>> WELCOME TO THE REGULAR MEETING OF THE AUDIT COMMITTEE FOR FEBRUARY 24TH, 2025. I'M ELLISON. ELLIOTT PAYNE AND I'M THE CHAIR OF THE COMMITTEE. I WANT TO OFFER A FRIENDLY REMINDER STAFF AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO ENABLE GREATER
PUBLIC PARTICIPATION. THESE BROADCASTS INCLUDE REALTIME CAPTIONINGS A FURTHER METHOD TO INCREASE THE ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY, THEREFORE, ALL SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT OUR CAPTIERS CAN FULLY CAPTURE AND TRANSCRIBE ALL COMMENTS FOR THE BROADCAST.
WE ASK ALL SPEAKERS TO MODERATE THE SPEED AND THE CLARITY OF THEIR COMMENTS AND BEFORE I ASK THE CLERK TO CALL THE ROLL, I WANTED TO THANK THE COMMISSIONER FOR HER SERVICE ON THE COMMITTEE. SHE HAS ROLLED OFF NOW SHE'S BECOME THE PRESIDENT OF THE PARK BOARD AND
I WANT TO WELCOME COMMISSIONER THOMPSON AS THE NEW MEMBER OF THE PARK BOARD. AT THIS TIME I'D ASK THE CLK TO CALL THE ROLL SO WE CAN VERIFY THE PRESENCE OF A QUORUM.
(ROLL CALL.) >> THERE ARE 6 MEMBERS PRESENT. >> LET THE RECORD REFLECT THAT WE HAVE A QUORUM. COLLEAGUES, OUR AGENDA IS BEFORE US. MAY I
HAVE A MOTION TO ADOPT THE AGENDA. >> SO MOVED. >> IS THERE A SECOND BE? >> SECOND. >> ALL THOSE IN FAVOR SAY AYE. >> AYE. >> OPPOSED SAY NAY. THAT CARRIES NEXT WE HAVE THE ACCEPTANCE OF MINUTES FROM OUR DECEMBER 2ND, 2024 MEETING. MAY I HAVE THAT MOTION? >> SO MOVED.
>> IS THERE A SECOND? >> SECOND. >> ALL THOSE IN FAVOR SAY AYE. >> AYE >> OPPOSED SAY NAY. THAT CARRIES WITH THE DECEMBER 2ND MINUTES ARE ACCEPTED NEXT WE HAVE FOUR ITEMS IN NEW BUSINESS TODAY STARTING WITH
ITEM NO. 3, MY NOMINATION TO DEZ COMENATED ROBERT TIMERMAN AS CITY AUDITOR AND BEFORE WE DISCUSS THIS ITEM, I WILL FORMALLY MAKE A MOTION TO ADOPT THIS DESIGNATION. DO I HAVE A SECOND. >> SECOND. >> AND I WILL ASK CLERK KARL. >> GOOD MORNING, MR. CHAIR AND COMMITTEE MEMBERS MY NAME IS
CASEY KARL. I HAVE THE PRIVILEGE AS SERVING A CLERK FROM THE CITY OF MINNEAPOLIS. I'M HERE THIS MORNING DOES THE CHAIR INDICATED TO PRESENT THE RECOMMENDATION OF THE AUDIT SEARCH COMMITTEE WHICH WAS AUTHORIZED BY THIS COMMITTEE I THROUGH ITS CHAIR TO APPOINT ROBERT TIMERMAN TO THE APPOINTED
POSITION OF CITY AUDITOR. PURSUANT 2.6. THE CITY AUDITOR IS AN EXECUTIVE LEVEL POSITION WITHIN THE CITY ENTERPRISE SPECIFICALLY WITHIN THE LEGISLATIVE DEPARTMENT THAT IS AN OFFICER OF THE CITY GOVERNMENT THAT IS CHARGED WITH PROVIDING INDEPENDENT, OBJECTIVE AUDIT AND EVALUATORY SERVICES
AID AT IMPROVING THE EFFECTIVENESS OF THE CITY'S OPERATIONS. THE SPECIFIC THOUGH OF THE AUTHORITY AND THE DUTIES OF THE CITY AUDITOR ARE DEFINED IN SECTION 3.241 OF THE CITY CHTER. THE INDEPENDENT AUDIT COMMITTEE IS EMPOWERED TO APPOINT AND TO OVERSEE THE WORK
THE CITY AUDITOR. THE CITY AUDITOR SERVES IN THE UNCLASSIFIED SERVICE OF THE CITY AND MUST BE APPOINTED TO A FOUR-YEAR TERM DURING WHICH TIME THE AUDITOR MAYNLY BE REMOVED FOR CAUSE. THESE ORGANIZATIONAL PROVISIONS WHI ARE UNIQUE TO THE CITY AUDITOR ARE DELIBERATELY DESIGNED TO
INSULATE THE CITY AUDITOR AND THE AUDITOR'S OFFICE FROM IMPROPER POLITICAL INFLUENCES. FURTHERMORE, THE AUDITOR OPERATES UNDER THE GENERAL PROVISIONS OF AN AUDIT CHARTER WHICH IS APPROVED BY THIS BODY AND WHICH DEFINES THE PURPOSE, MISSION, AUTHORITY AND THE INDEPENDENCE OF THE CITY
AUDITOR'S OFFICE. MR. TIMERMAN MOST RECENTLY SERVED WITH THE AUDIT OFFICE FOR THE MINNESOTA DEPARTMENT OF TRANSPORTATION INCLUDING AS ITS ACTING DIRECTOR SINCE JULY 2024. HE SERVED WITH THAT OFFICE OVER THE PAST FOUR YEARS WHICH INCLUDED IREASING LEVELS OF RESPONSIBILITY DURING THAT TIME.
BEFORE THAT, HE WORKED FOR THE MINNESOTA LEGISLATIVE AUDITOR AND THE MINNESOTA DEPARTMENT OF REVENUE. MR. TIMERMAN EARNED HIS BACHELOR OF ADMINISTRATION WITH AN EMPHASIS ON ECONOMICS FROM T EAU CLAIRE AS WELL AS A CERTIFICATE IN LAW ENFORCEMENT FROM METROPOLITAN STATE
UNIVERSITY AND HAS COMPLETED MASTERSEVELS COURSEWORK FROM HAMLIN UNIVERSITY. THE PROPOSAL AS THE CHAIR INDICATED BEFORE THE AUDIT COMMITTEE IS APPROVAL OF THE CHAIR'S NOMINATION TO APPOINT ROBERT TIMERMAN TO THE POSITION OF CITY AUDITOR FOR A FOUR-YEAR TERM. MR. CHAIR, THAT COMPLETES
MY PREPARED PRESENTATION. I'M HAPPY TONSWER QUESTIONS THE COMMITTEE MAY HAVE, OTHERWISE, I KNOW MR. TERMAN MAY HAVE HAVE SOMETHING TO SAY AT THE APPROPRIATE TIME. >> ANY COMMITTEE MEMBERS. >> THANK YOU. >> LET'S WELCOME UP MR. TIMERMAN.
>> GOOD MORNING, CHAIR PAYNE, AUDIT COMMITTEE. ALTHOUGH THE VOTE HASN'T BEEN TAKEN YET, I AM HONORED BY THE PROSPECT OF BEING APPOINTED TO THEITY AUDITOR POSITION. I WANT TO EXPRESS MY SINCERE GRATITE IN YOUR CONFIDENCE IN MY ABILITY TO SERVE THE CITY.
YOUR TRUST IS NOT SOMETHING THAT I TAKE LIGHTLY. I'M COMMITTED TO UPHOLDING THE HIGHEST STANDARDS OF ACCOUNTABILITY, TRANSPARENCY AND INTEGRITY ACROSS THE CITY OF MINNEAPOLIS. MINNEAPOLIS IS A CITY OF RESILIENCE AND DIVERSE VOICES
AND THE MY PRIVILEGE TO COMPLETE THE SYSTEMS FOR FAIRNESS, EFFICIENCY AND RESPONSIBLE STEWARDSHIP OF PUBLIC RESOURCES. STRONG INDEPENDENT OVERSIG COMPLIANCE, IT'S ABOUT STRENGTHENING PUBLIC TRUST, FOSTERING GOOD GOVERNANCE AND
ENSURING THAT THE CITY'S DECIONS REFLECT THE BEST INTERESTS OF ALL RESIDENTS. I LOOK FORWARD TO WORKING COLLABORATIVELY WITH THE AUDIT COMMITTEE, CITY ADERS AND THE COMMUNITY TO DRIVE MEANINGFUL IMPROVEMENTS AND PROVIDE CLEAR OBJECTIVE INSIGHTS THAT SUPPORT
INFORMED DECISION-MAKING. THROUGH MY CORE VALUE OF LEADING WITH COMPASSION AND EQUITY, I PLAN TO BUILD ON THE GREATORK ALREADY BEING DONE BY THE OFFICE. WHILE SEEKING CONTINUOUS IMPROVEMENTS TO BRING YOU
MEANINGFUL, TIMELY AND ACCURATE RECOMMENDATIONS, ONCE AGAIN, THANK YOU SO MUCH FOR THIS OPPORTUNITY. I'M EXCITED TO SERVE AND I'M READY TO GET STARTED. THANK YOU. >> THANK YOU. DO ANY MEMBERS OF ANY QUESTIONS FOR MR. TIMERMAN? ANY
COMMENTS. I JUST WANT TO THANK Y FOR GOING THROUGH THE PROCESS WITH US. I KNOW IT WAS QUITE RIGOROUS AND WE'RE EXCED TO HAVE YOU. AND I ALSO WANT TO GIVE THIS OPPORTUNITY TO YOU WHO STEPPED IN FOR REALLY INTENSE ROLE AT A REALLY INTENSE TIME IN
OUR CITY AND I REALLY THINK YOUR STEADY LDERSHIP HAS REALLY SET US UP GOING FORWARD AS A CITY AND I'M VERY GRATEFUL FOR WHAT YOU'VE DONE OVER THE LAST FEW MONTHS. AND WITH THAT, SEEING NO FURTHER QUESTIONS OR COMMENTS I'LL ASK THE CLERKO CALL THE ROLL.
(ROLL CALL.) >> THERE ARE 6 AYES AND ONE ABSENT. >> THAT CARRIES AND THAT ITEM HAS BEEN APPROVED. WELCOME.
ALL RIGHT. NEXT WE HAVE ITEM NO. 4 WHICH IS AEPORT FROM THE NEIGHBORHOOD AND COMMUNITY RELATIONS DEPARTMENT ON CIT FUNDING TO NCR
ORGANIZATIONS. >> GOOD MORNING CHAIRMAN, COMMITTEE MEMBERS. WE CONDUCTED A REVIEW OF NEIGHBORHOOD 2020 PROGRAMS AND I'M HERE TO PRESENT YOU THE RESULT OF OUR REVIEW.
I WANT TO THANK THE NEIGHBORHOOD -- THE NEIGHBORHOOD COMMUNITY AND RELATIONS DEPARTMENT AND FINANCE DEVELOPMENT DIVISION FOR THEIR COOPERATION AND DURING THE ENTIRE REVIEW.
WE HAVE -- THE ORDER OF THE PRESENTATION -- WE HAVE -- WE STT WITH THE BACKGROUND, A LITTLE BIT OF THE BACKGROUND OF THE PROGRAM. THE OBJECTIVE, THE SCOPE, AUDIT APPROACH AND METHODOLOGY
RESULTS, OBSERVATION AND MANAGEMENT ACTION PLAN. THE CITY WILL PROVIDE VARIOUS FUNDS TO SUPPORT THE EFFORT OF NEIGHBORHOOD GANIZATIONS TO ACHIEVE
EQUITABLE CIVIC PARTICIPATION AND BRING A LONG-TERM CAPACITY TO IMPROVE RESIDENT LIFE. IN NOVEMBER, 2020, THE MINNEAPOLIS CITY COUNCIL APPROVED A NEW PROGRAM CALLE
NEIGHBORHOOD 2020 PROGRAM. A NEW PROGRAM TO SUPPORT NEIGHBORHOOD ORGANIZATIONS. PRIOR TO THAT PROGRAM, THE CITY OF MINNEAPIS PROVIDE VARIOUS PROGRAMS TO SUPPORT ITS
NEIGHBORHOOD. WE HAVE A NEIGHBORHOOD REVITALTION PROGRAM THAT STARTED IN 1989. WE HAVE A COMMUNITY PARTICIPATION PROGRAM. IT STARTED IN 2011 AND THEN IN 2020.
THE CURRENT PROGRAM SUPPORTS MORE THAN 70 AND OTHER COMMUNITY-BASED ORGANIZATIONS FOR DIFFERENT FUNDING. WE HAVE A CITYWIDE NEIGHBORHOOD NETWORK FUND,
EQUITABLE ENGAGEMENT FUND, RTNERSHIP ENGAGEMENT FUND AND COLLABORATION AND SHARE RESOURCE FUND. WITH THIS WE STILL HAVE A LITTLE BIT LEFT OVER FROM THE
SPENDING BUT THIS IS JUST THE NRP AND -- THE NEIGHBORHOOD 2024 IS AN PROGRAM WHERE THE ORGANIZATION INCUR AND P FOR FUNDS AND
REQUEST A REIMBURSEMENT THROUGH THE CITY -- THE ASSETS. AND THE NCR DEPARTMENT POSSESSES ONE OF THE FUNDING AND
FUNDED THROUGH THE DEVELOPMENT FINANCE DIVISION. THE OBJECTIVE OF THIS ORDER IS TO -- WAS TO ASSESS THE NDING REQUIREMENT AND CITY-REQUIRED INTERNAL CONTROL FOR NEIGHBORHOOD ORGANIZATION.
WHAT THIS SCOPE INCLUDES THIS UNCOVERED THE ASSESSMENT AN THE EFFECTIVENESS OF CONTROL RELATED TO THE CITY NEIGHBORHOOD 2020 PROGRAM FROM JANUARY --
FROM JANUARY 2021 TO DECEMBER 2023 IS THE FIRST CYCLE OF THE PROGRAM. THIS PROGRAM START -- THE CITY STARTED THE PROGRAM IN NOVEMBER 2020 AND THE PROGRAM STARTED -- FIRST CYCLE COVED
JANUARY 2020 TO DECEMBER 2023. THE APPROACH AND METHOD OFOLOGY. WE REVIEWED THE ADEQUACY AND COMPLETENESS OF THE POLICY AND PROCEDURE. WE REVIEWED CHANGE MANAGEMENT ON
POLICY AND PROCEDURE. WE ASSESS THE ADEQUACY OF MANAGEMENT OVERSIGHT AND PROGRAM. WE ASSESS COMPLIANCE WITH THE MINNESOTA STATE NONPROFIT ORGANIZATION REGULATION. HE
FUNDING POLICY PROCEDURE AND REQUIREMENT. THE TERMS OF THE CONTRACT BETWEEN THE CITY AND NEIGHBORHOOD ORGANIZATION. WE REVIEW AND ANALYZE MANAGEMENT OF POTENTIAL FRAUD RISK RELATED TO
FUND ALLOCATION AND ALLOCATION OF ASSESSMENT AND SPOT-CHECK REPORT, AND ROUTERS SUBMITTED FROM NEIGHBORHOODS TO NCR. WE ASSESS THE STARTING AND
ASSESS THE MANAGEMENT PROCESS -- WE ASSESS THE REIMBURSEMENTS PROCESS INCLUDING INTERNAL CONTROL OVER REQUESTS AND APPROVAL. AS A RESULT, WE IDENTIFY FOUR EAS OF
IMPROVEMENT. WE HAVE --HE FIRST AREA OF DEVELOPMENT FINANCE PROCESS. THE SECOND ONE WE HAVE ONE RELATED TO POLICY AND PROCEDURE.
THE ISSUE NO. 3 THE PROCESS TO ENSURE NEIGHBORHOOD ORGANIZATION RECOGNITION REQUIREMENT THAT AND THE LAST ISSUE ISHE RISK ASSESSMENT PROCESS. I'M GOING TO ELABORATE A LITTLE BIT ON THAT FOLLOWING THE SLIDE.
THE OBSERVATION 1: WE OBSERVED THAT -- LIKE I SAID, EARLIER, THE NCR DEPARTMENT PROCESS ONE FUND AND THE DIVISION FINANCE DIVISION PROCESS THROUGH THE OTHER FUND
TUND. WHAT WE NOTE HERE -- WE NOTE THAT THAT'S -- THERE ARE MANY CONTROLS IN PLACE IN THE FUNDING AND WE REAZES IT'S MISSING ONE PIECES. THAT PIECE IS THE REQUIREMENT TO HAVE THOSE
RECEIPTS INVOICE WITH THE REQUEST. WHAT I AM THE NCR AREA PROCESS -- THE REQUIREMENT -- THE REQUEST -- WE NOTE THAT ONE AND WE REVIEWED THE SAMPLE AND WE KNOW THEY POST EVERY INVOICE
RECEIPTS TO THAT AND THE OTHER SIDE -- WE MISSED THAT PIECE OF THE CONTROL TO PUT IN PLACE. MANAGEMENT, THEY HAVE CONTROL IN PROCESS AND THE MANAGEMENT BELIEVE THEY HAVE CONTROLS ARE IN PLACE
SUFFICIENTLY AND THEY REVIEWED THE ORGANIZATION -- THE ORGANIZATIONS FINANCIAL POLICY AND PROCEDURE APPROVED BY NCR. THAT'S A REQUIREMENT TO HAVE A QUALIFIED ACCOUNTANT AND STANDARD ACCOUNTANT SOFTWARE.
ORGANIZATION TO BE ABLE TO DEMONSTRATE THAT THEY CAN READILY SUPPORT THE COMMISSION FOR ALL FINANCIAL TRANSACTIONS. AND THOSE CONTROLS ARE GREAT CONTROLS IN PLACE BUT WE
DETERMINED WE NEED TO -- SINCE WE REQUIRED THEM TO HAVE A SOFTWARE, A BOOKKEEPER, TO HAVE THOSE SUPPORTING DOCUMENTS IN THEIR SYSTEM SO WHEN THEY REQUEST REIMBURSEMENT, W DETERMINE THEY JUST NEED TO ATTACH THOSE SUPPORTING
DOCUNTS TO THE REQUEST. THAT WAS AN INCIDENT IN THE PAST RELATED TO THAT AREA AND THAT THE PAST CITY AUDITOR WORK ON THAT AREA FOR THE PAST YEAR SO
TO IMPLEMENT THAT REQUIREMENT SO WITH MANAGEMENT -- ADDITIONAL MANAGEMENT ADD THAT THEY HAVE THEIR PROCESS REVIEWED BY THE PREVIOUS CONTROLLER SO THEY SEEM THAT IS SUFFICIENT THAT WE
DETERMINED THE PAST SUFFICIENT ANTHE CITY ADOPT THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND WE NEED TO RECEIVE THOSE DOCUMENTS TO ATTACH TO THE
REQUEST. WE RECOMMEND THA MANAGEMENT ENSURE THE ACCOUNTIN SUPPORTING DOCUMENTATIONS SUCH AS INVOICES, RECEIPTS AND PROOF
OF PAYMENT. SINCE IT'S A REIMBURSEMENT BASE BASED PROGRAM, WE NEED TO SEE THOSE PROOF AND SO WE REIMBURSE THOSE. WE ALSO RECOMMEND THAT A NEIGHBORHOOD --HE MANAGEMENT REQUIRE ORGANIZATIONS TO SUBMIT SUPPORTING DOCUMENTION WHEN
THEY PUT THAT IN THE PROCESS NOW AND SMIT THAT AND MANAGEMENT -- AND THEY SEND THAT TO THE NEIGHBORHOOD ORGANIZATIONS SO THEY CAN COMPLY WITH THAT AREA. SO
MANAGEMENT -- LET ME GIVE THIS TO THEM AND THEY CAN -- SO THE MANAGEMENT AGREE THEY WILL CHANGE THE REQUIREMENT THAT NEIGHBORHOOD ORGANIZATIONS MAINTAIN SUPPORTING DOCUMENTATION FOR EXPENSES TO REQUIRE THAT DOCUMENTATION BE
SUBMITTED TO SEE THE CITY WITH REIMBURSEMT REQUEST. IT WILL SLOW DOWN THE PROCESS ACCORDING TO THE REIMBURSEMENT ACCORDING TO MANAGEMENT SO TO MITIGATE THAT, THE DEVELOPMENT FINANCE WILL DEVELOP PROCESSES AND
PROCEDURES DOCUMENTATION FOR NEIGHBORHOOD ORGANIZATIONS TO DETERMINE WHAT IS REQUIRED WHAT, WHEN AND AS APPROPRIATE DOCUMENTATION FOR COMMON SHIPMENTS HOW TO HANDLE COMMON ESTIMATES AND WHAT REIMBURSEMENT
LEVEL THRESHOLDS WILL BE REQUIRED. SO I WOULD LIKE TO GIVE A CHANCE FOR MANAGEMENT TO ELABORATA LITTLE BIT ON THOSE
RESPONSES. >> WELCOME. >> THANKS, GOOD MORNING, COMMITTEE. I'M ANGIE AND I'M THE DIRECTOR OF THE FINANCE DEVELOPMENT COMMENT. I DON'T BELIEVE WE HAVE ANY ADDITIONAL
QUESTIONS. UNLESS WE HAVE ANY WE WILL -- WE HISTORICALLY REQUIRED THAT TH INFORMATION OBJECT FILE AND CERTIFIED BY THE NEIGHBORHOODS, THAT IT IS ON FILE. WE WILL NOW COLLECT IT ON FI IN THE CITY INSTEAD AND
THAT'S THE PLAN FOR IT GOING FORWARD. >> ANY QUESTIONS, MEMBER WILLIAMS? >> THANK YOU. I THINK I'M A LITTLE CONFUSED. I JUST WANT TO MAKE SURE I UNDERSTAND THE PROCESS. SO THIS IS -- A PAYMENT IS NEIGHBORHOOD ORGANIZATION IS BEING REIMBURSEMENT. AM I
UNDERSTANDING THAT? IF THE DOCUMENT ITION IS NOT ATTACHED TO THE REIMBURSEMENT REQUEST, HOW DO WE KNOW BOTH, A, WHAT, SHOULD BE REIMBURSED AND, B, IF WE SHOULD, IN FACT, REIMBURSE IT.
>> SURE. SO OUR FULL MANAGEMENT RESPONSE DOCUMENTS ARE A PRETTY EXTENSIVE PROCESS OF WHAT HAS HISTORICALLY BEEN COLLECTED THAT PROVIDES THAT INFORMATION ROUGH A COVER SHEET AND THROUGH OTHER PROCESSES. WE WILL CONTINUE TO FOLLOW THAT
PROCESS. IT JUST IS THAT NOW THAT THE ACTUAL RECEIPTS THAT THAT DOCUMENT THAT REIMBURSEMENT REQUEST WILL BE INCLUDED SO THEY'VE ALWAYS BEEN REQUIRED TO EXPLAIN WHAT WITH A -- WHAT EXPENSES THAT HAVE BEEN OCCURRED --. MY STA THEN
REVIEWS THOSE REQUESTS FOR ELIGIBILITY UNDER THE PROGRAM RULES, REQUESTS BACK UP DOCUMENTATN IF WE HAVE ANY QUESTIONS ABOUT ANY OF THEM AND THEN PROCESSES THAT REIMBURSEMENT. >> SO IS IT FAIRO SAY IT'S
ALMOST AN HONOR SYSTEM. THEY'RE TELLING YOU WHAT THE AMOUNT OULD BE AND WE'RE TAKING THEIR WORD FOR IT? >> NO. CHAIR PAYNE, COMMITTEE MEMBER, IT'S NOT AN HONOR SYSTEM. THERE IS QUITE AN EXTENSIVE AMOUNT OF DOCUMENTATION THAT HAVE BEE
REQUIRED. THEY HAVE JUST BEEN SIMPLY REQUIRED TO KEEP IT IN-HOUSE AND NOW THEY ARE REQUIRED TO GIVE IT TO US TOMATICALLY INSTEAD OF UPON OUR REQUEST. >> OKAY, THANK YOU. >> YES. YES. >> MEMBER THOMPSON?
>> THANK YOU, CHAIR PAYNE. I DON'T KNOW HOW YOU DO IT WITH RAISINGANDS -- OH? I'LL FIND ONE. HI, THANK YOU. SO JUST TO PIGGYBACK ON THAT -- JUST TO CLARIFY, THEY WERE -- NEIGHBORHOOD ORGANIZATIONS WERE SUPPOSED TO
HAVE THIS ON FILE AT THE ORGANIZATIONAL HEADQUARTERS SPACE AND NOW BECAUSE OF A LACK OF DOCUMENTATION -- NOW WE'RE REQUIRING IT TO COME TO THE CITY. IS THIS CORRECT? >> CHAIR PAYNE, COMMITTEE MEMBERS. SUBTLE DIFFERENCE I
THK IN WHAT YOU SAID. THERE'S -- THERE'S NOT BEEN AN ESTABLISHMENT THAT THERE'S A LACK OF DOCUMENTATION. IT'S REALLY BEEN: WHERE IS THAT DOCUMENTATION HELD? PREVIOUSLY IT WAS HELD AT THE NEIGHBORHOOD LEVEL AND THEN THEY PROVIDED
ASSIGNED -- LIKE A SWORN STEMENT CERTIFICATION TO US THAT THEY'VE HAD IT AND NOW GOING FORWARD UPON THE AUDITOR'S RECOMMENDATION WE'RE GOING TO JUST KIND OF COLLECT THAT AUTOMATICALLY INSTEAD OF ASKING FOR IT WHEN THERE'S ANY QUESTIONS.
FOR EXAMPLE, THERE'S A LOT OF RECURRING EXPENSES THAT NEIGHBORHOOD ORGANIZATIO -- THESE ONES FUND THE OPERATIONS OF THE NEIGHBORHOOD ORGANIZATIONS SO THINGS LIKE, FOR EXAMPLE, RENT -- WE HAVE A
LEASE, THOSE PAYMENTS RECUR AND THAT WOULD BE NORMALLY HELD, YOU KNOW, SO THIS IS WHY WE NEED TO DEVELOP SOME NEW DOCUMENTATION FOR THE NEIGHBORHOODS SO WE KIND OF CAN DIFFERENTIATE BETWEEN THINGS THAT HAS RECUR LIKE A
RENT OR MAYBE REIMBURMENTS FOR OU A NEIGHBORHOOD'S ORGANIZATION EVENT THAT'S HELD AND WE ALWAYS REQUIRED RECEIPTS, ET CETERA, FOR THOSE EXPENSES THAT WE ARE OCCURRED. IT JUST A MATTER OF KIND OF WHERE HAVE THEY BEEN
HOUSED AND -- ANDHAT IS WHAT IS CHANGING HERE. >> GOT IT. ITHERE -- HOW OFTEN WOULD THEY MAKE REIMBURSEMENT COLLECT -- >> I'LL DEFER TO MY STAFF FOR THAT ONE.
>> SORRY, I'M GETTING IN THE WEEDS. IT'S MY FIRST MEETING. >> WELCOME. GOOD MORNING CHAIR PAYNE. GOOD MORNING I'M BOB COOPER FOR COMMUNITY PARTICIPATION. WITHIN DEVELOPMENT FINANCE DIVISION. COMMITTEE MEMBER THOMPSON -- OR COMMISSIONER
THOMPSON. >> THANK YOU. >> EXCUSE ME,. I'VE FORGOTTEN YOUR QUESTION. >> HOW OFTEN DO THEY MAKE REIMBURSEMENT REQUESTS GENERALLY. >> THERE IS NO GENERAL RULE. WE DON'T REQUIRE ANY PERIODIC -- SO
SOME GROUPS SUBMIT EVERY TWO WEEKS. OTHER GROUPS SUBMIT ONCE A YEAR. I SUSPECT CAN WITH THE REQUESFOR THEM TO PROVIDE THE DOCUMENTATION, THE ONES THAT REQUEST ONC A YEAR WILL PROBABLY HAPPEN MORE OFTEN. IN GENERAL WE PROCESS ABOUT
600 TO 700 PAYMENTS PER YEAR TO THE NEIGHBORHOOD GROUPS. >> THAT'S A LOT. >> TELL ME -- >> I FEEL LIKE I HAVE ONE MORE QUESTION A NOW I CAN'T. LET ME GO THROUGH MY NOTES. OH,S THIS -- IS THIS -- WOULD YOU CONSIDER THIS CITYWIDE OR ARE THERE SOME ORGS THAT ARE
A LITTLE LESS -- >> EVERY NEIGHBORHOOD -- >> YEAH, OKAY. >>, EXCUSE ME, CHAIR PAYNE. COMMISSIONER THOMPSON. EVERY NEIGHBORHOOD IN THE CITY IS REPRESENTED BY A NEIGHBORHOOD GROUP AND PARTICIPATES IN THE NEIGHBORHOOD 2020 PROGRAM.
>> I'M SORRY. I'LL CLARIFY MY QUESTION. ARE THERE -- ARE THERE SOME ORGANIZATIONS THAT -- -- THAT HAVE HAD MORE CHALLENGES WITH DOCUMENTATION THAN OTHERS? >> IN ANY GIVEN YEAR THE'S ONE OR TWO OUTLIERS THAT MIGHT HAVE A PROBLEM. WE DO HAVE OTHER
PROCESSES IN PLACE WHE WE DO HAVE AN EXTERNAL CPA WHO GOES IN AND TOUCHES FINANCIAL TOUCHPOINTS O OF THOSE. THE PARTICIPATION OF 990s AS WELL AS A RANDOM CHECK ON PAYMENT REQUESTS THAT HAVE BEEN MADE IN
THE PAST YEAR, THOSE HAVE SERVED AS FLAGS FOR WHEN WE HAVE TO TAKE MORE STRENUOUS REVIEW OF STUFF. WE DO HAVE A PROCESS THROUGH THE NEIGHBORHOOD COMMUNITY RELATIONS DEPARTMENT
IN WHICH WE -- IN CASES OF PROBLEMS WE DO PLACE A GROUP ON PROBATION FOR A YEAR. STEVE GALLAGHER WHO'S HERE WHO'S THE NEIGHBORHOOD PROGRAMS FOR NCR CAN SAY HOW MANY. BUT YOU WOULD GUESS WE PROBABLY PUT A GROUP ON PROBATION MAYBE ON
AVERAGE ONCE EVERY 2 YEARS. >> THANK YOU FOR THAT. YOU MENTIONED 990s WHICH THEN GETS MY HEAD DOWN TO A DIFFERENT PLACE DO WE AS A CITY REQUIRE 990s FOR OUR NEIGHBORHOOD ORGANIZATIONS?
>> CHAIR PAYNE, THOMPSON. THE IS IT I DOES NOT REQUIRE IT BUT BOTH THE IRS AND THE STATE REQUIRE IT. >> OKAY. >> IT'S PART OF THE NEIGHBORHOOD RECOGNITION REQUIREMENTS THAT THOSE GROUPS SUBMIT THOSE IN A TIMELY FASHION AND THOSE ARE REVIEWED. >> TO BE RECOGNIZED AS A
NEIGHBORHOOD ORG? >> OKAY. >> THAT MAKES A LOT OF SENSE. THANK YOU SO MUCH FOR YOUR TIME. >> YOU'RE VERY WELCOME. >> WE MOVE TO THE ISSUE 2, NO. 2
POLICY AND PROCEDURE AREA. SO WHAT WE OBSERVED HERE IS BOTH DFD AND -- THEY HAVE A POLICY -- THE POLICY ISHE PROGRAM GUIDELINES AND THEY HAVE
A PROCEDURE SO THEY CAN HELP THEM DO THEIR WORK AND WE REALIZED THAT HAVE IT MANY PROCEDURES IN PLACE AND WHAT WE ARE MISSING HERE -- WE'RE MISSING THE AFFIDAVITS CREATION. THEAST UPDATES AND THE OWNERSHIP -- THE APPROVAL
AUTHORITY, IF I CAN SAYHAT -- THE OWNERSHIP OF THE POLICIES AND PROCEDUS SO, SO WE'LL DETERMINE IF WE NEED TO IMPROVE
THAT AREA AS WELL, AND SO WE RE THE FINAL REVIEW DOCUMENT TO THE NEIGHBORHOOD ORGANIZATIONS INCLUDE DATES OF CREATION AND APPROVAL AUTHORITY.
SO WE HAVE BOTH MANAGEMENT RESPONSE. WE HAVE NCR RESPONSE IN RESPONSE TO THE BEST PRACTICE. NCR WILL CREATE A LIBRARY OF SINGLE SOURCE FOR DOCUMENTS OF THAT IN THIS POLICY
AND PROCEDURE AND GUIDELINES DATES AND INDICATE AUTHORITY AND DOCUMENTATN. THE DFD, WE WILL PROVIDE
APPROPRIATE STAFF WILL WORK WITH NCR. THEY'LL WORK WITH NCR -- FOR NCR TO COMPILE ALL APPLICABLE POLICIES HE AND PROCEDURE -- POLICIES HE AND PROCEDURE. ALL DOCUMENTS WILL BE REVIEWED FOR RELEVANCY AND TO ENSURE EACH POLICY AND PROCEDURE
INCLUDED THE CREATION DATE OF THE RESPONSIBLE PARTY AND THE LOG OF ANY RESPONSIVE REVISION AND MARK THE DATE OF COMPLETION.
SO THAT THAT CONCLUDES THE POLICY AND PROCEDURE AREA. DO YOU HAVE ANY QUESTIONS? >> ANY QUESTIONS? I'M NOT SEEING ANY. >> OKAY. THANK YOU. WE MOVE TO OVERSIGHT
MONITORING. THE PROCESS TO ENSURE THAT NEIGHBORHOOD ORGANIZATIONS RECOGNITION REQUIREMENT REVIEW AND PROPERLY DOCUMENTED NEEDS STNGTHENING. WHAT WE MEAN BY THAT, WE HAVE MANY REQUIREMENTS ON EACH FUND
AND THE MANAGEMENT ARE DOING -- REVIEWING EACH FUND REQUIREMENT, FOR EXAMPLE, THAT'S A REQUIREMENT TO ENSURE THOSE ORGANIZATIONS -- THEY'RE
ESTABLISHED FOR NONPROFIT ORGANIZATION AND SHOWS US PROOF OF ANY REVIEW, AND SO THIS IS SOME REVIEW WILL BE CONDUCTED ON THE STATE WEBSITE AND WHEN THEY CONDUCT THAT REVIEW THEY REPORT
THE DATES OF THE REVIEW. THEY DO THE REVIEW ON THE WORK SIDE. WE REALIZE THAT SUFFICIENT DOCUMENTATION IN THAT AREA WE NEED TO, FOR EXPLE, HAVE A REVIEW THAT WE CAN HAVE A SCREENSHOT OF THAT REVIEW SO WE
CAN KEEP THAT FAI AND THAT'S WHY WE DETERMINE IN THIS AREA SO WE RECOMMEND MANAGEMENT HAVE ALL SUPPORTING DOCUMENT REVIEW RECOGNITION INCLUDING SCREENSHOT OF WEB REVIEW. THE MANAGEMENT WILL
RECOMMEND THAT MANAGEMENT DEVELOP A SYSTEM AND/OR A PROCEDURE NEIGHBORHOOD ORGANIZATION IN O EASILY ACCESSIBLE SPACE.
IN RESPON, MANAGEMENT WILL BUILD A RECURRING PROCESS OF PLANNG A COPY FOR ONLIN VAR FIAND ONLINE VERIFICATION WILL BE PLACES IN THE NEIGHBORHOOD
ORGANIZATION-SPECIFIC FOLDER SO THE TITLE AND DATE OF THIS WILL BE OCTOBER 2025, THIS YEAR BECAUSE THAT'S WHEN THE MANAGEMENT STARTED RECEIVING THE NEW APPLICATION. SO THAT
CONCLUDES THAT ISSUE. ANY QUESTIONS. >> MEMBER HOSBEIN? >> THANK YOU, CHAIR PAYNE. I'LL START THIS OFF BY SAYING AUDIT TEAM AND NCR IF THIS IS KIND OF OUTSIDE OF THE SCOPE LET ME KNOW. BUT I HAD A COUPLE
QUESTIONS SPECIFICALLY DRIVEN BY PAGES 7, 8 AND 9 ABOUT THE EQUITABLE ENGAGEMENT FUNDS AND THE APPLICATIONS OF THOSE DID AND I THINK THIS IS MORE OF JUS PAYMENT IS IN THEWORKS.
DO YOU FEEL THAT THERE IS KIND OF EQUITABLE ADVERTISING, EQUITABLE KNOWLEDGE, ECKABLE RESOURCES WITH ALL -- EQUITABLE RESOURCES WITH ALL THESE NEIGHBORHOOD ORGANIZATIONS TO SUBMIT A APPLICATION AND TO KNOW ABOUT IT 'CAUSE I THINK -- IF YOU LOOK AT THE NUMBE ON
PAGES 8 AND 9, THERE'S A LOT OF -- OR A LOT OF NEIGHBORHOODS THAT I THINK WOULD VERY MUCH BE WITHIN THIS EQUITABLE ENGAGEMENT FUND, HOWEVER, THEY'RE A-'S SHOWING PRETTY LOW DOLLARS OR DO WE SEE A HIGH DOLLAR IN 2021 BUT NOT IN 2023. SO I WAS JUST
CURIOUS IF THERE WAS THE MANAGE THE NEIGHBORHOOD LEVEL TO BE ABLE TO, YOU KNOW, ACTIVELY USE THIS MONEY FOR WHAT THEIR COMMUNIT NEEDS? >> CHAIR PAYNE, COMMISSION
MEMBER MY NAME IS STEVEN GALLAGHER I'M THE NEIGHBORHOODS PROGRAM MANAGER FOR THE CITY OF MINNEAPOLIS IN THE NEIGHBORHOODS DEPARTMENT. IF I UNDERSTAND YOUR QUESTION, YOU'RE ASKING IS THERE A CAPACITY WITHIN THE NEIGHBORHOOD ORGANIZATIONS TO BOTH COMPLY WITH THESE PIECES AND TO ACTUALLY SUBMIT AN
APPLICATION? AND THE SIMPLE ANSWER IS, YES, THERE ARE. SOME ORGANIZATIONS ARE RUN BY VOLUNTEERS. SOME ARE RUN BY DEDICATED STAFF MEMBERS BUT THE RELATIONSHIP BETWEEN NCR AND MY TEAM ALONG WITH NEIGHBORHOODS --
WE'RE THERE AS TECHNICAL ADVISORS ALSO TO ENSURE THAT EACH NEIGHBORHD IS ABLE TO ACCESS FUNDS THAT ARE ALLOCATED BY THE CITY COUNCIL SO I'LL SAY THAT THIS IS THE FIRST YEAR IN THE HISTORY OFHIS CITY OF MINNEAPOLIS THAT ALL RESIDENTS
IN THE CITY HAVE AN ORGANIZATION THAT REPRESENTS THAT. >> ALL RIGHT. THANKS. >> AND SO JUST BYHAT ALONE, I WOULD SAY THAT WHAT WE'RE DOING INTERNALLY TO NCR AND THE NAGD ORGANIZATIONS AND THE NEIGHBORHOOD AND RESIDENTS HAS
SHOWN TO BE A SUCCESS THROUGH THE NEIGHBORHOODS 2020 AS NOW EVERYONE HAS REPRESENTED. >> PERFECT, THANK YOU FOR THAT. I JUST KNOW WHEN WE SEE A LOT OF THINGS THROUGH THIS COMMITTEE THERE'S SOMETIMES DISPARITIES AND JUST ACCESS TO RESOURCES AND KNOWLEDGE OF THESE PROGRAMS SO YOUR TEAM -- THAT SOUNDS LIKE A GREAT - A GREAT ADD TO THIS. I
THANK YOU FOR THAT. >> THANK YOU. >> THEAST OBSERVATION. THE NCR RISK ASSESSMENT. THE NCR
AND DFD DIVISION -- THEY PROVIDE THE CONDUCT AND ASSESSMENT OF THOSE NEIGHBORHOOD ORGANIZATION. SO TO DETERMINE THE QUICK AREA OF THE PROGRAM AND THE GOAL --
ONE OF THE GOALS OF THE RISK ASSESSMENT IS TO -- TO RECOMMEND THE HIGHEST RISK ORGANIZATIO TO -- TO ESTIMATE OR REVIEW -- FOR EXTERNAL OR IERNAL REVIEW.
WE DETERMINED THAT THIS TH ASSESSMENT -- ANNUAL RISK ASSESSMENT. WE DETERMINED -- WE FIND -- WE OBSERVED THAT THEY CANNOT HAVE -- THEY DON'T HAVE THAT MUCH FUNDS TO RECOMMEND OSE HIGH-RISK ORGANIZATIONS TO
EXTERNAL ORGANIZATIONS. THEY HAVE A FORM -- THEY HAVE A 990 AND THEY LEFT OVER AS WELL THE USE FOR EXTERL AUDITS. SO HERE IT'S NOT AN ISSUE
RELATED TO THE RISK ASSESSMENT THEY ARE CONDUCTING THAT. THE REAL ISSUE IS THE GOAL OF THE RISK ASSESSMENT. WE CANNOT PROVIDE MORE SUFFICIENT -- WE CANNOT RECOMMEND SUFFICIENT NEIGHBORODS -- FOR THE FUNDS,
IT'S A HIGH-RISK AND TO GO TO THAT EXTERNAL REVIEW, WE DON'T HAVE SUFFICIENT FUNDS. THEY CAN ONLY RECOMMEND SO HERE WE RECOMMEND THAT THEY UPDATE THE RISK ASSESSMENT METHODOLOGY
BECAUSE TO ADD THAT DATA WE RECOMMEND THE NCR AND THE DFD WORK WITH THE CITY LEADERSHIP TO LOOK AT MORE -- TO LOOK AT MORE FUNDS TO -- TO -- MORE FUNDS FOR THAT PROGRAM SO THEY CAN
RECOMMEND MORE HIGH-RISK ORGANIZATIONS TO EXTERNA REVIEW -- FOR EXTERNAL REVIEW. SO MANAGEMENT INTERNAL -- POSTED OF THAT THEY USED A
NUMERIC VALUE, VALUE PLACED ON EACH NEIGHBORHOOD AND THERE'S A PRIORITY LIST OF THOSE ORGANIZATIONS WHICH USED AN AUDIT. A FINANCIAL REVIEW ON IRS 990 PROCESS.
FUTURE ASSESSMENT WILL INCORPORATE A HYBRID SYSTEM BY ATTACHING A COLOR-BASED SYSTEM WITH THE NUMICAL ISOLATION SO MANAGEMENT AGREED TO WORK WITH THE CITY LEADER MAYBE IN THE NEXT BUDGET CYCLE TO
RECOMMEND MORE FUNDING TO ALLOW THEM TO -- FOR THAT EXTERNAL REVIEW. >> ANY QUESTIONS ON THAT SECTION? I'VE GOT ONE QUESTION.
UNDER THE EXISTING RISK ASSESSMENT PROCESS, I'M WONDERING IF NCR COULD SPEAK TO HOW MANY AUDITS MIGHT BE FLAGGED THROUGH THAT PROCESS AND THEN THE FOLL-UP QUESTION WOULD BE UNDER THE NEW RECOMMENDED ACTION PLAN HERE, HOW THAT MIGHT CHANGE
IN THE FUTURE. >> CHAIR PAYNE,HAT'S AN INTERESTING QUESTION THAT THAT I'VE BEEN THINKING ABOUT WHEREAS, IF WE'RE REQUIRING RECEIPTS AND INVOICES FOR ALL OF
THE REIMBURSEMENTS, DOES THAT ACTUALLY DECREASE THE AMOUNT OF POTENTIAL UTILIZATION OF A THIRD-PARTY AUDITOR? 'CAUSE IF YOU THINK ABOUT -- A LOT OF THESE ORGANIZATIONS ARE UNDER $50,000 AND IF WE CAN SHOW THAT
THROUGH CONFIRMATION OF THE RECEIPTS THAT IT'S BEEN SPENT IN THIS ACCORDANCE WITH THE CITY LAWS FUNDING GUIDELINES, IS THERE -- IS THERE STILL A NEED FOR A LARGE AUDIT, IF YOU WILL?
WE INTERNALLY BELIEVE WE'LL HAVE TAKE A LOOK AT WHAT THAT MEANS BUT AT THE SAME POINT, WE NEED TO HAVE ACCESS TO THE THIRD-PARTY AUDITING SERVICE -- WE'VE ALWAYS THOUGHT -- ONE PERSON TRYING TO COMMIT FRAUD IS VERY TOUGH. IF YOU HAVE TWO OR
THREE THAT ARE TRYING TO COMMIT FRAUD, THEN IT'S HARDER FOR US TO DETECT SO WE OFTENTIMES DURING THE RISK ASSESSMENT MEETING WE LOOK AT A VARIETY OF FACTORS ANYWHERE BETEN -- THINGS LIKE DID A STAFF MEMBER -- LONG-TERM STAFF MEMBER
LEAV HAS THERE BEEN A BOARD MASS EXODUS OR EXODUS OF BOARD MEMBERS? HAVE WE HEARD RUMORS? ARE RESIDENTS COMING TO US? OFTENTIMES OR SOME OF THE TIMES WE NEED TAKE A LOOK AT THE FINANCES OF THE PROGRAM AND THEY
ALSO LOOK AT THEIR POLIES AND PROCEDURES MAKING SURE THEY'RE FOLLOWING ALONG WITH BOTH THE GUIDELINES, THEIR OWN BYLAWS. AND THEN WHAT WE ALSO NEED WITHIN THE CITY TO MAKE SURE THOSE ORGANIZATIONS ARE RUNNING PROPERLY.
IT GOES TO HAVING RESIDENTS THAT ARE PROUD OF THEIR NEIGHBORHOOD ORGANIZATION 'CAUSE THEY CAN SEE AN ACTL AUDIT THAT SAYS THEY'RE DOING GOOD WORK. SO IT STRENGTHENS THE RELATIONSHIP BETWEEN RESIDENTS AND NEIGHBORHOODS I UNDERSTAND.
IT ALSO STRENGTHENS THE OTHER CITY DEPARTMENTS THAT WANT TO WORK WITH OTHER NEIGHBORHOOD ORGANIZATIONS IS THAT THEYAN SEE HERE'S AN AUDIT THAT THEY WENT THROUGH WHEREAS, OTHER CITY DEPARTMENTS IF THEY WANT TO WORK WITHHE NEIGHBORHOOD -- MAYBE THE LACK OF -- A LACK OF
KNOWLEDGE ABOUT HOW THOSE ORGANIZATIONS OPERATE WITH THE CITY, MAYBE THERE CAN BE SOME TREPIDATION THERE ESPECIALLY WITH NONPROFITS. WE WANT TO MAKE SURE OUR NEIGHBORHOOD ORGANIZATIONS ARE SOLID. I WANT TO POINT OUT THAT THIS NEIGHBORHOOD ORGANIZATIONS
HAVE BEEN DOING THIS SINCE 1993, 1995. THEY'VE BEEN EXTREMELY SUCCESSFUL. WE HAVEN'T SEEN A WIDESPREAD FRAUD SO I WANT TO MAKE SURE THAT WE SAY THIS PUBLICLY THAT WE BELIEVE OUR NEIGHBORHOOD ORGANIZATIONS ARE
OPERATING HOW WE WANT THEM TO OPERATE AND THEIR CITY STAFF IS MONITORING THAT AS WELL. SORRY, COUNCIL MEMBER PAYNE. I DON'T KNOW IF I ANSWERED YOUR QUESTION. >> YOU ACTUALLY BROUGHT BROADER CONTEXT TO THAT. I THINK MY
QUESTION WAS MORE SPECIFICALLY AROUND, YOU KNOW, ON AVERAGE, HOW MANY AUDITS- OR HOW MANY ORGANIZATIONS ARE GETTING FLAGGED FOR AN AUDIT THROUGH OUE THAT NUMBER GOING UP OR DOWN? AND I THINK YOU KIND OF DIRECTIONALLY ANSWERED THAT AND
I DON'T KNOW IF YOU WOULD HAVE THE NUMBER AT THE TOP OF MIND? >> CHAIR, SINCE I'VE BEEN HERE ABOUT 7 YEARS OR SO, WE'VE WENT HAVING PROBABLY 5 TO 10 HIGHER RISK THAT WE WOULD LIKE TO DO SOME TYPE OF FINANCIAL TOUCH POINT WITH.
NOW, LAST YEAR I BELIEVE THAT THERE WERE TWO OR THREE THAT WE REALLY FELT THAT NEEDED TO -- TO BEING AUDITED. I ACTUALLY BELIEVE THAT THE NEIGHBORHOODS 2020 PROGRAMS, THE GUIDELINES, THE REQUIREMENTS THAT WE INSTITUTED IN THIS
PROGRAM HELPED THOSE ORGANIZATIONS. KIND OF MOR SOLID INTERNALLY TO FOE, LIKE, FINANCIAL POLICY PRACTICES AND THE ORGANIZATIONS ARE FOLLOWING TH. I'M SEEING THE NUMBER OF ORGANIZATIONS THAT NEED TO BE
AUDITED LESSEN BUT I'M ALSO SEEING COSTS ASSOCIATED WITH AUDITS. IT USED TO BE ABOUT $3500. NOW, IT'S 6, $7,000 TO COMPLETE THESE AUDITS. WE ALSO PAY FOR 990s WHICH AVERAGE $1200.
F YOU HAVE 70 NEIGHBORHOODS ALL NEEDING I90 WORK, OUR BUDGET IS $75,00 FOR THIS WORK, JUST THE 990s TAKE UP AROUND THAT MUCH. SO WE REALLY HAVE TO FIGURE OUT WAYS DUE TO BUDGET CONSTRAINTS, HOW CAN WE DO A GOOD JOB TO MAKE SURE HE
CAN THAT WE CAN COMMUNICA THAT THERE'S NO FRAUD AND WASTE AND ABUSE HAPPENING. THANK YOU. >> YEAH, THANK YOU. MEMBER THOMPSON? >> THANK YOU, CHAIR PAYNE. I JUST HAD A QUESTION BASED
ON THAT IDEA. TALKING AGAIN ABOUT THE 990s AND LOOKING FOR POTENTIAL WAYS THAT WE WOULD IDENTIFY FRAUD. I KNOW THAT SOME SOME NONPROFITS, NGOVERNMENT ORGANIZATIONS USE
OTHER PLACES, CIVIC ORGANIZATIONS SUCH AS THE CITY AS THEIR -- I BELIEVE THE TERMINOLOGY IS THEIR FINANCIAL OPERATOR OR THEIR ORGANIZER WHERE THEY DON'T ACTUALLY DO A 990 THEMSELVES BUT PEOPLEET MONEY THROUGH THESE OTHER
ORGANIZATIONS. IS THERE ANY WAY FOR US TO FIND OUT IF SOME OF OUR CITY FUNDS ORGS IS GOING INTO -- IS THAT PART OF THE AUDIT INFORMATION OR NO?
>> CHAIR COMMISSIONER, CAN YOU REPEAT THE QUESTION? >> THE IDEA THAT IT OUR BODY WHOA ORGANIZATIONS, WHICH ARE CIVICALLY FUNDED, AS YOU SAID -- WE PAY FOR THE 990s; RIGHT? >> CORRECT. >> WOULD BE CONSIDERED AN ORGAZER FOR A DIFFERENT
NONSTRUCTURE-- WHAT A LOT OF PEOPLE WOULD LOOSELY DEFINE A NONPROFIT THEY DON'T TECHNICALLY HAVE A BOARD OR THAT REQUIREMENT THEY DON'T USE THE CITY OR THE ORGANIZER. DO THEY -- THAT INFORMATION AS PART OF THE
AUDIT -- IS THERE ANY WAY TO KNOW THAT'S GOING ON LOOKING IN THE FINANCIALS OR IS IT JUST NUTS AND BOLTS LIKE INPUT OUTPUT LIKE WE DO THE INFORMATION? >> CHAIR THOMPSON, EXCELLENT QUESTION. I BELIEVE WHAT YOU'RE ASKING DO NEIGHBORHOOD
ORGANIZATIONS ALSO OPERATE AS A FISCAL AGENT -- >> THERE IT IS. FISCAL AGENT IS THE PHRASE. >> FOR COMMUNITY-BASED ORGANIZATIONS. >> YES. >> THAT MIGHT NOT BE 501(C)(3)S OR WORKING TOWARDS THAT AREA. IN FACT, THAT HAPPENS QUITE A FEW TIMES. THAT HAPPENS A LOT
WITHIN PROGRAMS -- ORGANIZATIONS, CBOS MIGHT COME IN AND SAY WE WANT TO DO WORK IN YOUR NEIGHBORHOOD AND IT MATCHES UP WITH THE NEIGHBORHOOD'S MISSION STATEMENT AND THEY OFTENTIMES WORK TOGETHER. THAT INFORMATION DOES COME THROUGH THE 990s AND THE
RECORDING PERIOD. IT COULD BE THROUG PASS-THROUGH. IT COULD BE THROUGH PROGRAMMATIC FUNDS BUT WHAT WE HAV OUR THIRD-PARTY AUDITORS DO IS KIND OF A MINNEAPOLIS HYBRID 990 MODEL WHERE THOSE AUDITORS TAKE A LOOK
AT THE ENTIRE PROGRAMMING AND PROCESS OF THOSE FUNDS THAT COME THROUGH THE ORGANIZATI. OFTENTIMES, WE CAN SEE A NEIGHBORHOOD OR AN ORGANIZATION THAT MAYBE NEEDS ANOTHER -- A HIGHER FINANCIAL TOUCH POINT THO
GET ALL OF THE INFORMATION WHEN IT COMES TONCOME AND EXPENSES AND THEN WE CAN ASK QUESTIONS THROUGH THERE. THE WAY WE DO OUR 990s IS NOT A STRAIGHT -- GIVE US YOUR BALANCE SHEET AND WE'LL FILL THIS OUT BUT RATHER, GIVE US YOUR BALANCE SHEET BUT LET'S DIG
DOWN TO IT A LITTLE BIT MORE SO WE CAN ALSO EXPLAIN THE NUMBERS OF THE 990 TO THE BOARD MEMBERS TO MAKE SURE THEY'REWARE HOW THE ORGANIZATION OPERATES. >> THAT MAKES SENSE. BUT WE DON'T -- WE AS A
CITY INTO THE NEIGHBORHOO ORGS, INTO THESE OTHER LOOSELY HELD ORGANIZATIONS -- WE DON'T HAVE ANY AUDIT CAPACITY OVER THOSE THINGS, DO WE? AND DO WE HAVE ANY SORT OF INFORMATION WHETHER OR NOT THOSE ACHIEVE THE CITY'S SAID MISSION STATEMENTS? I
MEAN, DO WE HAVE ANY SORT OF RUBRIC TO UNDERSTAND WHERE THAT MONEY ENDS UP GOING OR ONCE IT PASSES THROUGH A NEIGHBORHOOD SNORES IT >> CHAIR, COMMISSIONER -- ARE YOU ASKING, KE -- >> DO WE HAVE -- IF I WERE TO GIVE AN EXAMPLE -- LET'S SAY
SOMEONE IS LIKE T FISCAL ORGANIZER -- I CAN'T -- >> FISCAL AGENT. >> THAT'S IT. THANK U. (LAUGH.) >> TO -- LET'S SAY ME, I JUST CLAIMED THAT I'M GOING TO DO WORK. I'M A TEACHER. I'M GOING TO DO NEIGHBORHOOD TUTORING, RIGHT, AND NEED A SPACE AND I NEED, YOU KNOW, SOME MONEY TO DO
WHAT I DO IN ORDER TO PAY MY BILLS; RIGHT? WOULD THERE BE ANY SORT OF -- IF I GOT FUNDED THROUGH MY NEIGHBORHOOD ORGANIZATION BECAUSE THEY WERE, LIKE, HEY, WE COULD REALLY USE THIS THERE'S A LOT OF KIDS WHO NEED TUTORING; RIGHT? WOULD THERE BE ANY ACCOUNTABILITY ON ME FROM THE CITY OR WOULD IT BE
JUST THROUGH MY NEIGHBORHOOD ORG. DOES MY EXAMPL SORT OF MAKE SENSE? >> YES, SORRY, CHAIR, COMMISSION MEMBER -- >> LIKE, WOULD I BE OBLIGATED TO TOE SHOW MY RECEIPTS TO THIS COMMITTEE, FOR EXAMPLE? >> IF THESE FUNDS A CITY FUNDS
THAT AT THAT YOU'RE ACCESSING OR FUNDS THAT WERE ALLOCATED TO THE NEIGHBORHOOD ORGANIZATION AND THEN SUBALLOCATED TO -- TO A CBO, THEN THEY WOULD HAVE TO GO THROUGH THE SAME PROCESS BECAUSE THOSE ARE CITY FUNDS, TAX FUNDS
THAT OUR AUDITOR WOULD TAKE A LOOK AT. IF THESE FUNDS WERE TO COME FROM A FOUNDATION OR ANOTHER FOUNDATION OR ENTITY AND IT GOES INTO THE NEIGHBORHOOD ORGANIZATION, THEN THE CITY OF MINNEAPOLIS AND MY DEPARTMENT WOULD NOT HAVE PURVIEW OVER
THOSE FUNDS. >> GOT IT. THAT MAKES TOTAL SENSE. THANK YOU SO MUCH FOR UNDERSTANDING M QUESTION TO BEGIN WITH AND THEN BEGINNING TO UNDERSTAND IT. THANK YOU. >> ANY OTHER QUESTIONS? SEEING
NONE, I WILL DIRECT THE CLERK TO RECEIVE AND FILED THE REPORT AND MAKE A MOTION TO DIRECT STAFF T PUBLISH THE REPORT. ALL THOSE IN FAVOR SAY AYE. >> AYE. >> OPPOSED SAY NAY. THAT CARRIES. AND WE WILL MOVE ON TO ITEM NO. 5 WHICH IS THE 2025
ENTERPRISE RISK ASSESSMENT AND RISK-BASED INTEGRATED AUDIT PLAN AND I WILL INVITE T REPRESENTATIVE UP TO GIVE THE
REPORT. >> GOOD MORNING CHANCE FOR RAIN PAYNE AND COMMITTEE MEMBERS. TODAY WE'RE GOING TO PRESENT THIS YEAR'S ENTERPRISE ASSESSMENT THAT HELPED US BUILD OUR AUDIT PLAN FOR THE UPCOMING YEAR. LAST YEAR WE PRESENT THE RISK ASSESSMENT DURING THE APRIL AUDIT COMMITTEE MEETING,
HOWEVER, WE THOUGHT IT'D BE APT FOR US TO PRESENT THE AUDIT PLAN AND THE RISK ASSESSMENT REPORT DURING THE FEBRUARY MEETING SINCE THIS IS THE FIRST MEETING OF THE YEAR, AND WE'RE PROPOSING OUR PLAN FOR THE WHOLE YEAR. FIRST OF ALL, I'D LIKE TO THANK MY STAFF FOR ALL THEIR
HARD WORK AND DEDICATION TO COMPLETE THE ASSESSMENT AND THE AUDIT PLAN FOR US TO PRESENT TODAY. SO TODAY THESE ARE THE TOPICS WE'LL BE PRESENTING.
WE ARE REQUIRED TO USE INDEPENDENTSSESSMENT GOVERNMENT RISK CONTROL PROCESS GUESS TO EVALUATE HOW THE CITY IS FUNCTIONING. IDENTIFY THOSE AREAS WHERE THERE ARE SIGNIFICANT UNDERLYING RISKS THAT WILL ALLOW US TO DEPLOY OUR
AUDIT RESOURCES IN THOSE AREAS. AUDIT DIVISIONS WORK IS GUIDED BY THE INTERNATIONAL STANDARDS FOR THE PROFESSIONAL PRACTICE OF INTERNAL AUDIT WHICH ALSO CALLED THE STANDARDS. THE INSTITUTE OF INTERNAL AUDITS
IIA TS THOSE STANDARDS WHICH GIVES A PERSONAL AUDITING FRAMEWORK TO PERFORM THE RISK ASSESSMENT. THE OF THE PROCE WE CONSIDER VARIOUS RISKS SUCH AS STRATEGIC OPERATIONAL COMPLIANCE FINANCIAL IT, FRAUD AND OTHER RISKS AS WELL.
CONSIDERING THE KEY RISK IN THESE VARIOUS IMPORTANT AREAS WE GO ABOUT CONDUCTING INTERVIEWS, SURVEYS, INDUSTRY RESEARCH, NATIONAL TRENDS HE ACTUALLY. WE TRY TO TAKE A VERY BROAD ARRAY OFNFORMATION AND APPLY THE FRAMEWORK TO DETERMINE
WHICH AREAS WE THINK ARE THE MOST IN NEED OF AUDIT ATTENTION. AUDIT HAS SPENT SIGNIFICANT TIME OVER THE PAST SEVERAL MONTHS MTING WITH MANAGEMENT
ACROSS THE CITY DEPARTMENTS INVOLVING THE WORK AND AREAS BEING SEAS. AUDIT HELD APPROXIMATELY 16 MEETINGS TOGETHER. THE INFORMATION DURING THIS PROCESS IN THESE MEETINGS MANAGEMENT IS GIVEN OPPORTUNITY TO DISCUSS THEIR GOALS AND OBJECTIVES FOR THEIR
REPRESENTATIVE PROGRAMS. IN MANY OF THOSE DISCUSSIONS AUDIT INQUIRED OF THE PLANNED WORK AND FUTURE GOALS AND RISK AND CHALLENGES THE DEPARTMENTS ARE FANG.
ALL CITY OF MINNEAPOLIS PROGRAMS ARE INCLUDED IN THIS ASSESSMENT THAT INCLUDES THE PARK AND RECREATION BOARD AND THEIR PROGRAMS AS WELL. WE CONSIDER THE BUDGET AMOUNT AND ALSO ANY SIGNIFICANT CHANGES FROM YEAR-TO-YEAR IN THE BUDGET IF THERE IS ANY HIGH DOLLAR AMOUNT ASSOCIATED WITH SOME ACTIVITY
THERE'S A SIGNIFICANT RISK ASSOCIATED WITH IT AS WELL. SO WE ALSO CONSIDER PRIOR AUDIT COVERAGE AND AUDIT COVERAGE ACROSS E AT HER AND
WE WANT TO MAKE SURE WE ARE COVERING ALL AREAS OF WORK. WE RATE RK IN TERMS OF LISTEN HOOD AND IMPACT -- LIKELIHOOD AND IMPACT. LIKELIHOOD HOW COMMON WOULD AN EVENT BE PRESENT. THE RISK SIATION AND CAUSE SOME ISSUES
AND THE IMPACT IS IF SOMETHING GOESWRONG, HOW SIGNIFICANT AN IMPACT WOULD IT CREATE? HOW DISRUPTIVE WOULD IT TO THE CITY ENTERPRISE. WE ALSO CONSIDER MITIGATION EFFORT, FOR EXAMPLE, FINANCE
DEPARTMENT HAS ITS OWN INTERNAL CONTROLS TEAM TO MITIGATE SOME OF THESE RISKS SO THAT IS AN EXAMPLE OF THE MITIGATION EFFORT. THESE TYPES OF MITIGATION EFFORT HELP MINIMIZE THE EXISTENCE OFNHERENT RISK. AND I JUST WANTED TO NOTE
THAT THEOAL HERE IS NOT TO ELIMINATE THE RISK COMPLETELY BECAUSE TO COMPLETELY ELIMINATE THESE RISKS, ONE HAS TO STOP PROVIDING THESE SERVICES WHICH IS NOT POSSIBLE IN A GOVERNMENT SETTING. OR NOT PURSUE ANY NEW
OPPORTUNITY. SO THERE ARE ALWAYS GNG TO BE RISKS. THE GOAL IS HOW TO MINIMIZE HOW MUCH AS POSSIBLE AND NOT COMPLETELYELIMINATE. AND HERE ARE SOME OF THE FACTORS THAT MIGHT INCREASE OR DECREASE RISK AND WE CONSIDER
THESE FACTORS WHILE PERFORMING A RISK ASSESSMENT AS WELL. LIKE I MENTIONED PROGRAM BUDGET ANY PRIOR AUDIT FINDINGS AND ANY CERTAIN FINDINGS -- ANY STATE AUDITOR FINDINGS AS WELL. WHAT ARE THE COVERAGE OF THE EXTERNAL AUDIT SO WE DON'T HAVE
TO PERFORM ADDITIONAL AUDITING IN THOSE AREAS AGAIN SO THESE ARE THE MULTIPLE FACTORS WE CONSIDER AS A PART OF RISK ASSESSMENT PROCESS AS WELL. SO MOVING ON TO THE ROLE OF
AN INTNAL AUDIT IN THE GOVERNMENTS ORGANIZATION. SO AUDIT PROVIDES ASSURANCE TO THE ENTERPRISE WORKING WITH STAFF, MANAGEMENT AND CITY LEADERSHIP TO FOSTER RISK ASSESSMENT SO LONG IT HAS NO ROLEN MANAGING
THE RISK. HOWEVER, A IN THE ENTERPRISE HAVE RISK ASSESSMENT RISK MANAGEMENT ROLES AND RESPONSIBILITIES. SO THIS IS THE IIA'S TREE LINE MODEL DIAGR BECAUSE ANY TIME NORMALLY WHAT HAS IS WHEN
WE TALK ABOUT RISKANAGEMENT IT ALWAYS COMES UP -- I JUST WANTED MAKE SURE TO HELP YOU UNDERSTAND WE ARE NOT ACTIVELY MANAGING THE RISK. IT'S THE ULTIMATELY THE RESPONSIBILITY OF MANAGEMENT TO HAVE THE RISK TOLERAN AND RISK APPETITE TO MAKE SURE HOW THEY
WANT TO MANAGE THOSE RISKS AND WEE HERE JUST TO ASSESS THOSE RISKS, RIGHT, BECAUSE WE DIDN'T WANT TO TAKE THAT ROLE OF A MANAGEMENT TO PERFORM THESE KINDS OF RISK MANAGEMENT. SO THAT'S WHAT THIS MODEL IS SHOWING. LIKE I SAID,
EARLIER, INTERNAL AUDIT HAS LIKE A THIRD LINE RULE IN GOVERNANCE WITH THE ORGANIZING MANAGEMENT RESPONSIBLE FOR THE FIRST AND SECOND LINE. WHICH GENERALLY INCLUDE RISK IDENTIFICATION A ESTABLISHMENT OF CONTROLS AND OVERSIGHT AND MONITORING. AUDITORS ARE UNIQUELY
POSITIONED TO SERVE AS RISK SPECIALISTS ON EACH ENGAGEMENT TO HELP MANAGEMENT IDENTIFY RISK AND APPROACHES FOR-IT STRENGTHENING THE CONTROL ENVIRONMENT. HOWEVER, INTERNAL AUDIT SERVES AS A THIRD LE OF DEFENSE IN PROVIDING THE INDEPENDENT AND OBJECTIVE ASSURANCE AND IS ADVICE ON THE
ADEQUACY AND EFFECTIVENESS OF THE GOVERNANCE AND THE RISK MANAGEMENT FRAMEWORK. AUDIT DIVISIONS INDEPENDENCE FROM TH RESPONSIBILITIES OF MANAGEMENT INCLUDING RISK MANAGEMENT IS CRITICAL AUTHORITY OBJECTIVITY
AND CREDIBILITY. NOW MOVING ON TO THE -- SOME OF THE RISKS THAT WE IDENTIFIED -- SO BASED ON THESE
PROVEN METHODS THESE TEAMS ARE BROUGHT AND MAY IMPACT DEPARTMENTS IN OPERATIONS IN VARYING WAYS. THE LIST IS NOT EXHAUSTIVE BUT RATHER ARE SELECTIVE THEMATIC RISKS WITH GH INHERENT AND HIGH RESIDUAL RISKS. A NUMBER OF THESE RISK
TEAMS WERE IDENTIFIED AND DESCRIBED IN PREVIOUS RISK ASSESSMENTS WELL. FOR SOME THERE MAY NOT BE CLEAR OPPORTUNITY FOR AUDIT AT THIS TIME, HOWEVER, WE WOULD LIKE TO HIGHLIGHT THEM AT THE FOR MANAGEMENT SO THESE RISKS COULD BE PROACTIVELY MANAGED BY THEM
BECAUSE WHAT HAPPENS SOMETIMES BASED ON THE RESOURCES WE HAVE IN THE AUDIT DIVISION AS WELL IT'S NOT POSSIBLE TO CONDUCT ALL THE AUDIT PJECTS THAT WE HAVE IN THE AUDIT AS WELL BUT THIS YEAR OUR GOAL IS TO AT LET IDENTIFY THOSE TEAMS AND LET MANAGEMENT KNOW THAT, LIKE,
PROBABLY THEY NEED TO WORK PROACTIVELY TO MANAGE SOME OF THOSE RIS RECEIVED OF JUST AUDITS JUST TO PROVIDE AUDIT AND VING THE MANAGEMENT ACTION PLAN TO MITIGATE SOME OF THESE AUDITS AS WELL. SO THERE ARE TOTAL 11 TEAMS
THAT WILL BE PRESENTING TODAY. THESE TEAMS WILL BE DISCUSSING BELOW IN 16 DIFFERENT SECTIONS SO WE'LL DISCUSS THESE SEPARATELY AS WELL. SO THE FIRST ONE IS THE POLITICAL CLIMATE, GRANTS AND FUNDING. POLICIES AND
PROCEDURES, PROCUREMENT AND CONTRACTING. ENTERPRISE RIS MANAGEMENT, GENERATIVE AYE, INFORMATION GOVERNANCE AND DATA, INFORMATION TECHNOLOGY AND CYBERSECURITY, EVERYONETION OF THE ENTERPRISE RESOURCE PLANNING
ERP SYSTEM AND CODE ENFORCIBLE PENDING CONSENT DECREE AND OTHER COMMUNITY SAFETY PLANS AS WELL AS COMMUNICATION CHANNELS. SO THOSE ARE OUR 11 RISK TEAMS THAT MAY BE DISCUSSING TODAY -- WE'LL BE DISCUSSING TODAY.
THE FIRST TEAM -- >> SIR, I JUST WANTED TO JUMP IN AND RECOGNIZE MEMBER HOSBEIN. >> YES, CHAIR PAYNE, THANK YOU. JUST A QUESTION -- I REALLY APPRECIATE THE RISK THEMES EMPOWERING DIFFERENT DIVISIONS TO REALLY HOLD THEMSELVES THEMSELVES ACCOUNTABLE WITHIN
IS FRAMEWORK. IS THERE PLANS ALSO TO GIVE THEM ANY SORT OF STRUCTURE TO DO THAT WITHIN THEIR DIVISION? SO GREAT THEMES TO LOOK OUT FOR WITHIN THEIR SCOPE BUT IS THERE POTENTIALLY A QUICK CHEAT SHEET OR RESOURCE TO
HELP THOSE DIVISIONS EMPOWER THEMSELVES OUTSIDE OF THE AUDIT. >> IN THOSE MEETING WE DO DISCUSS WHAT ARE SOME OF THE WAYS THEY CAN MITIGATE SOME OF THESE RISKS AS WELL SO WE DO HAVE THOSE DISCUSSIONS SO THERE'S NO ONE SET OF CHECKLIST BUT WE DO DISCUSS WHAT ARE WAYS
TO MITIGATE SOME OF THOSE RKS AS WELL SO WE DO HAVE THAT CONVERSATION WITH MANAGEMENT. >> PERFECT. IT MIGHT BE INTERESTING FOR A FUTURE YEAR. I DON'T WANT TO ADD MORE TO YOUR PLATE ESSENTIALLY WITH YOU FOLKS. I'VE SEEN REALLY SUCCESSFUL KIND OF SELF-SPOT CHECKS OR SELF-SURVEY KIND OF
FORMS BEING A REALLY GREAT AUDIT TOOL TO KEEPNDIVIDUALS ACCOUNTABLE. AND THAT MIGHT BE A REALLY NICE ADDITION AS YOU MOVE FORWARD KIND OF WITH THIS RISK THEME OF THEM POWERMENT TO REALLY THINK ABOUT WHAT FOLKS CAN DO FOR THEMSELVES TO KEEP THEMSELVES WITHIN COMPLIANCE.
THANK YOU. >> OKAY. MACRO ON TO THE FIRST TEAM WHICH IS THEOLITICAL CLIMATE. SO CHANGES TO THE POLITICAL ENVIRONMENTS MAY CHALLENGES IN CITY OPERATIONS AND FINANCES.
CITY LEADERSHIP EXPECT CONCERNS THAT THE HEIGHTENED TENSION IN THE POLITICAL ENVIRONMENT AT THE NATIONAL AND STATE LEVEL COULD CREATE AN UNSTABLE REGULATORY AND RISK ENVIRONMENT FOR THE CITY. MINNEAPOLIS HAS DRAWN A LARGE AMOUNTS OF NEGATIVE ATTENTION IN RECENT YEARS WHICH HAS LED TO
CONCERNS THAT THE CHANGES IN LEADERSHIP AT THE FEDERAL LEVEL COULD IMPACT THE CITY MORE. SO IN THE PAST, THEREFORE, DEPARTMES SHOULD HAVE PLANS IN PLACE TO DEAL WITH CHANGES IN LEADERSHIP TO MINIMIZE THE RISK OF DISRUPTIONS TO SERVICES HAVE THE WERE TO OCCUR SO BASICALLY
EN WE'RE TALKING ABOUT THIS ONE SO WE ARE MENTIONING ABOUT SOME OF THESE -- WITH THE HEALTHCARE ISSUES AND IMMIGRANT ISSUES MIGHT CHANGE HOW THE CITY WANTS TO RESPOND IF SOMETHING W LEVEL SO WE NEED AS A CITY BE
AWARE OF SOME OF THOSE CHANGES AND HOW TO HANDLE IN THE FUTURE IF THAT WORK WERE TO OCCUR. MOREOVER, IALSO APPEARS THAT THERE HAS BEEN A LACK OF
ALIGNMENT BETWEEN THE GROUP AND THE AND RELATIONSHIP IS ESSENTIAL FOR E EFFECTIVE GOVERNANCE FOR THE CITY -- THESE MISALIGNMENTS NOT ONLY IMPEDE DAY-TO-DAY OPERATIONS AND THE LONG-TERM CONSEQUENCES FOR THE STRATEGIC INITIATIVES, PUBLIC
TRUST AND SERVICE-DELIVERY. WHILE DISAGREEMENTS ARE A NATURAL PART OF THE DEMOCRATIC SYSTEM PROLONGED TENSIONS CAN ESCALATE LEADING TO THE GOVERNANCE, FINANCIAL STREAM AND REPUTATIONAL DAMAGE SO
PROACTIVELY MANAGING SOME OF THESE TENSIONS THROUGH STRATEGIC COMMUNICATION, CONCRETE RESOLUTION AND THE SHARED COMMUNITY GOALS IS ESSENTIAL TO SAFEGUARDING THE LONG-TERM EFFECTIVENESS AND THE INTEGRITY OF THE GOVERNMENT.
AND THIS TEAM -- WE JUST WANTED TO HIGHLIGHT BUT WE DON'T HAVE ANY SPECIFIC AUDIT PLAN AROUND IT BUT... SO THE NEXT ONE IS THE GRANTS AND FUNDING. SO, SO POTENTIAL REDUCTION IN FEDERAL
FUNDING POSE A SIGNIFICANT RISK TO THE CITY'S ABILITY TO SUSTAIN CRITICAL STAFFING LEVELS ESSENTIAL FOR DELIVERING PUBLIC SERVICES. FEDERAL FUNDING PLAYS A VITAL ROLE IN SUPPORTING KEY PROGRAMS AND ESSENTIAL STAFF
POSITION IN THE CITY, RECENT DEVELOPMENTS AT THE FEDERAL GOVERNMENT INDICATE POTENTIAL CUTS TO THE FEDERAL ALLOCATIONS WHICH COULD SIGNIFICANTLY IMPACT THE CITY'S ABILITY TO FUND CRITICAL STAFFING POSITION. A REDUCTION IN FEDERAL
FUNDING MAY LEAD TO STAFFING SHORTAGES RESULTING IN IMPACT OF DELIVERING CRITICAL CIT SERVICES AND THE POTENTIAL LOSS OF FEDERAL FUNDING NECESSITATE FINDING ALTNATIVE FINANCIAL RESOURCES TO SUSTAIN CRITICAL ROLES.
THE UNCERTAINTIES SURROUNDING FEDERAL FUNDING COULD NEGATIVELY IMPACT EMPLOYEE MORALE AND PRODUCTIVITY ESPECIALLY FOR STAFF WHOSE POSITIONS ARE STAFFED BY FEDERAL GRANTS. OVER 60% OF THE EMERGENCY MANAGEMENT STAFF IS
CURRENTLY RELIANT ON FEDERAL GRANTS FOR DAILY OPERATIONS SILARLY FTES IN THE FIRE DEPARTMENT ARE THROUGH FEDERAL FUNDS AND JOB INSECURITY COULD RESULT IN TURNOVER AND DECREASED
RECRUITMENT AND COST AND MANAGEMENT WOULD LIKE TO SEE MAYBE HOW WE COULD PROVIDE ALTERNATIVE FUNDING WHETHER THROUGH GENERAL FUND OR OTHER FUNDS -- TO FUND SOME OF THESE CRITICAL STAFFING AT THE CITY.
SO THE NEXT ONE IS THE POLICY AND PROCEDURES. THIS THING WAS HIGHLIGHTED DURING E LAST YEARS RISK ASSESSMENT AS WELL. WITH THE NEW GOVERNMENT STRUCTURE AUDIT NOTED THERE APPEARS TO BE ADDITIONAL UNCERTAINTY REGARDING ENTERPRISE
POLICIES SPECIFICALLY AUDIT HAS NOTED THAT THE CITY DOES NOT HAVE A CLEAR STANDARDIZE POLICIES OR PCEDURES FRAMEWORK OR DEPARTMENT. GENERALLY RESPONSIBLE FOR HANDLING AND STYLING THEIR OWN WAYS. THERE ARE UNCLEAR EXPECTATIONS WHAT SHOULD OR SHOULD NOT BE IN THE POLICY
AND/OR PROCEDURES AS WELL AS LACK OF CLARI ON THE TOTAL POPULATIONS OF POLICY AND PROCEDURES ACROSS THE ENTERPRISE. IN ADDITION, THE PATH FOR APPROVAL ALSO VARIES AND IS NOT FULLY CLEAR FOR CITY LEADERS FURTHERING DELAYS AND ACCESS
BECAUSE THERE COULD BE SOMETIMES POLICIES AND PROCEDURES WHH ARE MORE ADMIN POLICIES WHICH HAS TO GO THROUGH THE ADMINS VERSUS OTHER TYPE OF ENTERPRISE-WIDE POLIES TO GO THROUGH THE COUNCILS. BASICALLY WE DON'T HAVE A GOOD PROCESS OF IDENTIING WHAT THOSE POLICIES
AND PROCEDURES ARE SO THAT WHAT COULD THOSEEXT STEPS COULD BE SO INSTEAD OF FIGURING OUT SOME OF THOSE STEPS WE'D RATHER, YOU KNOW -- WE HAVE SEEN IN THE PAST, LIKE, PROBABLY THERE IS NOT WILLINGNESS TO CHANGE THESE
POLICIES AND PROCEDURES WHICH HINDERS THE ACTIVE PROCESS OF UPDATINGND CREATING WHENEVER THERE'S A CHANGE IN PROCESS AS WELL. SO ESTABLISHED POLICIES AND PROCEDURES CREATE A FRAMEWORK AND STANDARDIZED WORK
ENVIRONMENT THAT BENEFITS BOTH ORGANIZATIONS AND EMPLOYEES. RECENTLY A BUDGET WAS PASSED FOR THE PURCHASE OF THE POLICY PROCEDURES MANAGEMENT PROGRAM SO IT'S CRITICAL FOR THE CY TO CREATE, ADOPT AND MANAGE POLICIES AND PRODURES AND TO GIVE MANAGEMENT CREDIT, THERE
HAS BEEN IDENTIFICATION ESPECIALLY FOR THIS YEAR TO RECOGNIZING, YEAH, WE NEED -- THERE IS A NEED FOR, YOU KNOW, TO HAVE A STANDARDIZED PROS AND THERE HAVE BEEN CERTAIN STEPS THAT HAVE ALREADY BEEN TAKEN TO WORK THAT PATH BUT WE JUST WANT TO HIGHLIGHT THIS AS A RISK AS
WELL FOR NOW. >> MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE. I REALLY APPRECIATE THIS BEING A LESSON -- I THINK AS YOU MENTIONED IT'S AN ISSUE HIGH UP IN EVERY SINGLE AUDIT THAT COMES FROM YOUR TEAM. AND I GUESS I
HAVE A QUESTION ABOUT REPORTING TO THIS PROJECT FROM YOUR TEAM 'CAUSE SO MUCH HARD WORK HAS BEEN DONE AND YOU'VE PROBABLY SEEN -- WELL, POLICIES AND PROCEDURES THAT ARE EITHER THERE OR NOT THERE THAT COULD KIND OF GO TO THIS MASTER LIST. IS THERE ANY SORT OF ACCUMULATION
OF ALL THESE POTENTIAL ISSUES WHERE THEY COULD START LIKE A PRIORITIZATION LIST OF WHICH POCIES SHOULD BE GETTING ATTENTION FIRSTS. AND I UNDERSTAND THIS IS TO SET THE STRUCTURE TO DO IT BUT IN PARALLEL ALL THE WORK THAT'S BEING DONE TODAY WITH ALL THESE
OTHER AUDITS IS THIS BEING CAPTURED IN THIS -- >> AT LEAST FROM MY PERSPECTIVE WHENEVER WE'RE LOOKING AT THE POLICIES HE AND PROCEDURES THE FIRST THING HAS TO BE THE IDENTIFICATI OF THE WHOLE POPULATION; RIGHT? BECAUSE WITHOUT THAT, WE DON'T -- WE CAN'T LOOK AT WHICH POLICY WE
SHOULD PRIORIZE VERSUS OTHERS SO AT LEAST THE FIRST WOULD BE THE IDENTIFICATION OF THE TOTAL POLICIES AND PROCEDURES AND THEN FROM MY PERSPECTIVE PROBABLY I WANT TO LOOK AT WHETHER IT AFFECTS THE ENTERPRISE-WIDE SOME OF THE POLICIES AND IF THEY'RE
NOT AS UPDATED AS PSIBLE SO MAYBE START FROM THERE AND THEN BASED ON THE CRITICALITY OF THE PROGRAMS AS WELLND HOW ALL OLD THESE POLICIES AND PROCEDURES ARE, AND IN THE AUDIT IN THE PAST WE IDENTIFIED SOME OF THESE POLICIES THAT HAVE NOT BEEN
UPDATED SINCE THE 1980s; RIGHT? SO LOOK ATOME OF THOSE -- SO THERE'S A MIXED BAG OF WAYS WE CAN PRIORITIZEOME OF THESE POLICIES AND PROCEDURES BUT THE FIRST THING, LIKE, I SAID, IS AT LEAST IDENTIFY THOSE POLICIES AND PROCEDURES. >> PERFECT I KNOW IT'S A HARD BALANCE BETWEEN DOING THE WORK
AS THE BIGGER PROJECT WORK IS BEING DONE BUT I JUST APPRECIATE THE WORK YOUR TEAM DOES AND REPORTING TO US, WHAT, POLICIES ARE REALLY CRITICAL AND I HOPE IT'S CRITICAL TO BE COMMUNICATED TO THE PUBLIC SERVICES. THANK YOU.
>> THANK YOU. >> SO AS A RESULT AUDIT HAVE PROPOSED AN ENGAGEMENT TO POLICIES AND PROCEDURES PROCESS CONSULTATION TO WORK WITH THE CITY LEADERSHIP ON AN ADVISORY ROLE AND THIS WAS PART OF OUR
LAST YEAR'S AUDIT PLAN AS WELL. SO THE NEXT ONE IS PROCUREMENT AND CONTRACTING. PROCUREMENT ACTIVITIES INCLUDING CONTRACTING AND CTRACT MANAGEMENT POSES A RISK AND CONTINUES TO BE A CHALLENGE FOR
MANAGEMENT AND DEPARTMENT. PROCUREMENT PROCESS ENSURES THE CITY GETS BEST VALUE FOR THE GOODS AND SERVICES TRANSPARENCY AND ACCOUNTABILITY AND PREVENTION OF THE - AND IT ONLY FACILITATES THE ACQUISITION OF GOODS AND SERCES ESSENTIAL FOR
THE DELIVERY PUBLIC SERVICES BUT ALSO TRANSFERS COMPETITION FAIRNESS HELPS MINIMIZE THE RISK OF FRAUD AND ABUSE, AND IS DURING THE -- THERE'S AN ONGOING OF THE CITY'S PROCUREMENT
PROCESSES AND INEFFICIENT PROCUREMENT PROCESS CAN LEAD TO A MULTITUDE OF RISKS INCLUDING FINANCIAL LOSSES, MISALLOCATION OF RESOURCES, FRAUD, LEGAL NONCOMPLIANCE AND DAMAGE TO THE ORGANIZATION'S REPUTATION. THERE HAVE BEEN EVENTS OR CONCERNS ABOUT CONTRACTING
ACTIVITIES IN CERTAIN AREAS SUCH AS IN THE NEIGHBORHOOD SAFETY DEPARTMENT WHERE AUDIT IS ACTIVELY WORKING ON AN ENGAGEMENT RIGHT NOW, HOWEVER, AUDIT HAS NOTED THAT THE RISK AND CHALLENGES ARE ENTERPRISE-WIDE.
AS ABOUT THE 2024 AUDIT PLAN AIT HAD RECOMMENDED THIS PROJECT AS PHASE 2 OF THE PROCUREMENT-RELATED REVIEW WHICH WILL CARRY FORWARD TO THE 2025 AUDIT PLAN AS WELL ALSO THERE'S A NEIGHBORHOOD SAFETY CONTRACT MANAGEMENT AUDIT THAT IS IN PROGRESS TO REVIEW THE CONTRACTING PROCESS IN THE
DEPARTMENT, WHICH WE'RE DOING RIGHT NOW. SO THE NEXT ONE IS ENTERPRISE RISK MANAGEMENT. A LACK OF CONSISTENT METHODICAL
APPROACH TO THE RISK MANAGEMENT AND CITI EXPORTERS RISK. AND I -- AS I MENTIONED EARLIER IN THE PRESENTATION, CITY MANAGEMENT SERVICES IS THE FIRST LINE OF DEFENSE BY LEADING AND DIRECTING THE RISK MANAGEMENT
IDENTIFICATION ASSESSING MONITORING AND MANAGING RISK AND EFFECTIVELY IMPLEMENTING A RISK MANAGEMENT REPORT AND. SENIOR MANAGEMENT ALSO SERVES AS THE SECOND LINE OF DEFENSE OF CHALLENGING THE FIRST LINE OF
DEFENSE PROVIDING OVERSIGHT OF THE RISK TOLERANCE AND APPETITE FOR THE ORGANIZED DEVELOPING THE RISK MANAGEMENT FRAMEWORK PROVIDING INDEPENDENT REPORTING AND ESCALATION AND PROVIDING SPECIALIZED ADCE AND TRAINING. HOWEVER, THE CITY DOES NOT HAVE INTEGRATED ER PGRAMMING EXISTS
AND IT ONLY EXISTS IN ONE OF THE SILOS TO BE MORE EFFECTIVE IN
THE FUTURE. AS AN ERM PROGRAM MATURES THERE IS A GREATER POTENTIAL WORDED TO USE IT AS A MANAGEMENT TOOL THAT GATHERS DATA TO BETTER DRIVE ORGANIZING LEADERS DECISION-MAKING PROCESSES AS WELL.
AUDIT DIVISIONS ANNUAL RISK ASSESSMENT PROCESS COULD BE MORE IMPACTFUL SHOULD HAVE IT REFERENCE TO THE CITY'S INTEGRATED ERM IN WHICH ENTERPRISING DATA COULD BE ANALYZE AA RISK ENVIRONMENT BECOMES MORE COMPLEX AND EMERGING RISKS CONTINUE T RISK
POTENTIAL IMPACTS AND HIGH LIKELIHOODS THE CITY OF MINNEAPOLIS MAY EXPLORE IMPLEMENTATION OF AN INTEGRATED ERM FRAMEWOR CHAMPIONED BY A RISK -- CHIEF RISK OFFICER POSITION THAT HELPS THE CITY UNDERSTAND ITS HOLISTIC EXPOSURE TO RISKS THAT IMPACT IS MISSION
STRATEGIC GOALS AND OBJECTIVES AND OPERATIONS. AUDIT WILL CONTINUE DISCUSSING AND WORKING WITH STAKEHOLDERS WITHIN E ENTERPRISE -- IN THE INTERIM AUDIT ALSO HAS SEVERAL PROJECTS
OVERLAPPING WITH OTHER RISK TEAMS RELATED TO THE RISK MANAGEMENT OR RISK ASSESSMENT ACROSS THE ENTERPRISE FOCUSING ON IT ASPECTS AND INTERNAL CONTRO. SO -- SO THESE ARE THE PROJECTS WE ALREADY HAVE IN THE PLAN WHICH WE'RE COUNTING OVER
TO THE 20124 AUDITING PLAN AND THE FIRST IS THE BUSINESS IMPACT ANALYSIS AND BUSINESS UPDATES CONSULTATION INTERNAL CONTROLS PROGRAM PROCESS AUDIT. ADDITIONALLY RELATED TO RISK MANAGEMENT EFFORTS BY MANAGEMENT WITHIN THE
DEPARTMENTS. AUDIT HAS ONE PROJECT MOVE INTO CONTINUOUS MONITORING AFTER PROVIDING AN UPDATE IN 2024. WHICH IS RELATED TO THE NEIGHBORHOOD SAFETY DEPARTMENT RISK SESSMENT WHICH WE WORK WITH
THE DEPARTMENT TO HELP THEMSELVES IDENTIFY THE PROGRAMMING AND RISK POTENTIALS THEY MAY HAVE AND AS PART OF THE RISKS THEY'LL BE WORNG ON AND AS PART OF THE AUDIT OUR ROLE IS TO CONTINUALLY MONITOR IF
THEY'LL BE WORKING ON SOME O THESE RISKS AND MONITORING SOME OF THESE RISKS OR NOT AND THAT'S SOME OF THE TRANSPARENT MONITORING THAT WE HAVE IN PLAN FOR THE CONTINUING MONITORING.
SO THE NEXT ONE IS GENERATIVE AYE. ARTIFICIAL INTELLIGENCE. SO GENERATIVE AYE CONTINUES TO INCREASE IN POPULARITY AND USE CHANGING WORK HABITS AND POSING UNIQUE RISKS.
ONE OF THE MERGING RISKS WE ARE FACING OF TODAY IS THE USE OF GENERATIVE AYE BY CITY EMPLOYEES WITHOUT GOVERNMENT FRAMEWORK. THE INTEGRATION OF AYE INTO CITY OPERATIONS HOLD IMMENSE POTENTIAL FOR ENHANCING EFFICIENCY IN IT IMPROVING
SERVICE-DELIVERY AND DRIVING INNOVATION, HOWEVER, TO REALIZE THESE BENEFITS WHILE SAFEGUARDING AGAINST POTENTIAL RISKS, IT'S IMPORTANT TO ESTABLISH A ROBUST POLICIES AND PROCEDURES GOVERNING THE RESPONSIBLE USE OF AYE. UTILIZING AYE IN THE CITY'S
OPERATION PRESENTS INHERENT RISKS PARTICULARLY CONCERNING ENSURING NONPUBLIC DATA. NONPUBLIC DATA WHICH ENPASSES SENSITIVE AND CONFIDENTIAL INFORMATION HOUSES WITHIN THE CITY A HEIGHTENED LEVEL OF RISK WHEN INTEGRATED WITH AYETOOLS. ONE OF THE PRIMARY RISKS IS
THE POTENTIAL COMPROMISE OF DATA PRIVACY AND CONFIDENTIALITY WHEN NONPUBLIC DATA IS SHARED WITH THE SYSTEMS THERE'S A RISK OF UNAUTHORIZED ACCESS OR DISCLOSURE LEADING T BREACHES OF PRIVACY LAWS AND REGULATIONS UNDERMINE PUBLIC TRUST IN THE
CITY'S ABILITY TO PROTECT SENSITIVE INFORMATION BUT ALSO EXPOSE INDIVIDUALS TO POTENTIAL HARM INCLUDING IDENTITY THEFT, FINANCIAL FRAUD OR DISCRIMINATION. COMPREHENSIVE POLICIES PROVIDE A FRAMEWORK FOR ENSURING THAT AYE TECHNOLOGIES ARE DEPLOYED IN A MANNER THAT
UPHOLDS THE PRINCIPLE OF IRNESS, TRANSPARENCY AND ACCOUNTABILITY. THEREFORE, A CLEAR GOVERNANCE FRAMEWORK AND ACCOUNTABILITY MECHANISM ARE ESSENTIAL FOR MAINTAINS PUBLIC TRUST AND CONFIDENCE IN THE CITY'S USE OF AYE. IT IS IMPERATIVE FOR THE CITY TO CREATE AND IMPLEMENT
ROBUST POLICIES AND PROCEDURES TO MITIGATE THESE RISKS AND ENSURE THAT THE USE OF AYE TECHNOLOGY IS CONDUCTED IN A IN MANNER THAT UPHOLDS THE HIGHEST STANDARDS MUCH ETHICAL AND LEGAL INTEGRITY. HERE WE'RE TRYING TO -- I UNDERSTAND THE CITY DOES HAVE
GUIDELINES AND VIDEOS TO HELP UNDERSTAND THE EMPLOYEES -- HOW TO GO ABOUT USING THE GENERATIVE AYE BUT WHAT WE'RE PROPONG IS TO HAVE A ROBUST POLICY AND PROCEDURES AND GUIDELINES AND FRAMEWKS AS WELL BECAUSE SOMETIMES WHEN YOU HAVE ONLY THE GUIDELINES, IT'S HARD TO CREATE
THAT KIND OF ACCOUNTABILITY IF SOMETHING WERE TO HAPPEN SO THAT'S WHY -- INSTEAD OF JUST IS HAVING GUIDELINES WE'RE PROPOSING TO HAVE A ROBUST POLICIES AND PROCEDURES REGARDING USES OF THE AWKAS WELL. SO THE NEXT ONE IS
INFORMATION GOVERNANCE AND DATA. >> ONE MOMENT. >> SURE. >> MEMBER HOSBEIN? >> THANK YOU, CHAIR. JUST ANOTHER -- SO THE LAST BULLET POINT PRINCIPLES OF FAIRNESS TRANSPARENCY AND ACCOUNTABILITY. I WOUL ALSO ARGUE THAT
ACCURACY -- WHILE IT'S KIND OF CAPTURED IN ALL OF THOSE TRANSPARENCY CAN'T BE TRANSPARENT IF IT'S NOT ACCURATE. I THINK THAT'S ONE OF THE BIGGEST, I THINK, FOR THE -- THE KIND OF EVERY DAY EMPLOYEE ACROSS-THE-BOARD IS THE ACCURACY
OF RELYING ON SUMMERTION AND ANALYSIS BY AYE AND IT JUST NOT BEING ACCURATE AND I THINK ESPE OF THE AUDIT SPACE, WHAT A COOL IDEA AND WHAT AN EFFICIENT IDEA IF YOU PUT A REQUEST IN TO THE
DEPARTMENT TO SAY: HEY, WE NEED ALL THESE DOCUMENTS AND THEY ASK AYE, SUMMARIZE THESE. IF THERE'S NO CHECKS ON THAT, WE'RE POTENTIAY DOING MORE WORK AS A AUDIT TEAM AND, 2, GETTING INACCURA DATA THAT POTENTIALLY
COULD BE REALLY COMPOUNDING WHEN IT'S BEING -- YEAH, OUTLINED TO CITIZENS AND RESIDENTS AND -- YEAH, I JUST THINK THERE'S AN ACCURACY PIECE I WOU LOVE TO HAVE CAPTURED HERE BECAUSE THAT IS SO -- YOU KNOW, EVEN YOU SEARCHING GOOGLE RIGHT NOW, WHATEVER YOU GET AT THE TOP IS
SOMETIMES -- THAT DOESN'T SEEM RIGHT, RIGHT? EVEN BASIC THINGS LIKE THAT BUT I THINK AS PEOPLE ARE TRYING TO BE MORE EFFICIENT AS WE TRY TO BE WITH POTENTIAL STAFFING ARE SHORTAGES AND I THINK IT'S IMPORTANT WITH THE CONDUCTING THE AUDIT SPACE.
>> THANKS. >> SO THE NEXT RISK TEAM IS THE IMPLEMENTATION GOVERNANCE AND DATA. SO, SO OUTDATED OR NONEXISTENT POLICY FRAMEWORKS AROUND INFORMATION GOVERNANCE MAY CREATE RISK TO THE OPERATIONS AND COMPLIANCE WITH
BEST PRACTICES AND THE STATUTORY AUTHORITIES. INFORMATION GOVERNANCE REFER TO FRAMEWORK OR POLICIES PROCEDURES AND TECHNOLOGIES THAT ENSURE DATA IS MANAGED SECURELY, ACCURATELY AND IN COMPLIANCE WITLEGAL AND REGULATORY REQUIREMENTS. EFFECTIVE INFORMATION
GOVERNANCE IS CRITICAL FOR MANAGING PUBLIC TRUST ENSURING TRANSPARENCY AND ENABLING DATA-DRIN DECISION-MAKING. A LACK OF ROBUST INFORMATION GOVERNANCE EXPOSES THE CITY TO SIGNIFICANT LEGAL OPERATIONAL AND REPUTATIONAL RISKS POTENTIALLY UNDERMINING THE
SERVICE-DELIVERY STRATEGIC PLANNING AND COMMUNITY CONFIDENCE DISORGANIZED DATA STORAGES AND RUTABLE QUESTIONS SLOWS DOWN ADMINISTRATIVE OCESSES, INCREASES OPERATIONAL COSTS AND CAUSES DUPLICATION OF
EFFORTS. IT HANDLES THE DEPARTMENTAL COLLABORATION AND REDUCES OVERALL PRODUCTIVITY. IN PRIOR YEARS, AUDIT HAD LISTED A GENERAL CONSULTATION REGARDING THE INFORMATION GOVERNANCE ON THE AUDIT PLAN BUT THE PROJECT DID NOT COME TO FRUITION FOR SEVERAL REASONS
NAMELY AN IMMATURE ENVIRONMENT FOR CONSULTATION TO TAKE PLACE. AUDIT WILL LEND ITS EXPERTISE FOR THE DEVELOPMENT OF THESE SYSTEMS THERE BE ADDRESSING THE HIGH RISKS AS THE CLERK'S OFFICE DEVELOPS THE OVERARCHING SYSTEM. THEREFORE, WE -- THE AUDIT
IS PROPOSING AN ENGAGEMENT RELATED TO THE INFORMATION GOVERNANCE CONSULTATION TO ASSESSOLICY FRAMEWORK WITH A FOCUS ON INFORMATION GOVERNANCE. THE NEXT TEAM IS
INFORMATION TECHNOLOGY AND CYBERSECURIT THEITY IS STILL FACING HEIGHTENED RISK RELATED TO CYBERSECURITY AND OTS OUR ATTENTION AND RESOURCES. THE CITY AND PARK BOARD
LIKE OTHER MUNICIPALITIES AND OTHER ORGANIZATIONS CONTINUE TO FACE CYBERSECURITY AND RANSOM THREAT, RANSOMWARE THREATS. THERE'S BEEN AN INCREASED OF ATTEMPTED AND SUCCESSFUL TALKS ACROSS THE COUNTRY, FOR EXAMPLE, IN IT NOVEMBE 2024, THE PARK BOARD TECHNOLOGY SYSTEMS WERE ATTAED BY AN UNKNOWN PERSON OR
GROUPS AS A RESULT PHONE LINES WERE DOWN AND THE PARK BOARD IS CURRENTLY DETERMINING WHAT INFORMATION HAS BEEN BREACHED OR ACCESSED AS YOU CAN SEE THIS IS A REAL THREAT. THE IMPACT OF A SUCCESSFUL CYBERSECURITY ATTACK ON THE CITY COULD BE SEVERE INCLUDING COSTS RELATED TO THE SYSTEM DOWN TIME
RESPONDING TO THE THREAT AND PAYOUTS. AND INABILITY TO PROVIDE ESSENTIAL SERVICES TO THE PUBLIC FOR EXTENDED PERIOD OF TIME, DATA BREACHES AND THE LEAK OF DATA AND DAMAGES TO THE REPUTATION. RECOVERING FROM TALKS CAN TAKE EXTENDED PERIODS. THAT'S
WHY THE CITY NEEDS TO ENSURE THAT SYSTEMS ARE ADEQUATELY PROTECTED, STAFF ARE TRAINED AND KNOWLEDGEABLE AND THE UPDATED ACTION PLAN ARE USED IN THE EVENT OF SUCCESSFUL TALKS.
AUDIT HAS A NUMBER OF IS IT AND CYBERSECURITY ON AUDIT PLAN INCLUDING THE SOFTWARE SYSTEM IN CONTROLS SOFTWARE SYSTEM WHICH IS STILL IN PROGRESS. ENTERPRISE CYBERSITTER RISK
ASSESSMENT. PIMS SECURITY FOLLOW-UP, IT WAS FOLLOW-UP AUDIT THAT WAS INITIALLY CONDUCTED IN 2019. AND THEN THE NCC CYBERSECURITY AUDIT TO ENSURE CYBERSECURITY AND CONTROLS
AROUND 911 OPERATIONS AND OPERATION ARE OPERATING EFFECTIVELY. THE NEXT ONE IS THE IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING ERP SYSTEM.
DELAYS TO THE ERP SYSTEM IMPLEMENTATION POSES A RISK TO ALL PERSONAL EFFICIENCY FINANCIAL INTEGRITY AND STRATEGIC ALIGNMENT. THE ERP SYSMS ARE CRUCIAL FOR ENHANCING OPERATIONAL
EFFICIENCY, DATA INTEGRATION AND REPORTING CAPABILITIES WITHIN AN ORGANIZATION. THE PLAN IMPLEMENTATION OF THE ERP SYSTEM AIMS TO STREAMLINE ADMIN FUNCTIONS INCLUDI FINANCE, HUMAN RESOURCES, PROCUREMENT, GRANT MANAGEMENT AND OTHER CRITICAL SERVICES. HOWEVER, POTENTIAL DELAYS
IN THE DEPLOYMENT PROCESS POSE SIGNIFICANT RISKS THAT COULD IMPACT OPERATIONAL EFFECTIVENESS, FINANCI MANAGEMENT AND STRATEGIC OBJECTIVES. DELAYING THE ERP SYSTEM IMPLEMENTATION PROLONGS THE RELIANCE OF OUTDATED FRAGMENTED LEGACY SYSTEMS THAT ARE PRONE TO
INEFFICIENCIES. THESE SYSTEMS OFTEN REQUI MANUAL DATA ENTRY AND RECONCILIATION, INCREASING THE RISK OF ERRORS A DUPLICATIVE WORK. THIS OPERATIONAL LACK COULD HINDER THE CITY'S ABILITY TO RESPOND PROMPTLY TO STAKEHOLDER NEEDS
SUCH AS COUNCIL AND REGULATORY REQUIREMENTS. PROLONGED USE OF SUCH STEMS INCREASE THE OF DATA LOSS OR INCREASED ACCESS POTENTIALLY LEADING TO DATA REGULATION REGULATIONS.
INTERNAL STAKEHOLDERS INCLUDING EMPLOYEES AND IS MANAGERS MAY B SYSTEMS AND MANUAL PROCESSES IMPACTINGORKFORCE MORALE AND PRODUCTIVITY. IN ADDITION THIS MAY HINDER OR ABILITY TO ENHANCE FINANCIAL TRANSPARENCY, IMPROVED REPORTING
ACCURACY AND OPTIMIZED RESOURCE ALLOCATION BEFORE WE MOVE ON, ANY QUESTIONS FROM THE COMMITTEE? ALL RIGHT. SO AT THIS TIME I'D LIKE TO INVITE ONE OF OUR COMMUNITY SAFETY AUDITORS TO
PRESENT THE NEXT COUPLE OF THEMES. >> GOOD MORNING CHAIR PAYNE, MEMBERS OF THE COMMITTEE SO I'M GOING TO WALK THROUGH THE NEXT PORTION OF THE REPOR KIND OF THE NEXT THEMES OF THE OTHER ONES. THE NEXT THEME IS SOMETHING WE KIND OF DISCUSSED IN DIFFERENT WAYS, YOU KNOW,
RISK AROUND CONCEPT AGREEMENT, COMMUNITY SAFETY PLANS -- WHOOPS! SO BASICALLY, YOU KNOW, WE'VE TALKED ABOUT, I THINK, 2023 SAFETY RISK ASSESSMENT AND BRING IT BACK THIS YEAR THERE'S A LOT OF RISKS AND CHALLENGES RELATED TO THESE VARIOUS COMMUNITY SAFETY PLANS, YOU
KNOW, THERE'S SEVERAL DIFFERENT PLANS AND COMMUNITIES THERE'S THE CODE ENFORCEMENT AGREEMENT WHICH HAS BEEN OUT FOR A LITTLE BIT NO KIND OF REACHING THE NEXT STAGE WITH KIND OF YEAR 1 KIND OF -- OR YEAR 1 TIMELINE
AND YEAR 2 IS KIND OF OVERSIGHT AND CHECKING COMPLIANCE AND SOME OF THAT STUFF. THERE'S A PENDING DEPARTMENT OF JUSTICE CONSENT DECREE. SOMEONE SENT AN ATTACHMENT WITH THE DUPLICATIVE INFORMATION AND SAFE AND
COMMUNITY -- WHICH IS A COMMUNITY SAFETY PLAN WHICH CONTAINS, YOU KNOW MORE POLICING, YOU KNOW, AS WELL AS OTHER ASPECTS OF COMMUNITY SAFETY SO JUST KIND OF -- YOU KNOW, THERE'S ALL THESE OVERLAPPING AND VARIOUS THINGS D IN THE FUTURE NOT REACHING THE DEADLINES THE TERMS AND
EXPECTATIONS, YOU KNOW, I THINK, BUN THING THAT WE'VE KIND OF NOTED AND MIGHT WANT TO TOUCH UPON, YOU KNOW, IT'S BEYOND COMMUNITY SAFETY BUT A LOT OF DEPARTMENTS HAVE A ROLE THIS HR IT NEEDS, FINANCE A LOT OF KIND OF COLLABORATION A LOT OF STAKEHOLDERS INVOLVED HERE AND
AS PART OF THIS THERE'S PROCESS SYSTEMS, POLICIES AND PROCEDURES BEING LOOKED AT AND A LOOK AT SOME OF THOSE ITEMS AND JUST -- WE NEED TO BE THE COLLABORATION OF FOCUSED ON OVERCOMING THOSE CHALLENGES ANDTRATEGIC APPROACH AND THEN AGAIN KIND OF
THAT RESOTECHNOLO AND RESOURCES PLAY A ROLE AND NOT REACHING THE GOALS OF THIS PLAN NOT BEING ALIGNED, YOU KNOW, SOME OF THE MANDATED AND SOME ARE INTNAL GOALS GOES TO THE COUNCIL AND CITY ENTERPRISE AND IT NEEDS S
HAVE NEW RESOURCES ATTACHED AND THESE POINTS TO UNABLE TO DEMONSTRATE NEED AND BE IN EXPLAINS POSSIBLY BUT DEMONSTRATE IT WITH THE TOP TECHNOLOGY AND RESOURCES, FINANS AND THE SYSTEMS AND, YOU KNOW, ANY ASSOCIATED, YOU KNOW, OF NOT
BEING IN COMPLIANCE OF ANYTHING RESULTING FROM AS WE'VE SEEN RECENTLY WITH THE LAWSUITS AND SOME OF THE OTHER THINGS A LOT OF FINANCIAL RISK JUST TIED TO THE OPERATIONS. THE POTENTIAL RISK OF THE CITY NOT REACHING THE GOAL AND KIND OF FURTHERING THE PERCEPTIONS OF THCITY AND
KIND OF NEWS ARTICLES AND HEADLINES. I THINK THE KEY ONE IS KIND OF OPERATIONALLY AND PART OF THIS IS A LOT OF POLICIES AND PROCEDURES ON CHANGES TO PROCESSE NEW PROCESSES OVERSIGHT MECHANISMS THAT THAT WORKED THERE BEFORE THAT MIGHT BE IN PLACE NOW AND WE KIND OF NEED TO, YOU KNOW, NOT MEETING
ALL THOSE KIND OF NOT OUTLINING THEM I THINK THE CODE ENFORCEMENT AGREEMENTS IS COUPLE HUNDRED PAGES AND CODE EFFICIENCY A 200 PAGES AND THERE'S A LOT OF RECOMMENDATIONS AND THINGS THERE AND GOVERNANCE -- YOU KNOW, NOT HAVING THE GOVERNANCE OVERSIGHT
AND EVERYTHING TO MEET THE -- YOU KNOW, MEET THE NEEDS OF KIND OF BE -- PROVIDING GOOD OVERSIGHT AND MONITORING OF THESE SYSTEMS AFTER THEY'RE IN PLACE AND WTHER THEY'RE IN PLACE AND, OF COURSE, THE VARIOUS REQUIREMENTS AS OUTLINED
AS AUDIT WE -- YOU KNOW, THE RESPONSE FORESTATION -- GESTATION OF THE CODE ENFORCEMENT AGREEMENT AND THE CODE -- -- SO ANUDIT WE'VE BEEN EXPLORING OPPORTUNITIES -- I THINK AS WE GET TO KIND OF
THIS 1 STAYING UP TO INFORMATION AND BE A LOT MORE CLEAR FOR US WHAT WE CAN AUDIT AND KIND OF BE BEST BE THERE AND WE'RE INDEPENDENT AND THEY'RE INDEPENDENT AND WE DON'T WANT TO DUPLICATE WORK OR BE OVERLAPPING BUT, YOU KNOW, A LOT OF TIMES OUR WORK COINCIDES BECOMES KIND
OF A SIMILAR THING AND JUST THOSE ASSOCIATED RISKS ON THAT. THE NEXT ONE WE'VE TALKED ABOUT IN VARIOUS WAYS A COMMON AUDIT THEME AND DO WANT TO ELEVATE THAT UP AND COMMUNICATION CHANNELS AND LACK OF COMMUNICATION EXTERNALLY AND
TERIM AND INFORMATION IS SILOED INEFFICIENT OBJECTIVES AND FRUSTRATION TO STAKEHOLDERS AS WE FIRST PULLED THIS OUT THROUGH AN ENTERPRISER THEME AND RISK THEME KIND OF THE COMMUNITY 2023 PROGRAM WE WENT ACROSS ENTERPRISE OVERSIGHT IN OUR
REPORTS AND A LOT OF TIMES IT'S A COMMON CAUSE, A KIND OF ROOT CAUSE IN THERE SO, YOU KNOW, BASICALLY THERE'S CHALLENGES IN LEADERSHIP AND MANAGEMENT BOTH INTERNALLY AND EXTERNALLY AND THERE'S CHALLENGES WITH THE GOVERNMENT STRUCTURE BOTH WITHIN
THE ADMINISTRATION AND THE LEADERSHIP BRANCH -- YOU KNOW, IN BETWEEN WITH, YOU KNOW, DID OFFICE OF COMMUNITY SAFETY, OFFICE O PUBLIC SERVICE AND KIND OF THESE OTHER OFFICES, YOU KNOW, KIND OF BEING STOOD UP WITH THEIR OWN, YOU KNOW, NEW CHAIN OF COMMANDS, NEW EXPECTATIONS KIND OF HOW DO WE WORK ACROSS THE BARRIERS, YOU
KNOW, ONE DEPARTMENT WORK WITH THE OTHER AS WELL AS JUST KIND OF, YOU KNOW, WITHIN THE ADMINI BRANCHES THIS KIND OF NEW RELATIONSHIP THE NEW PARTNERSHIPS THEREOF. THEY'RE COMMUNICATING AND, YOU KN, A LOT OF TIMES WE SEE CHALLENGES WITHIN DEPARTMENTS AS
WELL AS WE HAVE TALKED ABOUT WITH INFORMATION WE SAW ONE AREA OR DIVISION MIGHT B WORKING AND THE OTHER MIGHT NOT BE AWARE OF IT, YOU KNOW, THAT LACK OF ALIGNMENT. OPERATIONS AND ALSO WHEN IT COMES TO POLICIES AND E OF IDENTIFIED IN TERMS OF NOT
BEING AWARE OF WHAT SOMEONE ELSE IS DOING AND DOING SIMILAR WORK OR NOT BEING AWARE THAT THERE IS ANOTHER POLICYR EXPECTATION, YOU KNOW, THAT MIGHT BE COVERED ELSEWHERE JUST BECAUSE WE DON'T REALLY HAVE THAT EFFECTIVE COMMUNICATION ENTERPRISE. THERE'S INEFFICIENCIES TIME AND
RESOURCES LOST, AND IN SOME AREAS, YOU KNOW, DIFFICULTY LEARNING HOW THINGS SHOULD BE DONE ESPECIALLY IF SOMEONE IS COMING NEW TO THE ENTERPRISE. WITH NOT KNOWING, YOU KNOW, WHO TO GO TO KIND OF HOW TO GO THROUGH WHAT. WE KIND OF HAVE
TALKED A LOT ABOUT. RELY OF INFORMAL COMMUNICATION CHANNELS INSTEAD OF THAT FORMAL DOCUMENTATION, AND WHEN PEOPLE LEAVE KIND OF -- KEY PEOPLE LEAVE, YOU KNOW, WHO'S GOING TO STEP IN PLACE AND TAKE CARE OF. THE LACK OF COMPLETE INFORMATION
TO MAKE DECISIONS. IF YOU DON'T HAVE A COMPLETE PICTURE, YOU KNO WE AREN'T STRATEGICALLY ALIGNED, YOU KNOW -- THEY MIGHT BE MAKING DECISIONS ON INCOMPLETE INFORMATION AND NOT THE WHOLE PICTURE KIND OF THAT WAY AND THEN FUNCTIONS AND KEY PROCESSES AND DESIGN SO ESPECIALLY WHEN IT
COMES TO IT PROCESSES SUCH AS THE NEW ENTERPRISE RESOURCE PLANNING SYSTEM WORKFORCE STRUCTURE MANAGEMENT KIND OF ALL THESE THINGS AND PUT THE RIGHT STAKEHOLDERS IN THE ROOM AND THOSE WHARE COMMUNICATING
EFFECTIVELY AND WE GO BACK AND FIGURE, WHAT, WAS KIND OF MISSED AFTER THE FACT, BUT, YOU KNOW, THE RISK OF THERE. WHEN IT COMES TO EXTERNALLY THERE'S A LOT OF ASSOCIATED RISK DUE TO THIS EFFECTIVE COMMUNICATION CHANNEL SO, YOU KNOW, IT IDENTIFIES AS A CITY
NOT COMMUNICATING EFFECTIVELY AND NOT REACHING THE INTENDED OFFIS WHICH IS ANYONE OR EFFECTIVENESS 1 ENTERPRISE IS PUTTING ONE OUTND THE OTHER MIGHT NOT BE AWARE OF IT AND THEN THERE'S KIND OF, YOU KNOW, WHO'S - THAT LACK OF COORDINATION STRATEGICALLY THAT
IMPACTS OUR OBJECTIVES AND GOALS, YOU KNOW, IN THE COMMUNITY KIND OF THROUGH OUR STAKEHOLDERS IS GOING TO LEAD TO A LACK OF TRUST, FRUSTRATION, NEGATIVE PERCEPTIONS AND THE PUTATIONAL RISKS AND KIND OF THAT PERCEPTION OF THE CITY OF, YOU KNOW, JUST NOT BEING A GOOD EFFECTIVE COMMUNICATOR THERE SO
SO AS WE'VE ALSO TALKED ABOUT COMMUNICATION IS A FACTOR IN POSSIBLE ROOT CAUSE AND OTHER RISKS WE IDENTIFIED, I THINK, EVEN WITHIN THE LAST COUPLE AUDIT REPORTS I TALKED ABOUT THAT THERE AND INCREASED OF RISKS AND CHALLENGES IT KIND OF PLAY AS ROLE IN TERMS OF HIM OF POLICIES AND PROCEDURESFOR
EXAMPLE, WHEN WE DON'T WE AREN'T COMMUNICATING FECTIVELY AND IT MIGHT NOT LEAD TO STALE MATES AND FURTHER LEAD TO OTHER RISK THEMES KIND OF BEING AMPLIFIED UP IN TERMS OF SEVERITY. AND WE DON'T HAVE A SPECIFIC ENGAGEMENT THIS YEAR ON THIS ONE BUT I THINK THERE'S --
ESPECIALLY WHEN IT COMES TO THE COLLABORATION AND ENTERPRISE BETWEEN THE OFFICES AND. I KNOW THERE'S BEEN DISCUSSION KIND OF SIMILAR BUT WE ARE LAUNCHED THAT AND, YOU KNOW, ENGAGEMENT TEST PLANS WE OFTEN REVIEW COMMUNICATION CHANNEL METHODS AS PART OF OUR TEST -- AS PART OF OUR RISK WHERE IT
BUBBLES UP THERE AS WELL. BEFORE I GET TO THE NEXT SECTION ANY OTHER QUESTIONS ON THESE THEMES? >> MEMBER THOMPSON? >> THANK YOU SO MUCH, CHAIR PAYNE. I TNK YOU FOR TAKING A MOMENT. THIS IS A LOT. IT
SEEMS LIKE THERE ARE A LOT OF -- I CAN'T DECIDE AS I'M LISTENING TO ALL THIS IF THERE'S JUST LOTS AND LOTS OF CHALLENGES OR LOTS AND LS OF PEOPLE OVERCOMING DESPITE ALL THESE THINGS. THE ONE PREVAILING QUESTION THAT CAME TO MIND AS YOU WERE SPEAKING: IS THERE ANY ONE
PLACE OR TS PLACE -- MAYBE I'M NAIVE TO WHAT OUR OWN COMMITTEE DOES, THAT WOULD MAKE RECOMMENDATIONS RECOMMENDATIONS TO BETTER HAVE -- TO BETTER HAVE THESE DEPARTMENTAL, YOU KNOW,
COMMUNICATE BETTER, NOT HAVE OVERLAP -- IS THAT KIND OF THE RECOMMENDATION THAT COMES TO US SORE IS THERE ANYTHING STRUCTURALLY IN THE CITY THAT WOULD SEE FROM THE TOP DOWN BESIDES THIS AUDIT? >> CHAIR PAYNE, COMMISSIONER
THOMPSON GOOD QUESTION. I THINK KIND OF WHENT COMES TO THE AUDIT'S APPROACH AND -- WELL, FIRST LET'S START THERE IN TERMS OF -- WHEN WE SEE IT WE MAKE RECOMMENDATIONSES AND KIND OF BRING PEOPLE TOGETHER AND A LOT
OF ENGAGEMENT ESPECIALLY AND THE KIND OF VIEW OF RELATIONSHIPS SO A LOT OF TIMES IF WE SEE SOMETHING IN ONE AREA, YOU KNOW -- CONNECT THEM OR KIND OF BRING THEM TOGETHER, WHEN IT COMES TO A SPECIFIC ENGAGEMENTS WE MAKE RECOMMENDATIONS. I THINK, YOU KNOW, AS A PART OF AN ENTERPRISE, I THINK THAT'S SOMETHING FOR THE LEADERSHIP IN TERMS OF IN
THEMSELVES, LIKE, THAT APPROACH. I KNOW BETWEEN THE OFFICES I THINK THERE'S BEEN DISCUSSION AND IT'S SOMETHING THAT WE TALKED ABOUT WITH THE GENERAL RISK ASSESSMENT DISCUSSION OF KIND OF THOSE, YOU KNOW, MECHANISMS AND, YOU KNOW, THOSE KIND OF PLANS AND I THINK THERE'S COMMUNICATION FUNCTIONS ALSO KIND OF SCATTERED
THROUGHOUT T CITY. THERE'S THE COMMUNICATIONS OFFICE AND COMMUNICATION ROLES OF SOME AREAS AS WELL WHICH COMPLICATES SOME THINGS AND I THINK THAT'S WHAT WE KIND OF TALKED ABOUT HERE AND THE NEED FOR THAT STRATEGIC -- NEED FOR THE CITY ALIGNMENT AND THE NEED FORHE CITY LEADERSHIP AND KIND OF STAKEHOLDERS AND OTHERS TO
REALLY KIND OF IDENTIFY KIND OF WHAT OTHER PATH AND KIND OF WHAT OTHER -- YOU KNOW, WHAT DOES THAT LOOK LE IN COMMUNICATION FOR THE CITY THERE, BUT, YOU KNOW, WHEN WE SEE SOMETHING AS AUDIT, WE SUBMIT RECOMMENDATIONS
AND HAVE MANAGEMENT RESPOND. >> THIS GOES BACK TO THE BEGINNING AND I'M SORRY SOME OF THESE THINGS HAVE BEEN REMEMBERED BEFORE AND THEY'RE STILL KIND OF ON THE DOCKET 'CAUSE IT'S NEEDS A STRUCTURAL COMPONENT TO HELPING TO ON
ESTABLISH SOME QUESTIONS. >> YEAH I THINK A LOT OF THIS STUFF -- KIND OF IDENTIFY SOME OF THE STRUCTURE IN TERMS OF WHAT AUDIT CAN DO, YOU KNOW, IT'S KIND OF MANAGEMENT DECISIONS, YOU KNOW, SOME OF IT IS RISK DECISIONS KIND OF BEYOND
OUR SCOPE OF KIND OF OTHER FACTORS EXTERNALLY SUCH AS WE KIND OF IDENTIFIED AND PLA A ROLE SO IT'S KIND OF A COMBINATION OF KIND OF EVERYTHING THERE. YOU KNOW, AS AUDIT WE FUS ON WHAT WE CAN DO AND ESPECIALLY, YOU KNOW -- IF Y CAN CALL IT THE STRUCTURE OF THINGS, YOU KNOW, CALL THOSE OUT
KIND OF BRINGING ATTENTION TO THEM I THINK OF THAT'S ON THAT AS WELL. >> THANK YOU, I APPRECIATE THE CLARIFICATION. >> SO NEXT THING I'M GOING TO GET TO THE NEW PROPOSED PROJECTS THE AUDIT PLAN SO WE HAVE 5 NEW PROJECTS THIS YEAR AS KIND OF HAVE A NUMBER OF THE PLAN
ALREADY AND WE IDENTIFIED SOME OF THOSE KIND OF WRAP THEM UP KIND OF OPPORTUNITIES FOR MORE SPECIFIC TARGET ENGAGEMENTS KIND OF WITHIN THOSE. YOU KNOW, AS WE LOOK AT -- IN OUR PLAN THIS YEAR WE LOOKED AT, YOU KNOW, SOME WAYS WHERE
THERE IS OPPORTUNITIES FOR US AT THE MOMENT TO COME IN AND DO SOME KIND OF MORE NARROWED KIND OF TARGET PROJECTS AND WE WORKED ON CONSULTATION ON THE INJURED ON DUTY WE WORKED TOWARDS PROCESSES ACROSS THE CITY AND DEPARTMENTS AND RISK MANAGEMENT
TAKES AND WE TALKED ABOUT ENTERPRISE RISK MANAGEMENT AND NEW RISK MANAGEMENT DIRECTOR AT THE CITY ANDAVE MORE OPPORTUNITY TO WORK WITH THEM AND KIND OF WORK WITH FINANCE AND KIND OF TAL MORE KIND OF THAT RISK MANAGEMENT KIND OF ASSESS, YOU KNOW, EVEN MORE OF THE APRIL LEVEL RISK
MANAGEMENT KIND OF THE ROLE THE DEPARTMES PLACE AND THE ROLE MANAGER MAKES AND MAKE OBSERVATIONS AND RECOMMENDATIONS ON THOSE. SO NEXT ARE RELATED TO MPD AND A LITTLE BIT OF MPD AND KIND OF MORE DATA REVIEW SO IT'S MET HE TO BE MORE TARGETED
FOCUSED AND WE'RE HOPING TO KIND OF REVIEW THE DATA AND REVIEW THEIR PROCESSES AND KIND OF UNDERSTAND A LITTLE BIT MORE ABOUT THE AREA AND KIND OF SEE WHAT THE DATA AND SEE WHERE THEIR PARTICIPATION OR LACK THERE HAVE AND KIND OF COMMUNICATE THAT OUT AND KIND OF
IF THERE IS ANY AREAS FOR FURTHER REVIEW KIND OF FURTHER INSIGHT, Y KNOW, ESPECIALLY IN SOME OF THESE AREAS AND THE FIRST ONE MPD RECITING AND RETENTION DATA REVIEW ON MPDS AND RENTION PROCESSES TO
IDENTIFY TRENDS AND POTENTIAL PROCESSES AND/OR PAIN POINTS TO RETAIN AND TRAIN STAFF AND IT'S A HOT TOPIC AT THE CITY AND THINGS HAVE BEEN TALKED ABOUT AND KIND OF LOOKING AT WHERE THEY'RE AT AND I'LL GET TO IT IN A LITTLE BIT BUT LET ME INCLUDE DLITH OF THE BACKGROUND PROCESS OF THOSE PAIN POINTS THERE AS
KIND OF THE HISTORICAL WORTH KIND OF REFERENCE WE DID A WHILE BACK WE DID AN MPD EQUITY AND RECRUITMENT WE LOOKED AT TH MPD RECRUITMENT PROCESS AND THEY DID 6 OR 7 STOPS AND STOPPED THERE
AND PHASE 2 DID NOT HAPPEN BUT ENTS HAPPENED BUT KIND OF LOOKING AT THAT SOME OF THAT WORK AND WHAT DOES THAT INFORMATION LEAD US TO AND THE NEXT ONE IS MPD PARK POLICE INVESTIGATION DATA IT AND WE REFERENCED A LITTLE BIT IN THE LAST AUDIT REPORT WITH THE MPD
FLEET MANAGEMENT. KIND OF WITH THE TRAFFIC INVESTIGATION UNIT, FOR EXAMPLE, AND KIND OF THEIR NUMBERS AND KD OF SIMILAR THINGS THERE BUT THROUGH THE PROCESS AND DATA INVESTIGATION INCLUDING DATA SUCH AS CASELOADS TRENDS AND COLLARATIONS WITH WORRIES JUST KIND OF SEE HOW
THOSE INDIVIDUAL UNIT ARE OPERATING AND KIND OF HOW THOSE PRIVATE PRACTICES ARE WITH THE DATA IS, AND E NEXT ONE I IDENTIFY DATA ARM. COACHING HAS BEEN TALKED ABOUT AND I KNOW THERE'S REQUEST FROM THIS COMMITTEE LAST YEAR TOSSESS
RISKS AND KIND OF OPPORTUNITIES ON THERE AND WE KIND OFAVE A COACHING PROJECT ON REVIEWING PROCESSES SYSTEMS. WE KNOW THERE'S BEEN WORK AS WE'VE KIND OF TALKED ABOUT WITH OPCR IN TERMS OF THEIR POLICIES AND
PROCEDURES INTERNAL POLICIES ANE TO BE COMPLETED AS PART OF THE YEAR 1 DEADLINE COMING UP IN A COUPLE WEEKS AND WE KIND OF ANTICIPATE WE KIND OF HAVE 6 MONTHS OF DATA WITH THIS NEW PROCESS OR KIND OF ONCE WE HAVE -- ONCE ENOUGH TIME HAS PASSED WITH THIS PROCESS IN PLACE FIRMLY KIND OF REVIEWING
THAT AS WE'VE NOTED RIGHT NOW IT'S BEEN A LITTLE BIT -- MPD FLEET AUDIT THERE'S BEEN CHANG BEEN A LOT OF THINGS KIND OF AT PLAY SO LATER ON IN THE LATE FALL, WINTER KIND OF EXPLORING ONCE WE HAVE ENOUGH DATA INFORMATION TO KIND OF LOOK INTO
HOW EFFECTIVE ARE THE CHANGES IN PLACE? THE NEXT ONE IS KIND OF -- JUST KIND OF A REGULAR ADD ON EVERY YEAR WE DO POLICE BODY WORN AUDIT AND POLICE BODY
CAMERA AND -- LAST YEAR WE DID THE PARK BOARD AND LAST YEAR WE'RE DOING THE MPD BODY CAMERA AND APR AUDIT JUST KIND OF THAT REGULAR COMPLIANCE WITH STATE -- STATE LAW REGARDING KIND OF THAT INFORMATION THERE.
AND THE NEXT ONE KIND OF -- AS WE KIND OF DID LAST YEAR JUST KIND OF SOME OTHER THINGS WE WANTED TO CALL ATTENTION TO. THINGS THAT WE'RE CHECKING, YOU KNOW, IT'S NOT A COMPREHENSIVE LIST BY NO MEANS BUT WE WANT TO
BRING OUT FOR FURTHER CONSIDERATION. SO FIRST ONE WE HAD THE 311 ISSUE REPORTED IN THE MEDIATION PROCESS, YOU KNOW, LOOKING AT HOW 311 WORKS WITH, YOU KNOW -- AS THE FACILITATOR COMES OUT, WORKING WITH ALL THOSE DEPARTMENTS AND DEPARTMENTS
RESPONSIBLE FOR GETTING INFORMATION BACK TO THEM AND THERE'S SOME OPPORTUNITIES ON THERE. CONTINUE TO LIST AND INFORMATION ON ALL FACILITIES AND ASSET MANAGEMENT SO WE HAD THE MPD FLEET MANAGEMENT AUDIT. WE HAVE, YOU KNOW, FACILITIES AUDIT IN THE PLAN AS WELL AS
WELL AS CITYWIDE FLEET AUDIT BUT THERE'S CONTINUED TO BE RISKS AROUND -- THERE'S A RISK AROD THE MPD AROUND THE CODE ENFORCEMENT AGREEMENT ANDHE ASSESSMENT REPORTS AND FACILITIES, YOU KNOW, SYSTEMS AND SOME OF THAT STUFF STUFF HAS
BEEN KIND OF USEFUL AS WELL ESPECIALLY AS WE'VE SEEN LATELY WITH THE LA FIRES, YOU KNOW, RISKS ON THE FACILITS THEMSELVES AND KIND OF THAT, YOU KNOW, FINANCIAL ASPECT AND KIND OF SOME OF THAT STUFF, YOU KNOW, JUST KIND OF A LOT OF THINGS WE'VE BEEN TRACKING IN TERMS OF FACILITIES AND MANAGEMENT AND
THINK ESPECIALLY AS IT MEETS THE IN EX FINANCIAL STAGE KIND OF INCREASED IMPORNCE THERE. OFFDUTY REPORT PROCESS AND AS LAST YEAR DID LITTLE BIT MORE OF AN UPDATE AS WE'VE BEEN MEETING WITH THEM AND TRACKING CHANGES WE DID AN AUDIT IN 2019. THERE'S STILL A COUPLE OPEN
AUDIT ISSUES I RELATED TO POLICIES PROCEDURES SYSTEMS AND TECHNOLOGY KIND OF THAT OVERSIGHT KIND OF COMPONENT. WITHIN THE LAST YEAR THERE'S BEEN KIND OF -- MPD HAS KIND OF CREATED THIS INSPECTIONS UNIT THAT'S KIND OF TEN OVER KIND OF SOME FOR FAMILIES OVERSIGHT
OVER OFFDUTY SO THEY'VE BEEN IMPLEMENTING SOME REVIEWS AND REQUIREMENTS AROUND TAKING OUT SQUAD CARS, FOR EXAMPLE, OR KIND OF SONDARY OFFDUTY EMPLOYMENT SITES AS WELL AS KIND OF JUST BEEN, YOU KNOW, ANTICIPATE -- ANTICIPATION WITH THE NEW WORKFORCE DIRECTORY PLACEMENT
PROGRAM TO DO MORE AS WE IDENTIFIED BACK IN THE AUDIT IT'S KIND OF STILL TRUE TODAY. THE SYSTEMS -- MULTIPLE SYSTEMS, MULTIPLE SOURCES OF DATA NOT THE MOST ACCURATE NOT ONLY THE MOST COMPLETE AND, YOU KNOW, TORING COMPREHENSIVE OVERSIGHT KIND OF BRING EVERYTHING TOGHER AND
MANUALLY THE SMART SHEETS, YOU KNOW, DIFFERENT THINGS AROUND THERE BUT THERE'S ANTICIPATION ON THE NEW WORKFORCE DIRECTION SYSTEM CAN HELP OUT AND THE PENDING CONSENT DECREE THERE'S
SECONDARY -- AND SCHEDULING EMPLOYMENT SITES SCHEDULING SUPERVISORS IS ONE OF THOSE ALWA WORKED KIND OF. WE KIND OF ANTICIPATE WITH KIND OF THE COUNCIL, YOU KNOW, USE OF CITY -- USE OF CITY VEHICLES ON
OFFDUTY KIND OF SOME OF THAT STUFF. SO WE STAY IN CONTACT WITH MPD ESPECIALLY WITH HOW SEEING WHAT THE CONSENT DECREE GOES THROUGH AND TO REVIEW SOME OF THE PROCESS AND REVIEW SOME OF THE INFORMATION AGAIN AND JUST KIND OF AN UPDATE ON THERE.
THE NEXT ONE KIND OF LAST YEAR AND KIND OF HERE SO JUVENILE CRIME COMMUNITY PARTNERSHIPS AND MPD PARTNERSHIPS AND PROGRAMS THERE'S A LOT OF FUNCTIONS COMING OUT OF MPD AND COMMUNITY SAFETY PROGRAMS AND NOT PART OF, YOU KNOWTHE LEGAL AGREEMENTS,
BUT, YOU KNOW, FUNCTIONS OF MPD THAT THAT WE'VE BEEN CONCERNED ABOUT JUVENILE CRIME, YOU KNOW, JUVENILE CRIME KD OF -- SOME OF THOSE PROGRAMS OPPORTUNITIES HAVE BEEN THE TOPIC OF DIUSSION AS WELL AS, YOU KNOW, MPD -- YOU KNOW THINGS MPD'S RESPONSE TO DOMESTI ABUSE OR
KIND OF THE, YOU KNOW, REPEAT COSTS FOR SERVICE AND KIND OF SOME OF THOSE STUFF AND EXPLORING, YOU KNOW, SOME OF THOSE PROGRAMS AND SOME OF THOSE SPECIFIC AREAS AND FUNCTIONS, YOU KNOW, OF MPD. NEXT ONE MPD BACKGROUND
CHECKS AND IT WAS PUT IN PLACE LAST YEAR IN TERMS OF THE WHOLE PROCESS. E'RE STILL KIND OF TRACKING THAT AND KIND OF HING TO AND CHECKING WITH THE BACKGROUND PROCESS AND CHECKING
IT OUT. EMERGENCY PREPAREDNESS AND RESPONSE THERE'S A 2022 AFTER ACTION REVIEW I BELIEVE KIND OF EMERGENCY MANAGEMENT STAKEHOLDERS KD OF COMPLETED. THERE'S ABOUT 20 RECOMMENDATIONS KIND OF 20 STEPS THERE, AND EXPLORING OPPORTUNITIES TO -- YOU KNOW, AS PART OF THAT
PLAN AND AS PART OF THOSE RECOMMENDATIONS KIND OF THE CURRENT STANDARDS IN TERMS THE EMERGENCY MANAGEMENT KIND OF EXPLORING ENGAGEMENTS THERE. WE ALSO ON THERE ADVISORY RELATED TO MPD SAFETY AND
SECURITY THERE'S KIND OF LEVELS OF OVERSIGHT WITH THE INDEPENDENT EVALUATORT AND WE'RE TRYING TO DO OUR BEST TO STAY INDEPENDENT AND I KNOW THOSE EVALUATION PLANS KIND OF UPDATE I WAS JUST KIND OF PUBLISHED ABOUT A COUPLWEEKS AGO AND KIND OF SOME OTHER THINGS AND WE
KIND OF ANTICIPATE, YOU KNOW, AS THE TIME RISES EITHER THROUGH TOPICS WE'VE DISCUSSED HERE AND KIND OF OTHER TOPICS, YOU KNOW, BEING AE TO, YOU KNOW, DO MORE COMMUNITY SAFETY OPERATIONS WORK THERE AND SESSION PLANNING OR SOMETHING THAT WAS KIND OF DISCUSSED OFF AND ON BUT I ALSO WANT TO CALL ATTENTION AS A
TOPIC ESPECIALLY WHEN IT COMES TO THE IMPORTANCE OF THE CITY, YOU KNOW, HOW IS THE CITY REPLACING TRAINING PLANNING FOR LEADERSHIP TURNOVER ESPECIALLY IN IT KEY OPERATIONS IS THERE KIND OF THOSE TRAININGS THOSE EFFECTIVE PLANS AND PLACES AND A
LOT OF TIMES IN THE CITY THE PARTS -- PEOPLE UP IN THE INTERIM LEVEL KIND OF -- YOU KNOW, THERE'S NOTHAT REPLACEMENT FOR THEM AND THAT POSITION ITSELF AND -- BUT THE OTHER THING I WANTED TALK
ESPECIALLY AFTER COVID AS A CITY INTERPRIZE LOOK AT THAT AND SESSION PLANNING. THAT'S -- THERE'S OTHER TOPICS AND I'LL TURN IT OVER TO PRODUCE THE WHOLE 2025 PLAN.
>> THANK YOU, CHAIR AND AUDIT COMMUNITY MEMBERS. I KNOW THAT WAS LONG AND DETAILED INFORMATION I'M PUTTING FORTH A PROPOSED AUDIT PLAN. WE KNOW IT'S QUITE AMBITIOUS AND WE'LL LIKELY NOT COMPLETE EVERY AUDIT THAT IS ON THE PLAN BUT WE
WANTED TO MAKE NOTE OF EVYTHING AND GIVE OURSELVES THE OPPORTUNITY TO START A PROJECT WITHOUT COMING BACK TO THE AUDIT COMMITTEE WHEN TH TIME AND SCHEDULE ALIGN WITH THE DEPARTMENTS THAT WE ARE WORKING WITH SO KNOWING THIS THIS IS A ROLLING AUDIT PLAN THINGS CAN BE
ADDED OR REMOVED AS TIME MOVES OF ON THE PLA YOU SEE IN FRONT OF YOU IS THE ONE WE PUT FORTH FOR ADOPTION AND WE HAVE A TOTAL
OF 29 PROJECTS. >> MEMBER WILLIAMS? >> THANK YOU, CHAIR PAYNE.
PUNT TO THE AUDITOR UPDATE AS WELL. I'M NOT SURE WHERE THIS BELONGS BUT I AGREE WITH THE WORD "AMBITIOUS" AND I AM CURIOUS HOW DO WE PRIORITIZE SO THAT THE AUDIT COMMITTEE AND OTHERS KNOW, WHAT, IS GOING TO
HAPPEN FIR VERSUS WHAT WE MAY BE THINKING MAY NOT GET INTO 2025. >> SURE. SO NORMALLY, BASED ON OUR CAPACITY, WE TRY TO AT LEAST COMPLETE THE PRIOR ONES THE
OLDER AUDITS AS SOON AS POSSIBLE UNLESS THERE IS, LIKE, A NEW PRIORITY BASED ON AN EMERGING RISK BUT WE AAYS TRY TO FINISH SOME OF THESE OLDER AUDIT PROJECTS ASOON AS IT'S POSSIBLE SO WE CAN FOCUS ON THE NEWER ONES. SO THAT HAS BEEN HOW WE HAVE BEEN CONDUCTING SOME
OF THESE AUDITS SO THAT A SINGLE AUDIT IS NOT SETTING IN 2025 AUDIT RAN FROM 2028. SO AT LEAST TO GET SOME OF THOSE AUDITS CLOSED AS SOON AS POSSIBLE SO THAT HAS BEEN OUR REGULAR PROCESS BUT IT AL
DEPENDS SOMETIMES THE ABILITY OF THE MANAGEMENT AND OTHER PARTMENTS BECAUSE THERE ARE CERTAIN TIME OF THE YEAR THAT CERTAIN DEPARTMENT MIGHT HAVE A LITTLE WORK VOLUME VERSUS OTHERS SO WE TRY TO REGULARLY TALK WITH THEM REGARDING WHAT IS THE BEST TIME TO CONDUCT SOME OF THESE
AUDI SO IT DEPENDS ON MULTIPLE FACTORS AS WELL BASED ON TRYING TO WRAP UP SOME OF THESE OLDER PROJECTS BASED ON THEIR AVAILABILITY AS WELL SO IT'S A MIXED FACTORS. >> SO MAYBE A SUGGESTION OR A THOUGHT IS YOU GUYS DO A
FANTASTIC JOB IN TH AUDITOR UPDATE OF GIVING US AN IDEA OF WHAT'S GOING ON. IT MIGHT BE HELPFUL AS WELL TO UNDERSTAND WHAT'S COMING SO AS SOON AS WE COMMITTEE WE HAVE A GOOD UNDERSTANDING IS WE BELIEVE THIS IS GOING TO HAPPEN THIS YEAR AND WE CAN DISCUSS IT VERSUS THIS
MAY GET PUNTED INTO FUTURE YEARS AS WELL. >> THANK YOU. >> THANKS. >> SEEING NO FURTHER -- OH, MEMBER OMPSON? >> SORRY, THANK YOU. I KNOW I'M, LIKE, HIDING OVER HERE.
THANK YOU FOR ALL OF THAT. I DID HAVE A QUESTION AS IT WAS REGARDING FUTURE CONSIDERATION, TALKING ABOUT JUVENILE CRIME. I RECOGNIZE THAT WE HAVE A LOT OF STUFF GOING ON IN THE CITY THAT HAD LITTLE DELICATE TOUCHPOINTS
IN THIS PRESENTATION REGARDING RFPS AND INVOLVING NEIGHBORHOOD SAFETY PLANS AND ALL OF THIS STUFF THAT HAS HIT THE NEWS IN RECENT WEEKS. WHY HAS IT BEEN DECIDED TO NOT MAYBE LOOK IN ON JUVENILE CRIME? I SEE -- I SEE THAT IT SAYS IN HERE IN THE SECOND PARAGRH THAT THIS HAS BEEN PUT
ON HOLD. AM I MISREADING THAT IS THAT SOMETHING THAT -- I'M CURIOUS WHY IT'S NOT SOMETHING WE'RE TRYING TO MAYBE COALESCE AROUND? >> SURE, AND THANKYOU. TRAVIS WILL BE ANSWERING THAT QUESTION. >> THANK YOU. >> CHAIR THOMPSO
KEY THING IS KIND OF THE IDENTIFYING ND OF THE SPECIFIC PROCESSES THE SPECIFIC TOPIC IN THERE IT'S A BROAD TOPIC AND THE PARTNERSHIP KIND OF RELATIONSHIPS AND THOSE WORKING TOGETHER AS AUDIT WE TRY TO IDENTIFY A TOPIC AND KIND OF OBJECTIVE IN THERE AND WE'RE
STILL KIND OF -- I THINK WORKING WITH MPD KIND OF THE STAKEHOLDERS AND, YOU KNOW, IF WE'RE GOING TO LOOK AT A PORTION -- IF WE'RE GOING TO LOOK AT KIND OF WHAT IS THE SPECIFIC THING THAT WE'RE EVALUATING KIND OF THE OPPORTUNITY THERE AND THAT'S WHY WE -- ESPECIALLY WITH A LOT OF THE THINGS THAT ARE KIND OF NEW
KIND OF EVOLVING AND KIND OF WITH THE OTHER PARTNERSHIPS AND OTHER STAKEHOLDERS OUTSIDE, YOU KNOW, WE STILL HAVEN'T IDENTIFY AND WORKINGITH THEM KIND OF IDENTIFYING THAT SPECIFIC TOPIC OR AREA WITN THE FUNCTION WITHIN THAT PROCESS TO KIND OF LOOK AT.
>> THANK YOU. DO THE STAKEHOLDERS INCLUDE SCHOOLS? >> GOOD QUESTION. AS AUDIT WE LOOK AT KIND OF -- THE RELATIONSHIP WITH THE CITY AND THE PARK BOARD HAVE AND I'M NOT SURE OF THOSE PARTNERSHIPS BUT THAT'S SOMETHING -- YOU KNOW,
BEFORE WE IDENTIFIED A PLAN AND LOOK AT SOMETHING ON KIND OF IDENTIFY WHAT ARE THE PARTNERSHIPS OR KIND OF AS ANOTHER TOPIC MAYBE WE DON'T KNOW -- THE COPY OF DATABASES OF PARTNERSHIPS --
>> FORGIVE ME FOR MY NAIVETE AND MY NEWNESS TO THIS BUT IF YOU CAN -- DO WE -- DO THE ORGANIZATIONS HAVE THE -- HAVE THEY TRADITIONALLY THE CITY AND SCHOOLS, DO THEY HAVE ANY DATA-SHARING? DO THEY HAVE ANY -- IS THAT IS IT EVEN PART
OF THE CONVERSATION RIGHT NOW IN THE CITY? >> CHAIR PAYNE, COMMISSIONER, I DON'T WANT TO -- THAT'S KIND OF A MANAGEMENT MORE-SPECIFIC AREA. >> I GOT IT. >> IN THE SCHOOL-BASED PROGRAMS, YOU KNOW, IN SOME OF THAT IS IN
THERE BUT SOME OF THE DEPARTMEN- >> SO FOR, SCHOOLS ARE NOT PART -- THEY'RE NOT PART OF THE STEHOLDERS THAT WE'VE IDENTIFIED AS BEING PART OF NEIGHBORHOOD SAFETY? IF THE ANSWER IS NO, I'M FINE. I'M
JU CURIOUS BECAUSE WHEN I SAW THAT, THAT'S SOMETHING TO LOOK FORWARD TO THANK YOU. >> AS A AUDIT TOPIC WE KIND OF LOOK AT HOW THE CITY WORKS AND IF THERE ARE THOSE CONTRACTS AND THOSE RELATIONSHIPS SOMETHING WE'R LOOKING AT KIND OF -- THE CONTRACT MANAGEMENT OR KIND OF
THOSE PARTNERSHIPS KIND OF HOW -- THEY'RE LOOKING AT THAT STUFF WITHOUT KIND OF A -- >> THANK YOU FOR THAT ANSWER. THANK YOU SO MUCH, CHAIR PAYNE, FOR THE TIME.
>> OKAY. NOW -- (LAUGH.) >> >> SEEING NO FURTHER QUESTIONS OR COMMENTS FROM COMMITTEE MEMBERS, IILL DIRECT THE CLERK TO RECEIVE AND FILED THE REPORT AND MOVE APPROVAL OF THE 2025 RISK-BASED INTEGRATED AUDIT PLAN. ALL THOSE IN FAVOR SAY AYE. >> AYE. >> THOSE OPPOSED SAY NAY.
THAT CARRIES, AND OUR LAST OF NEW BUSINESS IS A REQUEST FROM THE CITY COUNL TO UNDERTAKE AN AFTER-ACTION REVIEW OF THE CITY AND MPD'S ACTIONS RELATED TO THE CIRCUMSTANCES OF THE DEATH OF ALEX LUTHER.
>> CHAIR PAYNE AND THE AUDIT COMMITTEE MEMBERS IT'S FEBRUARY 13 MEETING. THEITY COUNCIL APPROVED OF A REQUEST TO THE CITY AUDITOR TO UNDERTAKE AN INDEPENDENT AFTER-ACTION REVIEW OF THE POLICE DEPARTMENT'S INVOLVEMENT IN RESPONSE -- AND
ALLISON LUSSIER DEATH. AS CITY AUDITOR I HAVE BEEN GIVEN THE REQUEST AND I BELIEVE IT WOULD BE BENEFICIAL FOR THE NEWLY APPOINTED CITY AUDITOR TO BE INFORMED AND INVOLVED IN THIS DECISION AS WELL SO TO ENSURE THE CONTINUITY AND THE CITY
AUDITOR HAS THE FULL CONTEXT, I PLAN ON HOLDING OFF ON MAKING ANY FURTHER DISCUSSIONS UNTIL H ALIGNMENT WITH HIS VISION AND MOVING FORWARD WITH THIS OFFICE. I THANK YOU FOR THAT UPDATE. ARE THERE ANY QUESTIONS
FROM MEMBERS? I'LL JUST ADD THAT, YOU KNOW, ALMOST KIND OF BUILDING ON SOME OF THE QUESTIONS THAT MEMBER THOMPSON HAD -- A LOT OF THESE TOPICS ARE INTERRELATED AND CONNECTED A WE DO HAVE SOME ONGOING WORK IN OUR PUBLIC SAFETY SPACE AROUND AUDITING PARTICULARLY LOOKING AT
THE PARK POLICE INVESTIGATION DATA ANALYSIS. I CAN SEE A TI-IN THERE, THERE'S A LOT OF SIMILARITIES TO THIS CASE AND THE SHOOTING OF DAVIS MACHEWERY AND I WANT US TO BE INTENTIONAL ABOUT HOW WE LOOK AT THEOLE OF
AUDIT IN TERMS OF MECHANISMS SYSTEMS AND PROCESSES AND CONTROLS AND ORALL RISK AND I KNOW THAT THIS REQUEST IS ABOUT A SPECIFIC INCIDENT BUT I DO THINK THE SPECIFIC INCIDENT REFLECTS A TRAGEDY OF A FAILURE OF PROCESSES AND CONTROLS AND I'M LOOKING FORWARD TO WORKING
WITH OUR NEW CITY AUDITOR AS WE LOOK AT THIS AND CONNECT THE BIGGER PICTURE TO THIS UNFORTUNATE TRAGEDY SO I THANK YOU FOR THAT UPDATE. >> THANK YOU. >> LAST IS THE REPORT OF THE CITY AUDITOR AND I WILL WELCOME
BACK TO GIVE THAT REPORT. >> ALL RIGHT. SO I'D LIKE TO PROVIDE AN UPDATE ON ALL THE PROJECTS THAT THAT AUDIT DIVISION HAS BEEN WORKING ON. I KNOW WE'VE BEEN HERE F A LONG TIME SO I'LL TRY TO BE AS QUICK AS POSSIBLE.
SO THESE ARE THE -- SOME OF THE COMPLETED AND IN PROGRESS AUDIT WORK THAT THAT WE'RE DOING RIGHT NOW SO WE HAVE, LIKE, TWO COMPLETED WORK AND THE 4 ONGOING IN-PROGRESS AUDIT PROJECTS, SO
THE FIRST ONE IS THE CITY -- NCR FUNDING TO THE NEIGHBORHOOD ORGANIZATION AUDIT SO THAT AUDIT HAS BEEN COMPLETED AND WE PRESENTED ABOUT THE AUDIT EARLIER. SO THE NEXT ONE IS 2025 ENTERPRISE RISK ASSESSMENT AND RISK-BASED AUDIT PLA SO THAT
WORK HAS BEEN COMPLETED AS WELL. SO THE NEXT ONE IS THE FACILITIES MANAGEMENT -- FACILITI MANAGEMENT AUDIT. I KNOW LIKE THIS HAS BEEN HERE FOR A WHILE BUT WITH THE CHANGEN LEADERSHIP AND MAIN KEY CONTACTS AND THOUGHT CHANGE IN THE LEAD
AUDITOR AND THE SUPPORT AUDITOR AS WELL, SO HOPEFULLY, THIS IT ONE WILL BE COMPLETED BY JUNE AUDIT COMMITTEE AS WE'RE HOPING. SO THE NEXT ONE IS THE
NEIGHBORHOOD SAFETY CONTRACT MANAGEMENT AUDIT. SO RIGHT NOW WE ARE IN THE FIELD WORK. WE HAVE ASKED MANAGEMENT T PROVIDE THE LIST OF ALL THE CONTRACTS AND ONCEHOSE ARE PROVIDED, WE'LL SELECTED SOME OF THE INVOICES FOR THE DETAILED REVIEW
AND SO THAT'S WHAT WITH A WE'RE DOING RIGHT NOW SO IT'S IN FIELD WORK PHASE. SO THIS ONE IS THE ANCILLARY POLICE PROGRAM AUDIT SO THE OBJECTIVE IS TO REVIEW THE PROCESS AND CONTROLS AROUND
ANCILLARY PROGRAMS TO ENSURE ADEQTE CONTROLS ARE IN PLACE IN THE PROGRAM AND THE PROGRAM IS OPERATING AS EFFEIVELY AND AS INTENDED. SO FOR THIS ONE WE ARE IN THE PLANNING PHASE BUT THIS COULD BE ON HOLD BECAUSE WE NEED TO UNDERSTAND A LITTLE BIT MORE BECAUSTHE WAY WE -- THE REASON
SOME OF THE WAY WE PUT THIS ON AUDIT, WE NEED TO KNOW A LITTLE BIT BETTER OF WTHER THAT'S THE UNIT VERSUS THE PROGRAMS SO THERE MIGHT BE SOME CONFION REGARDING HOW TO PROCEED WITH THIS SCOPE WISE SO IF -- IT'S
TAKING A LOT OF TIME. LIKE YOU SAID, COMMITTEE MEMBER WILLIAMS, WE MIGHT BE STARTING THE BWC IN THE AUTOMATED LICENSE PLATE AUDIT AND PUT THIS ON HOLD BUT THIS MIGHT CHANGE BY THE TIME WE
MEET IN APRIL. SO THE NEXT ONE IS THE THIRD-PARTY SOFTWARE SYSTEMS. USE AND CONTROL CONSULTATION, SO THE OBJECTIVE IS TO REVIEW THE PROCESSES AND CONTROLS WITH THE DEPARTMENT'S USE OF SOFTWARE AND
APPLICATNS AND THIS ONE WE ARE IN A PLANNING PHASE WE'RE CONDUCTING THE PROCESS WALK-THROUGH TO UNDERSTAND THE PROCESS RIGHT NOW. SO ONCE IT'S COMPLETED, WE'LL ISSUE THE SCOPE MEMO AND WE'LL BE IN THE FIELD WORK BUT AT THIS POINT WE'RE IN THE PLANNING PSE WITH THIS AUDIT.
ANY QUESTIONS BEFORE I MOVE? >> I'M NOT SEEING ANY. >> SO THE NEXT ONE RELATED INVESTIGATION WE HAVE LIKE TWO OPENED INVESTIGATIONS RIGHT NOW IN PROGRESS.
AND REGARDLESS OF THE PRIOR AUDIT ISSUES, WE HAVE OPENED ISSUES -- LIKE 32 OPENED ISSUES AND IN ADDITION TO THAT, WE HAVE LIKE A SEVEN IS AUDIT ISSUES THAT ARE OVERDUE, AND ALSO THERE
ARE 14 AUDIT ISSUES THAT ARE VALIDATION IN PROGRESS BASICALLY WHICH MEANS WE HAVE ALRDY RECEIVED SOME OR ALL OF THOSE SUPPORTING DOCUMENTS AND WE'RE LOOKING AT SOME OF THOSE DOCUMENTS WHETHER THEY ARE COMPTELY -- THEY HAVE -- MANAGEMENT HAS COMPLETED SOME OF
THOSE MANAGEMENT ACTION PLANS OR NOT. SO THAT REPRESENTS THE NEW FOUR NEW ISSUES THAT WE HAD AS PART OF THE NCR CITY FUNDING, TWO NEIGHRHOOD ORGANIZATIONS AND WE ALSO CLOSED FOUR AUDIT
ISSUES SINCE THE LAST AUDIT COMMITTEE MEETING AND THREE OF THEM WERE RELATED TO THE 2022 HIRING AND PROMOTION PROCESS AUDIT AND ONE RELATED TO THE
REVENUE AND COLLECTION AUDIT PHASE 1. AND SO THESE ARE ALL THE LISTS OF AUDIT REPORT WHICH HAS AT LEAST ONE OUTSTANDING
ISSUE. ANY ESTIONS? >> MEMBER HOSBEIN? >> THANK YOU, CHAIR PAYNE. MORE COMMENTS THEN QUESTIONS AND I KNOW WE'RE OVER BUT I' TRY TO MAKE THIS BRIEF. I WOULD LOVE MAYBE AT THE
APRIL MEETING OR BEFORE THEN AS THE NEW CITY AUDITOR, MR. TIMERMAN, IF YOU WANT TO LET US KNOW HOW WE CAN SUPPORT AND HELP ONBOARDING OUR RELATIONSHIP AND HOW THAT INSTITUTION KNOWLEDGE MAY BE NEEDED TO HELP WITH THE TRANSFER, I'M REALLY EXCITED TO KIND OF MOVE FORWARD WITHTHAT. I JUST WANTED TO
MAKE SURE WE'RE STAYING CONNECTED AS THE TEAMAS BEEN DOING SUCH GREAT WORK AND I JUST WANT TO CONTINUE DOING THAT BUT I ALSO WANT TO MAKE SURE WE'RE ASSISTING IN KIND OF YOUR NEW DIRECTION, IF THERE IS ONE. THE OTHER ITEM I WOULD JUST LIKE MAYBE REQUEST TO THIS
AUDITOR UPDATE IS MAYBE SOME EDUCATION AROUND HOW WE CAN HELP SUPPORT AND TRACK ITEMS AGAINST IT. I FEEL LIKE THIS IS ONE PIECE THAT I STRUGGLE WITH EACH MEETING. THE REPORTS AND THE
ACTUAL DIGGINGEEP IN THE AUDITS MAKES A LOT OF SENSE BUT, I THINK, IN TERMS OF THE PIECES IN THE AUDITOR UPDATE I WOULD JUST LOVE MAYBE GETTING SOME INFORMATION ON TRACKING AND HOW WE CAN SUPPORT WHEN THERE ARE OUTSTANDING ITEMS AND I THINK ESPECIALLY IN A CLIMATE WHERE A
LOT OF THINGS THAT WE SEE IN THE AGENDA ITSELF ARE VERY NEWSWORTHY. THERE'S A LOT OF ATTENTION. I WANT TO MAKE SURE WE'RE GIVING THE CREDIBILITY FOLLOW-UP AND THE CORRECT KIND OF INSIGHT INTO THOSE AS WE KIND OF HAND OFF AFTER THE MEETING BEFORE THE NEXT MEETING SO
JUST -- WITHIN THE OPEN MEETINGS REQUIREMENT, OF COURSE, BUT I JUST WANT TO MAYBE REQUEST A LITTLE BIT OF EDUCATION. >> SURE. >> AND THEN LAST JUST COMMENT AND MAYBE CHAIRMAN PAYNE MAYBE THIS IS FOR YOU AND CITY
COUNCIL. I JUST WANT TO KEEP RELEVA THE AGENDA ITEM IN DECEMBER, 2024, WHERE THE POLICY AND RESEARCH AND OVERSIGHT AND EVALUATION COMMITTEES WERE MOVED OUT OF THE AUDIT DEPARTMENT. THAT'S ONE THING THAT'S BEEN
KIND OF ON MY MIND AS WE MOVED INTO THIS YEAR AND ARE YOU STILL BEING SUPPORTED. DO YOU HAVE THE STAFF, DO YOU HAVE THE PIECES AND I THINK FOR CITY COUNCIL AND THE OFFICE OF THE CITY CLERK, WHAT OTHER STEPS MAYBE WE CAN HELP CONTINUE AS
TRANSITION IS BEING MADE? >> I CAN SPEAK TO MR. TIMERMAN. I'D LOVE TO SET UP TE PROBABLY TOMORROW I THINK YOUR DAY IS PRETTY BUSY AS WELL AS MINE TODAY. AND I WANT TO SPEAK SPECIFICALLY FOR THAT QUESTION
AND YOUR VISION FOR THE AUDIT FUNCTION GOING FORWARD? >> ABSOLUTELY, CHAIR PAYNE AND MEMBERS. YOU KNOW, GREAT COMMENTS. I IN THEEXT 3 WEEKS HAVE SOME SUPPORT FROM THE CITY CLERK'S OFFICE TO SET UP MEETINGS WITH EACH OF YOU INDIVIDUALLY, CITY
COUNCIL MEMBERS. OTHER LEADERS ACROSS THE ORGANIZATION. AND SO I RELY DO WANT TO HEAR FROM YOU INDIVIDUALLY ON SOME OF THESE THINGS. I AGREE -- LOOKING AT SOME OF THE RECAP HERE, IT WOULD BE NICE TO SHARE SOME MORE INFORMATION ABOUT HOW WE GET THE
STATISCS AND, FRANKLY, SEEING SOME OF THESE ITEMS THAT ARE FROM 2019, 2020 -- WHAT'S HAPPENING ON THE EXECUTIVE SIDE IN THE SNORES AND WHAT IS THE DELAY? SO I'D LOVE TO SHARE THAT AND CHAIR PAYNE, I'M LOOKING FORWARD TO MEETING WITH
YOU AND DISCUSSING TH STRUCTURE A LITTLE BIT MORE TOMORROW. >> THANK YOU FOR THAT, I APPRECIATE IT. >> THANK YOU. >> AND WE ALWAYS WANT TO BE ABLE TO USE OUR COMMITTEE POWER, TOO, TO HELP WITH -- AND I THINK IF WE DON'T OF THAT KNOWLEDGE, TOO, AS YOU SAID, HEY WHERE WHY THE
DELAY FROM 2018. OH, HEY, WE SAW THIS 2 YEARS' AGO WHAT HAPPENED? WE CAN KIND OF HELP WITH OUR RECOMMENDATIONS ON THAT TOO. LOOKING FORWARD TO MEETING WITH YOU AS WELL. >> THANK YOU.
>> SEEING NO ONE ELSE, I'LL ASK THE CLERK TO FILE THAT REPORT AND SEEING NO FURTHER BUSINESS BEFORE US AND WITHOUT OBJECTION, I WI DECLARE THIS MEETING ADJOURNED. THANK YOU.