they submit an application within 60 days or contact the Police Department if requesting exemption from the program. Phase 3 - Follow up and enforcement including investigation and enforcement if no application or response is received after 60 days began in June 2025. This process will be refined until all businesses identified on the roster have received outreach, education, follow up, and enforcement as appropriate. Once this process is completed, staff plan to implement it on a bi-annual or annual basis as appropriate in partnership with the Police Department.
#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 Implemented
-
Priority
The Police Department's new permitting software went live in April 2025. The new system is automated and notifies businesses 60 days prior to their permit expiring.

Businesses can apply, renew, and pay the permitting fees online. #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 Partly Implemented a) In December 2024, PBCE implemented two new supervisor dashboard reports, a Program Actions and a Pipeline Report, to allow supervisors to track and better manage inspector workload and performance. Staff has also implemented a new Escalating Enforcement Policy that provides guidelines for compliance timelines, and standard process and timelines for escalating cases through the enforcement process. A training on the new policy is expected to be held in the Fall 2025. Once the training is completed, the Escalating Enforcement Policy will be incorporated into annual performance evaluations for inspectors. Target Date: Oct-2025 (Delayed From: Jul-2025)
Status of Open Audit Recommendations as of June 30, 2025 39 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 Partly Implemented PBCE plans to review and revise its employee expectations and incorporate into performance evaluations based on current division policies and procedures, objective criteria, and performance measures. Target Date: Dec-2025 (Delayed From: Jun- 2025)
#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 Environmental Services Department (ESD), staff investigated using the Business Process Automation system to manage service orders with online forms.

However, according to ESD, there is not a current method to automatically sync data between the City's utility billing system and an online form without significant investment. Staff report that they have explored options but it cannot be done due to current system constraints. ESD intends to address this with an update to the City's utility billing system expected to be completed in 2026, and Advanced Metering Infrastructure (AMI) that may include a mobile work order module, anticipated to be completed in 2027. Target Date: Jun-2027 (Delayed From: Jun-2022) #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 was to accurately measure the timeliness of responses to customer service requests. The Environmental Services Department (ESD) reports that an update to the City’s utility billing system anticipated for completion in 2026, and implementation of an Advanced Metering Infrastructure (AMI) system anticipated for completion in 2027, may result in further work order and response tracking. Target Date: Jun-2027 (Delayed From: Dec-2023) #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 a) Planning, Building and Code Enforcement (PBCE) developed a training plan that includes topics such as a high-level overview of the California Environmental Quality Act (CEQA) review process in San José, developing project descriptions, project and time management best practices, and others. PBCE updated the Environmental Resources Intranet page to include updated information on the CEQA process for public projects, including the process for obtaining CEQA references for City Council memos and links to helpful resources. PBCE reports that it has continued to host bi- monthly training for staff.
b) Some Environmental Review planners started reviewing preliminary review applications for development projects. PBCE reports that this is a first step towards exposing these planners to the broader development review process and plans to further expose the Environmental Review Team to this process. PBCE anticipates expanding the model to include more complex environmental reviews for entitlement planners once new Environmental Review Guidelines and Templates are complete.

Target Date: Feb-2026 (Delayed From: Dec-2023)
Status of Open Audit Recommendations as of June 30, 2025 40 Report and Recommendations Dept (s) Current Status Comments #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) Planning, Building and Code Enforcement (PBCE) reports that the Environmental Review Team has been focusing on improving time tracking in AMANDA. Per PBCE, planners are now expected to enter their AMANDA hours and submit it weekly to their supervisor, which has resulted in an improvement in the number of hours captured.

PBCE plans to update the AMANDA 7 guidelines after updates are made to the folder used for capturing environmental review (ENV) in AMANDA. In the interim, PBCE prepared a guideline for timecard and AMANDA data entry. b) PBCE has held interim training on AMANDA 7. PBCE reports its current goal is to improve time tracking in AMANDA within the current system until the AMANDA 7 ENV folder is updated. According to PBCE, due to competing priorities with the Environmental Guidelines and Thresholds Guide, budget considerations, and the current workload for Information Technology Department staff, work on updates to the ENV folder is not anticipated to start until the end of 2025 at the earliest. Target Date:

Jun-2026 (Delayed From: Dec-2023)
#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) Planning, Building and Code Enforcement (PBCE) developed templates in Excel to use for project schedule planning by staff and environmental consultants. These have been posted on the Environmental Review Team SharePoint site and include City target review times for environmental impact reports (EIRs), negative declarations/mitigated negative declarations, and initial study/addendums. Templates are expected to be shared with consultants during the scope of work review or the project kick-off meeting.
b) PBCE executed a service order with a consultant in May 2024 for preparation of an Environmental Guidelines and Thresholds Guide and a set of standardized templates for common environmental review documents. PBCE reports that Planning is actively working with the consultant on these items, and that the focus over the past few months has been on finalizing the templates for an EIR and Initial Study. According to PBCE, the adoption of California Environmental Quality Act (CEQA) streamlining laws on July 1, 2025 (AB 130 and SB 131) will require an update to this work to include new documents for implementing these laws. PBCE reports completion of this work may be delayed due to State law changes and staff turnover. Target Date: Dec- 2025 (Delayed From: Jun-2023)
Status of Open Audit Recommendations as of June 30, 2025 41 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) Planning, Building and Code Enforcement (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. PBCE published a policy on Environmental Review Procedures, which sets expectations for coordination between the consultant and the City, including responsibility for schedule maintenance and consequences for non-performance. In addition, PBCE is working to finalize another policy that also includes expectations for the consultant. PBCE reports these policies are interim steps before the publication of the Environmental Consultant Guidelines. PBCE executed a service agreement with an environmental consultant in May 2024 to assist in creating final Environmental Consultant Guidelines.
b) Per a memorandum from the Director of PBCE in October 2022, all applications for private development that require California Environmental Quality Act (CEQA) analysis must use a consultant on the City's Approved Environmental Consultants list starting 1/1/2023. The updated City List of Approved Environmental Consultants was published on the City’s website in April 2025. In addition, Planning updated the policy for when an applicant is required to use the list and published it on the website. At the time of the audit, use of a City approved consultant was optional. The audit found that, since 2019, negative declaration/mitigated negative declaration projects with an approved consultant were completed about three months faster than projects with other consultants. PBCE held an Environmental Consultants Roundtable in April 2025. Target Date: Apr-2026 (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
-
Priority
In FY 2021-22, staff drafted interim Environmental Consultant Guidelines to help consultants develop their scope of work and schedule. Planning, Building and Code Enforcement (PBCE) reports that staff also reviewed guidelines from other jurisdictions that have thresholds of significance and expectations for quality of work and timeliness. PBCE has engaged an environmental consultant to assist with drafting and finalizing Environmental Consultant Guidelines with thresholds of significance and updated templates. According to PBCE, the plan was to complete the Guidelines by June 2025. However, PBCE reports the work is more extensive than previously anticipated and the Guidelines will need to be amended to account for changes to the California Environmental Quality Act (CEQA) from new state-level streamlining laws (AB 130 and SB 131). PBCE also reports that staff turnover may also impact timing of completion (see recommendation 22-02 #06.b). Target Date:

Dec-2025 (Delayed From: Jun-2023)
Status of Open Audit Recommendations as of June 30, 2025 42 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 expects that collecting higher base fees will improve revenue and reduce the number of invoices for additional hours worked above the base fee. The Planning hourly rate increased from $362/hour to $398/hour with the new fee schedule. PBCE anticipates that this will improve revenue for Environmental Review hours worked beyond those covered by the base fee. The adopted FY 2025-26 Budget also includes a general fund Planner IV position to assist the Environmental Review team with implementing process improvements, including improvements to the cost recovery model. PBCE plans to continue to review the cost recovery model and assumptions to ensure a sustainable funding structure is in place to fund operations. Target Date:

Jun-2026 (Delayed From: Jun-2025)
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 According to Planning, Building and Code Enforcement (PBCE), recruitment for a Principal Office Specialist has been put on hold because of budget considerations.

PBCE reports that a support staff position for the Director’s office is being filled, and the Department is discussing the possibility of allocating some administrative tasks from the Environmental Review Team to this staff member (particularly invoicing).

Target Date: Jun-2026 (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.

Status of Open Audit Recommendations as of June 30, 2025 43 Report and Recommendations Dept (s) Current Status Comments #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 Partly Implemented Planning, Building and Code Enforcement (PBCE) presented a report to the Community and Economic Development Committee in February 2025 on California Environmental Quality Act (CEQA) streamlining efforts with a focus on exemptions and downtown projects. The report outlined strategies to further streamline CEQA review for downtown projects. The FY 2025-26 Budget approved some funds for CEQA streamlining work, particularly for expanding the ministerial ordinance for certain types of residential projects. PBCE also reports that work continues on the Five Wounds Urban Village Plan. Per PBCE, Planning paused working on a policy for program-level environmental clearance to evaluate the impact of the new CEQA streamlining laws on operations and future planning efforts. According to PBCE, under the new laws, many residential projects that meet the General Plan and zoning will be exempt from CEQA review with limited technical analysis, which would mean a more streamlined process than the original plan. As the implications of the new laws become clearer, Planning plans to draft a policy for program-level analysis. PBCE reports that Planning is also starting the General Plan Four-Year review process, which will include a new program-level environmental impact report (EIR). PBCE expects that completion of this EIR will provide future CEQA streamlining for projects that would not qualify for an exemption under the new state laws. Target Date: Dec- 2025 (Delayed From: Dec-2022)
#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 Implemented
-
Priority
The Finance Department finalized a City Grants Acquisition, Management, and Compliance Policy in May 2025. The policy covers applying for grants, monitoring, closeout, preparing for audit, and other relevant information. It is available to City staff on the Finance Department's Intranet site.
#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 that staff has drafted edits for City Policy Manual 1.8.1 and sent it to senior management for review. Target Date: Dec-2025 (Delayed From: Nov- 2022)
Status of Open Audit Recommendations as of June 30, 2025 44 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 established a new electronic request and approval form through SmartSheets. The Department sends quarterly reminder emails to departments to update the list of individuals assigned take-home vehicles. The emails also ask for records relating to the actual number of call-backs, position and unit data associated with individuals with take-home vehicles, one-way commute mileage data, and assessments of the cost-benefits of providing mileage reimbursements or auto allowances rather than a take-home vehicle (where possible). According to staff, the expectations for these periodic department updates have been added to the draft CPM 1.8.1 Policy revision for review by the Public Works senior management and other stakeholders for review. Target Date: Dec-2025 (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 completed a telematics migration that allows all take-home assets, with the exception of certain units, to have remote visibility. Public Works reports that it is in the process of updating the City Policy Manual (CPM 1.8.1) requiring departments to self-monitor take-home vehicle usage. Target Date: Dec-2025 (Delayed From: Apr- 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 that staff have drafted an update of CPM 1.8.1 and sent it to the senior staff for review. Target Date: Dec-2025 (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 Implemented The Finance Department revised the calculation of taxable fringe benefits (removed the call back events from commute milage) and worked 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. Fleet identified a location in the asset management system and updated each vehicle to identify and automate the report.

Status of Open Audit Recommendations as of June 30, 2025 45 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 / FIN Implemented
-
Priority
The Office of Emergency Management (OEM) updated the City’s Emergency Operations Plan (EOP) and support annexes to reassign Purchasing and Procurement to different functions. This reassignment separates staff making purchases from staff requesting purchases in the Logistics Section. The EOP was also updated to reference a new Cost Recovery Document (CRD), developed by the Finance Department. The CRD formalizes relevant procurement tools developed during the COVID-19 emergency. The document includes checklists for staff to explain why a procurement method was selected, identify attempts to take affirmative steps to use women and minority businesses when possible, and document the cost- price analysis performed when applicable. The CRD is posted on Finance’s SharePoint Hub. In the case of an emergency response, Finance and OEM are responsible for ensuring staff are familiar with the Cost Recovery Document and City Grants Management Policy (see recommendation 2206-04).
#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 Implemented The Finance Department finalized a City Grants Acquisition, Management, and Compliance Policy, which is posted on Finance’s SharePoint Hub and referenced in the Emergency Operations Plan. The policy refers to Uniform Guidance as a key resource for federal grants management. Under the policy, awarded departments must regularly monitor grant-funded activities to ensure compliance with grants.

Monitoring activities may include reviewing grantees’ financial and programmatic reports and relevant documentation. Per the policy, staff should use desk reviews to determine if subrecipients are high-risk and require an on-site monitoring review (site visit). The policy states that potential steps during a site visit include comparing expense reports, reimbursement requests, receipts, and other financial reports. #22-08 Tree Removals and Replacements
#05 To verify that trees are planted according to replacement requirements for development permits, the Department of Planning, Building and Code Enforcement should develop a process for staff to collect a certification of substantial completion of landscape and irrigation installation prior to the issuance of a certificate of occupancy, as described in the Municipal Code.

PBCE Partly Implemented According to Planning, Building and Code Enforcement (PBCE), Planning has updated its submittal guidelines to include requirements for landscape and irrigation plan sets to be submitted as part of the Development Review Entitlement process.

PBCE, in coordination with other Development Review Partners, has determined that the construction of landscaping and irrigation may occur with several different applications to the City. Projects associated with Building Permits will require a self- certification upon completion of the Building Occupancy Permit. PBCE reports Planning has created a Certificate of Compliance form which will need to be submitted prior to issuance of a Certificate of Occupancy. PBCE reports that the Development Review Partners will coordinate how to ensure compliance for stand- alone landscaping work that does not trigger a building permit. Target Date: Jun-2026 (Delayed From: Jan-2025)
Status of Open Audit Recommendations as of June 30, 2025 46 Report and Recommendations Dept (s) Current Status Comments #22-08 Tree Removals and Replacements
#06 To sufficiently recuperate lost canopy due to tree removals, Planning, Building and Code Enforcement, in coordination with the Department of Transportation, should:
a. Review the tree replacement ratio to determine if it is appropriately meeting the goals of the community forest program, b. Revise the tree replacement policy to include considerations for canopy size and optimal species of replacement trees, and c. Provide permit applicants with guidance for appropriate tree selection to meet the replacement policy requirements and to best ensure tree survival.

PBCE /
DOT
Partly Implemented Planning, Building and Code Enforcement (PBCE) reports that staff worked with the Department of Transportation (DOT) to review the ratios, canopy size, and tree replacement policy. PBCE, in coordination with DOT, has increased the off-site tree replacement fee from $775 to $1,000 per tree. They determined that current replacement ratios are appropriate for meeting the goals of the community forest program. Based on development needs and the types of trees typically removed, DOT staff report that changing the replacement ratio to be based on canopy size would not have a significant impact. DOT staff require certain species of trees to be planted onsite and report that they limit substitutions. Additionally, staff have drafted a list of the best species selection and tree planting to promote the survival of trees in various urban environments. Further refinements will be done to provide more information, such as grow spaces and height, to help planners and applicants further utilize the guidelines. Target Date: Jan-2026
#22-08 Tree Removals and Replacements
#08 The Department of Transportation should create metrics to measure progress towards the City’s tree planting objectives, such as the number of tree removals, tree replacements, planting efforts, and cost-effectiveness of different planting approaches.

DOT Implemented Working with the City Manager’s Office and the Budget Office, the Department developed new metrics to measure progress toward City planting objectives. The new metrics are included in the FY 2025-26 Proposed Operating Budget. New metrics include the percent of residents rating trees along neighborhood streets in “good” or “better” condition, percent of customers rating tree services “good” or “better,” and the percent of tree emergency requests responded to within 24 hours. Additionally, the Proposed Operating Budget includes metrics that track the number of tree emergency responses, pruning permits issued, tree removal permits issued, city planted trees, and tree inspections completed.
#22-08 Tree Removals and Replacements
#10 To ensure the City is able to increase the scale of tree planting and grow the canopy effectively, the Department of Transportation should work with the Community Forest Advisory Committee to develop an outreach plan, including metrics to determine success of the outreach program.

DOT Partly Implemented Through a federal grant with the U.S. Forest Service, the Department of Transportation (DOT) developed a multi-year outreach campaign to encourage residents to request new street trees to be planted in the public right of way. The campaign is intended to be a multi-year effort, developing translated outreach materials, messaging, and methods in year one, with the goals of contacting around 5,600 property owners in year two, and an additional 5,600 property owners in year three to facilitate the planting goal of 2,800 new street trees. In January 2025, DOT was notified that the grant funding had been frozen, but has since received tentative confirmation that the grant funding is intact. DOT has begun working on developing outreach materials, messaging, and methods of reaching property owners with messages about planting, pruning, ongoing tree care. Target Date: Jun-2026 (Delayed From: Dec-2023)
#22-09 Firearm Regulations
#02 To provide consistency and clarify responsibilities, the Police Department should update the Duty Manual to reflect the different types of gun violence restraining orders, and develop procedures on the current process for each, including staff responsibilities on disseminating communications on applicable administrative or law updates in a timely manner.

PD Implemented In July 2025, the Police Department updated sections of the Duty Manual that clarify responsibilities and differences between the different types of restraining orders. The Duty Manual now provides clarity between a gun violence restraining order (GVRO) and an ex-parte gun violence protective order (GVEPO) including responsibilities for issuance of these orders and entering them into the California Restraining and Protective Order System (CARPOS).

Status of Open Audit Recommendations as of June 30, 2025 47 Report and Recommendations Dept (s) Current Status Comments #23-01 San Jose Conservation Corps
#01 To better assess program effectiveness, Parks, Recreation and Neighborhood Services should include performance metrics related to timeliness or effectiveness of work in its next agreement with the Conservation Corps for the BeautifySJ program.

PRNS Partly Implemented Parks, Recreation and Neighborhood Services (PRNS) reports that BeautifySJ established a performance measure for 80 percent of clean-ups to be completed on- time and met with the San Jose Conservation Corps (SJCC) in August 2023 to discuss the new measure. BeautifySJ also reports that in October 2023, staff met with SJCC leads to review training and reporting requirements for their staff, and outlined how to properly file reports, request equipment, perform billing, report on tonnage, and sort through collected items. The Department reports that the FY 2025- 26 Direct Discharge agreement will include the new performance metric requirements.

Target Date: Oct-2025 (Delayed From: Jul-2024)
#23-03 Integrated Waste Management Enforcement Program
#06 The Environmental Services Department should procure a new software solution for the Integrated Waste Management team that allows for streamlined data entry and management to free up time for inspectors to spend more time in the field.

ESD Not Implemented The Environmental Services Department (ESD) reports they have coordinated with the Information Technology Department and the Finance Purchasing Division to develop a Request for Proposal to procure a new Environmental Enforcement Data Management System (EEDMS) for the Integrated Waste Management and Watershed Protection's enforcement teams. According to the ESD, a vendor has been selected and project implementation is slated to begin in Fall 2025 with completion targeted in June 2026. Target Date: Jun-2026 Potential Monetary Benefit: We estimate that reducing the time required for data entry and administration would free up one hour of inspector time per day. The annual savings of four inspectors having one more hour per day would be $77,000. #23-04 Housing Performance Measures
#01 In conjunction with the Administration’s initiative to revise performance measures in the Operating Budget, and implement the City Focus Areas, the Administration and Housing Department should, using logic models or some other means:
a) Revise the Housing Department’s performance measures in the City’s Operating Budget to reflect better indicators of performance for the Department, and
b) Reduce and align the number of performance measures
across the City’s Operating Budget and other Housing-related performance reports or dashboards (to the extent allowable based on funding sources).

HSG Partly Implemented The Housing Department has consolidated the interim housing management goals into the Emergency Interim Housing Dashboard, and the housing production and preservation goals into the Housing Production Dashboard. Both dashboards are now live. Housing also updated performance measures that are included in the Operating Budget measures. Housing plans to make further revisions to its measures to align housing production and homelessness metrics in the annual budget with those on the dashboards. Target Date: Oct-2025 (Delayed From: Jun-2025) #23-04 Housing Performance Measures
#02 To ensure consistency and reliability of performance measures, the Housing Department should document
methodology for measures in the Operating Budget and other year- over-year reports and dashboards.

HSG Partly Implemented After aligning the Operating Budget measures with those in the dashboards and City Focus Areas (see recommendation #23-04 #01), Housing plans to update the methodology sheets. Target Date: Oct-2025 (Delayed From: Jun-2025) Status of Open Audit Recommendations as of June 30, 2025 48 Report and Recommendations Dept (s) Current Status Comments #23-07 Residential Building Permits
#02 In conjunction with the long-term staffing strategy, to ensure that the Building Division has the resources needed to
accommodate ongoing workload, Planning, Building and Code Enforcement should reassess the assumptions in its permit fee model and update and document current staffing assumptions related to the expected time necessary for staff to complete work, vacancy rates, dedicated ADU staffing, use of consultants for residential plan review, estimated workload volume, and use of reserves.

PBCE /
CMO
Not Implemented Planning, Building and Code Enforcement is currently analyzing the workload and capacity for residential building permits, specifically for new Accessory Dwelling Unit (ADU) construction to accurately document staffing assumptions. Following this step, the department reports it will address the remaining parts of the recommendation, including analyzing the permit fee model, and updating the staffing assumptions related to vacancy, workload, and the use of reserves. Target Date: Dec-2025 (Delayed From: Sep-2024)
#23-07 Residential Building Permits
#03 In order to ensure consistency of plan review fees, Planning, Building and Code Enforcement should:
a. Provide ongoing training to Plan Reviewers on charging actual time, even when hours spent exceed the initial estimates.

Further, the training should include whether Senior Engineers may charge time to customers for oversight and coordination when plan reviews are completed by consultants.
b. Work with the Information Technology Department to adjust plan check fees in AMANDA to the current fiscal year adopted fee rates.

PBCE /
ITD
Partly Implemented Planning, Building and Code Enforcement (PBCE) implemented a policy clarifying billable and non-billable time for plan review staff, including Senior Engineers. PBCE reports that a team in the Information Technology Department (ITD) has completed the programming updates in the AMANDA system to assess the current fee rate when additional plan review fees are billed. The changes are currently being tested to ensure the updates are complete and will then be deployed into production. Target Date: Oct-2025 (Delayed From: Sep-2024)
#23-07 Residential Building Permits
#09 In order to make current appointments more efficient and reduce the likelihood of customer no-shows, Planning, Building and Code Enforcement should:
a. Enforce its appointment cancelation policy for applications submitted without required documents that have been
unresponsive to contact by Permit Center staff;
b. Formalize a queuing process to make canceled
appointments available to future appointment holders who have uploaded application materials early; and
c. Educate customers on having a successful permit and plan review experience through outreach, recorded webinars, and training brochures on required steps, forms, fees, and
communication methods.

PBCE Implemented a. With the launch of self-start applications and a new project management software in October 2023, Planning, Building and Code Enforcement (PBCE) removed the requirement for most intake appointments with a Permit Specialist. Projects submitted through expedited review lines, such as residential express, continue to require an appointment to conduct plan review for qualified projects at the time of intake.

Applicants are required to submit all relevant documents prior to the appointment, and the failure to do so will lead to the cancelation of the appointment. PBCE sends a reminder email to upload documents and cancels the appointment if the required documents are still not uploaded. Applicants are notified when their appointment is canceled.
b. Because Residential express appointments are not canceled often, PBCE will make the canceled slots available to everyone, rather than limiting them to those with future appointments.
c. To help ensure a successful permit intake, plan review, and issuance experience for customers, the Department added written instructions and tutorial videos on SJePlans, such as how to upload application materials and respond to plan review comments. Building held its annual open house event in May 2025, where staff were available for questions from the public and presented on various topics, such as tips for accessory dwelling unit projects.

Status of Open Audit Recommendations as of June 30, 2025 49 Report and Recommendations Dept (s) Current Status Comments #23-07 Residential Building Permits
#10 To standardize current permit processes, Planning, Building and Code Enforcement should develop standard operating policies for the Permit Center on assigning projects for permit issuance, follow-up on outstanding fees, and guidance on forwarding projects to the appropriate Development Partners.

PBCE Partly Implemented Planning, Building and Code Enforcement (PBCE) has created a draft policy for the Permit Center team for assigning projects for issuance and forwarding projects to appropriate Development Partners. The procedures would apply to standard projects that go through SJePlans, as well as select projects that do not use SJePlans. Once implemented, PBCE plans to train staff to adhere to these standards and place these documents in its Policy and Procedure Hub to ensure up-to-date access by all team members. Target Date: Oct-2025 (Delayed From: Sep-2024) #23-07 Residential Building Permits
#13 To improve communication and outreach to Permit Center customers, Planning, Building and Code Enforcement should update the website to remove redundancies, clearly differentiate service lines by clarifying expectations for each Permit Center line or reducing the number of “lines”, and providing clear instructions on the permit process.

PBCE Implemented Planning, Building and Code Enforcement (PBCE) reduced the number of service lines by processing most residential projects online and through walk-in services.

PBCE no longer requires appointments for residential projects with the exception of Residential Express applications, which are limited in scope and can be processed on the day of the appointment. The current PBCE website clearly differentiates between available service types and has removed redundancies in ADU-related information. #23-07 Residential Building Permits
#15 To maximize language accessibility and comply with the City’s Language Equity Policy & Guidelines, Planning, Building and Code Enforcement should:
a. Include language translation options for the sjpermits.org website and phone lines, and
b. Develop a process to identify and prioritize vital documents for translation related to the residential permit process in accordance with the policy.

PBCE Not Implemented
-
Priority
a. Planning, Building and Code Enforcement (PBCE) plans to work with the Information Technology Department (ITD) to add translation options to SJPermits.org and its phone lines. PBCE reports that the SJPermits.org portal update timeline has been extended for ITD to accommodate other major systems upgrades. b. PBCE developed a draft policy on steps staff should take when requesting translation and interpretation services for project outreach and communication. PBCE reports that staff are creating a process to identify and prioritize vital documents for translation to include in this policy. Target Date: Dec-2025 (Delayed From: Dec- 2024)
#24-01 Non-Management Performance Appraisals
#05 To streamline the non-management employee performance appraisal process, the Human Resources Department should work with the Information Technology Department to implement automated workflows, which could include routing of appraisals for signatures within departments, routing of appraisals to the Human Resources Department for data entry and filing, and notifications for upcoming appraisals.

HR Partly Implemented According to the Human Resources Department (HR), work had begun to automate the Non-Management Performance Program (NMPP) appraisal form through the same process as the Management Performance Program, but staff report finding challenges with the system that would not be conducive for the NMPP appraisal process. HR, the Office of Employee Relations, and other departments plan to reassess the entire non-management appraisal process, including the form, key elements, platform, process, and procedures. Target Date: Jun-2026 Status of Open Audit Recommendations as of June 30, 2025 50 Report and Recommendations Dept (s) Current Status Comments #24-02 Language Accessibility
#01 To ensure continued progress in meeting the City’s Customer Service Vision and Standards, the Administration should develop mechanisms and procedures to monitor language
accessibility of common points of customer contact across departments, including phone trees, translations of vital documents, and signage posted at City facilities.

CMO Implemented In 2023, the Office of Communication's Language Access Manager began conducting site visits at City facilities to offer language accessibility support. In partnership with the Disability Affairs Officer from the Office of Racial and Social Equity, the Office of Communications began the next round of site visits in 2024 to ensure compliance with the City’s Language Equity Policy and Guidelines and the Americans with Disabilities Act. There were 26 site visits to City facilities in 2024 and site visits continued in 2025, with a remaining 12 expected to be completed by Fall 2025. Going forward, site visits will be expected to occur every 18 months. The Language Access Manager developed a Site Visit Standard Operating Procedure (SOP) that includes a checklist to monitor language accessibility, including signage. Additionally, the Language Access Manager developed a Phone Tree SOP that provides staff with three options for translating phone trees. The Translation SOP was also updated to provide staff with additional guidance on identifying and prioritizing vital documents for translation. #24-02 Language Accessibility
#03 To effectively support staff in fulfilling their roles, the Office of Communications should develop a Language Access
Coordinator training and resources to share with coordinators.

CMO Implemented The City Manager’s Office developed an online Language Access and Customer Service Training Module, available for all City employees, to support the City’s Customer Service and Vision Standards and equity initiatives. The Language Access Manager provided three trainings to the City's Accessibility Liaisons, which included an overview of resources available on the Intranet, how to identify and prioritize vital document translations, when to contact a professional interpreter, the process for managing contracted vendor usage and feedback, and the process for translating phone trees. In August, the Language Access Manager provided a training to the liaisons on the process for overseeing the internal review of translated documents. #24-02 Language Accessibility
#04 To ensure departments incorporate language
considerations into their services, the Administration should require departmental Language Access Plans for either customer facing departments or all departments, as appropriate. This may require an update to the Language Equity Policy and Guidelines.

CMO Partly Implemented The Office of Communications is continuing to explore opportunities to streamline equity efforts in the City. In collaboration with the Office of Racial and Social Equity, they incorporated language access into Racial and Social Equity Action Plan monitoring in early 2025. Target Date: Dec-2025
#24-02 Language Accessibility
#05 The Office of Communications should develop and distribute a template for Language Access Plans which at a minimum asks departments to address:
• Procedures for addressing language accessibility in verbal, written, and visual communication,
• Identifying customer-facing positions for requiring language access training, and
• Procedures for identifying necessary resources for language services.

CMO Partly Implemented The Office of Communications is continuing to explore opportunities to streamline equity efforts in the City, including benchmarking Language Access Plans with other municipalities. In collaboration with the Office of Racial and Social Equity, they incorporated language access into Racial and Social Equity Action Plan monitoring in early 2025. Target Date: Dec-2025
Status of Open Audit Recommendations as of June 30, 2025 51 Report and Recommendations Dept (s) Current Status Comments #24-02 Language Accessibility
#06 To ensure vital documents are accessible to residents and businesses, the Office of Communications should:

A. Develop guidance on identifying, prioritizing, and translating vital documents and distribute this guidance to City departments.

B. Explore expanding the City’s use of translation technologies where culturally appropriate translations could be achieved.

This may require consultation with the City Attorney’s Office.

CMO Implemented A. The Office of Communications updated the Translation SOP to include additional guidance on identifying, prioritizing, and translating vital documents. The Translation SOP was presented at an Accessibility Liaison meeting and made available for City staff on the Intranet.

B. In July 2024, the Office of Communications acquired an Instant Language Assistant (ILA) device, which uses artificial intelligence (AI) to translate and interpret over 125 languages/dialects. Staff reported that the pilot test of the program showed positive results from residents and translations were generally accurate. After receiving positive feedback from residents on the ILA pilot, the Office of Communications purchased two ILA devices. One device is located at the first-floor information desk to enhance customer service by providing residents with an improved in-language experience. As of May 1, 2025, the second was being piloted at three community centers in districts with a high population of limited English proficient residents. The ILA device will be at each community center for four months, and the Office of Communications will analyze usage data to determine if community centers can benefit from having the ILA device permanently. The Office of Communications also tested a generative AI translation model with bilingual staff members, using Spanish, Vietnamese, Chinese, Farsi, Tagalog, and Korean. The results from this pilot were positive, and the Office of Communications plans to launch the AI translation model later this year.
#24-02 Language Accessibility
#07 To ensure City vendors and consultants provide language services to San José residents and customers, the Administration and the City Attorney’s Office should develop standard contract terms that align with the Language Equity Policy and Guidelines.

CMO /
CAO
Partly Implemented The City Attorney’s Office, working with the City Manager’s Office, updated City Policy

1.7.9 (Website and Digital Services Governance) to refer to the Language Equity Policy & Guidelines. This policy is already referenced in contracts with digital service vendors through the accessibility requirements, making language services a legal requirement for those vendors. The next step is to work with Purchasing to update other contract templates so departments have standard language they can keep or remove as needed. Target Date: Dec-2025
#24-02 Language Accessibility
#09 To ensure continued progress towards equitable language access for City services, the Administration should better define its language equity goals, and develop performance metrics and a system to monitor performance.

CMO Partly Implemented The Office of Communications is benchmarking its language equity goals and performance metrics with other municipalities, and is exploring options for a system to monitor performance. Target Date: Dec-2025
#24-02 Language Accessibility
#11 To provide clarity regarding how interpretation services are provided, the Administration should:

A. Update the Language Equity Policy and Guidelines to clarify expectations of bilingual staff regarding interpretation.

B. Develop a service model for providing professional
interpretation services, including guidance for use of external vendors and assessing the potential for in-house interpreters, where appropriate.

CMO Implemented In January 2025, the Office of Employee Relations updated the Bilingual Pay Policy to clarify in which instances bilingual staff or vendors should be used. According to the policy, City certified bilingual employees are expected to provide direct services in language. The additions also refer back to the Language Equity Policy and Guidelines, as well as the City's intranet for additional information. This includes guidelines of when City employees should be contacted for bilingual services. The Office of Communications updated the City’s Interpretation Standard Operating Procedure which includes guidance for determining when to provide professional interpretation and when bilingual staff can provide their direct services "in language".

Status of Open Audit Recommendations as of June 30, 2025 52 Report and Recommendations Dept (s) Current Status Comments #24-03 Retirement Services
#02 To clarify responsibilities around the contracting process, the Office of Retirement Services should train its staff on internal and City procurement and contracting procedures. This should include instructions on when procurements or contracts should be coordinated with the Information Technology Department, Finance Purchasing, Finance Risk Management, and the City Clerk.

ORS Implemented The Office of Retirement Services (ORS) created training resources on procurement, a centralized location for current contracts, and a database that tracks all the steps of the procurement process. In October 2024, ORS attended a training provided by the Finance Department's Purchasing & Risk Management team on procurement and contracting policies and procedures. In July 2025, ORS reported that management trained staff on the new Board procurement and contracting policies, and that ORS staff will continue to enroll in City procurement training when classes are offered. #24-03 Retirement Services
#03 To ensure all invoice payments can be made through Finance Accounts Payable and avoid the use of wire transfers, the Office of Retirement Services should work with the City’s Finance Department to create purchase orders or establish contracts to be filed with the City Clerk. This should be done for all current service providers and subscription services.

ORS Partly Implemented The Office of Retirement Services (ORS) reports that staff have worked with the City’s Finance Department (Finance) to process all invoice payments through Finance Accounts Payable, and that wire transfers are not currently used to make payments to providers. In May 2025, in conjunction with Finance, Staff completed and submitted the set-up of requisitions in FMS for the remaining providers with all the supporting documents. Target Date: Dec-2025 (Delayed From: Dec-2024) #24-04 Encumbrances
#02 To further encourage regular review of encumbrances going forward, the Finance Department should update the City’s Encumbrance Policy to require that, at the end of each fiscal year, departments review any encumbrance that has not had activity recorded in the fiscal year. The stated goal should be to liquidate any unneeded encumbrances and correct any inaccuracies.

FIN Implemented The City Administration updated the Encumbrance Policy (CPM 5.1.12). The new policy requires departments to review and confirm the accuracy of all encumbrances annually during the fiscal year-end close process. Additionally, departments are required to review, liquidate, and close encumbrances that are no longer necessary, have no activity recorded, and/or have expired at the end of each fiscal year. #24-04 Encumbrances
#03 To ensure staff have sufficient guidance in the liquidation of encumbrances, the Finance Department should:
a.Remind fiscal staff of the City’s Encumbrance Policy in year-end trainings, including any new requirements regarding year-end review of encumbrances; and
b.Provide a Finance staff point of contact or general email address for department staff to ask questions about liquidations of encumbrances for purchase orders and awards of contracts.

FIN Implemented During year-end training sessions, the Finance Department reminded staff about the City’s Encumbrance Policy and to review encumbrances. In the City's updated Encumbrance Policy, Finance has listed points of contact for questions relating to encumbrances.

Status of Open Audit Recommendations as of June 30, 2025 53 Report and Recommendations Dept (s) Current Status Comments #24-04 Encumbrances
#04 To ensure City staff are processing activity on encumbrances appropriately, the Finance Department should:
a.Update year-end trainings to remind staff that all encumbrance adjustments, whether for purchase orders or contracts, should follow standard procedures through use of the purchasing module; and
b.Require department staff to enter contract end dates into the appropriate field in the financial management system for use in monitoring reports.

FIN Implemented The Finance Department has included links to guidance for how to adjust encumbrances in the updated Encumbrance policy. Finance staff reminded departments about the policy during year-end trainings. Finance has determined that making the contract end date a required field in the financial management system is not a feasible option. However, the updated Encumbrance policy includes the requirement to enter the contract end date and the updated Remaining Balance Report includes contract end date information to allow for more regular review of this information.
#24-04 Encumbrances
#05 To improve the accuracy and usefulness of reporting on encumbrances, the Finance Department should work with the City’s outside vendor and the Information Technology Department to:
a. Develop a separate report from the financial management system that more accurately reflects encumbrance balances, or b. Update the current Remaining Balance Report by:
i. Reviewing and correcting encumbrances that have
inaccurate balances,
ii. Resolving errors in how the report is pulling information on encumbrance balances,
iii. Updating the report to include term ending dates of contracts and purchase orders, and
iv. Determining an appropriate date range for the report to minimize unnecessary data processing.

FIN / ITD Implemented
-
Priority
a. The Finance Department (Finance) worked with the vendor and determined that using the Remaining Balance Report (RBR) along with the Purchase Order Audit report would best meet the City's needs.
b. Finance has worked with the vendor to confirm that errors in the RBR were not due to the report's underlying logic. Finance reports that to date, all discrepancies were caused by bugs in prior system versions (which have since been resolved), or user errors in updating entries. Finance reports that any new discrepancies that arise going forward will be corrected through standard maintenance and direct support with City staff. The Information Technology Department has worked with Finance and department staff on the mass closure of over 18,000 POs with zero outstanding amounts. This has streamlined the RBR by eliminating redundant data and enhancing performance. Department staff will be reminded to close out old purchase orders during regular Finance trainings to prevent this issue in the future. Additionally, to help with departments' review of open encumbrances, the RBR now includes term ending dates for contracts and purchase orders.

Status of Open Audit Recommendations as of June 30, 2025 54 Report and Recommendations Dept (s) Current Status Comments #24-05 Tenant Protection Ordinance
#01 To improve the efficiency and consistency of the Tenant Protection Ordinance (TPO) fee calculation, the Housing Department should:
a.Document the methodology for how units are identified as covered by the TPO, if using data from the City’s integrated permitting system, or
b.Develop a database or roster of TPO units based on data from the integrated permitting system or a landlord registry.

HSG Partly Implemented a. Beginning in February 2025, the Housing Department staff began a series of process improvement projects with the training and guidance of Change Agents Training. Included were documenting, mapping out and improving the processes related to unit calculations and identifying exempt units. The checklists and improvements staff has generated serve as the foundation for a procedures manual that is expected to be finalized by December 2025.
b. The Housing Department confirmed with Code Enforcement and the Information Technology Department (ITD) to allow Rent Stabilization Program (RSP) staff to mark units as exempt in AMANDA. RSP Staff are also working with ITD to create a field in AMANDA that RSP can edit about ordinance coverage which could support development of a TPO-Only property roster. Concurrently, the Housing Department’s Data Division is working to develop a list of TPO-Only properties in Salesforce, utilizing data from AMANDA. As a second step of that work, the Salesforce TPO-Only property roster will be set up to allow owners to confirm and update details about their TPO-Only unites through a simple online form. Target Date: Mar-2026 #24-05 Tenant Protection Ordinance
#02 To better identify properties subject to the Tenant Protection Ordinance and ensure accurate billings, the Housing Department should work with Planning, Building and Code Enforcement to:
a.Create a process to correct and validate unit counts in the integrated permitting system as necessary based upon landlord feedback, and
b.Ensure the exemption field in the City’s integrated permitting system is properly filled in.

HSG /
PBCE
Not Implemented The Housing Department’s Data Division is working to develop a list of TPO-Only properties in Salesforce, utilizing data from AMANDA. As a second step of that work, the Salesforce TPO-Only property roster will be set up to allow owners to confirm and update details about their TPO-Only units through a simple online form. Owners will be able to flag unit discrepancies in the online Salesforce form. Coordination meetings with Code Enforcement and the Information Technology Department began in August 2025. Housing staff have access to AMANDA and authority to change the exemption field. Processes for coding exempt units are being developed and documented. Target Date: Mar-2026
#24-05 Tenant Protection Ordinance
#03 The Housing Department and the City Attorney’s Office should clarify the Tenant Protection Ordinance exemptions in the San José Municipal Code and update communications to landlords accordingly.

HSG /
CAO
Not Implemented Housing reports working on the Tenant Protection Ordinance (TPO) regulations which will provide clarity regarding what units are exempt, as well as detail the process for owners to apply for exemptions. The Regulations are part of larger regulatory update of the rental ordinances expected to go to Council in November 2025. As part of this work, forms and instructions will also be updated to provide more clarity prior to the annual exemption process, as well as change the cadence of applying for exemptions in certain circumstances. Target Date: Nov-2025 (Delayed From: Aug-2025) #24-05 Tenant Protection Ordinance
#05 To better allocate staff time across the Rent Stabilization Program areas, the Housing Department should assess the most appropriate way to track and estimate staff time spent on different fee programs and formalize related procedures, including supervisory review.

HSG Partly Implemented Tracking of staff time on each ordinance program in the City's time keeping system is reviewed by supervisors to ensure time is assessed appropriate to day-to-day work.

One of the goals of a Process Improvement Project undertaken in 2025 is to assess time spent on different tasks for the Ordinance Programs and where efficiencies can be made. This is the foundation for evaluating the cost of running the program utilizing a workflow calculation rather than estimates of individual staff time. The Program aims to employ this cost assessment method for the 2026-27 fee calculation Target Date: Oct-2025 (Delayed From: Jun-2025)
Status of Open Audit Recommendations as of June 30, 2025 55 Report and Recommendations Dept (s) Current Status Comments #24-05 Tenant Protection Ordinance
#06 To standardize service delivery, the Housing Department should update its Rent Stabilization Program Manual to include procedures to guide day-to-day interactions with stakeholders and establish an enforcement process for addressing Tenant
Protection Ordinance non-compliance. Additionally, the Department should create a review schedule to ensure procedures continue to align with program needs and practices.

HSG Not Implemented Housing reports that Tenant Protection Ordinance (TPO) enforcement case tracking is being developed as part of its Salesforce improvements. Procedures will then be captured in the TPO regulations which are expected to be finalized in Fall 2025 and the Rent Stabilization Program Manual that is currently under development. Target Date: Dec-2025 (Delayed From: Jun-2025)
#24-05 Tenant Protection Ordinance
#07 To better track interactions with tenants and landlords, the Housing Department should refine their interaction data collection to label which ordinances are being inquired about, clarify when staff are enforcing ordinances, and eliminate unnecessary data fields.

HSG Partly Implemented Beginning in February 2025, Housing Department staff began a series of process improvement projects with the training and guidance of Change Agents Training. The process for tracking interactions in Salesforce was evaluated and a set of changes and improvements to the data collected in the database were developed which included better tracking of inquiry types and information provided. The improved database underwent testing in Spring 2025 and staff was trained in June 2025 with full implementation in July. The Housing Department’s Data Division is working to build out Salesforce capacity to track Tenant Protection Ordinance (TPO) enforcement cases with clear steps and basic dashboards. This will provide one place to see status cases, deadlines, and repeat issues, with linking to properties in the Rent Registry and TPO-Only Roster. Target Date: Apr-2026 (Delayed From: Jul- 2025)
#24-05 Tenant Protection Ordinance
#08 To better assess performance of Tenant Protection Ordinance activities, the Housing Department should develop individual performance measures for the Tenant Protection Ordinance that are aligned with the overall goals and measures highlighted in the Rent Stabilization Program Strategic Plan.

HSG Not Implemented Performance measures are being developed that employ the new data collection method in Salesforce. Housing is working with the Budget Office to update performance measures, including Tenant Protection Ordinance performance measures. Target Date: Oct-2025 (Delayed From: Jun-2025) #24-05 Tenant Protection Ordinance
#09 To better reach tenants and landlords in areas where there is a high risk of evictions, the Housing Department should update the Rent Stabilization Program Community Outreach Plan to detail how staff will identify designated high-risk areas or neighborhoods and develop goals and targets for outreach and education events in such areas. This should also include addressing any language accessibility needs within these communities.

HSG Partly Implemented The Rent Stabilization Program Outreach Strategy employs a data-driven approach using GIS mapping and Salesforce reports with data from interaction logs, TPO notices, and petitions. The Program also utilizes language maps to tailor outreach materials in preferred languages and culturally appropriate formats. To better target outreach efforts towards high-risk rent-burdened tenants, the Program plans to shift to utilizing data at the Census tract level, rather than zip code level. This will require additional steps for analysis and/or technological improvements to disaggregate interaction log data and TPO notice data collected through Salesforce databases.

Program staff also to intend to search for other publicly available datasets at the Census tract level that may be indicative of areas that have concentrations of high- risk rent burdened households that may not be accessing Program services.

Target Date: Dec-2025 (Delayed From: Jul-2025)
Status of Open Audit Recommendations as of June 30, 2025 56 Report and Recommendations Dept (s) Current Status Comments #24-05 Tenant Protection Ordinance
#10 To better communicate responsibilities under the Tenant Protection Ordinance, the Housing Department should update the Rent Stabilization Program Community Outreach Plan to detail how staff will proactively communicate ordinance information and requirements to landlords.

HSG Partly Implemented The Rent Stabilization Program (RSP) developed a roadmap to implement an outreach strategy to interact with and educate landlords through various forms of engagement, including virtual and in-person presentations and social media posts.

This includes hosting quarterly webinars (RSP Housing Sessions) addressing Ordinance related topics for landlords and tenants (e.g., Rent Registry, tenant petitions, landlord petitions, capital improvements, the Tenant Protection Ordinance (TPO), and CA State law). The improvements in Rent Registry 7.0 are planned to communicate requirements regarding the TPO posting to owners registering their units. The 7.0 Rent Registry Period runs from September 15, 2025 through November 30, 2025. Target Date: Dec-2025 (Delayed From: Jul-2025) #24-05 Tenant Protection Ordinance
#11 To ensure landlord compliance with the Tenant Protection Ordinance (TPO), the Housing Department should:
a. Coor
dinate with the Department of Planning, Building and
Code Enf
orcement’s Multiple Housing Inspection Program to
check whether TPO information is posted during routine
inspections of multiple housing properties, and
b. Devel
op a process to follow up with landlords to determine
whet
her information had been distributed to tenants in accordance with the Municipal Code.

HSG /
PBCE
Partly Implemented The Housing Department (Housing) reports that for the 7.0 Rent Registry cycle beginning this Fall 2025, new data fields have been added for landlords to report where the “Tenant Protection Ordinance Required Posting” is located on the property.

Housing plans to work with Code Enforcement to include verification of the posting as part of their inspection checklist. Target Date: Dec-2026 (Delayed From: Sep-2025) #24-05 Tenant Protection Ordinance
#12 To increase landlord and resident awareness regarding relocation assistance, the Housing Department should work with the Fire Department to develop or update informational materials provided to residents following an incident.

HSG /
FIRE
Partly Implemented The Fire Department developed a comprehensive "After A Fire" webpage. Housing reports that they are drafting a section that includes the Rent Stabilization Program phone number/email and links to the Rent Stabilization Program page for the "After A Fire" webpage. Target Date: Dec-2025 (Delayed From: Jun-2025) #24-06 Animal Care and Services
#01 San José Animal Care and Services should assess its shelter capacity and determine the number of animals the shelter can adequately care for using holding capacity by species and staff’s capacity for care.

PW Partly Implemented San José Animal Care and Services (ACS) staff report evaluating enclosure sizes to determine the number of acceptable housing units that align with the Association of Shelter Veterinarians’ Guidelines. ACS diagramed the number of acceptable enclosures for cats and dogs. Depending on litter sizes and appropriate co-housing situations, the number of animals that the shelter can care for varies. ACS also reports identifying holding capacities for neonate kittens, rabbits, and other small animals. ACS plans to factor in staffing levels and capacity to ultimately determine the shelter’s capacity. Target Date: Dec-2025
#24-06 Animal Care and Services
#02 San José Animal Care and Services, using data such as trends in intake requests and animal inventory, should assess San José’s shelter needs to determine whether additional kennel space is required and create a long-term strategy to fund kennel improvements or expansion.

PW Partly Implemented Using intake and average length of stay data from 2024-25, Animal Care and Services (ACS) estimated housing 194 dogs and 283 cats daily. Staff report implementing an electronic log also track intake diversions, which will be used to assist with ACS’ shelter needs analysis. ACS plans to determine the shelter’s current capacity (see recommendation 2406-01), and then will evaluate if additional space is needed to meet the community’s needs. Target Date: Dec-2025 Status of Open Audit Recommendations as of June 30, 2025 57 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#03 San José Animal Care and Services should review the shelter’s facility condition assessment once completed, and identify priority needs and funding requirements for these improvements.

PW Implemented The San José Animal Care Center facility condition report was completed in Fall 2024. The report estimated $10.2 million in corrections that should be addressed in the next ten years. Of the $10.2 million, the assessment identified $2.6 million in projects to prioritize within the next two years. The Facilities Division in Public Works reviewed the assessment and recommended replacing two boilers first, which will assist in maintaining heat at the shelter. $250,000 was approved in the 2026-2030 Capital Improvement Program for the replacement. The Facilities Division proposed prioritizing the HVAC system in the kitten nursery next, followed by the remaining priority needs from the assessment. Projects will be considered as available funding allows.
#24-06 Animal Care and Services
#04 San José Animal Care and Services should develop a plan to transition away from or reduce intake of newborn kittens. The plan should address:
a. The shelter’s capacity to care for kittens in-house, including a comparison of the kitten nursery costs and related live outcomes,
b. Guidelines for when diversion or overnight care of newborn kittens at the shelter is appropriate, and
c. Pathways when the volume or condition of kittens exceeds the capacity for in-house care, including potential foster care, rescue, or euthanasia.

PW Partly Implemented a. San José Animal Care and Services (ACS) identified its holding capacity for neonate kittens in the kitten hut, and is attempting to measure its overall capacity for care (see recommendation 2406-01).
b & c. ACS created a flowchart to educate the community on leaving newborn kittens with their mothers, which is intended to divert kittens from the shelter. Staff also developed a neonate kitten intake policy and pathway planning matrix (see Recommendation 2406-06), and updated its euthanasia protocol since the audit.

Together, this guidance can help staff determine the appropriate pathways for newborn kittens. Once the kitten hut is full, ACS will manage kitten intake by requesting the reporting party to care for the kittens or return them to their mothers, and by contacting rescue or foster partners. Depending on a kitten’s medical condition and available caretaker options, ACS may proceed with rescue, foster, or euthanasia.

Target Date: Dec-2025
#24-06 Animal Care and Services
#06 To ensure that each animal has an identified path out of the shelter and to reduce its length of stay, San José Animal Care and Services should formalize pathway planning protocols that include:
a. Identifying potential pathways (e.g., adoption, rescue, or euthanasia) for animals entering the shelter and their pathway changes and document that in the Chameleon case management system,
b. Formalizing steps that staff should take for an animal to achieve its intended pathways (e.g., schedule a spay or neuter surgery, network with rescue groups, promote as an adoption candidate), and
c. Assigning supervisory or management staff to conduct regular (e.g., daily) assessments of animals’ progress towards their pathway.

PW Implemented a. & c. San José Animal Care and Services (ACS) created an intake form for stray cats, standard pathway planning memos, and a pathway planning matrix for all animals. ACS’ pathway planning protocol requires intake staff to use these forms to assign an initial pathway of return-to-field, adoption, needs rescue, evaluation, or euthanasia for animals entering the shelter, as well as document the pathway in a Chameleon memo. ACS also developed a document and checklists outlining steps for reassessing animals’ pathways after entering the shelter. Based on this guidance, shelter coordinators are responsible for running daily animal inventory reports to review animals’ records and confirm they are assigned an appropriate pathway in Chameleon, updating the pathway as necessary. Shelter coordinators assess each animal’s pathway every one to three weeks, depending on the animal’s status. b. The new checklists also provide guidance for shelter coordinators and supervisors for when to request a spay or neuter surgery from the medical team; confirm animals appear on Pet Compass for the public; and ensure appropriate animals are posted on social media, promoted at adoption events, or shared with rescue group. ACS’ euthanasia policy provides criteria for when to consider euthanasia.

Status of Open Audit Recommendations as of June 30, 2025 58 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#08 To ensure the welfare of animals in foster care, San José Animal Care and Services should develop policies to:
a. Track the status and location of all fostered animals in a uniform report,
b. Establish pathway plans for animals in foster,
c. Accurately track the number of days animals stay in foster care and create limits for how long they can be in foster homes without being adopted, and
d. Document timelines and expectations for when foster
caretakers must return to the shelter for medical appointments.

PW Implemented a. & c. San José Animal Care and Services (ACS) developed a protocol to follow specific data entry steps for foster animals in Chameleon. Moving forward, following this data entry protocol will help ensure all foster animals are included in ACS' Chameleon foster inventory report, linked to a foster parent’s address, and have a consistent calculation for “days in foster care.” Foster staff are also instructed to record updates in Chameleon when following up with foster parents. Additionally, ACS updated its foster agreement, which states that a foster parent is expected to adopt an animal within 30 days. Staff may make exceptions for animals in foster for medical or behavioral reasons.
b. Based on the pathway planning matrix mentioned in Recommendation 2406-06, some animals are made eligible for foster care at intake. ACS’ foster pathway plan checklist outlines steps to promote an animal for foster. Once an animal is in foster, foster staff will check-in with foster parents within 60 days, update behavior notes in Chameleon, finalize steps towards adoption, assist with setting up a spay or neuter appointment, or consider alternative pathways.
d. ACS’ updated foster manuals and agreement include expectations for foster parents to return to the shelter for medical appointments. For scheduling vaccines, foster parents will either receive a reminder card before leaving the shelter or an automatic reminder email through Chameleon. Kitten caretakers are also expected to schedule check-up appointments with medical staff every 2 to 3 weeks. Per ACS’ foster pathway plan checklist, medical staff run a daily “needs vaccination” report to identify foster animals due for vaccines, while the foster coordinator identifies animals that may be ready for a spay or neuter surgery.
#24-06 Animal Care and Services
#09 To increase the level of spay and neuter services for community cats and shelter animals, San José Animal Care and Services should work with the Finance Department and the City Attorney’s Office to contract with outside service providers for spay and neuter services.

PW Partly
Implemented
-
Priority
San José Animal Care and Services (ACS) has purchase orders with three vendors for spay and neuter services. ACS plans to work with the Finance Department to maintain coverage for these contracted services. Target Date: Dec-2025 Status of Open Audit Recommendations as of June 30, 2025 59 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#11 San José Animal Care and Services (ACS) should:
a. Update the ACS Manual to align with the Association of Shelter Veterinarians’ Guidelines as they relate to disease detection and isolation, cleaning, vaccines and treatments, nutrition, and exercise and enrichment. San José Animal Care and Services should review the ACS Manual on a recurring basis to incorporate changes to operations and industry standards as appropriate.
b. Alternatively, adopt the Association of Shelter Veterinarians’ Guidelines as its primary manual and develop systems to ensure compliance with the Guidelines in the areas listed in (a). San José Animal Care and Services should review these systems on a recurring basis to incorporate changes to operations and industry standards as appropriate.

PW Partly
Implemented
-
Priority
San José Animal Care and Services is in the process of developing additional protocols to address the Association of Shelter Veterinarians’ Guidelines. Target Date: Dec-2025
#24-06 Animal Care and Services
#12 San José Animal Care and Services should develop policies to require supervisory staff to perform regular observations and provide feedback to personnel in each area of shelter and medical operations, including proper cleaning, feeding, and handling animals with personal protective equipment.

PW Not Implemented San José Animal Care and Services (ACS) updated its organizational chart for shelter operations so that each Animal Care Attendant is assigned to a Shelter Coordinator as their lead. According to ACS, Shelter Coordinators are now expected to hold one- on-ones with Animal Care Attendants every other week, as well as regular group briefings by shelter function (e.g., intake, dogs, cats). ACS plans to develop checklists and an overarching policy for coordinators and supervisory staff to use for ensuring proper feeding, cleaning, personal protective equipment use, and animal handling.

Target Date: Dec-2025
#24-06 Animal Care and Services
#13 To keep personnel informed of their responsibilities in disease management at the shelter, San José Animal Care and Services should provide recurring trainings in high-risk operational areas identified by shelter management. Areas should include using and changing personal protective equipment, identifying infectious disease symptoms in animals, and the steps and responsible parties for communicating and responding to infectious disease concerns.

PW Partly Implemented San José Animal Care and Services (ACS) created a policy around infectious and zoonotic disease trainings. The policy lists videos and presentations on personal protective equipment, parvovirus, feline panleukopenia, feline upper respiratory infection, canine infectious respiratory diseases, and mange. The trainings include information on recognizing clinical symptoms for each disease. According to the policy, all current staff and new hires are required to review the training videos. ACS plans to develop an annual calendar to remind staff of recurring trainings, as well as create a system to track trainings completed. The policy also states that when staff or volunteers notice clinical signs of disease, they will inform medical staff by submitting a QR code medical observation or flagging the animal for VetCheck in the Chameleon case management system. Target Date: Dec-2025
#24-06 Animal Care and Services
#14 For staff to have access to up-to-date protocols, San José Animal Care and Services should create a repository of all policies and protocols and make them easily accessible to all staff.

Supervisors should also review protocols relevant to staff’s daily tasks with new staff during onboarding and when assigned to new job responsibilities.

PW Partly Implemented San José Animal Care and Services (ACS) is now using SharePoint as a repository for its policies and protocols. ACS reports that they are in the process of organizing the policies and protocols, and making the SharePoint repository accessible to all staff. Target Date: Dec-2025
Status of Open Audit Recommendations as of June 30, 2025 60 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#15 To keep personnel informed of protocol changes, San José Animal Care and Services should formalize a standard operating procedure to communicate protocol changes to relevant personnel through emails, staff meetings, and other means.

PW Implemented San José Animal Care and Services (ACS) created a procedure outlining a “top- down” approach for communicating protocol changes to all personnel. The Public Works Director, Deputy Director, and ACS division managers discuss and approve major protocols or procedural changes during weekly briefings. Once a protocol is approved, the ACS director and division managers communicate changes to shelter supervisors and coordinators during weekly meetings. The ACS director and division managers also email affected staff with a description of the protocol change, any required actions, and a link to the updated procedure. Protocols will be stored in the ACS SharePoint (see Recommendation 2406-14). The ACS director and division managers will summarize protocol changes during monthly all-staff meetings.

Supervisors and coordinators can use one-on-one meetings and daily huddles to provide an opportunity for clarification on protocols and reinforce changes to frontline staff.
#24-06 Animal Care and Services
#16 To ensure feeding, providing water, cleaning, enrichment, and kennel location information is properly recorded, San José Animal Care and Services should improve recordkeeping by developing protocols and training staff around timely data entry.

PW Not Implemented San José Animal Care and Services plans to include expectations on data entry timeliness in its procedures and trainings. Target Date: Dec-2025 #24-06 Animal Care and Services
#17 San José Animal Care and Services should formalize and document shelter coordinators and supervisors’ areas of responsibilities in oversight and monitoring daily animal care activity. This should include reviewing relevant reports to ensure daily care is provided to all animals and following up if animal care has not occurred.

PW Not Implemented San José Animal Care and Services (ACS) updated its organizational chart for shelter operations. According to the organizational chart, Shelter Coordinators are responsible for specific shelter functions, including intake, dogs, cats, foster/rescue, and volunteers. ACS plans to formalize processes around daily animal care and oversight into standard operating procedures. Target Date: Dec-2025 #24-06 Animal Care and Services
#18 To ensure better inventory and recordkeeping
management, San José Animal Care and Services should:
a. Develop procedures and train staff around tracking inventory for shelter operations, and
b. Update the Controlled Substances Policy to align with current practice and in accordance with state and other applicable laws, clarify staff access levels, and train staff on the policy.

PW Partly Implemented a. San José Animal Care and Services (ACS) developed a draft inventory tracking sheet for shelter supplies (e.g., animal food and cleaning supplies). The draft tracker sheet records items coming in and being used, the current quantity remaining of each item, and items to re-order based on an optimal reserve quantity. ACS plans to determine responsible staff and points in time for reordering supplies. b. ACS updated its Controlled Substance Policy for Shelter Operations, which includes expectations on which staff may access and administer controlled substances. The policy also includes the shelter’s current use of keypad codes.

Medical staff have signed off to acknowledge their review of the policy and have been completing ACS' Controlled Substances Disposition Log, as outlined in the policy. The Controlled Substance Policy for Medical Operations notes that purchases for controlled substances must follow state and federal regulations, and outlines which medical staff can order controlled substances. Target Date: Dec-2025 Status of Open Audit Recommendations as of June 30, 2025 61 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#19 To provide context and information about shelter operations, San José Animal Care and Services should:
a. Provide additional data on length of stay in public and/or internal reports, which may include median as well as average stay, and broken down by age or other factors, and
b. Include other considerations that can be presented in public and internal reports, such as information on shelter capacity, the impact of unhealthy or untreatable animal intakes on live release rate, or other considerations.

PW Partly Implemented a) San José Animal Care and Services (ACS) has prepared a publicly available animal length of stay report broken out by species (dogs, cats, and other animals).

The report shows the median and average length of stay and covers a rolling 12- month period. The report is linked on ACS’ website on its “About Us” page. ACS’ goal is to update the report every month. ACS has also prepared an internal animal length of stay report that, in addition to including average and median length of stay by species, can be tailored to include additional details such as age and outcome condition.
b) ACS plans to include additional data points in its ACS Annual Report to the Neighborhood Services and Education Committee. Once this part of the recommendation has been completed, this recommendation will be considered implemented. Target Date: Dec-2025
#24-06 Animal Care and Services
#20 To improve data reliability, better manage reports, and further ensure animals are appropriately accounted for, San José Animal Care and Services should assign an individual or individuals to oversee data management. The responsibilities should include:
a. Updating and training staff on procedures around data entry protocols, and implementing a process for Chameleon data to be regularly reviewed and data issues to be addressed,
b. Working with the Chameleon vendor to assess whether
there are standard controls to reduce data entry errors, c.Identifying the most relevant Chameleon reports to inform data reporting and operations, and ensuring data queries are accurate, and
d. Establishing a process to track changes made to Chameleon reports and the public dashboards.

PW Partly Implemented San José Animal Care and Services (ACS) created a Senior System Applications Programmer position to be the designated lead on setting up data procedures for ACS. However, the position is currently vacant. As a result, data management responsibilities are delegated to different staff. To address the different responsibilities identified in the audit:
a. ACS reports that staff is currently updating and developing a comprehensive list of "How To" procedures and documents (including responsibilities) to help with data entry training. In addition, ACS is using a daily report that captures animals that died or were euthanized to guide efforts to check for data entry errors. Staff also established a report that flags staff data entry issues. b. Staff met with the Chameleon vendor to learn about opportunities to reduce data entry errors via data controls. Staff report they found the meetings useful. One result from the meetings was establishing a standard operating procedure around some admin functions in Chameleon.
c. Staff report that many of the Chameleon reports have been re-written to clean up the queries and pull data from correct fields.
d. Public Works IT staff have put in place a mechanism to track changes made to Chameleon reports.

In addition, ACS has begun implementing other data practice improvements, such as enabling a feature to better track foster animals in its case management system.

Once responsibilities for overseeing data management have been assigned and documented and ACS updates and trains staff on procedures around data entry protocols, this recommendation will be considered implemented.

Target Date: Dec-2025
#24-06 Animal Care and Services
#21 To ensure appropriate data controls, San José Animal Care and Services should establish Chameleon access permissions, document who should have access to what in Chameleon, and establish default password protocols in alignment with the City’s Information and Systems Security Policy.

PW Implemented San José Animal Care and Services (ACS) has established a Chameleon account access protocol. It establishes Chameleon access permissions, documents guidelines around default access and exceptions, and establishes protocols around default passwords. For example, new accounts are assigned a unique one-time password, which must be reset upon the first log-in.

Status of Open Audit Recommendations as of June 30, 2025 62 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#22 To improve rescue engagement and communication, San José Animal Care and Services should develop a communication protocol that includes an assigned point of contact(s) from the shelter and timeframes for responding to inquiries. The protocol should be shared with rescue groups.

PW Implemented San José Animal Care and Services (ACS) developed a communications protocol that includes information about assigned points of contact for rescue inquiries and timeframes for responding to inquiries. ACS has also shared the information from the protocol with rescue groups.
#24-06 Animal Care and Services
#23 To ensure the rescue group roster is current, San José Animal Care and Services should assign staff to regularly update rescue group contacts.

PW Partly Implemented San José Animal Care and Services (ACS) recently filled an overstrength position for a Rescue and Foster Coordinator. The Coordinator has updated the rescue group contacts. In the 2025-26 Operating Budget, ACS added a permanent position for rescue coordination. ACS plans to incorporate the responsibility of regularly updating the email list into the job description. Target Date: Dec-2025 #24-06 Animal Care and Services
#24 To ensure appropriate information about rescue animals is provided to relevant groups, San José Animal Care and Services should update its current process to notify rescue groups on available animals by:
a. Tailoring the “needs rescue” list to relevant recipients (e.g., dogs/puppies vs. cats/kittens) or providing self-service options to rescue groups, and
b. Including complete and accurate information about animals, such as age, weight, and medical and behavioral assessments.

PW Partly Implemented San José Animal Care and Services (ACS), in collaboration with the Public Works information technology team, has developed a self-service platform for rescue organizers. The platform lists animals available for rescue by type (e.g., dogs/puppies, cats/kittens, and other categories) and provides most of the information needed to support rescue decisions. ACS is currently working on completing part b of the recommendation. Target Date: Dec-2025
#24-06 Animal Care and Services
#25 To ensure consistency and transparency, San José Animal Care and Services should develop guidelines on the use of gift and Guardian Angel Program funds to include the following:
a. Maximum funds allowable per award,
b. Purposes for the use of these funds,
c. Method and timeline for making payments to providers, d. A process to track expenditures, and
e. Require recipients of funds to report annually on animal outcomes.

PW Implemented San José Animal Care and Services (ACS) has updated the Guardian Angel Program (GAP) form to include details on the fund’s purpose, maximum allowable amount, payment methods and timelines for providers, and reporting requirements on animal outcomes. The updated form is now available on the ACS website. Additionally, ACS has begun tracking GAP fund expenditures.
#24-06 Animal Care and Services
#26 San José Animal Care and Services should revise its agreement with rescue groups to include availability of gift funds and standard City terms, such as indemnification. Once the agreement is updated, ensure that all rescue groups have current signed agreements on file.

PW Implemented San José Animal Care and Services (ACS) has updated the standard rescue agreement and shared it with rescue groups. ACS currently maintains signed agreements on file.

Status of Open Audit Recommendations as of June 30, 2025 63 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#27 To make the volunteer onboarding and application process more efficient, San José Animal Care and Services should:
a. Develop timeliness targets to process volunteer applications, and
b. Simplify the process for minor applicants by combining the minor and guardian applications.

PW Not Implemented San José Animal Care and Services (ACS) plans to work on developing timeliness targets around processing applications and simplifying the process for minor applicants. Target Date: Dec-2025
#24-06 Animal Care and Services
#28 To ensure a complete and efficient training experience for volunteers, San José Animal Care and Services should:
a. Revise the training materials to include essential trainings only for tasks performed by volunteers based on the Association of Shelter Veterinarians’ Guidelines,
b. Make overlapping content (e.g., Fear Free Shelter training) optional,
c. Add dog and kitten specific zoonotic and infectious disease protocols in the existing training, and
d. Create and display “how-to” posters around the shelter to explain what steps should be taken for each volunteer-related task.

PW Partly Implemented San José Animal Care and Services (ACS) created and displayed "how-to" posters for volunteers around the shelter to guide volunteers through each volunteer-related task.

To address part c of the recommendation, ACS created a formal protocol for zoonotic and infectious diseases in dogs and kittens. ACS also formalized the agenda for the kitten nursery shadowing session, which includes zoonotic and infectious disease protocols for kittens, and is required to be completed by volunteers helping in the kitten nursery. Target Date: Dec-2025
#24-06 Animal Care and Services
#29 To ensure that volunteers are provided key shelter protocols on an ongoing basis, San José Animal Care and Services should formalize communication protocols to inform volunteers about updated shelter practices and protocols, and provide informal feedback to volunteers on services provided.

PW Not Implemented San José Animal Care and Services (ACS) reports that it is working on improving the communication protocols for volunteers. Target Date: Dec-2025 #24-06 Animal Care and Services
#30 To provide a better volunteer experience and improve management of the volunteer program at the shelter, San José Animal Care and Services should assess alternate volunteer management software solutions to better log and track volunteer hours and schedule shifts.

PW Partly Implemented San José Animal Care and Services (ACS) has tailored the existing volunteer management software to better schedule volunteer shifts. ACS reports that it is working on improving the tracking of volunteer hours. Target Date: Dec-2025 #24-06 Animal Care and Services
#32 To improve compliance around rabies vaccine submissions, San José Animal Care and Services should increase outreach to veterinarians to submit these certificates.

PW Implemented San José Animal Care and Services (ACS) contacted veterinarians and obtained rabies vaccine certificates. ACS also created internal guidelines to contact veterinarians to submit certificates on a regular basis.

Status of Open Audit Recommendations as of June 30, 2025 64 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#33 To allow administrative staff to refocus on other shelter activities and tasks, San José Animal Care and Services should consider options to contract for outside licensing administration.

PW Implemented San José Animal Care and Services (ACS) has selected an outside contractor for licensing administration. ACS is working with the Finance Department to process the contract with the vendor.
#24-06 Animal Care and Services
#34 To allow the City to begin its follow-up process for delinquent accounts related to licensing, San José Animal Care and Services should issue outstanding administrative citations in a timely manner.

PW Not Implemented San José Animal Care and Services (ACS) reports that it plans to process two months' worth of citations every month until the department catches up with outstanding administrative citations. Target Date: Dec-2025 #24-06 Animal Care and Services
#35 To increase language accessibility for all (including seniors for purposes of requesting exemptions), San José Animal Care and Services should translate the licensing form and incorporate the senior exemptions into the online form.

PW Implemented San José Animal Care and Services (ACS) has translated the licensing form into Spanish, Vietnamese, and Traditional Chinese, and made all versions available online. The licensing form now also includes a senior exemption option. #24-06 Animal Care and Services
#36 To increase access to underserved communities and align with other jurisdictions, San José Animal Care and Services should:
a. Consider additional license fee exemptions for veterans or disabled veterans in addition to senior exemptions, and b. Review options to provide free or low-cost veterinarian services for owned pets through either grant opportunities and/or working with Humane Society Silicon Valley to determine a regular schedule to provide these services.

PW Partly Implemented a. San José Animal Care and Services (ACS) now offers license fee exemptions for veterans in addition to seniors.
b. The Mayor's 2025 March Budget Message gave direction to decrease animal intake through restoring the Trap, Neuter, and Release (TNR) program and working towards providing publicly available, low-cost spay and neuter services for owned pets. ACS is currently focusing on restoring the Trap, Neuter, and Release (TNR) program and reports it will also continue reviewing options for providing spay/neuter services for owned pets. Target Date: Dec-2025
#24-06 Animal Care and Services
#37 To assist in the implementation of any remaining recommendations from the Maddie’s Fund Shelter Consult, San José Animal Care and Services should:
a. Prioritize the relevant recommendations that align with Association of Shelter Veterinarians’ Guidelines and shelter operations and develop target dates for implementation of those recommendations, and
b. Designate an individual to monitor and track implementation status, including identifying any roadblocks or next steps to completion.

PW Not Implemented San José Animal Care and Services (ACS) reports that it is prioritizing the implementation of Association of Shelter Veterinarians’ Guidelines. ACS then plans to evaluate Maddie's Fund Shelter Consult recommendations to determine prioritization for implementation. Per ACS, resources may need to be identified for parts of this scope and would be addressed in the City’s budget process within the context of other City Council priorities and budgetary constraints. Target Date: Dec-2025 Status of Open Audit Recommendations as of June 30, 2025 65 Report and Recommendations Dept (s) Current Status Comments #24-06 Animal Care and Services
#38 To ensure fairness of service delivery provided to residents, San José Animal Care and Services should consider aligning performance services and metrics with what is provided to the contract jurisdictions or revisit what is offered to other jurisdictions.

PW Partly Implemented San José Animal Care and Services (ACS) assessed response times by beat in San José. Staff also assessed 2024 response times between San José and Milpitas for the different priority calls. ACS determined that additional animal control officers would be needed to achieve similar response times as contract jurisdictions. ACS is considering moving performance targets for San José priority 2 and 3 calls for service to align to what is provided to contract jurisdictions. ACS reports that, in conjunction with recommendation #24-06 #39, staff will be doing an analysis to see if the services being provided by ACS field staff is being fully captured in the payments from the contract cities and will negotiate and make appropriate changes to have a full cost recovery program if necessary. Target Date: Dec-2025
#24-06 Animal Care and Services
#39 To ensure that San José’s cost analysis for services provided to neighboring jurisdictions is appropriate and consistent across the jurisdictions, San José Animal Care and Services should:
a. Formalize and track activity and costs to determine whether agreements accurately reflect the level of service, and b. Improve documentation for the cost analysis for the
agreements, such that all costs and activity levels are included.

PW Not Implemented Animal Care & Services (ACS) staff has started its cost analysis on services provided to neighboring jurisdictions. ACS plans to complete the analysis and implementation before the end of December 2025. Target Date: Dec-2025 Potential Monetary Benefit: If all costs were calculated equally across each of the contracts with neighboring jurisdictions, we estimate additional revenues of $277,000 at the time of the audit.
#24-08 Access and Use of Neighborhood Blight Reduction
Programs
#01 To ensure continued equity of service delivery for the BeautifySJ Blight Reduction and Beautification programs, the Department of Parks, Recreation and Neighborhood Services should create a process to maintain and review disaggregated program data using an equity index for each of its programs to evaluate equitable service delivery on an ongoing basis.

PRNS Implemented The Parks, Recreation and Neighborhood Services' BeautifySJ Program has identified the Healthy Places Index (HPI) to use as an equity index for evaluating the neighborhood blight reduction and beautification program's service delivery. To ensure continued equitable service delivery, BeautifySJ staff have constructed a tool to compare neighborhood blight reduction programs service delivery to the Healthy Places Index. According to BeautifySJ staff, program data will be reviewed annually to evaluate equitable service delivery and to make program adjustments as needed to ensure services are delivered equitably.
#24-08 Access and Use of Neighborhood Blight Reduction
Programs
#02 To ensure residents who speak languages other than English can request services, the Information Technology Department should work with its vendor to immediately fix the Spanish and Vietnamese translations on the SJ311 website and mobile application.

ITD Implemented
-
Priority
To ensure residents who speak languages other than English can request services, the SJ311 application and website have been updated to facilitate translation between English, Spanish, and Vietnamese in accordance with the City's Language Equity Policy & Guidelines (6.1.10).

Status of Open Audit Recommendations as of June 30, 2025 66 Report and Recommendations Dept (s) Current Status Comments #24-08 Access and Use of Neighborhood Blight Reduction
Programs
#03 To ensure accessibility of languages in accordance with the City’s Language Equity Policy & Guidelines (6.1.10), the Information Technology Department should incorporate languages spoken by 5 percent or more of the population into the SJ311 website and mobile application, as well as the 3-1-1 phone tree.

ITD Not Implemented
-
Priority
According to the Department, implementation of support for both Traditional Chinese and Simplified Chinese, including integration into the SJ311 Customer Call Center phone tree, has been incorporated in the Information Technology Department’s SJ311 2025-26 Strategic Plan. Target Date: Jun-2026
#24-08 Access and Use of Neighborhood Blight Reduction
Programs
#04 The City Administration should, in its next Request for Proposal for a grant platform, require translated information and ensure web accessibility in accordance with the City’s Language Equity Policy & Guidelines (6.1.10) and Website and Digital Services Governance (1.7.9).

FIN Not Implemented According to the Finance Department (Finance), the Accounting Division finalized a two-year extension of the current grant platform license in April 2025, effective through May 1, 2027, to prevent disruption in the departments’ ability to input and update grant data after the previous license expired on April 30, 2024. Finance reports that after discussions with the vendor, it was determined that the current platform would require additional development to support multilingual translation, and the City will need to issue a Request for Proposal for a new platform that offers multilingual capabilities and complies with the City’s Language Equity Policy & Guidelines. Finance staff report a budget proposal is expected in December 2025.

Upon approval of the budget proposal, an RFP will be developed, with the goal of completing procurement before the current grant platform contract expires. Target Date: Jun-2028
#24-08 Access and Use of Neighborhood Blight Reduction
Programs
#05 To improve communication about Neighborhood Blight Reduction and Beautification volunteer events, the Department of Parks, Recreation and Neighborhood Services should include accessibility statements in advertisements or notifications for BeautifySJ-organized volunteer events.

PRNS Implemented To improve accessibility of Beautify SJ Neighborhood Blight Reduction volunteer events, the Department has included language on event marketing materials encouraging those seeking disability accommodation to contact a designated staff member by phone, email, or dialing 711 (TTY). This language includes instruction to provide advanced notice of at least one week to arrange for some accessibility needs. #24-08 Access and Use of Neighborhood Blight Reduction
Programs
#06 The Department of Parks, Recreation and Neighborhood Services should provide translated guidance of how to use BeautifySJ's volunteer website in languages identified in the City's Language Equity Policy & Guidelines (6.1.10).

PRNS Partly Implemented The Parks, Recreation and Neighborhood Services Department reports they are in the process of developing multilingual materials that provide guidance on how to utilize the BeautifySJ volunteer website in languages identified in the City’s Language Equity Policy & Guidelines (6.1.10). Target Date: Dec-2025
Status of Open Audit Recommendations as of June 30, 2025 67

San Jose City CouncilSeptember 23, 2025

San Jose City Council
September 23, 2025