Memorandum — San Jose City Council, March 24, 2026

COUNCIL AGENDA : 3/24/2026
FILE : 26-334
ITEM : 3.5
TO: HONORABL
E MAYOR AND FROM: Toni J. Taber, MMC
CITY COUNCIL City Clerk

SUBJECT
: SEE BELOW DATE: March 18, 2026
SUBJECT: St atus of Open Audit Recommendations Report Recommendation
Accept the Status of the Open Audit Recommendations as of December 31, 2025.

CEQA: Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action. (City Auditor) [Rules Committee referral 3/18/2026 - Item A.1.a]

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

STATUS OF OPEN AUDIT

RECOMMENDATIONS AS OF
DECEMBER 31, 2025
December 2025

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Status of Open Audit Recommendations as of December 31, 2025 2 Office of the City Auditor
Joe Rois, City Auditor
March 13, 2026
Honorable Mayor and City Council
City of San José
200 E. Santa Clara Street
San José, CA 95113
STATUS OF OPEN AUDIT RECOMMENDATIONS AS OF DECEMBER 31, 2025

RECOMMENDATION
We recommend the City Council accept the Status of Open Audit Recommendations as of December 31, 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 57 recommendations from past
performance audits covering various services and programs.

The Administration has implemented 88 percent of all
recommendations made by the Auditor’s Office over the
past decade (target: 80 percent), and 75 percent of
recommendations made over the past five years.

Currently, 88 recommendations remain open with 63 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 145 audit
recommendations from our review as of December 31,
2025.
145 recommendations in this report
36 were issued in new reports
57 implemented / closed
88 partly or not implemented
88% of audit recommendations made
over the last 10 years have been
implemented or closed
Status of Open Audit Recommendations as of December 31, 2025 3 Departments Implemented or Closed 57 Recommendations in the Last Six Months Over the past six months, City departments have implemented or closed 57 recommendations.1 Examples include:
• Animal Care & Services (ACS): All 39 recommendations from the 2024 audit have been implemented or closed. In the past six months, ACS has completed shelter capacity assessments; updated guidance around daily care, supervisory responsibilities, and data entry; included additional performance metrics in its public reporting; began to provide limited free spay and neuter services to owned pets; developed a self-service platform for rescue partners; and taken steps to address other issues identified in the audit. (Audit of Animal Care & Services, 2024) • Council Policy 1-18: The Administration proposed updates to the Operating Budget and Capital Improvement Program Policy (Council Policy 1-18) to clarify guidelines on cost recovery and revenue sufficiency, considerations of ratepayer impacts, and reserves and fund balance. The City Council accepted the updated policy on March 3, 2026. (Audit of Environmental Services, 2012; Audit of Development Partners’ Work-in Progress Reserves, 2020)
• Public Works: Public Works updated City Policy 1.8.1 on the Use of City and Personal Vehicles. The update requires departments to monitor overall fleet utilization and clarifies guidelines for take-home vehicles, including monitoring for personal use. The Fleet Division also developed performance measures to track work order timeliness. ( Audit of Fleet Maintenance and Operations, 2020; Audit of Take-Home Vehicles, 2022)
• Housing: The Housing Department (Housing) streamlined its performance measures and aligned them more consistently across reporting platforms, and is in the process of documenting methodologies to ensure consistency over time. (Audit of Housing Performance Measures, 2023)
• Parks, Recreation and Neighborhood Services (PRNS): PRNS executed and updated agreements with the remaining school districts served by the San José Youth Empowerment Alliance. The agreements clearly define roles and responsibilities for both City and school staff. (Audit of the Mayor’s Gang Prevention Task Force, now the San José Youth Empowerment Alliance, 2019) • Retirement Services (ORS): ORS established purchase orders with its remaining vendors to eliminate the use of nonstandard payment methods. (Audit of Retirement Services, 2024)
• City Clerk’s Office: The City Clerk’s Office improved its performance management system by updating its performance measures, assigning responsible staff, and developing action plans when targets are not met. Additionally, the Office updated its Form 700 procedures to address non-filers and the assessment of late 1 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 December 31, 2025 4 fines. (Audit of the Office of the City Clerk, 2016; Audit of Form 700s, 2019) Over the last decade, the City Auditor’s Office has made 664 recommendations to improve City services, 88 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.)
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
Update guidelines on tracking time and review cost recovery calculations for environmental review fees (Audit of Environmental Review for New Developments, #2202-10) – New priority added.

Status: Planning, Building and Code Enforcement (PBCE) developed standard operating procedures for Environmental Impact Reports (EIRs), including guidance on time tracking and billable activities. PBCE reports increasing the base fee for exemptions requiring technical studies and EIRs. These higher base fees are expected to improve cost recovery and better ensure sufficient resources are available for California Environmental Quality Act (CEQA) reviews.

Partly
Implemented
Renegotiate the revenue sharing terms of the Integration Agreement with the Santa Clara Valley Water District (Valley Water). (Audit of South Bay Water Recycling, #1605-04) – New priority added – Target date:

December 2026 (delayed from January 2017).

Status: The City reached agreement with Valley Water to amend the revenue-sharing terms of the existing South Bay Water Recycling integration agreement. Changes to the agreement are pending completion of an EIR for the development of an advanced water purification facility.

Not
Implemented
Clarify maintenance responsibilities and the work order process at interim housing sites between Housing’s service providers and Public Works (Audit of Homelessness Coordination, #2504-09) – New priority added – Target date: August 2026.

Status: Housing plans to contract with a third-party property management firm to oversee maintenance and operations for its shelter system.

Status of Open Audit Recommendations as of December 31, 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) – Target date: April 2026 (delayed from January 2024).

Status: Real Estate uploaded all City-owned lands to its Land Information System and has the capability to store information needed for annual reporting on the City's vacant land inventory. According to Real Estate, they intend to issue an Information Memo on vacant lands in spring 2026.

Partly
Implemented
Finalize and publish guidelines about CEQA requirements and the City’s process for environmental consultants (Audit of Environmental Review for New Developments, #2202-09) – Target date: April 2026 (delayed from June 2023).

Status: PBCE has engaged a consultant to assist with drafting and finalizing Environmental Consultant Guidelines. The final draft of an Environmental Review Handbook is being reviewed by the City Attorney's Office and stakeholders. PBCE expects that the handbook will be finalized by April 2026.

Implemented
Contract with outside service providers for spay and neuter services (Audit of Animal Care and Services, #2406-09).

Status: ACS has two active purchase orders with spay and neuter vendors that run through September 2026. ACS intends to work with Finance, and the City Attorney’s Office as necessary, to use unique services procurements to obtain future spay and neuter 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: September 2026 (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 to add translation options for SJPermits.org.

Implemented
Update San José ACS manual to align with Association of Shelter Veterinarians (ASV) Guidelines (Audit of Animal Care and Services, #2406- 11).

Status: ACS adopted the ASV Guidelines as its primary manual. Updated ACS-specific policies, along with the ASV Guidelines and its existing internal control systems, have addressed many of the procedural gaps Status of Open Audit Recommendations as of December 31, 2025 6 noted during the audit. We encourage ACS to continue assessing its Manual to ensure alignment with the ASV Guidelines and current ACS practices.

Not
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, #2408-03) – Target date: June 2027 (delayed from June 2026).

Status: Due to the transition of the SJ311 application to a new platform, the Information Technology Department has deferred the
implementation of support for Traditional Chinese and Simplified Chinese (including integration into the SJ311 Customer Call Center phone tree) to FY 2026-27.

Citywide Security / Risk Mitigation
Partly
Implemented
Re-assess procurement policies to align the City’s risk strategy with timely procurements (Audit of Procurement, #2503-01) – New priority added – Target date: April 2026.

Status: The Finance Department, in coordination with the City Manager’s Office, raised the City’s competitive procurement threshold from $10,000 to $15,000 through Council-approved amendments to the Municipal Code. Finance also reports it is revising policies in other key areas, including criteria for waiving certain insurance requirements, streamlining small software purchases, and reviewing and updating the City’s standard contract terms and conditions as appropriate.

Partly
Implemented
Separate critical duties for management of the central supply of controlled substances (Audit of Fire Inventory Controls Over Controlled Substances, #2505-03) – New priority added – Target date:

April 2026.

Status: The Fire Department has finalized its revisions to the SJFD Policy and Procedure Manual regarding controlled substances. These revisions created separate roles for records management, access to the central supply of controlled substances, and user account review. Staff are working on implementing this transition.

Implemented
Update policies to formalize central supply oversight for controlled substances (Audit of Fire Inventory Controls Over Controlled Substances, #2505-04) – New priority added.

Status: The Fire Department updated practices to address different aspects for oversight of controlled substances. These practices were formalized in the finalized revisions to the SJFD Policy and Procedure Manual.

Status of Open Audit Recommendations as of December 31, 2025 7 More detail about each of the priority recommendations is shown in our online dashboard and in Appendix B of this report.

Total of 88 Recommendations Are Still Pending
Of the 88 recommendations that are still pending, 63 (72 percent) are partly implemented and 25 (28 percent) are not implemented. PBCE has the largest number of open audit recommendations, followed by the Housing Department.

Open Recommendations
5 3 4 6
1 2 1 2 1
15 15
5 1
5 4
5 4 3 2
3 10
5 10
15 20
25 Partly Implemented
Not Implemented
When implemented, many recommendations wil
l 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.

Open Audit Recommendations
by Intended
Outcome
Not Implemented Partly Implemented
1 2
7 8
7 4
13 10
15 21
Securing City Assets
Improved Service Delivery
Equity
Transparency and Accountability
Operational Efficiency
Status of Open Audit Recommendations as of December 31, 2025 8

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 December 31, 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, 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: Michelle Mallari, Katrina Gutierrez, 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 (January 1, 2016 – December 31, 2025) Appendix B: Detailed Listing of the Status of Open Recommendations as of December 31, 2025 Status of Open Audit Recommendations as of December 31, 2025 9 This page was intentionally left blank
Status of Open Audit Recommendations as of December 31, 2025 10 Appendix A:

SUMMARY LISTING RECOMMENDATIONS BY REPORT
(January 1, 2016 – December 31, 2025)
Status of Open Audit Recommendations as of December 31, 2025 11 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #16-01 Measuring San José's Financial
Condition No recommendations.
#16-02 Street Sweeping: Significant
Investment and Re-Tooling Are Needed
to Achieve Cleaner Streets
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
Provide tools for City staff to better
manage volunteers and allow for better
coordination across volunteer
programs.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
#16-04 Technology Deployments:

Additional Resources Needed to
Shorten Deployment Timelines
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
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 No recommendations.
#16-07 Office of the City Clerk:

Streamlining Processes and Clarifying
Roles Can Better Ensure Compliance
with Statutory Responsibilities
Maximize organizational efficiency and
consistency, as well as transparency and
public accountability, by streamlining
processes and clarifying roles.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛⬛ 20
Status of Open Audit Recommendations as of December 31, 2025 12 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #16-08 Police Overtime: The San José
Police Department Relies on Overtime
to Patrol the City Due to
Unprecedented Vacancies
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 No recommendations.
#16-10 The Apartment Rent
Ordinance: Additional Investment,
Improved Processes, and Strategic
Resource Deployment Needed to
Better Serve Tenants and Landlords
Better deploy resources, improve
processes, and recover program costs.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛ 19
#16-11 Mobile Devices: Improvements
Needed to Ensure Efficient, Secure, and
Strategic Deployment
Ensure efficient, secure, and strategic
deployment of mobile devices across
the organization.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛ 16
#16-12 Annual Report on City Services
FY 2015-16 No recommendations.
#17-01 Audit of Our City Forest
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
Reallocate staff and update procedures
considering the growing number of OEA
responsibilities.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
Status of Open Audit Recommendations as of December 31, 2025 13 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #17-03 Audit of Residential High-Rises:

Considerations for A City with A
Growing Number of Tall Buildings
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
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
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
Increase transparency in the budgeting
process, interactions among
stakeholders, investment policies, and
plan administration.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 25
#17-07 Preliminary Review of San José
Clean Energy: The City Is Developing
Controls to Manage Risks
No recommendations.
#17-08 Audit of Employee Travel
Expenses
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
Clarify how contributions to employee
accounts are calculated.
⬛ 1
Status of Open Audit Recommendations as of December 31, 2025 14 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #17-10 Team San Jose's Performance
2016-17 No recommendations.
#17-11 Airport Financial Projections No recommendations. #17-12 Annual Report on City Services
2016-17 No recommendations.
#18-01 Pensionable Earnings: Tighter
Controls and More Transparency Can
Ensure Retirement Contributions
Continue to be Accurate
Improve controls and transparency to
ensure retirement contributions
continue to be accurate.
⬛⬛⬛⬛ 4
#18-02 Audit of the San José Police
Activities League
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
Enhance management of capital projects.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 10
#18-04 Audit of Vehicle Abatement:

The City Could Improve Customer
Service for Vehicle Abatement Requests
Improve customer service for vehicle
abatement requests.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛ 1
#18-05 Cities Association of Santa
Clara County Expenditure Review,
Fiscal Years Ending June 30, 2017 &
2018
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
Improve program monitoring and use of
facility- and provider-level data to better
assess services delivered to residents.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛ 19
Status of Open Audit Recommendations as of December 31, 2025 15 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #18-07 Audit of the City’s Homeless
Assistance Programs: More
Coordination and Better Monitoring
Can Help Improve the Effectiveness of
Pro
grams
Improve the City’s oversight and
management of its homeless assistance
programs.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 14
#18-08 Team San Jose Performance FY
2017-18
Establish and formalize the target for
theater occupancy.
⬛ 1
#18-09 Annual Report on City Services
2017-18 No recommendations.
#18-10 Audit of Towing Services:

Changes to Contract Terms and
Consolidated Oversight Could Improve
Operations
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
Improve emergency call answering
times.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛ 18
⬛ 1
#19-02 Employee Benefit Fund
Administration: Opportunities Exist to
Improve Controls
Improve administration of employee
benefit funds.
⬛⬛⬛⬛⬛⬛⬛⬛ 8
#19-03 Development Noticing:

Ensuring Outreach Policies Meet
Community Expectations
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
Support and enhance the Youth
Empowerment Alliance's continuum of
care strategy.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
15 ⬛⬛ 2
Status of Open Audit Recommendations as of December 31, 2025 16 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #19-05 Employee Reimbursements:

Strengthening and Streamlining the
Reimbursement Process
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
Streamline processes and standardize
procedures to improve the timeliness
and completeness of Form 700 filings.
⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9
#19-07 Procurement Cards:

Clarification on Policies and Additional
Oversight Can Improve the P-Card
Program
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
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 No recommendations.
#19-10 Technology Deployments:

Processes Can Be Improved to Ensure
Long-term Success of the City’s
Technology Vision
Strengthen the City’s technology
deployments processes across the
organization.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 10
#19-11 Annual Report on City Services
2018-19 No recommendations.
#20-01 Memo - Preliminary Review of
Controls to Document COVID-19
Recovery Costs
No recommendations.
#20-02 Fleet Maintenance and
Operations: Public Works Can
Continue to Improve Fleet Operations
Enhance fleet operations by utilizing data
to identify fleet replacements and
monitor operations.
⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9 ⬛⬛⬛ 3 ⬛ 1
Status of Open Audit Recommendations as of December 31, 2025 17 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #20-03 Audit of Fire Development
Services: Staff Resources and Process
Efficiencies Will Help to Reduce Backlog
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
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
Improve workload and resource
planning through better tracking of
development work in progress.
⬛⬛⬛ 3 ⬛⬛ 2
#20-06 Memo - Preliminary Review of
Documentation for Costs Included in
the July 2020 Coronavirus Relief Fund
Interim Report
No recommendations.
#20-07 Memo - Cities Association of
Santa Clara County Expenditure
Review, Fiscal Years Ending June 30,
2019 & 2020
No recommendations.
#20-08 Team San Jose Performance FY
2019-20 No recommendations.
#20-09 Memo - Preliminary Review of
the Allocation and Monitoring of
COVID-19 Related Housing Grants
No recommendations.
#20-10 Annual Report on City Services
2019-20 No recommendations.

Status of Open Audit Recommendations as of December 31, 2025 18 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #21-01 Police Staffing, Expenditures,
and Workload: Staffing Reductions Have
Impacted Response Times and Led to
High Overtime Costs
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
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
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
Improve oversight and management
controls over code enforcement
activities.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
⬛⬛⬛⬛ 19
⬛ 1
#21-05 Municipal Water Billing and
Customer Service: The City Can Take
Steps to Enhance Customer Service
During an Unprecedented Time
Enhance Municipal Water customer
service and support.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 11 ⬛⬛ 2
#21-06 Team San Jose Performance FY
2020-21
Address an error in the incentive fee
paid to Team San Jose.
⬛ 1
#21-07 Annual Report on City Services
2020-21 No recommendations.
#22-01 Information Technology:

Improved Governance Would
Strengthen the City’s Cybersecurity
Improve controls around the City’s
information and technology assets.
⬛⬛⬛⬛⬛ 5
Status of Open Audit Recommendations as of December 31, 2025 19 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #22-02 Environmental Review for New
Developments: Better Project
Management and Reviewing Resources
Can Improve the CEQA Process
Improve the CEQA process through
better project management and
reviewing resources.
⬛⬛⬛⬛⬛⬛ 6 ⬛⬛⬛⬛ 4 ⬛⬛ 2
#22-03 Citywide Grant Management:

Improved Coordination Can Increase
Federal Grant Opportunities and
Standardize Grant Administration
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
Improve the efficiency of the take-home
vehicle process and compliance with
City policy.
⬛⬛⬛⬛⬛ 5
#22-05 Bill of Rights for Children and
Youth: Incorporating the Bill of Rights
into Planning Can Enhance Services
Enhance the City’s service delivery and
promote continuous improvement of
programs for children and youth in San
José.
⬛⬛ 2
#22-06 COVID-19 Food Distribution
Expenditures: The City Should Address
Gaps in Emergency Documentation and
Procedures
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 No recommendations.
#22-08 Tree Removals and
Replacements: The City Can Improve
Processes to Protect and Grow the
Community Forest
Improve management of the community
forest program.
⬛⬛⬛⬛⬛⬛⬛⬛ 8 ⬛⬛ 2
Status of Open Audit Recommendations as of December 31, 2025 20 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #22-09 Firearm Regulations: The City
Should Update Procedures Around Gun
Violence Restraining Orders and
Firearm Business Inspections
Enhance firearm regulatory processes
and policies.
⬛⬛⬛⬛⬛⬛⬛ 7
#22-10 Annual Report on City Services
2022-23 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
Enhance performance monitoring and
promote workplace safety for Corps
members.
⬛⬛⬛⬛⬛ 5
#23-02 Employee Travel Expenses:

Additional Training Can Enhance
Compliance With the City’s Travel
Polic
y
Ensure compliance with the City’s
Employee Travel Policy.
⬛ 1
#23-03 Integrated Waste Management
Enforcement Program: Clarifying Goals
and Performance Expectations Would
Improve Enforcement Coverage
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
Streamline and improve current
performance measures.
⬛⬛ 2 ⬛ 1
#23-05 Retirement Services: Interim
Report on the Alignment of Controls
Between the City and the Office of
Retirement Services
Strengthen the internal controls around
administrative functions in the Office of
Retirement Services.
⬛ 1
#23-06 Team San Jose Performance FY
2022-23 No recommendations.

Status of Open Audit Recommendations as of December 31, 2025 21 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #23-07 Residential Building Permits:

Additional Resources and Further
Process Enhancements Can Reduce
Wait Times and Improve Service
Deliver
y
Align PBCE resources to its building
permit workload, create standard
processes for permit intake and plan
review, and improve communication
with customers.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 12 ⬛ 1 ⬛⬛ 2
#23-08 Annual Report on City Services
2022-23 No recommendations.
#24-01 Non-Management Performance
Appraisals: The Administration Should
Improve and Clarify Appraisal Processes
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
Enhance language accessibility across
City departments and services.
⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9 ⬛⬛⬛ 3
#24-03 Retirement Services: The Office
Has Not Consistently Followed City
Procurement Policies and Standard
Practices
Ensure appropriate controls around
procurement and contracting for the
Office of Retirement Services.
⬛⬛⬛ 3
#24-04 Encumbrances: Departments
Should Regularly Review All
Encumbrances to Ensure Timely
Liquidation
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
Refine the fee calculation process and
improve program administration.
⬛⬛ 2 ⬛⬛⬛⬛⬛⬛⬛⬛⬛ 9 ⬛ 1
#24-06 Animal Care and Services:

Addressing Capacity Constraints and
Updating Shelter Protocols Will Help
Improve Animal Outcomes
Improve animal outcomes through
consistent protocols and better data
management practices.
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛
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⬛⬛⬛⬛⬛⬛⬛⬛⬛ 39
Status of Open Audit Recommendations as of December 31, 2025 22 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #24-07 Team San Jose Performance FY
2023-24 No recommendations.
#24-08 Access and Use of
Neighborhood Blight Reduction
Programs: BeautifySJ Can Continue and
Expand Its Equity Efforts
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 No recommendations.
#25-01 City Costs for Outdoor Special
Events: Opportunities Exist to Enhance
Customer Service
Assess and provide transparency
regarding the city-required security and
other costs for external special event
organizers
⬛⬛ 2 ⬛⬛ 2
#25-02 Access and Use of Traffic Safety
Services: Targeted Outreach and Other
Improvements Can Enhance Equity in
Services
Enhance equity in traffic safety services
and programs through targeted
outreach and other improvements
⬛⬛⬛⬛ 4 ⬛⬛⬛⬛ 4
#25-03 Procurement: The City Should
Review its Risk Strategy, Performance
Measurement, and Guidance to Improve
the Procurement Process
Improve the efficiency of the
procurement process through re-
assessing risk and updating guidance
⬛⬛ 2 ⬛ 1 ⬛⬛⬛⬛⬛ 5
#25-04 Homelessness Coordination:

Expanding Outreach, Strengthening
Grant Oversight, and Aligning
Performance Goals Can Improve the
Cit
y’s Response
Improve coordination between City
departments and service providers to
strengthen the City’s response to
homelessness
⬛⬛ 2 ⬛⬛⬛⬛⬛ 5 ⬛⬛ 2
#25-05 Fire Inventory Controls Over
Controlled Substances: Clarifying
Policies and Separating Duties Would
Further Improve Security
Enhance the security of controlled
substances by clarifying policies and
separating duties
⬛⬛⬛⬛ 4 ⬛⬛ 2 ⬛ 1
Status of Open Audit Recommendations as of December 31, 2025 23 key: ◼ implemented ◼ partly implemented ◼ not implemented Audit Title We made recommendations to: Implemented / Closed Partly Implemented Not Implemented #25-06 Team San Jose Performance FY
2024-25 No recommendations.
#25-07 Annual Report on City Services
2024-25 No recommendations.

Status of Open Audit Recommendations as of December 31, 2025 24 Appendix B:

DETAILED LISTING OF THE STATUS OF PENDING
RECOMMENDATIONS AS OF DECEMBER 31, 2025
Status of Open Audit Recommendations as of December 31, 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 Police Department conducted an analysis of the costs associated with the Secondary Employment Unit (SEU) and has developed an implementation proposal that includes 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 also 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: Dec-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 #1204-22, the Police Department conducted an analysis of the costs associated with the Secondary Employment Unit and has developed an implementation proposal than includes 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: Dec-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 Closed In 2025, the City's agreement with the Police Officers' Association (POA) increased the employee annual contributions from $110 to $200. The Administration reports that this is expected to reduce the City's cost from $73,000 to $21,000, a saving of over $50,000. While this does not achieve full cost recovery, it significantly reduces the City's portion of the liability policy insurance.

Potential Monetary Benefit: Actual savings from this increase are expected to be $52,000.

Status of Open Audit Recommendations as of December 31, 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.

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 also 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: Dec-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 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 City Council amended City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy in March 2026. The updated policy sets forth considerations for establishing fees at levels that achieve full cost recovery or higher, when appropriate.

This approach allows the City to mitigate the costs of providing certain services, respond to market forces, and account for competitive and financial conditions, while ensuring that rate adjustments remain fair and appropriate. #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 Implemented The City Council amended City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy in March 2026. The update sets forth considerations for establishing fees at levels that achieve full cost recovery or higher, when appropriate.

Status of Open Audit Recommendations as of December 31, 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. In addition, the City's Housing Element Strategy includes 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. Using County and Business License Tax data, staff report that they are continuing work to preliminarily identify condominiums and townhomes that may potentially qualify for the Residential Occupancy Permit Program. Further work on the most accurate source for this information is pending. 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. The Department reports that a 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.

However, the implementation timeline for the new code enforcement system has been delayed, with an expected date of implementation of 2027. Target Date: Jul-2027 (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 considering changes to the program to increase permittee awareness of the refundable deposit. Changes may include 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. Target Date: Dec-2026 (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, Planning, Building and Code Enforcement (PBCE) reported that the Information Technology Department (ITD) had completed the first two phases of the fee estimation tool for accessory dwelling units and new residential construction.

PBCE reports completion of the third phase of the fee estimator tool in August 2025, covering multifamily new construction. The final phase of the fee estimator tool addressing single-family additions and alterations is expected to launch in June 2026.

Target Date: Jun-2026 (Delayed From: Jun-2016)
Status of Open Audit Recommendations as of December 31, 2025 28 Report and Recommendations Dept (s) Current Status Comments #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
-
Priority
A) The City has reached an agreement with Valley Water to amend 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 changes to the cost sharing agreement are pending completion of an Environmental Impact Review for the further development of the site, which is expected to be finalized at the end of 2026.

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: Dec-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 Implemented The Office of the City Clerk has documented methodologies for calculating performance measures, assigned team leads to maintain these performance measures, and documented an action plan for when 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.
#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 governing the retention and disposition of electronic records and City email. This resulted in revisions to City Administrative Policy 1.7.1 - Use of E-Mail, Internet Services, and Other Electronic Media in September 2025. The CMO reports that staff are currently finalizing training material based on the policy updates, with Citywide training scheduled to begin in Spring 2026. The CMO also reports that the Open Government Manager (OGM) continues to provide training to department Public Records Act (PRA) Coordinators, monitors the records center to ensure PRA requests are completed in a timely manner, and communicates with PRA Coordinators to provide feedback on PRA responses. Target Date: Sep-2026 (Delayed From: Dec-2024) Status of Open Audit Recommendations as of December 31, 2025 29 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 Closed Public Works no longer maintains a hard or soft copy of a Project Management Manual. In its place, the Department has made upgrades to its Capital Project Management System (CPMS) and implemented a comprehensive Training and Development program. CPMS is now structured to ensure that all project files have been standardized among other process improvements. The Training and Development program provides and archives trainings for both new and existing project managers on their responsibilities and updates to procedures. These resources meet the intention of the recommendation, which was to ensure consistency in project delivery and to provide an update to their policies. #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 The Police Department adjusted the fee to $122 per vehicle; the Council adopted the revised fee effective February 2019. The responsibility of administering the program shifted to the Police Department after the City onboarded a new vendor to manage tow administrator services. A new tow program manager was hired in February 2025 but due to other priorities, did not conduct a substantive review of the vehicle release fee prior to the FY 2025-26 budget development cycle. The Department plans to evaluate the feasibility and fiscal impact of a subsidized vehicle release fee for low- income vehicle owners using data from the new tow program platform before the FY 2027-28 budget development cycle. This evaluation is anticipated to occur in early fall 2026 and will inform a potential recommendation to City Council. Target Date: Dec- 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 and failures of prospective personnel lack 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-2027 (Delayed From: Dec-2020)
Status of Open Audit Recommendations as of December 31, 2025 30 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 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, and 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.

Planning, Building and Code Enforcement 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, and 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, and 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 December 31, 2025 31 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 to enhance 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, and 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) Parks, Recreation and Neighborhood Services (PRNS) reports implementing a risk assessment tool to screen participants for all Youth Intervention Services (YIS) programs. The screening tool is meant to help programs measure the level of risk for involvement in youth violence to ensure that programs are serving the populations they intended (e.g., at-risk, high-risk, gang impacted, or gang-intentional). The Department reports that it is working with its BEST grantees to increase compliance with this requirement.
b) Since the audit, PRNS reports that it has focused its programming on mentorship as opposed to case management through service plans.
c) PRNS reports that screener tool results will be included in the annual evaluation report, which will be shared as part of annual report to the Neighborhood Services and Education committee. 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 Implemented The San José Youth Empowerment Alliance serves 18 school districts. Parks, Recreation, and Neighborhood Services (PRNS) has updated and executed agreements for 17 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, San José Unified, Oak Grove, Union, and Morgan Hill School Districts. The agreements now articulate roles and responsibilities for City and school staff as well as a requirement for parental consent to enroll participants. 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.

Staff also reported focusing on schools with high need youth and has not served Cupertino Union in the past three years. Because the Department updated all the remaining agreements, we recommend categorizing this recommendation as implemented.

Status of Open Audit Recommendations as of December 31, 2025 32 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 Implemented a) The City developed a Children and Youth Services Master Plan that provides a comprehensive Citywide strategic roadmap for the City's policy priorities around creating pathways and opportunities toward improved health outcomes and economic mobility for children, youth, and young adults. The San José Youth Empowerment Alliance started reorganizing internal programs to align with the strategic plan, which outlines objectives to address immediate issues related to youth violence; prioritizes key results that are most critical; and focuses on providing youth with resources, support, and skills to improve their overall educational, career, health, and economic outcomes.
b) In its 2025 report to the Neighborhood Services and Education committee, PRNS reported the key program outcome measures for prevention, intervention, diversion and reentry, and healing as well as the baseline indicators they would be measured against.
#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) has developed pre- and post- program surveys for all participants for the Youth Intervention Services (YIS) and BEST programs. According to PRNS, they anticipate reporting the results of the YIS evaluation at the Neighborhood Services and Education committee in spring 2027 but a complete year of data will only be available in 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 Implemented The City Clerk's Office made updates to its Form 700 procedures for handling non- filers and referrals to the FPPC. 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 be responsible for referring non-responsive filers who are 150 days late to the FPPC for enforcement. The City Clerk's Office has also updated its procedures to capture its general policy around the assessment of late fines.

Status of Open Audit Recommendations as of December 31, 2025 33 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 report that one project was completed in Fall 2025, and another is anticipated to be completed in 2027. The first project experienced numerous procurement delays, and the second project is currently delayed due to easement needs for utility substructures. Public Works plans to evaluate an alternative method to calculate the undergrounding fee using comparable construction projects completed by the City and PG&E estimated costs. Target Date: Dec-2026 (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 Implemented Public Works Fleet Management completed updates to City Policy Manual 1.8.1, which provide guidance on utilization for departments and requirements for partner departments to report out utilization annually.

Potential Monetary Benefit: At the time of the audit, we identified $160,000 in work orders 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 a) 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.
b) According to the Department, the current PM compliance target is 80 percent completion within 10 days of receipt of vehicle. The Department reports that because of vehicle and equipment shortages, users have a high workload and bring in vehicles late.
c) Public Works has created a dashboard tracking PM compliance performance and reports it intends to implement a disincentive program. Target Date: Jul-2026 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of December 31, 2025 34 Report and Recommendations Dept (s) Current Status Comments #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 has worked with Public Works' Technology Services to develop 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. Specific partner departments have dashboards (such as Fire, Police, and Parks, Recreation and Neighborhood Services) to show the availability of City-owned assets. Fleet plans to create future internal reports to enhance performance monitoring, but is currently focused on backlogged work.

Target Date: Jun-2026 (Delayed From: Jan-2023)
#20-02 Fleet Maintenance and Operations
#08 To enhance accountability and transparency, Public Works’ Fleet Division should develop and report on performance measures on work order timeliness.

PW Implemented Public Works has developed a Fleet work order timeliness performance measure:
"Average vehicle downtime that is out of service due to service or repair." The information is to be reported out annually in the City's Operating Budget. #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. Public Works reports that staff are making progress on the standardization of data entry, and that it is working on a Standard Operating Procedure. Target Date: Jun-2026 (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 external factors, such as budgets, purchasing timelines, or supply chain issues, may impact performance around timelines and costs. However, they intend to identify the parts of the fleet acquisition process they are responsible for to develop goals or targets. Target Date: Jun-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. Additionally, staff report they are assessing existing open fees to evaluate how inflight permits and open invoices will impact the report. After these steps, the Division plans to submit the report requirements to the Information Technology Department. Target Date: Dec-2026 (Delayed From: Sep-2021)
Status of Open Audit Recommendations as of December 31, 2025 35 Report and Recommendations Dept (s) Current Status Comments #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 continues to implement time tracking in the City's integrated permitting system (AMANDA) for engineering review and inspection work; data collection is ongoing. The next phase of implementation focuses on using these records to develop work-in-progress measures by aligning tracked staff time with funds expended on active projects, allowing reporting to reflect workload and costs to date for work-in-progress. Public Works staff report coordinating with Planning, Building and Enforcement to establish consistent milestone definitions and a shared methodology so milestone progress aligns with project schedules and supports work- in-progress estimates. This cross-department alignment is still in development.

Target Date: Dec-2026 (Delayed From: Jun-2020)
#20-05 Development Partners’ Work-in-Progress Reserves
#04 To ensure that the Development Partners have adequate funding to support their development work, Public Works, the Fire Department, and Planning, Building and Code Enforcement should work with the Budget Office and the City Attorney’s Office to develop reserve policies or guidelines around the appropriate uses of funds, including work-in-progress reserves.

CMO / PW
/ PBCE /
FIRE /
CAO
Implemented The Administration proposed updates to Council Policy 1-18, establishing guidelines around Development Services work-in-progress reserve funds. The revised policy was approved by the City Council in early March 2026, and established guidelines for reserves and fund balances within applicable Development Fee Programs Funds for multi-year projects, and requirements for annual review of fees, rates, and charges during the budget development process.
#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 In 2023, the Police Department contracted with a consultant to conduct a redistricting and staffing deployment analysis, which was completed in 2024. The analysis included recommendations for alternative staffing schedules. Based on the consultant’s work, the Department identified four priorities to support redistricting efforts: transitioning from a 16-district to a 12-district patrol structure, shifting to a district-based deployment model, continuing and potentially expanding the use of two- person patrol cars, and piloting district-wide response in certain areas of the city. The Department noted that due to the changes that a new district structure would entail, it is not currently prioritizing alternative schedule changes at this time. The Department reports that it is working on an update on these efforts and anticipates that the new district-based structure will begin in November 2026. Target Date: Nov-2026 (Delayed From: Jun-2023)
#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 has uploaded all City-owned lands to its Land Information System and now has the capability to store information needed for annual reporting on the City's vacant land inventory. Real Estate has generated an initial report on the vacant lands inventory which is intended to be reviewed annually. This report also contains a brief description of land to help identify if there is a City purpose or use for the land. Real Estate is intending to issue an informational memo for the first iteration of this periodic reporting. Target Date: Apr-2026 (Delayed From: Jan-2024) Status of Open Audit Recommendations as of December 31, 2025 36 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 facilities and land data from Public Works; the Department of Transportation (DOT); Parks, Recreation and Neighborhood Services (PRNS); and other sources have been uploaded into the Land Information System. Real Estate needed to clean the data to remove inactive properties and improve standardization; add key data fields, including maintenance division, to support identification of managing departments; and has begun incorporating DOT’s weed abatement data to help identify vacant or unmanaged parcels. Real Estate is continuing work to complete integration of remaining parks and open-space data. Real Estate is also finalizing database fields and reporting functionality needed to support proactive maintenance coordination and reporting on City-owned properties. Target Date: Jun- 2026 (Delayed From: Jan-2024)
#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 Implemented Planning, Building and Code Enforcement (PBCE) implemented two supervisor dashboard reports, a Program Actions and a Pipeline report, to allow managers to track cases by census tracts and better manage inspector workload and performance.

In September 2025, PBCE used this data to rebalance workloads across inspectors.

PBCE also implemented a new Escalating Enforcement Policy that provides guidelines for compliance timelines, and standard processes and timelines for escalating cases through the enforcement process. A training on the new policy was held in September 2025 and expectations related to the policy are intended to be incorporated into the next round of annual inspector performance evaluations. #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 Code Enforcement plans to review and revise its employee expectations and incorporate into performance evaluations based on current and updated division policies and procedures, objective criteria, and performance measures. Target Date:

Jun-2026 (Delayed From: Dec-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 operational in fall 2026, and Advanced Metering Infrastructure (AMI) that may include a mobile work order module, anticipated to be completed in 2028. Target Date: Dec-2028 (Delayed From: Jun- 2022)
Status of Open Audit Recommendations as of December 31, 2025 37 Report and Recommendations Dept (s) Current Status Comments #21-05 Municipal Water Billing and Customer Service
#05 To better assess performance, the Environmental Services Department should revise the performance measure methodology for “% of customer service requests handled within 24 hours” to use operational data instead of customer survey data.

ESD Not Implemented The purpose of this recommendation was to accurately measure the timeliness of responses to customer service requests. The Environmental Services Department reports that an update to the City’s utility billing system is expected to be operational in fall 2026, and implementation of an Advanced Metering Infrastructure (AMI) system anticipated for completion in 2028, may result in better work order and response tracking. Target Date: Dec-2028 (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 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, guidance on developing project descriptions, project and time management best practices, and others. PBCE updated its 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 have begun reviewing preliminary review applications for development projects. PBCE expects that these planners will be the Project Managers if the projects continue with development. Going forward, PBCE plans to further expand this model by assigning more applications to Environmental Review planners.
#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 the City's integrated permitting system (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 Review Handbook, 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 2026 at the earliest. Target Date: Jun-2027 (Delayed From: Dec-2023)
Status of Open Audit Recommendations as of December 31, 2025 38 Report and Recommendations Dept (s) Current Status Comments #22-02 Environmental Review for New Developments
#06 To make the environmental review process more
standardized and consistent, the Department of Planning, Building and Code Enforcement should update and expand relevant tools and templates for the environmental review team, as well as develop related procedures on the expected usage, including:
a. Establish a standard project schedule tracker that staff are expected to use for projects, and
b. Create additional tools and templates to support project management, such as agenda templates for meetings with
different stakeholders, a consolidated list of the City’s thresholds of significance, and City resolution templates for adoption for the different types of environmental reviews.

PBCE Partly Implemented a) 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 has been working with a consultant to prepare an Environmental Review Handbook, which includes a list of the City's thresholds of significance. Once work on the handbook is complete, staff will finalize a set of templates for common environmental review documents. 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. Target Date: Jun-2026 (Delayed From: Jun-2023) #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 is now working to finalize an Environmental Review Handbook, which includes expectations for staff and consultants for check-ins, schedule, and delays. b) Beginning January 1, 2023, the City has required that all applications for private development that need California Environmental Quality Act (CEQA) analysis must use a consultant on the City's Approved Environmental Consultants list. An updated City List of Approved Environmental Consultants was published on the City’s website in July 2025. 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. 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 Partly
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 an Environmental Review Handbook with thresholds of significance and updated templates. The final draft of the Environmental Review Handbook is being reviewed by the City Attorney's Office and stakeholders. PBCE expects that the handbook will be finalized by April 2026. Target Date: Apr-2026 (Delayed From: Jun-2023)
Status of Open Audit Recommendations as of December 31, 2025 39 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 Implemented
-
Priority
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 guidelines for tracking time spent on environmental reviews and includes references of what activities should be billed. Per PBCE, reporting of hours in the City's integrated permitting system (AMANDA) increased from bi-weekly to weekly reporting to improve time tracking. PBCE also reports that staff have started implementing simple housekeeping practices that will help with cost recovery. Guidelines for timecards and AMANDA tracking have been updated to reflect changes in time tracking and invoicing for two departments to recover overhead costs not covered previously according to staff.
b) Planning updated the fee schedule (effective August 11, 2025) to increase the base fee for certain types of exemptions that require technical studies and EIRs.

Reviewing AMANDA staff hours over the past four fiscal years helped to inform these changes. 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 reports that staff will continue to review the cost recovery model and assumptions as new CEQA streamlining laws take effect and if PBCE conducts comprehensive reviews of their cost recovery model. The Auditor's Office encourages PBCE to continue reviewing cost recovery calculations on an ongoing basis to ensure there are sufficient resources to conduct required CEQA reviews.

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.

Target Date: Jun-2027 (Delayed From: Dec-2022)
Potential Monetary Benefit: At the time of the audit, we estimated 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 December 31, 2025 40 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- 2026 (Delayed From: Dec-2022)
#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 Implemented Public Works has updated City Policy Manual 1.8.1 to clarify guidelines for take-home vehicles.

Status of Open Audit Recommendations as of December 31, 2025 41 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 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). The expectations for these periodic department updates have been added to City Policy Manual 1.8.1. #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 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 has updated City Policy Manual 1.8.1 to require departments to self-monitor take-home vehicle usage. #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 Implemented Public Works and the Finance Department have updated City Policy Manual 1.8.1 with a review process to ensure that employees receiving taxable fringe benefits are properly identified.
#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 Planning, Building and Code Enforcement (PBCE) has drafted submittal guidelines to include requirements for landscape and irrigation plan sets to be submitted as part of the Development Review Entitlement process. PBCE has also drafted a Certificate of Compliance form which will need to be submitted prior to issuance of a Certificate of Occupancy. Staff have determined next steps for how to implement these processes for different types of permit applications, both for intake and review as well as verification of the installation. PBCE reports that staff are working with the Information Technology Department to modify the permit system process, and that staff are also working to identify who will be responsible for reviewing and verifying installation.

Target Date: Jun-2026 (Delayed From: Jan-2025)
Status of Open Audit Recommendations as of December 31, 2025 42 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
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 published a list of the best species selection and tree planting to promote the survival of trees in various urban environments, as well as a list of which trees are not recommended for planting.
#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. DOT reports that the grant has been confirmed and approved, and outreach materials are currently under review for publication. Target Date: Jun-2026 (Delayed From: Dec-2023) #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 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 FY 2025-26 Direct Discharge Trash Program contract was executed as of October 1, 2025, and includes the performance metric requirement.

Status of Open Audit Recommendations as of December 31, 2025 43 Report and Recommendations Dept (s) Current Status Comments #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 Partly Implemented The Environmental Services Department (ESD) coordinated with the Information Technology Department and the Finance Purchasing Division on a Request for Proposal to procure a new Environmental Enforcement Data Management System (EEDMS) for the Integrated Waste Management and Watershed Protection enforcement teams. According to the ESD, a vendor has been selected and project implementation is in progress with completion targeted for June 2027. Target Date:

Jun-2027 (Delayed From: 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 Implemented Since the audit, the Housing Department (Housing) has significantly changed their performance measure reporting. As part of the City Manager’s Performance Measure Modernization Project, the Housing updated its performance measures in the City’s Adopted Operating Budget. They have also reduced the number of performance measures and reporting platforms. They have created an interim housing dashboard that tracks different aspects of shelter operations, including utilization rates, which is a key Neighborhood Services CSA performance indicator. They have also created a housing production dashboard which shows production of different housing types. #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 The Housing Department (Housing) reports it is in the process of documenting the methodologies for its performance measures to ensure they are consistent over time.

Target Date: Jun-2026 (Delayed From: Jun-2025)
#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 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: Sep-2026 (Delayed From: Sep-2024)
Status of Open Audit Recommendations as of December 31, 2025 44 Report and Recommendations Dept (s) Current Status Comments #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 has completed the programming updates in the City's integrated permitting system (AMANDA) 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: Jul-2026 (Delayed From: Sep-2024) #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 Implemented Planning, Building and Code Enforcement (PBCE) developed two operating policies and procedures for the Permit Center outlining processes for assigning projects for permit issuance, following up on outstanding fees, and forwarding projects to the appropriate Development Partners. PBCE posted the documents in its Policy and Procedure Hub to ensure staff have access to the most current guidance. #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, and converting customer-facing PDF documents to webpages to enable the browser translation option. Target Date: Sep-2026 (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. Per HR, staff researched into a new system and conducted initial stakeholder feedback meetings. HR reports that further advancement is contingent on the outcome of the budget proposal process, as funding is required to purchase the system module. If funding is approved in the FY 2026–27 budget, HR expects the system will be implemented as planned; otherwise, HR reports that implementation will be deferred until FY 2027–28. Target Date: Dec-2026 (Delayed From: Jun-2026) Status of Open Audit Recommendations as of December 31, 2025 45 Report and Recommendations Dept (s) Current Status Comments #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 (OC), in partnership with the Office of Racial and Social Equity, plans to require each department to include one language access objective within their Racial and Social Equity Action Plan starting in July 2026. The intent of this is to streamline and strengthen equity efforts across the City while being mindful of budget and staff capacity. OC reports that embedding language access into this established planning process will reduce duplicative work and reinforce language access as a core equity strategy. The Language Access Manager plans to support departments by providing guidance and technical assistance in developing and implementing their objectives. Target Date: Jul-2026 (Delayed From: 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 (OC), in partnership with the Office of Racial and Social Equity, plans to require each department to include one language access objective within their Racial and Social Equity Action Plan starting in July 2026. The intent of this is to streamline and strengthen equity efforts across the City while being mindful of budget and staff capacity. OC reports that embedding language access into this established planning process will reduce duplicative work and reinforce language access as a core equity strategy. In addition, the Language Access Manager plans to support departments by providing guidance and technical assistance in developing and implementing their objectives. The City’s Interpretation and Translation Standard Operating Procedures provide step-by-step guidance for staff to address verbal, written, and visual communications, as well as instructions for identifying and securing appropriate language services for residents with limited English proficiency.

Lastly, as of September 2025, all City staff are required to complete Language Access and Customer Service training. Target Date: Jul-2026 (Delayed From: Dec- 2025)
#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
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 referenced in contracts with digital service vendors through the accessibility requirements, making language services a legal requirement for those vendors. Finance-Purchasing also worked with the City Attorney's Office to update their scope templates to add language accessibility requirements for departments to adopt and use as needed for other services. #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 reports drafting preliminary language equity goals, performance metrics, and a system to monitor performance, and plans to review the draft with department Accessibility Liaisons. Target Date: Dec-2026 (Delayed From:

Dec-2025)
Status of Open Audit Recommendations as of December 31, 2025 46 Report and Recommendations Dept (s) Current Status Comments #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 Implemented The Office of Retirement Services (ORS) has worked with the City’s Finance Department (Finance) to establish purchase orders for service providers and subscription services to avoid the use of wire transfers to pay invoices. #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 The Housing Department (Housing) is in the process of developing a Tenant Protection Ordinance (TPO)-only roster using data from the City's integrated permitting system (AMANDA). Housing reports that its Data Division, working with the Information Technology Department, has worked to enhance and update Housing's database of multi-family buildings by integrating data from AMANDA, and validating unit counts and addresses using GIS datasets. Using an integration tool, the Data Division intends to refresh the roster quarterly to reflect changes in ownership, unit counts, or new buildings. Each unit is designated as (1) covered by the Apartment Rent Ordinance and Tenant Protection Ordinance; (2) covered only by the Tenant Protection Ordinance; or (3) exempt from both ordinances. Full validation of the data is expected in spring 2026. Target Date: Apr-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
Partly Implemented As described in recommendation #2405-01, the Housing Department (Housing) is finalizing the integration of unit and building data from the City’s integrated permitting system (AMANDA) into the Rent Stabilization Program’s Salesforce database, which will serve as the basis for unit counts. According to Housing, they intend to capture unit discrepancies reported by property owners in the Salesforce database and share those discrepancies with Code Enforcement through regular reporting. In addition, Housing and Information Technology Department (ITD) staff confirmed protocols for exemption fields in AMANDA to ensure units determined to be exempt by Housing staff are accurately captured so fees would not be charged. According to Housing, staff reviewed AMANDA rosters provided by ITD to verify that exempt properties were correctly marked. Going forward, when Housing staff approve exemption requests, they will mark units as exempt directly in AMANDA, and those updates will be validated and integrated into the Salesforce database through regular data refreshes.

Target Date: Apr-2026
Status of Open Audit Recommendations as of December 31, 2025 47 Report and Recommendations Dept (s) Current Status Comments #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 The Housing Department (Housing) has developed draft Tenant Protection Ordinance (TPO) regulations to provide clarity regarding what units are exempt, as well as to detail the process for owners to apply for exemptions. Housing reports that as part of this work, forms and instructions are being updated to provide more clarity prior to the annual exemption process and the exemption request cadence is being separated out from the regular annual billing process. Housing expects to release an informational memorandum regarding in the updated regulations in spring 2026. Target Date: Apr- 2026 (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 The Housing Department (Housing) reports taking multiple steps to better allocate staff time across the Rent Stabilization Program (RSP). Supervisors review staff time on each ordinance when they approve timecards to ensure time is assessed appropriate to day-to-day work. The RSP program’s interaction log process now includes a field for staff to identify the specific RSP program or ordinance associated with each interaction. In addition, as described in recommendation #2405-01, the RSP is developing unit rosters by program area, which will further help clarify how staff time and interactions are distributed across programs. Target Date: Jun-2026 (Delayed From: Jun-2025)
#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 Partly Implemented The Tenant Protection Ordinance enforcement (TPO) case tracking process is detailed in the Rent Stabilization Program procedures and case files are organized on the Program’s SharePoint site. TPO case tracking and management through Salesforce is under development as part of a larger Salesforce TPO database project.

Target Date: Jun-2026 (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 Improvements to the Housing Department's (Housing) Salesforce database to better track interactions were finalized in July 2025 and staff were trained on the interaction log process between June and August 2025. Housing'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. This work is being done in phases with full implementation expected by June 2026. Target Date: Jun-2026 (Delayed From: Jul- 2025)
Status of Open Audit Recommendations as of December 31, 2025 48 Report and Recommendations Dept (s) Current Status Comments #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 Partly Implemented Performance measures related to the Tenant Protection Ordinance (TPO), aligned with the Rent Stabilization Program Strategic Plan, are included in the City’s Adopted Operating Budget. The Housing Department (Housing) is currently gathering case- level data to better track other measures included in the Strategic Plan, which may be included on a performance dashboard or reported to the Housing and Community Development Commission. Target Date: Jun-2026 (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 Since the audit, the Housing Department (Housing) updated its Rent Stabilization Program Outreach Strategy to employ a more data-driven approach using GIS mapping and Salesforce reports with data from interaction logs, Tenant Protection Ordinance notices, and petitions. The Program also uses 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 using data at the census tract level, rather than zip code level. The Salesforce database improvements and enhancements will include census tract info.

Those improvements are expected to be complete by June 2026. 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: Jun-2026 (Delayed From: Jul-2025)
#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) has begun updating its outreach strategy to interact with and educate landlords through various forms of engagement, including virtual and in-person presentations and social media posts. According to the Housing Department, the work to date has mostly focused on units covered by the Apartment Rent Ordinance. They intend to begin incorporating Tenant Protection Ordinance (TPO) information into its outreach plan more broadly with monthly office hours and webinars for property owners. In addition, improvements were made to Rent Registry

7.0 which communicate requirements regarding TPO information posting requirements to owners registering their units. Questions about whether the TPO info flyer is posted on their property and where were also added to the rent registry.

Target Date: Jun-2026 (Delayed From: Jul-2025)
Status of Open Audit Recommendations as of December 31, 2025 49 Report and Recommendations Dept (s) Current Status Comments #24-05 Tenant Protection Ordinance
#11 To ensure landlord compliance with the Tenant Protection Ordinance (TPO), the Housing Department should:
a. Coordinate with the Department of Planning, Building and Code Enforcement’s Multiple Housing Inspection Program to check whether TPO information is posted during routine
inspections of multiple housing properties, and
b. Develop a process to follow up with landlords to determine whether information had been distributed to tenants in accordance with the Municipal Code.

HSG /
PBCE
Partly Implemented The Housing Department (Housing) implemented improvements to Rent Registry 7.0 which communicate Tenant Protection Ordinance information posting requirements to owners registering their units. 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 postings as part of Code Enforcement’s inspection checklist as appropriate. Target Date: Jun- 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
Implemented The Fire Department (Fire) developed a comprehensive "After A Fire" webpage that includes a section with the Rent Stabilization Program (RSP) phone number and email, as well as basic information relevant to the RSP. According to the Housing Department, they have also increased coordination with Fire and the American Red Cross that has allowed them to better connect with tenants and landlords impacted by fire incidents.
#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 Implemented San José Animal Care and Services (ACS) assessed capacity for care in three ways:
available kennel space, staffing resources, and the estimated daily population. ACS' analysis yielded a capacity of care of about 300 animals, with the capacity limited primarily by staffing resources. ACS reports that they will revisit their capacity for care calculations quarterly to integrate updates to the shelter population data and evaluate if additional staffing should be considered in future budget cycles. #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 Implemented To assess demand for shelter space, San José Animal Care and Services (ACS) began using an electronic log to track intake diversions. Of the animals they are legally required to impound, ACS observed a small proportion of animals being diverted relative to overall intake. Additionally, using intake and average length of stay data from FY 2024-25, ACS estimated housing 194 dogs and 283 cats daily. Although these figures exceed the shelter’s available kennel space, ACS’ capacity for care is limited primarily by staffing resources (as noted in #2406-01). Even if kennels are added, ACS staff may not be currently able to care for more animals. As such, ACS aims to reduce its overall shelter population by implementing population management practices, rather than increase kennel space. ACS identified potential kennel upgrades to improve the health and safety of both animals and staff, with estimated timelines (subject to funding availability). ACS identified funding strategies such as donations, fundraising opportunities, grants, an infrastructure bond, and the annual budget process.

Status of Open Audit Recommendations as of December 31, 2025 50 Report and Recommendations Dept (s) Current Status Comments #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 Implemented a. San José Animal Care and Services (ACS) identified the staffing resources required to maintain a kitten nursery, estimated the number of cats cared for in its kitten nursery during FY 2024-25, and approximated live outcomes from the kitten nursery.
b & c. Based on the analysis in part a, ACS created a plan to evaluate and phase out the need for its overnight kitten nursery. Per the plan, ACS will focus on diversion efforts while maintaining the kitten nursery during the 2026 kitten season. Diversion efforts include educating the community on when to leave newborn kittens with their mothers, and utilizing its foster and rescue networks to triage kittens out of the shelter. Additionally, staff developed a neonate kitten intake policy and pathway planning matrix, updated its euthanasia protocol, and identified the maximum capacity in the kitten nursery. Together, this guidance can help staff determine the appropriate pathways for newborn kittens. Starting June 2026, ACS plans to evaluate its diversion efforts by reviewing trends in kitten intake, foster sign-ups, and rescues. If implementation goes as planned, ACS will close the overnight kitten nursery by the end of 2026.
#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 Implemented
-
Priority
Since the audit, San José Animal Care and Services (ACS) extended its purchase orders with two spay and neuter services vendors, which are active through September 2026. According to staff, ACS is working with Finance, and the City Attorney’s Office as necessary, to use unique services procurements to obtain future spay and neuter services.
#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 Implemented
-
Priority
San José Animal Care and Services (ACS) adopted the Association of Shelter Veterinarians’ (ASV) Guidelines as its primary manual. ACS is also organizing ACS- specific policies and procedures to align with chapters in the ASV Guidelines; this repository serves as the ACS Manual (also see #2406-14). ACS set up quarterly meetings for division managers to review and ensure the ACS Manual repository is up to-date and continues to align with the latest ASV Guidelines. ACS also has weekly meetings among division managers, which serve as opportunities to update policies and procedures.

Updated ACS-specific policies, or the ASV Guidelines combined with the shelter’s control systems, incorporated many of the ASV Guidelines identified as not or partially addressed during the audit. We encourage ACS to continue assessing its Manual to ensure alignment with the ASV Guidelines and current ACS practices.

Status of Open Audit Recommendations as of December 31, 2025 51 Report and Recommendations Dept (s) Current Status Comments #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 Implemented San José Animal Care and Services (ACS) has trainings and shelter-specific protocols around cleaning, feeding, and using personal protective equipment. ACS also adopted the Association of Shelter Veterinarians’ (ASV) Guidelines as its primary manual (see #2406-11), which includes the requirement for shelter management to routinely monitor and ensure compliance with protocols. Specific to shelter operations, ACS further documented performance targets for its Shelter Coordinators and Supervisors, which contains expectations to monitor the completion of animal care tasks and perform shelter walkthroughs. To provide regular feedback to staff and reinforce ACS’ protocols and procedures, Shelter Coordinators conduct daily huddles and monthly one-on-ones, while the medical team holds monthly meetings. #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 Implemented San José Animal Care and Services (ACS) created a policy and updated their onboarding checklist around infectious and zoonotic disease trainings. The policy and checklist contain materials on using personal protective equipment (PPE) and recognizing clinical symptoms for diseases in dogs and cats. All staff are required to review the training videos during onboarding and annually. The policy also states that when staff 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. Per ACS’ disease reporting and response protocol, a veterinarian or medical supervisor will email all staff if an infectious disease is confirmed and identify areas that are placed under quarantine. Shelter Coordinators are responsible for posting the appropriate PPE signage. #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 Implemented San José Animal Care and Services (ACS) designated a specific folder in its SharePoint site as its “policies and procedures repository,” which all ACS staff can access. The repository has sub-folders to mirror the chapters in the Association of Shelter Veterinarians’ Guidelines. Key policies were moved into the repository in February 2026. ACS management will continue to update the repository as new policies are created or as procedures change.

As outlined in the shelter coordinators’ performance targets, shelter coordinators are responsible for reviewing procedures and protocols with new and existing staff. For medical operations, the health technician supervisor reviews medical policies and procedures with health technicians and assistants during onboarding. According to ACS, supervisors provide real-time feedback if they observe staff not following the shelter’s protocols. Additionally, as noted in #2406-12, Shelter Coordinators conduct daily huddles and monthly one-on-ones, while the medical team holds monthly meetings, to reinforce ACS’ protocols.

Status of Open Audit Recommendations as of December 31, 2025 52 Report and Recommendations Dept (s) Current Status Comments #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 Implemented San José Animal Care and Services (ACS) created or updated their guidelines and protocols around feeding, providing water, cleaning, enrichment, and kennel location changes. The guidance states that staff should record the completion of their task or the updated kennel location within five minutes. Additionally, Shelter Coordinators provide in-person instruction on data entry during onboarding, are responsible for verifying all tasks on the daily kennel dashboard are recorded as completed, and are expected to follow up with assigned staff when tasks are not recorded as complete. #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 Implemented San José Animal Care and Services (ACS) created performance targets for Shelter Coordinators and supervisors that formalize their oversight responsibilities for daily animal care activity. Shelter Coordinators are expected to conduct a kennel walkthrough and verify that all animal care tasks are marked as complete in ACS' kennel dashboard each day. Coordinators are expected to also follow up with assigned employees when tasks are incomplete, reassign the tasks if needed, and email the Shelter Supervisor with any incomplete tasks or employee attendance issues. To provide additional oversight, the Shelter Supervisor's performance targets include reviewing daily status emails from coordinators, conducting shelter walkthroughs, and supervising the shelter’s cleaning and disinfection practices. #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 Implemented a. San José Animal Care and Services (ACS) developed an electronic inventory tracking sheet for shelter supplies (e.g., animal food and cleaning supplies). The tracker 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. Animal Care Attendants (ACAs) are directed to fill out hardcopy inventory sheets in storage areas; Shelter Coordinators are responsible for inputting the quantity used by ACAs in the electronic tracker.
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.

Status of Open Audit Recommendations as of December 31, 2025 53 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 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 12-month period. The report is linked on ACS’ website on its “About Us” page. ACS’ goal is to update the report quarterly. 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 included additional data points in its ACS Annual Report to the Neighborhood Services and Education Committee, such as data on the number of animals brought to the shelter in FY 2024-25 based on medical condition (e.g., healthy, unhealthy and untreatable). ACS also established an "ACS Public Reporting" web page that includes links to its various dashboards that show data on spay and neuter surgeries, average stay at the shelter, current shelter inventory, and more. In addition, the web page includes other information, such as annual Asilomar reports (an industry-based report on animal outcomes).

Status of Open Audit Recommendations as of December 31, 2025 54 Report and Recommendations Dept (s) Current Status Comments #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 Implemented San José Animal Care and Services (ACS) filled and assigned a System Applications Programmer position to be responsible for overseeing data management for ACS.

This role is responsible for updating procedures around data entry protocols (a), implementing a process for Chameleon data to be regularly reviewed and data issues to be addressed (a), working with the Chameleon vendor to assess whether there are standard controls to reduce data entry errors (b), identifying the most relevant Chameleon reports to inform data reporting and operations and ensuring data queries are accurate on relevant Chameleon reports (c), and establishing a process to track changes made to Chameleon (d). ACS has assigned shelter coordinators to be responsible for training staff on procedures around data entry protocols, with guidance from the System Applications Programmer (a). Additionally, ACS has established performance targets that include data management expectations for these roles, and has implemented other data practice improvements, such as enabling a feature to better track foster animals in its case management system.

Further, to address the different responsibilities identified in the recommendation:
a. ACS has started developing a list of "How To" procedures and documents to help with data entry training. 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. 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 put in place a mechanism to track changes made to Chameleon reports.
#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 Implemented San José Animal Care and Services (ACS) has assigned the responsibility of maintaining a current list of rescue group contacts to the Rescue Coordinator. The contact list has been updated, and the Rescue Coordinator will continue maintaining the list as part of their regular job duties.

Status of Open Audit Recommendations as of December 31, 2025 55 Report and Recommendations Dept (s) Current Status Comments #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 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 information such as age, weight, and medical and behavioral information needed to support rescue decisions.
#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 Closed San José Animal Care and Services (ACS) developed timeliness targets for processing applications and a protocol for volunteer applications. ACS is currently processing volunteer applications, including minor applications, in two to three weeks.

Though ACS will continue to require a separate guardian application, because of improvements in timeliness from what we reported in the audit, we recommend closing this recommendation.
#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 Implemented San José Animal Care and Services (ACS) revised its training materials to include only essential trainings for tasks performed by volunteers; removed overlapping content such as Maddie’s Shelter training and limited Fear Free training to dog volunteers; incorporated dog and kitten zoonotic and infectious disease protocols into existing materials; and created and posted “how-to” posters throughout the shelter for volunteer-related tasks.
#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 Implemented San José Animal Care and Services (ACS) developed a communications protocol for the Volunteer Coordinator to inform volunteers of updated shelter practices and procedures, and to provide informal feedback on their work. ACS also updated the Volunteer Coordinator’s performance targets to reflect these responsibilities.

Status of Open Audit Recommendations as of December 31, 2025 56 Report and Recommendations Dept (s) Current Status Comments #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 Closed Rather than seeking a new volunteer management software, San José Animal Care and Services (ACS) has tailored the existing volunteer management software to better log and track volunteer hours, and schedule volunteer shifts. Because of these improvements, we recommend closing this recommendation. #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 Implemented At the time of the audit, San José Animal Care and Services (ACS) was far behind in addressing delinquent accounts. Since the audit, ACS has caught up with outstanding administrative citations and incorporated procedures for issuing citations in a timely manner into its shelter procedures.
#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 Implemented San José Animal Care and Services (ACS) now offers license fee exemptions for veterans in addition to seniors. ACS clinic is also providing free spay and neuter services to owned pets at a limited capacity each week and the ACS website lists other service providers that offer low-cost spay and neuter services. We encourage ACS to continue exploring more opportunities to provide services for owned pets. #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 Implemented San José Animal Care and Services (ACS) prioritized the remaining relevant Maddie's Fund Shelter Consult recommendations and developed target dates for implementation. ACS has also designated the Division Manager of Operations to monitor and track implementation status, though at this time a temporary position is the point person.

Status of Open Audit Recommendations as of December 31, 2025 57 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 Closed 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. In conjunction with recommendation #2406-39 to analyze the costs to ensure that future contracts better reflect service levels, in the context of the City’s overall budget ACS does not feel it is feasible to hire new animal control officers to improve Priority 2 and 3 call service delivery in San José.
#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 Closed San José Animal Care & Services (ACS) staff have made improvements in their expected cost analysis for services provided to contract cities. For instance, the cost analysis approach and tracking of intakes and calls are the same across the contract cities at this time. The contract for Milpitas is up for renewal this year. The contracts for Cupertino and Saratoga are up for renewal next year. Staff report the final amounts for the contracts are subject to change.

Potential Monetary Benefit: If all costs were calculated equally across each of the contracts with neighboring jurisdictions, we estimated additional revenues of $277,000 at the time of the audit.
#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 Information Technology Department, implementation of support for both Traditional Chinese and Simplified Chinese, including integration into the SJ311 Customer Call Center phone tree, has been deferred to FY 2026–27 due to the planned transition of the SJ311 application to a new technology platform over the next 12 months as part of the new Customer Relationship Management (CRM) initiative.

Target Date: Jun-2027 (Delayed From: 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 The Finance Department (Finance) reports the Accounting Fiscal Recovery and Grant Management unit has obtained preliminary pricing information from several external vendors for a new grant management platform and developed a budget proposal for submission to the Budget Office as part of the FY 2026–27 budget development cycle. Subject to budget approval, the next steps would include initiating a formal Request for Proposal (RFP) process and engaging qualified vendors. However, the Department notes that, given the projected FY 2026-27 budget deficit, the project timeline may be deferred. Target Date: Jun-2028
Status of Open Audit Recommendations as of December 31, 2025 58 Report and Recommendations Dept (s) Current Status Comments #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 has developed 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). As of January 2026, English, Spanish, and Vietnamese outreach materials had been finalized, while translation of these materials to Traditional and Simplified Chinese is projected to be complete by June 2026. Target Date: Jun-2026 (Delayed From: Dec-2025)
#25-01 City Costs for Outdoor Special Events
#01 To better inform event organizers about potential City security costs, the Administration and the Police Department should update the Special Event Guidelines and the Secondary Employment Unit Procedures Guide to:
a.Identify a threshold for which labor cost estimates are required to be provided to event organizers for security and traffic control. b.Identify a reasonable timeframe in which the Police
Department is required to notify event organizers of potential gaps in Secondary Employment Unit Staffing for organizers to secure additional private security.

OEDCA /
PD
Not Implemented The Administration reports that it is working with the Police Department's Secondary Employment Unit to identify a reasonable timeframe within which event organizers are notified of potential staffing gaps. Target Date: Dec-2026 #25-01 City Costs for Outdoor Special Events
#02 To ensure transparency of rates, the Police Department and the Office of Economic Development and Cultural Affairs should update the City’s special event’s website and the Special Event Guidelines to reflect all police costs, including large event rates, holiday rates, and all rates for sworn and non-sworn staffing.

OEDCA /
PD
Partly Implemented The Office of Economic Development and Cultural Affairs (OEDCA) worked with the Police Department to publish sworn and non-sworn staffing rates on the City’s special events website. OEDCA reports that it is working to add additional cost information on large event rates and holiday rates. Target Date: Jul-2026 (Delayed From: Dec- 2025)
#25-01 City Costs for Outdoor Special Events
#03 To reduce costs and address sworn staffing challenges, the Administration and Police Department should update the Special Event Guidelines and the Secondary Employment Unit Procedures Guide to define and prioritize roles for:
a.Private security which could include enforcing event rules and regulations, crowd control, parking, or other roles as appropriate; and
b.Non-sworn personnel around traffic control, including Community Service Officers, Crossing Guards, and the
Department of Transportation’s Parking and Traffic Control Officers.

OEDCA /
PD
Not Implemented The Administration reports that it is working with the Police Department's Secondary Employment Unit to define and prioritize roles for private security and non-sworn personnel. Target Date: Jun-2026
Status of Open Audit Recommendations as of December 31, 2025 59 Report and Recommendations Dept (s) Current Status Comments #25-01 City Costs for Outdoor Special Events
#04 To improve customer service and ensure alignment with the City’s Customer Service Vision and Standards:
a.The Administration should assess how the City can better coordinate or consolidate the permitting process, potentially through a technology solution.
b.The Office of Economic Development and Cultural Affairs should formalize their procedures to follow up with appropriate department staff post event to ensure organizers receive all necessary invoices in a timely manner.

OEDCA /
CMO
Partly Implemented The Office of Economic Development and Cultural Affairs (OEDCA) reports that the Police Department piloted software to streamline cost tracking and billing. OEDCA plans to use this platform to evaluate Citywide coordination opportunities. OEDCA reports that it's also working with relevant departments to assess next steps for implementing a post-event billing system that captures costs across all departments.

Target Date: Jun-2027
#25-02 Access and Use of Traffic Safety Services
#01 To ensure more schools receive traffic safety services, including Walk N’ Roll programming and other services, the Department of Transportation should develop an outreach plan to expand outreach to all schools in San José and target schools in equity priority communities.

DOT Partly Implemented The Department of Transportation (DOT) has prepared an initial draft of an outreach plan for its Walk n' Roll programming and is working on finalizing the plan, as well as preparing a plan for other school-related traffic safety services that DOT provides.

DOT reports that its outreach plan calls for the Walk n’ Roll Program to reach out to schools in equity priority communities that have not participated in Walk n’ Roll programming in the past two years. Per DOT, staff are reconnecting with all existing Walk n’ Roll schools (including those in equity priority communities) to understand their current needs and interest in services. DOT reports that several schools have responded and requested programming, and bike rodeos are now being scheduled for spring 2026. Per DOT, staff are also working closely with school districts to develop district-wide memorandums of understanding that would allow Walk n’ Roll services to be offered more broadly across their schools. Target Date: Jun-2026 #25-02 Access and Use of Traffic Safety Services
#02 To ensure more schools in equity priority communities receive the Police Department’s school traffic safety services, the Department should:
a. Update the School Safety and Education webpage to include information about the process to request crossing guards, b.Develop an outreach plan that includes focusing on schools in equity priority communities, and
c. Consider using the Schools-City Collaborative as a channel for disseminating outreach materials for the School Safety and Education Unit’s programs.

PD Not Implemented a. The Police Department (Police) reports that the School Safety & Education Unit (SSEU) is working with Police's webmaster to make SSEU information, services, and contact information more accessible.
b. According to Police, SSEU contacted every middle school and high school in San José and provided information about SSEU programs and services. Police reports that this outreach is an ongoing task that will take place annually before the school year begins. According to staff, SSEU supervisors are also encouraged to reiterate the message to the schools throughout the year as they make rounds, which includes schools that currently do not have any SSEU services. Staff also reports that SSEU built a social media and online presence to ensure the community is aware of the services they provide. Once SSEU documents its outreach plan, including what is the plan for trying to reach non-responsive schools, this part of the recommendation will be considered addressed.
c. Consideration of using the Schools-City Collaborative as a channel for disseminating outreach materials for SSEU's programs is still to be completed.

Target Date: Jul-2026
Status of Open Audit Recommendations as of December 31, 2025 60 Report and Recommendations Dept (s) Current Status Comments #25-02 Access and Use of Traffic Safety Services
#03 The Department of Transportation and the Police
Department’s School Safety and Education Unit should coordinate proactive outreach to increase the number of schools participating in traffic safety educational programs. This could include having a consolidated contact list, performing joint outreach, or other options.

DOT / PD Not Implemented The Department of Transportation and Police Department's School Safety & Education Unit (SSEU) plan to coordinate proactive outreach to increase the number of schools participating in traffic safety educational programs. They report that they plan to co-present at Walk n' Roll schools, particularly those with identified safety concerns. They have also discussed other potential opportunities to coordinate on proactive outreach. Target Date: Jun-2026
#25-02 Access and Use of Traffic Safety Services
#04 To promote efficiency and timeliness of review of school requests for crossing guards, the Police Department’s School Safety and Education Unit and the Department of Transportation should establish a process to better track and facilitate crossing guard requests and develop timeliness standards for department reviews.

DOT / PD Partly Implemented The Police Department's School Safety & Education Unit and Department of Transportation are working with the Information Technology Department to create a live spreadsheet for increased accountability. The draft of this tool to track crossing guard requests between the two departments has been prepared. Target Date: Jun- 2026
#25-02 Access and Use of Traffic Safety Services
#05 To increase access to traffic enforcement services, the Police Department should:
a.Translate the online traffic enforcement request form into the languages identified in the City’s Language Equity Policy & Guidelines (6.1.10), and
b.Provide targeted outreach to equity priority communities about requesting traffic enforcement services.

PD Partly Implemented a. The Police Department (Police) translated the online traffic enforcement request form into the languages identified in the City’s Language Equity Policy & Guidelines (6.1.10), so that the form is now available in Spanish, Chinese (Simplified and Traditional), and Vietnamese, in addition to English.
b. Police's Crime Prevention Unit in coordination with the Traffic Enforcement Unit created an information card containing instructions on how to file a traffic complaint and/or request traffic-related services. The card includes a “QR” code that opens the Department’s website “Request Traffic Enforcement” web page, with options to translate the page to the languages identified in the City’s Language Equity Policy & Guidelines (6.1.10). The information card contains the Traffic Enforcement Unit’s phone number and is currently available in three languages (English, Vietnamese, and Spanish). Police reports that the card is available for dissemination by patrol captains and lieutenants attending community meetings, by crime prevention personnel conducting safety presentations, and by Department personnel at all community outreach events. According to Police, the Department is currently working on translation services to also have the card available in Chinese Simplified and Chinese Traditional. Once Police has conducted targeted outreach to equity priority communities about requesting traffic enforcement services, this recommendation will be considered implemented. Target Date: Jun-2026
Status of Open Audit Recommendations as of December 31, 2025 61 Report and Recommendations Dept (s) Current Status Comments #25-02 Access and Use of Traffic Safety Services
#06 To ensure access to educational resources around traffic safety services, the Department of Transportation should update the Traffic Calming Toolkit to:
a.Align information with current traffic safety programs, resources, and access points, including information from the Traffic Calming Policy for Residential Neighborhoods (Council Policy 5-6), and
b.Translate the toolkit to the languages identified in the City’s Language Equity Policy & Guidelines (6.1.10).

DOT Not Implemented The Department of Transportation (DOT) reports that the Traffic Calming Toolkit update is in progress. According to DOT, this includes internal coordination, content alignment with the updated Council Traffic Calming Policy for Residential Neighborhoods (Council Policy 5-6), current services, best practices, and policies, as well as integration of recent project photos and compliance with accessibility requirements. Target Date: Dec-2026
#25-02 Access and Use of Traffic Safety Services
#07 The Department of Transportation should translate the Walk N’ Roll newsletter into the remaining language(s) identified in the City’s Language Equity Policy & Guidelines (6.1.10).

DOT Partly Implemented The Department of Transportation (DOT) reports that it has transitioned to a quarterly newsletter schedule for FY 2025–26, and that the next newsletter is planned for April 2026. Staff have made arrangements for the newsletter to include a translation in Simplified and Traditional Chinese, in addition to the existing English, Spanish, and Vietnamese versions, to align with the City’s current Language Equity Policy & Guidelines. Target Date: Apr-2026
#25-02 Access and Use of Traffic Safety Services
#08 To improve language accessibility, the Department of Transportation and the Police Department should translate telephone tree instructions of phone numbers for accessing traffic safety services, such as the phone number for traffic engineering services and the Police Department's non-emergency phone number, into all languages identified in the City’s Language Equity Policy & Guidelines (6.1.10).

DOT / PD Not Implemented The Police Department (Police) reports that the current Police “telephone tree” system is antiquated. Per Police, translating the telephone tree instructions for accessing traffic safety services into the additional languages would require real-time recording of certified translators each speaking their respective languages. According to Police, a budget request for an AI answering system to answer non-emergency calls was submitted, and this system would potentially include up to 100 different languages, including those identified in the City's Language Equity Policy & Guidelines (6.1.10). Police reports that if the request to update the telephone tree technology is not approved, Police will need to determine how and when it will be able to address the challenges associated with the voice tree menu currently in use. The Department of Transportation reports that it needs to identify the appropriate staff to create an effective telephone tree for the traffic safety concerns, including language compliance. Target Date: Dec-2026
Status of Open Audit Recommendations as of December 31, 2025 62 Report and Recommendations Dept (s) Current Status Comments #25-03 Procurement
#01 To align the City’s risk strategy with the business need of having timely procurements, the City Administration should re- assess policies for key areas, including:
a.Raising the competitive procurement threshold.
b.Establishing formal criteria for waiving certain types of insurance based on an assessment of the risk of the contract. c.Developing a process to allow procurement of small-dollar software subscriptions without the need for City Attorney’s Office review.
d.Granting approval authority to department heads for more low- risk contracts.
e.Examining the current standard contract terms and conditions.

FIN Partly
Implemented
-
Priority
Part (a) of the recommendation was implemented, with the Finance Department, in coordination with the City Manager's Office, raising the City's competitive procurement threshold from $10,000 to $15,000 through amendments to the Municipal Code. Finance reports that the remaining parts (b) through (e) are in progress, with completion targeted for April 2026. This includes revising internal procedures for waiving certain insurance requirements based on contract scope; coordinating with the City Attorney's Office, City Manager's Office, and stakeholders to streamline small software purchases and redefine software as a good; aligning P- Card purchasing limits with the updated competitive procurement threshold; and reviewing and updating the City's standard contract terms and conditions as appropriate. Target Date: Apr-2026
#25-03 Procurement
#02 The City Administration and the Finance Department should clarify and document rules for pilot programs including the allowed duration, maximum value, procurement types, and transition to a competitive procurement.

FIN Implemented The Finance Department coordinated with the City Attorney’s Office and Information Technology Department on a formalized process for pilot projects. A draft procedures document was developed for Citywide use. The document was finalized, reviewed by appropriate department heads and the City Manager's office, and posted to the intranet.
#25-03 Procurement
#03 The City Administration, Finance Department, and City Attorney’s Office should update and document the process to handle exceptions to the City’s standard contract terms and conditions, including when contracts should be escalated, to whom, and what information is required.

FIN Implemented The Finance Department coordinated with the City Manager's Office and the City Attorney's Office to update and document the process for reviewing exceptions to the City’s standard contract terms and conditions. This includes paths, processes, criteria, and required information for escalation requests. The document was finalized, reviewed by appropriate department heads and the City Manager's office, and posted to the intranet.
#25-03 Procurement
#04 To promote greater transparency and accountability in the strategic procurement process, the Finance Department should implement a project status tracker or workflow system that enables:
a.Tracking the timeliness of overall and interim milestones such as solicitation development, bid posting, vendor evaluation, and contract negotiations; and
b.Supervisory review of project progress.

This could include expanded use of the current electronic procurement platform.

FIN Not Implemented The Finance Department reports working on developing a framework that will capture overall and interim milestones in the strategic procurement process, including requests for proposals and contract-related items. Once a framework has been finalized, Finance intends to use existing software tools for improved transparency and accountability. This may include the City’s electronic workflow system, the City’s electronic procurement system, the City’s purchase approval system, and other tools to ensure accurate and consistent attribution for strategic procurement items. Finance management will then use these tools in addition to existing methods to review project progress at regular intervals once put into place. Target Date: Apr-2026 Status of Open Audit Recommendations as of December 31, 2025 63 Report and Recommendations Dept (s) Current Status Comments #25-03 Procurement
#05 The Finance Department should develop performance measures for strategic procurement projects including cycle times for key process milestones.

FIN Not Implemented Once the framework to capture overall and interim milestones in the strategic procurement process is complete (see #2503-04 for additional detail), the Finance Department plans to develop performance measures based on the framework for strategic procurement projects. These performance measures will include cycle times for key milestones. The current timeline for the completion of new requests for proposals is listed as six to nine months. Finance will review this timeline and other strategic procurement items to set standards accounting for staffing resources, required procurement procedures, and best practices. Target Date: Jun-2026 #25-03 Procurement
#06 The Finance Department should develop a consolidated, user-friendly procurement handbook with up-to-date policies, procedures, instructions, and guidance regarding:
a.Roles and responsibilities of Purchasing and other department staff,
b.Procurement thresholds and types of solicitations, and c.Step-by-step instructions for conducting procurements including how to complete templates and forms.

FIN Not Implemented The Finance Department developed a new purchasing intranet site for City staff use in June 2025. The site includes information on the roles and responsibilities of City staff, procurement paths and thresholds, and step-by-step instructions for required procurement process items. Finance plans to utilize the new purchasing intranet site as a tool for developing a consolidated, user-friendly procurement handbook for Citywide use. Target Date: Jun-2026
#25-03 Procurement
#07 To better support City departments in their procurement efforts, the Finance Department should develop and disseminate guidance in the form of practical examples, standardized templates, and other tools or resources for creating clear and functional scopes of work.

FIN Not Implemented The Finance Department developed a new purchasing intranet site for City staff use in June 2025. The site contains scope of work development resources, including templates and recorded trainings. The Finance Department plans to develop additional resources for scope development, including examples and standardized templates for specific use cases (e.g., software, general services, commodities) to better support City departments. Finance has also piloted the use of Artificial Intelligence tools as a scope development resource and is exploring further opportunities for their use in the procurement process. Target Date: Apr-2026 Status of Open Audit Recommendations as of December 31, 2025 64 Report and Recommendations Dept (s) Current Status Comments #25-03 Procurement
#08 To ensure that City policies are up-to-date and applicable to current operations, the Finance Department should work with the City Attorney’s Office, the City Manager’s Office, and the Information Technology Department to review and update the City Policy Manual to reflect current procedures, particularly relating to:
a.Section 5.1.1 Procurement and Contract Process Integrity; b.Section 5.1.3 Source Selection Plan;
c.Section 5.1.4 Brand Name and Sole Source Procurements; d.Section 5.1.6 Procurements with Grant Funds;
e.Section 5.1.7 Procurement of Supplies, Materials, and Equipment;
f.Section 5.1.8 Procurement of Non-Professional Services; and g.Section 5.1.9 Procurement of Information Technology.

FIN Not Implemented The Finance Department reports reviewing Chapter 5.1 – Purchasing Procurement and identifying the following sections requiring updates: 5.1.1, 5.1.3, 5.1.4, and 5.1.7 -

5.1.13. Some sections have been identified for potential removal, such as 5.1.3 Source Selection Plan, as they have been superseded by current processes. Finance plans to work with relevant stakeholders to update and modify City Policy Manual sections as appropriate to reflect current City procedures. Target Date: Jun-2026 #25-04 Homelessness Coordination
#01 To ensure that unhoused residents citywide are
appropriately considered in outreach efforts, the Administration should, in the context of limited outreach resources:
a.Develop protocols to provide timely outreach in advance of encampment abatements and Oversized and Lived-in Vehicle Enforcement activations, and
b.Reevaluate how outreach is prioritized to incorporate areas affected by imminent encampment abatements and tow-away zones, and the frequency of community submitted concerns.

HSG /
PRNS /
DOT
Partly Implemented a. The Housing Department (Housing) reports that staff are developing and implementing protocols to support timely outreach in advance of encampment abatements and Oversized and Lived-In Vehicle Enforcement (OLIVE) activations, given limited outreach resources.
b. Housing has reorganized its outreach approach to expand geographic coverage, better align with operational priorities, and adapt to reduced systemwide capacity. The updated model strengthens coordination around pre-abatement activities, OLIVE sites, and interdepartmental response. The Department launched the Enhanced Engagement Program (EEP) to support Code of Conduct implementation and related priorities. Housing has shifted resources from third-party contractors to internal staffing to improve coordination and long-term sustainability, while continuing key partnerships with City departments and nonprofit providers such as PATH and HomeFirst. The Department also established a new quadrant-based system and throughput model to prioritize outreach and efficiently connect people from encampments to shelter and interim housing resources. Target Date: May-2026 Status of Open Audit Recommendations as of December 31, 2025 65 Report and Recommendations Dept (s) Current Status Comments #25-04 Homelessness Coordination
#02 To ensure City staff across departments can provide consistent information to unhoused residents, the Housing Department should develop and distribute guidelines around interactions with unhoused residents, including:
a.Providing handouts with information about available resources and contact information, and
b.When staff should refer outreach requests from unhoused residents to the Housing Department.

HSG Partly Implemented a. The Housing Department (Housing) developed and distributed standardized handouts that provide unhoused residents with information about available resources and relevant contact information. The materials support consistent communication across City departments to ensure that unhoused residents receive uniform information about services and assistance. The Department reports that after the distribution of the guidelines, it plans to offer open office sessions with other department staff to ask questions of Homelessness Response Division staff or specific interactions they are experiencing in the field or at their facilities. b. Housing, in coordination with the Information Technology Department, established an internal reporting portal to receive and deploy outreach in response to requests from Council Districts, City departments, and interjurisdictional partners. Housing reports that it is developing guidelines for interactions with unhoused residents.

Target Date: May-2026
#25-04 Homelessness Coordination
#03 To improve transparency of how SJ311 complaints from the public around lived-in vehicles are managed, the Administration should:
a.Set expectations for the public when immediate enforcement or response is not possible or if the case relates to a vehicle at a No Encampment Zone, and
b.Provide a timely reply to the public about actions taken.

ITD / DOT Implemented a. In coordination with the Housing Department and Department of Transportation (DOT), the Information Technology Department (ITD) updated the intake form to include a disclaimer to users stating that the City is unable to directly respond to lived- in vehicle reports, that the information will be used for situational awareness, and that the request will be automatically processed and closed. Users are also provided links to City programs and resources related to lived-in vehicles and homelessness. b. In coordination with the Housing Department and DOT, ITD issued a standardized closure communication to close all outstanding cases. The message clarified the City's updated approach, noting that lived-in vehicle reports submitted through SJ311 cannot be addressed directly, and that the information provided will be used for situational awareness. For new reports, the request is automatically processed and immediately closed upon submission, and an email confirmation is sent to the user reiterating the disclaimer messaging and directing them to relevant resources. #25-04 Homelessness Coordination
#04 To improve communication around retrieving personal belongings from towed vehicles through the Oversized and Lived- in Vehicle Enforcement (OLIVE) program, the Department of Transportation should include timeframes for how long belongings will be held by tow companies in its OLIVE program flyers.

DOT Implemented The Housing Department and the Department of Transportation coordinated to update Oversized and Lived-In Vehicle Enforcement (OLIVE) program flyers and include information on the timeframes for how long tow companies will hold personal belongings. The update improves communication to impacted residents and supports transparency and consistency across departments.

Status of Open Audit Recommendations as of December 31, 2025 66 Report and Recommendations Dept (s) Current Status Comments #25-04 Homelessness Coordination HSG Partly Implemented a. The Housing Department (Housing) reports that it has taken steps to strengthen and clarify roles related to grant performance monitoring. The Department reports that its Grants Management Team has updated the quarterly performance review document to place more emphasis on quantifiable performance data. The Grants team is continuing to standardize the process for reviewing service provider quarterly e reports to ensure consistency across grants. Grant performance for homelessness programs is monitored through a coordinated effort among the Grants Management Team, the Data Division, and the monitoring unit (currently led by the PUN Group, an outside contractor), which conducts monitoring activities and audits. The Department reports that it will continue to develop and document standard operating procedures (SOPs) for the teams to define roles, responsibilities, and supervisory oversight for grant performance monitoring. The Department also reports that managers from these teams meet regularly to coordinate oversight activities, discuss performance issues, and ensure alignment across work groups, and that the meetings will continue as part of ongoing oversight efforts.
b. The Housing Department reports that its Data Division reviews homelessness quarterly reports to reconcile service provider-reported data with Homeless Management Information System (HMIS) data as part of its existing oversight practices. The Department reports that the Grants Management Division and the Data Division will continue working together to improve coordination and information sharing during the quarterly report review process, which will strengthen data validation and performance monitoring.
c. The Housing Department reports that it has removed COVID-19 protocols for many contracts and that a few remain to be updated which is expected to be completed June 2026. Target Date: Dec-2026
#05 To better monitor grant performance, the Housing
Department should update its grant oversight procedures to:
a.Clarify staff and supervisory responsibilities across the different work groups involved in monitoring and tracking servic provider performance,
b.Include additional current oversight activities, such as reconciling service provider data with Homeless Management Information System data or other activities, and
c.Clarify relevance of COVID-19 protocols to current
environment.

Status of Open Audit Recommendations as of December 31, 2025 67 Report and Recommendations Dept (s) Current Status Comments #25-04 Homelessness Coordination
#06 To enhance grant oversight, the Housing Department should implement regular trainings, at least annually, for staff responsible for monitoring and reviewing grants. These trainings should cover aspects of the grant oversight procedures including:
a.Expectations for monitoring service delivery around contract terms and deliverables,
b.Identification of potential risks of noncompliance, and c.Documentation of grantee service delivery.

HSG Not Implemented The Housing Department (Housing) reports that planned trainings are expected to be offered regularly, at least annually, will cover the following:
a. Contract development and encumbrances, mock kickoff meetings, and review of quarterly reports and WebGrants status reports. Trainings are intended to reinforce expectations related to contract terms, performance deliverables, and service delivery requirements, as well as staff responsibilities for monitoring compliance throughout the contract period.
b. Identification of potential risks of noncompliance through instruction on invoice review, payment request submission, review of WebGrants payment history, financial workbooks, budget modifications, and federal funding requirements. These topics help staff identify financial, programmatic, and compliance risks and take appropriate corrective action when issues are identified.
c. Quarterly reports, WebGrants status reports, and financial workbooks for proper documentation of grantee service delivery and performance. These trainings are meant to reinforce expectations for maintaining complete and accurate records to support oversight, monitoring, and audit activities.

Housing reports that the Grants Team is currently understaffed, which has limited its ability to fully expand monitoring and training activities at this time. As staffing capacity allows, the Department will incrementally increase the frequency of grant oversight training, including coverage of service delivery monitoring, identification of noncompliance risks, and documentation requirements. Target Date: Jun-2026 #25-04 Homelessness Coordination
#07 To track progress toward case management goals and support successful transitions from interim housing, the Administration and Housing Department should require housing plans in future agreements and amend current agreements as needed.

HSG Partly Implemented The Housing Department reports that it has been working to formalize the housing plan requirement and introduce other improvements in its agreements with its service providers. However, progress toward this effort had been delayed because existing contracts had to be amended or extended. The Department began to implement a formal housing plan requirement with new agreements beginning January 2026.

When applicable, the Department intends to incorporate it into other Interim Housing programs, as those contracts are renewed and plans are submitted by service providers. Target Date: Dec-2026
#25-04 Homelessness Coordination
#08 To ensure consistent evaluation of outreach and interim housing performance and outcomes, the Housing Department should align performance targets across service provider agreements, reported measures on internal dashboards and the Adopted Operating Budget for outreach activities, client exits, occupancy rates, and other key metrics.

HSG Partly Implemented The Housing Department reports that it has aligned performance targets across service provider agreements, internal dashboard reporting, and the Adopted Operating Budget to ensure consistent evaluation of outreach and interim housing performance and outcomes. According to the Department, there are a few outstanding agreements that have not been updated. Key metrics, including occupancy rates, are expected to be tracked across these platforms using a live dashboard on the Department’s website. Target Date: Jun-2026 Status of Open Audit Recommendations as of December 31, 2025 68 Report and Recommendations Dept (s) Current Status Comments #25-04 Homelessness Coordination
#09 To improve coordination and accountability for interim housing maintenance, the Housing Department should work with service providers and the Public Works Department to clearly define maintenance responsibilities, align ongoing maintenance plans, and establish a streamlined process for submitting, communicating, and tracking work orders. This may require amending service agreements with site operators.

HSG / PW Not Implemented
-
Priority
The Housing Department reports that it has initiated a procurement process to identify and contract with a third-party property management firm to oversee maintenance and operations for the entire shelter system portfolio. Upon completion of the procurement, the Department intends to integrate the property management contractor into its operations, replacing the current services and staffing deployed by individual operators. Master contracting with third-party vendors for property management, meals, and security is a central part of the Department's strategy to standardize and optimize operations across the entire portfolio while reducing costs.

Target Date: Aug-2026
Potential Monetary Benefit: This recommendation could help reduce maintenance costs by clarifying the responsibilities of Public Works and service providers. At the time of the audit, we estimated Public Works could have saved at least $375,000 had responsibilities been better defined.
#25-05 Fire Inventory Controls Over Controlled Substances #01 To ensure the Controlled Substances Control Policy reflects current practices, the Fire Department should update the policy to provide further clarity on:
a.Timing of daily verifications performed by paramedics of controlled substances boxes on fire apparatus;
b.Storage and access for controlled substances on reserve apparatus;
c.Frequency, scope, and required documentation of Emergency Management Services Division inventory reviews of controlled substances boxes across fire stations; and
d.Allowable uses and requirements for remote handoffs of controlled substances (“pick up from crew”).

FIRE Implemented The Fire Department reports that staff are conducting daily controlled substance inventory verifications and monthly reviews of 25 percent of the inventory.

Additionally, the Department has updated procedures regarding controlled substances on remote apparatus and remote handoffs. The Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy" which went into effect on March 6, 2026. These revisions formalize the current requirements related to all parts the recommendation. #25-05 Fire Inventory Controls Over Controlled Substances #02 To enhance the security of controlled substances on apparatus, once biometric safes are acquired, the Fire Department should update the Controlled Substances Control Policy to address access and usage, including:
a.Who should have access to the apparatus safes,
b.The storage and access to backup keys, and
c. Whether daily verifications by paramedics are still needed.

FIRE Not Implemented The Fire Department is in the process of procuring biometric narcotic safes. A Request for Quotes (RFQ) for biometric safes closed on January 16, 2026. Vendor evaluation and selection will proceed with the awarded vendor in coordination with the Finance Department's procurement timeline. Once the Fire Department acquires and installs the biometric safes, staff will evaluate policy updates related to user access levels, backup key storage and access, or potential modification of daily verification requirements. Target Date: Dec-2026
Status of Open Audit Recommendations as of December 31, 2025 69 Report and Recommendations Dept (s) Current Status Comments #25-05 Fire Inventory Controls Over Controlled Substances #03 To separate critical duties for management of the central supply of controlled substances, the Fire Department should:
a.Assign system administration duties, primarily the ability to create new users in the system and change user permissions, to personnel that do not have controlled substance handling or record management duties.
b.Assign certain duties for record management, such as
reconciling ordered medication, logging new medication into the inventory, and logging the removal of medication upon destruction to personnel that do not have controlled substance handling or system administrator privileges.
c.Disallow multiple log-in credentials to the inventory management system for any staff that have access to controlled substances.

FIRE Partly
Implemented
-
Priority
The Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy," which went into effect on March 6, 2026. The revisions formalize roles and responsibilities for the system administrator, distribution manager, and inventory control manager. These roles separate critical duties for central supply management. The Department reports that responsibility for records management is now assigned to the EMS Division Manager as the inventory control manager, who does not have access to the central supply of controlled substances and is not a system administrator. The EMS Division Manager will also review user account creation and access. The new system administrator will be an analyst who does not have any access to controlled substances. Staff are working on this transition, which includes changes in the inventory management software system. Target Date: Apr-2026
#25-05 Fire Inventory Controls Over Controlled Substances #04 The Fire Department should update policies to formalize central supply oversight, including:
a.The process for reviewing vials for evidence of tampering; b.Approval for the creation of new inventory management system users;
c.A requirement for reconciliation of orders, invoices, and receipts of controlled substances;
d.A requirement to have a witness for medication destruction; and
e.A requirement to notify the County of Santa Clara Emergency Medical Services Agency of variances per County policy.

FIRE Implemented
-
Priority
The Fire Department reports that operationally, staff updated practices to address all parts of the recommendation. The Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy" which went into effect on March 6, 2026. These revisions formalized those practices.
#25-05 Fire Inventory Controls Over Controlled Substances #05 To improve detection of tampering or theft of controlled substances kept in the central supply, the Fire Department should update the Controlled Substances Control Policy to require periodic inventory counts of the main safe and reconciliation to inventory records.

FIRE Implemented The Fire Department has conducted an inventory count of the main safe and reconciled against inventory records. The Department reports that these counts will continue periodically as part of routine-controlled substance oversight. The Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy" which went into effect on March 6, 2026. These revisions formalize this requirement.

Status of Open Audit Recommendations as of December 31, 2025 70 Report and Recommendations Dept (s) Current Status Comments #25-05 Fire Inventory Controls Over Controlled Substances #06 To improve the security of main safe access, the Fire Department should:
a.Update the Controlled Substances Control Policy to require a witness to be present any time the safe is opened, and
b.Position a camera on the main safe to record activity or acquire biometric safes that log access.

FIRE Partly Implemented The Fire Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy" which went into effect on March 6, 2026. These revisions formalize the requirement that two witnesses be present whenever the safe is opened. The Fire Department is in the process of procuring biometric narcotic safes. The Request for Quotes (RFQ) for biometric safes closed on January 16, 2026. Vendor evaluation and selection will proceed with the awarded vendor in coordination with the Finance Department's procurement timeline. Target Date: Jun-2026
#25-05 Fire Inventory Controls Over Controlled Substances #07 To improve oversight over the main safe inventory, the Fire Department should develop inventory management system reports that detail main safe inventory changes and update the Controlled Substances Control Policy to require periodic review of those reports by management overseeing the Emergency Medical
Services Division.

FIRE Implemented Fire Department staff worked with the inventory management software support team to review system permission configurations and develop inventory management system reports that detail main safe inventory changes. EMS staff can now prepare reports that show all changes to the main safe inventory. The Department has finalized its revisions to the SJFD Policy and Procedure Manual Section 5.700.21 – "Controlled Substance Control Policy" which went into effect on March 6, 2026. These revisions include requirements for management to review inventory reports.

Status of Open Audit Recommendations as of December 31, 2025 71

San Jose City CouncilMarch 24, 2026

San Jose City Council
March 24, 2026