Our performance audit Shelter Plus Care: Fully Compliant but Vulnerable to Staffing Cuts will be presented to Council on Tuesday, April 30, 2013 at 7:00 p.m. (Item 19). The audit reports Health, Housing and Community Services (HHCS) successfully manages the Shelter Plus program, which assists disabled homeless individuals, in spite of being staffed with only 2.3 employees, 62 per cent of HUD's suggested level. Our recommendations will help reduce the risk of fraud, assist HHCS in remaining grant compliant, and ensure that Council has the information it needs to understand the effects of budget cuts on oversight capabilities.
In response to our first recommendation, HHCS agreed to include impact summaries in the FY14-FY15 budget book.
Read the Shelter Plus Care report
On a related note, Council directed the City Manager to disclose internal control risks of recommended budget cuts in future budget reports, following the October 30, 2012 City Auditor's Annual Report Discussion.
Read the October 30 report
The proposed budget for next year will be available within the next few days; in accordance with 2011 Open Governance ordinance, the City Manager is issuing the budget book early this year. We anticipate the new budget book may disclose internal control risks of recommended budget cuts, as outlined in our October 30 report:
- Are we increasing the risk of fraud by making this budget cut?
- Will this budget cut hamper our ability to provide the best and most timely information we need for decision-making?
- Does this budget cut impact our ability to provide oversight of grants, community agencies, vendors, and staff performance?
The City Auditor's Office followed this format in our own budget submission, as shown in the City Auditor's Budget Report, presented to Council on February 19 (Item 24).
Follow-up Report on Outstanding Audit Recommendations
This report, presented to Council on March 19 (Item 23) requested the City Manager notify Council if any audit recommendations cannot be implemented or cannot be implemented timely. Some audits have remained unimplemented for too long. Prompt implementation should reduce the risk of fraud and increase staff efficiency and reliability of information.
We currently have two performance audits in progress:
Objective: Do the Planning Department's processes result in efficient and timely issuance of building permits and accurate charging and proper deposit of fees?Are the procedures over cash handling ensuring accuracy of collections and deposits? Have previous audit recommendations been addressed?
Parks, Recreation & Waterfront Cash Handling
Objective: Are procedures over cash handling ensuring accuracy of collections and deposits?