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meeting of the audit Committee on July 28th.

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You know, to order. And city staff.

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Can we have a roll call?

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Vice Mayor Chow here. Here.

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Here, here.

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Super.

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So everybody who's watching live

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and in person, we've had a bit of a scramble here,

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but we're excited to have our meeting and we will get started.

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Are there any oral communications that you see?

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Virtually? I don't see anyone in the room here.

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I senior class originally and request person.

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Thank you.

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So we'll move to the consent calendar then.

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And there's three items on our agenda in there.

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And I have a bit of experience.

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And we've got I didn't reduce the vice mayor here is

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we're we're lucky to have a quorum.

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And the vice mayor is representing Ray

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Wong as a, as an alternate I think the way it works.

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So thank you very much

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for fitting us into your schedule so we can have our meeting here

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and consent items, and we can ask questions if we have a question.

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Otherwise, we know we can't deliberate unless we owe an item.

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So I do have a question on the second item started, but I don't want to pull it.

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I think it's a simple enough one in regard to Dennis,

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thank you very much for adding page 16 of 33 in the PDF.

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Dennis is a representative of PSU, US Bank.

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Thanks for attending.

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But page 16 is an attribution of.

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I suppose, our

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the city's different achievement versus the index,

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and it's very nice to have that in there.

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I wondered if as elucidating for a minute or two,

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you could just explain a bit about how that table works.

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And primarily there's an attribution on the.

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The commodity

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line shows a positive point 4 or 5% attribution,

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even though both portfolios have a zero allocation to commodities.

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And that maybe is a springboard for maybe briefly explaining

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how that works.

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Thank you.

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The the simple explanation for that is by

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is that.

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In the old benchmark, we had to 2% allocation to the

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to the commodity benchmark.

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So if you look at the well let me walk you through this real quick.

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Here's the benchmark composition in the upper left hand corner.

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So for stocks

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we use the MSCI All Country World index.

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For bonds we use the Bloomberg Aggregate.

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There's an S&P global REIT index for real estate.

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And then that next one says S&P GSI.

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That's the commodity index that stands for S&P

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Global Goldman Sachs Commodity Index.

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And then the last one is a three month Tea Bell index for the cash.

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And remember the index idea of the index

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is to is the best quote I ever saw was

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it should represent the pond from which we are fishing for investments.

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So it represents

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the entire global

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public investment opportunity set.

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The next column you'll see is as of seven one of 26.

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We have a new benchmark that's in your most recently updated investment policy.

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It is very close to the old benchmark, just a tiny little change.

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But the old benchmark is a second column.

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And since that runs through June 30th.

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That's the one we're using here.

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So we're using a benchmark of 63% in a CIO country world index,

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29% bonds, 5% rights, 2%

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commodities GSI and 1% cash.

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Now to answer your question, the reason.

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It was beneficial is commodity

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or performance down.

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Dennis, I'm not sure we heard your complete sentence.

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I might.

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Could you repeat what you just said?

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My my apologies.

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Oh, sure.

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The reason it was beneficial

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to performance, to not own any commodities is because in the quarter.

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And this whole chart right here is for the one quarter,

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because during the quarter it would have reduced performance.

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It would have detracted from performance if we had owned commodities.

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So we picked up a little bit.

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So so the way that let's go over

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to the pension box, the way that the attribution report works,

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is there's a column for selection.

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And this is the effect on the performance

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for whether or not you had,

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you, you had investments in that, in that category.

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And, and

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did they the whole idea of selection, did

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your selections do better than the benchmark or worse.

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And so you can see what we do is for the top line there, the stocks we

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we take the return of your stocks minus the return of the benchmark.

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And you can see the selection,

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the selection attribution on that top line was minus 0.31.

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That means

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that means the benchmark did a little bit better

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than what we selected.

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The next column is waiting.

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And and that represents a did.

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If you were overweight in an investment that did really well,

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that would be beneficial.

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And so if you were under weighted in a,

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in an investment category that did very poorly, that would be beneficial.

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And then the opposite of those two would be a detraction.

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There's an interaction component.

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I'm not going to get into the math of that.

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But then there's a portfolio total.

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And that portfolio total is the stocks in your portfolio

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did a little bit below what the stocks in the benchmark did in total.

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So -0.23%.

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If you add up that column portfolio total

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it comes to 0.26 or 26 basis points.

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And then if you go down below under total portfolio

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return for the quarter, you'll see net return was 10.11%.

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For the portfolio.

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The benchmark was 9.85, the variance was 0.26.

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And so that box up there explains the variance.

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So good news is we outperformed the benchmark just a little bit.

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And then the box shows how.

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And to kind of some this up in plain language

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I put a little paragraph down below slight positive.

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And this applies to

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both portfolios by the way because they're managed almost identically.

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Slight

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positive variance in the quarter from both bonds I'm sorry.

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From bonds.

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Due to high yield exposure, the benchmark does not include high yield exposure.

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The portfolio does.

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So there's a little bit of a mismatch intentional mismatch.

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And it paid off in the quarter.

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Real estate did the real estate portfolio

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total number was was positive nine basis points.

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And global infrastructure we did a little better there.

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So that was additive stocks slightly underperformed.

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Performance of stocks was helped however by our allocation to small cap

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which is not in the index

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then.

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I mentioned in here large stocks were up 15%.

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Small stocks were up 21.

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So that's why it was beneficial to have some small stocks.

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Detracting from stock performance was our slight underweight to emerging markets.

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So the benchmark for stocks is the MSCI All Country World Index.

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I'm replicating that with several mutual funds one for US

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stocks, one for developed foreign stocks, one for emerging foreign stocks.

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And my my percentages are always a little off

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because it's very difficult to replicate that.

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Exactly.

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And so that explains

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why we're off the benchmark just a little bit.

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Nope.

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I think that's that's great.

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Dennis I just wanted to highlight your question.

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My question you've answered fully and I wanted to highlight it.

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Thank you very much.

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And I expect that we'll we'll have many more

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chances to interact with this in future quarters.

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So thanks again for working it through for us.

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Yeah. Any other questions?

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You're verification on the consent items in ball screen.

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Thank you.

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I was wondering, Jonathan, if you had a chance to look at my

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questions that I sent in regarding

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having the ones whose teen and OPEC

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have pretty much the same percentage in equities.

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So the I think that one of the questions that you had is,

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is there a shorter horizon for pension versus OPEC?

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In short, I don't think there's necessarily

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because you're looking from the perspective of a retiree.

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Right.

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Pensions kind of would be long term right.

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Same thing with OPEC.

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However what the the use of those pensions versus

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or how we were able to utilize a trust for the pension versus OPEC

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could be strategic or strategically different from the OPEC perspective.

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And I think you highlighted it is on a downturn of an economy.

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If the the pension didn't perform well and to maintain a

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in a desired

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level of funding status, we can draw on that pension

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and provide it to CalPERS to help pay

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for our unfunded accrued liability or UAL.

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Whereas with the OPEC, we can

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and this is conversations that I've been having with Tina.

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And a third party would be to assess our use it similarly.

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But as of today we're a bit over funded.

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So if we need to draw on it to assist

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with a budget constraints. Right.

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And so we can draw on that to help pay for our retiree benefits.

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And so you can use them similarly, but for different purposes.

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And there's different restrictions on both both in terms of reporting

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and our financials.

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And and but the method or the investment policies are essentially the same.

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We have the same investment strategies for both.

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Could you explain

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if there was a downturn and CalPERS

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wanted to raise our contribution to set.

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Is that what happens there?

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Helpers would have to it has to hit a certain

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threshold before they can assess whether they want to change their

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discount rate, which would then ultimately change how much

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this each agency would have to be contributing,

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because then in turn that also change your fund status.

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Right.

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And so but that that goes through a process

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that needs to go to their board, they need to approve it and whatnot.

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And then it gets kind of trickle down. And it's not immediate.

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Usually there's like a two year period in which it goes into effect.

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So it gives agencies enough time to to essentially shift a little bit

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and kind of understand

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how that adjustment to the discount rate will affect their funding status.

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Okay.

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And the other question I had was the $19 million jump

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in the general fund of what was going on there.

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There's actually I had Richard look into this for me.

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And I have some some data points here, but I'd like him to take a stab

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at this one first.

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We're going to the treasure report there.

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Yeah.

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Item three on the consent calendar.

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Richard. Hi.

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00:12:52,805 --> 00:12:54,600
Yeah. Hi, everyone.

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So OPEC had an increase in 2.6 million

226
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as far as from prior quarter and property tax.

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The balance there is a total of 7 million

228
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received in the fourth quarter.

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And that's a 1.2 million increase from Q3

230
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for sales tax.

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We had a balance of 7 million received

232
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in the fourth quarter, with a 1.1 million increase from Q3

233
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and the annual excess receipt

234
00:13:35,147 --> 00:13:38,617
came through in the fourth quarter.

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And that was for 1.3 million.

236
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And the last major receipt

237
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we had to make up to 19 million is PG and franchise fee,

238
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which is an annual receipt for 1.4 million.

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So, in short,

240
00:13:56,302 --> 00:13:58,302
there was about $40

241
00:13:59,438 --> 00:14:03,342
million in revenue that the city generated last quarter versus

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the $20 million just specifically for the general fund that IT expense.

243
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Now, kind of we're starting to accrue back because we're at year end.

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So some of those numbers are going to be

245
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shifting a little bit as we kind of move away.

246
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But from a cash perspective, we saw almost twice as much revenue

247
00:14:19,792 --> 00:14:23,395
for that one quarter versus expenditures is the short.

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So will that when it goes to the council.

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00:14:25,497 --> 00:14:29,368
Can that be added into the the report.

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00:14:29,368 --> 00:14:29,668
Okay.

251
00:14:29,668 --> 00:14:33,839
Well we'll just the report to to reflect that that additional detail.

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Great.

253
00:14:34,707 --> 00:14:39,678
And thank you for adding the Cal fit I think it's in the under consent.

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It is in the treasurer's at port.

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00:14:42,982 --> 00:14:45,382
Any other clarifying questions.

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Yeah.

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Being none.

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Are there any comments from the public?

259
00:14:53,525 --> 00:14:57,620
I see none in this room.

260
00:14:57,620 --> 00:15:02,268
Chair I see no requests to speak and we have no requests in person.

261
00:15:02,268 --> 00:15:02,768
Excellent.

262
00:15:02,768 --> 00:15:03,602
Thank you for that.

263
00:15:03,602 --> 00:15:07,802
So I would welcome a motion more.

264
00:15:08,941 --> 00:15:11,710
I moved the consent calendar.

265
00:15:11,710 --> 00:15:13,178
The second.

266
00:15:13,178 --> 00:15:13,646
Excellent.

267
00:15:13,646 --> 00:15:16,415
We got a second and we've got a motion.

268
00:15:16,415 --> 00:15:18,250
I'm not going to repeat that.

269
00:15:18,250 --> 00:15:21,850
Any further comments on the motion?

270
00:15:21,921 --> 00:15:24,757
I let's take vote. All in favor?

271
00:15:24,757 --> 00:15:29,595
I, I I unanimous of the three in the room.

272
00:15:29,595 --> 00:15:33,866
And thank you very much and chair for the record, in addition to council

273
00:15:33,866 --> 00:15:37,870
member Wong being absent, committee member Wong is also absent.

274
00:15:37,870 --> 00:15:41,400
Oh, yeah. Thank you for that.

275
00:15:41,400 --> 00:15:45,240
Okay, so moving on to new business.

276
00:15:45,244 --> 00:15:49,581
Our item for is an informational item received the fiscal Year

277
00:15:49,581 --> 00:15:52,581
20 2526 act for interim testing update.

278
00:15:54,186 --> 00:15:57,589
And I think we're going to go right

279
00:15:57,589 --> 00:16:01,794
to the pun group or introduced Richard will introduce.

280
00:16:01,794 --> 00:16:03,963
Thank you Richard Wong.

281
00:16:03,963 --> 00:16:04,596
Yeah. Hi.

282
00:16:04,596 --> 00:16:09,835
So we are in your four of our five year contract with our external auditors.

283
00:16:09,835 --> 00:16:13,305
The fund group or interim audit started in May.

284
00:16:13,305 --> 00:16:17,142
And Sophia here, the pun group's assurance partner,

285
00:16:17,142 --> 00:16:22,810
is here today to provide an update on our fiscal year 2526

286
00:16:22,810 --> 00:16:28,387
act for interim audit testing and to answer any questions you may have.

287
00:16:28,387 --> 00:16:28,821
Thank you.

288
00:16:28,821 --> 00:16:30,856
Welcome, Sophia. Thank you.

289
00:16:30,856 --> 00:16:31,824
Good evening.

290
00:16:31,824 --> 00:16:36,328
Committee chair and then committee members, and also the city's management.

291
00:16:36,328 --> 00:16:38,697
Again, this is Sophia from the group.

292
00:16:38,697 --> 00:16:41,200
I'm the engagement partner for the city's audit.

293
00:16:41,200 --> 00:16:44,403
And thank you for having me here today.

294
00:16:44,403 --> 00:16:47,539
So, like Richard mentioned, I would like to give an update

295
00:16:47,539 --> 00:16:51,143
on where we are at for fiscal year 2526 audit.

296
00:16:51,143 --> 00:16:55,280
So he also mentioned we started the interview work back in May.

297
00:16:55,280 --> 00:17:00,319
And with the focuses on the evaluating the city's internal control.

298
00:17:00,319 --> 00:17:06,319
So over the significant transaction cycles that includes financial reporting.

299
00:17:06,625 --> 00:17:09,795
So we evaluate the manual journal entry process banker

300
00:17:09,795 --> 00:17:13,399
consideration process and also the city's budget process as well.

301
00:17:13,399 --> 00:17:19,104
And also the revenue collection category C process procurement expenditures

302
00:17:19,104 --> 00:17:23,275
as well as payroll and then HR related functions.

303
00:17:23,275 --> 00:17:27,746
And again, we started the field work in late May,

304
00:17:27,746 --> 00:17:34,119
and then we completed the we substantially completed our interim field work around

305
00:17:34,119 --> 00:17:38,857
June time frame with no observations or findings to report.

306
00:17:38,857 --> 00:17:44,430
And I also would like to take this opportunity to briefly discuss

307
00:17:44,430 --> 00:17:47,633
the new Gatsby pronouncements that would be effective

308
00:17:47,633 --> 00:17:51,136
for fiscal year 2526, and it will be impacting

309
00:17:51,136 --> 00:17:55,641
the financial statements that will be presented to you in November.

310
00:17:55,641 --> 00:18:01,447
And the first one is Gatsby 103 Financial Reporting Model improvements.

311
00:18:01,447 --> 00:18:07,186
And the second one is guess we want for disclosure of certain capital assets.

312
00:18:07,186 --> 00:18:10,422
So we have been working with the city's management

313
00:18:10,422 --> 00:18:14,526
to determine the impact of these two Gatsby pronouncements.

314
00:18:14,526 --> 00:18:18,697
The Gatsby 103 is a relatively higher than gas 104.

315
00:18:18,697 --> 00:18:22,297
So the biggest changes, impacts on

316
00:18:22,468 --> 00:18:26,472
or on the mDNA management discussion and analysis.

317
00:18:26,472 --> 00:18:31,376
So because of the change, the city's management will need to rewrite

318
00:18:31,376 --> 00:18:37,683
and reorganize the mDNA with only five components required by the standard.

319
00:18:37,683 --> 00:18:39,751
So component number one is.

320
00:18:39,751 --> 00:18:42,121
Overview of the financial statements

321
00:18:42,121 --> 00:18:46,391
show how the financial statements flow through from fund statement to government.

322
00:18:46,391 --> 00:18:49,862
Why and also the note disclosure and request commentary

323
00:18:49,862 --> 00:18:53,866
information, supplementary information, how the financial statement look like.

324
00:18:53,866 --> 00:18:58,300
And the second component is the financial statement summaries.

325
00:18:58,300 --> 00:19:02,407
The third one is the detailed analysis of

326
00:19:02,407 --> 00:19:03,642
the transaction happened

327
00:19:03,642 --> 00:19:06,879
during the year, with a focus on the current year operations.

328
00:19:06,879 --> 00:19:11,283
Instead of only focusing on the dollar amount or percentage changes.

329
00:19:11,283 --> 00:19:16,822
The fourth component is the significant capital assets and long term financing

330
00:19:16,822 --> 00:19:21,793
activities, and the fifth one is the currently known facts.

331
00:19:21,793 --> 00:19:27,199
The session and long term and conditions such as the new labor negotiation,

332
00:19:27,199 --> 00:19:32,638
if any, and also the maybe potential pension discount rate changes.

333
00:19:32,638 --> 00:19:36,875
If that happens, it also needs to be discussed in the MDMA

334
00:19:36,875 --> 00:19:39,875
and other than MDMA changes.

335
00:19:39,878 --> 00:19:43,715
Another two significant changes from this pronouncements.

336
00:19:43,715 --> 00:19:44,917
The first one.

337
00:19:44,917 --> 00:19:48,554
Another one is the proprietary fund operating and non-operating

338
00:19:48,554 --> 00:19:52,391
revenue expenses classification to present the statement

339
00:19:52,391 --> 00:19:57,162
of revenue, expenses and changes in fund balance properly.

340
00:19:57,162 --> 00:19:59,932
And another one is adding.

341
00:19:59,932 --> 00:20:04,303
Adding a column on the budgetary comparison schedule

342
00:20:04,303 --> 00:20:07,303
include including the variances between

343
00:20:08,400 --> 00:20:11,640
original and final budget, and another.

344
00:20:12,678 --> 00:20:17,115
Another change on the budgetary comparison special schedule

345
00:20:17,115 --> 00:20:20,686
is to provide notes with the significant variances

346
00:20:20,686 --> 00:20:23,188
on the original budget and the final budget,

347
00:20:23,188 --> 00:20:26,558
and also the final budget and then the final result.

348
00:20:26,558 --> 00:20:31,563
So to provide explanations why why those significant variances happen

349
00:20:31,563 --> 00:20:35,634
during the year in terms of Gatsby 104,

350
00:20:35,634 --> 00:20:40,672
the anticipated impact of Gatsby 104 on the city's financial statements

351
00:20:40,672 --> 00:20:44,243
is expected to be minimal, but we will continue

352
00:20:44,243 --> 00:20:47,946
to evaluate the implementation and then to determine

353
00:20:47,946 --> 00:20:52,551
whether any potential impacts as part of our end the process.

354
00:20:52,551 --> 00:20:55,621
So overall, we remain on track

355
00:20:55,621 --> 00:21:00,325
to begin our year end fieldwork in late September,

356
00:21:00,325 --> 00:21:04,963
which is consistent with our schedule in prior years.

357
00:21:04,963 --> 00:21:08,867
Assuming that we receive the trial balance and also all the requested

358
00:21:08,867 --> 00:21:13,605
audit documentation as planned, and there are no significant issue

359
00:21:13,605 --> 00:21:17,843
during the audit, we anticipate to provide a draft

360
00:21:17,843 --> 00:21:23,582
of the effort to the Committee for review due in the second half of November,

361
00:21:23,582 --> 00:21:27,190
and so that we can meet and present

362
00:21:27,190 --> 00:21:30,190
in late November, early December,

363
00:21:30,880 --> 00:21:33,880
depending on everybody's availability.

364
00:21:33,158 --> 00:21:38,263
And this will conclude my update for fiscal year 2526.

365
00:21:38,263 --> 00:21:38,897
Audit.

366
00:21:38,897 --> 00:21:42,768
I will be happy to answer any questions that you may have.

367
00:21:42,768 --> 00:21:43,235
Thank you.

368
00:21:43,235 --> 00:21:50,435
So let me ask the committee any anyone have a clarifying question?

369
00:21:50,842 --> 00:21:51,843
I always have some.

370
00:21:51,843 --> 00:21:54,646
But you guys get to go first.

371
00:21:54,646 --> 00:21:58,283
Okay I'm curious with what they mean by.

372
00:21:58,283 --> 00:22:02,321
And is it Gatsby 103 or 104 that wants to

373
00:22:02,321 --> 00:22:06,591
have information about the original and final budget changes?

374
00:22:06,591 --> 00:22:11,396
So which one is it and what does that actually mean?

375
00:22:11,396 --> 00:22:15,100
So the original schedule, we we I mean,

376
00:22:15,100 --> 00:22:19,738
the original schedule shows the original adopted budget and final budget.

377
00:22:19,738 --> 00:22:23,308
And they there is a column for variance column.

378
00:22:23,308 --> 00:22:27,946
Compare the final budget to the final result.

379
00:22:27,946 --> 00:22:33,318
And then because of this new change, we need to add additional column

380
00:22:33,318 --> 00:22:37,255
to show the variance from the original budget to the final budget.

381
00:22:37,255 --> 00:22:38,156
During the year,

382
00:22:38,156 --> 00:22:42,661
the city might have budget amendments and the year budget adjustments.

383
00:22:42,661 --> 00:22:45,297
So this is a new requirement.

384
00:22:45,297 --> 00:22:48,300
There is additional column need to be added to calculate

385
00:22:48,300 --> 00:22:53,700
the difference between the original budget and final budget.

386
00:22:54,606 --> 00:22:56,410
So it's not on the financial.

387
00:22:56,410 --> 00:22:59,641
It's also on the presentation.

388
00:22:59,845 --> 00:23:02,180
As I remember the MDA had quite a bit

389
00:23:02,180 --> 00:23:06,752
on those changes anyways, didn't it Jonathan.

390
00:23:06,752 --> 00:23:10,188
So this doesn't really maybe the city was providing

391
00:23:10,188 --> 00:23:15,160
additional information that was was above the minimal requirements.

392
00:23:15,160 --> 00:23:19,960
No, the MDA had various components that well,

393
00:23:20,499 --> 00:23:25,437
historically was kind of followed a very somewhat rigid structure.

394
00:23:25,437 --> 00:23:28,340
And so every year we would have to at least meet

395
00:23:28,340 --> 00:23:32,511
those requirements at least to present it to give away and ensure that it's

396
00:23:32,511 --> 00:23:37,820
to get the certificate of excellence or achievement.

397
00:23:37,820 --> 00:23:40,682
So there as, as they stated.

398
00:23:41,286 --> 00:23:46,191
So there's quite a bit of a difference as to how rigid the structure was to

399
00:23:46,191 --> 00:23:47,559
what it's going to be now.

400
00:23:47,559 --> 00:23:49,428
And there's just more

401
00:23:49,428 --> 00:23:53,298
there's going to be more analysis rather than just telling a story.

402
00:23:53,298 --> 00:23:55,801
Right. That's what we're there really want to.

403
00:23:55,801 --> 00:23:58,904
Instead of saying these number changed from 10

404
00:23:58,904 --> 00:24:02,674
to 15 million, look, well why why did it change.

405
00:24:02,674 --> 00:24:05,977
And so that questions is going to be kind of further.

406
00:24:05,977 --> 00:24:08,547
Why did something happen and why did that happen.

407
00:24:08,547 --> 00:24:12,417
So the MDA is more of a storytelling

408
00:24:12,417 --> 00:24:17,189
as to rather than kind of just strictly this number went to this number.

409
00:24:17,189 --> 00:24:21,860
And so it's going to be quite a change from prior year.

410
00:24:21,860 --> 00:24:26,798
So that's going to be a work in progress between here and in November

411
00:24:26,798 --> 00:24:28,200
as far as kind of several

412
00:24:28,200 --> 00:24:32,537
different iterations and kind of back and forth between staff and the auditors

413
00:24:32,537 --> 00:24:37,676
to make sure that we're meeting the requirements as outlined by Geoffroy

414
00:24:37,676 --> 00:24:40,760
or gasp, follow along.

415
00:24:40,178 --> 00:24:45,884
So with that, include if you had like a change in revenue,

416
00:24:45,884 --> 00:24:46,618
the two top two.

417
00:24:46,618 --> 00:24:48,618
Explain that. Certainly.

418
00:24:49,154 --> 00:24:49,421
Right.

419
00:24:49,421 --> 00:24:51,421
Like fully.

420
00:24:53,425 --> 00:24:57,462
So obviously it would be major changes.

421
00:24:57,462 --> 00:25:00,465
I mean, if it's probably like a 10% change

422
00:25:00,465 --> 00:25:03,602
for revenue, that's quite a change from year over year.

423
00:25:03,602 --> 00:25:07,380
Now we I'm not sure to what extent do

424
00:25:07,380 --> 00:25:11,420
we include budget to actuals in that situation.

425
00:25:11,420 --> 00:25:15,480
But because that's as we know now, one of the biggest variants

426
00:25:15,480 --> 00:25:18,783
is that we're going to see next year or last year is going to be sales taxes.

427
00:25:18,783 --> 00:25:19,217
Right.

428
00:25:19,217 --> 00:25:22,220
And I think kind of going into the detail, even though we don't

429
00:25:22,220 --> 00:25:26,424
want to keep bringing up a it's still a kind of

430
00:25:26,424 --> 00:25:30,562
we're seeing some of the, the how that's affected the city.

431
00:25:30,562 --> 00:25:34,599
And it will continue to affect the city until we've kind of normalized it.

432
00:25:34,599 --> 00:25:39,337
And it might take a couple more years before we see that.

433
00:25:39,337 --> 00:25:41,337
But Sophia, can

434
00:25:41,339 --> 00:25:46,945
you please answer which Gadsby pronouncement would require the city

435
00:25:46,945 --> 00:25:52,717
to include the variance column in the budget to actuals or budget to.

436
00:25:52,717 --> 00:25:55,320
This is Gatsby one of the financial

437
00:25:55,320 --> 00:25:57,320
reporting model improvements?

438
00:25:58,423 --> 00:26:01,226
Vice mayor, you've got questions.

439
00:26:01,226 --> 00:26:04,826
So this item has no attachment.

440
00:26:06,631 --> 00:26:07,650
Right.

441
00:26:07,650 --> 00:26:10,101
And you mentioned the the presentation.

442
00:26:10,101 --> 00:26:13,701
So if that available it's

443
00:26:14,105 --> 00:26:18,376
just a verbal presentation or an update to the audit committee.

444
00:26:18,376 --> 00:26:23,582
It's usually no written because it's a lottery formation.

445
00:26:23,582 --> 00:26:29,287
I it would be nice to have a written update.

446
00:26:29,287 --> 00:26:32,887
And because I can remember all

447
00:26:33,124 --> 00:26:33,959
everything.

448
00:26:33,959 --> 00:26:36,328
And then a very basic question.

449
00:26:36,328 --> 00:26:41,128
So this update is a testing update for.

450
00:26:42,567 --> 00:26:44,567
For internal control.

451
00:26:45,737 --> 00:26:49,937
What exactly you are doing for testing.

452
00:26:52,243 --> 00:26:53,778
So during

453
00:26:53,778 --> 00:26:56,881
interim field work that's the like

454
00:26:56,881 --> 00:27:00,619
I mentioned earlier, it's our internal control evaluation phase.

455
00:27:00,619 --> 00:27:02,621
So it's based on risk assessment.

456
00:27:02,621 --> 00:27:05,621
We identify significant transaction cycles.

457
00:27:05,757 --> 00:27:08,793
And like so we evaluate the financial

458
00:27:08,793 --> 00:27:12,430
reporting process that including how the city process bank

459
00:27:12,430 --> 00:27:17,102
or conciliation and also how the city process cash receipts

460
00:27:17,102 --> 00:27:20,805
and also the payroll, how it was done and

461
00:27:20,805 --> 00:27:24,109
and also how the procurement was executed in all the way

462
00:27:24,109 --> 00:27:28,713
to the invoice process and ultimately the cash the check cleared.

463
00:27:28,713 --> 00:27:30,148
So that's the that's

464
00:27:30,148 --> 00:27:34,219
that's what we call internal control and intern field interim field work.

465
00:27:34,219 --> 00:27:35,687
So that's what we test.

466
00:27:35,687 --> 00:27:40,592
We pick some or we got we got we

467
00:27:40,592 --> 00:27:41,960
we got our population.

468
00:27:41,960 --> 00:27:44,796
And then we pick samples and we and then we work with the city

469
00:27:44,796 --> 00:27:48,433
to get the support to complete our testing.

470
00:27:48,433 --> 00:27:50,433
Okay.

471
00:27:50,902 --> 00:27:51,636
Okay.

472
00:27:51,636 --> 00:27:56,207
My question is we've had a change in finance directors.

473
00:27:56,207 --> 00:28:01,680
And congratulations to our new one who's sitting in the room here, Jonathan.

474
00:28:01,680 --> 00:28:06,351
But I want to ask you, it's been a smooth transition, I presume.

475
00:28:06,351 --> 00:28:10,121
Or you would have highlighted some some whatever

476
00:28:10,121 --> 00:28:13,558
non smooth elements would have arisen.

477
00:28:13,558 --> 00:28:17,562
I think we have, I have I personally have been working with

478
00:28:17,562 --> 00:28:22,000
Jonathan since we started this contract and then the first year,

479
00:28:22,000 --> 00:28:26,370
the first year because changing of new auditors and then

480
00:28:26,370 --> 00:28:30,141
and of course and then there were some hiccup and then so the first year

481
00:28:30,141 --> 00:28:33,311
it took a little bit longer than what we anticipated.

482
00:28:33,311 --> 00:28:37,215
And then after after the first year, the second year went through is mostly

483
00:28:37,215 --> 00:28:41,219
and I think even even with the transition and also

484
00:28:41,219 --> 00:28:45,256
the change happened at the city are entering really, really smoothly.

485
00:28:45,256 --> 00:28:47,625
That's why I can I can be here today to present.

486
00:28:47,625 --> 00:28:50,128
And then there was really no fighting and no observations

487
00:28:50,128 --> 00:28:53,980
from our internal internal control evaluation phase.

488
00:28:53,980 --> 00:28:56,980
Great. Thank you. All right.

489
00:28:56,234 --> 00:28:59,700
I don't see any comments from the public in the room.

490
00:28:59,700 --> 00:29:01,500
Are there any virtual.

491
00:29:01,500 --> 00:29:02,874
No thank you.

492
00:29:02,874 --> 00:29:03,408
All right.

493
00:29:03,408 --> 00:29:06,945
Why don't we move to a motion?

494
00:29:06,945 --> 00:29:08,179
We don't actually have a motion.

495
00:29:08,179 --> 00:29:11,549
I think this is an inclination item, so we'll accept it as an information.

496
00:29:11,549 --> 00:29:12,751
I thank you so for.

497
00:29:12,751 --> 00:29:15,120
And good luck on the rest of your work.

498
00:29:15,120 --> 00:29:19,524
We'll see you in November. Thank you.

499
00:29:19,524 --> 00:29:22,227
So on to item five on our agenda.

500
00:29:22,227 --> 00:29:28,990
Also an informational item and a number of internal audit ones.

501
00:29:28,990 --> 00:29:29,567
Here we're going to have in sequence.

502
00:29:29,567 --> 00:29:32,937
This one is to receive the internal audit and the fraud waste

503
00:29:32,937 --> 00:29:35,937
and abuse programs update. And

504
00:29:36,741 --> 00:29:38,743
I guess Baker Tilly is going to go right in.

505
00:29:38,743 --> 00:29:41,346
Or do we have a staff comment?

506
00:29:41,346 --> 00:29:43,915
I think they can take that out. Great.

507
00:29:43,915 --> 00:29:45,183
All right.

508
00:29:45,183 --> 00:29:47,619
Wonderful. Well, I will get us started.

509
00:29:47,619 --> 00:29:52,524
Great news looking at the grant management internal control review.

510
00:29:52,524 --> 00:29:54,859
This is going to be presented to you all today.

511
00:29:54,859 --> 00:29:58,396
This was the last item for fiscal year 2425.

512
00:29:58,396 --> 00:29:59,898
And that has been finalized.

513
00:29:59,898 --> 00:30:01,833
So really good news there.

514
00:30:01,833 --> 00:30:07,172
So then looking at fiscal year 2526 internal audit program

515
00:30:07,172 --> 00:30:11,242
the investment cash flow policy review recommendation.

516
00:30:11,242 --> 00:30:15,914
So this is still going back and forth with city management.

517
00:30:15,914 --> 00:30:19,717
I hope to have an update with you all in October on that one.

518
00:30:19,717 --> 00:30:24,550
And then the citywide internal control review, this one.

519
00:30:24,550 --> 00:30:27,525
We have been really busy at work, lots of different requests

520
00:30:27,525 --> 00:30:31,429
going back and forth, but I do believe that we will have a report

521
00:30:31,429 --> 00:30:35,900
to provide you all in the October time frame for that.

522
00:30:35,900 --> 00:30:39,204
Of course, there is that ongoing internal audit services.

523
00:30:39,204 --> 00:30:40,638
That's what we do.

524
00:30:40,638 --> 00:30:46,544
Why I'm here today and also involves our fraud, waste and abuse hotline.

525
00:30:46,544 --> 00:30:50,882
So going on to page number two, you will see that there were

526
00:30:50,882 --> 00:30:55,286
no no complaints that were received this this time frame.

527
00:30:55,286 --> 00:31:00,580
But we do have those eight open reports.

528
00:31:00,580 --> 00:31:04,596
So I do want to say that those are still under the city attorney's review.

529
00:31:04,596 --> 00:31:09,300
But I have met with the city attorney as well as the city manager,

530
00:31:09,300 --> 00:31:13,471
and I think that there's going to be some new verbiage in the city

531
00:31:13,471 --> 00:31:15,740
fraud and abuse policy that they're reviewing,

532
00:31:15,740 --> 00:31:20,144
so that hopefully these are going to be closed soon.

533
00:31:20,144 --> 00:31:21,713
Any questions before I move

534
00:31:21,713 --> 00:31:24,713
on to the validation report?

535
00:31:25,783 --> 00:31:27,752
I guess as a question,

536
00:31:27,752 --> 00:31:32,257
it would be helpful for me if we could title

537
00:31:32,257 --> 00:31:36,527
the second page fraud, Waste and Abuse report.

538
00:31:36,527 --> 00:31:37,228
Okay.

539
00:31:37,228 --> 00:31:40,899
And I don't know if that's inconvenient or whatever,

540
00:31:40,899 --> 00:31:44,669
but a lot of these get posted on the website and it's not

541
00:31:44,669 --> 00:31:48,339
maybe intuitive to people that aren't familiar with this,

542
00:31:48,339 --> 00:31:52,677
that this is representing that we can easily get that fixed.

543
00:31:52,677 --> 00:31:53,978
Thank you.

544
00:31:53,978 --> 00:31:54,679
All right.

545
00:31:54,679 --> 00:31:56,948
Any questions before moving on to the validation

546
00:31:56,948 --> 00:32:00,551
report piece of our ongoing internal audit services.

547
00:32:00,551 --> 00:32:02,487
Looks like we're good. Perfect.

548
00:32:02,487 --> 00:32:07,287
If you could bring up actually the PowerPoint.

549
00:32:08,993 --> 00:32:13,631
What what you'll find is there were no validation

550
00:32:13,631 --> 00:32:17,402
or recommendations that we validated this quarter.

551
00:32:17,402 --> 00:32:21,390
And so I thought it would be a good reminder to, you know,

552
00:32:21,390 --> 00:32:27,639
why we're doing this process and really what this serves.

553
00:32:40,992 --> 00:32:42,992
All right.

554
00:32:44,280 --> 00:32:44,495
Perfect.

555
00:32:44,495 --> 00:32:48,299
So going on to the second page, really what is this program.

556
00:32:48,299 --> 00:32:52,337
And the thing that we involve the ongoing internal audit services.

557
00:32:52,337 --> 00:32:56,240
So this is a crucial step in the audit process because

558
00:32:56,240 --> 00:32:59,243
believe it or not, it breaks my heart to say this.

559
00:32:59,243 --> 00:33:02,347
But sometimes reports are put on the wayside with management.

560
00:33:02,347 --> 00:33:04,949
Right. So they get reports, they get recommendations.

561
00:33:04,949 --> 00:33:07,118
And nothing comes out of this recommendations.

562
00:33:07,118 --> 00:33:10,989
So this is a really great mechanism and tool for the city

563
00:33:10,989 --> 00:33:15,426
to make sure that they're held accountable for making sure that they're effectively

564
00:33:15,426 --> 00:33:20,398
implementing those corrective actions in the identified audit issues.

565
00:33:20,398 --> 00:33:23,100
So what are we doing during this time?

566
00:33:23,100 --> 00:33:26,400
We're always reviewing documentation and evidence provided

567
00:33:26,400 --> 00:33:29,574
by the city to help remediate those recommendations.

568
00:33:29,574 --> 00:33:36,114
We will talk to relevant stakeholders for clarification, any confirmation needed.

569
00:33:36,114 --> 00:33:39,784
And we really assess what steps the city has taken

570
00:33:39,784 --> 00:33:43,588
to make sure that they have made those recommendations.

571
00:33:43,588 --> 00:33:47,258
And so once again, why do we do this?

572
00:33:47,258 --> 00:33:49,600
Why is this a healthy practice?

573
00:33:49,600 --> 00:33:52,630
It helps improve corrective actions, making sure everyone's accountable

574
00:33:52,630 --> 00:33:53,698
and really supports

575
00:33:53,698 --> 00:33:58,360
that continuous improvement that the city is always looking for.

576
00:33:58,360 --> 00:34:00,360
So next slide.

577
00:34:01,205 --> 00:34:06,500
So back in fiscal year 2526 we had 79 recommendations.

578
00:34:08,790 --> 00:34:14,118
We have validated 54 recommendations in our time here with the city.

579
00:34:14,118 --> 00:34:18,220
And there are still 25 that were open.

580
00:34:18,220 --> 00:34:22,827
This is really important though because when talking to the city,

581
00:34:22,827 --> 00:34:28,299
right before, we were going to provide this information to

582
00:34:28,299 --> 00:34:31,636
for this audit committee, there are 16 open

583
00:34:31,636 --> 00:34:35,940
recommendations that the city says that they have completed in July.

584
00:34:35,940 --> 00:34:40,178
So I am really hopeful that next quarter,

585
00:34:40,178 --> 00:34:42,380
I'm going to have a lot to report in this area.

586
00:34:42,380 --> 00:34:46,884
So 16 recommendations, I mean, then we'll only have nine left

587
00:34:46,884 --> 00:34:50,540
for this, this entire thing, which is great.

588
00:34:50,540 --> 00:34:56,270
So next slide, this this kind of shows you those 25 open areas.

589
00:34:56,270 --> 00:35:03,827
And like I mentioned we will have 16 remedied hopefully by the next quarter.

590
00:35:04,535 --> 00:35:06,935
Any questions on that.

591
00:35:07,672 --> 00:35:09,640
Any questions.

592
00:35:09,640 --> 00:35:11,640
Comments. Great.

593
00:35:11,742 --> 00:35:12,643
Yeah I'm excited.

594
00:35:12,643 --> 00:35:16,481
I do have a question in terms of the

595
00:35:16,481 --> 00:35:19,717
the the it's great news that the 16

596
00:35:19,717 --> 00:35:23,870
that's unexpected from my side.

597
00:35:23,870 --> 00:35:30,361
There's there's been some that are went back to 2022 or not.

598
00:35:30,361 --> 00:35:34,966
My my question is I wonder if the 16 is going to address

599
00:35:34,966 --> 00:35:39,937
all the really old ones or if it doesn't, if staff could work with you to

600
00:35:39,937 --> 00:35:43,841
maybe figure out a footnote that would indicate

601
00:35:43,841 --> 00:35:49,313
that maybe later in 2027, the really old ones, if there are any

602
00:35:49,313 --> 00:35:53,885
that aren't covered by the 16 when they might get addressed.

603
00:35:53,885 --> 00:35:56,821
And I think if you look at that last slide, and I'm sorry

604
00:35:56,821 --> 00:36:00,591
to keep on doing that to you, Janet, but that last I just show

605
00:36:00,591 --> 00:36:02,560
so staff did want to take that consideration.

606
00:36:02,560 --> 00:36:05,363
I think that was something that you had mentioned last time.

607
00:36:05,363 --> 00:36:06,898
And so the staff,

608
00:36:06,898 --> 00:36:11,102
what they have shown you is the expected completion date by quarter.

609
00:36:11,102 --> 00:36:13,838
So they're saying that by this did look new to me.

610
00:36:13,838 --> 00:36:15,139
Yes. Yes.

611
00:36:15,139 --> 00:36:20,344
So this will this kind of helps illustrate when those findings will be remedied.

612
00:36:20,344 --> 00:36:21,145
So let's.

613
00:36:21,145 --> 00:36:23,681
So if you could help me then dive a little deeper.

614
00:36:23,681 --> 00:36:28,419
For example on this other detail report, there was four.

615
00:36:28,419 --> 00:36:32,857
Well I don't want to go into the details, but there were five that were in 2022.

616
00:36:32,857 --> 00:36:38,229
How would we use this report to see whether those are in the

617
00:36:38,229 --> 00:36:41,229
16 or remain to be those?

618
00:36:41,465 --> 00:36:45,403
You don't see that here, but as Chelsea was saying,

619
00:36:45,403 --> 00:36:49,207
we can probably for about an updated report that kind of dials

620
00:36:49,207 --> 00:36:53,678
in any outstanding of the nine potential ones that are still outstanding

621
00:36:53,678 --> 00:36:57,480
what what period they, they're, they relate to.

622
00:36:57,480 --> 00:37:02,353
And so you would see essentially this and with the that specific recommendation.

623
00:37:02,353 --> 00:37:03,821
Fantastic. Yeah.

624
00:37:03,821 --> 00:37:07,592
I think next time when an update is provided,

625
00:37:07,592 --> 00:37:12,563
it will be great to have the list that's already verified

626
00:37:12,563 --> 00:37:17,501
and especially the list that's open, because I don't know where

627
00:37:17,501 --> 00:37:22,573
to start to even ask, because I don't know what these recommendations are.

628
00:37:22,573 --> 00:37:25,176
And and also I do wonder

629
00:37:25,176 --> 00:37:29,647
when we do a report, we do a recommendation

630
00:37:29,647 --> 00:37:31,616
and we start to implement.

631
00:37:31,616 --> 00:37:35,953
A lot of times we find out there might be adjustment

632
00:37:35,953 --> 00:37:38,953
needed for for those recommendations.

633
00:37:39,724 --> 00:37:43,324
So do you do those kind

634
00:37:43,861 --> 00:37:48,432
of reevaluation in the middle of the implementation?

635
00:37:48,432 --> 00:37:49,467
That's a great question.

636
00:37:49,467 --> 00:37:53,604
So obviously processes things change right from a recommendation

637
00:37:53,604 --> 00:37:55,206
from fiscal year 22.

638
00:37:55,206 --> 00:37:58,109
So absolutely we're going to take that into consideration.

639
00:37:58,109 --> 00:38:01,579
And I do believe Colleen please feel free to jump in here.

640
00:38:01,579 --> 00:38:02,880
But I do believe that, you know,

641
00:38:02,880 --> 00:38:06,350
sometimes a recommendation might no longer be valid.

642
00:38:06,350 --> 00:38:07,385
And in that case,

643
00:38:07,385 --> 00:38:11,220
that is something that we would just remove from the listing at that time.

644
00:38:11,220 --> 00:38:11,789
Yeah. Correct.

645
00:38:11,789 --> 00:38:15,326
A great example is if the city reorganizes

646
00:38:15,326 --> 00:38:19,430
a recommendation related to a process or a responsibility might not be relevant.

647
00:38:19,430 --> 00:38:23,701
So then we would close that and we would call it administrative closure.

648
00:38:23,701 --> 00:38:27,672
But it would it would come off of the list for you all and it would be closed.

649
00:38:27,672 --> 00:38:30,941
We wouldn't just close things kind of, hey, it's been too long.

650
00:38:30,941 --> 00:38:31,575
Let's close it.

651
00:38:31,575 --> 00:38:34,679
We want to work with the city on the appropriate answer,

652
00:38:34,679 --> 00:38:38,820
but we definitely do take those things into consideration.

653
00:38:38,820 --> 00:38:42,119
Ideally, everything is implementable and practical because we work

654
00:38:42,119 --> 00:38:46,857
with staff on the front end, but things do come up over time.

655
00:38:46,857 --> 00:38:47,191
Yeah.

656
00:38:47,191 --> 00:38:52,363
So if there could be a list of validated recommendation,

657
00:38:52,363 --> 00:38:55,766
but what do we have done for each of them?

658
00:38:55,766 --> 00:38:57,668
That would be nice.

659
00:38:57,668 --> 00:39:01,672
You're talking about column C column C.

660
00:39:01,672 --> 00:39:03,607
Could you expand a bit on

661
00:39:03,607 --> 00:39:06,977
I what your your suggestion is.

662
00:39:06,977 --> 00:39:07,478
Sorry.

663
00:39:07,478 --> 00:39:13,184
Like the recommendation of doing something and then maybe a comment

664
00:39:13,184 --> 00:39:18,155
on what you have verified on the city have implemented. Yes.

665
00:39:18,155 --> 00:39:22,590
So when, when we will have those we do.

666
00:39:22,590 --> 00:39:25,796
And so so you know this quarter there wasn't any recommendations

667
00:39:25,796 --> 00:39:27,231
that had been validated.

668
00:39:27,231 --> 00:39:30,801
When this report is presented, when there are recommendations

669
00:39:30,801 --> 00:39:34,438
validated they talk about what what had happened.

670
00:39:34,438 --> 00:39:36,741
So what what was validated.

671
00:39:36,741 --> 00:39:40,244
What were we able to validate

672
00:39:40,244 --> 00:39:41,450
at that time.

673
00:39:41,450 --> 00:39:46,951
So you mean if I look into a previous audit meeting, right.

674
00:39:46,951 --> 00:39:48,552
That will be there.

675
00:39:48,552 --> 00:39:49,320
Correct.

676
00:39:49,320 --> 00:39:51,210
It'll talk about what

677
00:39:51,210 --> 00:39:55,993
what what the actual recommendation was that we were able to validate my being.

678
00:39:55,993 --> 00:39:56,627
Okay.

679
00:39:56,627 --> 00:40:00,970
Might be nice if there is a cross-reference

680
00:40:00,970 --> 00:40:04,435
like the last time the Valley, the recommendation

681
00:40:04,435 --> 00:40:09,600
was at reported in the audit committee on that date.

682
00:40:09,600 --> 00:40:13,770
That way people can look for it if they want to.

683
00:40:13,770 --> 00:40:14,378
Okay.

684
00:40:14,378 --> 00:40:17,248
And then it would be nice

685
00:40:17,248 --> 00:40:21,352
for the oak to have a list of the open recommendations.

686
00:40:21,352 --> 00:40:23,352
Yeah.

687
00:40:30,895 --> 00:40:31,595
May we

688
00:40:31,595 --> 00:40:35,966
have that report that the PowerPoint that you just shared?

689
00:40:35,966 --> 00:40:37,701
I don't see it online.

690
00:40:37,701 --> 00:40:40,704
Also, is there a landing page?

691
00:40:40,704 --> 00:40:43,607
Would I find it under budgets to.

692
00:40:43,607 --> 00:40:45,676
I remember that there used to be

693
00:40:45,676 --> 00:40:49,547
the collection of all the Moss Adams Baker Tilly reports.

694
00:40:49,547 --> 00:40:53,350
They were all together on some web page, but I know that we've reworked

695
00:40:53,350 --> 00:40:55,350
the website, so

696
00:40:56,387 --> 00:41:00,570
I don't know how to pull that up and see some of them.

697
00:41:00,570 --> 00:41:00,524
Before.

698
00:41:00,524 --> 00:41:04,280
We had our commissioner mayor meeting a couple of weeks ago.

699
00:41:04,280 --> 00:41:06,664
So there is an internal audit section.

700
00:41:06,664 --> 00:41:08,599
I'm not sure it's been completely updated.

701
00:41:08,599 --> 00:41:11,802
So it's a great comment, mayor, how to get to that.

702
00:41:11,802 --> 00:41:15,473
Maybe not all internal audit reports are posted there

703
00:41:15,473 --> 00:41:21,312
because there been a number in 2026, and maybe there have been some reorganization.

704
00:41:21,312 --> 00:41:21,512
Yeah.

705
00:41:21,512 --> 00:41:24,148
If you go down below the audit plan there, there

706
00:41:24,148 --> 00:41:26,784
and then the final reports, I think we might.

707
00:41:26,784 --> 00:41:30,387
How do I get to that. No.

708
00:41:30,387 --> 00:41:30,721
Yeah.

709
00:41:30,721 --> 00:41:34,925
Usually the I will just mine didn't it didn't take you to it.

710
00:41:34,925 --> 00:41:36,594
Go and click on finance.

711
00:41:36,594 --> 00:41:37,928
Go to financial reports.

712
00:41:37,928 --> 00:41:43,670
And then there's an internal audit subsection okay.

713
00:41:43,670 --> 00:41:45,736
So if I landed on the main page

714
00:41:45,736 --> 00:41:52,243
I'm starting on the main page of the website city

715
00:41:52,243 --> 00:41:54,243
okay.

716
00:41:54,945 --> 00:41:56,945
Then under finance

717
00:41:58,480 --> 00:41:59,617
there city.

718
00:41:59,617 --> 00:42:02,753
So if I just do a search on the city

719
00:42:02,753 --> 00:42:07,570
home page for internal audit, I don't get that.

720
00:42:07,570 --> 00:42:11,562
I get a bunch of yeah, sometimes search isn't the greatest.

721
00:42:11,562 --> 00:42:15,566
So if you go to your yes, if you go to your city. Yes.

722
00:42:15,566 --> 00:42:19,690
And then under departments you scroll down, you go to finance.

723
00:42:19,690 --> 00:42:22,720
Couple more down there, we go down.

724
00:42:22,720 --> 00:42:25,420
And then if you click a couple more over

725
00:42:25,420 --> 00:42:27,177
there, there we are.

726
00:42:27,177 --> 00:42:27,778
Okay.

727
00:42:27,778 --> 00:42:34,184
So I was wanting to see the Baker Tilly report with all of these recommendations.

728
00:42:34,184 --> 00:42:38,622
There was one that you had several maybe 30, 30 pages long.

729
00:42:38,622 --> 00:42:41,425
And it was a it was a

730
00:42:41,425 --> 00:42:44,962
all in a table, really small thought.

731
00:42:44,962 --> 00:42:47,765
It's the blocks of recommendation.

732
00:42:47,765 --> 00:42:53,337
I think it's the one that it would have all of these recommendations on it.

733
00:42:53,337 --> 00:42:56,340
This one had a vast majority of them.

734
00:42:56,340 --> 00:42:58,142
Yeah. This is a monster. Eat.

735
00:42:58,142 --> 00:42:59,276
This is the era.

736
00:42:59,276 --> 00:43:02,246
So I'm thinking that you're you're wanting

737
00:43:02,246 --> 00:43:04,246
all the recommendations.

738
00:43:05,150 --> 00:43:06,383
Pauline, do you know if we have

739
00:43:06,383 --> 00:43:10,220
I don't know if we've provided a report with all the recommendations.

740
00:43:10,220 --> 00:43:14,525
We keep track of them, you know, in our own database,

741
00:43:14,525 --> 00:43:15,859
but we don't have a report

742
00:43:15,859 --> 00:43:20,640
that we've provided the city with all those recommendations altogether.

743
00:43:20,640 --> 00:43:20,397
Okay.

744
00:43:20,397 --> 00:43:23,867
So so for instance, is I was looking, wanting to know

745
00:43:23,867 --> 00:43:28,670
what the for old civil grand Jury

746
00:43:28,906 --> 00:43:32,506
2022 recommendations are because I'm curious

747
00:43:33,430 --> 00:43:36,513
if some of them have been just already fixed.

748
00:43:36,513 --> 00:43:39,483
And it's been like four years

749
00:43:39,483 --> 00:43:43,721
since that report came out and the people of all changed.

750
00:43:43,721 --> 00:43:48,959
So I don't know where, like where can I find it,

751
00:43:48,959 --> 00:43:51,362
but what the recommendations were

752
00:43:51,362 --> 00:43:55,833
that may not have been part of the internal audit reports.

753
00:43:55,833 --> 00:44:00,237
Is there a separate we tell you so at that time?

754
00:44:00,237 --> 00:44:03,340
If so, for instance, if there were six findings

755
00:44:03,340 --> 00:44:07,878
and two had been resolved at that time, we would tell you

756
00:44:07,878 --> 00:44:11,115
that there was two resolved, but we wouldn't tell you the four

757
00:44:11,115 --> 00:44:13,517
that would be open. So. Right. Colleen.

758
00:44:13,517 --> 00:44:15,517
Right. This

759
00:44:15,519 --> 00:44:19,230
honestly, that's is a it's a staff function to close the findings

760
00:44:19,230 --> 00:44:23,327
and we track whether the the recommendations have been implemented.

761
00:44:23,327 --> 00:44:25,262
So I think it will be up to staff

762
00:44:25,262 --> 00:44:28,832
how much detail they would want to provide to you.

763
00:44:28,832 --> 00:44:34,705
For example, the budget process review that we did once those findings, once

764
00:44:34,705 --> 00:44:37,908
we have said they're validated, you could look at that entire report

765
00:44:37,908 --> 00:44:41,979
and say, this is closed, but we can work with staff to provide

766
00:44:41,979 --> 00:44:45,416
a little bit more detail in our presentation about what's remaining,

767
00:44:45,416 --> 00:44:49,787
and it will be up to staff whether they might want to keep a master

768
00:44:49,787 --> 00:44:53,757
log available to the public of the audit findings.

769
00:44:53,757 --> 00:44:56,860
We show you in the report, kind of a high level,

770
00:44:56,860 --> 00:45:01,310
because it would be a very, very long report with a lot of detail to have

771
00:45:01,310 --> 00:45:07,271
the language of each recommendation provided and to keep that log over time.

772
00:45:07,271 --> 00:45:10,908
So trying to get higher level for the committee.

773
00:45:10,908 --> 00:45:12,242
Well, as a council

774
00:45:12,242 --> 00:45:16,580
member, and we have members of the public who are not always supportive

775
00:45:16,580 --> 00:45:22,580
of the council, that having that for items back from 2022

776
00:45:22,720 --> 00:45:26,920
on this report could be used by

777
00:45:26,990 --> 00:45:30,227
someone to come up to a council meeting and say, look,

778
00:45:30,227 --> 00:45:34,398
there's four things that still haven't been taken care of from 2022.

779
00:45:34,398 --> 00:45:37,668
And, and we'll we will know nothing about what

780
00:45:37,668 --> 00:45:40,938
these four items are, which make us look really bad.

781
00:45:40,938 --> 00:45:44,410
So I would like to be able

782
00:45:44,410 --> 00:45:47,410
to kind of risk management

783
00:45:48,378 --> 00:45:50,778
that that potential situation.

784
00:45:52,182 --> 00:45:59,323
You can we've seen it before where these reports have been misused to abuse people.

785
00:45:59,323 --> 00:46:02,923
So yeah that's completely understandable.

786
00:46:03,260 --> 00:46:04,194
So we'll work with staff

787
00:46:04,194 --> 00:46:08,432
on the format and content so that you have some more detail

788
00:46:08,432 --> 00:46:12,402
without it being an overwhelming amount of paperwork

789
00:46:12,402 --> 00:46:15,906
that then the city's got to print out and publish every quarter.

790
00:46:15,906 --> 00:46:17,908
Yeah, yeah. And it's been it was.

791
00:46:17,908 --> 00:46:22,379
So I'm really glad to see the language talking about the process improvement

792
00:46:22,379 --> 00:46:24,148
here. And I think that's really important.

793
00:46:24,148 --> 00:46:25,549
And we've turned around

794
00:46:25,549 --> 00:46:30,220
a good number of, of, of the residents to view this as a positive.

795
00:46:30,220 --> 00:46:33,423
And, but it has been used to both

796
00:46:33,423 --> 00:46:36,560
insult the council and insult staff at times.

797
00:46:36,560 --> 00:46:40,197
And so we want to get everybody on the same page

798
00:46:40,197 --> 00:46:45,536
for the positive results that this is having on the city,

799
00:46:45,536 --> 00:46:48,839
and try to limit those opportunities

800
00:46:48,839 --> 00:46:51,839
for it to be mischaracterized.

801
00:46:54,311 --> 00:46:56,311
So. So

802
00:46:56,446 --> 00:46:59,446
originally there were 79 recommendations, right?

803
00:47:00,350 --> 00:47:00,717
Correct.

804
00:47:00,717 --> 00:47:05,222
So is there a document that I'm assuming that's a document

805
00:47:05,222 --> 00:47:09,422
the council has approved with the 79 recommendations?

806
00:47:09,626 --> 00:47:13,630
That would be every report that we issue

807
00:47:13,630 --> 00:47:16,330
adds to the denominator of the recommendation.

808
00:47:16,330 --> 00:47:18,936
So it's not a static number 79.

809
00:47:18,936 --> 00:47:23,640
We probably started with fewer than 79 when we began the validation process.

810
00:47:23,640 --> 00:47:26,400
And every every report

811
00:47:26,677 --> 00:47:30,800
that is completed then adds additional recommendations.

812
00:47:30,800 --> 00:47:34,484
So we validate and the percentage the number will change over time.

813
00:47:34,484 --> 00:47:36,887
You'll keep updating the rates.

814
00:47:36,887 --> 00:47:41,258
Oh, that's why it's hard to find one document that has all.

815
00:47:41,258 --> 00:47:46,763
So for example, after the grant or grant management is presented to all

816
00:47:46,763 --> 00:47:49,666
then we would add those to the list.

817
00:47:49,666 --> 00:47:50,968
Does that make sense.

818
00:47:50,968 --> 00:47:51,835
Oh I see.

819
00:47:51,835 --> 00:47:54,137
So you'll probably see it at the very bottom

820
00:47:54,137 --> 00:47:57,708
under under special revenue Fund progress process review.

821
00:47:57,708 --> 00:48:01,908
You'll see another line 2026 grant management.

822
00:48:02,746 --> 00:48:04,470
So it's not there yet.

823
00:48:04,470 --> 00:48:07,417
But maybe in the next quarter you'll see that with the

824
00:48:07,417 --> 00:48:10,721
x number of number of recommendations.

825
00:48:10,721 --> 00:48:12,623
Oh I see okay.

826
00:48:12,623 --> 00:48:14,570
This is a very helpful report.

827
00:48:14,570 --> 00:48:17,361
Let me reemphasize because it includes not only internal audit.

828
00:48:17,361 --> 00:48:20,764
It includes other recommendations for example

829
00:48:20,764 --> 00:48:25,564
from the external auditor as I understand it.

830
00:48:26,503 --> 00:48:28,939
So the special revenue fund process

831
00:48:28,939 --> 00:48:33,577
or a single audit maybe the single audit is an example.

832
00:48:33,577 --> 00:48:37,781
So this one, I believe it's still a function of the internal audit.

833
00:48:37,781 --> 00:48:39,917
All these reports were provided by.

834
00:48:39,917 --> 00:48:41,518
Okay. So I misunderstood that.

835
00:48:41,518 --> 00:48:46,123
I thought this was there was a comprehensive report I get from you guys.

836
00:48:46,123 --> 00:48:50,260
I thought that's got all the recommendations that you're tracking.

837
00:48:50,260 --> 00:48:52,796
So it's only internal audit.

838
00:48:52,796 --> 00:48:53,830
That's not correct.

839
00:48:53,830 --> 00:48:56,466
This includes two grand jury reports

840
00:48:56,466 --> 00:49:00,737
as well as a single audit finding that the city received in 2022.

841
00:49:00,737 --> 00:49:04,474
So the single audit would be the external correct previous auditors.

842
00:49:04,474 --> 00:49:07,440
And then the grand jury, of course, is the grand jury.

843
00:49:07,440 --> 00:49:10,347
So that's what I thought this was a more comprehensive document.

844
00:49:10,347 --> 00:49:11,882
Not that, you know, internal.

845
00:49:11,882 --> 00:49:14,885
It's going to come up with most of the recommendations we would expect.

846
00:49:14,885 --> 00:49:19,456
But so so what's the basis of capturing a recommendation

847
00:49:19,456 --> 00:49:23,600
then since we've got three different sources right now,

848
00:49:23,600 --> 00:49:25,295
it makes sense to me to have external audit.

849
00:49:25,295 --> 00:49:28,398
Internal audit I guess I wouldn't have expected

850
00:49:28,398 --> 00:49:31,902
a grand jury anyways, but so that's fine, I get it.

851
00:49:31,902 --> 00:49:35,720
Is there are there any other sources that that you'd guys typically

852
00:49:35,720 --> 00:49:40,344
look at when you go into a municipal situation or.

853
00:49:40,344 --> 00:49:41,440
Sure, it's

854
00:49:41,440 --> 00:49:44,781
great for us as a committee, this is great for us to see what's out there.

855
00:49:44,781 --> 00:49:45,782
What's being looked at?

856
00:49:45,782 --> 00:49:49,786
I think it's it's maybe we're not giving it as much credit as it deserves.

857
00:49:49,786 --> 00:49:51,221
It's quite, quite a nice thing

858
00:49:51,221 --> 00:49:55,258
to close the loop, so to speak, which I really like this report.

859
00:49:55,258 --> 00:49:58,428
But any others calling that come to mind are we?

860
00:49:58,428 --> 00:50:01,631
Is that the typical source of everything?

861
00:50:01,631 --> 00:50:02,799
This is pretty typical.

862
00:50:02,799 --> 00:50:04,801
This was a management decision at the time.

863
00:50:04,801 --> 00:50:07,201
We established this program

864
00:50:08,138 --> 00:50:12,175
to go back and include the grand jury reports.

865
00:50:12,175 --> 00:50:15,145
We would typically include internal and external audit.

866
00:50:15,145 --> 00:50:20,150
And if the city were to receive findings from another auditor, for example, HUD

867
00:50:20,150 --> 00:50:25,255
or or another federal agency that came in, you could include those two.

868
00:50:25,255 --> 00:50:30,460
Just for transparency sake, there was a decision made to include the grand jury.

869
00:50:30,460 --> 00:50:34,664
I would say our clients are kind of 50 over 50 on whether they include

870
00:50:34,664 --> 00:50:38,735
grand jury findings or not in this, but it does daylight,

871
00:50:38,735 --> 00:50:44,274
whether the city is making movement on recommendations from external bodies.

872
00:50:44,274 --> 00:50:47,644
And that's what the committee chose at the time.

873
00:50:47,644 --> 00:50:50,914
And there was that reminds me that wasn't there a finding

874
00:50:50,914 --> 00:50:55,385
in one of the grants during the Covid era that

875
00:50:55,385 --> 00:51:00,991
so that was a special report from the external auditors, probably.

876
00:51:00,991 --> 00:51:03,760
I think I do believe that 2022 single.

877
00:51:03,760 --> 00:51:05,595
So that second to the bottom.

878
00:51:05,595 --> 00:51:08,498
Okay. Okay. Yeah. Great. Okay. Yeah.

879
00:51:08,498 --> 00:51:12,936
But I still yeah I think it's nice to include a grand jury,

880
00:51:12,936 --> 00:51:17,140
but we had another civil grand jury report this year.

881
00:51:17,140 --> 00:51:20,140
So would that be added?

882
00:51:20,744 --> 00:51:24,347
I'm curious, but then I do think that we

883
00:51:24,347 --> 00:51:29,119
we should have a document with all the 79 recommendations.

884
00:51:29,119 --> 00:51:32,719
Even if they are being adjusted.

885
00:51:32,823 --> 00:51:38,228
But I assume you do have that list somewhere, right?

886
00:51:38,228 --> 00:51:38,528
Yeah.

887
00:51:38,528 --> 00:51:42,320
We can work with management like we'll have we'll have an update.

888
00:51:42,320 --> 00:51:46,690
I wonder maybe you could enter auditors could work with city staff

889
00:51:46,690 --> 00:51:49,673
and come back with maybe a suggestion on how to handle it,

890
00:51:49,673 --> 00:51:53,477
because there seems like there's a potential for a lot of material.

891
00:51:53,477 --> 00:51:56,379
And we want to make sure we're getting maybe a summary report,

892
00:51:56,379 --> 00:51:58,882
and then we can go into detail when we see something.

893
00:51:58,882 --> 00:52:02,986
And you've also raised the issue with maybe the public has a different interest

894
00:52:02,986 --> 00:52:04,688
than this committee.

895
00:52:04,688 --> 00:52:08,425
So possibly one solution to address what you're talking about

896
00:52:08,425 --> 00:52:12,629
is you guys could come up with a proposal for us next,

897
00:52:12,629 --> 00:52:17,968
next quarter in conjunction with this report to say how you would handle

898
00:52:17,968 --> 00:52:21,338
or I'm just throwing it out because as a committee,

899
00:52:21,338 --> 00:52:25,876
we may or maybe it doesn't have to be one.

900
00:52:25,876 --> 00:52:27,544
Just to clarify, it doesn't.

901
00:52:27,544 --> 00:52:31,515
You don't have to create a whole new document for this.

902
00:52:31,515 --> 00:52:34,818
Just that would be nice to have a list of 79.

903
00:52:34,818 --> 00:52:37,354
And then maybe it's five different documents

904
00:52:37,354 --> 00:52:41,858
and then just say, okay, if each one is from which document,

905
00:52:41,858 --> 00:52:46,830
then at least there is a place people can look for information.

906
00:52:46,830 --> 00:52:48,598
That's good enough.

907
00:52:48,598 --> 00:52:52,702
Mayor, you have thank you for mentioning the civil.

908
00:52:52,702 --> 00:52:58,241
And so this year we had three Cupertino named in three.

909
00:52:58,241 --> 00:53:02,112
So the first was with regards to remote

910
00:53:02,112 --> 00:53:04,512
teleconferencing convenience versus compliance.

911
00:53:05,248 --> 00:53:10,480
We had a VTA one and then potholes.

912
00:53:10,887 --> 00:53:13,156
So unfortunately we've got three more to add

913
00:53:13,156 --> 00:53:15,225
and we've been working on the first one.

914
00:53:15,225 --> 00:53:17,360
We're we're working on all three.

915
00:53:17,360 --> 00:53:20,497
The first one is really in process,

916
00:53:20,497 --> 00:53:26,497
and we'll ultimately get into our council procedures manual.

917
00:53:27,904 --> 00:53:31,740
We'll have to have a discussion about that probably in November

918
00:53:31,740 --> 00:53:34,740
to make some adjustments there,

919
00:53:34,444 --> 00:53:36,780
but I guess it would get added

920
00:53:36,780 --> 00:53:39,780
on to your reports list.

921
00:53:40,116 --> 00:53:40,884
Perhaps.

922
00:53:40,884 --> 00:53:43,987
Maybe it comes back to my question of clarification,

923
00:53:43,987 --> 00:53:47,424
which was, can we maybe have a little text on the bottom

924
00:53:47,424 --> 00:53:52,229
that says reports, what is the universe of total recommendations?

925
00:53:52,229 --> 00:53:56,233
And it comes from, I guess we're saying the past

926
00:53:56,233 --> 00:53:59,233
the decision was civil juries,

927
00:53:59,269 --> 00:54:02,869
internal audit recommendations, external audit recommendations.

928
00:54:03,440 --> 00:54:06,476
And that way everybody knows those are city staff.

929
00:54:06,476 --> 00:54:10,280
Then when internal audit may not be aware of everything, city

930
00:54:10,280 --> 00:54:15,680
staff would have a triggering process to identify these.

931
00:54:16,686 --> 00:54:18,588
I'm not thinking of a very

932
00:54:18,588 --> 00:54:22,626
extensive, but some kind of note on here that I never thought of would be helpful.

933
00:54:22,626 --> 00:54:26,290
I didn't realize there was a decision made in prior years, for example.

934
00:54:26,290 --> 00:54:29,990
So that's helpful to to know that we're continuing the work

935
00:54:29,990 --> 00:54:32,402
of prior committees that we can build on.

936
00:54:32,402 --> 00:54:32,702
Okay.

937
00:54:32,702 --> 00:54:36,273
I think we should move on from this item probably if we can.

938
00:54:36,273 --> 00:54:41,478
Any other burning questions or we got our stuff addressed

939
00:54:41,478 --> 00:54:43,480
so we could vote to

940
00:54:43,480 --> 00:54:47,517
or to recommend that we no longer include the civil

941
00:54:47,517 --> 00:54:51,288
grand juries here because that's being handled at a council level.

942
00:54:51,288 --> 00:54:55,425
And then it's kind of duplicative if we're analyzing

943
00:54:55,425 --> 00:54:59,496
and having a consultant analyze the same civil grand jury,

944
00:54:59,496 --> 00:55:02,966
let's see if there's any comments from the public.

945
00:55:02,966 --> 00:55:05,535
And then we can maybe go to a motion.

946
00:55:05,535 --> 00:55:09,139
Even though this is an informational item

947
00:55:09,139 --> 00:55:11,608
chair, I see no request to speak.

948
00:55:11,608 --> 00:55:12,309
Fantastic.

949
00:55:12,309 --> 00:55:16,780
I'm thinking, you know, maybe we could talk some more and have a motion.

950
00:55:16,780 --> 00:55:18,481
Or we can.

951
00:55:18,481 --> 00:55:23,887
Whatever you take direction from, it sounds like a great idea to,

952
00:55:23,887 --> 00:55:27,457
you know, address what we're going to include on this, reaffirm

953
00:55:27,457 --> 00:55:29,559
what's been in here in the past or remove.

954
00:55:29,559 --> 00:55:32,629
So it could be a nice time to do that.

955
00:55:32,629 --> 00:55:36,800
City staff have any comments on your opinion?

956
00:55:36,800 --> 00:55:40,303
Ultimately this is a report that goes to the audit committee.

957
00:55:40,303 --> 00:55:45,709
So if you all want to remove or include additional by including,

958
00:55:45,709 --> 00:55:48,945
maybe it's the external audit findings if there are any.

959
00:55:48,945 --> 00:55:51,948
So which I think would be more relevant right.

960
00:55:51,948 --> 00:55:54,284
For this body. Right.

961
00:55:54,284 --> 00:55:56,186
We can certainly do that.

962
00:55:56,186 --> 00:55:59,823
Yeah, I can see lots of other committees or institutions

963
00:55:59,823 --> 00:56:01,157
that maybe make complaints.

964
00:56:01,157 --> 00:56:04,561
So I don't know that this is appropriate for us necessarily.

965
00:56:04,561 --> 00:56:06,296
Colleen, do you have some experience?

966
00:56:06,296 --> 00:56:09,599
And you said some cities do add civil jury comments.

967
00:56:09,599 --> 00:56:13,636
So is that widespread, do you think anecdotally or.

968
00:56:13,636 --> 00:56:16,206
It really depends on how

969
00:56:16,206 --> 00:56:19,242
how grand jury complaints are handled.

970
00:56:19,242 --> 00:56:22,879
I would agree with the mayor's comment that because these are handled

971
00:56:22,879 --> 00:56:25,882
at the council level, it is a little bit redundant.

972
00:56:25,882 --> 00:56:29,319
It just depends on how you all want to handle it.

973
00:56:29,319 --> 00:56:33,923
But typically the council says here's how we plan to respond.

974
00:56:33,923 --> 00:56:38,194
Management implements comes back to council and says we responded this way

975
00:56:38,194 --> 00:56:43,166
and then we would validate at the same time.

976
00:56:43,166 --> 00:56:43,833
Right.

977
00:56:43,833 --> 00:56:46,269
So I'm getting rid of redundancy.

978
00:56:46,269 --> 00:56:51,700
I'm all in favor of I mean I don't vice mayor,

979
00:56:51,700 --> 00:56:56,479
I don't think we had control over what was being done at that time.

980
00:56:56,479 --> 00:56:58,479
I think all.

981
00:56:58,648 --> 00:56:59,150
Oh yeah.

982
00:56:59,150 --> 00:57:04,821
And it was used as a tool that I really I didn't

983
00:57:04,821 --> 00:57:09,592
I really didn't think it's bad to include the civil grand jury

984
00:57:09,592 --> 00:57:14,297
because it's nice to see oh four was invented and for still open.

985
00:57:14,297 --> 00:57:16,866
I'm curious what still open.

986
00:57:16,866 --> 00:57:21,704
But on the other hand, not all the recommendation from grand

987
00:57:21,704 --> 00:57:26,504
jury has to do with audit or finance.

988
00:57:26,943 --> 00:57:27,310
Right.

989
00:57:27,310 --> 00:57:30,914
For so does it make sense to include recommendations

990
00:57:30,914 --> 00:57:34,117
that may not have to do with findings?

991
00:57:34,117 --> 00:57:37,120
And also a lot of times

992
00:57:37,120 --> 00:57:40,457
not a lot of that be some 50%.

993
00:57:40,457 --> 00:57:44,270
I think of the recommendations we disagree with.

994
00:57:44,270 --> 00:57:48,431
So it doesn't mean they because the grand jury, civil grand jury

995
00:57:48,431 --> 00:57:52,168
consists of people who have never been elected official.

996
00:57:52,168 --> 00:57:56,739
They make recommendations, but then they don't even know how city works.

997
00:57:56,739 --> 00:58:00,939
And so I don't think there.

998
00:58:01,277 --> 00:58:04,277
Is always a good recommendation.

999
00:58:05,982 --> 00:58:12,455
So I don't know if these eight are those eight that's reasonable

1000
00:58:12,455 --> 00:58:15,455
that we have accepted or

1001
00:58:15,925 --> 00:58:19,195
that's directly from the grand jury.

1002
00:58:19,195 --> 00:58:23,166
So that's what be my concern with

1003
00:58:23,166 --> 00:58:25,566
taking an external recommendation

1004
00:58:26,269 --> 00:58:28,669
without our own validation,

1005
00:58:30,730 --> 00:58:34,430
whether those recommendations are suitable for corporate.

1006
00:58:34,430 --> 00:58:37,460
You know, I think that goes to my observation.

1007
00:58:37,460 --> 00:58:38,548
It's typically these kinds of reports

1008
00:58:38,548 --> 00:58:42,719
or stuff this committee has input or control over.

1009
00:58:42,719 --> 00:58:47,190
And so internal audit reports into both the city Council

1010
00:58:47,190 --> 00:58:50,527
and the audit committee is the way that structured.

1011
00:58:50,527 --> 00:58:53,960
And in the same way basically for the external auditors.

1012
00:58:53,960 --> 00:58:56,299
So it makes perfect sense to me that this committee would have

1013
00:58:56,299 --> 00:59:00,737
input on the reports coming back to the committee,

1014
00:59:00,737 --> 00:59:05,740
whereas we have no real direction with the.

1015
00:59:05,740 --> 00:59:09,178
I could see where the city attorney has input, I would hope or expect

1016
00:59:09,178 --> 00:59:13,820
on these kinds of things, but that we would we would get input from

1017
00:59:13,820 --> 00:59:17,200
either the external auditors saying this is a significant enough issue.

1018
00:59:17,200 --> 00:59:19,956
It shows up in the Akbar, and you guys could be aware of it,

1019
00:59:19,956 --> 00:59:25,395
or we see it in the footnote or internal auditor does a project

1020
00:59:25,395 --> 00:59:28,310
and then brings it up for us, but separately.

1021
00:59:28,310 --> 00:59:34,300
I mean there's we could probably imagine other organizations that have comments

1022
00:59:34,300 --> 00:59:34,871
maybe coming

1023
00:59:34,871 --> 00:59:38,700
to the city that we have no real

1024
00:59:38,700 --> 00:59:42,445
it doesn't seem to fit within our purview, but I can see where it could.

1025
00:59:42,445 --> 00:59:43,446
We extend it in.

1026
00:59:43,446 --> 00:59:45,582
City Council says, why don't you watch over it?

1027
00:59:45,582 --> 00:59:50,486
So I'm happy to have a motion that clarifies what we think this is.

1028
00:59:50,486 --> 00:59:54,324
We can either do it through city staff consulting with maybe the city attorney

1029
00:59:54,324 --> 00:59:57,560
can get involved or whatever you think, or we can

1030
00:59:57,560 --> 01:00:01,464
we can take a vote here and just say, let's let's stick it with internal audit

1031
01:00:01,464 --> 01:00:04,100
and external auditors, which are reporting directly

1032
01:00:04,100 --> 01:00:07,236
to this committee and other groups that don't.

1033
01:00:07,236 --> 01:00:07,637
Okay.

1034
01:00:07,637 --> 01:00:12,108
So I'll make a motion that we remove

1035
01:00:12,108 --> 01:00:16,308
civil grand jury recommendations from this report.

1036
01:00:16,679 --> 01:00:20,483
And then if there is any financial

1037
01:00:20,483 --> 01:00:24,830
related issue that's recommended from,

1038
01:00:24,988 --> 01:00:28,591
we will rely on, I think this council,

1039
01:00:28,591 --> 01:00:35,164
the city manager or city attorney will can refer them to the internal auditor,

1040
01:00:35,164 --> 01:00:40,236
who can then recommend an appropriate way to integrate those

1041
01:00:40,236 --> 01:00:42,372
into the city's.

1042
01:00:42,372 --> 01:00:44,372
Process

1043
01:00:46,342 --> 01:00:48,342
more. Second. Yeah.

1044
01:00:48,444 --> 01:00:53,116
And I like here I don't want to talk about issues here and the council.

1045
01:00:53,116 --> 01:00:57,186
I don't want to talk about VTA here and council

1046
01:00:57,186 --> 01:01:00,523
or even the council procedures manual or not to go through that.

1047
01:01:00,523 --> 01:01:02,859
It's very redundant.

1048
01:01:02,859 --> 01:01:06,950
People can come to the council meeting and make their input there rather

1049
01:01:06,950 --> 01:01:09,332
than taking a more precious time of it, so I agree.

1050
01:01:09,332 --> 01:01:09,832
Yeah.

1051
01:01:09,832 --> 01:01:14,804
Well, maybe like show me the money, maybe that item is relevant to this committee,

1052
01:01:14,804 --> 01:01:20,443
and then I'm sure that the staff will bring that to the committee.

1053
01:01:20,443 --> 01:01:23,460
And together with Baker City.

1054
01:01:23,460 --> 01:01:24,180
Yeah.

1055
01:01:24,180 --> 01:01:26,315
My input on this might be first.

1056
01:01:26,315 --> 01:01:30,753
I can ask again the city staff or I think the city manager's office

1057
01:01:30,753 --> 01:01:33,956
is represented in our committee here as well.

1058
01:01:33,956 --> 01:01:38,561
But again, to me it's what does this committee have authority over?

1059
01:01:38,561 --> 01:01:41,831
And I'm happy to take responsibility for, for things.

1060
01:01:41,831 --> 01:01:45,802
But I didn't realize this was a decision maybe that had been in scope

1061
01:01:45,802 --> 01:01:48,802
a number of years ago.

1062
01:01:50,390 --> 01:01:52,141
I personally, all the things you said, I'm

1063
01:01:52,141 --> 01:01:55,445
not sure we can rely on the city staff bringing us issues.

1064
01:01:55,445 --> 01:01:59,749
I think that's part of the nice loop being closed here.

1065
01:01:59,749 --> 01:02:02,685
There's a formal report given by the external auditors

1066
01:02:02,685 --> 01:02:04,821
or internal auditors, and they have recommendations.

1067
01:02:04,821 --> 01:02:07,724
And we're going to go soon to a new item that's got a series of them.

1068
01:02:07,724 --> 01:02:09,826
And then they get on this report and then they're either

1069
01:02:09,826 --> 01:02:13,196
addressed, city staff either agrees with them or they don't.

1070
01:02:13,196 --> 01:02:14,970
And then at some point

1071
01:02:14,970 --> 01:02:18,401
there's a resolution, whereas things we don't have control over it.

1072
01:02:18,401 --> 01:02:20,703
I don't see how this loop gets closed easily.

1073
01:02:20,703 --> 01:02:27,110
Only be we simplify the motion to just say we remove the grand jury report.

1074
01:02:27,110 --> 01:02:31,581
I love city Council wants to put it back in our view or something.

1075
01:02:31,581 --> 01:02:33,616
They can pick and choose and direct items.

1076
01:02:33,616 --> 01:02:36,552
So you're withdrawing your first your main motion.

1077
01:02:36,552 --> 01:02:38,988
This is the new motion.

1078
01:02:38,988 --> 01:02:43,793
The new motion that we remove civil grand jury

1079
01:02:43,793 --> 01:02:47,393
recommendations from the audio recommendation report.

1080
01:02:48,431 --> 01:02:51,100
More tracking report. Yeah okay.

1081
01:02:51,100 --> 01:02:56,405
And then we've got a motion and we can discuss it.

1082
01:02:56,405 --> 01:03:02,145
Now again I'd like to clarify that that motion is because we're clarifying

1083
01:03:02,145 --> 01:03:06,816
what this audit committee has purview over as we understand it.

1084
01:03:06,816 --> 01:03:07,383
Okay.

1085
01:03:07,383 --> 01:03:13,856
So can I amend the motion to say that we are removing civil grand jury

1086
01:03:13,856 --> 01:03:17,660
recommendations from the audit recommendation tracking report

1087
01:03:17,660 --> 01:03:22,231
because it's not in the preview of this committee?

1088
01:03:22,231 --> 01:03:24,967
Yeah, it's closer to what I, what

1089
01:03:24,967 --> 01:03:28,337
I also would you like the political the motion.

1090
01:03:28,337 --> 01:03:30,506
I'm just looking at

1091
01:03:30,506 --> 01:03:31,474
the moment.

1092
01:03:31,474 --> 01:03:33,643
Well maybe I always throw my motion.

1093
01:03:33,643 --> 01:03:34,877
You can.

1094
01:03:34,877 --> 01:03:37,113
No no no no no no, that's not what I mean.

1095
01:03:37,113 --> 01:03:41,751
I think just simply lying on the fact that, like, if there was a report like,

1096
01:03:41,751 --> 01:03:45,922
show me the money that the council if while we're talking about it,

1097
01:03:45,922 --> 01:03:50,126
we could direct staff to bring this to the audit committee if we felt

1098
01:03:50,126 --> 01:03:55,832
that the audit committee had some input, that that would be helpful.

1099
01:03:55,832 --> 01:03:57,200
Yeah.

1100
01:03:57,200 --> 01:04:00,937
Something is, but that does not need to be part of the it's

1101
01:04:00,937 --> 01:04:04,400
just what the council is willing to do.

1102
01:04:04,400 --> 01:04:05,208
Yeah.

1103
01:04:05,208 --> 01:04:07,243
So it's a motion clear.

1104
01:04:07,243 --> 01:04:08,578
I do believe it's clear.

1105
01:04:08,578 --> 01:04:12,348
It's just just to add a bit to it

1106
01:04:12,348 --> 01:04:14,750
in its later on our agenda

1107
01:04:14,750 --> 01:04:17,787
is the internal audit work program.

1108
01:04:17,787 --> 01:04:21,924
Seeing that that is going to council in September, maybe that's the opportunity

1109
01:04:21,924 --> 01:04:25,828
council can take to add a civil grand jury

1110
01:04:25,828 --> 01:04:30,433
report to the validation as a follow up or as a work program

1111
01:04:30,433 --> 01:04:35,204
item to ensure that that that one that it's been seen through.

1112
01:04:35,204 --> 01:04:40,420
So if there is a civil grand jury report like show me the money, right.

1113
01:04:40,420 --> 01:04:41,110
It's maybe it's

1114
01:04:41,110 --> 01:04:45,548
within the purview of this body to review and make sure that it's been addressed.

1115
01:04:45,548 --> 01:04:49,685
And maybe the council can make that decision at the time

1116
01:04:49,685 --> 01:04:54,485
when we take the work program for consideration.

1117
01:04:55,191 --> 01:04:55,591
Okay.

1118
01:04:55,591 --> 01:04:56,659
But we can still

1119
01:04:56,659 --> 01:05:00,696
be making that recommendation to the council about this at this time.

1120
01:05:00,696 --> 01:05:01,797
Yeah. Okay.

1121
01:05:01,797 --> 01:05:03,320
Well, I think we can remove it

1122
01:05:03,320 --> 01:05:05,935
if we choose from this report, but doesn't want to if we get.

1123
01:05:05,935 --> 01:05:07,603
No, I'm just saying for future. Right.

1124
01:05:07,603 --> 01:05:12,141
If you let's say we remove them now from all future reports,

1125
01:05:12,141 --> 01:05:16,746
if there is a future civil grandeur report that you want

1126
01:05:16,746 --> 01:05:20,883
Baker, Tilly or internal auditors to ensure that it's been validated,

1127
01:05:20,883 --> 01:05:21,751
we can include it

1128
01:05:21,751 --> 01:05:26,455
as part of that validation process or during that, the annual review of our.

1129
01:05:26,455 --> 01:05:29,725
You mean have that emerged at this level?

1130
01:05:29,725 --> 01:05:31,527
You're saying?

1131
01:05:31,527 --> 01:05:36,980
I would say probably from the direction from council down.

1132
01:05:36,980 --> 01:05:39,168
So that is the same as what I was.

1133
01:05:39,168 --> 01:05:40,937
Okay, okay.

1134
01:05:40,937 --> 01:05:43,306
Where am I at? I guess we've got a motion.

1135
01:05:43,306 --> 01:05:49,306
You may I clarify that accepted the child committed motion.

1136
01:05:49,378 --> 01:05:50,513
Can you read it back?

1137
01:05:50,513 --> 01:05:53,382
Amendment is purview of the.

1138
01:05:53,382 --> 01:05:56,919
Because it is not within the purview of the audit committee.

1139
01:05:56,919 --> 01:06:01,223
I wasn't sure if it's not a committee

1140
01:06:01,223 --> 01:06:03,223
recommendation tracking report

1141
01:06:03,459 --> 01:06:06,862
because it's not in the purview of the committee.

1142
01:06:06,862 --> 01:06:08,965
It may not be

1143
01:06:08,965 --> 01:06:12,268
then if it wasn't, then why have you been doing it?

1144
01:06:12,268 --> 01:06:14,470
If it wasn't in our purview while we were doing it?

1145
01:06:14,470 --> 01:06:19,870
So I would I would question if that was.

1146
01:06:20,343 --> 01:06:23,512
And it seems to be more of an observational statement

1147
01:06:23,512 --> 01:06:25,912
rather than the motion.

1148
01:06:26,282 --> 01:06:28,517
I mean, the reason for the motion.

1149
01:06:28,517 --> 01:06:29,652
Yeah. Yeah.

1150
01:06:29,652 --> 01:06:31,870
And I'm not entirely sure

1151
01:06:31,870 --> 01:06:33,856
because it's been our practice that we've been doing this.

1152
01:06:33,856 --> 01:06:35,524
Why are we now saying that?

1153
01:06:35,524 --> 01:06:36,250
It's not

1154
01:06:36,250 --> 01:06:42,164
I think it's important to include that in a motion for chairs recommendation.

1155
01:06:42,164 --> 01:06:47,300
That was clarify is not within the purview of the committee

1156
01:06:47,300 --> 01:06:50,606
before I heard the mayor's comment, which makes perfect sense as well.

1157
01:06:50,606 --> 01:06:53,606
Unfortunately, I certainly not. But

1158
01:06:55,578 --> 01:06:56,312
I honestly

1159
01:06:56,312 --> 01:07:00,149
think maybe we could handle this in another way, which is, again,

1160
01:07:00,149 --> 01:07:01,717
I'm not trying to push it off

1161
01:07:01,717 --> 01:07:05,688
into a committee, but possibly internal auditors and staff

1162
01:07:05,688 --> 01:07:08,824
can go back in consultation with all the various parties

1163
01:07:08,824 --> 01:07:10,824
that and ask

1164
01:07:11,961 --> 01:07:16,265
what should be the scope of the total recommendation column.

1165
01:07:16,265 --> 01:07:18,968
And we can take that choice with a motion here,

1166
01:07:18,968 --> 01:07:23,768
or we can ask further input, I guess

1167
01:07:23,806 --> 01:07:26,409
I connect there an appetite

1168
01:07:26,409 --> 01:07:30,546
to the front of the amendment, even though I question it.

1169
01:07:30,546 --> 01:07:32,946
Okay, so you accept

1170
01:07:33,182 --> 01:07:36,385
a friendly amendment to add this

1171
01:07:36,385 --> 01:07:40,423
because this is not in purview of the audit committee, right?

1172
01:07:40,423 --> 01:07:44,627
So do we want to amend that to also include the

1173
01:07:44,627 --> 01:07:47,270
the chairs comment about

1174
01:07:48,798 --> 01:07:51,798
direct staff to bring back

1175
01:07:53,636 --> 01:07:55,636
the universe of

1176
01:07:57,506 --> 01:07:59,875
reports that we are taking

1177
01:07:59,875 --> 01:08:02,875
to for the total recommendations?

1178
01:08:02,945 --> 01:08:05,147
I'm happy with that. Yeah.

1179
01:08:05,147 --> 01:08:06,515
Okay.

1180
01:08:06,515 --> 01:08:08,515
Accept

1181
01:08:08,751 --> 01:08:09,985
that may not want to.

1182
01:08:09,985 --> 01:08:11,985
It's okay.

1183
01:08:12,221 --> 01:08:14,256
But I make a quick suggestion.

1184
01:08:14,256 --> 01:08:14,957
Yeah, please.

1185
01:08:14,957 --> 01:08:20,563
We're working as a team here, I know that I know that the committee charter

1186
01:08:20,563 --> 01:08:24,600
is not maybe set in stone at the moment,

1187
01:08:24,600 --> 01:08:29,638
but it would probably be easily covered if the motion just referenced.

1188
01:08:29,638 --> 01:08:33,238
Reports that are under the purview

1189
01:08:33,275 --> 01:08:36,679
of the committee as outlined in its charter or directed by council.

1190
01:08:36,679 --> 01:08:41,383
So that would cover, for example, if a grand jury report came to council,

1191
01:08:41,383 --> 01:08:44,220
there were items that you wanted to refer to, the audit committee,

1192
01:08:44,220 --> 01:08:48,824
you could do that in the the required responses to the grand jury,

1193
01:08:48,824 --> 01:08:54,463
and that would cover the the universe without us then being able to

1194
01:08:54,463 --> 01:09:00,136
put everything into the tracking report that could possibly be relevant.

1195
01:09:00,136 --> 01:09:01,837
Yeah, I like that wording. Actually.

1196
01:09:01,837 --> 01:09:07,776
I think for the motion it's not defining what the universe.

1197
01:09:07,776 --> 01:09:13,315
It's asking directing the staff to make a recommendation to the committee.

1198
01:09:13,315 --> 01:09:15,484
Here is what we should consider.

1199
01:09:15,484 --> 01:09:19,421
And the staff can then say, okay, the universe

1200
01:09:19,421 --> 01:09:23,359
is per the charter of the committee, right?

1201
01:09:23,359 --> 01:09:25,759
So that's okay.

1202
01:09:26,228 --> 01:09:26,795
Right?

1203
01:09:26,795 --> 01:09:31,500
I don't think we need to modify the motion.

1204
01:09:31,500 --> 01:09:34,500
I think what Colleen said

1205
01:09:34,703 --> 01:09:39,542
sounded very succinct and to what I was driving at.

1206
01:09:39,542 --> 01:09:45,470
So I'm I don't mean to be okay knowing here.

1207
01:09:45,470 --> 01:09:46,515
Could you repeat that?

1208
01:09:46,515 --> 01:09:48,384
Yeah, possibly.

1209
01:09:48,384 --> 01:09:49,885
Pauline. Sure.

1210
01:09:49,885 --> 01:09:51,885
It would be

1211
01:09:52,154 --> 01:09:56,458
limited to tracking recommendations that are within the under

1212
01:09:56,458 --> 01:10:01,864
the purview of the audit committee, per its charter or as directed by council.

1213
01:10:01,864 --> 01:10:03,866
Yeah, I accept that.

1214
01:10:03,866 --> 01:10:05,267
Yes. Good.

1215
01:10:05,267 --> 01:10:08,204
So that substitute motion more second actually.

1216
01:10:08,204 --> 01:10:08,837
Yeah.

1217
01:10:08,837 --> 01:10:10,706
We've had a nice discussion.

1218
01:10:10,706 --> 01:10:13,842
Have that I like this motion a lot.

1219
01:10:13,842 --> 01:10:17,179
Any other final comments? Let's take a vote.

1220
01:10:17,179 --> 01:10:18,514
Oh sorry.

1221
01:10:18,514 --> 01:10:22,510
I shall move the substitute motion.

1222
01:10:22,510 --> 01:10:22,518
Good question.

1223
01:10:22,518 --> 01:10:24,486
I'm the substitute motion.

1224
01:10:24,486 --> 01:10:27,486
There were two amendments, right.

1225
01:10:27,556 --> 01:10:28,390
And more second.

1226
01:10:28,390 --> 01:10:30,250
Those three amendments.

1227
01:10:30,250 --> 01:10:35,998
First is purview and secondly is at direction to staff.

1228
01:10:35,998 --> 01:10:38,467
And that direction was amended.

1229
01:10:38,467 --> 01:10:43,372
So there were three amendments on the on the asset.

1230
01:10:43,372 --> 01:10:47,572
The second motion. Well you could also

1231
01:10:47,776 --> 01:10:49,912
you could also just

1232
01:10:49,912 --> 01:10:52,281
have to type all that out. Yeah. All right.

1233
01:10:52,281 --> 01:10:55,384
Just just make a new motion that include all that.

1234
01:10:55,384 --> 01:11:01,390
So which you prefer removes the name notion again and then just have this.

1235
01:11:01,390 --> 01:11:03,926
So this will be the main motion.

1236
01:11:03,926 --> 01:11:07,997
So and it'll probably read better in the minutes that you don't

1237
01:11:07,997 --> 01:11:08,864
want.

1238
01:11:08,864 --> 01:11:13,640
We'll just do a substitute motion

1239
01:11:13,235 --> 01:11:18,107
which include the second motion with the three amendments.

1240
01:11:18,107 --> 01:11:20,276
No no no no we want to

1241
01:11:20,276 --> 01:11:23,812
you want to withdraw your main motion which had all those amendments.

1242
01:11:23,812 --> 01:11:24,790
Okay.

1243
01:11:24,790 --> 01:11:27,816
You're you're going to create a new main motion

1244
01:11:27,816 --> 01:11:32,688
with Colleen's simplified, limited to tracking the recommendations

1245
01:11:32,688 --> 01:11:36,125
of the audit committee per the charter or by direction of Council,

1246
01:11:36,125 --> 01:11:37,426
the simplified one.

1247
01:11:37,426 --> 01:11:40,963
And just put that in and then in the meeting minutes,

1248
01:11:40,963 --> 01:11:44,767
because you don't have to put the original motion in the minutes.

1249
01:11:44,767 --> 01:11:47,236
You just have this one. Don't need

1250
01:11:47,236 --> 01:11:48,304
that okay.

1251
01:11:48,304 --> 01:11:51,273
So cows moving in more

1252
01:11:51,273 --> 01:11:54,443
and remove the civil grand jury recommendations

1253
01:11:54,443 --> 01:11:57,579
from the audit committee recommendation tracking report

1254
01:11:57,579 --> 01:12:02,379
limited to tracking recommendations that are within the

1255
01:12:02,384 --> 01:12:05,788
under the purview of the Audit Committee, per its charter

1256
01:12:05,788 --> 01:12:08,788
for as directed by counsel.

1257
01:12:09,158 --> 01:12:11,558
Is that should that

1258
01:12:11,627 --> 01:12:14,963
include direct staff to bring back the no.

1259
01:12:14,963 --> 01:12:16,231
Okay. That's okay.

1260
01:12:16,231 --> 01:12:18,667
Well we probably all that now okay. Yeah.

1261
01:12:18,667 --> 01:12:21,837
So the previous motion was withdrawn.

1262
01:12:21,837 --> 01:12:23,739
So you don't need to put that.

1263
01:12:23,739 --> 01:12:24,206
Thank you.

1264
01:12:24,206 --> 01:12:27,676
Save all the time for the minutes.

1265
01:12:27,676 --> 01:12:28,770
All right.

1266
01:12:28,770 --> 01:12:31,113
Let's take a vote on that as

1267
01:12:31,113 --> 01:12:32,448
just stated.

1268
01:12:32,448 --> 01:12:36,180
All in favor are I opposed?

1269
01:12:36,180 --> 01:12:37,720
No. It's unanimous of us here.

1270
01:12:37,720 --> 01:12:39,922
Thanks, everyone. I think we came to a nice resolution.

1271
01:12:39,922 --> 01:12:42,424
And you can put that as a footnote down here on our report.

1272
01:12:42,424 --> 01:12:47,463
Whatever our motion was that we so succinctly have in the minutes now.

1273
01:12:47,463 --> 01:12:48,230
Great.

1274
01:12:48,230 --> 01:12:52,301
I think we're still at the point where,

1275
01:12:52,301 --> 01:12:54,737
well, I guess we're finished with this item.

1276
01:12:54,737 --> 01:12:58,941
This was an informational item on which we corrected or we made a motion.

1277
01:12:58,941 --> 01:13:02,541
So thank you for the presentation.

1278
01:13:03,879 --> 01:13:06,982
I went a little longer than I anticipated, but now I think we're

1279
01:13:06,982 --> 01:13:10,886
into the next part of your presentation, which is item six.

1280
01:13:10,886 --> 01:13:14,523
Yes. Which has received the grants management internal control review.

1281
01:13:14,523 --> 01:13:16,523
Final report. Yes.

1282
01:13:16,959 --> 01:13:18,627
Yeah. So this is really exciting.

1283
01:13:18,627 --> 01:13:22,197
I'm going to go to the executive summary just to kind of point out

1284
01:13:22,197 --> 01:13:23,599
some of the highlights of the report.

1285
01:13:23,599 --> 01:13:25,834
And then I'll open the floor for questions.

1286
01:13:25,834 --> 01:13:31,440
So you know this was really to assess the internal controls over

1287
01:13:31,440 --> 01:13:35,544
grant management activities for the city, really looking

1288
01:13:35,544 --> 01:13:39,181
specifically for compliance with policies and procedures

1289
01:13:39,181 --> 01:13:42,117
as well as best practices.

1290
01:13:42,117 --> 01:13:47,322
So we really looked at the application, the review,

1291
01:13:47,322 --> 01:13:52,961
the administrative and reporting processes related to grant management processes.

1292
01:13:52,961 --> 01:13:58,361
This actually took place in June through October of 2025.

1293
01:13:58,367 --> 01:14:03,305
So that's important just to remember that, you know, some of these recommendations

1294
01:14:03,305 --> 01:14:06,475
might have already been mitigated by the city,

1295
01:14:06,475 --> 01:14:09,475
you know, thinking about how

1296
01:14:09,578 --> 01:14:13,682
how much total grants the city has, it's pretty substantial.

1297
01:14:13,682 --> 01:14:17,986
So looking at, you know, fiscal year 24, for example,

1298
01:14:17,986 --> 01:14:22,186
25% of the program revenues related to grants.

1299
01:14:22,391 --> 01:14:24,259
So this is a very material balance

1300
01:14:24,259 --> 01:14:28,530
for the city and something that's really important.

1301
01:14:28,530 --> 01:14:30,530
So going down

1302
01:14:30,632 --> 01:14:33,669
to the second page you will see that

1303
01:14:33,669 --> 01:14:37,306
we do like to highlight things that are going really well.

1304
01:14:37,306 --> 01:14:39,608
And the city is doing really well.

1305
01:14:39,608 --> 01:14:41,577
I'll call out a couple of these.

1306
01:14:41,577 --> 01:14:45,581
So one you know looking at departments,

1307
01:14:45,581 --> 01:14:49,818
it looks like they have really organized folders for all this information,

1308
01:14:49,818 --> 01:14:53,989
grant documentation, making sure that it's recorded

1309
01:14:53,989 --> 01:14:57,993
that they have the record retention rights on it, as well as audit readiness,

1310
01:14:57,993 --> 01:15:00,362
which is so important, as you know, for your,

1311
01:15:00,362 --> 01:15:05,467
you know, external auditors as well as when pesky internal auditors come.

1312
01:15:05,467 --> 01:15:07,200
So really nicely done.

1313
01:15:07,200 --> 01:15:11,406
Also another one to highlight segregation of these really appear to be in practice

1314
01:15:11,406 --> 01:15:15,600
in invoice reviews approvals, reducing that

1315
01:15:15,177 --> 01:15:18,777
risk of errors or unauthorized transactions,

1316
01:15:18,947 --> 01:15:21,350
which is something to really highlight for the city.

1317
01:15:21,350 --> 01:15:25,621
And also, you know, there are the appears to be really good

1318
01:15:25,621 --> 01:15:28,624
hand off lists to help mitigate controls.

1319
01:15:28,624 --> 01:15:32,461
You know, if there was any risks of staff turnover, you know,

1320
01:15:32,461 --> 01:15:36,598
everyone has an understanding of what needs to be done in this process.

1321
01:15:36,598 --> 01:15:39,268
So great job to the city.

1322
01:15:39,268 --> 01:15:45,400
But like you know, most cities there are some opportunities for improvement.

1323
01:15:45,400 --> 01:15:49,478
And if you go to page number three, this lists out

1324
01:15:49,478 --> 01:15:53,282
nine areas that I wanted to highlight in the report.

1325
01:15:53,282 --> 01:15:57,886
But obviously there's details below and there's other recommendations below.

1326
01:15:57,886 --> 01:16:01,757
So looking at these high level, you know really making sure

1327
01:16:01,757 --> 01:16:07,296
to have standard grant management policies and procedures and continuity plans.

1328
01:16:07,296 --> 01:16:08,597
So we talk about,

1329
01:16:08,597 --> 01:16:13,680
you know, really having that hand off to maintain grant management activities.

1330
01:16:13,680 --> 01:16:16,838
What if there is staff absences, transitions, that sort of thing,

1331
01:16:16,838 --> 01:16:17,839
making sure

1332
01:16:17,839 --> 01:16:21,977
that there is a centralized grant opportunity identification and monitoring.

1333
01:16:21,977 --> 01:16:26,415
So when we were looking at multiple departments within the city,

1334
01:16:26,415 --> 01:16:29,415
there were sometimes different ways

1335
01:16:30,152 --> 01:16:34,756
that different departments are identifying and monitoring these grants.

1336
01:16:34,756 --> 01:16:37,526
And so really having a holistic approach across the city

1337
01:16:37,526 --> 01:16:40,495
really helps make sure everyone is an under agreement

1338
01:16:40,495 --> 01:16:43,699
and the process is continuous throughout

1339
01:16:43,699 --> 01:16:48,499
a couple other things, making sure that everyone,

1340
01:16:48,537 --> 01:16:51,607
you know that there's segregation of duties across departments.

1341
01:16:51,607 --> 01:16:55,377
So we did see, you know, some areas that had great segregation of duties,

1342
01:16:55,377 --> 01:16:59,314
others, you know, that might have staff

1343
01:16:59,314 --> 01:17:02,840
staff issues, not have enough staff, that sort of thing

1344
01:17:02,840 --> 01:17:07,956
that could lead to the potential of, you know, some segregation of duty issues.

1345
01:17:07,956 --> 01:17:10,356
Looking at this again,

1346
01:17:11,259 --> 01:17:14,630
just making sure that there's consistent internal control,

1347
01:17:14,630 --> 01:17:17,866
internal reviews and approval processes for grant reporting.

1348
01:17:17,866 --> 01:17:21,803
As you all know, grant reporting can be very cumbersome.

1349
01:17:21,803 --> 01:17:23,705
And there's a lot of different things.

1350
01:17:23,705 --> 01:17:28,110
So making sure that, you know, the city really is crossing the T's

1351
01:17:28,110 --> 01:17:31,279
and dotting the eyes, so to speak, in making

1352
01:17:31,279 --> 01:17:36,318
sure that they are doing the appropriate grant reporting.

1353
01:17:36,318 --> 01:17:38,754
It's a lot of information.

1354
01:17:38,754 --> 01:17:42,824
And so I think to really make the best of your time,

1355
01:17:42,824 --> 01:17:48,196
I'll open up for any questions or comments that you all have.

1356
01:17:48,196 --> 01:17:50,866
Why don't we do around here

1357
01:17:50,866 --> 01:17:55,660
any clarifying questions from the committee members?

1358
01:17:56,938 --> 01:17:58,940
I'm kind of wondering how,

1359
01:17:58,940 --> 01:18:03,845
but one of the, one of the problems that we see that grants are being

1360
01:18:03,845 --> 01:18:10,385
applied for, and then we kind of find out about that after the fact.

1361
01:18:10,385 --> 01:18:14,585
And has that been improved upon, like.

1362
01:18:17,359 --> 01:18:20,562
For instance, there was a grant for.

1363
01:18:20,562 --> 01:18:23,562
It was some artificial intelligence

1364
01:18:25,500 --> 01:18:29,700
virtual reality program, and it was about $100,000

1365
01:18:30,405 --> 01:18:33,750
that was given to the city to create this VR.

1366
01:18:33,750 --> 01:18:38,947
You have the virtual reality headset, but that didn't it didn't like

1367
01:18:38,947 --> 01:18:44,619
go through the council and it and it got kind of put on to like a

1368
01:18:44,619 --> 01:18:47,190
work program, special project.

1369
01:18:47,550 --> 01:18:49,558
But all the money came from outside.

1370
01:18:49,558 --> 01:18:50,792
Did use some staff time.

1371
01:18:50,792 --> 01:18:55,864
But is there something in the process now that would be different

1372
01:18:55,864 --> 01:18:58,433
so that that could rise to the level of getting to the council,

1373
01:18:58,433 --> 01:18:58,867
because that's

1374
01:18:58,867 --> 01:19:02,704
a substantial amount of money, and then the city is supposed

1375
01:19:02,704 --> 01:19:07,504
to be continuing, like using this VR thing.

1376
01:19:07,843 --> 01:19:11,346
It was the one with decarbonization

1377
01:19:11,346 --> 01:19:14,382
of your house, with your changing out your appliances and stuff.

1378
01:19:14,382 --> 01:19:15,784
And it had Cooper in it.

1379
01:19:15,784 --> 01:19:17,753
I don't know if you ever tried it out. So.

1380
01:19:17,753 --> 01:19:23,158
So there was one for McLellan wrench, and that's another one

1381
01:19:23,158 --> 01:19:25,527
that was much smaller. There is another one.

1382
01:19:25,527 --> 01:19:26,828
I didn't know that. Yeah.

1383
01:19:26,828 --> 01:19:31,990
So they're supposed to have it out, like at our festivals and whatnot

1384
01:19:31,990 --> 01:19:37,139
for people to check out to last year in might have been two years ago.

1385
01:19:37,139 --> 01:19:38,740
Oh, yeah.

1386
01:19:38,740 --> 01:19:40,642
So you put on the virtual reality

1387
01:19:40,642 --> 01:19:44,513
headset outside in the library field for the green.

1388
01:19:44,513 --> 01:19:45,130
What is that?

1389
01:19:45,130 --> 01:19:49,351
Oh, you need the it needs a headset to work, right?

1390
01:19:49,351 --> 01:19:49,718
Right.

1391
01:19:49,718 --> 01:19:52,870
And you would see Cooper, and then you would be asked,

1392
01:19:52,870 --> 01:19:56,258
you know, like, where can you make changes and give different questions about.

1393
01:19:56,258 --> 01:20:01,496
You'd be walking around a house and changing out the appliances for like

1394
01:20:01,496 --> 01:20:01,863
a gas

1395
01:20:01,863 --> 01:20:05,700
stove for something, their induction heating type of thing.

1396
01:20:05,700 --> 01:20:07,702
That's as an example.

1397
01:20:07,702 --> 01:20:13,475
So is there anything in the system that would keep that from happening?

1398
01:20:13,475 --> 01:20:16,545
And maybe what I add to it.

1399
01:20:16,545 --> 01:20:20,810
So the there is and we just took this

1400
01:20:20,810 --> 01:20:23,351
to council a month or two ago is the grant policy.

1401
01:20:23,351 --> 01:20:27,556
And so it kind of provided some guardrails as to what would be going to council.

1402
01:20:27,556 --> 01:20:31,459
And I think if I were correctly one of the the

1403
01:20:31,459 --> 01:20:35,630
emphasis on what would be taken or the pursuit of grants

1404
01:20:35,630 --> 01:20:40,100
is the amount of staff time required to essentially to pursue.

1405
01:20:40,100 --> 01:20:44,873
And so it's the short of what of what what kind of what it boils down to.

1406
01:20:44,873 --> 01:20:49,978
So if it's going to be heavy staff time to to pursue this.

1407
01:20:49,978 --> 01:20:52,747
The idea is it would go to council for approval.

1408
01:20:52,747 --> 01:20:57,619
Now if it's nominal or it's essentially not much.

1409
01:20:57,619 --> 01:21:01,656
I think that the pursuit of the grant would not require it to go to council.

1410
01:21:01,656 --> 01:21:04,993
However, I think there are some thresholds that would require council

1411
01:21:04,993 --> 01:21:09,640
to approve the grant and one of the other bits,

1412
01:21:09,640 --> 01:21:13,835
and you'll see it as one of the findings is it ultimately would also require

1413
01:21:13,835 --> 01:21:19,407
the city manager's approval or their designee on any grant.

1414
01:21:19,407 --> 01:21:24,179
So can we maybe use those as case study.

1415
01:21:24,179 --> 01:21:28,160
And so these are the grant in the past.

1416
01:21:28,160 --> 01:21:34,789
And whether the new policy how would the new policy would apply for this?

1417
01:21:34,789 --> 01:21:39,461
I think that would help us to understand

1418
01:21:39,461 --> 01:21:42,464
how the new policy would work,

1419
01:21:42,464 --> 01:21:46,640
maybe whether any adjustment is needed.

1420
01:21:47,836 --> 01:21:50,236
One one more area.

1421
01:21:50,272 --> 01:21:53,909
So the SV hopper, they and I don't know if this I don't

1422
01:21:53,909 --> 01:21:57,312
recall it going to council, but there has been an application

1423
01:21:57,312 --> 01:22:01,182
for two different kinds of grants to extend that.

1424
01:22:01,182 --> 01:22:06,154
But I don't recall us having a discussion about it on the on the council agenda.

1425
01:22:06,154 --> 01:22:08,723
And those are significant amounts of grants.

1426
01:22:08,723 --> 01:22:13,895
And, you know, I'm pretty sure it's over $1 million.

1427
01:22:13,895 --> 01:22:18,233
Then we can organize our, our, our comments here in

1428
01:22:18,233 --> 01:22:21,102
I guess some of them are process related.

1429
01:22:21,102 --> 01:22:24,940
And there's some recent development, I guess was the policy that would

1430
01:22:24,940 --> 01:22:26,141
Jonathan's referring to.

1431
01:22:26,141 --> 01:22:28,977
Is that part of your incorporated?

1432
01:22:28,977 --> 01:22:31,646
Did you finish this study before that? Yes.

1433
01:22:31,646 --> 01:22:35,583
So if you look, our very first finding was around policies and procedures,

1434
01:22:35,583 --> 01:22:37,953
and I think that was an administrative policy,

1435
01:22:37,953 --> 01:22:40,956
Jonathan, that you have been working on, is that correct?

1436
01:22:40,956 --> 01:22:43,240
No, that one was a council council policy.

1437
01:22:43,240 --> 01:22:46,828
So we we have not reviewed this like I mentioned,

1438
01:22:46,828 --> 01:22:50,699
this, this report actually, you know, we finished our testing

1439
01:22:50,699 --> 01:22:55,503
and the report was the draft was initially in October of last year.

1440
01:22:55,503 --> 01:22:59,474
So it's been a while since we have worked on this area.

1441
01:22:59,474 --> 01:23:03,278
What I want to say, we do have a follow up, you know,

1442
01:23:03,278 --> 01:23:07,115
when we get to the next fiscal year, internal audit work plan

1443
01:23:07,115 --> 01:23:11,720
for this type of thing, which is kind of what I would maybe into to the extent

1444
01:23:11,720 --> 01:23:15,390
you've done a certain amount of work and there's a number of recommendations.

1445
01:23:15,390 --> 01:23:19,327
And when I look at the city staff response, it's basically

1446
01:23:19,327 --> 01:23:20,862
since this report was finished

1447
01:23:20,862 --> 01:23:24,432
or the work was done, there's been a grants analyst been hired

1448
01:23:24,432 --> 01:23:29,838
who presumably is doing all kinds of policy and implementation things.

1449
01:23:29,838 --> 01:23:33,341
And that leads into this, I guess, proposal that we have

1450
01:23:33,341 --> 01:23:34,576
in the next agenda item.

1451
01:23:34,576 --> 01:23:36,544
So we're sort of

1452
01:23:36,544 --> 01:23:40,248
what I'm trying to do is figure out how we can take the benefits

1453
01:23:40,248 --> 01:23:43,785
of what we see in front of us, but then recognize we've got another item

1454
01:23:43,785 --> 01:23:46,888
potentially where we could address some of the.

1455
01:23:46,888 --> 01:23:50,488
Almost both of your questions in

1456
01:23:50,959 --> 01:23:55,230
some sense, are like follow ons to the scoping of that follow on project.

1457
01:23:55,230 --> 01:23:57,198
So sounds to so how do we.

1458
01:23:57,198 --> 01:23:59,167
I don't know if you guys see where I'm going here,

1459
01:23:59,167 --> 01:24:02,137
but we've got we can get rid of this item I don't want to say get rid of,

1460
01:24:02,137 --> 01:24:06,808
but how does city city staff is responding saying basically there's a new person

1461
01:24:06,808 --> 01:24:11,608
in all of these recommendations are being reevaluated.

1462
01:24:11,780 --> 01:24:13,248
Is that correct?

1463
01:24:13,248 --> 01:24:16,351
I feel somewhat I think that's the general

1464
01:24:16,351 --> 01:24:19,351
or at least our position

1465
01:24:19,621 --> 01:24:21,122
that the

1466
01:24:21,122 --> 01:24:25,193
that the new grants analyst has addressed, or that there's a process in place

1467
01:24:25,193 --> 01:24:29,831
that addresses most of these levels, think we could accept this item.

1468
01:24:29,831 --> 01:24:33,701
And then on the next agenda item drew in more deeply

1469
01:24:33,701 --> 01:24:36,871
as to what follow on items makes sense.

1470
01:24:36,871 --> 01:24:39,874
I'm curious that this says it's an action

1471
01:24:39,874 --> 01:24:41,874
item and six.

1472
01:24:43,440 --> 01:24:45,980
It seems more informational, right?

1473
01:24:45,980 --> 01:24:49,884
But I'm also wondering so this is going to go to council.

1474
01:24:49,884 --> 01:24:53,988
So the staff report should have some mention

1475
01:24:53,988 --> 01:24:57,559
about how this report was generated at this time.

1476
01:24:57,559 --> 01:25:00,628
And the city's already been implementing the recommendation.

1477
01:25:00,628 --> 01:25:03,598
So the things the original report.

1478
01:25:03,598 --> 01:25:05,233
Yeah that's it's important.

1479
01:25:05,233 --> 01:25:11,139
But we've made excise changes so that the council doesn't get confused by it.

1480
01:25:11,139 --> 01:25:13,741
And then also include that grant policy

1481
01:25:13,741 --> 01:25:17,645
to as a reminder that we had already done that.

1482
01:25:17,645 --> 01:25:24,419
So maybe we should have an item that says what you just said as our

1483
01:25:24,419 --> 01:25:26,688
we handle this sometimes through a staff report.

1484
01:25:26,688 --> 01:25:28,723
And Jonathan could include that the committee

1485
01:25:28,723 --> 01:25:32,460
discussed this report, received it and forward it to city council.

1486
01:25:32,460 --> 01:25:36,498
But with the caveats that the mayor has just listed.

1487
01:25:36,498 --> 01:25:40,100
Have a question for the consultant?

1488
01:25:40,100 --> 01:25:42,470
Okay. Clarifying questions. We're still on those actually.

1489
01:25:42,470 --> 01:25:45,206
And then I don't let me forget we got to go to the public.

1490
01:25:45,206 --> 01:25:46,641
So from.

1491
01:25:46,641 --> 01:25:49,477
So this report was down last year.

1492
01:25:49,477 --> 01:25:51,877
And I do wonder

1493
01:25:53,448 --> 01:25:58,720
how did you collect information to create this report.

1494
01:25:58,720 --> 01:26:03,658
For example, those issues with grants were have observed.

1495
01:26:03,658 --> 01:26:07,595
And it seems you are not aware of those.

1496
01:26:07,595 --> 01:26:11,795
So I wonder what kind of process

1497
01:26:11,900 --> 01:26:15,837
you had used to create this report.

1498
01:26:15,837 --> 01:26:18,237
Maybe there are people

1499
01:26:18,840 --> 01:26:24,450
you should have interviewed but you didn't show.

1500
01:26:24,450 --> 01:26:27,645
Maybe the report should even be

1501
01:26:28,183 --> 01:26:29,317
delayed so

1502
01:26:29,317 --> 01:26:32,917
you can collect more complete information

1503
01:26:33,221 --> 01:26:35,621
before making this recommendation.

1504
01:26:36,824 --> 01:26:39,460
Do you want me to take a step up or do you want to?

1505
01:26:39,460 --> 01:26:43,298
You can you can start and then I can okay, I can add my $0.02.

1506
01:26:43,298 --> 01:26:47,202
I have two other examples of things didn't work before.

1507
01:26:47,202 --> 01:26:53,641
So this the testing period was again at the beginning of fiscal year 2526.

1508
01:26:53,641 --> 01:26:56,711
And that's what they tested. But since then

1509
01:26:56,711 --> 01:27:00,815
or concurrently, there were some changes occurring within the city.

1510
01:27:00,815 --> 01:27:05,920
One with the the with the hiring of the grant analyst.

1511
01:27:05,920 --> 01:27:10,792
And so as the report was being generated, being

1512
01:27:10,792 --> 01:27:14,992
essentially circulated within the city for review,

1513
01:27:15,290 --> 01:27:19,701
which was delayed a bit due to staff turnover and the review process.

1514
01:27:19,701 --> 01:27:22,870
So that's what delayed the report itself.

1515
01:27:22,870 --> 01:27:25,740
And so it still retained the original testing period.

1516
01:27:25,740 --> 01:27:27,942
But changes had already begun. Right.

1517
01:27:27,942 --> 01:27:30,979
And that was part of the our response.

1518
01:27:30,979 --> 01:27:32,979
You only tested

1519
01:27:33,881 --> 01:27:36,784
any grants that's being applied

1520
01:27:36,784 --> 01:27:40,384
for during those periods or being

1521
01:27:41,489 --> 01:27:43,958
not necessarily applied but reviewed.

1522
01:27:43,958 --> 01:27:44,759
Right.

1523
01:27:44,759 --> 01:27:48,363
It could be a combination of grants that were in progress.

1524
01:27:48,363 --> 01:27:48,596
Right.

1525
01:27:48,596 --> 01:27:52,700
If we're like CDBG, that's a year round and continual grant.

1526
01:27:52,700 --> 01:27:53,268
Right.

1527
01:27:53,268 --> 01:27:56,437
And so as they're testing that

1528
01:27:56,437 --> 01:28:01,709
we could be early on in the year, may or may not have a lot of invoices,

1529
01:28:01,709 --> 01:28:03,444
but if it's a grant that's kind of

1530
01:28:03,444 --> 01:28:07,415
crossing a specific time period, they could be testing that that way.

1531
01:28:07,415 --> 01:28:11,152
So again, their testing period was a couple months, right?

1532
01:28:11,152 --> 01:28:13,721
That they're only looking at one specific time.

1533
01:28:13,721 --> 01:28:16,391
But there could be other things more different.

1534
01:28:16,391 --> 01:28:20,662
And the report was generated based off of that testing window.

1535
01:28:20,662 --> 01:28:25,233
So if there were things happened before that testing window

1536
01:28:25,233 --> 01:28:27,233
and that we

1537
01:28:29,103 --> 01:28:32,103
we need a policy recommendation

1538
01:28:32,707 --> 01:28:36,444
for those grants, they cannot they are not included.

1539
01:28:36,444 --> 01:28:40,348
So how can we include those in

1540
01:28:40,348 --> 01:28:45,748
is it possible to revise the report to include.

1541
01:28:47,622 --> 01:28:50,958
Things that we think could be improved on.

1542
01:28:50,958 --> 01:28:53,428
And they have a revised report.

1543
01:28:53,428 --> 01:28:56,640
So a couple of things I want to remind you.

1544
01:28:56,640 --> 01:28:59,167
This report is not even from this past fiscal year.

1545
01:28:59,167 --> 01:29:01,235
It was from the fiscal year before that.

1546
01:29:01,235 --> 01:29:05,640
So really we're looking at an item that was from fiscal year 25.

1547
01:29:05,640 --> 01:29:08,176
So I agree with Jonathan.

1548
01:29:08,176 --> 01:29:12,246
This is a report and a, you know, a point of time.

1549
01:29:12,246 --> 01:29:15,383
And we really need to move forward and think, you know,

1550
01:29:15,383 --> 01:29:17,118
what is the future for the city?

1551
01:29:17,118 --> 01:29:18,553
I think, you know,

1552
01:29:18,553 --> 01:29:21,856
I do think that what your comments are valid, and I think

1553
01:29:21,856 --> 01:29:25,793
that I would really lean into that next agenda item,

1554
01:29:25,793 --> 01:29:29,597
which is talking about our internal audit plan for 27.

1555
01:29:29,597 --> 01:29:33,701
And you can be specific in maybe that scope of work

1556
01:29:33,701 --> 01:29:36,804
and saying, you know, these are specific.

1557
01:29:36,804 --> 01:29:39,874
Not only do we want you to follow up on the findings of this,

1558
01:29:39,874 --> 01:29:44,679
but there are specific other areas that council or this committee,

1559
01:29:44,679 --> 01:29:48,549
you know, is concerned with that we would like to include in that scope

1560
01:29:48,549 --> 01:29:53,200
and that be a new report for the next fiscal year.

1561
01:29:53,200 --> 01:29:53,755
And I guess in

1562
01:29:53,755 --> 01:29:57,525
the chime in on that, there is a description in this report

1563
01:29:57,525 --> 01:30:02,925
that you're asking us to complete receive today

1564
01:30:03,970 --> 01:30:07,802
on pages four and five that talks about your scope and methodology.

1565
01:30:07,802 --> 01:30:12,740
So maybe that addresses some of the vice mayor comments,

1566
01:30:12,740 --> 01:30:15,843
even though I agree that we should be looking at what's the current

1567
01:30:15,843 --> 01:30:20,281
situation, what the current analyst and what do we expect would be helpful

1568
01:30:20,281 --> 01:30:25,420
for city's internal controls or operations from a future perspective?

1569
01:30:25,420 --> 01:30:30,958
So I'd suggest that we received this report and maybe leave it at that.

1570
01:30:30,958 --> 01:30:34,762
And city council city staff can have do whatever because they're not forwarding

1571
01:30:34,762 --> 01:30:38,599
at the city council necessarily as our action item and then dive

1572
01:30:38,599 --> 01:30:43,237
right into the next item on our agenda, which will address maybe more deaths.

1573
01:30:43,237 --> 01:30:45,600
What you're bringing up, Vice Mayor,

1574
01:30:45,600 --> 01:30:50,406
I think it does say in the executive summary.

1575
01:30:52,460 --> 01:30:56,246
That the internal control review took place

1576
01:30:56,617 --> 01:30:59,170
between June and October 2025.

1577
01:31:00,688 --> 01:31:03,724
That's a very short amount of time.

1578
01:31:03,724 --> 01:31:08,596
So if your testing is only for those few months.

1579
01:31:08,596 --> 01:31:13,434
So of course it's not going to capture

1580
01:31:13,434 --> 01:31:16,537
the problems we have seen over the years and the

1581
01:31:16,537 --> 01:31:20,875
you would not have captured things we need improve on.

1582
01:31:20,875 --> 01:31:21,275
Right.

1583
01:31:21,275 --> 01:31:25,460
So that actually so that's how long the project took place.

1584
01:31:25,460 --> 01:31:30,918
So the scope of our project was for fiscal year 25.

1585
01:31:30,918 --> 01:31:35,156
So the project only we worked on this project

1586
01:31:35,156 --> 01:31:38,756
from June 25th through October of 2025.

1587
01:31:40,628 --> 01:31:44,899
But the scope so what the grant management process

1588
01:31:44,899 --> 01:31:48,536
that we looked with in the city was for fiscal year 25.

1589
01:31:48,536 --> 01:31:51,606
So it was for a year

1590
01:31:51,606 --> 01:31:53,606
or so before 2025.

1591
01:31:54,842 --> 01:31:59,347
So it's one year, a snapshot of one year

1592
01:31:59,347 --> 01:32:01,347
from July 2024

1593
01:32:02,517 --> 01:32:04,517
to June 2025.

1594
01:32:06,870 --> 01:32:07,121
That's correct.

1595
01:32:07,121 --> 01:32:11,921
That's not clear from your executive summary.

1596
01:32:12,560 --> 01:32:14,560
Okay.

1597
01:32:15,960 --> 01:32:16,464
I would kind of suggest

1598
01:32:16,464 --> 01:32:20,601
that we could form a subcommittee to talk about

1599
01:32:20,601 --> 01:32:24,805
to test the grant concerns against the new policy,

1600
01:32:24,805 --> 01:32:27,775
and what result would happen now

1601
01:32:27,775 --> 01:32:32,246
if if those were being suggested or pursued,

1602
01:32:32,246 --> 01:32:35,182
what would be different with a new policy

1603
01:32:35,182 --> 01:32:39,921
and just do that as an offline project?

1604
01:32:39,921 --> 01:32:40,755
So yeah.

1605
01:32:40,755 --> 01:32:44,325
So I'd like to mention two other

1606
01:32:44,325 --> 01:32:46,325
major grants that

1607
01:32:47,795 --> 01:32:50,264
the city staff apply to.

1608
01:32:50,264 --> 01:32:53,670
Maybe the subcommittee can consider.

1609
01:32:53,670 --> 01:32:55,703
I don't want a country short because those are super ideas

1610
01:32:55,703 --> 01:32:57,204
that really would fit better.

1611
01:32:57,204 --> 01:33:02,243
Maybe in our work plan or in the next item.

1612
01:33:02,243 --> 01:33:03,511
Seven both.

1613
01:33:03,511 --> 01:33:07,748
Both of your comments, I think, are very relevant for those two items.

1614
01:33:07,748 --> 01:33:09,417
Maybe a way to solve this.

1615
01:33:09,417 --> 01:33:13,888
One is the read in the staff response to just about every one

1616
01:33:13,888 --> 01:33:16,888
of the recommendations, based on

1617
01:33:17,580 --> 01:33:20,761
what this period was covered, is basically

1618
01:33:20,761 --> 01:33:26,100
there's been a grants manager hired that is now everything is superseded.

1619
01:33:26,100 --> 01:33:29,437
So I hate to say it, but it's the time has progressed forward

1620
01:33:29,437 --> 01:33:32,840
and we didn't get this report or it couldn't be finalized or whatever.

1621
01:33:32,840 --> 01:33:38,446
So to some extent we could receive this report and highlight that management.

1622
01:33:38,446 --> 01:33:40,846
Management's response is

1623
01:33:41,820 --> 01:33:47,210
that there's all kinds of policy and personnel changes

1624
01:33:47,210 --> 01:33:48,723
and that we as a committee.

1625
01:33:48,723 --> 01:33:53,828
Then my response to that is, let's address that in item seven and eight,

1626
01:33:53,828 --> 01:33:57,398
that your motion, because it's I don't know, get a motion necessarily.

1627
01:33:57,398 --> 01:34:00,401
It's sort of clarifying the reception of the report.

1628
01:34:00,401 --> 01:34:01,736
But we could yeah.

1629
01:34:01,736 --> 01:34:03,804
If you want to make a motion so moved.

1630
01:34:03,804 --> 01:34:04,438
Okay.

1631
01:34:04,438 --> 01:34:07,608
Is there a second which would be me

1632
01:34:07,608 --> 01:34:11,912
I knew motion so I can second pair of seconds.

1633
01:34:11,912 --> 01:34:14,715
I would like to request a change though

1634
01:34:14,715 --> 01:34:18,219
on the executive summary didn't make it clear.

1635
01:34:18,219 --> 01:34:21,722
This is a review of only the fiscal

1636
01:34:21,722 --> 01:34:24,122
year 2025, which is on

1637
01:34:26,827 --> 01:34:29,227
from June from July 2024.

1638
01:34:30,640 --> 01:34:35,360
It's not a review of all of the grants management.

1639
01:34:35,360 --> 01:34:38,506
So if we can make that clear in the title of the report

1640
01:34:38,506 --> 01:34:43,911
and then in the executive summary of the report, then I can accept it.

1641
01:34:43,911 --> 01:34:46,180
Otherwise I think it's confusing.

1642
01:34:46,180 --> 01:34:49,417
Vice mayor, it's in the first paragraph is actually a summary

1643
01:34:49,417 --> 01:34:51,817
on the first page.

1644
01:34:53,921 --> 01:34:58,192
It just says that the review took place

1645
01:34:58,192 --> 01:35:01,629
during that time, but it didn't say the data

1646
01:35:01,629 --> 01:35:07,290
they used for the review is for fiscal year 2025.

1647
01:35:07,702 --> 01:35:10,638
They only look at the grants that's being processed

1648
01:35:10,638 --> 01:35:13,908
or in progress during those times.

1649
01:35:13,908 --> 01:35:19,308
Okay, so I think it's super clear, but.

1650
01:35:21,315 --> 01:35:25,619
I didn't say a review of One Year of Rent.

1651
01:35:25,619 --> 01:35:28,789
I think it's clear to because there's a lot of scope.

1652
01:35:28,789 --> 01:35:31,926
And again, I really want to put this in the mirror.

1653
01:35:31,926 --> 01:35:34,326
So I guess we

1654
01:35:35,563 --> 01:35:37,310
we don't have any public comment.

1655
01:35:37,310 --> 01:35:39,660
We skipped over that and went to a motion

1656
01:35:39,660 --> 01:35:42,436
I just to get our little procedural thing going.

1657
01:35:42,436 --> 01:35:45,840
We didn't skip anybody because there was no one who had raised their hands.

1658
01:35:45,840 --> 01:35:51,746
So I think we have a motion and why don't we just vote on it and see where it goes?

1659
01:35:51,746 --> 01:35:54,815
So all in favor of the motion chair?

1660
01:35:54,815 --> 01:35:55,282
I'm sorry.

1661
01:35:55,282 --> 01:35:56,584
May I the motion.

1662
01:35:56,584 --> 01:36:00,121
And also I just wanted to clarify.

1663
01:36:00,121 --> 01:36:03,924
So okay, let me just read what I.

1664
01:36:03,924 --> 01:36:04,158
Yeah.

1665
01:36:04,158 --> 01:36:08,996
To receive the grants management internal control review final report

1666
01:36:08,996 --> 01:36:10,664
with the understanding that the management's

1667
01:36:10,664 --> 01:36:14,264
response notes that subsequent policy, personnel

1668
01:36:14,702 --> 01:36:19,340
and organizational changes have superseded many of the report's findings.

1669
01:36:19,340 --> 01:36:23,778
And to address those changes further under item seven and eight,

1670
01:36:23,778 --> 01:36:25,746
I think that reflects, Jonathan.

1671
01:36:25,746 --> 01:36:27,281
You have a slight modification. Yes.

1672
01:36:27,281 --> 01:36:30,151
And not just just seven. Correct.

1673
01:36:30,151 --> 01:36:31,285
Okay.

1674
01:36:31,285 --> 01:36:32,553
Okay.

1675
01:36:32,553 --> 01:36:34,388
Mayor, is that reflective of what?

1676
01:36:34,388 --> 01:36:35,122
Yeah, I think so.

1677
01:36:35,122 --> 01:36:39,160
So is the is the committee making a recommendation

1678
01:36:39,160 --> 01:36:42,797
to forward the report to council or is that automatic?

1679
01:36:42,797 --> 01:36:46,000
Well, it's not automatic and it is in our recommended action.

1680
01:36:46,000 --> 01:36:47,935
But we can always modify our action.

1681
01:36:47,935 --> 01:36:52,940
But I'm happy to forward it based on this motion as a clarifying

1682
01:36:52,940 --> 01:36:53,340
thing.

1683
01:36:53,340 --> 01:36:57,278
So why don't we vote on the motion first and then address.

1684
01:36:57,278 --> 01:36:59,713
Do you want that in the motion is what you suggest I guess.

1685
01:36:59,713 --> 01:37:02,750
Well it's part of the recommended action is money clarity if you want to vote

1686
01:37:02,750 --> 01:37:06,200
if you want to, and the to

1687
01:37:06,200 --> 01:37:09,790
amend the motion to forward the report to city Council.

1688
01:37:09,790 --> 01:37:10,570
Great.

1689
01:37:10,570 --> 01:37:12,960
But I so second agree or whatever that's required.

1690
01:37:12,960 --> 01:37:13,594
All right.

1691
01:37:13,594 --> 01:37:16,630
All in favor of that is so nicely reread to us.

1692
01:37:16,630 --> 01:37:20,230
I and he opposed oppose okay.

1693
01:37:20,868 --> 01:37:23,204
And there's only three of us so okay.

1694
01:37:23,204 --> 01:37:24,104
Very good.

1695
01:37:24,104 --> 01:37:27,641
And I appreciate the patience and discussion on this that there's

1696
01:37:27,641 --> 01:37:29,109
a lot of issues that we brought up.

1697
01:37:29,109 --> 01:37:32,713
And I see that we're running a bit later than I anticipated.

1698
01:37:32,713 --> 01:37:33,647
Can we.

1699
01:37:33,647 --> 01:37:37,847
Is everybody available to maybe address seven.

1700
01:37:37,985 --> 01:37:43,230
And I don't want you to have to come up third day.

1701
01:37:43,230 --> 01:37:45,326
It's a city staff.

1702
01:37:45,326 --> 01:37:50,231
Can we stay for a little bit longer while we go into item seven or.

1703
01:37:50,231 --> 01:37:51,650
We don't need that.

1704
01:37:51,650 --> 01:37:52,466
It's not like counselor.

1705
01:37:52,466 --> 01:37:55,703
Yeah. Motion. Just keep going, okay? Okay.

1706
01:37:55,703 --> 01:37:59,640
I still, I am sensitive to the clock and we can always defer that we have that

1707
01:37:59,640 --> 01:38:01,800
I have that authority I guess.

1708
01:38:01,800 --> 01:38:04,478
So let's move on to our item seven action item

1709
01:38:04,478 --> 01:38:07,478
20 2627 Internal Audit Work program review.

1710
01:38:08,315 --> 01:38:13,387
And we'd like to receive that and forward to City Council as our action item.

1711
01:38:13,387 --> 01:38:16,387
And over to Baker Tilly.

1712
01:38:16,590 --> 01:38:17,224
Thank you.

1713
01:38:17,224 --> 01:38:17,524
All right.

1714
01:38:17,524 --> 01:38:21,996
This is very exciting talking about what we can do for the next fiscal year.

1715
01:38:21,996 --> 01:38:25,900
So just a reminder of what we do at Baker Tilly.

1716
01:38:25,900 --> 01:38:29,536
We serve as a designated internal auditor for the city.

1717
01:38:29,536 --> 01:38:34,475
And we're really focusing on these areas risk, internal controls,

1718
01:38:34,475 --> 01:38:38,712
efficiency and effectiveness, best practices and then compliance.

1719
01:38:38,712 --> 01:38:43,751
Our work is always completed under the appropriate industry standards.

1720
01:38:43,751 --> 01:38:51,258
So that IEA looking at government accounting standards as well as the AICPA.

1721
01:38:51,258 --> 01:38:51,959
All right.

1722
01:38:51,959 --> 01:38:55,296
So what what is the role of an internal auditor.

1723
01:38:55,296 --> 01:38:58,265
I think this is always something really important to look at.

1724
01:38:58,265 --> 01:39:03,604
You know, we are an independent function that really helps

1725
01:39:03,604 --> 01:39:06,540
kind of look at the achievements and objectives of the city.

1726
01:39:06,540 --> 01:39:10,277
And so if you look at this, this, you know,

1727
01:39:10,277 --> 01:39:13,681
illustration, it's showing you how we have communication

1728
01:39:13,681 --> 01:39:15,316
with both the governing bodies.

1729
01:39:15,316 --> 01:39:20,321
So city council this audit committee here as well as management.

1730
01:39:20,321 --> 01:39:24,591
And so it really shows that there is that third communication

1731
01:39:24,591 --> 01:39:28,395
and then all the communication lines really making sure

1732
01:39:28,395 --> 01:39:31,865
that we are separate from your external audit.

1733
01:39:31,865 --> 01:39:35,636
And so, you know, you see that at the very right hand

1734
01:39:35,636 --> 01:39:38,138
side of this illustration showing that, you know,

1735
01:39:38,138 --> 01:39:40,240
your external assurance providers.

1736
01:39:40,240 --> 01:39:41,675
So for your external auditor,

1737
01:39:41,675 --> 01:39:47,470
the punk group, they are separate from this, this action.

1738
01:39:47,470 --> 01:39:50,951
So going into our internal audit program,

1739
01:39:50,951 --> 01:39:55,322
how do we come up with an internal audit program to present to you all today?

1740
01:39:55,322 --> 01:39:57,124
There's many components.

1741
01:39:57,124 --> 01:40:01,128
You know, the enterprise risk assessment, which we do, you know,

1742
01:40:01,128 --> 01:40:04,128
every 3 to 5 years getting input

1743
01:40:05,499 --> 01:40:10,304
from employees and residents, as well as performance metrics for cities.

1744
01:40:10,304 --> 01:40:12,606
We also look at general opportunities.

1745
01:40:12,606 --> 01:40:16,206
So risk controls compliance and performance.

1746
01:40:16,377 --> 01:40:19,646
And then last but not least that tracking and reporting.

1747
01:40:19,646 --> 01:40:22,883
So that validation report that we talked about earlier today

1748
01:40:22,883 --> 01:40:26,687
looking at those findings and recommendations, the Fraud

1749
01:40:26,687 --> 01:40:29,256
and Abuse hotline, that would be another thing

1750
01:40:29,256 --> 01:40:32,459
looking at implementation that the city is,

1751
01:40:32,459 --> 01:40:36,296
you know, has been doing as well as that validation that we talked about.

1752
01:40:36,296 --> 01:40:40,367
So that is those inputs really make up

1753
01:40:40,367 --> 01:40:45,339
our internal audit program and what we present to you all.

1754
01:40:45,339 --> 01:40:48,909
So this is just another illustration kind of talking.

1755
01:40:48,909 --> 01:40:53,480
Just again what we talked about just now looking at the internal audit program

1756
01:40:53,480 --> 01:40:57,317
and really just how it umbrellas all the different

1757
01:40:57,317 --> 01:40:59,887
components as well as city functions.

1758
01:40:59,887 --> 01:41:03,223
So we're not just looking at the finance department.

1759
01:41:03,223 --> 01:41:06,927
We look at other areas, other departments within the city.

1760
01:41:06,927 --> 01:41:13,300
So a really holistic approach just to kind of highlight what has the city done.

1761
01:41:13,300 --> 01:41:16,236
You know, we've had two enterprise risk assessments.

1762
01:41:16,236 --> 01:41:18,636
So both in 2021 and 2024.

1763
01:41:20,641 --> 01:41:23,177
We are currently in a citywide

1764
01:41:23,177 --> 01:41:26,413
internal control review that we talked about earlier today.

1765
01:41:26,413 --> 01:41:29,583
And we've also had some performance.

1766
01:41:29,583 --> 01:41:31,885
So looking at the efficiency and effectiveness.

1767
01:41:31,885 --> 01:41:38,258
So those performance audits we've had five over the years policies reviewed.

1768
01:41:38,258 --> 01:41:43,564
We have looked at over 147 policies to remind you,

1769
01:41:43,564 --> 01:41:48,635
we did a city council review this past fiscal year, as well as we are

1770
01:41:48,635 --> 01:41:53,874
looking at the investment cash flow policy also with the city.

1771
01:41:53,874 --> 01:41:54,842
You all know this.

1772
01:41:54,842 --> 01:41:57,845
There is, you know, some recommendations delivered.

1773
01:41:57,845 --> 01:42:01,949
I look at this number and I can tell you it is incorrect because we know now

1774
01:42:01,949 --> 01:42:03,949
that 79 also includes

1775
01:42:04,952 --> 01:42:09,356
the external audit as well as the civil grand jury reports.

1776
01:42:09,356 --> 01:42:10,991
So that is not correct.

1777
01:42:10,991 --> 01:42:15,791
But we have delivered, you know, many recommendations.

1778
01:42:16,630 --> 01:42:22,936
And there have been 39 ethics hotline reports received over the years.

1779
01:42:22,936 --> 01:42:27,641
And, you know, in fiscal year 26, we were able to validate

1780
01:42:27,641 --> 01:42:29,641
seven recommendations.

1781
01:42:29,910 --> 01:42:36,490
So kind of an idea of what we do with our time.

1782
01:42:36,490 --> 01:42:38,986
This also just kind of shows you the different departments.

1783
01:42:38,986 --> 01:42:40,821
And like I mentioned, it's not just looking

1784
01:42:40,821 --> 01:42:45,492
at the finance department or the administrative services as a whole,

1785
01:42:45,492 --> 01:42:51,640
but really we have dabbled in public works, we've done enterprise projects.

1786
01:42:51,640 --> 01:42:54,968
So looking at, you know, the enterprise risk assessments, internal control review,

1787
01:42:54,968 --> 01:42:57,938
city manager's office and public works over

1788
01:42:57,938 --> 01:42:59,938
our time.

1789
01:43:01,909 --> 01:43:03,577
Next are right.

1790
01:43:03,577 --> 01:43:08,480
So this is the the big discussion item.

1791
01:43:08,480 --> 01:43:11,648
So these are the potential projects

1792
01:43:11,952 --> 01:43:16,752
that we have identified for this fiscal year.

1793
01:43:16,823 --> 01:43:20,327
What I will say is that

1794
01:43:20,327 --> 01:43:25,127
we have $120,000 currently budgeted in this fiscal year.

1795
01:43:26,660 --> 01:43:30,737
We are bringing forth right now $230,000 of projects.

1796
01:43:30,737 --> 01:43:34,508
So obviously there's some pick and choose or, you know,

1797
01:43:34,508 --> 01:43:38,879
if there's other other potential products or projects that this committee

1798
01:43:38,879 --> 01:43:42,182
wants to bring up or identify for management.

1799
01:43:42,182 --> 01:43:45,152
That's obviously open as well.

1800
01:43:45,152 --> 01:43:47,154
So first one code enforcement.

1801
01:43:47,154 --> 01:43:49,456
So the 311 response time review.

1802
01:43:49,456 --> 01:43:54,394
So evaluating the city's code enforcement complaint response process,

1803
01:43:54,394 --> 01:44:00,394
really focusing on response times staffing availability and service delivery

1804
01:44:00,434 --> 01:44:02,336
a property tax review.

1805
01:44:02,336 --> 01:44:07,507
So inventory property tax revenues and compared to relevant legislation

1806
01:44:07,507 --> 01:44:11,778
and agreements to identify opportunities to improve the understanding

1807
01:44:11,778 --> 01:44:17,178
of those distributions, county service delivery and intergovernmental funding.

1808
01:44:18,118 --> 01:44:22,623
So there has been also talks about the investment cash flow review.

1809
01:44:22,623 --> 01:44:26,860
So you know that this past the school year we looked at the actual policy.

1810
01:44:26,860 --> 01:44:30,564
So taking that policy and looking at the current processes

1811
01:44:30,564 --> 01:44:34,701
that the city has and making sure that those align with the policy,

1812
01:44:34,701 --> 01:44:41,341
making sure that it's, you know, cohesive and fluid in efficiency study.

1813
01:44:41,341 --> 01:44:43,430
So evaluating the efficiency

1814
01:44:43,430 --> 01:44:47,781
and effectiveness of the city's permitting process, really identifying

1815
01:44:47,781 --> 01:44:50,781
opportunities to streamline workflows, reduce

1816
01:44:50,817 --> 01:44:53,217
process times, customer service

1817
01:44:53,887 --> 01:44:58,625
and overall service delivery that grant management follow up.

1818
01:44:58,625 --> 01:44:59,993
Something that we kind of talked about.

1819
01:44:59,993 --> 01:45:04,640
So this you know, this one we had really scoped around looking

1820
01:45:04,640 --> 01:45:08,602
at those individual recommendations from that report and really digging deeper

1821
01:45:08,602 --> 01:45:12,606
into making sure that the city had completed those recommendations.

1822
01:45:12,606 --> 01:45:18,445
You know, obviously, room for suggestions by vice mayor about potential,

1823
01:45:18,445 --> 01:45:23,583
you know, other opportunities for that scope, the recruitment and retention study

1824
01:45:23,583 --> 01:45:26,953
that's really assessing the city's recruitment and retention practices,

1825
01:45:26,953 --> 01:45:31,425
it really identifying opportunities to improve hiring efficiency,

1826
01:45:31,425 --> 01:45:35,696
the and really the city's ability to attract and retain

1827
01:45:35,696 --> 01:45:39,299
those qualified employees and making sure that there's long

1828
01:45:39,299 --> 01:45:42,899
term organizational stability for the city.

1829
01:45:43,603 --> 01:45:44,738
The last

1830
01:45:44,738 --> 01:45:48,909
two, that's the program management and recommendation validations.

1831
01:45:48,909 --> 01:45:53,947
Those two kind of go hand in hand with each other and or really what we do

1832
01:45:53,947 --> 01:45:58,151
on a quarterly basis with you all, as well as looking at the fraud

1833
01:45:58,151 --> 01:46:01,955
and abuse hotline and validating those recommendations

1834
01:46:01,955 --> 01:46:04,355
when it comes time.

1835
01:46:06,226 --> 01:46:06,793
Thank you

1836
01:46:06,793 --> 01:46:10,970
for the introduction to the report.

1837
01:46:10,970 --> 01:46:14,701
And we we've all had well, we've all reflected on these.

1838
01:46:14,701 --> 01:46:15,235
Comet.

1839
01:46:15,235 --> 01:46:18,835
My introductory introductory comments here are.

1840
01:46:20,273 --> 01:46:23,510
Internal audit is a key function that the city hasn't

1841
01:46:23,510 --> 01:46:27,147
had prior to six or so years ago.

1842
01:46:27,147 --> 01:46:32,285
I think it's a fundamental element, I think within

1843
01:46:32,285 --> 01:46:35,422
a good, good practice for cities.

1844
01:46:35,422 --> 01:46:40,427
And it was a response in part to the deportation and embezzlement

1845
01:46:40,427 --> 01:46:41,461
that occurred.

1846
01:46:41,461 --> 01:46:45,610
And so it in my memory

1847
01:46:45,298 --> 01:46:48,602
and very happy to see that there is an internal audit function.

1848
01:46:48,602 --> 01:46:51,671
So it's not limited only to the financial elements

1849
01:46:51,671 --> 01:46:54,841
that Baker Tilly has pointed out here.

1850
01:46:54,841 --> 01:46:56,710
It's also can be operational.

1851
01:46:56,710 --> 01:46:59,246
So that's very exciting as well.

1852
01:46:59,246 --> 01:47:04,317
My clarifying question after my introduction is how much input

1853
01:47:04,317 --> 01:47:09,717
did were you taking from prior audit committee discussions

1854
01:47:10,590 --> 01:47:15,629
over the past year or and or city staff input?

1855
01:47:15,629 --> 01:47:19,266
That's a great question and definitely looked at,

1856
01:47:19,266 --> 01:47:21,268
you know, what we have talked about reflected

1857
01:47:21,268 --> 01:47:25,138
what we've talked about over the past year here at the audit committee.

1858
01:47:25,138 --> 01:47:29,176
We also met with Jonathan and his team, as well

1859
01:47:29,176 --> 01:47:33,246
as the city manager's team as well, to kind of talk about those inputs.

1860
01:47:33,246 --> 01:47:36,160
But, you know, thinking about the overarching

1861
01:47:36,160 --> 01:47:40,120
looking at the enterprise risk assessment, that's a huge tool that our team uses to

1862
01:47:40,120 --> 01:47:42,589
help utilize what would be really relevant,

1863
01:47:42,589 --> 01:47:46,126
what are potentially high risk areas that we had identified,

1864
01:47:46,126 --> 01:47:51,264
you know, prior years that the city might want to look into

1865
01:47:51,264 --> 01:47:53,264
their clarifying questions.

1866
01:47:54,401 --> 01:47:55,100
Question.

1867
01:47:55,100 --> 01:47:59,201
Well, so trying to prioritize this list

1868
01:48:01,740 --> 01:48:06,513
because this this is not this is put in order of the cost almost.

1869
01:48:06,513 --> 01:48:10,817
Or were you trying to share this as a priority or how did it end up?

1870
01:48:10,817 --> 01:48:16,389
You know, I would say it's I don't think that there's any priority.

1871
01:48:16,389 --> 01:48:18,859
It was just kind of a list of projects.

1872
01:48:18,859 --> 01:48:22,662
And I don't think we really even have a it's not any order

1873
01:48:22,662 --> 01:48:26,600
other than the last two are kind of things that we

1874
01:48:26,600 --> 01:48:30,837
we have to have program management so that one and then the validation

1875
01:48:30,837 --> 01:48:34,708
or recommendation validation is something that the committee in the city

1876
01:48:34,708 --> 01:48:36,142
has always encouraged.

1877
01:48:36,142 --> 01:48:39,446
Okay. And we're budgeted at 120,000.

1878
01:48:39,446 --> 01:48:42,682
But we can go we can go higher than that.

1879
01:48:42,682 --> 01:48:44,784
And then council can knock some things off.

1880
01:48:44,784 --> 01:48:48,855
I'm wondering with the investment cash flow review,

1881
01:48:48,855 --> 01:48:53,393
if staff feels comfortable with the cash flow policy that we have right now.

1882
01:48:53,393 --> 01:48:56,897
Because I saw that you did like you moved the money to get it down

1883
01:48:56,897 --> 01:49:01,201
to the 5 million in that operating account and you're using it.

1884
01:49:01,201 --> 01:49:05,739
So to me, it's this is a problem that you are

1885
01:49:05,739 --> 01:49:10,430
have have kind of for the present time.

1886
01:49:10,430 --> 01:49:11,878
It's kind of solved in my opinion.

1887
01:49:11,878 --> 01:49:14,548
So I would say no to that one.

1888
01:49:14,548 --> 01:49:15,982
Do you have a thought on that.

1889
01:49:15,982 --> 01:49:16,750
Is that something.

1890
01:49:16,750 --> 01:49:20,530
But or for this list, are there things that you strongly

1891
01:49:20,530 --> 01:49:25,250
interested in because I can come up with for that, like permitting 311

1892
01:49:25,250 --> 01:49:30,764
property tax and recruitment that that I would be interested in.

1893
01:49:30,764 --> 01:49:36,803
I'm not sure if the recruitment part is, is particularly necessary

1894
01:49:36,803 --> 01:49:41,410
at this particular time, because we've just had a lot of

1895
01:49:41,410 --> 01:49:44,277
a number of hires, but the permitting,

1896
01:49:44,277 --> 01:49:48,515
we hear a lot about that, a lot about three, one one.

1897
01:49:48,515 --> 01:49:52,115
And then the property tax review,

1898
01:49:52,719 --> 01:49:55,322
I can I can share

1899
01:49:55,322 --> 01:49:57,722
what this is about.

1900
01:50:00,360 --> 01:50:01,394
Which is

1901
01:50:01,394 --> 01:50:05,799
because it has to go to our sheriff's contract.

1902
01:50:05,799 --> 01:50:07,799
We're well.

1903
01:50:08,735 --> 01:50:13,673
But it goes into the tariffs contract and trying to figure out

1904
01:50:13,673 --> 01:50:18,445
the actual numbers that are coming to the city, because I'm able to estimate.

1905
01:50:18,445 --> 01:50:22,816
But I need help with some of these because the property tax embed

1906
01:50:22,816 --> 01:50:24,951
some other taxes in it and sales

1907
01:50:24,951 --> 01:50:28,755
tax, it's not super clear where it's all getting distributed.

1908
01:50:28,755 --> 01:50:35,280
And and I don't want to be when we're doing our negotiations saying falsehoods.

1909
01:50:35,280 --> 01:50:37,280
The county.

1910
01:50:37,364 --> 01:50:42,102
But I am saying that they get over 100 million from Cupertino each year.

1911
01:50:42,102 --> 01:50:44,370
And that's something that we need to have.

1912
01:50:44,370 --> 01:50:47,700
It can't be. I'm generating this number.

1913
01:50:47,700 --> 01:50:50,143
That's which is why I, I would definitely support

1914
01:50:50,143 --> 01:50:54,343
looking at the property tax distribution item,

1915
01:50:54,347 --> 01:50:58,818
but were there some favorites in in the list?

1916
01:50:58,818 --> 01:51:02,122
Yeah, I will say that the recruitment and retention study, that was something

1917
01:51:02,122 --> 01:51:07,227
that the city manager's office or city manager had requested current.

1918
01:51:07,227 --> 01:51:07,794
Okay.

1919
01:51:07,794 --> 01:51:12,298
And I think three three, one one and permitting were also pretty

1920
01:51:12,298 --> 01:51:15,298
strong contenders is so I,

1921
01:51:18,710 --> 01:51:22,271
I wonder whether for property tax review.

1922
01:51:27,881 --> 01:51:29,482
Is this a corporate

1923
01:51:29,482 --> 01:51:33,286
for the Baker Tilly to do this study or.

1924
01:51:33,286 --> 01:51:36,286
It's something really our

1925
01:51:37,390 --> 01:51:42,190
lobbyist lobbyist has been doing that study. No.

1926
01:51:42,495 --> 01:51:43,830
So they don't.

1927
01:51:43,830 --> 01:51:47,801
So the Baker Tilly has this expertise

1928
01:51:47,801 --> 01:51:49,801
study property tax.

1929
01:51:50,403 --> 01:51:53,740
So Colleen I'm going to lean on you on this one.

1930
01:51:53,740 --> 01:51:54,140
Sure.

1931
01:51:54,140 --> 01:51:57,177
So we do have folks in our public sector

1932
01:51:57,177 --> 01:52:01,381
financial operations group who can provide advisory on this.

1933
01:52:01,381 --> 01:52:04,984
I would say from an internal audit perspective.

1934
01:52:04,984 --> 01:52:07,821
We actually talked about this with the chair last week.

1935
01:52:07,821 --> 01:52:10,857
It's right on the line because it deals with policy

1936
01:52:10,857 --> 01:52:14,594
a little bit more than it deals with maybe

1937
01:52:14,594 --> 01:52:18,865
operations or the type of work that internal audit typically does.

1938
01:52:18,865 --> 01:52:22,235
And so while we do have the capability to do the work,

1939
01:52:22,235 --> 01:52:23,436
we want to be pretty careful,

1940
01:52:23,436 --> 01:52:27,907
as your internal auditor about how the information is used.

1941
01:52:27,907 --> 01:52:31,444
And we also need to be a little bit thoughtful.

1942
01:52:31,444 --> 01:52:35,115
The county of Santa Clara is not currently a Baker Tilly client,

1943
01:52:35,115 --> 01:52:38,551
but the housing Authority, I believe is.

1944
01:52:38,551 --> 01:52:40,720
So we want to be thoughtful about independence as well.

1945
01:52:40,720 --> 01:52:43,857
So we would want to scope this really carefully with you

1946
01:52:43,857 --> 01:52:47,227
should you, the committee choose to do this.

1947
01:52:47,227 --> 01:52:49,829
And I understand, mayor, that this is a priority of yours.

1948
01:52:49,829 --> 01:52:53,166
So if we did choose to move forward, we'd want to sit down and

1949
01:52:53,166 --> 01:52:57,804
scope out in detail with you so that we both feel comfortable with that.

1950
01:52:57,804 --> 01:53:00,707
I think that's maybe a clarifying question for me

1951
01:53:00,707 --> 01:53:04,911
is I look at these as high level priority items.

1952
01:53:04,911 --> 01:53:10,383
Once we we get the list agreed upon here as a committee, that we

1953
01:53:10,383 --> 01:53:14,921
then are sending back to city staff and internal audit to scope more,

1954
01:53:14,921 --> 01:53:19,259
as well as forwarding up to city council for the budgeting look.

1955
01:53:19,259 --> 01:53:22,695
So I think there's a lot of behind the scenes scoping.

1956
01:53:22,695 --> 01:53:26,990
We can call it scoping, I guess to the extent

1957
01:53:26,990 --> 01:53:30,103
any committee member maybe has an interest in that, we could

1958
01:53:30,103 --> 01:53:33,239
either set up a subcommittee which can consist of that one

1959
01:53:33,239 --> 01:53:37,977
committee member, or we can have up to two of us depending,

1960
01:53:37,977 --> 01:53:42,348
or I take direction from city staff to since

1961
01:53:42,348 --> 01:53:46,419
there's a number of projects here and we can't, I don't think internal audit

1962
01:53:46,419 --> 01:53:50,790
can do many of these without information and support from the city staff.

1963
01:53:50,790 --> 01:53:55,261
So to the extent we're scoping things, I would presume city staff's got a big

1964
01:53:55,261 --> 01:53:56,620
input into

1965
01:53:56,620 --> 01:54:01,201
what can be done and when can it be done and who's doing it and things like that.

1966
01:54:01,201 --> 01:54:05,104
So how do you suggest maybe this unfold and remind us

1967
01:54:05,104 --> 01:54:09,709
how this is unfolded in prior years? So

1968
01:54:09,709 --> 01:54:11,444
the the top

1969
01:54:11,444 --> 01:54:16,416
is from what the mayor had pointed out as her top projects.

1970
01:54:16,416 --> 01:54:19,919
It looks like it's distributed across the city,

1971
01:54:19,919 --> 01:54:23,156
that it's not heavy on one particular department.

1972
01:54:23,156 --> 01:54:25,156
Right? Code enforcement

1973
01:54:25,325 --> 01:54:29,280
being a seed, recruitments probably going to be more along.

1974
01:54:29,280 --> 01:54:31,280
Community resources

1975
01:54:31,631 --> 01:54:35,435
permitting kind of crosses both seed and public work.

1976
01:54:35,435 --> 01:54:38,471
So there might be a little more of a challenge there.

1977
01:54:38,471 --> 01:54:44,277
But I'm sure Pauline and Chelsea would be able to work around

1978
01:54:44,277 --> 01:54:49,182
scheduling to ensure that there's not too much overlap there, right?

1979
01:54:49,182 --> 01:54:49,749
Yeah. Okay.

1980
01:54:49,749 --> 01:54:52,986
I don't want to speak for you guys, but yeah, so there would be

1981
01:54:52,986 --> 01:54:56,456
less of a draw on that, that one particular department.

1982
01:54:56,456 --> 01:55:02,829
And then if the the committee wanted to pursue one of the others

1983
01:55:02,829 --> 01:55:04,898
is probably closer to the finance,

1984
01:55:04,898 --> 01:55:08,167
whether that's the property tax or the grants management

1985
01:55:08,167 --> 01:55:12,272
or even the cash flow of the account, the committee wanted to pursue that one.

1986
01:55:12,272 --> 01:55:17,720
So as far as a from a staff

1987
01:55:17,911 --> 01:55:20,847
workload, I don't think that's as much of an issue.

1988
01:55:20,847 --> 01:55:26,920
Again, at the end of the day, if you pursue most of these or just even

1989
01:55:26,920 --> 01:55:32,792
those top three, you are looking to have a budget adjustment needed, right?

1990
01:55:32,792 --> 01:55:36,396
Because I think with those top three plus the recommended validations,

1991
01:55:36,396 --> 01:55:39,465
we're looking at about 180 I believe.

1992
01:55:39,465 --> 01:55:43,403
So we would have request a council to bring an additional 60 plus

1993
01:55:43,403 --> 01:55:44,237
if you wanted to add

1994
01:55:44,237 --> 01:55:47,473
either one or the other three, which would be property tax permitting,

1995
01:55:47,473 --> 01:55:52,345
I'm sorry, property tax and cash flow review or the grant management follow up.

1996
01:55:52,345 --> 01:55:56,716
If there was a another item that you wanted, a

1997
01:55:56,716 --> 01:56:00,620
follow up or additional item, whether that's I think.

1998
01:56:00,620 --> 01:56:02,620
Chair.

1999
01:56:03,256 --> 01:56:06,559
You know we we discussed possibly the

2000
01:56:06,559 --> 01:56:11,359
a a report of sorts to be provided

2001
01:56:11,431 --> 01:56:14,801
in terms of the fund balance or appropriate fund balance.

2002
01:56:14,801 --> 01:56:19,339
Conversations with Chelsea and Colleen have been more along the lines.

2003
01:56:19,339 --> 01:56:22,800
It's probably going to be more of a management report

2004
01:56:22,800 --> 01:56:27,408
rather than a full blown project on the previous.

2005
01:56:29,515 --> 01:56:33,115
No. And so that was just

2006
01:56:33,319 --> 01:56:35,955
I'm sorry, that's not on here, because it's not really.

2007
01:56:35,955 --> 01:56:40,927
From conversations with Colleen and Chelsea, it's not so much of a project.

2008
01:56:40,927 --> 01:56:45,310
It's more it would be closely to a report to kind of, hey, this is best practice,

2009
01:56:45,310 --> 01:56:48,968
this portfolio and whatnot, kind of something along the lines.

2010
01:56:48,968 --> 01:56:54,307
And there would be obviously there would be some sort of calling.

2011
01:56:54,307 --> 01:56:55,208
Correct me if I'm wrong.

2012
01:56:55,208 --> 01:56:58,478
It's more of a some research kind of best practice.

2013
01:56:58,478 --> 01:56:59,112
Not so much.

2014
01:56:59,112 --> 01:57:01,147
What is the city doing and how should a city.

2015
01:57:01,147 --> 01:57:04,884
Because a lot of that's really policy that's driving that.

2016
01:57:04,884 --> 01:57:05,785
Yeah. And just a follow up.

2017
01:57:05,785 --> 01:57:07,687
We would most of our recommendations,

2018
01:57:07,687 --> 01:57:11,624
all of our recommendations are going to come be based off of the guidance.

2019
01:57:11,624 --> 01:57:16,396
So that's why we really said, you know looking at the guidance

2020
01:57:16,396 --> 01:57:17,797
we could put that in a report.

2021
01:57:17,797 --> 01:57:21,100
But is that really beneficial in regard

2022
01:57:21,100 --> 01:57:24,437
to the the study that's not on this list.

2023
01:57:24,437 --> 01:57:25,738
Correct. Verify that.

2024
01:57:25,738 --> 01:57:28,441
So I think we're still trying to get clarifying questions.

2025
01:57:28,441 --> 01:57:30,977
So you have a question vice Mayor.

2026
01:57:30,977 --> 01:57:34,313
So the other question is regarding

2027
01:57:34,313 --> 01:57:37,313
the permitting efficiency study. So

2028
01:57:39,419 --> 01:57:40,386
I think

2029
01:57:40,386 --> 01:57:45,580
one of the work programs this year has been

2030
01:57:45,580 --> 01:57:51,164
permitting streamlining, and the Planning Commission is already working on it

2031
01:57:51,164 --> 01:57:55,680
towards the end of their review and

2032
01:57:55,680 --> 01:57:57,468
going to be streamlining.

2033
01:57:57,603 --> 01:58:01,740
So I assume they already done some study.

2034
01:58:01,740 --> 01:58:04,510
If they are doing the policy change

2035
01:58:04,510 --> 01:58:06,910
modification on that. So

2036
01:58:09,480 --> 01:58:12,480
so I'm not sure.

2037
01:58:13,190 --> 01:58:15,210
So this permitting efficiency

2038
01:58:15,210 --> 01:58:20,259
are you going to look at in 2026 year data.

2039
01:58:20,259 --> 01:58:24,230
And then but then that's we they

2040
01:58:24,230 --> 01:58:29,680
probably we are probably going to already change things next year.

2041
01:58:29,680 --> 01:58:34,407
So how is I think this is something we really need

2042
01:58:34,407 --> 01:58:36,407
maybe last year.

2043
01:58:36,909 --> 01:58:40,480
So they sure about the timing of that.

2044
01:58:40,480 --> 01:58:40,880
Okay.

2045
01:58:40,880 --> 01:58:45,151
Let's see the city staff have a comment on I guess you're more attuned.

2046
01:58:45,151 --> 01:58:46,953
This is really a scoping thing.

2047
01:58:46,953 --> 01:58:51,424
Is this something you already worked with, the planning about the timing of.

2048
01:58:51,424 --> 01:58:53,159
Yeah, no.

2049
01:58:53,159 --> 01:58:54,360
The permitting.

2050
01:58:54,360 --> 01:58:58,698
It's actually that your top contenders actually came from city manager's office,

2051
01:58:58,698 --> 01:59:02,401
which was the code enforcement response time review

2052
01:59:02,401 --> 01:59:06,706
along with permitting efficiency, setting the recruitment and retention study.

2053
01:59:06,706 --> 01:59:11,100
That was the city manager's office recommendations.

2054
01:59:11,100 --> 01:59:14,780
And so whether that has kind of shifted

2055
01:59:14,780 --> 01:59:20,180
a little bit due to the Planning Commission involvement.

2056
01:59:20,386 --> 01:59:20,987
Probably at the

2057
01:59:20,987 --> 01:59:23,990
end of the day that I'm not sure.

2058
01:59:23,990 --> 01:59:28,327
Well, in terms of testing and what period it's going to cover.

2059
01:59:28,327 --> 01:59:29,495
Look to Colleen.

2060
01:59:29,495 --> 01:59:32,698
Yeah, we I mean, we can we can work with the city on that.

2061
01:59:32,698 --> 01:59:36,502
So, you know, depending on the scheduling of when we do that project,

2062
01:59:36,502 --> 01:59:40,406
that's something that we always work with city management on, as well

2063
01:59:40,406 --> 01:59:46,546
as really defining the scope and timing, the time frame that we're looking into.

2064
01:59:46,546 --> 01:59:49,782
You know that those are all really refined.

2065
01:59:49,782 --> 01:59:53,386
Once we get an idea of what projects to be working on.

2066
01:59:53,386 --> 01:59:57,456
So in this situation, let's say there are some adjustments to the workflow.

2067
01:59:57,456 --> 02:00:00,259
And that occurs in the first half of the fiscal year.

2068
02:00:00,259 --> 02:00:03,696
Maybe Baker Tilly can do the review in the second half

2069
02:00:03,696 --> 02:00:07,990
to see how that's being implemented.

2070
02:00:07,990 --> 02:00:08,601
If that that's direction.

2071
02:00:08,601 --> 02:00:10,601
Right. Question.

2072
02:00:11,704 --> 02:00:15,740
It does seem like the recommendation

2073
02:00:15,740 --> 02:00:19,111
validations is something that we do want to continue.

2074
02:00:19,111 --> 02:00:21,380
Like we have to ask to have that.

2075
02:00:21,380 --> 02:00:22,481
Yeah. Go on.

2076
02:00:22,481 --> 02:00:26,419
And what is exactly this the program management again I'm sorry.

2077
02:00:26,419 --> 02:00:32,325
So that's, you know, having me here right now, doing our monthly updates

2078
02:00:32,325 --> 02:00:35,595
with Jonathan and team to talk about project status,

2079
02:00:35,595 --> 02:00:39,699
reviewing the fraud and abuse hotline, making sure, monitoring that,

2080
02:00:39,699 --> 02:00:42,735
creating these reports, that sort of thing.

2081
02:00:42,735 --> 02:00:46,472
That seems almost like the recommendation validation

2082
02:00:46,472 --> 02:00:50,142
like like you need to continue that.

2083
02:00:50,142 --> 02:00:51,244
Right. Those two.

2084
02:00:51,244 --> 02:00:55,248
And that's so typically those two are we almost combined.

2085
02:00:55,248 --> 02:00:56,682
You know we've done in prior years.

2086
02:00:56,682 --> 02:01:01,821
And just those are kind of the the ones that we have to do okay.

2087
02:01:01,821 --> 02:01:03,189
It's like a base. Yes.

2088
02:01:03,189 --> 02:01:06,926
So we would end up if you went with recruitment three on one

2089
02:01:06,926 --> 02:01:13,526
and permitting you're at 140 and then so 170 out of the 270.

2090
02:01:14,500 --> 02:01:20,406
So you could still send it to council with that even though it's above the 120.

2091
02:01:20,406 --> 02:01:25,111
I don't know if property tax could be done by a combination

2092
02:01:25,111 --> 02:01:27,790
of HDL and city staff.

2093
02:01:27,790 --> 02:01:29,790
And Jason,

2094
02:01:30,216 --> 02:01:34,920
you know, and how perfect do those numbers need to be in order to advocate?

2095
02:01:34,920 --> 02:01:38,858
So for Colleen's question about what the numbers are going to be used for,

2096
02:01:38,858 --> 02:01:43,562
it'll be used for advocacy for the city.

2097
02:01:43,562 --> 02:01:46,632
So we have this disparity between the amount of property

2098
02:01:46,632 --> 02:01:50,200
tax our city gets versus other cities.

2099
02:01:50,200 --> 02:01:52,872
We're much lower for the property tax that we get back.

2100
02:01:52,872 --> 02:01:57,310
And that's really the the crux of the matter is to

2101
02:01:57,310 --> 02:02:02,982
to see what we can do to advocate for the city moving forward long term

2102
02:02:02,982 --> 02:02:10,782
through some sort of legislative change in Sacramento, if at all possible, or.

2103
02:02:10,923 --> 02:02:12,725
If there's anything we can do about that.

2104
02:02:12,725 --> 02:02:16,862
So that's why the numbers need to be defensible.

2105
02:02:16,862 --> 02:02:22,568
But I'm not sure if Baker Tilly's the right

2106
02:02:22,568 --> 02:02:24,804
entity to do that.

2107
02:02:24,804 --> 02:02:31,770
And if you feel comfortable knowing what we're going to be using the numbers for,

2108
02:02:31,770 --> 02:02:33,477
I have some thoughts.

2109
02:02:33,479 --> 02:02:35,479
And I first

2110
02:02:36,782 --> 02:02:40,353
and foremost, you're reliant on county data, right?

2111
02:02:40,353 --> 02:02:43,122
The county is the ultimate tax collector.

2112
02:02:43,122 --> 02:02:47,259
And so you will be relying on county data for all of this analysis

2113
02:02:47,259 --> 02:02:48,961
and what is available to you.

2114
02:02:48,961 --> 02:02:52,331
And ideally everything is available publicly.

2115
02:02:52,331 --> 02:02:55,601
But the reliance in cooperation with

2116
02:02:55,601 --> 02:02:59,405
the county is going to be really important through this process as well.

2117
02:02:59,405 --> 02:03:01,405
It may

2118
02:03:01,807 --> 02:03:03,876
it may be worthwhile for you all to consider who

2119
02:03:03,876 --> 02:03:07,113
you would like to be involved in that just from that perspective,

2120
02:03:07,113 --> 02:03:10,149
because your relationship with the county is really important, right?

2121
02:03:10,149 --> 02:03:14,587
It's not limited to just this, but you have to work together on many items.

2122
02:03:14,587 --> 02:03:17,990
So I would recommend talking maybe with the city manager

2123
02:03:17,990 --> 02:03:22,728
and with the finance director a little bit more about how you'd like to go

2124
02:03:22,728 --> 02:03:28,601
about the work before you engage someone to to do it.

2125
02:03:28,601 --> 02:03:32,705
We certainly can do that analysis in our professional standards,

2126
02:03:32,705 --> 02:03:34,940
and we're not allowed to advocate for our clients.

2127
02:03:34,940 --> 02:03:39,779
But we can make your recommendations or we can provide data.

2128
02:03:39,779 --> 02:03:41,779
Okay.

2129
02:03:42,515 --> 02:03:45,818
So my question is what's most useful here?

2130
02:03:45,818 --> 02:03:49,789
This is both for the committee and staff and internal auditors.

2131
02:03:49,789 --> 02:03:54,360
We all of these projects in some sense, we don't have a budget constraint

2132
02:03:54,360 --> 02:04:00,433
because we can, as the mayor indicated, and all of these up and say, you know,

2133
02:04:00,433 --> 02:04:04,870
if you think of some more, add those to or

2134
02:04:04,870 --> 02:04:08,874
we could try to delete some of these or

2135
02:04:08,874 --> 02:04:10,543
some other hybrid approach.

2136
02:04:10,543 --> 02:04:13,179
So how do we make the rest of our meaning of fishing here?

2137
02:04:13,179 --> 02:04:16,782
I know we had a great discussion on grant management follow up, and there's

2138
02:04:16,782 --> 02:04:21,387
probably lots of follow up items that we could specify in the scoping.

2139
02:04:21,387 --> 02:04:25,157
And vice mayor had some really good comments that we don't want to forget that

2140
02:04:25,157 --> 02:04:28,360
she had them, but I'm not sure if this is the

2141
02:04:28,360 --> 02:04:32,640
maybe we if we said we wanted to move forward with grant management follow up,

2142
02:04:32,640 --> 02:04:35,568
then we need some more input and city staff would assemble that scoping

2143
02:04:35,568 --> 02:04:38,300
and maybe solicit the vice mayor's comments.

2144
02:04:38,300 --> 02:04:39,672
I'm just talking out loud here.

2145
02:04:39,672 --> 02:04:42,308
I'm trying to figure a way to move forward with this.

2146
02:04:42,308 --> 02:04:44,643
Do we really want to delete any of these items?

2147
02:04:44,643 --> 02:04:47,460
Is there an app that's one way to go about it? I'm not.

2148
02:04:47,460 --> 02:04:49,148
I don't have an appetite to delete any of them.

2149
02:04:49,148 --> 02:04:55,120
Since I've removed budget constraint and the personnel constraint, you could.

2150
02:04:55,120 --> 02:04:55,988
Thoughts, right.

2151
02:04:55,988 --> 02:05:00,960
You could prioritize the only one that I could see potentially getting removed

2152
02:05:00,960 --> 02:05:05,831
to see cash flow review investment and cash flow review at this time.

2153
02:05:05,831 --> 02:05:10,302
But if by investment we mean talking about reserves,

2154
02:05:10,302 --> 02:05:15,508
if that's if that could be assumed to be embedded in that item, then maybe

2155
02:05:15,508 --> 02:05:22,181
add that word into the project description to get the best practices on reserves.

2156
02:05:22,181 --> 02:05:26,519
Because I have been wanting to hear that.

2157
02:05:26,519 --> 02:05:29,722
So so that was the only one that I could remove.

2158
02:05:29,722 --> 02:05:33,559
But if you add in the reserves even more than I really want it.

2159
02:05:33,559 --> 02:05:34,159
Yeah.

2160
02:05:34,159 --> 02:05:37,960
And then you could, we could

2161
02:05:37,960 --> 02:05:40,466
prioritize, but also like, like recommended

2162
02:05:40,466 --> 02:05:42,167
validations and program management.

2163
02:05:42,167 --> 02:05:44,436
Seems like that has to move forward.

2164
02:05:44,436 --> 02:05:47,506
So I would put that on the top of the list

2165
02:05:47,506 --> 02:05:51,100
as these are these two were deemed necessary.

2166
02:05:51,100 --> 02:05:54,460
And then I and then we could

2167
02:05:54,460 --> 02:05:56,446
prioritize recruitment 311 or permitting

2168
02:05:58,784 --> 02:06:02,121
and just give a prioritized list to the council.

2169
02:06:02,121 --> 02:06:07,590
And and they can discuss it with the entire list though available.

2170
02:06:07,590 --> 02:06:08,861
Sure. I like that idea. Yeah.

2171
02:06:08,861 --> 02:06:13,980
So before we go too much into talking about that, we're still showing.

2172
02:06:13,980 --> 02:06:14,330
Why don't we just.

2173
02:06:14,330 --> 02:06:18,233
Are there any comments from the public?

2174
02:06:18,304 --> 02:06:20,272
Didn't hear I see.

2175
02:06:20,272 --> 02:06:23,742
No, no probably or and we have great.

2176
02:06:23,742 --> 02:06:26,712
So they come late. So

2177
02:06:26,712 --> 02:06:27,146
yeah sure.

2178
02:06:27,146 --> 02:06:30,583
Now we can maybe move a motion to if you want.

2179
02:06:30,583 --> 02:06:34,620
So the recording of grant management follow up.

2180
02:06:34,620 --> 02:06:38,820
It says follow up on outstanding recommendations.

2181
02:06:39,580 --> 02:06:43,258
Assess how the city has made so.

2182
02:06:43,596 --> 02:06:49,635
But so here you are referring to the grants management final report.

2183
02:06:49,635 --> 02:06:52,304
The recommendations made their correct.

2184
02:06:52,304 --> 02:06:56,442
So based on the one year review right.

2185
02:06:56,442 --> 02:07:00,446
There is a lot of really great recommendations.

2186
02:07:00,446 --> 02:07:02,846
They're already on.

2187
02:07:04,183 --> 02:07:04,483
Right.

2188
02:07:04,483 --> 02:07:05,484
And so you were saying

2189
02:07:05,484 --> 02:07:08,787
does this project involve follow up on those recommendations.

2190
02:07:08,787 --> 02:07:10,122
Does that.

2191
02:07:10,122 --> 02:07:13,722
So that project will be working

2192
02:07:15,160 --> 02:07:19,960
with the city staff to implement those recommendations.

2193
02:07:20,199 --> 02:07:21,967
That's in that report.

2194
02:07:21,967 --> 02:07:22,301
Right.

2195
02:07:22,301 --> 02:07:27,720
So doing it really doesn't mean the council has to approve

2196
02:07:27,720 --> 02:07:31,710
those recommendations rather than just receive the report,

2197
02:07:31,710 --> 02:07:35,447
because those recommendations, I think some of them are

2198
02:07:35,447 --> 02:07:40,247
pretty involved in terms of implementation and staff.

2199
02:07:41,387 --> 02:07:43,387
The report

2200
02:07:45,524 --> 02:07:49,895
will be forwarded to council and believe council's

2201
02:07:49,895 --> 02:07:53,632
action is just to receive the report,

2202
02:07:53,632 --> 02:07:55,701
as that's how it's been in the past.

2203
02:07:55,701 --> 02:07:56,669
Okay.

2204
02:07:56,669 --> 02:07:58,669
But then

2205
02:07:59,204 --> 02:08:04,176
so the staff will decide, I guess, some priority

2206
02:08:04,176 --> 02:08:09,348
on what the recommendation is to implement and how.

2207
02:08:09,348 --> 02:08:12,217
Maybe if I could outline how follow up on that,

2208
02:08:12,217 --> 02:08:14,586
maybe all the recommendations in that report

2209
02:08:14,586 --> 02:08:18,190
would go into the equivalent of the 79 number that we saw.

2210
02:08:18,190 --> 02:08:20,926
And then staff will talk with internal audit,

2211
02:08:20,926 --> 02:08:25,300
and some of the things will go away because of the new

2212
02:08:25,300 --> 02:08:26,699
grant management analyst

2213
02:08:26,699 --> 02:08:29,768
that's been brought on, the new policy that's apparently out there.

2214
02:08:29,768 --> 02:08:31,537
And then the internal audit would evaluate

2215
02:08:31,537 --> 02:08:34,740
whether those two facts are actually true, and then they would put it

2216
02:08:34,740 --> 02:08:36,475
in the resolution column.

2217
02:08:36,475 --> 02:08:39,945
Is that how you would envision it?

2218
02:08:39,945 --> 02:08:40,846
That is one way.

2219
02:08:40,846 --> 02:08:42,810
Yes, absolutely.

2220
02:08:42,810 --> 02:08:47,553
You know, I know Vice Mayor, you had other areas that you wanted to look into.

2221
02:08:47,553 --> 02:08:50,589
So that's I mean, the these are potential,

2222
02:08:50,589 --> 02:08:56,610
you know, obviously we can mold them to what is most beneficial for the city

2223
02:08:56,610 --> 02:09:00,861
and what management thinks they can take on.

2224
02:09:01,867 --> 02:09:03,402
Does that help?

2225
02:09:03,402 --> 02:09:04,203
Yeah.

2226
02:09:04,203 --> 02:09:09,740
So I guess go back to what we talked about

2227
02:09:09,740 --> 02:09:11,474
some earlier grants that

2228
02:09:12,144 --> 02:09:14,544
we had concerns on.

2229
02:09:16,815 --> 02:09:18,815
So that may.

2230
02:09:20,486 --> 02:09:23,486
Require some case study on

2231
02:09:24,423 --> 02:09:26,258
how they those come about.

2232
02:09:26,258 --> 02:09:29,361
One example is the augmented reality app.

2233
02:09:29,361 --> 02:09:33,665
And I think another example is the city.

2234
02:09:33,665 --> 02:09:36,650
We received a grant

2235
02:09:36,635 --> 02:09:42,908
to redevelop the heart of the city plan, which the council never requested,

2236
02:09:42,908 --> 02:09:45,908
but the city got almost $500,000

2237
02:09:46,645 --> 02:09:49,450
grant, I think 450. And.

2238
02:09:52,484 --> 02:09:54,219
By the same grant

2239
02:09:54,219 --> 02:09:59,158
we could have applied for other things it could have gotten approved on.

2240
02:09:59,158 --> 02:10:02,995
Then at that time, the council didn't

2241
02:10:02,995 --> 02:10:07,666
see the need to redo the heart of the city plan,

2242
02:10:07,666 --> 02:10:10,660
so eventually didn't

2243
02:10:11,637 --> 02:10:15,307
didn't receive, didn't, I think, accept the grant.

2244
02:10:15,307 --> 02:10:20,979
So that's a wasted effort because there wasn't a

2245
02:10:20,979 --> 02:10:25,951
it wasn't synchronized with the Council biology at that time.

2246
02:10:25,951 --> 02:10:28,951
And and another example is

2247
02:10:30,189 --> 02:10:32,958
the ATP active transportation plan

2248
02:10:32,958 --> 02:10:36,695
that grants for we were being presented.

2249
02:10:36,695 --> 02:10:39,695
All this project is funded

2250
02:10:39,865 --> 02:10:42,265
by this particular grant.

2251
02:10:43,235 --> 02:10:48,307
Therefore we have to move forward with the project.

2252
02:10:48,307 --> 02:10:50,420
Otherwise we will lose the great.

2253
02:10:50,420 --> 02:10:51,577
It's always been like that, right?

2254
02:10:51,577 --> 02:10:54,913
The other one was also we already got the grant.

2255
02:10:54,913 --> 02:10:56,949
You have to approve the project.

2256
02:10:56,949 --> 02:11:01,220
So the ATP, we kind of we move forward with that.

2257
02:11:01,220 --> 02:11:08,420
But the same type of grant could also be applied to other

2258
02:11:09,261 --> 02:11:11,290
project in the city.

2259
02:11:11,290 --> 02:11:15,234
It doesn't have to be used for this particular project.

2260
02:11:15,234 --> 02:11:18,503
So this has been a way

2261
02:11:18,503 --> 02:11:22,103
that the grant approval is driving

2262
02:11:22,474 --> 02:11:27,274
council priority rather than the other way around.

2263
02:11:27,646 --> 02:11:30,916
I'm, you know, one recommendation I might make if

2264
02:11:30,916 --> 02:11:33,485
if the committee is interested in that project.

2265
02:11:33,485 --> 02:11:37,289
Sounds like, you know, with this new policy that has been

2266
02:11:37,289 --> 02:11:42,227
developed and implemented, we could take a look at that policy

2267
02:11:42,227 --> 02:11:47,900
and test it against certain grants to make sure that the process and,

2268
02:11:47,900 --> 02:11:53,138
you know, all the way to council approval is is done appropriately.

2269
02:11:53,138 --> 02:11:59,344
And we can see the process laid out against this new policy to make sure that,

2270
02:11:59,344 --> 02:12:02,848
you know, these instances that you're you're talking about.

2271
02:12:02,848 --> 02:12:04,216
Don't happen again.

2272
02:12:04,216 --> 02:12:06,818
Or is there something that could slip through the cracks?

2273
02:12:06,818 --> 02:12:07,152
Yeah.

2274
02:12:07,152 --> 02:12:11,156
If we can have some case studies, this case is

2275
02:12:11,156 --> 02:12:14,726
the new process would have handled this way.

2276
02:12:14,726 --> 02:12:16,962
That would be helpful.

2277
02:12:16,962 --> 02:12:19,362
And another example is

2278
02:12:20,198 --> 02:12:23,198
the BMR grant that went.

2279
02:12:23,635 --> 02:12:25,871
This is actually BMR fees.

2280
02:12:25,871 --> 02:12:27,406
So this is not great.

2281
02:12:27,406 --> 02:12:31,710
I'm not sure where it's applied but the BMI fees

2282
02:12:31,710 --> 02:12:37,110
has been used of to pay for legal fees.

2283
02:12:37,316 --> 02:12:41,753
That's not related exactly to below market rate

2284
02:12:41,753 --> 02:12:44,153
and for newspaper subscription.

2285
02:12:44,189 --> 02:12:48,994
And the public has brought this up to us.

2286
02:12:48,994 --> 02:12:50,994
So. This

2287
02:12:52,597 --> 02:12:54,997
is probably not Grant.

2288
02:12:55,600 --> 02:12:57,269
But then it's a.

2289
02:12:57,269 --> 02:13:00,269
Way how how we use

2290
02:13:01,340 --> 02:13:04,340
different funds for different function.

2291
02:13:05,177 --> 02:13:10,315
I think another example was I think we had we had

2292
02:13:10,315 --> 02:13:16,488
there was some issue with a hot grant that we somehow did not report properly.

2293
02:13:16,488 --> 02:13:18,488
That was right.

2294
02:13:18,991 --> 02:13:20,250
That was resolved.

2295
02:13:20,250 --> 02:13:21,994
But then

2296
02:13:21,994 --> 02:13:26,194
with the current process, prevent us from

2297
02:13:26,498 --> 02:13:28,567
making the same mistake again.

2298
02:13:28,567 --> 02:13:33,205
So maybe staff has some comments you bring up.

2299
02:13:33,205 --> 02:13:38,343
So we recently had a special revenue fund project,

2300
02:13:38,343 --> 02:13:42,147
and that addressed the concerns you had with the BMR,

2301
02:13:42,147 --> 02:13:47,686
which the new process has been essentially a lot of it ultimately was staffing.

2302
02:13:47,686 --> 02:13:49,686
Training and whatnot.

2303
02:13:52,724 --> 02:13:55,627
But yeah, so that one has been put to rest.

2304
02:13:55,627 --> 02:14:02,167
We have a implemented a process to address that, that that issue,

2305
02:14:02,167 --> 02:14:03,435
basically administrative overhead

2306
02:14:03,435 --> 02:14:07,139
is going to getting paid for from the general fund.

2307
02:14:07,139 --> 02:14:11,760
So BMR is just going towards building

2308
02:14:11,760 --> 02:14:14,146
BMR rather than having all this other

2309
02:14:14,146 --> 02:14:17,146
administrative stuff pulling from that.

2310
02:14:17,716 --> 02:14:23,210
There's been a lot more restrictions and even director oversight

2311
02:14:23,210 --> 02:14:26,792
of that specific fund to ensure that nothing slips

2312
02:14:26,792 --> 02:14:31,229
between the cracks, that it's more what we're allowing to or what

2313
02:14:31,229 --> 02:14:36,234
expenses are funneling through into that fund is are actually more restricted.

2314
02:14:36,234 --> 02:14:39,204
Although the the handbook is

2315
02:14:39,204 --> 02:14:42,204
could be more inclusive administratively.

2316
02:14:43,775 --> 02:14:46,545
We've restricted what actually goes to that. Okay.

2317
02:14:46,545 --> 02:14:50,315
So I think the hot green is probably related to CDBG grant.

2318
02:14:50,315 --> 02:14:50,882
Correct.

2319
02:14:50,882 --> 02:14:54,553
And so that will also go through

2320
02:14:54,553 --> 02:14:59,658
the same process or the different part that I believe it's a separate process

2321
02:14:59,658 --> 02:15:03,762
because it's kind of different rules apply to CDBG.

2322
02:15:03,762 --> 02:15:07,365
However it is managed by the same individuals.

2323
02:15:07,365 --> 02:15:09,365
So and Nikki.

2324
02:15:11,870 --> 02:15:14,506
He's quite knowledgeable with CDBG.

2325
02:15:14,506 --> 02:15:17,506
And so I'm quite.

2326
02:15:18,844 --> 02:15:21,947
Confident in his his abilities to ensure that the expenses

2327
02:15:21,947 --> 02:15:26,170
that are allocated to that fund are appropriate.

2328
02:15:26,170 --> 02:15:27,919
Yes. There.

2329
02:15:27,919 --> 02:15:28,587
Thank you.

2330
02:15:28,587 --> 02:15:32,787
So I did run this through Claude

2331
02:15:32,958 --> 02:15:37,158
and asked Claude to prioritize the list

2332
02:15:37,395 --> 02:15:38,964
in order of importance.

2333
02:15:38,964 --> 02:15:44,202
And they did it based on fiduciary risk, financial materiality, how directly

2334
02:15:44,202 --> 02:15:49,608
each ties to active city priorities and came up with the investment cash flow

2335
02:15:49,608 --> 02:15:53,845
first to last investment cash flow review for 35, they said.

2336
02:15:53,845 --> 02:15:57,516
Highest fiduciary risk category safeguarding public funds.

2337
02:15:57,516 --> 02:16:01,286
This is the kind of audit that protects against fraud, mismanagement, exposure

2338
02:16:01,286 --> 02:16:04,923
and is often treated as core recurring due diligence.

2339
02:16:04,923 --> 02:16:07,726
Number two, and I would argue who should do this?

2340
02:16:07,726 --> 02:16:10,962
But it was the property tax review directly

2341
02:16:10,962 --> 02:16:14,199
complements your ongoing EB eight allocation.

2342
02:16:14,199 --> 02:16:17,936
US and BLS swap work this audit could formalize

2343
02:16:17,936 --> 02:16:19,271
and validate the analysis

2344
02:16:19,271 --> 02:16:23,141
you're already doing informally and has real revenue implications.

2345
02:16:23,141 --> 02:16:27,780
I don't think they're overstating that, but three permitting efficiency study

2346
02:16:27,780 --> 02:16:27,679
highest fee

2347
02:16:27,679 --> 02:16:31,816
but permitting delays have direct economic development and revenue consequences.

2348
02:16:31,816 --> 02:16:35,520
Developer relations, fee capture, staff time, high visibility

2349
02:16:35,520 --> 02:16:39,424
and high potential return on investment for recruitment and retention.

2350
02:16:39,424 --> 02:16:44,663
Study 45,000 work workforce risk affects every other city function.

2351
02:16:44,663 --> 02:16:47,632
Turnover and vacancy costs compound over time.

2352
02:16:47,632 --> 02:16:50,735
This is foundational to organizational capacity.

2353
02:16:50,735 --> 02:16:54,606
Then 311 response time review important for service

2354
02:16:54,606 --> 02:16:59,544
delivery and public trust, but lower financial risk than the above.

2355
02:16:59,544 --> 02:17:03,381
Grant management follow up compliance driven grantor requirements

2356
02:17:03,381 --> 02:17:07,385
clawback risks but scoped as a follow up rather than a new risk area.

2357
02:17:07,385 --> 02:17:10,789
And then the last two were the program management and validations.

2358
02:17:10,789 --> 02:17:14,626
But they said program management necessary overhead to keep the audit

2359
02:17:14,626 --> 02:17:15,627
function running.

2360
02:17:15,627 --> 02:17:18,270
Recommended validation lowest cost

2361
02:17:18,797 --> 02:17:23,168
largely administrative tracking of prior findings important for accountability.

2362
02:17:23,168 --> 02:17:25,168
So in mind

2363
02:17:25,904 --> 02:17:29,274
AI like cloth tend to give you a recommendation

2364
02:17:29,274 --> 02:17:33,345
based on your past questions, which is why?

2365
02:17:33,345 --> 02:17:36,470
Why? Yeah, those are on top.

2366
02:17:36,470 --> 02:17:36,881
So it's.

2367
02:17:36,881 --> 02:17:38,683
Oh but I haven't asked about the other one.

2368
02:17:38,683 --> 02:17:43,521
These other things are all new, but I think I know it tend to bias

2369
02:17:43,521 --> 02:17:46,791
based on what they know about you

2370
02:17:46,791 --> 02:17:50,428
does that to me, but of my own accord.

2371
02:17:50,428 --> 02:17:54,399
I went into the net property tax 311 and permitting

2372
02:17:54,399 --> 02:17:58,737
and then add Rec validation and program that create a new account

2373
02:17:58,737 --> 02:18:03,308
and ask again, yeah, we'll have a recommendation.

2374
02:18:03,308 --> 02:18:05,543
I think we can also look at process.

2375
02:18:05,543 --> 02:18:07,312
Or there's one element of process.

2376
02:18:07,312 --> 02:18:11,316
We'd be here a lot later tonight if we hadn't had a tracking

2377
02:18:11,316 --> 02:18:14,419
of our comments over the past year in our various meetings.

2378
02:18:14,419 --> 02:18:17,188
So it's not that it's just this meeting that we're talking about.

2379
02:18:17,188 --> 02:18:19,724
There's there's other projects that got excluded.

2380
02:18:19,724 --> 02:18:22,961
There's there's, you know, we've settled on this, this list.

2381
02:18:22,961 --> 02:18:25,664
So there's still the scoping element for each one of them.

2382
02:18:25,664 --> 02:18:29,501
I think maybe we might want to make a note for the following year

2383
02:18:29,501 --> 02:18:33,338
that whenever we get to the next item, which we won't probably tonight,

2384
02:18:33,338 --> 02:18:37,776
but the the work plan that we have, that's when we've often said, well, wouldn't it

2385
02:18:37,776 --> 02:18:39,444
be good if we could do this or that?

2386
02:18:39,444 --> 02:18:42,547
And I know you've raised a few of those over the past year,

2387
02:18:42,547 --> 02:18:44,816
so I'm very happy that we're at this stage.

2388
02:18:44,816 --> 02:18:48,720
I think we're at the point where we could maybe keep the I don't hear anyone

2389
02:18:48,720 --> 02:18:51,323
really having an appetite to remove items on here,

2390
02:18:51,323 --> 02:18:54,426
but maybe the priority of them is something in doubt.

2391
02:18:54,426 --> 02:18:57,262
We could maybe get consensus on that.

2392
02:18:57,262 --> 02:18:59,297
I'm not even sure that's helpful, though.

2393
02:18:59,297 --> 02:19:03,868
The city council is going to probably want to come fresh at this list

2394
02:19:03,868 --> 02:19:05,537
if we forward it, and.

2395
02:19:05,537 --> 02:19:08,139
But you two are both on the council.

2396
02:19:08,139 --> 02:19:12,977
Is it helpful for us to come up with a priority in some way?

2397
02:19:12,977 --> 02:19:16,181
And then does that have weight with the city council?

2398
02:19:16,181 --> 02:19:20,185
I mean, the two of you would then well supported, I suppose.

2399
02:19:20,185 --> 02:19:24,956
Well, you have two that are automatic, so you only have six to prioritize.

2400
02:19:24,956 --> 02:19:30,362
Property tax review gets a question mark for who's best to do that.

2401
02:19:30,362 --> 02:19:34,165
So you could remove it or just put it to the side and say

2402
02:19:34,165 --> 02:19:37,335
this, this one, we're not sure how best to handle it.

2403
02:19:37,335 --> 02:19:41,639
Well, I think we can keep it and then say city staff and internal audit.

2404
02:19:41,639 --> 02:19:45,577
And of course, any other people that have input, like the mayor

2405
02:19:45,577 --> 02:19:46,344
would then come up

2406
02:19:46,344 --> 02:19:49,748
with a little bit more scoping before it would go to city council.

2407
02:19:49,748 --> 02:19:54,850
I would think some more work on where I see us having our value

2408
02:19:54,850 --> 02:19:58,356
here is saying we could list these items, all of them right now,

2409
02:19:58,356 --> 02:20:03,270
for example, and then say the top five from our perspective, our

2410
02:20:03,270 --> 02:20:03,661
top four.

2411
02:20:03,661 --> 02:20:05,997
And then but all of them are valuable.

2412
02:20:05,997 --> 02:20:09,567
And more scoping is going to come from internal audit

2413
02:20:09,567 --> 02:20:13,671
and city staff before it gets to city council.

2414
02:20:13,671 --> 02:20:16,274
And then even more scoping might come at city council

2415
02:20:16,274 --> 02:20:19,511
saying, well, they want you guys want more Committee does.

2416
02:20:19,511 --> 02:20:22,180
How about that as an approach. So keep property tax in there.

2417
02:20:22,180 --> 02:20:23,648
But it needs some more scoping.

2418
02:20:23,648 --> 02:20:26,840
So Colleen is happy and you're happy.

2419
02:20:26,840 --> 02:20:28,190
And city staff stop okay.

2420
02:20:28,190 --> 02:20:31,856
So could should we each say what our top.

2421
02:20:31,856 --> 02:20:36,594
Why don't you propose and then we'll just your disagree.

2422
02:20:36,594 --> 02:20:40,965
Just I've got the recruitment property tax 311 and permitting.

2423
02:20:40,965 --> 02:20:43,902
I am fine with those but. Okay.

2424
02:20:43,902 --> 02:20:44,502
But it's mayor.

2425
02:20:44,502 --> 02:20:46,938
You got one that you prefer to elevate.

2426
02:20:46,938 --> 02:20:49,741
Is it a this is a priority checked

2427
02:20:49,741 --> 02:20:52,610
which is my my go to.

2428
02:20:52,610 --> 02:20:57,410
On so puts permitting efficiency first code enforcement

2429
02:20:59,170 --> 02:21:02,170
second property tax review third

2430
02:21:02,520 --> 02:21:06,240
grant management follow up and investment

2431
02:21:06,240 --> 02:21:10,224
cash flow and recruitment and retention study.

2432
02:21:10,595 --> 02:21:14,795
So it's like totally different priorities.

2433
02:21:18,136 --> 02:21:22,740
Well do you support that priority or can we

2434
02:21:22,740 --> 02:21:28,847
maybe I do think property tax review might be best to handle the separately

2435
02:21:28,847 --> 02:21:33,840
because we need those numbers for different purpose.

2436
02:21:33,840 --> 02:21:36,154
It's not really for all.

2437
02:21:36,154 --> 02:21:39,754
It's really for advocacy. So

2438
02:21:40,992 --> 02:21:44,395
so what I'm hearing you are saying the number that would be defensible.

2439
02:21:44,395 --> 02:21:44,629
Right.

2440
02:21:44,629 --> 02:21:48,266
So it might be best to what I'm hearing.

2441
02:21:48,266 --> 02:21:51,536
We can probably group the permitting recruitment and be one one

2442
02:21:51,536 --> 02:21:52,871
as your top three.

2443
02:21:52,871 --> 02:21:57,710
Not any particular order followed by grant.

2444
02:21:58,676 --> 02:22:03,181
At least some of the comments is probably Grant followed by investment cash.

2445
02:22:03,181 --> 02:22:07,381
And then lastly property tax with the

2446
02:22:08,520 --> 02:22:11,520
the the last two being

2447
02:22:12,156 --> 02:22:14,125
automatic.

2448
02:22:14,125 --> 02:22:15,193
Okay.

2449
02:22:15,193 --> 02:22:17,193
So the

2450
02:22:17,829 --> 02:22:20,229
for recruitment and retention,

2451
02:22:21,599 --> 02:22:24,350
I think the mayor initially also

2452
02:22:24,350 --> 02:22:27,338
didn't think that's important. Right.

2453
02:22:27,338 --> 02:22:32,911
That one is also it's the lowest in my list

2454
02:22:32,911 --> 02:22:35,847
except the tomb and program management.

2455
02:22:35,847 --> 02:22:38,247
So which were wondering

2456
02:22:39,830 --> 02:22:42,720
this is a person public works or public works.

2457
02:22:42,720 --> 02:22:46,320
It needs that some stabilization seems

2458
02:22:46,524 --> 02:22:50,395
I think that's a very important one right there.

2459
02:22:50,395 --> 02:22:56,267
So I can I can agree with the permitting recruitment and 311 in the top group.

2460
02:22:56,267 --> 02:22:57,936
And we could present it that way.

2461
02:22:57,936 --> 02:23:02,507
You know this is our top this this is a must have program management.

2462
02:23:02,507 --> 02:23:05,944
And then we have just break it into a tier

2463
02:23:05,944 --> 02:23:10,748
one and tier two tier one permitting recruitment and 311

2464
02:23:10,748 --> 02:23:13,818
because it's because our the manager is asking for recruitment.

2465
02:23:13,818 --> 02:23:16,387
I would say if she's identified that

2466
02:23:16,387 --> 02:23:19,724
we should probably support her on that and then go with the grant investment

2467
02:23:19,724 --> 02:23:23,928
and property tax and just call it tier two, in no particular order.

2468
02:23:23,928 --> 02:23:26,264
And have that identified is that these are not in order.

2469
02:23:26,264 --> 02:23:34,939
This is our first upper group and our lower group and then our automatic group.

2470
02:23:34,939 --> 02:23:36,541
We like that approach.

2471
02:23:36,541 --> 02:23:39,243
I can get behind it okay. Thanks, mayor.

2472
02:23:39,243 --> 02:23:40,979
You're not. It sounds like it.

2473
02:23:40,979 --> 02:23:45,783
All right, so why don't we have a motion that I do have a question

2474
02:23:45,783 --> 02:23:49,383
still about the recruitment and retention.

2475
02:23:49,621 --> 02:23:51,621
This seems to.

2476
02:23:51,756 --> 02:23:52,657
This is good.

2477
02:23:52,657 --> 02:23:55,660
This is not a typical internal audit function.

2478
02:23:55,660 --> 02:23:57,428
It overlaps with HR.

2479
02:23:57,428 --> 02:24:01,280
That's something I think that

2480
02:24:02,700 --> 02:24:05,360
the city's the HR

2481
02:24:05,360 --> 02:24:08,206
department has been doing over the years.

2482
02:24:08,206 --> 02:24:09,107
Right.

2483
02:24:09,107 --> 02:24:14,545
So how would this be different if you recover it.

2484
02:24:14,545 --> 02:24:15,279
Yeah.

2485
02:24:15,279 --> 02:24:18,416
If your called Chelsea's presentation asking is not just internal

2486
02:24:18,416 --> 02:24:21,753
controls, it's also performance efficiency and effectiveness.

2487
02:24:21,753 --> 02:24:27,258
So our goal is to help out across the city based on its highest risk areas.

2488
02:24:27,258 --> 02:24:31,620
Our enterprise risk assessment did identify this as a higher risk area

2489
02:24:31,620 --> 02:24:33,765
and than it was requested by the city manager.

2490
02:24:33,765 --> 02:24:35,366
But our scope is by

2491
02:24:35,366 --> 02:24:39,537
any part of city operations that could increase the city's risk.

2492
02:24:39,537 --> 02:24:43,641
And your ability to recruit and retain employees is certainly an area

2493
02:24:43,641 --> 02:24:45,760
of operational risk.

2494
02:24:45,760 --> 02:24:48,680
And every time there's turnover, it costs the city money to.

2495
02:24:48,680 --> 02:24:53,151
Yeah, but then do you have the expertise in this area?

2496
02:24:53,151 --> 02:24:54,786
Yes. Yeah we do.

2497
02:24:54,786 --> 02:24:58,823
We've done dozens of HR related public sector studies.

2498
02:24:58,823 --> 02:25:01,823
Have you done any recruitment.

2499
02:25:01,959 --> 02:25:02,760
Yes, yes.

2500
02:25:02,760 --> 02:25:05,160
Your company does recruitment.

2501
02:25:05,496 --> 02:25:07,865
We don't do recruitment itself.

2502
02:25:07,865 --> 02:25:12,665
We do assessments of performance, efficiency and effectiveness

2503
02:25:13,438 --> 02:25:17,709
related to what the city's goals are and best practice.

2504
02:25:17,709 --> 02:25:21,446
But we have folks on our team who are actually retired

2505
02:25:21,446 --> 02:25:25,460
or former municipal human resources directors.

2506
02:25:26,417 --> 02:25:30,170
Okay, great. Why don't we

2507
02:25:30,722 --> 02:25:31,255
try to get

2508
02:25:31,255 --> 02:25:35,260
a motion here that would like on the tears

2509
02:25:35,260 --> 02:25:38,563
and to city Council that we're supportive of these.

2510
02:25:38,563 --> 02:25:42,867
And of course more detail is available and will likely be available

2511
02:25:42,867 --> 02:25:44,402
before presentation.

2512
02:25:44,402 --> 02:25:48,139
So I move that we create two tiers.

2513
02:25:48,139 --> 02:25:52,176
And these are in no particular order within the tier that we have

2514
02:25:52,176 --> 02:25:57,576
the permitting, the recruitment and 311 in considered tier one.

2515
02:25:58,116 --> 02:26:03,588
Tier two would be the grants investment, cash flow and property tax.

2516
02:26:03,588 --> 02:26:05,623
And then we will have the

2517
02:26:05,623 --> 02:26:09,727
I don't know how to identify it, but the automatic baseline

2518
02:26:09,727 --> 02:26:14,527
items would be project management and recommendation validation.

2519
02:26:15,666 --> 02:26:17,666
Those are required.

2520
02:26:18,200 --> 02:26:21,602
So these are really automatic authentic.

2521
02:26:21,806 --> 02:26:25,420
Yeah they must must be included.

2522
02:26:25,420 --> 02:26:26,944
Must have.

2523
02:26:26,944 --> 02:26:29,747
Well I second it since okay.

2524
02:26:29,747 --> 02:26:30,470
Yeah.

2525
02:26:30,470 --> 02:26:32,160
Then we can discuss our motion.

2526
02:26:32,160 --> 02:26:33,918
We've got a motion I think that was clear.

2527
02:26:33,918 --> 02:26:36,687
Do we need to reread it back. We're good.

2528
02:26:36,687 --> 02:26:37,989
Okay, I like it.

2529
02:26:37,989 --> 02:26:40,958
Any other thoughts to add?

2530
02:26:40,958 --> 02:26:45,763
Carrie, you are you receiving the report and forwarding it to the city council?

2531
02:26:45,763 --> 02:26:47,965
Yes, with our comment.

2532
02:26:47,965 --> 02:26:50,365
The motion as amended,

2533
02:26:50,635 --> 02:26:52,236
the tier, the tiered.

2534
02:26:52,236 --> 02:26:55,807
I guess we're forwarding the report with the tears that are in the motion.

2535
02:26:55,807 --> 02:26:57,975
Won't be sure to include that as part of the staff report.

2536
02:26:57,975 --> 02:26:59,911
Perfect. Yeah. All right.

2537
02:26:59,911 --> 02:27:01,379
Good clarification. All right.

2538
02:27:01,379 --> 02:27:05,579
All in favor of this motion? I

2539
02:27:05,683 --> 02:27:07,985
so, the three of us. All right. Thank you.

2540
02:27:07,985 --> 02:27:11,550
We do have one more item which we can just maybe scurry

2541
02:27:11,550 --> 02:27:14,525
really quickly through, which is the Excel sheet.

2542
02:27:14,525 --> 02:27:18,362
And thank you, Colleen and Chelsea, for leading us through.

2543
02:27:18,362 --> 02:27:21,265
Sorry. It's gotten a little bit later than we all anticipated.

2544
02:27:21,265 --> 02:27:22,633
You had to come back two times,

2545
02:27:22,633 --> 02:27:26,470
but the poor vice mayor here and didn't had even more trouble.

2546
02:27:26,470 --> 02:27:28,639
So thank you everyone.

2547
02:27:28,639 --> 02:27:31,442
And our last sheet is we keep track of this.

2548
02:27:31,442 --> 02:27:34,912
So again, I think it fits in well with this last internal audit

2549
02:27:34,912 --> 02:27:35,880
discussion we had.

2550
02:27:35,880 --> 02:27:39,150
The idea is as we come up with things, we can have a subcommittee

2551
02:27:39,150 --> 02:27:43,870
or we can suggest internal audit, do it.

2552
02:27:43,870 --> 02:27:47,258
And I'm much more in favor of of settling on the internal audit for city staff

2553
02:27:47,258 --> 02:27:48,726
can actually do reports itself.

2554
02:27:48,726 --> 02:27:50,628
So a number of them are forthcoming.

2555
02:27:50,628 --> 02:27:54,980
So any changes that anyone has to this.

2556
02:27:54,980 --> 02:27:57,869
Thanks Jonathan for keeping it. I out

2557
02:27:57,869 --> 02:27:59,837
obviously that we see this every meeting.

2558
02:27:59,837 --> 02:28:02,740
So I'd suggest we just move forward.

2559
02:28:02,740 --> 02:28:06,940
But more studies certainly welcome by everybody.

2560
02:28:07,440 --> 02:28:08,646
All right one recommendation.

2561
02:28:08,646 --> 02:28:11,115
We've already for next October 26th.

2562
02:28:11,115 --> 02:28:15,119
You've already received the citywide control o citywide control review.

2563
02:28:15,119 --> 02:28:17,288
Excuse me I'm not seeing.

2564
02:28:17,288 --> 02:28:19,624
Yeah, that's correctly I thought there was a statewide policy.

2565
02:28:19,624 --> 02:28:21,559
We're good. Right.

2566
02:28:21,559 --> 02:28:22,727
Yeah. All right.

2567
02:28:22,727 --> 02:28:25,663
So nice on that happiness

2568
02:28:25,663 --> 02:28:27,663
overview. Oh, yeah.

2569
02:28:27,899 --> 02:28:29,367
Public comment on our item eight.

2570
02:28:29,367 --> 02:28:32,360
I totally forgot the last person.

2571
02:28:32,360 --> 02:28:34,338
Hopefully we do we have any.

2572
02:28:34,338 --> 02:28:35,406
That's all right.

2573
02:28:35,406 --> 02:28:36,641
On that happy note.

2574
02:28:36,641 --> 02:28:37,541
Thanks everybody.

2575
02:28:37,541 --> 02:28:39,176
We are concluded.

2576
02:28:39,176 --> 02:28:40,778
The motion for that is our mother.

2577
02:28:40,778 --> 02:28:42,380
No we don't to motion on it.

2578
02:28:42,380 --> 02:28:46,317
Just we accept it as an information item and receive it.

2579
02:28:46,317 --> 02:28:49,353
But often we have many guests on it.

2580
02:28:49,353 --> 02:28:51,122
So we are adjourned.

2581
02:28:51,122 --> 02:28:53,000
Okay. And we can look to