Memorandum — San Jose City Council, September 22, 2026

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

STATUS OF OPEN AUDIT

RECOMMENDATIONS AS OF
JUNE 30, 2026
June 2026

This page was intentionally left blank
Status of Open Audit Recommendations as of June 30, 2026 2 Office of the City Auditor
Joe Rois, City Auditor
September 11, 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 JUNE 30, 2026

RECOMMENDATION
We recommend the City Council accept the Status of Open Audit Recommendations as of June 30, 2026.

SUMMARY OF RESULTS
The City Auditor’s Office reviews open audit recommendations every six months. Since the last update, City departments implemented or closed 29 recommendations from past
performance audits covering various services and programs.

The Administration has implemented 90 percent of all
recommendations made by the Auditor’s Office over the
past decade (target: 80 percent), and 80 percent of
recommendations made over the past five years.

Currently, 73 recommendations remain open with 57 partly implemented.

Attached are:
 Appendix A: A summary table of all recommendations
by report over the past ten years.
 Appendix B: The status of the 102 audit
recommendations from our review as of June 30, 2026.
1 1 This report excludes the nine recommendations from the 2026 Audit of Affordable Multifamily Housing Loan Portfolio, presented to Council in August 2026. They will be included in future status reports. 102 recommendations in this report
14 were issued in new reports
29 implemented / closed
73 partly or not implemented
90% of audit recommendations made
over the last 10 years have been
implemented or closed
Status of Open Audit Recommendations as of June 30, 2026 3 Departments Implemented or Closed 29 Recommendations in the Last Six Months Over the past six months, City departments have implemented or closed 29 recommendations.2
2 Examples include:
 Parks, Recreation and Neighborhood Services (PRNS): PRNS implemented an assessment tool to screen participants for all Youth Intervention Services (YIS) programs. The tool is intended to ensure programs serve their intended populations based on their level of youth violence involvement risk. The BEST program also uses a screening assessment tool, and its strategic workplan aligns services with a tiered risk model. (Audit of The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance), 2019)
 Finance: The Finance Department (Finance) implemented several procurement improvements, including using a project tracker to monitor procurement progress and developing performance measures to assess procurement activities. Finance also published an updated procurement handbook and developed purchasing templates to support City departments, and updated sections of the City Policy Manual to align with current operations and procedures. (Audit of Procurement, 2025)
 Environmental Services Department (ESD): ESD formalized standard operating procedures (SOPs) around conducting sanitary sewer flow and loading studies, as well as updated its rate development SOP to include guidelines on sewer reserve levels. ESD also updated its sewer rate web page to make information on rate calculations and frequently asked questions more accessible. (Audit of Sewer Rates, 2026)
 Housing: The Housing Department (Housing) amended several interim housing agreements, requiring grantees to monitor participants’ progress towards housing plans and submit participants’ housing plans to the City annually. (Audit of Homelessness Coordination, 2025)
Over the last decade, the City Auditor’s Office has made 623 recommendations to improve City services, 90 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:

The City Auditor’s Office recommends closing a recommendation when a department has not completed all elements of a recommendation, but the Office agrees that the department has made sufficient progress to address the underlying issues identified in the audit and remaining work may only have marginal additional benefits. We may also recommend closing a recommendation if it does not reflect the current operating environment because of changes to the service delivery model.

Status of Open Audit Recommendations as of June 30, 2026 4 Potential Budgetary Savings / Revenue Generation
Develop a process to monitor compliance with the Police Department’s current overtime approval expectations (Police Staffing, Expenditures, and Workload Follow-Up Report, #2602-04) – New priority added – Target date: February 2027.

In accordance with the Overtime Controls Memorandum No. 2026- 008, the Police Department requires unplanned follow-up and report writing overtime to be reviewed and approved by staff's immediate supervisors during the timesheet approval process. The Department reports working on a process to ensure compliance with this requirement.

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) – 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 Environmental Impact Report (EIR) for the development of an advanced water purification facility.

Partly
Implemented
Clarify maintenance responsibilities and the work order process at interim housing sites (Audit of Homelessness Coordination, #2504-09) – Target date: December 2026 (delayed from August 2026).

Status: Housing selected a contractor to provide property management services across the City’s shelter portfolio. According to Housing, the contractor will provide a centralized maintenance management system, which will allow the City and site operators to submit maintenance requests and track work orders. Housing expects the initial rollout to begin in October 2026.

Partly
Implemented

Status of Open Audit Recommendations as of June 30, 2026 5 Operational Efficiency
Identify all vacant lands within the City’s real estate portfolio and report on that land and its intended use annually (Audit of Real Estate Services, #2103-03).

Status: Real Estate uploaded all City-owned land to its Land Information System and has the capability to store information needed for annual reporting on the City's vacant land inventory. In April 2026, Real Estate issued an Information Memo on vacant lands as the first iteration of periodic reporting.

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).

Status: City Council approved the Environmental Review Handbook and Environmental Standard Permits Conditions in May 2026, both of which can be found on Planning, Building and Code Enforcement’s (PBCE) website. Consultants were required to follow the standards starting August 2026.

Implemented
Develop a consolidated, user-friendly procurement handbook (Audit of Procurement, #2503-06) – New priority added.

Status: Finance developed a procurement handbook for Citywide use, published on the Finance’s intranet site. The handbook provides updated guidance covering roles and responsibilities of Purchasing and other Finance staff, procurement thresholds and solicitation types, and instructions, templates, and forms on conducting procurements.

Implemented
Improved Service Delivery
Increase language translations of vital documents and include translation options in the SJPermits.org website (Audit of Residential Building Permits, #2307-15) – Target date: December 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 (ITD) to add translation options for SJPermits.org.

Not
Implemented
Status of Open Audit Recommendations as of June 30, 2026 6 Develop protocols for timely outreach in advance of encampment abatements and tow enforcement, and incorporate areas affected by abatements, tows, and community submitted concerns into outreach prioritization (Audit of Homelessness Coordination, #2504-01) – New priority added.

Status: Housing’s Enhanced Engagement Program deploys outreach staff based on BeautifySJ’s encampment abatement schedule and the Department of Transportation’s vehicle enforcement schedule.

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, ITD 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. ITD added Cantonese and Mandarin options to the SJ311 Customer Call Center phone tree.

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

December 2026 (delayed from April 2026).

Status: Finance has revised several policies around procurement, including raising the competitive procurement threshold, waiving certain insurance requirements, and updating the City’s standard contract terms and conditions as appropriate. Finance is working with the City Attorney’s Office and City Manager’s Office on a procedure to streamline small software purchases.

Partly
Implemented
Separate critical duties for management of the central supply of controlled substances (Audit of Fire Inventory Controls Over Controlled Substances, #2505-03).

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 controls. Staff have been assigned to serve in these separate roles.

Implemented
Status of Open Audit Recommendations as of June 30, 2026 7 Ensure City fleet assets are properly maintained by improving preventative maintenance (PM) compliance (Audit of Fleet Maintenance and Operations, #2002-04) – New priority added – Target date: October 2026 (delayed from December 2021).

Status: Public Works developed dashboards for customer departments to monitor PM compliance and established a PM target of 80 percent completion within 10 days of receiving a vehicle. Public Works also reports it has begun disabling fuel access for vehicles that are not brought in for required maintenance, and is finalizing email notifications to inform the appropriate department directors of overdue vehicles.

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

Total of 73 Recommendations Are Still Pending
Of the 73 recommendations that are still pending, 57 (78 percent) are partly implemented and 16 (22 percent) are not implemented. PBCE has the largest number of open audit recommendations, followed by the Housing Department.

When implemented, many recommendations will improve operational efficiency of City departments. Others will improve transparency and accountability, improve service delivery, ensure equity in service delivery, or help to secure City assets. 5 3 2 3
1 1 1
12 12
8 5 3
4 4 2
2 1 2 1 1 0
2 4
6 8
10 12
14 16
18 Open Recommendations
Partly Implemented
Not Implemented
Status of Open Audit Recommendations as of June 30, 2026 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 June 30, 2026 – 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, Hiwad Haider, Dilnoza Khudoyberganova, Gitanjali Mandrekar, Michael O’Connell Jr., Alison Pauly, Adrian Perez, and Maria Valle Appendix A: Summary Listing of Recommendations by Report (June 30, 2016 – June 30, 2026) Appendix B: Detailed Listing of the Status of Open Recommendations as of June 30, 2026 2 1
4 3
6 4
11 10
16 16
Securing City Assets
Improved Service Delivery
Equity
Operational Efficiency
Transparency and Accountability
Open Audit Recommendations by Intended
Outcome
Not Implemented Partly Implemented
Status of Open Audit Recommendations as of June 30, 2026 9

This page was intentionally left blank
Status of Open Audit Recommendations as of June 30, 2026 10 Appendix A:

SUMMARY LISTING RECOMMENDATIONS BY REPORT
(July 1, 2016 – June 30, 2026)
Status of Open Audit Recommendations as of June 30, 2026 11 Audit Title Recommendation Purpose
#16-08 Police Overtime: The San José
Police Department Relies on Overtime
to Patrol the City Due to
Unprecedented Vacancies
We made recommendations to:

Increase efficiency of staffing, improve
tracking of hours worked by Police
Department employees, and improve
the tools for supervisors to monitor
overtime worked.
12 Recommendations
Implemented / Closed
#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
We made recommendations to: Better
deploy resources, improve processes,
and recover program costs.
19 Recommendations
Implemented / Closed
#16-11 Mobile Devices: Improvements
Needed to Ensure Efficient, Secure, and
Strategic Deployment
We made recommendations to: Ensure
efficient, secure, and strategic
deployment of mobile devices across
the organization.
16 Recommendations
Implemented / Closed
#16-12 Annual Report on City Services
FY 2015-16 No recommendations.
#17-01 Audit of Our City Forest
We made recommendations to: Ensure
consistency and accountability with the
City's grant agreements with Our City
Forest and improve the off-site tree
replacement program.
4 Recommendations
Implemented / Closed
#17-02 Office of Equality Assurance:

Increased Workload Warrants
Reevaluation of Resource Needs
We made recommendations to:

Reallocate staff and update procedures
considering the growing number of OEA
responsibilities.
8 Recommendations
Implemented / Closed
Status of Recommendations
Status of Open Audit Recommendations as of June 30, 2026 12 Audit Title Recommendation Purpose Status of Recommendations #17-03 Audit of Residential High-Rises:

Considerations for A City with A
Growing Number of Tall Buildings
We made recommendations to:

Consistently assure health and safety
standards are met, and ensure
transparency of development reviews
for high-rise development projects.
3 Recommendations
Implemented / Closed
#17-04 Open Government: The City
Has Made Progress in Meeting the Goals
of the Sunshine Reform Task Force
We made recommendations to:

Promote government transparency and
ensure compliance with the City's
Consolidated Open Government and
Ethics Provisions.
11 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#17-05 Audit of Environmental Services
Department Consulting Services:

Agreements Require Additional
Oversight
We made recommendations to: Protect
City resources by strengthening
controls and improve contract
monitoring.
10 Recommendations
Implemented / Closed
#17-06 Audit of Retirement Services:

Greater Transparency Needed in the
Budgeting Process, Interactions Among
Stakeholders, Investment Policies, and
Plan Administration
We made recommendations to:

Increase transparency in the budgeting
process, interactions among
stakeholders, investment policies, and
plan administration.
25 Recommendations
Implemented / Closed
#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
We made recommendations to: Clarify
portions of the existing City travel
policy to improve compliance and
strengthen controls over the gas card
program.
4 Recommendations
Implemented / Closed
Status of Open Audit Recommendations as of June 30, 2026 13 Audit Title Recommendation Purpose Status of Recommendations #17-09 San José’s Tier 3 Defined
Contribution Plan: The City Should
Clarify How Contributions Are
Calculated
We made recommendations to: Clarify
how contributions to employee
accounts are calculated.
1 Recommendation
Implemented / Closed
#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
We made recommendations to:

Improve controls and transparency to
ensure retirement contributions
continue to be accurate.
4 Recommendations
Implemented / Closed
#18-02 Audit of the San José Police
Activities League
We made recommendations to:

Improve the City’s oversight and
management of the San José Police
Activities League.
23 Recommendations
Implemented / Closed
#18-03 Department of Public Works:

Enhancing Management of Capital
Projects
We made recommendations to:

Enhance management of capital projects.
10 Recommendations
Implemented / Closed
#18-04 Audit of Vehicle Abatement:

The City Could Improve Customer
Service for Vehicle Abatement Requests
We made recommendations to:

Improve customer service for vehicle
abatement requests.
11 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#18-05 Cities Association of Santa
Clara County Expenditure Review,
Fiscal Years Ending June 30, 2017 &
2018
No recommendations.

Status of Open Audit Recommendations as of June 30, 2026 14 Audit Title Recommendation Purpose Status of 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
We made recommendations to:

Improve program monitoring and use of
facility- and provider-level data to better
assess services delivered to residents.
19 Recommendations
Implemented / Closed
#18-07 Audit of the City’s Homeless
Assistance Programs: More
Coordination and Better Monitoring
Can Help Improve the Effectiveness of
Programs
We made recommendations to:

Improve the City’s oversight and
management of its homeless assistance
programs.
14 Recommendations
Implemented / Closed
#18-08 Team San Jose Performance FY
2017-18
We made recommendations to:

Establish and formalize the target for
theater occupancy.
1 Recommendation
Implemented / Closed
#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
We made recommendations to: Address
towing contract violations, standardize
towing and storage fees, update
contract terms, and improve oversight.
17 Recommendations
Implemented / Closed
#19-01 Audit of 9-1-1 and 3-1-1:

Changes to Call Handling and Increased
Hiring Efforts Could Improve Call
Answering Times
We made recommendations to:

Improve emergency call answering
times.
18 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#19-02 Employee Benefit Fund
Administration: Opportunities Exist to
Improve Controls
We made recommendations to:

Improve administration of employee
benefit funds.
8 Recommendations
Implemented / Closed
Status of Open Audit Recommendations as of June 30, 2026 15 Audit Title Recommendation Purpose Status of Recommendations #19-03 Development Noticing:

Ensuring Outreach Policies Meet
Community Expectations
We made recommendations to: Update
outreach policies to reflect current
conditions, and improve mechanisms for
reaching neighborhood associations and
limited-English speaking populations.
4 Recommendations
Implemented / Closed
3 Recommendations Partly
Implemented
1 Recommendation Not
Implemented
#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
We made recommendations to: Support
and enhance the Youth Empowerment
Alliance's continuum of care strategy.
16 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#19-05 Employee Reimbursements:

Strengthening and Streamlining the
Reimbursement Process
We made recommendations to:

Streamline and better monitor the
employee reimbursement process.
4 Recommendations
Implemented / Closed
#19-06 Form 700s: Despite High
Overall Filing Rates, the City Can
Improve Timeliness and Completeness
of Filings
We made recommendations to:

Streamline processes and standardize
procedures to improve the timeliness
and completeness of Form 700 filings.
9 Recommendations
Implemented / Closed
#19-07 Procurement Cards:

Clarification on Policies and Additional
Oversight Can Improve the P-Card
Program
We made recommendations to:

Improve program controls and
oversight, as well as monitoring of
agreements.
9 Recommendations
Implemented / Closed
#19-08 Street and Utility In-Lieu Fees:

Transparency and Coordination Can
Improve the Administration of Fee
Programs
We made recommendations to:

Improve the calculation, collection, and
use of in-lieu fees for street and utility-
related public improvements.
7 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#19-09 Team San Jose Performance FY
2018-19
We made recommendations to: No
recommendations.

Status of Open Audit Recommendations as of June 30, 2026 16 Audit Title Recommendation Purpose Status of Recommendations #19-10 Technology Deployments:

Processes Can Be Improved to Ensure
Long-term Success of the City’s
Technology Vision
We made recommendations to:

Strengthen the City’s technology
deployments processes across the
organization.
10 Recommendations
Implemented / Closed
#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
We made recommendations to:

Enhance fleet operations by utilizing data
to identify fleet replacements and
monitor operations.
10 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
1 Recommendation Not
Implemented
#20-03 Audit of Fire Development
Services: Staff Resources and Process
Efficiencies Will Help to Reduce Backlog
We made recommendations to:

Improve customer service and the
efficiency of the Fire development
services program.
14 Recommendations
Implemented / Closed
#20-04 Park Maintenance: Improved
Data Collection and Analysis Would
Enhance Park Maintenance Operations
We made recommendations to:

Improve park maintenance operations
by reassessing data collection protocols
and using targeted data to inform
resource decisions.
13 Recommendations
Implemented / Closed
#20-05 Development Partners’ Work-
in-Progress Reserves: Better Monitoring
Can Ensure Reserves Align with
Resource Needs
We made recommendations to:

Improve workload and resource
planning through better tracking of
development work in progress.
3 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
#20-06 Memo - Preliminary Review of
Documentation for Costs Included in
the July 2020 Coronavirus Relief Fund
Interim Report
We made recommendations to: No
recommendations.

Status of Open Audit Recommendations as of June 30, 2026 17 Audit Title Recommendation Purpose Status of 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
We made recommendations to: No
recommendations.
#20-10 Annual Report on City Services
2019-20
We made recommendations to: No
recommendations.
#21-01 Police Staffing, Expenditures,
and Workload: Staffing Reductions Have
Impacted Response Times and Led to
High Overtime Costs
We made recommendations to: 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 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#21-02 Advocate Referrals: Further
Improvements to Processes and Data
Sharing Can Help Connect More
Survivors to Services
We made recommendations to:

Connect more survivors to services by
making further improvements to
advocate referral processes and data
sharing.
6 Recommendations
Implemented / Closed
#21-03 Real Estate Services: Better
Tools and Coordination Can Improve
Asset Management and Service Delivery
We made recommendations to:

Improve oversight and coordination for
managing the City's real estate assets.
6 Recommendations
Implemented / Closed
#21-04 Code Enforcement
Management Controls: Improvements
to Oversight and Coordination Needed
We made recommendations to:

Improve oversight and management
controls over code enforcement
activities.
19 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
Status of Open Audit Recommendations as of June 30, 2026 18 Audit Title Recommendation Purpose Status of Recommendations #21-05 Municipal Water Billing and
Customer Service: The City Can Take
Steps to Enhance Customer Service
During an Unprecedented Time
We made recommendations to:

Enhance Municipal Water customer
service and support.
11 Recommendations
Implemented / Closed
2 Recommendations Not
Implemented
#21-06 Team San Jose Performance FY
2020-21
We made recommendations to: Address
an error in the incentive fee paid to
Team San Jose.
1 Recommendation
Implemented / Closed
#21-07 Annual Report on City Services
2020-21
We made recommendations to: No
recommendations.
#22-01 Information Technology:

Improved Governance Would
Strengthen the City’s Cybersecurity
We made recommendations to:

Improve controls around the City’s
information and technology assets.
5 Recommendations
Implemented / Closed
#22-02 Environmental Review for New
Developments: Better Project
Management and Reviewing Resources
Can Improve the CEQA Process
We made recommendations to:

Improve the CEQA process through
better project management and
reviewing resources.
8 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
2 Recommendations Not
Implemented
#22-03 Citywide Grant Management:

Improved Coordination Can Increase
Federal Grant Opportunities and
Standardize Grant Administration
We made recommendations to:

Improve Citywide grant management by
developing guidelines and training
around the different phases of grant
management.
3 Recommendations
Implemented / Closed
#22-04 Take-Home Vehicles: Improved
Controls Can Better Ensure
Compliance With City Policies
We made recommendations to:

Improve the efficiency of the take-home
vehicle process and compliance with
City policy.
5 Recommendations
Implemented / Closed
Status of Open Audit Recommendations as of June 30, 2026 19 Audit Title Recommendation Purpose Status of Recommendations #22-05 Bill of Rights for Children and
Youth: Incorporating the Bill of Rights
into Planning Can Enhance Services
We made recommendations to:

Enhance the City’s service delivery and
promote continuous improvement of
programs for children and youth in San
José.
2 Recommendations
Implemented / Closed
#22-06 COVID-19 Food Distribution
Expenditures: The City Should Address
Gaps in Emergency Documentation and
Procedures
We made recommendations to: 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 Recommendations
Implemented / Closed
#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
We made recommendations to:

Improve management of the community
forest program.
8 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
#22-09 Firearm Regulations: The City
Should Update Procedures Around Gun
Violence Restraining Orders and
Firearm Business Inspections
We made recommendations to:

Enhance firearm regulatory processes
and policies.
7 Recommendations
Implemented / Closed
#22-10 Annual Report on City Services
2022-23
We made recommendations to: 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
We made recommendations to:

Enhance performance monitoring and
promote workplace safety for Corps
members.
5 Recommendations
Implemented / Closed
Status of Open Audit Recommendations as of June 30, 2026 20 Audit Title Recommendation Purpose Status of Recommendations #23-02 Employee Travel Expenses:

Additional Training Can Enhance
Compliance With the City’s Travel
Policy
We made recommendations to: Ensure
compliance with the City’s Employee
Travel Policy.
1 Recommendation
Implemented / Closed
#23-03 Integrated Waste Management
Enforcement Program: Clarifying Goals
and Performance Expectations Would
Improve Enforcement Coverage
We made recommendations to:

Improve the team’s performance by
having clear goals and success metrics
including performance expectations for
inspectors.
6 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#23-04 Housing Performance
Measures: The City Should Focus and
Align Measures to Support Decision-
Making
We made recommendations to:

Streamline and improve current
performance measures.
3 Recommendations
Implemented / Closed
#23-05 Retirement Services: Interim
Report on the Alignment of Controls
Between the City and the Office of
Retirement Services
We made recommendations to:

Strengthen the internal controls around
administrative functions in the Office of
Retirement Services.
1 Recommendation
Implemented / Closed
#23-06 Team San Jose Performance FY
2022-23
We made recommendations to: No
recommendations.
#23-07 Residential Building Permits:

Additional Resources and Further
Process Enhancements Can Reduce
Wait Times and Improve Service
Delivery
We made recommendations to: Align
PBCE resources to its building permit
workload, create standard processes for
permit intake and plan review, and
improve communication with
customers.
13 Recommendations
Implemented / Closed
2 Recommendations Not
Implemented
#23-08 Annual Report on City Services
2022-23
We made recommendations to: No
recommendations.
#24-01 Non-Management Performance
Appraisals: The Administration Should
Improve and Clarify Appraisal Processes
We made recommendations to:

Improve the performance appraisal
process through better tracking and
clarification of processes.
7 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
Status of Open Audit Recommendations as of June 30, 2026 21 Audit Title Recommendation Purpose Status of Recommendations #24-02 Language Accessibility: The City
Can Strengthen Efforts to Address
Language Equity Across Its Services
We made recommendations to:

Enhance language accessibility across
City departments and services.
11 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#24-03 Retirement Services: The Office
Has Not Consistently Followed City
Procurement Policies and Standard
Practices
We made recommendations to: Ensure
appropriate controls around
procurement and contracting for the
Office of Retirement Services.
3 Recommendations
Implemented / Closed
#24-04 Encumbrances: Departments
Should Regularly Review All
Encumbrances to Ensure Timely
Liquidation
We made recommendations to:

Improve the timeliness of encumbrance
liquidation.
5 Recommendations
Implemented / Closed
#24-05 Tenant Protection Ordinance:

Housing Should Refine its Fee
Calculation Process and Standardize
Procedures to Improve Program
Administration
We made recommendations to: Refine
the fee calculation process and improve
program administration.
2 Recommendations
Implemented / Closed
10 Recommendations Partly
Implemented
#24-06 Animal Care and Services:

Addressing Capacity Constraints and
Updating Shelter Protocols Will Help
Improve Animal Outcomes
We made recommendations to:

Improve animal outcomes through
consistent protocols and better data
management practices.
39 Recommendations
Implemented / Closed
#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
We made recommendations to:

Improve access and use of BeautifySJ
Neighborhood Blight Reduction and
Beautification programs by traditionally
marginalized communities.
3 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
1 Recommendation Not
Implemented
#24-09 Annual Report on City Services
2023-24 No recommendations.

Status of Open Audit Recommendations as of June 30, 2026 22 Audit Title Recommendation Purpose Status of Recommendations #25-01 City Costs for Outdoor Special
Events: Opportunities Exist to Enhance
Customer Service
We made recommendations to: Assess
and provide transparency regarding the
city-required security and other costs
for external special event organizers..
4 Recommendations Partly
Implemented
#25-02 Access and Use of Traffic Safety
Services: Targeted Outreach and Other
Improvements Can Enhance Equity in
Services
We made recommendations to:

Enhance equity in traffic safety services
and programs through targeted
outreach and other improvements.
2 Recommendations
Implemented / Closed
4 Recommendations Partly
Implemented
2 Recommendations Not
Implemented
#25-03 Procurement: The City Should
Review its Risk Strategy, Performance
Measurement, and Guidance to Improve
the Procurement Process
We made recommendations to:

Improve the efficiency of the
procurement process through re-
assessing risk and updating guidance
7 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
#25-04 Homelessness Coordination:

Expanding Outreach, Strengthening
Grant Oversight, and Aligning
Performance Goals Can Improve the
City’s Response
We made recommendations to:

Improve coordination between City
departments and service providers to
strengthen the City’s response to
homelessness.
7 Recommendations
Implemented / Closed
2 Recommendations Partly
Implemented
#25-05 Fire Inventory Controls Over
Controlled Substances: Clarifying
Policies and Separating Duties Would
Further Improve Security
We made recommendations to:

Enhance the security of controlled
substances by clarifying policies and
separating duties
5 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
1 Recommendation 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 June 30, 2026 23 Audit Title Recommendation Purpose Status of Recommendations #26-01 Sewer Rates: Reviewing Rate
Model Assumptions and Developing
Reserve Policies
Would Improve the Rate-Setting
Process
We made recommendations to:

Improve the City’s sewer rate-setting
process.
4 Recommendations
Implemented / Closed
1 Recommendation Partly
Implemented
1 Recommendation Not
Implemented
#26-02 Police Staffing, Expenditures,
and Workload Follow-Up Report
We made recommendations to:

Improve transparency around
operational changes, hiring and
retention, and overtime management.
2 Recommendations
Implemented / Closed
3 Recommendations Partly
Implemented
3 Recommendations Not
Implemented
Status of Open Audit Recommendations as of June 30, 2026 24 Appendix B:

DETAILED LISTING OF THE STATUS OF PENDING
RECOMMENDATIONS AS OF JUNE 30, 2026
Status of Open Audit Recommendations as of June 30, 2026 25 Report and Recommendations Current Status Comments
Report #12-04 Police Department Secondary Employment

Recommendation #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.

Current Status:

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) Report #12-04 Police Department Secondary Employment

Recommendation #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.

Current Status:

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 as of FY 2024-25, 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.

Report #12-04 Police Department Secondary Employment

Recommendation #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.

Current Status:

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)
Status of Open Audit Recommendations as of June 30, 2026 26 Report and Recommendations Current Status Comments
Report #13-11 Code Enforcement

Recommendation #08: The City Administration should propose to expand the Residential Occupancy Permit program to include condominiums functioning as rental apartment complexes.

Current Status:

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.

The Department reports that other priorities have delayed work on this recommendation. Target Date: Jun-2028 (Delayed From: Jul-2018)
Report #13-11 Code Enforcement

Recommendation #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.

Current Status:

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. The Department reports that it is exploring the use of door hangers to inform tenants of a visit along with information to contact the inspector for further information. Target Date: Jul-2027 (Delayed From:

Jul-2018)
Report #14-08 Development Services

Recommendation #18: Eliminate the Construction & Demolition Diversion Deposit.

Current Status:

Partly Implemented
The Environmental Services Department (ESD) reports that, in response to feedback 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 increase permittee awareness of the refundable deposit. Changes may include enhanced communications and potentially eliminating deposits for small-dollar projects, which are often abandoned. As of June 2026, ESD reports it has continued outreach to permit holders eligible for CDDD refunds while program enhancements, including necessary Municipal Code amendments, are finalized, prepared for Council approval as needed, and implemented. Target Date: Jan-2027 (Delayed From: Mar-2017)
Report #14-08 Development Services

Recommendation #19: To increase accessibility of online fee estimation, PBCE should update and simplify the online fee calculator.

Current Status:

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 estimator tool for accessory dwelling units and new residential construction. The third phase of the fee estimator tool, covering multifamily new construction, was implemented in August 2025. PBCE reports that implementation of the final phase of the fee estimator tool, covering single-family additions and alterations, has been delayed due to ITD staff losses. According to the Department, the final phase is expected to launch in June 2027. Target Date: Jun-2027 (Delayed From: Jun-2016) Status of Open Audit Recommendations as of June 30, 2026 27 Report and Recommendations Current Status Comments
Report #16-05 South Bay Water Recycling

Recommendation #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.

Current Status:

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 Report (EIR) 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.

Report #17-04 Open Government

Recommendation #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.

Current Status:

Partly Implemented
To better manage electronic records within the City, 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. Staff finalized training material based on the policy updates, with Citywide training beginning in September 2026 and the first automatic deletion is scheduled to occur in January 2027. 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: Jan-2027 (Delayed From: Dec-2024) Report #18-04 Audit of Vehicle Abatement

Recommendation #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.

Current Status:

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. The Department still needs to complete the analysis necessary to evaluate a subsidized vehicle release fee for low-income vehicle owners and develop a proposal for City Council consideration. The Department reports that due to staffing limitations, competing Tow Program workloads, and the operational demands associated with transitioning to a new tow contractor, staff have not yet been able to complete this work. The Department plans to complete the analysis and, as appropriate, develop a recommendation for City Council consideration by June 2027. Target Date: Jun-2027 (Delayed From: Jun-2019)
Status of Open Audit Recommendations as of June 30, 2026 28 Report and Recommendations Current Status Comments
Report #19-01 Audit of 9-1-1 and 3-1-1
Recommendation #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.

Current Status:

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 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) Report #19-03 Development Noticing
Recommendation #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.

Current Status:

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 work to update Council Policy 6-30 was deferred to prioritize completion of the General Plan Four-Year Review based upon direction received from City Council. Efforts to update Council Policy 6-30 resumed in June 2026; however, key staff assigned to this work departed the City in July 2026. The Citywide Planning Group intends to restart this work in August 2026 following the transition to new staff, with an estimated completion date of June 2027. 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: Jun-2027 (Delayed From: Dec- 2021)
Report #19-03 Development Noticing
Recommendation #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.

Current Status:

Partly Implemented
In January 2020, a language map was incorporated into the City’s integrated permitting system to help staff identify predominant languages in project areas. Planning, Building and Code Enforcement reports work to update Council Policy 6-30 was deferred to prioritize completion of the General Plan Four-Year Review based upon direction received from City Council. Efforts to update Council Policy 6-30 resumed in June 2026; however, key staff assigned to this work departed the City in July 2026.

The Citywide Planning Group intends to restart this work in August 2026 following the transition to new staff, with an estimated completion date of June 2027. 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: Jun-2027 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of June 30, 2026 29 Report and Recommendations Current Status Comments
Report #19-03 Development Noticing

Recommendation #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.

Current Status:

Not Implemented
According to Planning, Building and Code Enforcement, implementation of this recommendation would be included in a full review of Policy 6-30. The Department reports work to update Council Policy 6-30 was deferred to prioritize completion of the General Plan Four-Year Review based upon direction received from City Council. Efforts to update Council Policy 6-30 resumed in June 2026; however, key staff assigned to this work departed the City in July 2026. The Citywide Planning Group intends to restart this work in August 2026 following the transition to new staff, with an estimated completion date of June 2027. 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: Jun-2027 (Delayed From: Dec- 2021)
Report #19-03 Development Noticing

Recommendation #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.

Current Status:

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, full implementation of this recommendation would be included in a full review of Policy 6-30. The Department reports work to update Council Policy 6-30 was deferred to prioritize completion of the General Plan Four-Year Review based upon direction received from City Council. Efforts to update Council Policy 6-30 resumed in June 2026; however, key staff assigned to this work departed the City in July 2026. The Citywide Planning Group intends to restart this work in August 2026 following the transition to new staff, with an estimated completion date of June 2027. 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: Jun-2027 (Delayed From: Dec-2021) Report #19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)

Recommendation #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.

Current Status:

Implemented
a) Parks, Recreation and Neighborhood Services (PRNS) implemented an initial screening assessment tool created by its consultant to screen participants for all Youth Intervention Services (YIS) programs. The screening tool was 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). Since then, they have implemented a revised model where services are aligned with three tiers. The Department has updated its model and focused its BEST programming on Tier 2 (early intervention services) and Tier 3 (intensive intervention services). The Department has developed a screening tool to support this change. b) For its 2026-29 strategic workplan BEST programming is aligned with the tier model described above.
c) Grantees are required to administer the participant risk screener tool to all participants to ensure that enrolled participants meet the priority population criteria.

Status of Open Audit Recommendations as of June 30, 2026 30 Report and Recommendations Current Status Comments
Report #19-04 The Mayor’s Gang Prevention Task Force (now the San José Youth Empowerment Alliance)

Recommendation #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.

Current Status:

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 completed surveys at the Neighborhood Services and Education committee in 2028. Target Date: Jun-2028 (Delayed From: Jul-2020) Report #19-08 Street and Utility In-Lieu Fees

Recommendation #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.

Current Status:

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 begin construction in Summer 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)
Report #20-02 Fleet Maintenance and Operations

Recommendation #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.

Current Status:

Partly Implemented
-
Priority
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) Public Works has established a PM compliance target of 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 created a dashboard to track compliance with PM requirements. The Department reports that Fleet has begun disabling fuel access for vehicles not brought in for required maintenance. However, some staff have bypassed this restriction by using another staff's fuel access. Fleet is working on notifying the appropriate department director by email when one or more vehicles are more than 90 days overdue for an inspection or preventive maintenance. Target Date:

Oct-2026 (Delayed From: Dec-2021)
Status of Open Audit Recommendations as of June 30, 2026 31 Report and Recommendations Current Status Comments
Report #20-02 Fleet Maintenance and Operations

Recommendation #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.

Current Status:

Implemented
Fleet worked with Public Works' Technology Services to develop internal reports to monitor the availability of specific assets. The reports are available for Airport Shuttle Buses, Animal Care & Service Kennel Trucks, 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 also developed a dashboard that has information about specific vehicles as well as City department inventories.

Report #20-02 Fleet Maintenance and Operations

Recommendation #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.

Current Status:

Partly Implemented
Public Works has finalized the classification of repair reason IDs in its fleet management software and reports that staff are making progress on a Standard Operating Procedure (SOP) to standardize data entry. The Department also reports that a training is being developed regarding the SOP.

Target Date: Dec-2026 (Delayed From: Dec-2021)
Report #20-02 Fleet Maintenance and Operations

Recommendation #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.

Current Status:

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: Dec-2026 (Delayed From: Jun-2022)
Report #20-05 Development Partners’ Work-in-Progress
Reserves

Recommendation #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.

Current Status:

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 continue to assess 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)
Report #20-05 Development Partners’ Work-in-Progress
Reserves

Recommendation #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.

Current Status:

Partly Implemented
Public Works reports implementing time tracking in the City's integrated permitting system 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 Code 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)
Status of Open Audit Recommendations as of June 30, 2026 32 Report and Recommendations Current Status Comments
Report #21-01 Police Staffing, Expenditures, and Workload

Recommendation #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.

Current Status:

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 alternative scheduling options will be evaluated after the redistricting transition is completed in November 2026. Target Date: Nov-2027 (Delayed From: Jun-2023) Report #21-03 Real Estate Services

Recommendation #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.

Current Status:

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 generated a report on the vacant lands inventory containing a brief description of each property to help identify if there is a City purpose or use for the land. Real Estate issued an informational memo for the first iteration of this periodic reporting on April 24, 2026, and intends to report annually moving forward.

Report #21-03 Real Estate Services

Recommendation #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.

Current Status:

Implemented
Real Estate uploaded facilities and land data from Public Works; the Department of Transportation; Parks, Recreation and Neighborhood Services; and other sources into the Land Information System.

Real Estate and Public Works created a system to cross-reference their databases to keep facilities and land data up to date. Real Estate also implemented fields and reporting functionality needed to support maintenance coordination and reporting on City-owned properties.

Report #21-04 Code Enforcement Management Controls

Recommendation #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).

Current Status:

Partly Implemented
Code Enforcement plans to review and revise its employee expectations based on current and updated division policies and procedures, objective criteria, and performance measures. The Department reports that it is currently working on developing measurable performance metrics for its Multiple Housing and General Code inspectors which it then plans to include in future performance evaluations. Target Date: Apr-2027 (Delayed From: Dec-2025) Status of Open Audit Recommendations as of June 30, 2026 33 Report and Recommendations Current Status Comments
Report #21-05 Municipal Water Billing and Customer Service

Recommendation #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.

Current Status:

Not Implemented
According to the Environmental Services Department (ESD), staff investigated managing service orders with online forms. However, there was not a method to automatically sync data between the City's utility billing system and an online form without significant investment. ESD intends to address this with an update to the City's utility billing system expected to be operational in winter 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) Report #21-05 Municipal Water Billing and Customer Service

Recommendation #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.

Current Status:

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 winter 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) Report #22-02 Environmental Review for New Developments

Recommendation #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.

Current Status:

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 them 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. Staff focus over the past year has been on the Environmental Review Handbook, Environmental Standard Permit Conditions, and templates. Since these tasks are complete or nearing completion, staff expect to shift focus to the cost-recovery analysis and AMANDA tracking improvements over the next fiscal year. 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 completing 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 June 30, 2026 34 Report and Recommendations Current Status Comments
Report #22-02 Environmental Review for New Developments Recommendation #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.

Current Status:

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 now has an Environmental Review Handbook, which includes a list of the City's thresholds of significance. Following that, staff are developing a set of templates for common environmental review documents, including for environmental impact reports and mitigated negative declarations.

Target Date: Dec-2026 (Delayed From: Jun-2023)
Report #22-02 Environmental Review for New Developments Recommendation #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.

Current Status:

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 has also finalized the Environmental Review Handbook, which includes expectations for staff and consultants for check-ins, schedules, and delays. The handbook and the Environmental Review Policy were adopted by the City Council in May 2026. 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.

Report #22-02 Environmental Review for New Developments Recommendation #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.

Current Status:

Implemented
-
Priority
City Council approved the Environmental Review Handbook and Environmental Standard Permit Conditions (together the Environmental Review Policy) on May 19, 2026. The Environmental Review Handbook and Environmental Standard Permit Conditions can be found on the City’s website.

Consultants were required to follow the standards beginning August 19, 2026.

Status of Open Audit Recommendations as of June 30, 2026 35 Report and Recommendations Current Status Comments
Report #22-02 Environmental Review for New Developments Recommendation #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.

Current Status:

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.

Report #22-02 Environmental Review for New Developments Recommendation #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.

Current Status:

Partly Implemented
Since the audit, PBCE reports that the approach to program-level CEQA coverage has changed significantly due to changes to state law, changes to the zoning code allowing more ministerial approvals, and the upcoming General Plan 4-year review. These factors have shifted PBCE's approach to streamlining environmental reviews. Changes in state law exempt most residential projects in the City. Under the new laws that came into effect on July 1, 2025, many residential projects that meet the General Plan and zoning code will be exempt from CEQA review with limited technical analysis. This will be a significantly more streamlined process for residential and mixed- use projects than the original plan to pursue Community Plan Exemptions for qualifying projects in urban villages. To augment the new state laws, staff report that PBCE will be writing an ordinance to allow ministerial review of certain types of residential projects in the Downtown planning area. This will give applicants for eligible residential projects multiple options for streamlined review. The Downtown ministerial ordinance is anticipated to be adopted by City Council in 2027. PBCE is now focusing efforts on preparing a program-level Environmental Impact Report for the General Plan 4- Year Review rather than separate environmental reviews for each urban village or specific plan.

Staff expect that this approach will conserve City funds while maximizing streamlining potential for projects that conform with the General Plan. The 4-Year Review will include zoning ordinance updates to expand eligibility of residential projects for ministerial review to much of the City.

Ministerial permits are not subject to CEQA. Target Date: Dec-2027 (Delayed From: Dec-2022) Report #22-08 Tree Removals and Replacements
Recommendation #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.

Current Status:

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 building submittal checklist and 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. This includes requiring the forms to be included in landscape plans. PBCE reports that staff will cross-reference the forms and also double-check the permit condition to ensure landscaping is consistent with requirements. PBCE will be working with the Information Technology Department (ITD) to integrate these processes into the permitting system to ensure that they are completed prior to issuing a certificate of occupancy for these developments. Target Date: Dec-2026 (Delayed From: Jan-2025) Status of Open Audit Recommendations as of June 30, 2026 36 Report and Recommendations Current Status Comments
Report #22-08 Tree Removals and Replacements
Recommendation #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.

Current Status:

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. At their July 2026 meeting, the Community Forest Advisory Committee discussed the foundation of an outreach plan.

DOT reports that the committee will further discuss at their meeting in October 2026. Target Date:

Dec-2026 (Delayed From: Dec-2023)
Report #23-03 Integrated Waste Management Enforcement
Program
Recommendation #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.

Current Status:

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. ESD reports that a vendor has been procured and contracted, and staff are currently configuring, migrating, and testing the new system.

According to the Department, the system is targeted to go live in December 2026, with full implementation expected by June 2027. Target Date: Jun-2027 (Delayed From: Jun-2026) Potential Monetary Benefit: At the time of the audit, we estimated 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.

Report #23-04 Housing Performance Measures
Recommendation #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.

Current Status:

Closed
The Housing Department (Housing) has made significant progress in documenting the methodology for performance measures included in Adopted Operating Budget. Housing provided the City Auditor's Office with documented methodology for nearly all of the performance measures in the Neighborhood Services and Community and Economic Development CSA chapters, as well as the Housing Department chapter. For this reason, we recommend closing this recommendation.

Report #23-07 Residential Building Permits
Recommendation #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.

Current Status:

Not Implemented
As of June 30, 2026, Planning, Building and Code Enforcement was 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 would address the remaining parts of the recommendation, including analyzing the permit fee model, and updating the staffing assumptions related to vacancies, workload, and the use of reserves. Target Date: Dec-2026 (Delayed From: Sep-2024)
Status of Open Audit Recommendations as of June 30, 2026 37 Report and Recommendations Current Status Comments
Report #23-07 Residential Building Permits
Recommendation #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.

Current Status:

Implemented
Planning, Building and Code Enforcement (PBCE) implemented a policy clarifying billable and non- billable time for plan review staff, including Senior Engineers. In collaboration with the Information Technology Department, PBCE completed updates to the City's integrated permitting system (AMANDA) to ensure that additional plan review fees are billed at the current adopted fee rate.

Report #23-07 Residential Building Permits
Recommendation #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.

Current Status:

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: Dec-2026 (Delayed From: Dec-2024)
Report #24-01 Non-Management Performance Appraisals
Recommendation #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.

Current Status:

Partly Implemented
According to the Human Resources Department (HR), staff had begun work to automate the Non- Management Performance Program (NMPP) appraisal form through the same process as the Management Performance Program, but found that the system was not conducive for the NMPP appraisal process. According to HR, staff researched a new system for the NMPP process. Due to budget constraints, no funding was allocated to purchase the system module during fiscal year (FY) 2026-27. HR plans to request funding during the FY 2027-28 cycle. In the meantime, staff report that they will continue researching available systems, engaging with stakeholders, and refining an implementation plan to ensure the project can move forward once funding is available. Target Date:

Jul-2027 (Delayed From: Jun-2026)
Status of Open Audit Recommendations as of June 30, 2026 38 Report and Recommendations Current Status Comments
Report #24-02 Language Accessibility

Recommendation #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.

Current Status:

Report #24-02 Language Accessibility

Recommendation #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.

Current Status:

Implemented
The City Manager's Office of Communications, in partnership with the Office of Racial and Social Equity, updated the Racial and Social Equity Action Plan template. As of July 2026, the plans require each City department to include one objective related to language accessibility. The intent of this is to streamline and strengthen equity efforts across the City while being mindful of budget and staff capacity. The Language Access Manager intends to support departments in developing and implementing their objectives by providing guidance and technical assistance. 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.

Report #24-02 Language Accessibility

Recommendation #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.

Current Status:

Partly Implemented
According to the City Manager's Office of Communications, they continue to draft 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)
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
The Housing Department reports that data testing of a Tenant Protection Ordinance (TPO) unit roster was conducted in January 2026, and further adjustments are needed on the developer side to address discrepancies between data sources. Staff are making final adjustments before the TPO database goes live in November 2026. Target Date: Nov-2026 (Delayed From: Apr-2026) Status of Open Audit Recommendations as of June 30, 2026 39 Report and Recommendations Current Status Comments
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
Status of validating unit counts is part of the updates noted in the response to Recommendation #2405 #1 and will be completed by November 2026. Housing reports that during the period January 2026 – June 2026, program staff finalized its review of existing and pending exemption requests and exemption entries in AMANDA. Additional staff were trained and are processing new and revised exemption requests for the FY 2026-27 billing cycle. As part of the coordination with Code Enforcement’s Multiple Housing Program, Housing staff plan to further review the Multiple Housing Roster to ensure accuracy of exemptions entered into AMANDA, prior to the issuance of fee invoices. Target Date: Nov-2026 (Delayed From: Apr-2026) Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
The Exemption Request Form was revised to address prior issues regarding exemption requirements and was sent out in preparation for FY 2026-27 next billing cycle. Housing reports that this process will be outlined in the final TPO Regulations, which are expected to be adopted by October 2026. Target Date: Oct-2026 (Delayed From: Apr-2026) Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
The Housing Department (Housing) reports that for FY 2025-26, the Rent Stabilization Program (RSP) implemented time allocation instructions for staff when submitting their timecards and supervisors review allocations when approving timecards. Housing's Budget team conducted a review of the time allocations for FY 2025-26 as part of the FY 2026-27 budget process and budgeted program expenses accordingly in calculating the proposed TPO fee for FY 2026-27. Based on each staff’s time allocation to different fee programs for FY 2025-26, the Budget Team assigned a unique account code for each staff member which allocates their time accordingly on the backend.

This simplifies the timecard entry process for staff and mitigates misallocation of time. In FY 2026- 27, RSP plans to conduct a time study and workflow analysis of program related tasks to further improve the time allocation analysis for fee calculation. Once the Salesforce updates described in Recommendation #2405-01 are finalized, a report consisting of: types of tasks, staff who performed the task, and what category of rental unit was involved will be run and used to calculate staffing costs per fee program. The necessary Salesforce database upgrades and time-study results and analysis are expected to be completed in the second half of FY 2026-27. Target Date: Jul-2027 (Delayed From: Jun-2026)
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
Housing reports that the Tenant Protection Ordinance (TPO) process and procedures have been incorporated into the program manual and continue to be refined. TPO case tracking and management through Salesforce is under development as part of a larger Salesforce TPO database project. Target Date: Dec-2026 (Delayed From: Jun-2026) Status of Open Audit Recommendations as of June 30, 2026 40 Report and Recommendations Current Status Comments
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
Housing has refined their interaction data collection to label which ordinances are being inquired about, clarify when staff are enforcing ordinances, and eliminate unnecessary data fields. Full completion of this recommendation is tied to the database updates referenced in Recommendation #2405-01 becoming fully implemented. Target Date: Nov-2026 (Delayed From: Jun-2026) Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
Housing reports that the Rent Stabilization Program will work with the Data Division after the TPO database is finalized (see update to recommendation #2405-01) to develop and launch a dashboard with the data points that are typically provided in semi-annual and annual reporting to HCDC. Those data points and measures will be updated quarterly. Target Date: Dec-2026 (Delayed From: Jun- 2026)
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
Housing staff have updated the Rent Stabilization Program Community Outreach Plan, but is waiting for the Tenant Protection Ordinance (TPO) database to be finalized to refine the outreach strategy (see recommendation #2405-01). Target Date: Jan-2027 (Delayed From: Jun-2026) Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
The Housing Department (Housing) reports that further improvements were planned for Rent Registry 8.0 relating to information about the Tenant Protection Ordinance (TPO) and draft revisions to the TPO flyer were made with the goal of providing a final version to property owners when they register units in Fall 2026. The overall project of updating materials and developing focused workshops for property owners is expected to be underway in Fall 2026 with the hiring of a Policy and Public Engagement Manager and Senior Communications manager. The Rent Stabilization Program began working with the Communications team in June 2026 to continue to revise its flyers and the website, with the goal of information being more accessible and easier to understand. Once the TPO flyer is finalized, Housing reports they will coordinate with Code Enforcement to include the revised TPO flyer in annual billings to all TPO buildings (charged through Code's Multiple Housing Inspection Program). Target Date: Jan-2027 (Delayed From: Jun-2026) Status of Open Audit Recommendations as of June 30, 2026 41 Report and Recommendations Current Status Comments
Report #24-05 Tenant Protection Ordinance

Recommendation #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.

Current Status:

Partly Implemented
The Rent Stabilization Program (RSP) has had multiple interactions and meetings with Code Enforcement staff about protocol for providing tenants information, communications, and referring impacted tenants to RSP. The Housing Department plans to set up regular meetings with Code Enforcement’s new Division Manager with the goal of developing procedures for coordination between departments. Target Date: Dec-2026 (Delayed From: Jun-2026) Report #24-08 Access and Use of Neighborhood Blight
Reduction Programs

Recommendation #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.

Current Status:

Partly Implemented
-
Priority
According to the Information Technology Department, implementation of support for both Traditional and Simplified Chinese has been deferred to FY 2026–27 due to the planned transition of the SJ311 application to a new technology platform as part of the Customer Relationship Management (CRM) initiative. However, the Department has added Cantonese and Mandarin options to the SJ311 Customer Call Center phone tree. Target Date: Jun-2027 (Delayed From: Jun-2026) Report #24-08 Access and Use of Neighborhood Blight
Reduction Programs

Recommendation #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).

Current Status:

Not Implemented
The Finance Department (Finance) Accounting Fiscal Recovery and Grant Management Unit is pursuing renewal of the City’s WebGrants contract with Dulles Technology through a Brand Name Request and cooperative purchasing agreement. Since the previous update, Dulles Technology added multilingual features that satisfy a requirement that had prompted consideration of a new platform. The Department expects this approach to reduce costs and implementation time while preserving the City’s existing investment.0 Finance plans to submit the purchase request at least two months before the intended start date. Target Date: Jun-2027 Report #24-08 Access and Use of Neighborhood Blight
Reduction Programs

Recommendation #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).

Current Status:

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 December 2026. Target Date: Dec-2026 (Delayed From: Dec-2025)
Status of Open Audit Recommendations as of June 30, 2026 42 Report and Recommendations Current Status Comments
Report #25-01 City Costs for Outdoor Special Events

Recommendation #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.

Current Status:

Partly Implemented
The Office of Economic Development and Cultural Affairs (OEDCA) reports that it is working with the Police Department's Secondary Employment Unit (SEU) to identify a reasonable timeframe within which event organizers are notified of potential staffing gaps. OEDCA has since established and documented timelines in the revised Special Event Guidelines, which state that labor cost estimates for required security and traffic control services are generally provided 14 to 60 days before an event. The Guidelines also state that organizers will be notified of anticipated SEU staffing gaps as soon as practicable and, whenever possible, no later than two weeks before the event, allowing time to consider alternative staffing arrangements. The Police Department reports that it provides labor cost estimates during pre-event planning meetings for large-scale events and upon request for smaller events. The Department is also in the process of updating its SEU Procedure Manual to codify requirements for providing cost estimates and establish a reasonable timeframe for notifying organizers of potential staffing gaps. Target Date: Dec-2026 Report #25-01 City Costs for Outdoor Special Events

Recommendation #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.

Current Status:

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 has since updated the City Costs webpage to include current Police Department sworn officer and supervisor rates, Department of Transportation Parking and Traffic Control Officer rates, applicable holiday rates, and the 1.5x overtime rate for large-scale events requiring 15 or more sworn officers. OEDCA also updated the Special Event Guidelines to explain factors affecting City service costs and direct event organizers to current rates. The Police Department reports that it is working to expand information on its website and permit application to include non-sworn personnel rates and large-event information and incorporate this information into its Secondary Employment Unit Procedure Manual. Target Date: Jul-2027 (Delayed From: Dec-2025) Report #25-01 City Costs for Outdoor Special Events

Recommendation #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.

Current Status:

Partly Implemented
OEDCA has updated the Special Event Guidelines to clarify the respective roles of sworn Police personnel, non-sworn City personnel, certified traffic control flaggers, and licensed private security in supporting outdoor special events. The Guidelines identify roles for Community Service Officers, Crossing Guards, and Department of Transportation Parking and Traffic Control Officers to support the efficient use of sworn personnel while maintaining public safety. The Guidelines also clarify that final staffing determinations remain the Police Department’s responsibility based on event-specific operational and public safety considerations. The Police Department reports that it is updating its Secondary Employment Unit (SEU) Procedure Manual to further define and prioritize the roles of private security and non-sworn personnel, including their use for traffic control. Target Date: Dec- 2026 (Delayed From: Jun-2026)
Status of Open Audit Recommendations as of June 30, 2026 43 Report and Recommendations Current Status Comments
Report #25-01 City Costs for Outdoor Special Events

Recommendation #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.

Current Status:

Partly Implemented
The Office of Economic Development and Cultural Affairs (OEDCA) reports that it continues to work with the Police Department and other departments to develop a Citywide approach to special event permitting and billing. OEDCA reports staff are currently documenting interdepartmental processes and requirements for a shared permitting, review, and billing system. Additionally, OEDCA has also drafted standard operating procedures to improve consistency in event permitting, post-event billing, and interdepartmental follow-up under the current process. OEDCA reports staff will continue working with relevant departments to develop a coordinated Citywide permitting and billing platform that reduces duplicative processes and improves transparency and customer service for event organizers. Target Date: Jun-2027
Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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.

Current Status:

Partly Implemented
The Department of Transportation revised its outreach workplan to prioritize Walk N' Roll support for Title 1 schools concerning education and encouragement activities. The Department plans to incorporate other services to the outreach plan and add more details on how to reach more schools in equity priority communities. Target Date: Dec-2026 (Delayed From: Jun-2026) Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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.

Current Status:

Partly Implemented
a. The Police Department's School Safety & Education Unit (SSEU) updated its webpage to include information on the process of requesting guards along with a request form. The website can be reached at: https://www.sjpd.org/community/community-services/school-safety-education b. The Department plans to revise its outreach plan to include how it will focus on reaching schools in equity priority communities and incorporate the revised plan into the SSEU manual. c. The Department also plans to consider using the Schools-City Collaborative as a channel for disseminating outreach materials about SSEU programs. Target Date: Dec-2026 Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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.

Current Status:

Not Implemented
The Department of Transportation and the Police Department’s School Safety and Education Unit plan to exchange school contact information to update their respective contact lists, co-create a brochure highlighting traffic safety services provided by both departments, and distribute the brochure to schools. Target Date: Dec-2026 (Delayed From: Jun-2026) Status of Open Audit Recommendations as of June 30, 2026 44 Report and Recommendations Current Status Comments
Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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.

Current Status:

Implemented
The school requests for crossing guards are tracked in a live Safety Index Study List by both the Department of Transportation (DOT) and the Police Department (SJPD). DOT reports that SJPD notifies DOT of the crossing guard study locations, and intends to follow up to collect traffic data, conduct the study, update the study results in the spreadsheet, and notify SJPD in 8-12 weeks.

Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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.

Current Status:

Implemented
a. The Police Department has 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. The Department developed an informational card explaining how to file a traffic complaint and request traffic-related services. The card includes a QR code linking directly to the Department's "Request Traffic Enforcement" webpage and is available in the languages identified in the City's Language Equity Policy & Guidelines (6.1.10). The card also includes the Traffic Enforcement Unit's telephone number. The cards have been distributed in equity priority communities.

Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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).

Current Status:

Partly Implemented
The Department of Transportation (DOT) has drafted an update to the Traffic Calming Toolkit to align content with the updated Council Traffic Calming Policy for Residential Neighborhoods (Council Policy 5-6), as well as information about internal coordination, current services, best practices, and policies, as well as integration of recent project photos and compliance with accessibility requirements. Target Date: Dec-2026 (Delayed From: Dec-2026) Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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).

Current Status:

Partly Implemented
The Department of Transportation reports that due to a staff shortage during the 2026 bike rodeo season, the newsletter production was paused. Instead, staff shared bike safety and Walk N' Roll program information with school principals by email. Newsletter production has since resumed, and DOT plans to publish the October newsletter in both Simplified and Traditional Chinese, Spanish and Vietnamese. Target Date: Oct-2026 (Delayed From: Apr-2026) Status of Open Audit Recommendations as of June 30, 2026 45 Report and Recommendations Current Status Comments
Report #25-02 Access and Use of Traffic Safety Services

Recommendation #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).

Current Status:

Not Implemented
The Department of Transportation reports that its current telephone tree system is antiquated and is exploring alternative solutions. The Police Department reports that it intends to submit a budget request for an AI-powered call answering system to modernize its non-emergency call handling and improve service to the community. Target Date: Jun-2027 (Delayed From: Dec-2026) Report #25-03 Procurement

Recommendation #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.

Current Status:

Partly Implemented
-
Priority
Parts (a), (b), (d), and (e) of the recommendation have been implemented. Following the previously completed increase in the City’s competitive procurement threshold from $10,000 to $15,000, the Finance Department finalized procedures for waiving certain insurance requirements based on contract scope; revised the City’s P-Card Policy to permit purchases of goods and services up to the $15,000 threshold, supported by Citywide training; and updated the City’s standard contract and purchase order terms and conditions for future procurements. Part (c) is partially implemented:

Finance is coordinating with the City Attorney’s Office and City Manager’s Office on a procedure to streamline small software purchases, including a proposed Small Purchase Contract Review Form that could allow qualifying purchases of up to $15,000 without City Attorney’s Office review. Finance reports that these updates are under review. Target Date: Dec-2026 (Delayed From: Apr-2026) Report #25-03 Procurement

Recommendation #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.

Current Status:

Implemented
The Finance Department has implemented Microsoft Project to track overall and interim milestones throughout the strategic procurement process, including solicitation development, bid posting, vendor evaluation, and contract negotiations. The tool enables Finance-Purchasing staff to identify, sequence, and assign tasks and monitor progress against established timelines. Finance- Purchasing supervisors and leadership plan to regularly review project progress through Microsoft Project to monitor milestone completion, identify delays, and take corrective action as needed to keep procurement activities on schedule. Finance also developed a sample project schedule illustrating how procurement milestones and timelines will be planned and tracked.

Status of Open Audit Recommendations as of June 30, 2026 46 Report and Recommendations Current Status Comments
Report #25-03 Procurement

Recommendation #05: The Finance Department should develop performance measures for strategic procurement projects including cycle times for key process milestones.

Current Status:

Implemented
The Finance Department has developed performance measures and cycle-time standards for key strategic procurement activities. Requests for proposals are to be completed within 343 days of the initial request, with interim milestone timelines established in Finance’s procurement tracking framework. Contract options and contract updates, including amendments, change orders, and service orders, are each to be completed within 90 days of the request. Finance has also documented the applicable processes and submittal requirements in its Guidelines for Purchasing Contract and RFP Procurements.

Report #25-03 Procurement

Recommendation #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.

Current Status:

Implemented
-
Priority
The Finance Department developed and published a consolidated procurement handbook for Citywide use on its Finance-Purchasing intranet site. The handbook provides updated policies, procedures, instructions, and guidance covering the roles and responsibilities of Purchasing and department staff, procurement thresholds and solicitation types, and step-by-step instructions for conducting procurements and completing required templates and forms.

Report #25-03 Procurement

Recommendation #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.

Current Status:

Implemented
The Finance Department developed three standardized scope-of-work templates covering product, service, and information technology procurements. The templates include practical examples for each use case and are linked within existing procurement guidance on the Finance-Purchasing intranet site for use by City departments. Finance has also made additional scope-development resources available, including a “Developing Scopes of Work” presentation and related training materials.

Status of Open Audit Recommendations as of June 30, 2026 47 Report and Recommendations Current Status Comments
Report #25-03 Procurement

Recommendation #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.

Current Status:

Implemented
The Finance Department, in coordination with City stakeholders, updated nine purchasing-related sections of the City Policy Manual to align with current operations and procedures. These revisions encompass the seven sections identified in the audit recommendation as well as two additional purchasing-related sections. The updated policies address procurement integrity, source selection plans, sole-source and brand-name procurements, grant-funded purchases, and procurements involving supplies, non-professional services, and information technology, among other topics.

Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Implemented
-
Priority
a. In the Housing Department (Housing), the Enhanced Engagement Program (EEP) deploys staff around BeautifySJ’s encampment abatement schedule and the Oversized and Lived-in Vehicle Enforcement (OLIVE) Program. The EEP team’s role is to engage individuals before enforcement occurs; notify individuals of upcoming activity; and connect them with shelter and other services.

Housing refers to BeautifySJ’s abatement schedule and map, which indicates when BeautifySJ staff requested homeless response outreach. Housing aims to provide outreach two weeks before the abatement date. The Department of Transportation (DOT) also has a public map showing where vehicles were investigated through the OLIVE Program and may be towed. b. Through the EEP, Housing reorganized its outreach approach to expand geographic coverage. As noted in part a, the EEP is focused on aligning the timing of outreach deployment with encampment abatements and OLIVE enforcement. Although Housing does not directly respond to community submitted concerns, Housing provides outreach prior to encampment abatements that arose from SJ311. Additionally, Housing reported responding to concerns submitted by other City departments.

Status of Open Audit Recommendations as of June 30, 2026 48 Report and Recommendations Current Status Comments
Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Implemented
The Housing Department (Housing) created and distributed a protocol to staff in other departments that engage with unhoused residents.
a. The protocol outlines information that staff should provide when an unhoused person requests information or assistance, such as Housing's homelessness resource guide and the Here4You phone number.
b. Per the protocol, City employees should submit outreach concerns to Housing through SJ311.

Staff are expected to submit a concern if the unhoused individual is seeking homelessness-related assistance, and when staff are not sure if the individual will already receive outreach through Housing's Enhanced Engagement Program.

Report #25-04 Homelessness Coordination

Recommendation #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 service 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.

Current Status:

Implemented
The Housing Department (Housing) updated its grant monitoring procedures. a. The procedures note that grant oversight is a coordinated effort among grant monitoring staff, program staff, and the Data Division. The roles of each are described in b. Supervisors and managers of each team are responsible for reviewing monitoring activities and findings, ensuring appropriate follow-up, and escalating significant compliance or performance concerns. Housing also contracts with the PUN Group for external subrecipient monitoring. b. The procedures outline that grant monitoring staff are responsible for reviewing reports and invoices, site visits, and other routine monitoring activities. Some of this work is addressed by completing a Quarterly Performance Report. Program staff monitor grantees’ service delivery and contract requirements, and communicate performance concerns with the grant monitoring staff and supervisors. The Data Division validates program data by reconciling data with HMIS and notifying discrepancies to grant monitoring staff.
c. Housing removed COVID-19 references from their grant monitoring procedures. Housing also reported removed COVID-19 protocols for several contracts.

Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Implemented
Between January and July 2026, the Grants Manager within the Housing Department (Housing) held multiple trainings for Housing’s grant monitoring team. Trainings touched on federal grant requirements, quarterly progress reports from grantees, contract development, and financial workbooks. Housing also updated its Quarterly Progress Report (QPR) template, which grant staff use to document their review of grantees’ performance against contracted activities, deliverables, and goals. When verifying that a grantee provided a deliverable (e.g., drop-in services or monitoring housing plans), the QPR requires staff to include supporting documentation. Additionally, the QPR notes that if an agency experiences recurring or significant issues achieving contracted expectations, Housing may provide technical assistance, meet with the agency more frequently, or develop a corrective action plan to address performance concerns. For significant issues, Housing may recommend that an agency be removed from the contract, or that the contract not be renewed.

Status of Open Audit Recommendations as of June 30, 2026 49 Report and Recommendations Current Status Comments
Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Implemented
The Housing Department (Housing) amended several interim housing agreements, formalizing a requirement that grantees monitor each participant’s progress towards their housing goals. The agreements also require grantees to submit participants’ housing plans to the City annually. For future agreements or amendments, Housing created a contract template; this template includes language that every program participant must have a housing plan, and that the grantee will monitor participants’ progress. In addition to amending contracts, Housing reported developing Admission and Continued Occupancy Program Regulations. These regulations are intended to standardize operating requirements across the City’s shelter portfolio, including formalizing expectations for case management and housing plans.

Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Partly Implemented
The Housing Department (Housing) updated performance measures and grantees’ reporting requirements in areas such as occupancy rates, unit turnaround times, and client exits. In addition to changes to the Operating Budget’s performance measures, Housing updated targets and data reporting requirements in grantees’ contracts. These changes resulted in aligning performance data between the Operating Budget, Housing’s interim housing dashboard, and grantee agreements. To fully implement this recommendation, Housing should better align performance targets for outreach activities. Target Date: Oct-2026 (Delayed From: Jun-2026) Report #25-04 Homelessness Coordination

Recommendation #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.

Current Status:

Partly Implemented
-
Priority
The Housing Department (Housing) has selected a contractor to provide centralized property management services across the City’s shelter portfolio, with the exception of the motel-based shelter sites and the Navigation Center. Housing reports that the contractor will provide facility maintenance services, enabling the social service providers at each site to focus more on participant services. According to Housing, the property management contractor will provide a centralized maintenance management system, which will allow the City and site operators to submit maintenance requests and track work orders. Housing anticipates the initial rollout to begin with five shelter sites by October 2026. Housing reported they will work with the selected contractor, site operators, and the Public Works Department to address the recommendation. Target Date: Dec- 2026 (Delayed From: 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.

Status of Open Audit Recommendations as of June 30, 2026 50 Report and Recommendations Current Status Comments
Report #25-05 Fire Inventory Controls Over Controlled
Substances

Recommendation #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.

Current Status:

Not Implemented
The Department completed its procurement process and is finalizing the final quantity and models of the biometric safes with anticipated installation on Fire apparatus in Fall 2026. 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
Report #25-05 Fire Inventory Controls Over Controlled
Substances

Recommendation #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.

Current Status:

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 system administrator is a civilian analyst who does not have access to controlled substances and does not oversee inventory reconciliation. The system administrator creates new user accounts and passwords. The EMS Fire Captain is the distribution manager who maintains physical custody of controlled substances, removes expired medications from service, and conducts random inventory audits. The inventory control manager responsibilities are assigned to the EMS Battalion Chief, overseeing records management, inventory reconciliation, purchase reconciliation, inventory adjustments, removals for destruction, and quarterly audits. The inventory control manager does not have access to the main safe with controlled substances and is not a system administrator. Multiple log-in credentials within the inventory management system have been deactivated and personnel with access to controlled substances can no longer create new user accounts.

Report #25-05 Fire Inventory Controls Over Controlled
Substances

Recommendation #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.

Current Status:

Partly Implemented
The Fire Department 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 Department completed its procurement process and is finalizing the final quantity and models of the biometric safes with anticipated implementation in Fall 2026. Target Date: Dec-2026 (Delayed From: Jun-2026)
Status of Open Audit Recommendations as of June 30, 2026 51 Report and Recommendations Current Status Comments
Report #26-01 Sewer Rates

Recommendation #01: The Environmental Services Department should review the rate model assumptions for calculating sewer rates to ensure they reflect current conditions and update as applicable, including:
a.Strength assumptions for non-monitored users,
b.Working days in a year for non-residential users,
c.Allocations of operations and maintenance costs, and
d.Other assumptions as necessary that impact user rates.

Current Status:

Not Implemented
The Environmental Services Department reports working to implement a two-year comprehensive flow and loading study for the San Jose / Santa Clara Regional Wastewater Facility service area that will evaluate current conditions and assumptions used for calculating sewer rates. Since this is a service area wide study, a subsequent study using this data will be conducted to evaluate and update San Jose's sanitary sewer rate model including: a. Strength assumptions for non-monitored users, b. Working days in a year for non-residential users, c.Allocations of operations and maintenance costs, and d. Other assumptions as necessary that impact user rates. Target Date:

Dec-2027
Report #26-01 Sewer Rates

Recommendation #02: The Environmental Services Department should strengthen its sewer rate model procedures to clarify how often strength, flow, and other assumptions should be reviewed and updated.

Current Status:

Implemented
In May 2026, the Environmental Services Department (ESD) formalized its standard operating procedure (SOP) for Conducting Recurring Sanitary Sewer Flow and Loading Studies. The SOP outlines a plan to request funding for consultant-led flow and loading studies in 2034, 2044, and 2054, followed by issuing a Request for Proposal (RFP) and selecting a consultant in 2035, 2045, and 2055. The SOP also identifies the ESD parties responsible for reviewing and contributing to the RFP and specifies the types of activities which should be included in the consultant’s scope of work for the study.

Report #26-01 Sewer Rates

Recommendation #03: To improve the workflow for calculating sewer rates, the Environmental Services Department should consider implementing:
a.A rate model software solution, and
b.A more streamlined way to allocate costs, potentially with the use of a consultant.

Current Status:

Partly Implemented
The Environmental Services Department received authorization to purchase rate modeling software as part of the FY 2026-27 Adopted Operating Budget. Procurement and implementation of this software is expected to take 18+ months. Target Date: Dec-2027 Report #26-01 Sewer Rates

Recommendation #04: To better manage risk and plan for future needs in the Sewer Service and Use Charge Fund, the
Environmental Services Department should:
a.Develop and adopt a formal sewer reserve policy that
defines reserve types with intended uses and target levels, and b.Report on targeted and actual reserve levels in the annual rate proposal memo to the City Council.

Current Status:

Implemented
On March 3, 2026, Council approved an update to Council Policy 1-18. The Environmental Services Department (ESD) provided expanded discussion of use of reserves as part of its June 2, 2026 Council Memo regarding Sanitary and Storm Sewer Service Charges. Also in June 2026, ESD updated its SOP for Rate Development and Proposition 218 Noticing to include reserve level guidelines.

Status of Open Audit Recommendations as of June 30, 2026 52 Report and Recommendations Current Status Comments
Report #26-01 Sewer Rates

Recommendation #05: To enhance transparency around sewer rate setting for monitored users, the Environmental Services Department should document procedures for:
a.Setting and reviewing sampling frequencies and calculation methodologies (e.g., rolling averages), and
b.Notifying users as appropriate, including for the rationale of any changes in their sampling methodology.

Current Status:

Implemented
The Environmental Services Department (ESD) reviewed and updated its sampling methodologies ('Monitored Industrial Fact Sheets') for every monitored industrial SSUC user. ESD drafted and sent out a communication to industrial users communicating approved rates effective July 1, 2026, and reminding them about their sampling methodology. Further, the department updated its website to include specialized information for Monitored Industrial Customers.

Report #26-01 Sewer Rates

Recommendation #06: To improve the transparency and public understanding of sewer rate setting, the Environmental Services Department should update their sewer rate web page to:
a.Make the “Frequently Asked Questions” information easily accessible, and
b.Add descriptions of how rates are calculated for each customer category, including sample calculations and links to supporting studies.

Current Status:

Implemented
As part of Spring 2026 rate noticing communications, the Environmental Services Department (ESD) moved its FAQ documents to a more easily accessible level of its web hierarchy, with links to utility rate information being added to the ESD homepage and a link to SJEnvironment.org/RatesOverview being included in printed rate notices. The posted FAQ document iterated from prior years as it included a discussion of how rates are calculated for different customer categories under the header "How are my rates determined?" and sample calculations for retail and restaurant customers.

Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #01: To increase transparency around
operational changes to improve police services, the Police Department should include outcomes from its redistricting efforts, such as response times and call volume distribution, and if needed, an analysis of alternative shift schedules, into future Increasing Community Safety Focus Area reports.

Current Status:

Not Implemented
The Department reported that it is on track to transition from a 16-district to a 12-district patrol structure in November 2026. After the redistricting transition is complete, the Department plans to work with the City Manager's Office to incorporate the outcomes of its redistricting efforts into future Increasing Community Safety Area initiatives. According to the Department, these outcomes are expected to include, as appropriate, response time data, call volume distribution across districts, and other relevant performance indicators. Target Date: Jan-2028 Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #02: To improve how response times are
reported publicly or for internal purposes, the Police Department should update its methodology for calculating response times for Priority 1 and Priority 2 calls by:
a.Excluding calls that are downgraded to a lower priority during a response; and/or
b.Consider the use of median response times instead of
average response times to reduce the impact of outliers.

Current Status:

Not Implemented
The Police Department reports that the Bureau of Technical Services is evaluating the feasibility of excluding calls downgraded to a lower priority during the response and using median response times to reduce the impact of outliers. Target Date: Dec-2026 Status of Open Audit Recommendations as of June 30, 2026 53 Report and Recommendations Current Status Comments
Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #03: To measure progress around the
Department’s hiring and retention efforts, the Police Department should:
a.Include recruit retention rates in the Increasing Community Safety Focus Area updates to augment the current recruitment reporting, and
b.Include overall retention results for sworn staff in the Department’s annual recruitment and hiring report to the Public Safety, Finance and Strategic Support (PSFSS) Committee.

Current Status:

Partly Implemented
The Police Department tracks retention rates for recruits and sworn staff internally. The Department reports that it is working to incorporate recruit retention results into the Increasing Community Safety Focus Area and sworn staff retention rates into its annual recruitment and hiring report to the Public Safety, Finance, and Strategic Support (PSFSS) Committee. Target Date: Dec-2026 Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #04: To ensure adequate oversight and the effectiveness of existing controls, the Police Department should develop a process to monitor compliance with the Overtime Controls Memorandum No. 2026-008, including requiring
documented justification for report-writing and follow-up overtime and ensuring approvals are consistent with the revised expectations for pre-planned and unplanned overtime.

Current Status:

Partly Implemented
-
Priority
In accordance with the Overtime Controls Memorandum No. 2026-008, the Police Department requires unplanned follow-up and report writing overtime to be reviewed and approved by staff's immediate supervisors during the timesheet approval process. The Department reports that it is working to implement a process for documenting the justification for report-writing and follow-up overtime as well as to monitor compliance with the Overtime Controls memorandum. Target Date:

Feb-2027
Potential Monetary Benefit: At the time of the audit, we estimated that a 1 percent reduction in follow- up and report writing overtime would result in a savings of $280,000.

Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #05: To improve supervisory oversight, the Police Department should develop a process to follow up when retroactive approval of overtime by sworn supervisors has not occurred.

Current Status:

Implemented
The Police Department outlined the retroactive approval process in Overtime Control Memorandum 2026-008, requiring supervisors to approve or deny timecards retroactively when necessary. The Department’s timekeepers have implemented a process for following up on overdue approvals.

Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #06: To restrict sworn staff from signing up for secondary employment assignments that overlap with other shifts, the Police Department should evaluate whether its timekeeping software can be configured to prevent such
occurrences. Alternatively, implement a regular review process to ensure compliance with the Duty Manual restrictions on overlapping hours.

Current Status:

Not Implemented
The Police Department is no longer pursuing a technological solution due to limited funding. The Department reports that it will continue to explore other options. Target Date: Feb-2027 Status of Open Audit Recommendations as of June 30, 2026 54 Report and Recommendations Current Status Comments
Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #07: To better assess performance of the Community Service Officer program, the Police Department should develop performance metrics to assess whether the program is meeting its intended purpose. This may include metrics such as the number and types of calls responded to, or the geographic distribution across districts, or other similar metrics.

Current Status:

Implemented
The Community Service Officer (CSO) program tracks CSO performance using established metrics and reports the results internally each quarter. The quarterly report describes the program’s purpose and objectives and includes data on the types of calls handled by CSOs.

Report #26-02 Police Staffing, Expenditures, and Workload Follow-Up Report

Recommendation #08: To better align calls that Community Service Officers (CSOs) respond to with the Duty Manual dispatchable calls for service list, the Police Department should update the Duty Manual to:
a.Include call types not currently listed but which CSOs commonly handle, such as “evidence pick-up,” “meet the
citizen,” and “parking violations,”
b.Remove call types that CSOs would not normally handle.

Current Status:

Partly Implemented
The Police Department reports that a revision to the Duty Manual has been drafted that formally adds call types commonly handled by Community Service Officers (CSOs), such as "evidence pick- up," "meet the citizen," and "parking violations." The revision also clarifies the prioritization of call types to better align with the Department's intended use of CSOs to address part b of the recommendation. Target Date: Jul-2027
Status of Open Audit Recommendations as of June 30, 2026 55

San Jose City CouncilSeptember 22, 2026

San Jose City Council
September 22, 2026