>> WELCOME TO THE REGULAR MEETING OF THE AUDIT COMMITTEE FOR JUNE 2nd, 2025. I AM ELLIOTT PAYNE, AND I'M THE CHAIR OF THIS COMMITTEE. I WANT TO OFFER A FRIENDLY REMINDER TO ALL MEMBERS, STAFF, AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO ENABLE GREATER PUBLIC PARTICIPATION. THESE BROADCASTS INCLUDE REALTIME
CAPTIONING AS 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 CAPTIONERS CAN FULLY CAPTURE AND TRANSSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE 1350ED AND CLARITY OF THEIR COMMENTS.
AT THIS TIME, I WILL ASK THE CLERK TO CALL THE ROLL SO THAT WE CAN VERIFY THE PRESENCE OF A QUORUM. >> COMMITTEE MEMBER CHUGHTAI. >> PRESENT. >> HOSBEIN IS ABSENT. OMAR IS ABSENT. THOMPSON. >> HERE. >> WILLIAMS. IS ABSENT. VICE
CHAIR SINGLETON. >> HERE. >> CHAIR PAYNE. >> PRESENT. >> THERE ARE FOUR 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? >> SECOND.
>> ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THAT CARRIES. AND THE AGENDA IS ADOPTED. NEXT WE HAVE THE ACCEPTANCE OF MINUTES FROM OUR FEBRUARY 24th MEETING. MAY I HAVE THAT MOTION? >> I'LL MOVE THE MINUTES OF FEBRUARY 24th, 2025.
>> IS THERE A SECOND? >> SECOND. >> ALL THOSE IN FAVOR SAY AYE. THOSE OPPOSED SAY NAY. THAT CARRIES. AND THE FEBRUARY 24th MINUTES ARE ACCEPTED. WE HAVE FIVE ITEMS IN NEW BUSINESS TODAY. WE'LL BEGIN WITH ITEM 3, WHICH IS AN UPDATE
REPORT FROM THE POLICE DEPARTMENT ON ACTIONS RELATED TO RECOMMENDATIONS FROM THE 2023 PROPERTY AND EVIDENCE AUDIT AND 2023 SEXUAL ASSAULT EXAMINATION KIT SPECIAL PROJECT FOLLOW-UP AUDIT. I'LL NOTE FOR MY COLLEAGUES AND FOR MEMBERS OF THE PUBLIC THAT WE WILL BEGIN
THIS DISCUSSION IN CLOSED SESSION BUT THERE WILL BE A PORTION OF THE PRESENTATION THAT IS GIVEN IN THE OPEN SESSION. SO BEFORE WE GO TO THAT OPEN SESSION, I WILL MOVE TO CLOSE THE MEETING AND I'LL RECOGNIZE THE CITY ATTORNEY TO PROVIDE THE LEGAL BASIS FOR THE REQUESTED
CLOSED SESSION. MR. ATTORNEY. >> THANK YOU, CHAIR PAYNE. UNDER SECTION 13D.05 OF THE OPEN MEETING LAW, MEETINGS MAY BE CLOSED TO RECEIVE SECURITY BRIEFINGS AND REPORTS, TO DISCUSS ISSUES RELATED TO SECURITY SYSTEMS, TO DISCUSS EMERGENCY RESPONSE PROCEDURES,
AND TO DISCUSS SECURITY DEFICIENCIES IN OR RECOMMENDATIONS REGARDING PUBLIC SERVICES INFRASTRUCTURE AND FACILITIES. IF THE DISCLOSURE OF THAT INFORMATION WOULD POSE A DANGER TO PUBLIC SAFETY OR COMPROMISE SECURITY PROCEDURES OR RESPONSES. STAFF HAS DETERMINED THAT THE INFORMATION
CONTAINED IN THE CLOSED SESSION ITEMS WOULD POTENTIALLY COMPROMISE THAT. SECURITY PROCEEDINGS. THEREFORE, IT WOULD BE APPROPRIATE TO CLOSE THE MEETING. >> THANK YOU, MR. ATTORNEY. WITH THAT, I MOVE THAT OUR PUBLIC MEETING BE CLOSED AS AUTHORIZED UNDER THE PROVISIONS OF THE OPEN MEETING LAW AS
STATED BY THE CITY ATTORNEY. MAY I HAVE A SECOND TO THAT MOTION. >> SECOND. >> ALL THOSE IN FAVOR, SAY AYE. THOSE OPPOSED SAY NAY. THAT CARRIES, AND WE WILL NOW CLOSE THE PUBLIC PORTION OF OUR MEETING AND CONVENE IN CLOSED SESSION. FOR THE VIEWING PUBLIC, I WILL NOTE THAT THE
BROADCAST OF THIS MEETING WILL CONTINUE AND THE AUDIT COMMITTEE WILL RECONVENE IN PUBLIC AFTER WE'VE CONCLUDED THE CLOSED
SESSION. THANK YOU.
>> WE ARE READY. THE TIME IS NOW 10:27, AND THE AUDIT COMMITTEE HAS RECONVENED IN OPEN SESSION FOLLOWING OUR CLOSED SESSION. I'LL ASK THE CLERK TO CALL THE ROLL TO VERIFY A
QUORUM. >> COMMITTEE MEMBER CHUGHTAI. >> PRESENT. >> HAWSE BINE. >> PRESENT. >> THOMPSON. >> PRESENT. >> VICE CHAIR SINGLETON. >> PRESENT. >> CHAIR PAYNE. >> PRESENT. >> THERE ARE FIVE MEMBERS PRESENT. >> LET THE RECORD REFLECT THAT WE HAVE A QUORUM. AND AS I HAD MENTIONED PRIOR TO OUR CLOSED SESSION, THERE WILL BE A PUBLIC
PRESENTATION ON THIS TOPIC, AND I'LL INVITE KERSTIN HAMMARBERG, THE MANAGER OF THE PROPERTY AND EVIDENCE UNIT TO BEGIN THAT PRESENTATION. WELCOME. >> THANK YOU VERY MUCH, COUNCILMEMBERS, AND AUDIT COMMITTEE MI MEMBERS. I APPRECIATE BEING INVITED. I'M
GOING TO TALK ABOUT THE -- SORRY, I WANT TO MAKE SURE THAT I'M HEARD. I WANT TO TALK ABOUT THE PROPERTY AND EVIDENCE UNIT AND THE SAKI AUDIT UPDATES FOR EVERYONE'S BENEFIT. THIS IS OUR BASIC AGENDA, INTRODUCTION, AUDIT ISSUES, ISSUE UPDATES, AND
THEN A TIME FOR QUESTIONS. OUR HIGH RISK ISSUES THAT HAVE BEEN POINTED OUT IN THE AUDIT THAT WAS DONE IN 2023, A FEW OF THEM HAVE BEEN RESOLVED, SO I AM JUST GOING TO UPDATE YOU ON THOSE OPEN ISSUES OR THE ONES THAT ARE NEARING CLOSURE. ISSUE NUMBER
3, CASH HANDLING. THE FINDING WAS THAT THERE WERE INADEQUATE SECURITY MEASURES WHEN CASH WAS TRANSPORTED FOR DEPA DE-- POSIT TO THE BANK. THE PROPERTY UNIT STAFF WERE HAND DELIVERING CASH DEPOSITS TO THE COLLECTION SITE WITHOUT SECURITY. OUR UPDATE IS THAT THIS ISSUE HAS
BEEN RESOLVED, AND WE ARE USING A SECURITY COURIER WHO ROUTINELY STOPS BY THE PROPERTY AND EVIDENCE WAREHOUSE TO PICK UP ANY CASH THAT IS THERE FOR DEPOSIT TO TRANSFER THAT INTO THE CITY COLLECTION SITE. ISSUE
NUMBER 4, WAREHOUSE MAINTENANCE. THE AUDIT DIVISION NOTED THE FACILITY NEEDED SEVERAL SIGNIFICANT MAINTENANCE FIXES, SPECIFIC ISSUES IDENTIFIED INCLUDED A NEW ROOF, PARKING LOT
REPAIRS, PALLET RACKING SIGNALS, CRACKS IN THE WAREHOUSE FLOOR, AND THE GARAGE DOOR REPAIRS. THE PARKING LOTS WERE REPLACED IN THE FALL OF 2023. THE PALLET RACKING WAS INSTALLED IN DECEMBER OF 2023. TWO GARAGE DOORS WERE REPLACED IN THE
SPRING OF 2024. LARGER CRACKS IN THE WAREHOUSE FLOOR HAVE BEEN SEALED. HIGH DENSITY SHELVING WAS INSTALLED IN THE WINTER OF 2024. A NEW ROOF. THISTIME IS CALLED OUT IN THE SETTLEMENT
AGREEMENT. PROPERTY SERVICEINIZEDICATED THAT IT WILL -- SERVICES INDICATED THAT IT WILL POSSIBLY BE REPLACED IN 2026. ISSUE NUMBER 5, ITEMS CHECKED OUT. THE FINDING WAS THAT THERE ARE NOT CONSISTENT REGULAR REVIEWS OF ITEMS CHECKED
OUT OF THE PROPERTY AND EVIDENCE UNIT. THE AUDIT DIVISION NOTED THAT THERE ARE THOUSANDS OF ITEMS CHECKED OUT OF THE PROPERTY AND EVIDENCE UNIT, THAT THERE IS NO CONSISTENT REVIEW OF ITEMS CHECKED OUT, AND THERE IS NO PROCESS IN PLACE TO ENSURE OTHER AGENCIES RETURN THE ITEMS.
EXPECTED RETURN DATE FIELD IS NOW BEING COMPLETED IN OUR, IT'S THE POLICE INFORMATION MANAGEMENT SYSTEM, PIMS IS THE ACRONYM BY THE EVIDENCE TECHNICIANS UPON CHECKING ITEMS OUT OF CUSTODY. A REGULAR REPORT IS RUN, QUERYING ALL
ITEMS CHECKED OUT. ITEMS ARE REVIEWED AND NOTIFICATIONS ARE CEPT IF THE ITEM IS PAST THE EXPIRATION DATE. WE'RE USING TECHNOLOGY TO HELP US. ISSUE NUMBER 6 IS THE EVIDENCE
CONTINUITY. THE FINDING IS THE EVIDENCE CONTINUITY FIELD IS NOT ALWAYS LOGGED BY OFFICERS IN THE PIMS SYSTEM. THE AUDIT DIVISION NOTED THAT OFFICERS ARE NOT ALWAYS ENTERING THE FIRST FIELD IN THE EVIDENCE CONTINUITY AS EXPECTED. THEY ALSO NOTED THAT FOR ITEMS THAT HAVE INTERNAL
STORAGE SPACE SUCH AS BACKPACKS AND JACKETS, OFFICERS ARE NOT ALWAYS COMPLETING THE EVIDENCE CONTINUITY FOR INDIVIDUAL ITEMS LOCATED INSIDE THESE BACKPACKS AND JACKETS, OR OTHER CONTAINERS: THE UPDATE IS THAT
SIGNS HAVE BEEN PLACED NEXT TO ALL PIMS COMPUTERS IN PRECINCTS AND PROPERTY AND EVIDENCE UNIT REMINDI OFFICERS TO ENTER THEIR EVIDENCE CONTINUITY. SIGNS WERE DEVELOPED FOR EACH FACILITY AND INDICATED THE EXACT LOCATION OFFICERS SHOULD UTILIZE TO START THE CONTINUITY. A
SHORT TRAINING VIDEO WILL BE PRODUCED TO HELP RETRAIN OFFICERS AND INVESTIGATORS ON THIS TOPIC. THE MODERATE R RISK ISSUES. ISSUE NUMBER 7,
PIMS DATA ENTRY. THE -- THERE IS NO STANDARD OF EV ENTRY OF EVIDENCE LOCATIONS WHEN OFFICERS ENTER ITEMS INTO PIMS. THEY ALSO NOTED THAT THERE WAS NO STANDARDIZATION FOR EVIDENCE DESCRIPTIONS. THE UPDATE IS THAT THE PROPERTY WAREHOUSE PRECINCT LOCKERS, AND THE PUBLIC
SERVICE BUILDING CURRENTLY HAVE SIGNAGE INDICATING THE EVIDENCE CONTINUITY LOCATION INFORMATION. EXAMPLE, PRECINCT 5 LOCKERS OR PROPERTY AND EVIDENCE LOCKER NUMBER SPECIFICALLY OR PSB
LOCKERS. WHEN TRAINING NEW SWORN STAFF, THE CADETS, THE RECRUITS, THE LATERAL OFFICERS, PROPERTY AND EVIDENCE UNIT STAFF TRAIN ON THE IMPORTANCE OF UTILIUTILIZIZING A SPECIFIC LOCATION FOR EVIDENCE
CCONTINUITY IN THE PIMS. A VIDEO IS GOING TO BE PRODUCED TO HELP RETRAIN OFFICERS AND INVESTIGATORS ON THIS TOPIC. ISSUE NUMBER 8, SAFEKEEPING ITEM DISPOSITION. THE FINDING WAS THAT PIMS RECORDS FOR ITEMS STORED IN SAFEKEEPING STORAGE
ARE NOT ALWAYS UPDATED WHEN ITEMS ARE DISPOSED OF OUR MOVED. THE AUDIT DIVISION NOTED THAT SAFEKEEPING ITEMS ARE NOT ALWAYS UPDATED CORRECTLY WHEN THEY'RE DISPOSED OF O OR MOVED FN. THIS IS LIKELY DUE TO STAFF
PROCESSING LARGE QUANTITIES OF ITEMS QUICKLY. THIS TOPIC IS LISTED AS RESOLVED. IT HAS BEEN ADDRESSED WITH PROPERTY AND EVIDENCE UNIT STAFF, AND AN EMPHASIS HAS BEEN PLACED ON THE ATTENTION TO DETAIL AND QUALITY ASSURANCE. PROPERTY AND EVIDENCE MANAGEMENT HAVE INSTITUTED A MONTHLY REVIEW OF
SAFEKEEPING ITEMS. ISSUE NUMBER 9, CONFLICTS OF INTEREST. THE FINDING IS THAT THERE IS NOT SPECIFIC POLICY AND PROCEDURE RELATED TO CONFLICTS OF INTEREST, AND THE HANDLING OF PROPERTY AND EVIDENCE. THE AUDIT DIVISION NOTED THAT WHILE
CITY AND MPD HAVE POLICIES SURROUNDING CONFLICT OF INTEREST, THE PROPERTY AND EVIDENCE UNIT DOES NOT HAVE SPECIFIC LANGUAGE SURROUNDING CONFLICT OF INTEREST IN HANDLING PROPERTY OR EVIDENCE. THE UPDATE HERE IS THAT THE POLICE DEPARTMENT WILL BE ADDING A
QUALITY ADMINISTRATOR POSITION TO THE PROPERTY AND EVIDENCE UNIT. THIS POSITION WILL BE TASKED WITH WRITING THE QUALITY SYSTEM MANUAL WHICH WILL INCLUDE TOPICS SUCH AS IMPARTIALITY, CONFIDENTIALITY, AND CONFLICT OF INTEREST. ETHICS TRAINING WAS
IMPLEMENTED FOR THE UNIT IN 2024, AND WILL OCCUR ANNUALLY MOVING FORWARD, AND THIS IS ON TOP OF THE CITY'S ETHICS TRAINING THAT'S PROVIDED TO ALL CITY EMPLOYEES. ISSUE NUMBER
10, PARDON ME, CONTINUITY PLAN. THE FINDING WAS THAT THERE ARE NOT DETAILED AND DOCUMENTED PLANS SUCH AS DISASTER RECOVERY AND CONTINUITY OF OPERATIONS FOR THE PROPERTY AND EVIDENCE UNIT, AND ITS PROCESSES THAT CAN BE UTILIZED IN THE EVENT OF
DISRUPTION. THE AUDIT DIVISION NOTED THAT ALTHOUGH MPD HAS ESTABLISHED CONTTUITY OF OPERATIONS PLANS FOR THE DEPARTMENT, THESE PLANS DO NOT SPECIFICALLY ADDRESS THE PROPERTY AND EVIDENCE UNIT. THE UPDATE ON THIS IS THAT THIS ISSUE IS RESOLVED. A PROPERTY AND EVIDENCE UNIT DISASTER PLAN HAS BEEN CREATED, SHARED WITH
ALL PROPERTY AND EVIDENCE UNIT STAFF, AND PROVIDED TO MPD EXECUTIVE STAFF. ISSUE NUMBER 11, DESTRUCTION PROCESS. THERE ARE NOT DOCUMENTED PROCEDURES
FOR OFF SITE DESTRUCTION PROCESSES. THE AUDIT DIVISION NOTED THAT THERE WERE NO DOCUMENTED PROCEDURES FOR THE OFFSITE DESTRUCTION OF ITEMS SUCH AS DRUGS AND FIREARMS. PROCEDURES FOR THE DESTRUCTION OF FIREARMS AND DRUGS HAVE BEEN IN PLACE FOR DECADES. HOWEVER, THEY WERE NOT CLEARLY
DOCUMENTED. THE UPDATE IS THAT DRUG DESTROY AND GUN REVIEW PROCEDURES HAVE BEEN WRITTEN. THEY ARE IN THE REVIEW PROCESS AND WILL BE ADDED TO THE STANDARD OPERATING PROCEDURES UPON COMPLETION OF THE REVIEW. THANK YOU VERY MUCH, AND ON BEHALF OF MY SUPERVISOR DIRECTOR
SHANNON JOHNSON, MY SHIFT SUPERVISOR SAM DAILEY AND WILLIAM VINCENT, AND ALSO THANKS TO THE AUDIT COMMITTEE. WE APPRECIATE THE TIME THAT WE CAN REPORT TODAY. AND I'M OPEN TO QUESTIONS IF YOU HAVE THEM. >> THANK YOU FOR THAT PRESENTATION. IS THERE ANY QUESTIONS FOR THE PUBLIC
PORTION? MEMBER HOSBEIN. >> I'M NOT ON. THANK YOU, CHAIR PAYNE. I HAD A QUICK QUESTION, AND THANK YOU FOR ALL THIS INFORMATION, AND I WILL PREFACE MY QUESTION BY I ALWAYS ASK ABOUT BANDWIDTH OF TIGHT CITY
DEPARTMENTS, SO I UNDERSTAND THAT THAT'S PART OF THIS QUESTION. UNDER ISSUE 9, YOU MENTIONED BRINGING IN A QUALITY ADMINISTRATOR POSITION. >> YES, MA'AM. >> IS THERE ANY CAPACITY THERE TO DO ANY INTERNAL DEPARTMENTAL
SPOT CHECKING? A LOT OF THESE RESOLUTIONS IN KIND OF SOLUTIONS ARE VERY PROACTIVE, WHICH IS AMAZING. IT DOESN'T SEEM LIKE THERE'S A LOT OF COACHING OR SPOT CHECKING OR SAMPLING ON THE BACK END. IS THERE CAPACITY
WITHIN THAT NEW POSITION TO DO A QUICK CHECK ON THE OTHER 11 ISSUES? >> THANK YOU VERY MUCH FOR YOUR QUESTION. THE IDEA BEHIND THE QUALITY ASSURANCE POSITION THAT WE ARE WAITING TO HIRE FOR IS
THAT THAT PERSON WILL BE IN CHARGE OF DOING THOSE SPOT CHECKING PIECES AS WELL AS MAKING SURE THAT QUALITY IS BEING MAINTAINED. THEY WILL ALSO BE HANDLING UPDATES AND REVIEWS OF OUR STANDARD OPERATING PROCEDURES, OUR
PACKAGING MANUAL, AND ANY OTHER POLICY UPDATES THAT NEED TO HAPPEN WITHIN THE DEPARTMENT FOR PROPERTY AND EVIDENCE SPECIFICALLY. SO IT IS VERY SIMILAR TO THE POSITION THAT IS ALREADY EXISTING IN THE FORENSICS DIVISION CRIME LAB. THEY HAVE A QUALITY ASSURANCE
PERSON, AND THAT PERSON IS HANDLING THOSE TYPES OF THINGS, AND WE ARE WITH FALLING UNDER THE FORENSIC SERVICES DIVISION, THE DIRECTOR FELT IT MOST PRUDENT TO HAVE THIS POSITION THAT WOULD OVERSEE PROPERTY AND EVIDENCE IN THAT SAME WAY. SO YES, IT WOULD BE A TRUE QUALITY
ASSURANCE AND SPOT AUDIT CHECKING POSITION. >> PERFECT. SO WHAT I'M HEARING IS THAT EVEN THOUGH IT'S LISTED UNDER ISSUE NUMBER 9, IT WILL BE MORE ALL ENCOMPASSING TO THE GENERAL QUALITY CHECKS OF ALL THESE PROCESSES? >> YES, MA'AM. >> PERFECT. THANK YOU. >> MEMBER THOMPSON? >> THANK YOU SO MUCH, CHAIR
PAYNE. I JUST HAVE TWO I THINK QUICK QUESTIONS. ONE, IT CAME TO MY MIND AS YOU WERE TALKING ABOUT PROCURING EVIDENCE AND SECURELY HANDLING IT, WHERE DOES THE EVIDENCE CURRENTLY GO FOR THE THIRD, FOR THE THIRD PRECINCT?
DOES THAT, WHERE IS THE PHYSICAL LOCATION FOR THAT SINCE THEY DON'T HAVE A PERMANENT, IS THAT THE ONE DOWNTOWN? >> THANK YOU VERY MUCH FOR THE QUESTION. LET ME JUST CLARIFY FOR EVERYONE'S KNOWLEDGE. THE IT SEA HADS -- THE CITY HAS FIVE PRECINCTS, AND EACH OF THOSE
PRECINCTS HAVE TEMPORARY EVIDENCE LOCKERS WHERE THEY CAN PUT THINGS. WE MAKE REGULAR RUNS TO THOSE AREAS TO COLLECT THAT EVIDENCE. ALL OF THAT EVIDENCE IS STORED IN A CENTRALIZED FACILITY, WHICH IS OUR PROPERTY AND EVIDENCE WAREHOUSE. SO THIRD PRECINCTS
EVIDENCE COMES TO OUR PROPERTY WAREHOUSE. >> SO, SORRY, NOW YOU HAVE A NEW QUESTION FOR FROM ME. SO HOW MANY OF THESE DO WE HAVE AROUND THE CITY? >> WE HAVE ONE PROPERTY AND EVIDENCE WAREHOUSE. >> BUT THE DROP -- I'M USING THE WRONG TERM, BUT DROP BOX OR SOMETHING? >> EACH PRECINCT HAS SECURE EVIDENCE LOCKERS THAT ARE
TEMPORARY, AND SO WE HAVE FIVE OF THOSE AROUND THE CITY. >> ARE THEY LOCATED AT THE PRECINCTS. >> YES, MA'AM. >> JUST FOR CLARIFICATION, THE THIRDS IS CURRENTLY HOUSED DOWNTOWN? >> THAT IS CORRECT. >> OKAY. I JUST WANTED TO UNDERSTAND LIKE LITERALLY THE LAY OF THE LAND. THANK YOU. MY
SECOND QUESTION IS, I DON'T WANT TO BE FISHING, BUT WHAT, IT SAYS THAT FINDINGS, WE DON'T HAVE POLICIES, PROCEDURES, WITH CONFLICT OF INTEREST. WHAT, WHAT KIND OF A CONFLICT OF INTEREST WOULD ARISE WITH HANDLING PROPERTY OR YOU KNOW HANDLING EVIDENCE AND PROPERTY?
>> THANK YOU FOR THE QUESTION. THERE ARE POTENTIALLY CONFLICTS OF INTEREST BECAUSE NUMBER OF THE STAFF HAVE BEEN CITY RESIDENTS OR ARE CURRENTLY CITY RESIDENTS. MYSELF INCLUDED. AND CRIME THAT OCCURS IN THE CITY OF MINNEAPOLIS HAS THE
ABILITY TO HAVE A FAR REACHING EFFECT. AND THERE ARE SOME -- THERE ARE TIMES WHEN WE RECOGNIZE NAMES OF PEOPLE THAT WE MIGHT KNOW OR MIGHT HAVE CONTACT WITH. SO THE ABILITY TO
SEPARATE OUR PERSONAL FROM OUR PROFESSIONAL LIFE IS A PART OF THE CONFLICT OF INTEREST. AND IF A PERSON ON THE STAFF RECOGNIZES THE NAME OF A CRIME VICTIM OR SOMEONE WHO'S BEEN SUSPECTED IN COMMITTING A CRIME, IT'S UP TO THEM TO REPORT NAT TO
THEIR SUPERVISOR SO THAT WE CAN MAKE SURE THAT THEY ARE NOT HAVING UNDUE ACCESS TO THE EVIDENCE OR PROPERTY THAT BROUGHT IN RELATED TO THOSE CRIMES. SO THAT WOULD BE AN EXAMPLE OF THE CONFLICT OF INTEREST IN PROPERTY AND
EVIDENCE THAT WE HAVE HAD THAT. >> THANK YOU FOR THAT. THAT HELPS ME UNDERSTAND. APPRECIATE IT. >> THANK YOU FOR THE QUESTION. >> ANY OTHER QUESTIONS? VICE CHAIR SINGLETON. >> THANK YOU FOR ALL THE WORK YOU'VE DONE ON THIS. SO I HAD A QUESTION ABOUT EVIDENCE
CONTINUITY, AND THE NEW SIGNAGE AND UPCOMING TRAINING VIDEO. I KNOW THAT YOU HAVEN'T HIRED THE NEW QA POSITION YET, BUT DO YOU HAVE A SENSE OF WHETHER THAT NEW SIGNAGE IS HELPING WITH PROPERLY FILLING OUT THE FIELDS?
>>> I WOULD LIKE TO OPTIMISTICALLY SAY YES, AND AT THE SAME TIME, WE HAVE MORE THAN 550 OFFICERS AND TO HAVE EACH ONE OF THEM BE PERFECT IN THAT IS NOT POSSIBLE, SO IT IS
BETTER. HOWEVER, WE ARE STILL TRYING TO LOOK AT DIFFERENT WAYS THAT WE CAN MAKE IMPROVEMENTS. ONE OF THE WAYS WE'VE DISCUSSED IS CREATING A BAR CODE THAT WOULD BE PLACED AT EACH OF THE COMPUTERS THAT WOULD BE SPECIFIC TO THAT LOCATION. SO THE OFFICERS WOULD BE ABLE TO UTA
HANDHELD SCANNER, SCAN THE BAR CODE, WHICH WOULD PREFILL THE INFORMATION, WHICH WOULD LEAD TO MORE ACCURACY. NOW, AGAIN, GETTING HUMANS TO FOLLOW THOSE STEPS IS ALSO DIFFICULT. AT THE SAME TIME WE'RE OPTIMISTIC THAT
WE'LL MAKE IMPROVEMENTS IN THAT AREA. >> THANK YOU, AND THAT ANTICIPATED MY NEXT QUESTION, WHICH WAS WHETHER THERE ARE MORE TECHNOLOGY FOCUSED EFFORTS THAT COULD BE, THAT COULD AUGMENT THE NEW SIGNAGE AND REMINDERS. >> I WISH THAT OUR COMPUTER
SYSTEM WERE ABLE TO BE MORE CUSTOMIZED TO OUR DEPARTMENT NEEDS, BUT BECAUSE IT IS A COMPANY THAT WORKS WITH LAW ENFORCEMENT AGENCIES ACROSS THE COUNTRY. THERE IS SOME GENERALIZATION TO THE PROCESS, AND WE ONLY HAVE SO MUCH THAT WE
CAN MAKE SPECIFIC TO OUR NEEDS. THANK YOU. >> MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE. I DID WANT TO JUST, FOR THE RECORD, FROM ISSUES 1 AND 2, JUST ASK ABOUT BUDGET
PRIORITIZATION, AND ADVOCACY OR OTHERWISE THAT'S MAYBE NEEDED THERE FROM A COMMUNITY ASPECT I GUESS IN TERMS OF ONE OR TWO OR ANY OF THESE ISSUES, AND I KNOW THAT'S SOMETHING THAT IS MAYBE NOT A TODAY ANSWER ISSUE, BUT I WOULD JUST WANT TO LIKE TO UNDERSTAND WHAT THAT PROCESS LOOKS LIKE AND IF THERE IS THESE
HIGH RISK AREAS THAT ARE GETTING THE APPROPRIATE BUDGETARY RESOURCES TO BE SOLVED. >> SO ISSUE, ISSUE 1 WAS ABOUT CLIMATE CONTROL. THERE IS A
BUDGETARY ISSUE WITH ALL OF THE THINGS THAT WE HAVE BECAUSE NOTHING UNFORTUNATELY IS DONE FOR FREE. WE DO WANT CLIMATE -- WE NEED TO HAVE CLIMATE CONTROL AS A PRIORITY, AND YES, WE NEED ADVOCATES, NOT ONLY FROM THE COUNCIL AND FROM OTHER CITY
DEPARTMENTS BUT ALSO FROM THE POLICE DEPARTMENT TO ADVOCATE FOR US TO GET THOSE THINGS TAKEN CARE OF. THIS HAS BEEN AN ISSUE THAT WE HAVE BROUGHT UP IN THE PAST. IN FACT. WE'VE BEEN IN THIS BUILDING FOR FIVE YEARS, AND THIS ISSUE HAS BEEN BROUGHT UP FOR THE PAST FIVE YEARS.
THERE IS A FINANCIAL COST TO IT. ISSUE NUMBER 2. I ALSO JUST WANT TO BE MINDFUL ABOUT WHAT I'M ALLOWED TO SAY PUBLICLY. >> I UNDERSTAND THAT.
>> AND THAT WAS WITH THE SAKI GRANT. I APOLOGIZE FOR MY FLIPPING THROUGH MY PRESENTATION HERE. >> AND WHILE YOU'RE LOOKING FOR
THAT, I'M HAPPY FOR, AND I'M HAPPY FOR OTHER MEMBERS TO COMMENT WITH THE RESPONSE FOR THE JUST GENERAL, YES, ADVOCACY IS NEEDED, AND JUST HAVING THAT RECORDED IS FINE FOR THIS I THINK OPEN SESSION FOR ME TOO, BUT ANY OTHER COMMENTS OR
QUESTIONS FOR THE COMMITTEE. >> AND AS I KNOW THAT YOU UNDERSTAND, WE, THE DEPARTMENT IS UNDER DEPARTMENT OF HUMAN RESOURCE -- WE'RE UNDER THE MDHR DECREE, AND PART OF THAT IS
THAT WE ARE HAVING TO BUDGET THE MONEY FOR DIFFERENT ACTIVITIES AND DIFFERENT THINGS THAT THE DEPARTMENT NEEDS. AGAIN, THESE ITEMS ARE A PRIORITY FOR ME BECAUSE I'M IN THIS ENVIRONMENT EVERY DAY. AND THE DEPARTMENT
ALSO NEEDS TO PRIORITIZE THESE THINGS BECAUSE, WE COULD SUFFER FROM POWER OUTAGES. WE COULD SUFFER FROM NATURAL DISASTERS THAT WOULD CAUSE US TO LOSE POWER IN THE BUILDING, AND WE WANT TO MAKE SURE THAT WE HAVE EVERYTHING IN PLACE NECESSARY TO
HANDLE THOSE THINGS AS WELL AS ONGOING CLIMATE CONTROL FOR THE WHOLE FACILITY. >> ANY OTHER QUESTIONS OR
COMMENTS? SEEING NONE. I'LL ASK THE CLERKS TO RECEIVE AND FILE THAT REPORT. THANK YOU, MS. HAMMARBERG. >> THANK YOU VERY MUCH FOR YOUR TIME. >> NEXT WE HAVE ITEM NUMBER 4, WHICH IS RECEIVING AND FILING AN ADVISORY SERVICES REPORT ON THE REVIEW OF HEALTH DEPARTMENT
CONTRACTS AND CONTRACTING PROCESSES WITH HELIX HEALTH AND HOUSING SERVICES.IAL INVITE TRAVIS KAMM COMMUNITY SAFETY AUDITOR TO GIVE THAT REPORT.
WELCOME. >> ALL RIGHT, GOOD MORNING, CHAIR PAYNE, MEMBERS OF THE AUDIT COMMITTEE. THANK YOU FOR
HAVING ME TODAY. I'LL BE PRESENTING ON A REVIEW THAT WE DID, AND BEFORE I BEGIN, I JUST WANT TO RECOGNIZE AND KIND OF THANK MANAGEMENT FOR BEING HERE. MANAGEMENT FROM THE HEALTH DEPARTMENT AND FINANCE ARE HERE, AS WELL AS QUESTIONS I THINK OR COMMENT AT THE END FROM DEPUTY
CHIEF CITY OPERATIONS OFFICER BRET JOLLY SO IF THERE IS QUESTIONS ABOUT THE ACTUAL CONTRACT OR TERMS OF THE CONTRACT AND PROCESS OF SOME OF THAT, SOMEONE MIGHT BE ABLE TO STEP IN ON THERE. I CAN ANSWER ABOUT WHAT WE SAW IN SOME OF THE WORK WE DID. SO BEFORE I BEGIN KIND OF AS YOU HAVE HAD THE
REPORT NOW FOR SOME TIME, I'M JUST KIND OF GOING TO DO KIND OF A QUICK PASS THROUGH TODAY, SO KIND OF TALK ABOUT BACK ON CONTRACT DETAILS. SO A BIT MORE ABOUT THE PURPOSE OF THE REVIEW AND APPROACH, GET INTO INVOICES AND PAYMENTS SO KIND OF THE BULK OF WHAT WE DID IN TERMS OF
LOOKING FOR AND KIND OF RECOGNIZING THINGS THAT WE OBSERVE THERE. AND WE KIND OF GET INTO AREAS FOR IMPROVEMENT OR RECOMMENDATIONS EXPRKZ THEN KIND OF A QUICK COMMENT ON FUTURE STEPS. SO THIS REVIEW FOCUSOND A PARTICULAR CONTRACT WITHIN THE HEALTH DEPARTMENT BUT A LOT OF THESE LESSONS AS WE
STATE THROUGHOUT THE REPORT AND WE KIND OF GET INTO SPECIFICS CAN BE -- KIND OF FOR IT'S NOT JUST KIND OF ONE DEPARTMENT SPECIFIC. THEN ALSO KIND OF SOMETHING THAT YOU KNOW WE HEARD THROUGHOUT THIS PROCESS AND REVIEW, AND THAT WE RECOGNIZE THAT THIS CONTRACT AND CIRCUMSTANCES WERE UNIQUE IN
THAT YOU KNOW AT THE TIME THERE WAS A SENSE OF URGENCY IN THE CITY DOING THE WORK AND THE CONTRACT AND NATURE OF WORKING SERVICES WERE, YOU KNOW, UNIQUE FOR THE HEALTH DEPARTMENT IN ASPECTS IN TERMS OF WHAT THERE WAS PROVIDED AND SOME OF THE WAY THAT THE WORK WAS CONDUCTED. SEE KIND OF, YOU KNOW, WHAT WE
DID. SO IT WASN'T AN AUDIT. IT CAN'T -- IT WAS MORE OF AN AN ADVISORY SERVICES SO WE ENGAGED IN CONTRACT REVIEW AND CONTRACTING PROCESS ASSESSMENT. SO WE JUST FOCUSED ON THIS PARTICULAR CONTRACT AND THE PROCESSES THAT KIND OF WERE ATTACHED TO IT. AND THEN, YOU KNOW, OUR UBN ANALYSIS
CONSISTED OF A REVIEW OF CITY AND DEPARTMENT'S CONTRACTING AND CR CONTRACT MANAGEMENT PROCESSES, SUPPORTING DOCUMENTATION, INVOICES AND REPORTS AND OTHER INFORMATION THAT WAS RECEIVED AND THAT THE CITY UTILIZE AS PART OF ITS CONTRACT IN TERMS OF INVOICES AND PAYMENTS. AND THEN WE ASSESSED AND COMMENTED ON RISK ASSOCIATED WITH THE EXISTING
INTERNAL CONTROLS AND OVERSIGHT MECHANISMS IN PLACE, AND HOW THEY CONTRIBUTED TO WHAT WE SAW THROUGHOUT OUR REVIEW. SO JUST A QUICK OVERCAP OF THE OBJECTIVES AGAIN TO DETERMINE THE CONTRACTING PROCESS, THIS CONTRACT WENT THROUGH, WE REVIEW THE INVOICES AND SUPPORTING DOCUMENTATION THE CITY RECEIVED, AND THEN COMMENTED INTERNAL
CONTROL OR PROCESS DEFICIENCIES AND MAKE RECOMMENDATIONS FOR MANAGEMENT. SO KIND OF WHAT, YOU KNOW, WHAT SPECIFICALLY WE'RE TALKING ABOUT TODAY. SO AT THE END OF 2023, THE HEALTH DEPARTMENT ENTERED INTO A CONTRACT WITH HELIX LLC DOING BUSINESS AS HELIX HEALTH AND SERVICES FOR THE PURPOSES OF
REVIEW ACCORDING TO HELIX THE VENDOR OR CONTRACTOR. THE CONTRACT PURPOSE WAS FOR HELIX WAS FOR HELIX TO PROVIDE TEMPORARY HOUSING, SUBSTANCE USE DISORDER TREATMENT, AND MENTAL HEALTH SERVICES FOR INDIVIDUALS EXPERIENCING HOMELESSNESS. SO AT THE END OF 2023, THE CITY DETERMINATIONED AN URGENT NEED FOR THIS CONTRACT AND SERVICE,
SO THE WORK WAS TO INCLUDE GENERAL HOUSEKEEPING CASE MANAGEMENT, MEANTTH HEALTH CACASE MANAGEMENT, SCRE SCREENING AND INTERVENTION AND REFER TREATMENT AND ON-SITE LOW INTENSITY SUBSTANCE USE TREATMENT. AT THE TIME IN THE KIND OF INITIAL PROPOSAL WAS INDICATED AND KIND OF THINGS
BOPPED UP THERE WAS A BUDGET OF $465,000 BUT BY THE TIME THE CONTRACT WAS SIGNED AT THE END OF NOVEMBER 2023, THE CONTRACT WAS FOR $999,650. SO YOU KNOW THROUGHOUT NOVEMBER AND OCTOBER AND NOVEMBER 2023, HEALTH DEPARTMENT AND THE CONTRACTOR
WORKED TO DRAFT THE CONTRACT AND BUDGET. IT WAS DETERMINED BASED ON THE NEED FOR THE WORK, IT WAS DETERMINED TO GO THROUGH A SINGLE SOURCE PROCESS, SO NOT A COMPETITIVE BIDDING PROCESS. AND THEN IT ENDED UP GOING TO CAN YOU BELIEVE FOR APPROVAL IN NOVEMBER OF -- COUNCIL FOR APPROVAL IN NOVEMBER OF 2023 AS PART OF THAT PROCESS SO HERE IS
KIND OF INFORMATION ON WHAT WAS ON THE -- RVCA, AUTHORIZING THE CONTRACT, AT THE TIME IT WAS KIND OF ADJUSTED SHORTLY BEFORE THE MEETING BEGAN TO PROVIDE, YOU KNOW, AS I SAID, THE TREATMENT SERVICES. WE SAW IN KIND OF -- WE NOTED THROUGH MORE
CONTEXT IS THAT THE HEALTH DEPARTMENT AND OTHERS WORKED QUICKLY, YOU KNOW, IN THE LAST COUPLE OF WEEKS OF NOVEMBER 2023 TO FINALIZE THE CONTRACT. THE CONTRACT WAS SIGNED BY THE PARTIES NOVEMBER 30th, 2023. THERE WAS A FIRST INVOICE THAT WAS WE'LL KIND OF REFERENCE WAS
A PAID DECEMBER 1st, 2023. THEN ALSO SOMETHING WE NOTED AS PART OF THE PROCESS WAS REQUEST FOR AFFIRMATIVE ACTION APPROVAL WAS SUBMITTED AT THE END OF NOVEMBER 2023. PER OUR DISCUSSION WITH PROCUREMENT AND CIVIL RIGHTS, IT SORT OF OCCURRED PRIOR TO THE CONTRACT
GOING THROUGH IN TERMS OF PROCESS FOR APPROVAL. SO THE CONTRACT WAS EFFECTIVE FROM DECEMBER 1st, 2023, THROUGH NOVEMBER 30th, 2024. AGAIN, JUST KIND OF THAT CONTRACT TYPE WAS PROFESSIONAL SERVICES SINGLE SOURCE CONTRACT. SO IT DID NOT
GO THROUGH COMETPATIVE BIDDING PROCESS. OF THAT, YOU KNOW, AMOUNT, SOME OF IT WENT TO START-UP COSTS, ABOUT HALF OF IT WENT TO STAFFING COSTS, AND THEN SOME OTHER CATEGORIES WERE CONTRACTORS. OPERATING COSTS, HOUSING EXPENSES, AND THEN ADMINISTRATIVE COSTS THAT WERE MADE UP THAT TOTAL CONTRACT
BUDGET. AS IN THE REPORT AND KIND OF IN HERE WHAT SOME OF THE WORK PLANS WERE, SO THERE WAS SOME INFORMATION IN THE EXHIBITS AND IN THE WORK PLAN ABOUT KIND OF WHAT THEY WOULD DO IN TERMS OF, YOU KNOW, THAT APPLY TEMPORARY HOUSING FOR INDIVIDUALS SPE
EXPERIENCING ADDICTION AND HOMELESSNESS. AS PART OF THE CITY'S PROCESS FOR EVERY CONTRACT GOING THROUGH A SINGLE OR SOLE SOURCE CONTRACT PROCESS THERE IS A JUSTIFICATION FORM THAT WAS SUBMITTED SO THE TEXT IS WITHIN THE REPORT YOU HAVE OF KIND OF WHAT IT WAS, BUT KIND OF
NOTING THAT NEED TO KIND OF PROVIDE THE SERVICES AND KIND OF A LITTLE BIT WHAT IT WOULD CONTAIN. SO NOW KIND OF GET TO THE BULK OF THE REVIEW AND KIND OF WHERE WE SPEND OUR TIME AND KIND OF NOTICING, REVIEWING CONTRACT -- INVOICES AND PAYMENTS AND OTHER SUPPORTING DOCUMENTATION. SO YOU KNOW,
WHEN WE FIRST ENGAGED WE REVIEWED THE CONTRACT AND MET WITH MANAGEMENT TO UNDERSTAND THE CONTRACT AND CONTRACT MANAGEMENT PRAWMENTZ WE THEN YOU KNOW REQUESTED INVOICES THAT HAD BEEN SUBMITTED AS PART OF THIS CONTRACT. WE REQUESTED THE SUPPORTING DOCUMENTATION AND OTHER INFORMATION THAT WAS AVAILABLE FOR THAT. WE REVIEWED AND TRIED TO RECONCILE THOSE INVOICES AND SUPPORTING
DOCUMENTATION TO SEE WHAT INFORMATION WAS THERE AND KIND OF HOW THINGS MATCHED UP, AND THEN AS NEEDED, INQUIRED WITH THE HEALTH DEPARTMENT ON ADDITIONAL DOCUMENTATION, CLARIFICATIONS AND OTHERS SO WE ALSO APPRECIATE THE WORK OF FINANCE AND KIND OF -- PROCUREMENT AND ACCOUNTS PAYABLE AND OTHERS THROUGHOUT OUR WORK IN TERMS OF GETTING US
INFORMATION AND DOCUMENTATION, KIND OF ANSWERING OUR QUESTIONS. SO YOU KNOW, AS OF MID-MARCH 2025, THE CITY HAD PAID ALL OF $933,000 WITH A FINAL PAYMENT THAT OCCURRED EARLY APRIL AS WE WERE KIND OF WRAPPING UP DRAFTING THIS REPORT
AND OTHER STUFF, AND WE'LL GET INTO THAT LITTLE BIT BUT THERE WERE SOME ADDITIONAL CONSIDERATIONS AROUND THAT ADVANCED PAYMENT INVOICE AND THEN ERRONEOUS PAYMENT WE WILL GET INTO A SECOND HERE. IN THE REPORT AND KIND OF ON HERE WE KIND OF NOTED, YOU KNOW, A
HANDFUL OF AREAS THAT WE KIND OF OBSERVED AND WANTED TO KIND OF DRAW ATTENTION TO KIND OF YOU KNOW THAT WERE THROUGH REVIEW. ONE IS AROUND DUPLICATIVE ERRONEOUS PAYMENTS, REVIEW OF INVOICES AND SUPPORTING DOCUMENTATION, COMPLETENESS AND CLARITY OF EXPENSES TO THE SUPPORTING DOCUMENTATION, PREPAID EXPENSES AND PRECONTRACT
EXPENSES, ALLOWABLE AND UNALLOWABLE EXPENSES, DETAILED AND CLEAR CONSISTENT COST CATEGORIES AND BREAKDOWNS, AND THEN ADVANCED PAYMENT AND THEN SUBCONTRACTOR APPROVALS. SO THE FIRST KIND OF CATEGORY HERE, DUPLICATE ERRONEOUS PAYMENTS.
SO TWO INVOICES TOTALING $177,462.92 WERE IDENTIFIED PAYMENTS MADE IN ERROR WITH A VENDOR SUBMITTING REVISED INVOICES FOR THOSE TIME PERIODS THAT WERE ALSO PAID. SO AS WE NOTED WHEN WE WERE DOING THE REVIEW, WE NOTED THAT THERE WAS TWO INVOICES THAT COVERED TWO
OTHER INVOICE PERIODS, SO THE SAME TIME PERIODS, THEREFORE DIFFERENT AMOUNTS. WE INQUIRED WITH MANAGEMENT, YOU KNOW, ABILITY THOSE OVERLAPPING SERVICE PERIODS AND THE AMOUNT AND DIFFERENCES IN THOSE. MANAGEMENT THEN DETERMINED THAT TWO OF THOSE INVOICES SHOULD NOT HAVE BEEN PAID AS PART OF THIS CONTRACT AND THUS WERE DUPLICATE
ERRONEOUS PAYMENTS ADDING UP TO THAT $177,000, SO THE CITY NOTIFIED THE VENDOR OF THESE PAYMENTS AND WORKED -- THE VENDOR OPTED TO SUBMIT INVOICES AND SUPPORTING DOCUMENTATION FOR UNREIMBURSED AND SUPPORTING DOCUMENTATION THAT WERE ALSO IN THE TIME PERIOD SO AS WE KIND OF DETAIL IN THE REPORT A LITTLE
BIT SO KIND OF FELT KIND OF THERE WAS SOME TIME PERIOD ON THE CONTRACT AND SERVICES FROM BASICALLY KIND OF SUMMER AND FALL 2024 THAT WERE THE VENDOR SUBMITTED AND THE HEALTH DEPARTMENT REVIEWED AND APPROVED FOR THAT TIE THAT PAYMENT TO.
SO THE CITY NEVER PAID MORE THAN THAT $999,000, IT'S JUST THAT THERE WERE TWO INVOICES THAT, YOU KNOW, THAT WENT TO THAT, TO THAT CONTRACT AMOUNT THAT SHOULD NOT HAVE BEEN PAID, AND THEN WERE THUS KIND OF NOTED BACK. SO REVIEW OF INVOICE AND
SUPPORTING DOCUMENTATION PRIOR TO PAYMENT. SO YOU KNOW WE NOTED, WE INQUIRED ABOUT INVOICES AND PAYMENTS THAT COVERED -- THERE WE GO, THE CITY FORMALLY REVIEWED AND RECONCILED SUPPORTING DOCUMENTATION WITH INVOICES TO ENSURE INFORMATION WAS COMPLETE AND ACCURATE WITH REQUESTED REIMBURSEMENT COSTS.
SO AS PART OF OUR REVIEW, WE REQUESTED THE DOCUMENTATION. WE REVIEWED THE INVOICES. YOU KNOW, REVIEWING, YOU KNOW, THAT SOME DOCUMENTATION EITHER WAS NOT, YOU KNOW, IN THE ORIGINAL BATCH DOCUMENTS THAT WE RECEIVED AND HAD TO BE REQUESTED. WE ALSO NOTED THAT THOSE QUESTIONS AND TRANSACTION REPORTS AND
OTHER -- THAT DID NOT FULLY ALIGN WITH INVOICES, WERE MISSING AND THERE WAS UNCLEAR SUPPORTING DOCUMENTATION AT TIMES IN TERMS TO WHAT COSTS WERE APPLIED TO AND HOW AND WHAT WERE APPLIED. THERE WERE NOT A DETAILED DOCUMENT REVIEW AND RECONCILIATION OF INVOICES AND SUPPORTING DOCUMENTATION. AS A
RESULT, YOU KNOW, WE'RE UNABLE TO CONFIRM, YOU KNOW, THE INFORMATION WE RECEIVED PRIOR TO THE INVOICES AND KIND OF HOW THAT CONTRIBUTED TO OR HOW THAT MATCHED TO THE END PAYMENTS THAT WERE MADE. YOU KNOW, AS WE KIND OF RECEIVED KIND OF THROUGHOUT
KIND OF THAT -- IN TERMS OF REVIEWING RECONCILING DOCUMENTS AND INFORMATION, INQUIRED ADDITIONAL TIME AND WORK ON US TO KIND OF DETERMINE WHAT WAS RECEIRECEIVED AND HOW THINGS MATCHED UP AND THAT RESULTED IN A LACK OF CLARITY AND CONFUSION AMONG STAKEHOLDERS
IN DISCUSSING AND REVIEWING THE DOCUMENTATION. ALSO NOTE THAT YOU KNOW CONSEQUENCE OF THAT PLAYED INTO THE OVERPAYMENTS AS WELL AS THAT -- INVOICES WEREN'T RECONCILED TO CATCH THAT THERE WERE THOSE, YOU KNOW, DUPLICATE PERIODS OR THOSE PERIODS THAT DID NOT HAVE SUPPORTING
DOCUMENTATION ATTACHED. AND THAT'S -- THERE WE GO. OUR NEXT CATEGORY, SO COMPLETENESS AND CLARITY OF EXPENSES OF SUPPORTING DOCUMENTATION. SO SUPPORTING DOCUMENTATION SUBMITTED WITH INVOICES WERE NOT ALWAYS ACCURATE, CLEAR, COMPLETE, ACCURATE, AND CLEAR
WITH VARIANCES IN DOCUMENTATION AND REIMBURSEMENT REQUESTS AND A NEED FOR ADDITIONAL DOCUMENTATION INFORMATION. SO KIND OF PLAYING INTO WHAT I UNDERSTAND IN TERMS OF HAVING TO REQUEST ADDITIONAL INFORMATION, AND CLARITY, WE NOTED, YOU KNOW, AT THE END, THE REQUESTED DOCUMENTATION WAS KIND OF ULTIMATELY ABLE TO BE RECEIVED, BUT WE NOTED AT THE TIME UNABLE
TO LOCATE A NUMBER OF SUPPORTING DOCUMENTS THAT WE HAD TO BE REQUESTED. THERE WAS INCONSISTENCIES IN AMOUNTS AND NUMBERS BETWEEN THE INVOICES, TRANSACTION REPORTS, AND SUPPORTING DOCUMENTATION. SO AS DETAIL IN THE REPORT A LITTLE BIT AROUND, LIKE, SOME OF THE COST CATEGORIES, TRANSACTION REPORTS, THAT KIND OF DETAILED
WHAT THE EXPENSES WERE FOR THE PERIOD. THEN THERE WAS SUPPORTING DOCUMENTATION AND AT TIMES, YOU KNOW, NONE OF THOSE MATCHED UP WITH THE INVOICE SO IT WAS DETERMINING WHAT EXPENSES WERE APPLIED TO WHERE AND WHERE THEY WERE APPLIED TO. THERE WERE SOME BREAKDOWNS AND EXPLANATIONS WERE NOT FULLY
CLEAR RESULTING IN INQUIRIES. WE HAD TO SPEND ADDITIONAL TIME AND WORK TRYING TO DETERMINE WHERE THE COSTS WERE APPLIED TO AND HOW THEY WERE APPLIED. FOR EACH OF THE, YOU KNOW, CONTRACT COST CATEGORIES, A VENDOR AS I SAID GENERALLY PROVIDED THAT TRANSACTION AND COST REPORT,
INCLUDING LINE ITEM EXPENSES OR AMOUNTS AND THE DATE AS WELL AS TOTAL AMOUNT CHARGED FOR THAT PARTICULAR COST FOR THAT TIME PERIOD. SO THERE ARE A COUPLE THAT WE HAD TO REQUEST IN THERE, BUT WE TRY TO MATCH THOSE UP WITH SUPPORTING DOCUMENTATION. THAT'S WHERE WE NOTED THAT, YOU KNOW, THERE WAS A VARIANCE, DISCREPESSANCIESS AND KIND OF SOME ADDITIONAL WORK THERE. IN
THE REPORT WE KIND OF DETAILED SOME SPECIFIC AREAS OF NOTE WHEN IT COMES TO EACH OF THOSE BULLET POINTS ON HERE, SO AROUND TRANSACTION COST REPORTS, AROUND SOME -- ENDED UP WITH THE INVOICE SO IT'S KIND OF DETERMINING GENERALLY THE INVOICE WAS LESS THAN THE
TRANSACTION REPORT SO THE CITY WAS PLAYING LESS THAN THE TOTAL AMOUNT BUT UNABLE TO FULLY DETERMINE WHAT PORTION OF COST WENT TO WHERE. AS WELL AS SOME MISSING STAFFING COSTS. WE NOTED DIFFICULTY IN KIND OF REVIEWING AND RECONCILING TO KIND OF THE WAY THAT THE
401(k) PAYMENTS AND OTHER EXPENSES WERE APPLIED TO. AND KIND OF HOW THEY KIND OF PLAYED INTO THOSE COSTS AS WELL AS, YOU KNOW, SOME OF THE DOCUMENTATION. IT APPEARED, YOU KNOW, BETWEEN THE INITIAL INVOICE, INITIAL DOCUMENT ATION THAT WAS RECEIVED WHEN THE CONTRACT WAS WITH THE
INVOICE TO SOME OF THE DOCUMENTATION IN THE BACK END, THERE WERE VARIANCES IN PEOPLE'S POSITIONS AND STAFFING AND STASTA STAFFING AND SALARIES THAT MADE IT HARD TO DETERMINE WHAT WAS THE TRUTH THAT WAS SUBMITTED INITIALLY AND DOCUMENTS ON THE BACK END TRYING TO RECONCILE THAT WE WERE UNABLE TO NOTE BECAUSE DIFFERENT POSITIONS,
PEOPLE ARE MISSING, KIND OF PEOPLE CHANGING ON THAT ONE. WE ALSO NOTED IT WAS OUTLINED IN THE REPORT AROUND ONE OF THE PAYROLL AND PROCESSING FEES THAT APPEARED TO HAVE BEEN PAID TWICE. AND THEN AGAIN AROUND SOME OF THOSE FEES LIKE HOW THEY WERE DETERMINED. LIKE WHAT WERE WE
PAYING FOR, LIKE IF IT WAS, CONSISTENCY AROUND THOSE APPLICATIONS AND THOSE AMOUNTS. AROUND CONTRACTORS, WE NOTED A FEW INSTANCES AROUND CONTRACTORS AS WE KIND OF GET INTO A LITTLE BIT THERE ENDED UP BEING SUBCONTRACTORS, WHICH IS WHY --
FOR THE PURPOSES THE HELIX IS A CONTRACT TO THE CITY AND YOU KNOW FOR THE CITY'S PURPOSES, THERE IS THE SUBCONTRACTORS THAT CONTRACT WITH HELIX, AND IT ENDED UP BEING $80,000 FOR THAT, FOR THOSE USE OF THOSE CONTRACTORS AND WE NOTED OBSERVATIONS AROUND, YOU KNOW, THOSE THREE AROUND, YOU KNOW,
THE BILLING OF THOSE AND KIND OF THE DETAILS AROUND WHAT THEY WERE BILLING FOR AND THOSE HOURS. WE DETAILED IN THE REPORT AROUND, YOU KNOW, THE SPECIFICS THAT WERE NOTED. SO LACK OF CLARITY FOR SOME OF THESE COSTS AROUND THE BULK OF
THE MONEY WENT TO ENCAMPMENT PAPERWORK, INSPECTIONS, MOVES, DOESN'T REALLY KIND OF PROVIDE THAT CLARITY TO THAT DETAIL AND TO WHAT THE CITY WAS COVERING AND PAYING FOR. OPERATING
COSTS, SO HOW TO REQUEST AND RECEIVE SOME INITIAL DOCUMENTATION THAT WAS MISSING AROUND THOSE, AND WE HAVE A SEPARATE NOTE AROUND OPERATING COSTS, AND THEN HOUSING AND ADMIN COSTS NOTING TOO THERE WAS CLARITY AROUND BREAKDOWNS, EXPENSES. SOME OF THE
DOCUMENTATION WE HAD TO REQUEST AND RECEIVE AFTER THE FACT. PREPAID EXPENSES AND PRECONTRACT EXPENSES. SO THE CITY PAID FOR EXPENSES THAT OCCURRED PRIOR TO THE CONTRACT START DATE, AND PREPAID EXPENSES, SO JUST ENTERPRISE SOFTWARE FROM WHEN
THE VENDOR WAS NOT DIRECTLY PERFORMING CONTRACT WORK. SO TWO PARTS OF THIS. FIRST PART IS, YOU KNOW, REVIEWING THE INVOICES, REVIEWING THE SUPPORTING DOCUMENTATION THE CITY APPEARED TO PAY FOR EXPENSES THAT OCCURRED PRIOR TO THE CONTRACT START DATE. THROUGH DISCUSSIONS WITH CITY ATTORNEY'S OFFICE AND PROCUREMENT, IT WAS KIND OF, YOU KNOW, IF YOU DO NEED TO -- IF
THERE IS CIRCUMSTANCES AS RECOMMENDED KIND OF PREDATE THE CONTRACT START DATE OR KIND OF DO NOTIFICATIONS AROUND THERE THERE BUT WE NOTED KIND OF IN THE REPORT A LITTLE BIT YOU KNOW SOME SPECIFICS AROUND WHAT WE OBSERVED AND SOME OF THE EXPENSES THAT APPEARED TO HAVE OCCURRED BEFORE THE CONTRACT
START DATE, SUCH AS THE JOB POSTING AND RECRUITING, QUICKBOOK SETUP AND SOME OF THAT OTHER WORK. AND THEN YOU KNOW AS NOTED, YOU KNOW, KIND OF WITH THOSE, SOME DIFFICULTY TOO WAS THE TRANSACTION REPORTS MAY NOT FULLY ALIGN WITH THE INVOICES, SO MAYBE THE CITY MIGHT'VE PAID FOR PRORATED PORTION BUT IT WAS HARD TO TELL BASED ON WHAT WE
HAD, YOU KNOW, WHAT EXPENSES WERE APPLIED TO THERE. AND ALSO WE NOTED THE CITY NO EXAMPLES APPEARED TO PAY FOR PREPAY FOR 12 MONTHS OF USE OF ITEM SUCH AS OFTWARE, MICROSOFT 365 ACCOUNTS, CORPORATE MAILBOX AND SOME OF THE OTHER EXPENSES, SO AT THE
END OF THE DATE OF THE CONTRACT, WITH THE PREPAID -- THE OVERPAYMENT THAT WAS MADE AND WITHIN THE PRE-- THE ADVANCED PAYMENT, YOU KNOW, THE CONTRACT ENDED UP BILLING FOR WORK
THROUGH NOVEMBER 30th, 2024. BUT THE WORK WAS STOPPING IN THE SUMMER OF 2024. SO YOU KNOW BEST PRACTICE FOR THE CITY TO BILL, IF Y'ALL ARE USING A SERVICE BOTH FOR THAT MONTH, BOTH FOR THAT PERIOD INSTEAD OF PREPAYING FOR A FULL 12 MONTHS WHEN IT WAS NOT CLEAR YOU KNOW
THE CITY USING IT FOR 12 MONTHS OR NOT FOR THAT WORK. SO AGAIN KIND OF SOME LACK OF CLARITY AROUND THOSE SO UNALLOWABLE, UNALLOWABLE AND ALLOWABLE EXPENSES WERE NOT CLEAR ON COVERING START-UP COSTS
INCLUDING PRINTERS, ENTERPRISE SOFTWARE, AND INSURANCE. SO YOU KNOW, BASED ON WHAT WE HAD INFORMATION, THERE WAS A CONTRACT AND THE EXHIBITS, THAT KIND OF PROVIDED SOME BREAKDOWN OF COSTS, BUT THE CITY DID NOT IDENTIFY KIND OF CLEARLY ARTICULATE WHAT WAS ALLOWED AND UNALLOWED AS PART OF THIS CONTRACT IN TERMS OF ORGANIZATIONAL EXPENSES, IN
TERMS OF CONTRACT EXPENSES.TRO THERE WAS AS WE NOTED WITH THE ENTERPRISE SOFTWARE WITHIN SOME OF THESE USE OF PRINTERS AND SCANNERS, THE CITY GENERALLY DOES NOT A ALLOW THOSE PERFORMSES VERSUS OPERATIONAL EXPENSES AND IT'S
BEST PRACTICES, THE CITY GENERAL PREFERS TO COVER THOSE EXPENSES PAID FOR BUT AS PART OF THE CONTRACT, IT DIDN'T REALLY CLEARLY ARTICULATE THE CITY WOULD PAY FOR THIS OR THIS IS WHAT THE CITY IS SPECIFICALLY PAYING FOR. IT'S JUST KIND OF FROM THE COST CATEGORIES AND SOME OF THOSE LAR LARGER
LUMP S SUMS. AND WE KNOW WHAT THE CITY WOULD COVER AND -- DID NOT CLEARLY ARTIC IMRLT AND CLEARLY DEFINE THAT INFORMATION. DETAILED AND CLEAR CONSISTENT COST BREAKDOWN AND COST CATEGORIES. SO SOME COST CATEGORIES WERE NOT BROKEN DOWN INTO SPECIFICS WITH A CLEAR UNDERSTANDING OF HOW THEY WERE DETERMINED AND EXPENSES FOR SOME
COST CATEGORIES WEREN'T CONSISTENTLY APPLIED. FOR EXAMPLE, WE NOTED MILEAGE KIND OF -- DIFFERENT COST CATEGORIES THROUGHOUT THE DOCUMEN DOCUMENTATION, SO KIND OF WHAT I WAS GETTING INTO AT THE END OF THE LAST ONE, ALONG WITH THE -- ON THE COST IN TERMS OF HOW THE COSTS WERE DETERMINED AND SOME
OF THOSE CALCULATIONS, SO YOU KNOW IT WASN'T CLEAR HOW THE AMOUNTS WERE CALCULATED FOR THIS CONTRACT, IF IT WAS ON A PER CLIENT BASIS, IF IT WAS ON A TIME BASIS, YOU KNOW OUCH, SUCH AS PER MONTH TO FEEL OUT THE CONTRACT. YOU KIND OF UTILIZE, LOOKED AT THE EXHIBIT AND
CONTRACT AND TRY TO, YOU KNOW, WASN'T REALLY CLEAR YOU KNOW IF THE CITY IS PAYING FOR THIS NUMBER OF PEOPLE TO BE SERVICED, FOR THIS TIME PERIOD OF REPAYING FOR THIS TIME PERIOD AND KIND OF WHATEVER FALLS IN THAT TIME PERIOD AND THAT PLAYS INTO, YOU KNOW, WHAT WE KNOW TO KIND OF --
IN TERMS OF WITH MANAGEMENT AND WITH OTHERS, THE LACK OF CLARITY ON THOSE COST CATEGORIES AND WHAT THEY APPLIED TO. AND THEN TWO, YOU KNOW, WE WERE UNABLE TO DOCUMENT OR DEFINE BREA OR BREAK DOWN THESE EXPENSES COSTS BUT THE CONTRACTOR USED THE WHOLE BUDGET BUT IN TERMS OF IF
WE WERE PAYING FOR WHAT WE WERE SPECIFICALLY PAYING FOR, IF IT WAS EXPECTED TO PAY THE WHOLE CONTRACT AMOUNT, IF IT WAS JUST CALCULATION, THE CITY PAID AND COVERED VARIOUS EXPENSES. ADVANCED PAYMENT, SO THIS CONTRACT CONTAINED A $238,000 ADVANCED PAYMENT THAT DID NOT CLEARLY IDENTIFY THE
EXPENSES THAT WOULD BE APPLIED TO CREATING CHALLENGES AND REVIEWS AND RECONCILIATIONS, SO THERE IS THAT INITIAL PAYMENT THAT WAS MADE ON DECEMBER 1st, 2023, THAT YOU KNOW, COVERED $238,000 OF SOME INFORMATION THAT IT WENT TO START-UP COSTS, WHEREAS YOU KNOW INCLUDES INITIAL STAFFING AND OPERATING COSTS ACCOUNTING FOR
15% OF PROPOSED BUDGET WAS THE INFORMATION. SOME OF IT WENT TO CONTRACTORS. THEN SOME OF IT WENT TO ADMIN COSTS. WE DID NOTE THAT THE CONTRACTORS, YOU KNOW, KIND OF PAID ON A MONTHLY BASIS REVIEWING THE INVOICES AND SUPPORTING DOCUMENTATION. YOU KNOW, BASED ON WHEN AT THIS SUBMITTED WORK. BUT IT WAS NOT
CLEARLY DETAILED TO, YOU KNOW, WHEN THOSE EXPENSES WOULD BE APPLIED TO SO THE CONTRACTOR ENDED UP ULTIMATELY SUBMITTING, YOU KNOW, APPLYING IT TO KIND OF SUMMER OF 2024 EXPENSES. BUT IN OUR DISCUSSIONS IT WASN'T AT THE TIME WHEN WE FIRST BEGAN THIS AND THROUGHOUT, IT WASN'T THE
CONTRACT AND THE LANGUAGE WERE NOT CLEARLY STATING WE COVER THIS AMOUNT, THIS WORK, THIS TIME PERIOD OR THIS MONTHS IS KIND OF LEFT TO THE VENDOR AND YOU KNOW, THE CITY TO VENDOR AND SUBMIT STUFF AND THE CITY TO APPROVE THOSE CALCULATIONS AND
AMOUNTS. AND YOU KNOW, AS A RESULT IT HINDERED OUR ABILITY TO RECONCILE EXPENSES AND SUPPORTING DOCUMENTATION BECAUSE THE SUPPORTING DOCUMENTATION WE RECEIVED ON THE BACK END OF THE CONTRACT ON THEIR WORK. SUP CONTRACTOR APPROVAL, SO CITY NOT FORMALLY, DID NOT FORMALLY AND
RECEIVE IN WRITING THE APPROVAL OF THREE SUBCONTRACTORS. WE NOTED IN REVIEWING SUBCONTRACTOR INFORMATION, THAT THERE WAS BASED OF THE ONES BEING SUBMITTED, THERE WERE THREE OF THEM. THERE WERE TWO IDENTIFIED IN THE CONTRACT, AND THERE IS A SPECIFIC CONTRACT TERM IN THE CONTRACT ON SUBCONTRACTIC AND
THAT THE CITY MUST RECEIVE AND FORMALLY APPROVE IN WRITING THE USE OF OTHER -- RECEIVE THE USE OF SUBCONTRACTORS AND WE KNOW THAT THERE ARE TWO IN THE ORIGINAL BUDGET AND THERE WAS THE THIRD ONE THAT WAS ALSO USED AND ALSO THEY DID NOT -- IN THE SUPPORTING DOCUMENTATION DID NOT
KIND OF IDENTIFY WHICH ONE WAS GOING TO BE -- CONTRACT PROJECT CONSULTANT AND WHICH ONE WAS THE PRINCIPAL CONSULTANT. THERE WAS JUST DIFFERENT LANGUAGE USED AROUND THERE. THE BULK OF THIS AND WHAT IT LED TO IS AREAS FOR IMPROVEMENT AND RECOMMENDATIONS,
SO WE REVIEWING WHAT WE RECEIVED AND NOTED, TRIED TO IDENTIFY AREAS FOR IMPROVEMENT, AREAS FOR AREAS WE CAN HIGHLIGHT AND MAKE RECOMMENDATIONS ON, SO I WILL GO
THROUGH THOSE. THERE WERE FIVE OF THESE. THE FIRST ONE IS AROUND CONFLICTS OF INTEREST AND SINGLE SOURCE CONTRACTS. THERE IS A NEED FOR THE CITY TO CONDUCT REQUIRED CONFLICT OF INTEREST REVIEWS AROUND SICKLE/SOLE-SOURCE CONTRACTS TO ADDRESS RISKS AND CONTROL GAPS.
SO BASICALLY FOR NORMAL CONTRACT PROCESS THERE IS RFP IS REVIEWED AND THERE IS A STOPPING POINT OR CHECK AROUND CONFLICT OF INTEREST, BUT WHEN IT COMES TO THESE SINGLE SOURCE/SOLESOURCE CONTRACTS LIKE THIS ONE WAS, THERE IS NO REQUIRED DECLARATIONS OR OTHER POTENTIAL
INTEREST CONTROLS IN THAT REQUIRED FORM THAT WAS SUPPOSED TO BE COMPLETED T. DID NOTCON TAIN SPACE OR INSTRUCTIONS REGARDING CONFLICTS OF INTEREST, AND YOU KNOW, WHERE THOSE STEPS MAY OCCUR IN THE -- THIS SORT OF PROCESS AS WE KIND OF OUTLINED IN THE REPORT, YOU KNOW, IT GOES
THROUGH A UNIQUE PROCESS THERE, SO WE HAVE RECOMMENDATIONS AROUND ESTABLISHING A PROACTIVE CONFLICT OF INTEREST DISCLOSURES AND REVIEWS SINGLE SOURCE/SOLE -SOURCE CONTRACT. THEY SHOULD
BE REVIEWED IN PROCUREMENT AND PRC, ASK QUESTIONS AND MAKE FURTHER INQUIRY IF NECESSARY, AND MAKE SURE THAT ANY POTENTIAL CONCERNS OR OBSERVATIONS ARE DOCUMENTED AND MAINTAINED. ALSO POLICY AND PROCEDURE DOCUMENTS SHOULD BE UPDATED AND REFLECTED TO KIND OF UPDATE THESE EXPECTATIONS. LONGER TERM A
PART OF THE OVERSIGHT AND MONITORING, THE CITY SHOULD BE ESSENTIALLY TRACKING THESE CONTRACTS TO IDENTIFY OPPORTUNITIES FOR ADDITIONAL CONTROLS AND OVERSIGHT OVER THESE TYPES OF CONTRACTS AS THEY DO FOLLOW A UNIQUE PROCUREMENT PRACTICE. ADVANCED PAYMENT
PRACTICES. SO THE CITY SHOULD CLEARLY STATE WHEN ADVANCED PAYMENTS ARE ALLOWED, ENSURE THERE IS A CLEAR APPROVAL PROCESS FOR SUCH PAYMENTS, AND ENSURE THAT THERE IS CLARITY IN WHAT IMR REIMBURSEMENT EXPENSES ARE ASSOCIATED WITH IN THE ADVANCED PAYMENT AND HOW THE CONTRACT MANAGER WILL RECONCILE
EXPENSES SO AS WE NOTED THIS ONE DIDN'T REALLY CLEARLY ARTICULATE THE EXPENSES IN THE CONTRACT BUT IN TERMS OF THE PROCESS, THE CITY GENERALLY DISCOURAGES ADVANCED PAYMENTS. AS WE NOTED IN THE REPORT, THERE ARE RESERVESES IN SOME OF THE -- REFERENCES IN?
REFERENCES IN SOME OF THE VARIANCE DOCUMENTS AROUND ADVANCED PAYMENTS SUCH AS IN ONE OF THE PROCEDURES FOR PROFESSIONAL CONSULTING SERVICES BETWEEN 100,000 TO $175,000 BUT IT'S NOT CLEARLY UNIFORM ACROSS ALL DOCUMENTS THERE, YOU KNOW
THAT CONSISTENT, DIRECT VIEWPOINT AND APPROACH. THEN AS A RESULT IT CAN BE MANAGED -- CHALLENGED TO MATCH PAYMENTS TO THOSE ADVANCED PAYMENTS, CAUSING ADDITIONAL TIME AND ENERGY SUCH AS WE HAD TO CONDUCT IN THIS CONTRACT TO DETERMINE THOSE. SO
WE RECOMMEND THE CITY CLEARLY STATE RSTATE STATE RECOMMENDATIONS AND UNDER WHAT CIRCUMSTANCES THEY MAY BE CONSIDERED OR UTILIZED SO THE FINANCE LEVEL CENTRALIZE THAT. THE PROCESS AND YOU KNOW CLEARLY STATE IN THOSE DOCUMENTS WHAT IS
THE CITY'S VIEWPOINT, WHAT IS THE STANCE, SET THAT EXPECTATION, PROCUREMENT SHOULD INCURE ALL DEPARTMENTS ARE AWARE OF THE EXPECTATIONS AND THAT FINANCE IS ESTABLISHED, AND THAT
APPLICABLE REQUIREMENTS ARE SET FORWARD. THE CITY SHOULD ESTABLISH A CLEAR APPROVAL PROCESS FOR PROCUREMENT, CITY ATTORNEY'S OFFICE, CHIEF FINANCIAL OFFICER, OTHERS, ARE CLEARLY AWARE OF AND APPROVE THE PAYMENT WITH CLEAR CONTRACT LANGUAGE. SO HAVING THAT
PROCESS IF THERE IS A NEED FOR THAT. THROUGH DISCUSSIONS WE INQUIRED ABOUT THE ADVANCED PAYMENT MADE TO THIS ONE AND THERE WAS CLARITY AROUND AWARENESS OF IT AND HOW IT APPLIED TO T THINGS AND HOW AT THE PROCUREMENT FINANCE LEVEL
BEFORE IT GETS TO THE CONTRACTING STAGE. SOME OTHER RECOMMENDATIONS CONTINUED. SO CONTRACTS CLEARLY IDENTIFY THAT ADVANCED PAYMENT WILL OCCUR AND THAT CONTRACTS WILL ATTACH EXHIBITS, IDENTIFY THE SPECIFIC LINE ITEMS THE PAYMENT WOULD BE ATTACHED TO. PRIOR TO THE FINAL
CONTRACT, CONTRACT MANAGERS AND VENDORS SHOULD HAVE THAT CLEAR UNDERSTANDING AND AWARENESS AND RECOGNITION AROUND THOSE ADVANCED PAYMENT AND HOW TO BE UTILIZED AND KIND OF BE ABLE TO PERFORM EACH -- AND AGAIN AT THE FINANCE LEVEL, KIND OF ESTABLISH
WAYS TO ESSENTIALLY TRACK AND MONITOR THE USE OF ADVANCED PAYMENTS AND HOW THEY ARE BEING UTILIZED, PROVIDE OVERSIGHT AND MONITORING OF THEM. CONTRACTING PROCESS. SO CONTRACTS DRAFTED BY DEPARTMENTS SHALL CLEARLY IDENTIFIED ALLOWABLE AND UNALLOWABLE EXPENSES AS PART OF THE CONTRACT WITH DETAILED
INVOICES AND BUDGETS. SO YOU KNOW FOR THIS CONTRACT DID NOT CLEARLY ARTICULATE ALLOWABLE OR UNALLOWABLE EXPENSES AS PART OF THE CONTRACT, AND THERE WAS NOT SPECIFIC CLARITY ON SOME OF THE COST CATEGORIES AND RELATED EXPENSE CALCULATIONS OR RATES. AND LACK OF CLARITY AND
SPECIFICS IN THE CONTRACTING PROCESS CARRY FORWARD INTO THE CONTRACTING AND MANAGEMENT STAGE REQUIRING MORE TIME AND ENERGY AND RESOURCES TO REVIEW INVOICES, SUPPORTING DOCUMENTATION, AND PROVIDE THAT FINANCIAL OVERSIGHT SOME MORE TIME ON THE BACK END SPENT IN DETERMINING WHAT MIGHT BE ALLOWED OR WHAT'S NOT ALL
ALLOWED AND HOW IT FITS INTO THE CONTRACT IF YOU DON'T PARTICULARLY AT THE FRONT END WHAT WORK WILL BE PERFORMED AND WHAT'S ALL ALLOW N, WHAT'S NOT ALLOWED. SETTING EXPECTATIONS CAN FACILITYITATE A MORE TIMELY AND SMOOTH
CONTRACTING EXPERIENCE FOR THE CITY AND THE CONTRACTOR KNOWING WHAT THEY CAN EXPENSE AND WHAT THEY CANNOT EXPENSE SO WE HAVE SPECIFIC RECOMMENDATIONS HERE FOR THE HEALTH DEPARTMENT AND FOR PROCUREMENT. SO YOU KNOW, HEALTH DEPARTMENT PRIOR TO CONTRACT SIGNING, AND AS PART OF THE CONTRACT AND EXHIBITS, ENSURE THAT THERE IS SUFFICIENT EXPENSE DETAILS TO ALLOW FOR
ADEQUATE RECONCILIATION AND UNDERSTANDING OF THE COSTS, SUCH AS HOW ITEMS SUCH AS STAFFING CAN BE UTILIZED AND THE RATE CALCULATIONS THAT WE UTILIZE TO DETERMINE THOSE EXPECTED COSTS. ARTICULATE ALLOWABLE AND ALLOWED EXPENSES PRIOR TO THE CONTRACTING SIGNING, ENSURING
THAT YOU KNOW THAT THERE IS CLARITY AND ALIGNMENT WITH THE CITY AND THE CONTRACTOR. SIMILARLY FOR PROCUREMENT, YOU KNOW, WE RECOMMEND THAT THEY KIND OF SET STANDARDS AND CLARITY AROUND ALLOWABLE AND UNALLOWABLE EXPENSES AS PART OF THE UPDATES TO EXPECTATIONS IN THE DOCUMENT SUCH AS THE CITY'S
FINANCIAL MANAGEMENT POLICY AND OTHER CONTRACTING POLICY AND PROCEDURES. PROVIDE DOCUMENTING AND GUIDANCE ON ALLOWABLE AND UNALLOWABLE EXPENSES, COST CALCULATIONS AND OTHER DETAILS FOR -- PROVIDE MORE RESOURCE, GUIDANCE, KIND OF SET THOSE
EXPECTATIONS AROUND WHAT THEY CAN EXPECT IN TERMS OF BEING SPECIFIC AND BEING AROUND ALLOWABLE AND UNALLOWABLE EXPENSES AND SOME OF THAT CONTRACT LANGUAGE. AND AS WE NOTED FOR THIS RECOMMENDATIONS CAN BE APPLIED FOR HEALTH DEPARTMENT CAN BE APPLIED FOR
PLOCUREMENT, YOU KNOW, CAN BE APPLIED ENTERPRISE-WIDE. SO INVOICE REVIEWS, DOCUMENTATION, AND TRACKING. SO AS WE NOTED FOR THIS ONE, THE HEALTH DEPARTMENT SHOULD ENSURE ALL INVOICES ARE RECONCILED WITH SUPPORTING DOCUMENTATION, AND THAT ALL DOCUMENTATION HAS BEEN RECEIVED PRIOR TO PAYMENT WITH
INVOICES AND PAYMENTS SUFFICIENTLY TRACKED. SO IT CAN AS WE NOTED IT CAN BE UNCLEAR ON DIFFERENT EXPECTATIONS AMONG DIFFERENT DEPARTMENTS AND CONTRACT MANAGERS REGARDING RESPONSIBILITY OF REVIEWING INVOICES AND DOCUMENTATION. IT CAN ALSO BE A LACK OF CLAIRBTY REGARDING WHAT IS SUFFICIENT AND
WHAT IS NOT SUFFICIENT, SO YOU KNOW, IS A PIECE OF PAPER, THIS PIECE OF PAPER SUFFICIENT OR IS THIS RECEIPT SUFFICIENT TO, YOU KNOW, BACK UP THOSE EXPENSES AS WE NOTED, YOU KNOW, ALL MOST OF CITY CONTRACTS ARE ON A REIMBURSABILITY BASIS OF THE CITY'S PAYING FOR SOMETHING THAT, YOU KNOW, EXPENSE THAT HAD
ALREADY OCCURRED THAT WE ARE PAYING FOR. AS PART OF THIS, EFFECTIVE CONTRACT MANAGEMENT, THESE REVIEWS SHALL TIE INTO OTHER OVERSIGHT RESPONSIBILITIES SUCH AS SIGHT VISITS, REQUESTING AND REVIEWING PERFORMANCE REPORTS, AND SUPPORTING INFORMATION FOR THOSE AND OTHER
ACTIVITIES. SO AS PART OF, WHEN IT COMES TO CONTRACT MANAGEMENT, CONTRACTING STAGE, THOSE KIND OF FINANCIAL MANAGEMENT ASPECT OF THE REVIEWING THE INVOICES, REVIEWING SUPPORTING DOCUMENTATION PRIOR TO PAYMENT, BUT THEN THERE IS ALSO CONTRACTING MANAGEMENT AND OVERSIGHT SUCH AS SITE VISITS, MAKING SURE THE WORK IS ACTUALLY BEING PERFORMED, MAKING SURE
THERE IS, THE CITY'S RECEIVING WHAT IT'S PAYING FOR A ON THE OTHER END THERE. SO FOR THE HEALTH DEPARTMENT WE RECOMMEND THAT IN ACCORDANCE WITH OVERSIGHT PRACTICES, ENISSURING
THAT EXPENSES ARE SUPPORTED BY THAT SUFFICIENT DOCUMENTATION, SO ESTABLISH A CENTRALIZED WAY OF TRACKING CONTRACTS, INVOICES, AND SUPPORTING DOCUMENTATION, PAYMENTS, AND OTHER KEY CONTRACT INFORMATION. ENSURE ALL CONTRACT MANAGERS AND REVIEWING AND RECONCILING THOSE INVOICES AND PAYMENTS AND FINDING ADEQUATE FINANCIAL OVERSIGHT.
THIS MAY REQUIRE, YOU KNOW, ADDITIONAL WORK AND, ADDITIONAL WORK AND KIND OF COMMUNICATION TO COMMUNICATE WITH THE VENDOR, COMMUNICATE WITH OTHERS FOR, YOU KNOW, ADDITIONAL INFORMATION AND CLARITY SUCH AS, YOU KNOW, IF WE DON'T RECEIVE SUPPORTING DOCUMENTATION, IF THERE ARE QUESTIONS AROUND IT, BUT THAT'S
WHERE IT SHOULD BE KIND OF OCCURRING IN THAT CONTRACT MANAGER STAGE. WORK WITH PROCUREMENT AND THE CITY ATTORNEY'S OFFICE ON UNDERSTANDING WHAT IS ACCEPTABLE FOR SUPPORTING DOCUMENTATION AND WHAT'S NOT. AND WHAT INFORMATION MUST BE INCLUDED ON THE SUPPORTING DOCUMENTATION.
MANAGEMENT SHOULD WORK TO ESTABLISH METHODS OF OVERSIGHT AND MONITORING OF CONTRACTS SUCH AS ENSURING CONTRACTS ARE UPDATING INFORMATION, THERE IS THAT REVIEW AND RECONCILIATION PRIOR TO PAYMENT, AND THAT ALL INFORMATION AND REPORTS SUCH AS PROPOSAL DOCUMENTS ARE RECEIVED PRIOR TO FINAL PAYMENT. FOR
PROCUREMENT, SIMILAR TO THE HEALTH DEPARTMENT BUT WITH SETTING FINANCIAL POLICIES, SETTING THAT KIND OF EXPECTATION AROUND, IT'S CLEAR FOR USERS WHAT IS REQUIRED AROUND REVIEWING OF INVOICES AND
RECONCILIATION, MAKING SURE THAT IT'S CLEAR AND CONSISTENT ACROSS THE ENTERPRISE AROUND WHAT CONTRACT MANAGERS ARE REVIEWING AND KIND OF WHAT THEY ARE APPROVING FOR. DOCUMENTATION AND PAYMENTS, AS PART OF THE PROCEDURE DOCUMENTS, DEVELOP GUIDANCE AND RESOURCES FOR
CONTRACT MANAGERS ON WHAT IS SUFFICIENT DOCUMENTATION, YOU KNOW, AND COMMUNICATE PROACTIVELY SUCH AS THROUGH TRAINING, THROUGH CITY TALK, THROUGH EMAIL, THROUGH UPDATES, MAKING SURE THAT WHEN SOMETHING OCCURS, WHEN THERE IS, YOU KNOW, A NEED FOR CLARITY OR KIND OF MAYBE BENEFICIAL, SETTING OUT
THOSE UPDATES VIA THE ENTERPRISE AROUND YOU KNOW WHAT MIGHT BE ACCEPTABLE, WHAT MIGHT NOT BE AND IF THERE IS A TREND OR SOMETHING COMES UP AS PART OF OF THAT OVERSIGHT AND THEN COMMUNICATE EXPECTATIONS TO CONTRACT 345678GERS AND CONTINUE TO WORK WITH THE CITY ATTORNEY'S OFFICE IN IMPLEMENTING TRAINING SO THERE HAS BEEN SOME WORK ON
TRAINING WITH ATTORNEY'S OFFICE AND PROCUREMENT AROUND FOR CONTRACT MANAGERS AND KIND OF CONTINUING THAT WORK, CONTINUING THAT EXPECTATIONERSE FINDING WAYS TOO TO BE MORE PROACTIVE ON A REGULARLY IDENTIFIED BASIS TO GET INFORMATION OUT. SO TH THAT THE LAST ONE
QUICKLY IS EXPEDITED CONTRACTING PROCESS. SO WE SHOULDN'T, YOU KNOW NOTED THAT THE CITY SHOULD ESTABLISH A CLEARLY COMMUNICATED, WELL-DEFINED DOCUMENTED PROCESS WITH APPROVALS AND CLEAR OVERSIGHT FOR SITUATIONAL AND URGENT CONTRACTING NEED HAS BEEN DETERMINED SO THIS ONE -- OTHERS WE HAVE KIND OF SEEN IN THE
PAST. YOU KNOW, THERE WAS THAT URGENT NEED FOR SERVICES AND WORK THAT WAS PERFORMED, BUT WHEN IT DOES THAT, IT CREATES PRESSURE ON THE STAKEHOLDERS, IT CREATES PRESSURE ON PEOPLE IN THE PROCESS THAT MAY NOT BE AWARE OF THE NEED FOR THE URGENCY. YOU KNOW, THERE MIGHT
BE GET SOMETHING ON THE DESK AND THIS HAS TO BE SIGNED OR SENT OUT TODAY, THOSE STUFF, THOSE PRESSURES, THOSE BURDENS CAN CREATE INSTANCES WHERE CONTRACTING PROCESSES GO OFF
TRACK OR MIGHT NOT HAVE BEEN, YOU KNOW, ADDITIONAL CHALLENGES AND WORK ARE AS WE SAW FOR THIS ONE, WERE YOU KNOW ADDITIONAL WORK KIND OF SPENT REVIEWING ON THE BACK END WHAT HAPPENED. WE RECOGNIZE THAT WHILE THERE MAY BE NEEDS, TIMES FOR THE CITY TO QUICKLY BE ABLE TO FIND A CONTRACTOR OR DO THAT WORK, YOU
KNOW, AS PART OF THAT, YOU KNOW, TO KIND OF ADJUST THE RISK AND IMPACTS, YOU KNOW, INCREASE RISK AND IMPACTS, YOU KNOW, WE RECOMMEND THE CITY CONSIDER ESTABLISHING CLEAR GUIDELINES AND PROCESSES FOR WHEN IT IS DETERMINED A CONTRACTING PROCESS IS URGENT AND MUST MOVE QUICKLY
SUCH AS ESTABLISHING KIND OF THAT GROUP OF STAKEHOLDERS, SOME OF KIND OF THE PERMANENT REVIEW COMMITTEE OR OTHERS TO REVIEW THE SITUATION REQUEST, DETERMINE FIRST IF THERE IS THAT NEED. YOU KNOW, A LOT OF TIMES MAYBE IT CAN BE HANDLED THROUGH EXISTING CONTRACT OR EXISTING WORK OR MAY NOT BE THAT, YOU
KNOW, AS URGENT AS THE STAKEHOLDER IN THE MOMENT THINK THAT IT SAID BUT HAVING THAT KIND OF OVERSIGHT FROM THAT FINANCE LEVEL, THAT PROCUREMENT LEVEL, TO KIND OF MAKE THAT DETERMINATION AND THEN THAT STAKEHOLDER GROUP CAN BE ALIGNED AND K MAKE THE, INFORM THE
NEED FROM THE START, REDUCE INEFFICIENCIES AND ENSURING THERE IS CLARITY AND CONSISTENT COMMUNICATION AND ENSURE THAT -- IN A TYPICAL CONTRACT PROCESS, THERE ARE MANY PEOPLE INVOLVED THROUGHOUT THE CITY. HIGHLIGHTING THE NEED FIRST INSTEAD OF KIND OF AFTER THE
FACT. SO YOU KNOW, A GROUP OF STAKEHOLDERS SUCH AS THE DEPARTMENT OF PROCUREMENT, CITY ATTORNEY'S OFFICE AND OTHERS CAN DETERMINE AS IF THERE IS THAT NEED, WORK WITH THE DEPARTMENT TO MAKE SURE THAT THE NEEDS ARE CLEAR, AND WHAT THEY SPECIFICALLY WANT AND NEED, PROVIDE CLEAR ROLES AND RESPONSIBILITIES AMONG GROUPS
AND STAKEHOLDERS IN THE CONTRACTING PROCESS, ENSURING THAT NEEDS AND OBJECTIVES ARE ALIGNED AND IS THAT EXPEDITED CONTRACTING PROCESS IS NECESSARY, AND THAT EVERYONE HAS THAT SAME UNDERSTANDING SO EVERYONE'S SAM PAGE AND EVERYONE HAS THE SAME AWARENESS OF THE SAME KIND OF DEDICATION, THE
SAME KIND OF TIME TABLE TO GET THE WORK DONE, ENSURING THAT THERE ARE CLEAR POLICIES AND PROCEDURES FOR THIS PROCESS OR FOR THESE KIND OF CONTRACTS, AND UPDATE GUIDANCE AS NECESSARY. AND THEN PROVIDING THE REALTIME GUIDANCE AND OVERSCOIGHT, SO IF THERE IS A STEP THAT MIGHT BE MISSED OR SOMETHING THATTED
SHOULD BE OCCURRING, OVER TIME BEING ABLE TO MAKING SURE THAT ALL SIGNOFFS ARE COMPLETED AND EFFECTIVELY AND EFFICIENTLY MAKE SURE THE PROCESS IS GOING. HAVING AWARENESS AND ALIGNMENT FROM THAT ONE GROUP. SO THOSE
ARE OUR RECOMMENDATIONS, YOU KNOW, WHAT WE SAW THROUGHOUT THIS CONTRACT AND RECOMMENDATIONS. AS I SAID THIS WASN'T UNIQUE FOR THE HEALTH DEPARTMENT. SOMETHING THAT WE'VE NOTED FOR THE ENTERPRISE AND KIND OF HOPE TO CARRY FORWARD THE ENTERPRISE. WE DO ARE SOME OTHER ONGOING WORK -- WE DO HAVE SOME OTHER ONGOING
WORK RELATED TO PROCUREMENT AND REVIEWING AS WE CALLED OUT IN THE ENTERPRISE RISK ASSESSMENT, SOME OF THOSE RISKS THAT WE HAVE BEEN TRACKING, MONITORING AROUND THOSE SINGLE SOURCE/SOLE-SOURCE CONTRACTS. WE CONTINUE TO FOLLOW UP WITH THE RESPONSIBLE
PAPARTIES AS NECESSARY AND INCORPORATE THIS INTO OUR WORK. AND I APPRECIATE MANAGEMENT'S WORK IN HELPING WITH THIS AS REREVIEW THIS INFORMATION, IT WAS HELPFUL TO HAVE THAT COORDINATED RESPONSE AND MAKE SURE THAT WE ALL UNDERSTAND WHAT
HAPPENED AND HOW WE CAN AS A CITY IMPROVE. I BELIEVE BRETT MIGHT HAVE SOME COMMENTS OR IF NOT, ALSO I AS I SAID QUESTIONS ON THE WHAT WE SAW. IT CAN BE FOR ME. ALSO MANAGEMENT IS HERE FROM A COUPLE DEPARTMENTS WHO
MIGHT BE ABLE TO ANSWER QUESTIONS. >> THANK YOU FOR THE PRESENTATION. DID YOU WANT TO MAKE SOME COMMENTS, MR. HJELLE.
>> THANK YOU, CHAIR PAYNE, AND COMMITTEE MEMBERS. I'M BRETTE H JELLE. I APPRECIATE THE OPPORTUNITY TO FOLLOW MR. KAMM'S PRESENTATION WITH SOME BRIEF COMMENTS. FIRST, I WANT TO THANK THE AUDITOR TIMMEREN AND
HIS TEAM FOR THEIR COLLABORATIVE APPROACH DURING THEIR REVIEW. I ALSO WANT TO THANK THE HEALTH DEPARTMENT, FINANCE AND PROPERTY SERVICES FOR APPROACHING THIS REVIEW WITH THE SAME COLLABORATION. THESE ARE OPPORTUNITIES TO LEARN WHAT WE'RE DOING WELL AND AREAS WHERE WE CAN MAKE IMPROVEMENTS. MANAGEMENT'S RESPONSE IS
INCLUDED WITH THE AUDIT REPORT. AND THE PURPOSE OF THE MANAGEMENT RESPONSE IS TO NOTE CHANGES WE'VE PUT INTO PLACE AS THIS REVIEW WAS IN PROCESS. THESE INCLUDE IMPROVED CONTRACT, CONTRACT TRACKING, ADDITIONAL TRAINING, AND FORMALIZING STANDARD OPERATING PROCEDURES.
IT ALSO PROVIDES SOME C CONTEXT FOR THE PARTICULAR NEED AT THE MOMENT IN TIME FOR CULTURALLY SPECIFIC HOUSING, SUBSTANCE USE DISORDER, AND MEANTAL HEALTH RESOURCES FOR THE NATIVE AMERICAN COMMUNITY. WE HAVE MEMBERS OF THE STAFF TEAM IN THE AUDIENCE IF THERE ARE QUESTIONS FROM THE COMMITTEE. THANK YOU FOR YOUR TIME.
>> THANK YOU. IS THERE ANY QUESTIONS FROM COMMITTEE MEMBERS? MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE. I DID HAVE A QUICK QUESTION ON THE MANAGEMENT RESPONSE AND THANK
YOU FOR PROVIDING THAT IN THAT CONTEXT FROM BOTH GROUPS ON FUTURE FOLLOW-UP. I THINK I'M USED TO SEEING KIND OF EACH OF THE RECOMMENDATIONS KIND OF TRACKED WITH A TIMELINE WITHIN OUR REPORTS. I JUST WANT TO MAKE SURE THAT THE AUDIT COMMITTEE OR THE AUDIT TEAM FEELS COMFORTABLE THAT THE
MANAGER RESPONSE AND THE OTHER ENTERPRISE EFFORTS IS GOING TO MEET THE NEEDS OF THIS SPECIFIC EXAMPLE. >> CHAIR PAYNE, COMMITTEE MEMBER HOSBEIN, GOOD QUESTION. THANK YOU FOR HIGHLIGHTING THAT. THIS WASN'T A TYPICAL AUDIT, YOU KNOW, WE -- PART OF THE AUDIT
PROCESS YOU SEE SPECIFIC RECOMMENDATIONS, KIND OF MANAGEMENT RESPONSES FOR EACH ONE. AS THIS WAS AN ADVISORY SERVICE, KIND OF LIMITED CONTRACT REVIEW, KIND OF FOLLOWED A DIFFERENT PROCESS SO IN TERMS OF THE MANAGEMENT RESPONSES THAT THEY WEREN'T FORMAL AUDIT ISSUES SO THERE'S
SOMETHING THAT WE WILL KEEP TRACK OF. AS IT'S KIND OF OUTLINED WE HAVE FUTURE WORK AND ONGOING WORK ALREADY AROUND CONTRACT PROCUREMENT, SOME OF THESE PROSES AND IT BE INCORPORATE -- PROCESSES AND TO BE INCORPORATED INTO THOSE PROCESSES AS WELL AS RISK ASSESSMENT TO DETERMINE THAT WORK IS BEING DONE IF WE SEE
THOSE RISKS BEING HIGHLIGHTED OR REPRESENTED AGAIN. SO SOMETHING THAT WE ARE ACTIVELY TRACKING AND MONITORING AND HOPE TO DO SOME SPECIFIC ENGAGED AUDIT WORK OR STRUCTURED AUDIT WHERE WE CAN PROVIDE THAT SPECIFIC TARGETED REVIEW OF A PROCESS AND INTERNAL
CONTROLS VERSUS THIS WAS THAT MORE OF A NARROW SCOPE. >> PERFECT. THANK YOU FOR THAT AND DO I HAVE A COUPLE OF QUESTIONS UNLESS SOMEONE ELSE IS IN QUEUE. AND THEN ALSO IN TERMS OF IT AS BEING A SINGLE SOURCE CONTRACT AND THE
DUPLICATE PAYMENTS, IN YOUR REVIEW, OF THE KIND OF SUPPLEMENTAL INFORMATION THAT CAME IN, WAS THERE ANY CONCERNS THAT YOU SAW FOR WHAT SHOULD'VE OR SHOULDN'T HAVE BEEN APPROVED? WHENEVER THERE IS SOMETHING LIKE THIS, IT JUST FEELS A LITTLE
ICY, LIKE IT 12349 BEST PRACTICE. I KNOW WE ARE STILL UNDER BUDGET FOR THE CONTRACT LISTED BUT IN TERMS OF THAT SECONDARY TO MAKE UP TO 177K, DID THAT INVOICE FEEL ROBUST? DID IT FEEL LIKE WHAT SHOULD'VE
BEEN CHARGED FOR? >> COMMITTEE MEMBER, CHAIR PAYNE, COMMITTEE MEMBER HOSBEIN, I THINK MANAGEMENT CAN PROBABLY BE A LITTLE MORE -- PROVIDE A LITTLE BIT MORE SPECIFICS ON THAT. OUR REVIEW WAS AT THE TAIL END OF WORK FOR ANY OF OUR WORK, WE ARE REVIEWING WHAT MANAGEMENT HAS DONE, WHAT MANAGE
MENT HAS CONDUCTED AND IF THERE IS NOT SUFFICIENT SUPPORTING DOCUMENTATION, SUPPORTING DOCUMENTATION TO KIND OF SUPPORT THAT WORK, I THINK THAT WE KNOW THAT AROUND THE USE OF THAT TIES INTO SOMETHING WE TALKED ABOUT AROUND THOSE COST CATEGORIES AND THE COST EXPENSES ARE PART OF THIS CONTRACT IN TERMS OF WHAT
THE CITY WAS PAYING FOR, IF IT WAS THAT FULL YEAR OR TARGETED SERVICES. IT WASN'T CLEAR IN REVIEWING KIND OF THE OTHER INVOICES WHAT WAS EXPECTED IN TERMS OF MAXING OUT THE STAFFING COST, THAT KIND OF STUFF. SO
KIND OF NOTE THAT AND THEN KIND OF THE NOTE THAT IN TERMS OF THAT FINAL INVOICE PAYMENT THAT WAS REVIEWED AND APPROVED BY MANAGEMENT THAT WAS KIND OF AS I SAID CHANCE TO NOTE THAT. IT WASN'T PART OF THE DETAILED REVIEW WE NOTED IN THE TABLE AS
WELL, SO JUST KIND OF NOTE I THINK EVERYTHING KIND OF PLAYS INTO, YOU KNOW, THEY HAVE, HAVING TO DO THAT AND NOTE THE USE OF THOSE, THAT -- APPLYING STUFF AFTER THE FACT WHICH CREATES MORE DIFFICULTY, MORE UNCERTAINTY, MORE TIME AND RESOURCES FOR EVERYONE INVOLVED.
>> YEAH, ABSOLUTELY. AND I KNOW THE COMMENT IT FEELSICY ISN'T SUPER HELPFUL. THERE IS REVERSE REPAYMENT AND THEN SUBMITTING ANOTHER TRUE INVOICE THAT WAS
KIND OF THE PATH CHO CHOSEN. I WANTED TO PROVIDE THAT COMMENT. THIS IS NOD AUDIT DIRECT BUT IT SOUNDS LIKE FROM THE CONTRACT OVERSLEW THAT WAS PROVIDED AND MANAGEMENT RESPONSE, THAT THIS WAS A SUCCESS, AND I THINK WITH ALL AUDITS, LIKE, THIS PROGRAM SEEMS
LIKE IT WAS A SUCCESS FOR 94 PEOPLE. I DON'T KNOW IF THERE IS A COMMENT ON, YES, THIS WAS CONSIDERED A SUCCESS AND A SUSTAINABLE PATH MOVING FORWARD OR IF THERE IS OTHER PIECES THAT WE SHOULD BE CONSIDERING AS, IN ADDITION TO THE DOCUMENTATION
AND KIND OF BEST PRACTICES AROUND THE PAYMENT. >> YEAH, SO THAT WAS OUTSIDE OF OUR REVIEW'S AUDIT, BUT IF SOMEONE IS AVAILABLE TO COMMENT ON WHAT YOU JUST SAID. >> PERFECT, THANK YOU.
>> CHAIN PAYNE, IF I'M GOING OUT OF SCOPE, PLEASE PULL ME BACK. >> CHAIR PAYNE, COMMITTEE MEMBER HOSBEIN, CAN YOU REPEAT YOUR QUESTION, PLEASE. >> I WAS JUST COMMENTING IN THE MANAGEMENT RESPONSE, THE CONTRACT SEEMED LIKE IT PROVIDED A SERVICE THAT WAS SUCCESSFUL
FOR THESE 94 PEOPLE, AND I WAS JUST CURIOUS ABOUT THE DEPARTMENT'S VIEW THAT THIS WAS A MODEL THAT SHOULD'VE BEEN USED, THAT MINUS THE POTENTIAL OTHER CONCERNS ON THE DOCUMENTATION AND ADMINISTRATION THAT THIS WAS A SUCCESSFUL PROGRAM, AND KIND OF MONEY, NOT MONEY WELL SPENT, BECAUSE ANY
SPENT MONEY SPENT TO HELP A SINGLE INDIVIDUAL IS ALWAYS IN MY MIND A GOOD THING. BUT I JUST WANTED TO KIND OF GET YOUR VIEW ON THIS PROGRAM GENERALLY. >> YEAH, I THINK IN GENERAL IT WAS SUCCESSFUL GIVEN THE TIME AND THE ISSUE WE WERE DEALING WITH. WE WERE TALKING ABOUT ENCAMPMENTS, DECOMMISSIONING
ENCAMPMENTS AND GETTING FOLKS INTO HOUSING AND TREATMENT. I THINK THE OTHER PIECE OF THIS WE NOTICED THIS PARTICULAR CONTRACT, WE NOTICED THE NUANCE AROUND HOMELESSNESS WHERE FOLKS WERE MOVING IN HERDS, AND TH SO THAT WAS ONE OF THE NUANCES WITH THIS PARTICULAR STRATEGY.
SO YES, WE THINK IT WAS SUCCESSFUL FOR THAT PARTICULAR TIME PERIOD BUT WE WERE ALSO LOOKING FOR OTHER STRATEGIES. >> THANK YOU FOR THAT. I APPRECIATE IT. >> MM-HMM. >> MEMBER THOMPSON. >> THANK YOU SO MUCH, CHAIR PAYNE. I JUST HAVE -- I DON'T KNOW WHO WOULD ANSWER THIS, WELL, IF YOU'RE, IF YOU'RE UP HERE, THANK
YOU. I WILL ASK MY SECOND QUESTION, WHICH WAS, IS SIMPLY IS THE DEPARTMENT OF HEALTH, IS THIS NORMAL TO SUBCONTRACT THESE KIND OF SERVICES OR IS THIS SOMETHING THAT WOULD BE TAKEN CARE OF DARE I SAY, LIKE IN HOUSE IF IT WAS MAYBE A SMALLER
ISSUE? HOW DOES THAT WORK IN TERMS OF THESE SUBCONTRACTS AND DO WE HAVE MORE THAN JUST THIS ONE OUT THERE? >> WELL, I'LL SPEAK IN GENERAL, CHAIR PAYNE. >> DID I USE THE RIGHT TERM, THIS SOLE -- >> SINGLE SOURCE? >> YES, THANK YOU. >> CHAIR PAYNE, COMMITTEE MEMBER THOMPSON, I'LL SPEAK IN GENERAL
TERMS IF YOU HAVE MORE SPECIFIC, I HAVE STAFF THAT CAN HELP. IN GENERAL, WE DON'T DO SINGLE SOURCE, AND IN THIS PARTICULAR CASE BECAUSE OF THE SITUATION, WROA WE DID. IT'S AN AVENUE THAT'S AVAILABLE TO US AS CITY MEMBERS AND DEPARTMENTS. WE WERE FOCUSING ON NATIVE AMERICAN
COMMUNITIES AND FOLKS THAT WERE IN HOUSE ENCAMPMENTS AND ALSO HAD SUBSTANCE ABUSE ISSUES AS WELL. SO IN THAT PARTICULAR SITUATION, THIS IN MY OPINION IT WAS, YOU KNOW, IT WAS VERY CLOSE TO WHERE IT WOULD FIT THE CATEGORY FOR SINGLE SOURCE, IN ADDITION. AGAIN, AS I MENTIONED
BEFORE, THE NUANCE FOR THIS PARTICULAR ONE IS THAT WE HAD INFORMATION AND WE REALIZED THAT FOLKS WERE MOVING IN HERDS, THEY WERE MOVING IN GROUPS OF FOLKS TOGETHER, AND THAT WAS KIND OF THE DIFFERENCE WITH THIS PARTICULAR ONE. >> THAT MAKES SENSE TO ME. THANK YOU. I DON'T NEED TO ASK
MY OTHER QUESTION. THANK YOU. >> MM-HMM. VICE CHAIR SINGLETON. >> THANK YOU. AND I THINK THIS IS MORE ON THE CONTRACTING SIDE, SO MAYBE A QUESTION FOR MR. KAMM. THANK YOU, CHAIR PAYNE. BUT, AND LET ME KNOW IF THIS IS BETTER HELD FOR OUR NEXT
AGENDA ITEM BUT I'M WONDERING IF IN REVIEWING THIS PARTICULAR CONTRACT AND WITH YOUR GENERAL AWARENESS OF OTHER CONTRACTING AND PROCUREMENT PROCEDURES ACROSS THE CITY, IF YOU'VE SEEN EXAMPLES OF CONTRACTS THAT LIKE IF THE CITY HAS DONE A GOOD JOB
IN OTHER SITUATIONS, OF CLEARLY STATING WHAT ACCEPTABLE OR ALLOWABLE AND DISALLOWABLE EXPENSES ARE OF LIKE CLEARLY STATING DOCUMENTATION, EXPECTATIONS, THAT COULD BE USED AND DEPLOYED THROUGHOUT THE ENTERPRISE. >> CHAIR PAYNE, COMMITTEE MEMBER
SINGLETON, GOOD QUESTION. I THINK AROUND THAT I DON'T WANT TO CALL OUT YOU KNOW SPECIFIC DEPARTMENTS AT THE TIME BUT I WILL SAY WE ARE DOING WORK RIGHT NOW WITH KIND OF SOME ONES THAT MIGHT BE GOOD EXAMPLES AND I'LL BE PRESENTING THEM IN THE FUTURE OF WHAT YOU KNOW MIGHT BE WORKING WELL OR KIND OF SOME OF
THOSE MODELS. YOU KNOW AS THEY KIND APPLY FOR THE AUDIT PLAN. WE HAVE A COUPLE CONTRACTING ONES WITH SOME DEPARTMENTS THAT WE ENGAGE IN AND I DON'T WANT AT THE MOMENT KIND OF AS WE HAVEN'T FINISHED OUR TESTING I HAVEN'T FINISHED REVIEW BUT THAT IS SOMETHING WE ACTIVELY LOOK FOR AS AUDIT AND ESPECIALLY THROUGH
OUR DISCUSSIONS AS WE HIGHLIGHT THROUGH THESE RECOMMENDATIONS AND KIND OF YOU KNOW THROUGH FUTURE WORK LIKE YOU KNOW WHAT IS KIND OF A GOOD MODEL, WHAT ARE THOSE EXPECTATIONS AND HOPE TO IN THE NEAR FUTURE BE ABLE TO HIGHLIGHT SOME OF THOSE OR FULLY
PROVIDE SOME OF THE THESE RECOMMENDATIONS. HERE WE KIND OF MADE GENERAL RECOMMENDATIONS FOR HEALTH DEPARTMENT AND YOU KNOW FOR THE ENTERPRISE, BUT WE HAVEN'T, YOU KNOW, COMPLETED TESTING ON SOME OF THE OTHER STUFF LATELY OR ALL THAT, BUT HOPE TO IN THE FUTURE AND I THINK THAT'S SOMETHING WE
ACTIVELY LOOK FOR AS AUDIT IS WE ALWAYS FOCUS ON -- A LOT OF TIMES PEOPLE FEEL LIKE WE'RE FOCUS ON WHAT'S NEGATIVE, WHAT'S BAD, WHAT'S NOT NECESSARILY WORKING WELL. BUT THROUGH OUR DISCUSSIONS WE'RE ALWAYS LOOKING TO SEE WHAT DID WORK WELL, WHAT DO YOU LIKE TO HIGHLIGHT, WHAT IS SOMETHING YOU FOUND SUCCESS
IN. >> AND THEN SO MY QUESTION, AND I WANT TO GIVE GRACE ON THIS ONE BECAUSE I WAS THERE KIND OF ON THE GROUND AS ALL OF THESE DYNAMICS WERE UNFOLDING IN OUR COMMUNITY, AND I THINK IT'S EASY
TO HIGHLIGHT YOU KNOW, MY SIX-FIGURE DOUBLE PAYMENT THAT'S A BIG MISTAKE. IT'S EASY TO HIGHLIGHT PROOCUREMENT OR CONTRACT MANAGERS AS HAVING SOME SORT OF FAILING IN THAT TYPE OF ERROR. BUT I THINK THAT IS DOWNSTREAM FROM HOW WE GOT INTO THIS CONTRACT AND IT'S MY UNDERSTANDING THAT THIS WAS A
BID OF A HANDSHAKE DEAL WITH THE MAYOR, AND YOU KNOW, KIND OF COMING BACK TO CITY HALL AND SAYING, MAKE THIS HAPPEN AND I THINK STAFF DID THEIR LEVEL BEST TO REALLY TRY TO BE RESPONSIVE TO THE MOMENT, AND I THINK THAT THAT CREATED THE CONDITIONS FOR
LOTS OF ERRORS JUST TO HAVE IT MOVING SO QUICKLY. AND I'M WONDERING YOU KNOW, IN EXECUTIVE MAYOR SYSTEM, WHERE A DECISION IS MADE TO SAY MAKE THIS HAPPEN, WHAT KIND OF CONTROLS ARE THERE TO SAY ACTUALLY THIS MIGHT BE
TOO RISKY TO JUST MAKE HAPPEN. LIKE IS THERE, DO WE SEE IN MANAGEMENT RESPONSE OF POLICY THAT DOES OUTLINE SOME SORT OF RISK ANALYSIS THAT ALLOWS PROFESSIONAL STAFF TO SAY, HEY, ACTUALLY, NO,.
[LAUGHTER] >> CHAIR PAYNE, AND AUDIT COMMITTEE MEMBERS, IN THE NEXT SEGMENT HERE WHEN I GO OVER SOME OF MY EARLY OBSERVATIONS I HAVE A RECOMMENDATION RELATED TO THAT. IT IS NOT ILLEGAL FOR A
CITY COUNCILMEMBER OR THE CITY COUNCIL BODY EOR FOR THE MAYOR TO EXPEDITE A CONTRACT LIKE THIS, BUT IT IS CERTAINLY NOT A BEST PRACTICE, AND SO ONE OF THE RECOMMENDATIONS THAT HAS COME OUT OF THE LEGISLATIVE AUDITOR'S
OFFICE AT THE STATE LEVEL IS TO NOT APPROVE CONTRACTS OR GRANTS, SPECIFICALLY GRANTS OFF OF THE LEGISLATIVE FLOOR. AND SO THE RECOMMENDATION IS TO LIMIT THAT, WHETHER THAT'S COMING FROM THE MAYOR HIMSELF OR FROM THE CITY
COUNCIL, AND I THINK THERE NEEDS TO BE SOME ADDITIONAL EXPLORES ON HOW THAT IS DONE BECAUSE STAFF WILL NEED TO HAVE THE DOCUMENTED PROCESSES AND POLICIES TO HAVE THE STRENGTH TO STAND BEHIND THAT. THE COUNCIL HAS AGREED THAT, YOU KNOW, WE
ARE NOT GOING TO MOVE FORWARD WITH THESE TYPES OF IMMEDIATE CONTRACTS. THE MAYOR HAS AGREED TO THAT. AND IF WE DO, HERE IS THE PROCESS THAT MUST BE FOLLOWED. AND SO AS FAR AS GETTING TO THE SPECIFICS OF HOW TO DO THAT, MY RECOMMENDATION
LIKE I SAY IN THE NEXT SEGMENT HERE, IS, IT GETS TO IT TO A LITTLE BIT BUT IT WILL STILL GENERAL ENOUGH THAT AUDIT CAN HELP FROM THE RISK IDENTIFICATION WHEN IT COMES TIME TO DEVELOP THE SPECIFICS OF THAT POLICY.
>> YEAH, I THINK IT WOULD BE REALLY GOOD FOR US TO ADOPT SOMETHING MORE FORMALLY BECAUSE I THINK IT DOES PUT PROFESSIONAL STAFF IN A REALLY TRICKY SITUATION BECAUSE IF THERE IS NOT ANYTHING FORMAL TO LEAN ON, THEN YOU'RE JUST KIND OF PUTTING YOUR OWN CAREER AT RISK BY
ACTUALLY ASKING THOSE TYPES OF QUESTIONS. >> RIGHT, YEP, AND LIKE I SAY, YOU'LL SEE HERE AAN ACTUAL RECOMMENDATION FOR LEGISLATION AND FOR AN ORDINANCE. >> AND THEN FOLLOW-UP QUESTION, AND I DON'T KNOW IF THIS IS FOR YOU, MR. TIMMERMAN OR FOR STAFF,
BUT YOU KNOW, I ACTUALLY WANT TO BE AN ADVOCATE FOR THESE TYPES OF INNOVATIVE APPROACHES THAT MAYBE HAVE A HIGHER RISK PROFILE BUT ARE MORE RESPONSIVE TO COMMUNITY NEED. BUT I'D LIKE THERE TO BE MORE CHECKPOINTS IN BETWEEN, BETWEEN, YOU KNOW,
MAKING THE HANDSHAKE DEAL AND PAYING THAT FIRST INVOICE, LIKE, HOW DO WE CLOSE THAT FEEDBACK LOOP SO THAT WHEN WE ARE TRYING TO DETERMINE IS THIS THE BETTER WAY TO DO IT VERSUS THE, YOU KNOW, CONTINUUM OF CARE MODEL LED BY THE COUNTY, HOW DO WE
CLOSE THE FEEDBACK LOOP TO KNOW THAT THIS IS ACTUALLY A MORE EFFECTIVE METHOD THAT WE SHOULD ACTUALLY DOUBLE DOWN ON THIS OR IS THERE AN OPPORTUNITY TO SEE MAYBE THERE ARE SOME PROBLEMS WITH THESE START-UP COSTS, MAYBE THIS ISN'T WORKING OUT AS WE INTENDED, DO WE HAVE CONTROLS
BUILT IN TO BE ABLE TO CUT OFF A CONTRACT MIDSTREAM ALREADY IN OUR CURRENT POLICIES OR IS THAT SOMETHING THAT NEEDS TO BE DEVELOPED OR EVEN STRENGTHENED FOR THESE SINGLE SOURCE CONTRACTS? I'M NOT SURE IF THERE IS AN ANSWER FOR THAT OR NOT. >> I THINK EXPLORES' NEEDED ON HOW TO DEVELOP THE CONTROLS FOR
THAT. YOU KNOW, TO YOUR QUESTION, THAT IS, IS PRETTY BROAD. I WILL SAY THAT IN THE SECOND TO NEXT SEGMENT, I'M GOING TO BE TALKING ABOUT SOME RESOURCE NEEDS BY THE OFFICE OF CITY AUDITOR. AND THE INVESTMENT IN THOSE WILL HELP US
LOOK AT SOME PROGRAM EVALUATION WHERE WE CAN TAKE IDEAS FROM COUNCILMEMBERS AND REALLY DIVE DEEP INTO THEM. SIMILAR TO WHAT THE, AGAIN, THE OFFICE OF LEGISLATIVE AUDITOR DOES WITH THEIR PROGRAM EVALUATION DIVISION. SO THAT IS ONE OF
THOSE TOPICS THAT COULD END UP ON THE LIST FOR OUR OFFICE TO REVIEW. BUT CERTAINLY WE CAN ACT AS AN ADVISOR IN THAT ROLE AS WELL. >> AND THEN FINAL QUESTION, THIS MIGHT BE FOR HEALTH STAFF, HAVE WE DONE ANY RETROSPECTIVEIVE ON THIS CONTRACT TO DO A
COMPARISON OF, YOU KNOW, THE COUNTERFACTUAL, IF WE TOOK A MILLION DOLLARS AND FUNNELED THAT TO THE COUNTY FOR THEIR CONTINUUM OF CARE SERVICES, WOULD WE HAVE BEEN MORE EFFECTIVE, LESS EFFECTIVE. IT
WOULD BE GOOD TO SEE AS MUCH OF AN APPLES TO APPLES COMPARISON, BECAUSE MY RECOLLECTION WAS THIS MILLION DOLLARS WAS SUPPOSED TO BE START-UP COSTS FOR A NEW MODEL, AND AFTER THAT MILLION DOLLAR CONTRACT ENDED, I THINK THE EXPECTATION WAS THAT IT WAS A NEW SUCCESSFUL MODEL THAT WOULD BE SELF-SUSTAINING. I'M NOT SURE IF THAT'S WHAT
ULTIMATELY PLAYED OUT IN THIS CONTRACT, AND THEN THE QUESTION IS WOULD IT HAVE BEEN WISER FOR US TO PARTNER WITH THE COUNTY OR WAS THIS TRULY A GREAT INOVATION THAT WE SHOULD BE CELEBRATING.
>> CHAIR PAYNE, I THINK IT WAS AN INNOVATIVE APPROACH TO A SPECIFIC PROBLEM, AND WHAT WE DO HAVE SOME TAKEAWAYS FROM THIS EXPERIENCE THAT WE WILL USE GOING FORWARD. I THINK THE IDEA OF HOUSING AND SUPPORTIVE SERVICES IS NOT NOVEL, BUT THE
IDEA AROUND HURTING WAS NOVEL FOR US. IT WAS SOMETHING UNIQUE AND DIFFERENT. WE HAVE COLLABORATIVE OPPORTUNITIES WITH THE COUNTY THAT WE CURRENTLY WORK ON, WE'RE LOOKING TO STRENGTHEN THOSE RELATIONSHIPS WITH THEM GOING FORWARD. THE COUNTY HAS A WHOLE SET OF THEIR
OWN PRIORITIES THAT THEY HAVE AROUND THE CONTINUUM OF CARE FOR HOMELESSNESS AND THEIR RESPONSE WITH OPIOIDS AND SO WE WORK CLOSELY WITH THEM ALREADY AND SO WE TAKE LESSSONS FROM THE MEALX AND WE'LL PUT THEM FORWARD TO OUR OTHER STRATEGIES GOING FORWARD, SO I'M NOT -- I DON'T THINK THERE WAS WHETHER WE
SHOULD'VE GIVEN IT TO THEM OR PROCEEDED WITH THE, WITH THE INITIATIVE. I THINK THERE IS LESSONS LEARNED THAT WE CAN TAKE WITH OUR COLLABORATIONS GOING FORWARD. >> YEAH BUT LIKE THE QUESTION IS, SHOULD WE APPROPRIATE ANOTHER MILLION DOLLARS FOR A SOLE-SOURCE CONTRACT WITH HELIX BECAUSE IT WAS REALLY EFFECTIVE
AND WE LEARNED THAT THROUGH THIS AND IT'LL BE A MORE WREFINED PROCESS AFTER THIS AUDIT AND YOU KNOW, IMPROVING ORCONTRACTING PROCEDURES OR LIKE WHAT, WHAT SHOULD WE LEARN FROM THIS? >> YEAH, THAT'S WHAT I'M SAYING, THE THINGS THAT WE TOOK AWAY FROM THIS EXPERIENCE WAS THAT THE HERDING WORKS, PEOPLE DO
MOVE IN GROUPS, WHETHER OR NOT WE WORK SPECIFICALLY WITH HELIX OR NOT, THAT LESSON LEARNED AND HOW WE ENGAGE WITH THE COMMUNITY, HOW WE ENGAGE WITH THIS PARTICULAR POPULATION, THAT WILL STAND OUT. AND WE WILL SEE THAT GOING FORWARD. THE EVALUATION OF
WHETHER WE SHOULD BE WORKING SPECIFICALLY WITH HELIX GOING FORWARD, THAT IS SOMETHING WE HAVE TO THINK ABOUT BUT WE HAVE OTHER STRATEGIES WE ARE FOCUSED ON HOW, ONE WORKING CLOSER WITH THE COUNTY AND REALLY MOBILIZING STRATEGIES WE HAVE INTO THE COMMUNITY. >> OKAY. THANK YOU FOR THAT.
NOT SEEING ANY OTHER QUESTIONS, SO I WILL DIRECT THE CLERK TO RECEIVE AND FILE THIS REPORT AND MOVE TO DIRECT STAFF TO PUBLISH THE REPORT. ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THAT CARRIES. AND UP NEXT, ITEM
5 IS A PRESENTATION FROM THE CITY AUDITOR ON PRELIMINARY OBSERVATIONS RELATED TO CITY ENTERPRISE RISK MANAGEMENT AND CONTRACT MANAGEMENT AND OVERSIGHT. I WILL INVITE CITY AUDITOR ROBERT TIMMERMAN TO GIVE
THAT REPORT. WELCOME. >> ALL RIGHT, THANK YOU, CHAIR PAYNE, AUDIT COMMITTEE, DIRECTOR
POUDYAL AND I WERE TALKING, AND WE PROMISED TO GET YOU OUT BY 12:15, SO WE'RE GOING TO BE QUICK ON THESE NEXT FEW SLIDES. SO I'VE BEEN IN THE ROLE NOW FOR THREE MONTHS, AND JUST TO STEP BACK A LITTLE BIT, I STARTED IN
FEBRUARY, AND I WANTED TO TAKE THE FIRST THREE TO SIX MONTHS TO MAKE OBSERVATIONS, NOT TO MAKE ANY DRASTIC CHANGES, BUT TO ALSO MAKE SURE THE WORK OF THE OFFICE CONTINUES. AND IN THOSE THREE MONTHS, WE HAVE TAKEN ON A NUMBER OF THINGS. I DO
APPRECIATE THIS OPPORTUNITY. I'M GOING TO OUTLINE SOME OF MY EARLY OBSERVATIONS. I AM ALSO GOING TO OUTLINE MY VISION FOR THE OFFICE OF CITY AUDITOR. I ISSUED A FEW MEMOS OVER THE
WEEKEND. I THINK EACH OF YOU RECEIVED THESE VIA EMAIL. THEY WILL ALSO BE ADDED TO THE RCA FILE, SO THEY ARE MADE PUBLIC WITH THE AGENDA. THE FIRST ONE IS THIS EARLY OBSERVATIONS E-MAILS, AND IT DOES TIE INTO SOME OF THE THINGS WE JUST TALKED ABOUT WITH THE HELIX
CONTRACT THAT WAS REVIEWED. I WANT TO MAKE CLEAR THAT THESE OBSERVATIONS AS WELL AS THE RECOMMENDATIONS THAT I'M TALKING ABOUT TODAY DO NOT STEM FROM AN ASSURANCE AUDIT. THEY ARE NOT IN RESPONSE TO ACTUAL AUDIT FINDING BUT THEY ARE IN RESPONSE TO OBSERVATIONS THAT I HAVE
MADE, AND THEY ARE IN RESPONSE TO CONVERSATIONS THAT I HAVE HAD WITH THE HIGHEST LEVELS OF THE ADMINISTRATION AS WELL AS THE CITY COUNCIL, AND SO I AM CONFIDENT IN THE PRIORITIES THAT I'M OUTLINING FOR YOU TODAY. AND THESE ARE PRIORITIES FOR MY OFFICE. THESE ARE THINGS THAT
YOU WILL SEE ARE ALSO PARALLEL THAT SHOULD BE PRIORITIES WITHIN THE ADMINISTRATION, BUT THESE ARE PRIORITIES FOR THE AUDIT WORK THAT THE CITY AUDITOR AND THE STAFF DO, AND WE TAKE INTO ALL OF OUR AUDITS IN THE COMING
YEARS. THE FIRST PRIORITY IS, IT IS CLEAR THAT THERE IS INSUFFICIENT ENTERPRISE RISK MAMMENT AND INTERNAL CONTROL STRUCTURE IN THE CITY OF MINNEAPOLIS. I'VE HEARD THIS FROM COUNCILMEMBERS. I'VE HEARD THIS FROM MEMBERS IN THE EXECUTIVE LEADERSHIP TEAM IN THE
MAYOR'S OFFICE. THE CITY CURRENTLY LACKS A COHESIVE AND SUFFICIENTLY ROBUST FRAMEWORK FOR ENTERPRISE RISK MANAGEMENT, AND AND THERE ARE NO FORMALIZED CITY STRUCTURE TO IDENTIFY, ASSESS, MANAGE, AND MONITOR RISK AND ENTERPRISE LEVEL. NORMALLY
IN AN OCEAN THERE IS GOING TO BE AUDIT -- AN ORGANIZATION, THERE IS GOING TO BE AUDIT THAT ACTS AS AN INDEPENDENT AND OBJECTIVE SERVICE TO LOOK AT THESE THINGS, AND THERE IS A SISTER TO THAT IN THE ADMINISTRATION OR IN MANAGEMENT THAT ESTABLISHES
INTERNAL CONTROLS, IT HOLDS UNITS, DIVISIONS, DEPARTMENTS, INDIVIDUALS, ACCOUNTABLE FOR FAILURES OF FOLLOWING INTERNAL CONTROLS: AND IT WORKS CLOSELY WITH AUDIT. IT'S A COLLABORATIVE EFFORT. THE INTERNAL CONTROL ENVIRONMENT IN
THE CITY OF MINNEAPOLIS IS INCONSISTENT ACROSS ALL DEPARTMENTS. THERE IS INSUFFICIENT FORMALIZATION TO DOCUMENTATION AND MONITORING OF KEY CONTROLS. I WON'T GO SO FAR TO SAY THAT THE TONE OF THE TOP
IS LACKING. Y W I WILL SAY THE CITY IS MAKING STRIDES WITH TONE AT THE TOP AS I WILL GET INTO WHEN WE TALK ABOUT INVESTMENTS IN THE OFFICE OF THE CITY AUDITOR. AND I DO THINK THERE HAS BEEN SOME MOVEMENT WITHIN THE ADMINISTRATION AND ACKNOWLEDGMENT OF THESE
ENTERPRISE RISK MANAGEMENT SHORTFALLINGS. THERE HAS BEEN SOME TRAININGS THAT HAVE BEEN DEVELOPED AND SOME WORK THAT IS IN PROGRESS, SO I DO WANT TO RECOGNIZE THAT THERE IS BROAD UNDERSTANDING OF SOME OF THESE SHORTCOMINGS, AND NOW IT'S
MOVING TO THE NEXT STEP ON HOW DO WE ADDRESS THEM. SO AS FAR AS RECOMMENDATIONS, ONE OF THE THINGS THAT I THINK CITY COUNCIL CAN DO AND I'LL STEP BACK JUST FOR ONE SECOND. THE AUDIT COMMITTEE CURRENTLY RECEIVES AND
FILES ALMOST EVERYTHING THAT COMES FROM MY OFFICE. ONE THING I WANT TO LOOK AT GOING FORWARD IS MAYBE ANOTHER MECHANISM FOR MOVING SOME OF THESE THINGS FORWARD TO ANOTHER CITY COUNCIL COMMITTEE OR TO THE CITY COUNCIL BODY AS A WHOLE. AND SO
ALTHOUGH THAT'S NOT IN PLACE RIGHT NOW, THIS IS A, A RECEIVE AND FILE TYPE OF PRESENTATION, BUT THESE RECOMMENDATIONS ARE THE TYPE OF THING THAT SHOULD BE ELEVATED THEN TO THE COMMITTEE OF THE WHOLE, TO ANOTHER CITY COUNCIL COMMITTEE. AND SO I'LL
WORK WITH PRESIDENT PAYNE AND VICE PRESIDENT CHUGHTAI ON MOVING THESE FORWARD. BUT THE RECOMMENDATION HERE TO ADDRESS ENTERPRISE RISK MANAGEMENT IS ADOPTING THE, WHAT IS COLLOQUIALLY KNOWN AS THE GREEN
BOOK. THIS IS THE STANDARDS FOR INTERNAL CONTROL IN THE FEDERAL GOVERNMENT. THIS IS A BOOK PUT OUT BY THE USGAO, AND IT IS THE COMPANION FOR WHAT IS KNOWN AS THE YELLOW BOOK, GOVERNMENT AUDITING STANDARDS. WHEN THE
CITY COUNCIL RECENTLY MADE SOME ADJUSTMENTS TO THE AUDITOR'S OFFICE, WE ADDED THAT IN ADDITION TO IIA RED BOOK STANDARDS THAT WE ARE GOING TO ALSO USE GOVERNMENT AUDITING STANDARDS. THESE ARE MORE
SPECIFIC TO THE WORK THAT WE DO. IN MY OPINION THE IIA RED BOOK STANDARDS ARE GREAT. THEY'RE ROBUST. BUT THEY ARE WRITTEN FOR THE PRIVATE SECTOR AND WE'RE KIND OF A, YOU KNOW, A FOOTNOTE. SO THESE GO ALONG TOGETHER BECAUSE THE YELLOW BOOK,
BASICALLY AUDITS THE INTERNAL CONTROLS OF THE GREEN BOOK. SO IF WE'RE ABLE TO FORMALLY ADOPT THE GREEN BOOK, AND I WILL SHARE THE STATE GOVERNMENT HAS DONE THIS, THEY HAVE ADOPTED THE U.S. GOVERNMENT'S INTERNAL CONTROLS, AND I THINK THE CITY SHOULD DO
THE SAME, I THINK THAT WILL HELP WITH SOME OF THE THINGS THAT I'M TALKING ABOUT. ANOTHER RECOMMENDATION IS TO WORK ON AN ORDINANCE, AND WITH THIS ONE I SUGGEST IT'S WORKED ON COLLABORATIVELY WITH THE ADMINISTRATION, TO DEVELOP AND
IDENTIFY WAY TO MAINTAIN AN E RM FRAMEWORK. THIS OFFICE HAS RECOMMENDED WITH OUR RISK ASSESSMENT THREE YEARS IN A ROW NOW THAT THE CITY LOOK INTO AN OFFICE I'M SORRY, AN ERM EXECUTIVE OFFICER OR ASSIGN THE
FUNCTIONS OF AN ERM OFFICER TO EXISTING LEADERSHIP. WHEN WE TALK ABOUT TONE AT THE TOP T-- IT NEEDS AT THE TOP. IT NEEDS TO BE AT MAYBE THE DCOO LEVEL. AND THAT IS THE LEVEL OF
IMPORTANCE THAT INTERNAL CONTROLS PLAY IN A GOVERNMENT ORGANIZATION THIS SIZE. WITH THIS ORDINANCE, IT SHOULD LOOK AT ASSIGNING KEY DEPARTMENT PERSONNEL TO PARTICIPATE. AGAIN, WE'RE IN A SILOED ENVIRONMENT. WE NEED TO BREAK THAT DOWN THROUGH GOVERNANCE.
AND THEN THIS GROUP SHOULD ALSO REPORT GOVERNANCE AND ERM UPDATES TO THE COUNCIL AND THE AUDIT COMMITTEE. FINALLY, THEY WOULD INTEGRATE ERM DISCUSSIONS? TO STRATEGIC -- INTO STRATEGIC PLANNING, OPERATIONAL DECISION MAKING AND THE CITY'S ANNUAL BUDGET PROCESS. SECOND PRIORITY
WE JUST HEARD ABOUT IT WITH THE HELIX CONTRACT. IN THE LAST THREE MONTHS, WE HAVE ALSO LOOKED AT THREE CONTRACTS FROM NSD THAT HAD SIMILAR PROBLEMS, AND IT IS ABUNDANTLY CLEAR THAT THE CONTRACT OVERSIGHT ACROSS
DIFFERENT DEPARTMENTS WITHIN THE CITY IS LACKING. AGAIN, I WANT TO GIVE CREDIT WHERE CREDIT IS DUE. THE CITY ATTORNEY'S OFFICE IS WORKING OR HAS CRATED TRAINING TO HELP FOLKS WITHIN THE ADMINISTRATION UNDERSTAND
HOW TO OVERSEE A CONTRACT. BUT I WILL SHARE, ONE OF THE, THE FAILINGS IS THE AIM AS THE FEEDING OUR FUTURE SCANNAL, AND THAT IS -- SAME AS THE FEEDLING OUR FUTURE SCANDAL WHICH IS NOBODY DOES SIGHT VISITS. IF WE GO OUT ON SITE AND WE SEE NATD
THIS -- THAT THIS CONTRACTOR IS BEING PAID A MILLION DOLLARS TO DO WHAT THEY HAVE AGREED TO DO IS AND THERE IS NO ACTIVITY HAPPENING, WE NEED TO ADDRESS THAT EARLY. NOT WAIT FOR AUDIT TO COME LOOK AT IT AFTER THE FACT. SO AGAIN, I SAY THAT A BIT STERNLY HERE, BUT WE HAVE TO IMPROVE OUR CONTRACT OVERSIGHT
IN THIS CITY, AND AUDIT IS WILLING TO HELP WITH THAT FROM AN ADVISORY SERVICE. SO THAT CITY ATTORNEY'S TRAINING, WE WEIGHED IN ON THAT, WE MADE SURE THAT THERE WAS INFORMATION RELATED TO INTERNAL CONTROLS, GOOD GOVERNANCE, GOOD OVERSIGHT, AND SO AGAIN, YOU'LL SEE A THEME
THAT THE OFFICE IS REALLY TRYING TO ACT IN AN ADVISORY SERVICES ROLE WITH SOME OF THESE THINGS. AS I MENTIONED, THERE IS A BIT OF A RECURRING ISSUE WITH
CONTRACTS OR GRANTEES THAT ARE PROPPED BY EXECUTIVE LEADERSHIP OR BY INDIVIDUAL CITY COUNCILMEMBERS. THIS IS NOT A, AN ACTIVITY THAT IS SUSTAINABLE. IT IS VERY RISKY. WE NEED TO BE AWARE OF THAT. THAT SAID, THERE
ARE GOING TO BE INSTANCES LIKE HELIX WHERE WE NEED AN IMMEDIATE RESPONSE. SO WE NEED TO HAVE POLICIES AND PROCEDURES IN PLACE AS A CITY TO SAY, OKAY, THIS CAN MOVE FORWARD BECAUSE IT CHECKS ALL OF THE BOXES, OR, I'M SORRY,
THIS IS NOT GOING TO MOVE FORWARD, AND LIKE YOU SAID, CHAIR PAYNE, THAT GIVES THE STAFF SOME LEVERAGE TO BE ABLE TO SAY, YOU KNOW WHAT? WE'VE ALL AGREED TO THIS POLICY, WE'RE FOUGHT GOING TO -- NOT GOING TO DO THIS. ALL RIGHT. SO
CLEARLY THE ONGOING MEDIA COVERAGE, THE PUBLIC INQUIRIES, QUESTIONS FROM OTHER OVERSIGHT BODIES, INCLUDING COUNTY AUDITO, THE FEDERAL ATTORNEY'S OFFICE, I MEAN, WE'RE GETTING QUESTIONS
FROM ALL SORTS OF ANGLES ON SOME OF THESE CONTRACTS. THAT IS NOT SOMETHING THAT IS HELPING REBUILD TRUST IN THE CITY, AND WHEN I TOOK ON THIS JOB, I THINK ONE OF THE MOST IMPORTANT THINGS THAT I COMMITTED TO WAS HELPING REBUILD TRUST. SO I'M GOING TO POINT OUT SOME OF THESE DIFFICULT THING SAID. WE'RE
GOING TO ESCALATE THEM TO THE COUNCIL. WE'RE GOING TO TALK ABOUT THEM, BUT WE HAVE TO ADDRESS THEM TO HELP REBUILD PUBLIC TRUST. SO THE RECOMMENDATIONS I HAVE RELATED TO THIS ARE COMING UP WITH A WAY TO PROHIBIT THE ADVANCEMENT OF
NAMED CONTRACTS OFF OF THE COUNCIL FLOOR WITHOUT FULL COMPREHENSIVE STAFF REVIEW, INCLUDING THE FINANCE AND PROPERTY SERVICES DEPARTMENT, THE CITY ATTORNEY'S OFFICE, RESPONSIBLE OPERATIONAL DEPARTMENTS, AND I SHOULDN'T SAY JUST THE COUNCIL FLOOR BECAUSE
THAT'S ALSO LIKE WE SAW WITHIN THE ADMINISTRATION, AND JUST HAPPENING OPERATIONALLY. SO WE NEED TO SEE THAT THE EXISTING POLICIES ARE UPDATED TO HELP WITH THAT. AND THEN TRAINING CONTRACT MANAGERS LIKE I SAY,
THIS IS ONGOING. BUT WE NEED TO MONITOR CONTRACT MANAGER PERFORMANCE TO ENSURE THAT PROVISIONS ARE FOLLOWED. WHEN WE'RE GETTING BILLS FOR $800 AT THE GROCERY STORE FOR AN NDS CONTRACT, THAT MIGHT MAKE SENSE.
MAYBE THIS CONTRACTOR IS HELPING FAMILIES THROUGH FOOD INSECURITY. BUT WHEN ALL WE'RE GETTING IS A RECEIPT, AND THEIR CONTRACT SAYS YOU NEED TO IDENTIFY WHICH FAMILIES YOU SERVICED, YOU NEED TO IDENTIFY WHAT DATES YOU SERVICE, AND WE'RE GETTING NONE OF THAT
DETAIL, THAT COMES DOWN TO CONTRACT MANAGER TRAYONING AND CONTRACT MANAGER OVERSIGHT OF THE CONTRACT. BUT ALSO OVERSIGHT OF THE CONTRACT MANAGER THEMSELVES. ALL RIGHT, SO I WILL PAUSE BECAUSE THAT
BRINGS US TO THE NEXT AGENDA ITEM, SO IF THERE IS ANY QUESTIONS ON THAT, I WOULD BE HAPPY TO TAKE THEM. >> MEMBER THOMPSON. >>> SORRY, I HAVE NO QUESTIONS I . I JUST WANTED TO -- THANK YOU, CHAIR PAYNE. I WANTED TO
THANK YOU FOR THAT WORK BECAUSE IT SHINES A LIGHT ON A LOT OF THINGS. THANK YOU. >> YOU'RE WELCOME. >> I WAS JUST GOING TO MENTION, I THINK IT'S REALLY WISE TO PUT MORE CONTROLS IN, ESPECIALLY COMING FROM ELECTED MEMBERS. I
THINK THERE'S A INHERENT POWER DYNAMIC WHEN ANY ELECTED MEMBER IS MAKING A REQUEST. AND I'M WONDERING IF WE COULD ADD SOME DETAIL AS WELL BECAUSE THIS CAME UP DURING THE NSD CONTRACTS WHICH DID GO THROUGH AN INFORMAL BLIND RFP PROCESS, A BEST
PRACTICE, BUT EVEN STILL AS IT CAME TO A DECISION ON CITY COUNCIL, THE CONTRACTS WEREN'T FINALIZED YET, AND I'LL EVEN CONNECT THIS TO THE HELIX CONTRACT BECAUSE I REMEMBER VOTING FOR THAT AND I REMEMBER GOING YEAH, THERE IS A REAL URGENT NEED HERE BUT IT WAS HARD TO TELL DID HEELX GO THROUGH A FORMAL PROCESS, OR NOT, DID NSD
GO THROUGH A FORMAL PROCESS OR NOT. AND IT'S -- R LIKE THOSE DETAILS EMERGED YOU DISCOURSE, RATHER THAN LIKE YOU KNOW, HIGHLIGHTED WITH BRIGHT SIGNALS IN RCA SAYING THIS IS A SINGLE SOURCE CAUTION VERSUS THIS IS A,
YOU KNOW, DOUBLE BLIND RFP, YOU KNOW, IT'S BEEN THROUGH THIS PROCESS. I DON'T THINK THERE IS ANY CONSISTENCY IN HOW THOSE ACTIONS ARE BROUGHT FORWARD TO CITY COUNCIL, AND I THINK THAT AS PART, PART OF OUTLINING A NEW POLICY OR PROCEDURE IN THIS SPACE, THERE SHOULD DEFINITELY
BE MORE PROACTIVE TRANSPARENCY WHEN IT COMES TO THOSE TYPES OF WAYS THAT WE ARRIVE AT A VOTE. >> YEAH,CHAIR PAYNE, I THINK THAT'S A GREAT POINT, AND I THINK THAT HAVING AN EXECUTIVE ERM MANAGER IN PLACE CAN HELP
BUILD AND HOLD PEOPLE ACCOUNTABLE FOR ARE THAT. WHAT IS GETTING PUT INTO THE RCAs, BUT ALSO HAVING THAT, IT GIVES YOU THAT LEADERSHIP AT THE HIGHEST LEVEL THAT IS OVERSEEING THIS PROCESS TO MAKE SURE IT'S CONSISTENT. SOY HEALTH IS DOING THE SAME THING THAT NSD IS, AND
NSD IS DOING FRANKLY THE SAME THING THAT THE POLICE DEPARTMENT IS BECAUSE WE NEED TO LOOK AT ALL OF OUR DEPARTMENTS FROM THE PERSPECTIVE THAT THEY FOLLOW GOOD, INTERNAL CONTROL. THEY HAVE GOOD GOVERNANCE, AND WE'RE
JUST NOT SEEING THAT RIGHT NOW. THERE ARE GOOD THINGS HAPPENING ACROSS DIFFERENT DEPARTMENTS. AGAIN, NSD WITH SOME OF THEIR CONTRACTS, THEY'VE GOT SOME FOLKS IN PLACE NOW THAT ARE BRINGING THINGS TO US. THEY'RE SAYING THIS DOESN'T LOOK GOOD. SO I THINK THERE'S SOME CHANGES MOVING IN THE RIGHT DIRECTION,
BUT TO YOUR POINT, YES, I THINK THERE NEEDS TO BE THAT LEVEL OF OVERSIGHT. >> MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE, YES, THANK YOU FOR THIS. AND I JUST, DEFINITELY FELT THE ERM PIECE. I THINK WE'VE BEEN UP HERE,
WHAT, TWO YEARS IN, AND I THINK EVERY SINGLE REPORT WE SEE IS OKAY, WHAT'S THAT OWNERSHIP GOING TO LOOK LIKE ON THAT DEPARTMENT. AND SOME DEPARTMENTS, HERE'S WHO'S GOING TO BE IN CONTROL, HERE'S WHO'S GOING TO DO THIS, HERE'S WHO'S GOING TO DO THAT THIS AND OI IT'S VERY WELL
OUTLINED. AND OTHER TIMES IT'S AUDIT WILL COME IN THREE YEARS. I APPRECIATE THAT. I LOOK FORWARD TO MORE CONVERSATIONS ON THIS, AND I DO THINK THAT DYNAMIC BETWEEN ELECTED VERSUS PROFESSIONAL STAFF, I SEE
ABSOLUTELY THE NEED. I ALSO SEE SOMETIMES THE CITY STAFF WAITING TILL SOMEONE ELSE IS IN OFFICE POTENTIALLY, AND I THINK THERE IS KIND OF A BALANCE, AND I HAVE HEARD THINGS SAID EVEN IN VERY
FORMAL SETTINGS ABOUT OH, WE'LL JUST WAIT OUT THIS TERM OR WE'LL WAIT OUT TILL THE NEXT FOLKS, SO I THINK THERE IS A, I'M SITTING HERE AS A COMMUNITY MEMBER ON THIS PANEL OF ENSURING THE PROCESSES ALSO HAVE REQUIRED TIMELINES AND KIND OF OWNERSHIP
TO THE CITY; AND I THINK UNFORTUNATELY SOMETIMES WE'RE RELIANT ON OUR ELECTED OFFICIALS TO KEEP PUSHING THAT, BECAUSE WE'RE NOT SEEING THAT JUST ATTENTION TO THOSE PRIORITIES. SO COMPLETELY, I'M A POLICY
GEEK, SO, YES, PLEASE, BUT HOW DO WE MAKE SURE THE TWO LIVE UP TO THAT NEED FOR THE CITY. >> YEAH, TOTALLY UNDERSTOOD. CHAIR PAYNE, AND AUDIT COMMITTEE, I THINK THAT IS EXACTLY WHAT I WANT TO DO GOING
FORWARD. I WANT TO UPDATE SOME OF OUR TEMPLATES SO THAT FROM THE AUDIT PERSPECTIVE WHEN WE ARE SEEKING MANAGEMENT RESPONSE, WE ARE GETTING CONSISTENT RESPONSE. WE CANNOT TELL MANAGEMENT HOW TO RESPOND. THEY MIGHT BE SNARKY, THEY MIGHT BE VERY PROFESSIONAL, I MEAN, I'VE
SEEN IT ALL, BUT IF THEY ASK, I WILL CERTAINLY EXPLAIN TO THEM WHAT A GOOD RESPONSE LOOKS LIKE. BUT THROUGH OUR TEMPLATES WE CAN CERTAINLY ASK THEM, YOU KNOW, WHO ARE YOU ASSIGNING THIS TO. WHAT IS YOUR CORRECTIVE ACTION, AND WHEN DO YOU THINK THIS WILL BE DONE. THAT SAID, THEY MAY
NOT PROVIDE THAT BUT IF WE PROVIDE THEM THAT TEMPLATE, I THINK WE'LL BE MORE CONSISTENT IN GETTING THAT. >> MY LAST THOUGHT TOO IS HOW DO WE CLOSE THAT FEEDBACK LOOP YOU KNOW, IN MY TIME ON AUDIT AND, I STARTED ON AUDIT IN MY FIRST TERM AND THEN I ROLLED OFF UNDER
THE NEW GOVERNMENT STRUCTURE AND THEN I CAME BACK ON AS CHAIR THIS TERM, I'VE SEEN A NUMBER OF AUDITS THAT HAVE HIGHLIGHTED, YOU KNOW, ANYTHING FROM SOMETHING MINOR TO SOMETHING EGREGIOUS, AND I'VE NEVER REALLY SEEN A CONNECTION POINT TO CONSEQUENCES, RIGHT? AND IT'S LIKE, YOU CAN SEE A MANAGEMENT
RESPONSE AND SOMETIMES THE RESPONSE IS, AGAIN, VERY PROFESSIONAL, AND YOU SEE THOSE RESPONSES GET RESOLVED. WE JUST SAW A NUMBER OF ISSUES GET RESOLVED TODAY FOR THE PROPERTY AND EVIDENCE AUDIT. BUT WHEN THERE IS NO LIKE ADEQUATE
MANAGEMENT RESPONSE OR THE ISSUES HANG THERE UNRESOLVED, I HAVEN'T SEEN CONSEQUENCES ONE WAY OR THE OTHER. AND I'M WONDERING HOW WE CAN CREATE MORE CONSEQUENCES AND ACCOUNTABILITY WHEN IT COMES TO IDENTIFYING SOME OF THESE CONTROL PROBLEMS,
THESE RISK PROBLEMS 72 YEAH, CHAIR PAYNE, I THINK THAT WITH AN ENTERPRISE EXECUTIVE THAT IS RESPONSIBLE FOR THIS, WE CERTAINLY PUT AN INDIVIDUAL IN THAT ROLE WHERE THEY ARE HELD
RESPONSIBLE FOR THESE TYPES OF ACTIVITIES IF THERE IS AN AUDIT AND THAT AUDIT HAS RECOMMENDATIONS, ULTIMATELY, THEY'RE RESPONSI RESPONSIBLE FOR THE CORRECTIVE ACTIONS. THEY'RE GOING TO DELEGATE RESPONSIBILITIES TO THE DEPARTMENTS. BUT IT'S THEIR
JOB, THEIR STAFF'S JOB, THEIR PER PURVIEW THEN TO MAKE SURE THAT'S HAPPENING. I'M NOT SURE THAT THAT'S HAPPENING. AUDIT, FRANKLY IF YOU'RE CONSIDERING THE YELLOW BOOK AND THE GREEN BOOK, AUDIT'S ROLE IS NOT TO MONITOR. WE DO LOT OF MONITORING. YOU SAW IT THIS
MORNING. WE BRING IN FOLKS THAT STILL SOME AUDIT FIND GEDS FINDINGS AND THAT'S FINE, WE'LL ALWAYS DO THAT BECAUSE WE WANT TO MAKE SURE THESE THINGS ARE BEING TAKEN CARE OF. BUT BECAUSE THERE IS NOT THIS ENTERPRISING RISK MANAGEMENT STRUCTURE, THE GREEN BOOK TALKS
ABOUT THERE NEEDS TO BE ON THE MANAGEMENT SIDE THIS LEVEL OF OVERSIGHT. SO I WOULD SAY THAT YOU KNOW, THROUGH DEVELOPING AN EXECUTIVE TYPE FUNCTION, OR ASSIGNING THOSE TYPES OF RESPONSIBILITIES TO AN EXISTING
EXECUTIVE, THAT CAN COME THROUGH COLLABORATION WITH THE ADMINISTRATION, AND WE CAN LOOK TO BUILD OUT SOME OF THOSE RESPONSIBILITIES BECAUSE YOU'RE EXACTLY RIGHT. I MEAN, IF THERE IS NOT ACCOUNTABILITY OR THAN DRAGGING THEM IN FRONT OF THE AUDIT COMMITTEE, WHICH MAY OR MAY NOT
BE SEEN BY PEOPLE THAT IT NEEDS TO BE SEEN BY, OR FIGHTING ABOUT IT IN THE PUBLIC, I JUST, I THINK THERE NEEDS TO BE SOME MECHANISM FOR ACCOUNTABILITY.
>> AGREED. ALL RIGHT. SEEING NO QUESTIONS OR COMMENTS, I WILL DIRECT THE CLERK TO FILE THAT REPORT, AND NEXT WE HAVE ITEM 6, WHICH IS AN UPDATE ON THE OFFICE OF CITY AUDITOR STRUCTURE AND FUTURE PLANS. AND YOU ARE BACK ON. >> ALL RIGHT, THANK YOU. SO
THAT ALL LEADS INTO SOME OF THE NEEDS THAT THE OFFICE OF CITY AUDITOR HAS IN THE THREE MONTHS THAT I'VE BEEN HERE, I'VE LEARNED A LOT. AND ONE OF THE THINGS THAT I'VE LEARNED IS THAT BEFORE THE GOVERNMENT RESTRUCTURING, THERE WAS NO OFFICE OF CITY AUDITOR. THERE
WAS AN INTERNAL AUDIT FUNCTION. THERE WERE A FEW PEOPLE IN THAT ROLE. BUT IT DID NOT LOOK AT ALL LIKE SOME OF THE COUNTERPARTS ACROSS THE COUNTRY WHEN YOU CONSIDER MUNICIPAL GOVERNMENT OVERSIGHT. CURRENTLY
AFTER PAR AND O&E HAVE MOVED OUT, WE ARE AT SIX AUDITORS WITH DIRECTOR POUDYAL IN THE INTERNAL AUDIT DIRECTOR ROLE AND MYSELF IN THE CITY AUDITOR ROLE, AND ALL OF THE THINGS WE'VE TALKED ABOUT TODAY, INCLUDING IN MY PRESENTATION, THESE ARE NOT
ASSURANCE SERVICES. THESE ARE NOT THINGS THAT COME OFF OF OUR ANNUAL AUDIT PLAN THAT WE PRESENT EACH YEAR. WHEN YOU LOOK AT THE IIA AUDIT STANDARDS, THE TWO FUNCTIONS OF AN AUDIT
SHOP, AND A CHIEF AUDIT EXECUTIVE, ARE TO PROVIDE ASSURANCE SERVICES AND ADVISORY SERVICES. WE NEED RESOURCES TO DO THESE AFTER ACTION REVIEWS AND TO DO SOME OF THE THINGS THAT COME DIRECTLY FROM THE
COUNCIL OR FROM THE ADMINISTRATION. AND THIS IS JUST HIGHLIGHTING, I WILL GET THE SLIDES INTO THE AGENDA AFTER THE FACT, SO THIS IS JUST
HIGHLIGHTING SOME INFORMATION YOU ALREADY KNOW WHAT MY RESPONSIBILITIES ARE, WHAT THE CURRENT STRUCTURE LOOKS LIKE. BUT WHAT I'M LOOKING AT IS CREATING A NEW DIVISION THAT CAN FOCUS ON THE ADVISORY SERVICES. I THINK THAT THE ORIGINAL INTENT
OF THE O&E DIVISION WAS GOOD, BUT IT DID NOT FOCUS IN ON WHAT COULD BE DONE INDEPENDENTLY OF CITY COUNCILOR ADMINISTRATION BEING TOO INVOLVED IN THE WORK. SO WHAT WE CAN DO IS A MORE DELIBERATE PLAN FOR PROGRAM
EVALUATIONS THAT WILL GO THROUGH THE SAME PROCESS AS OUR ANNUAL RISK BASED AUDIT PLAN. AS I ALLUDED TO EARLIER, WE WOULD PULL AUDIT COMMITTEE MEMBERS. WE WOULD POLL CITY COUNCILMEMBERS. AND WE WOULD
GET AN IDEA OF WHAT PROGRAMS THEY WANT AUDITED. WE WOULD COME BACK. THESE ARE LENGTHY REVIEWS. WE WOULD COME BACK WITH INFORMATION AND RECOMMENDATIONS. THIS IS ANALOGOUS WITH WHAT HAPPENS AT THE LEGISLATIVE AUDITOR'S OFFICE IN THEIR PROGRAM EVALUATIONS DECISION, AND IT PROVIDES -- DIVISION, AND IT PROVIDES REALLY
GREAT INSIGHT, BUT THE BEAUTY OF IT IS WE CAN, BECAUSE WE'RE THE AUDITOR, WE CAN MAKE RECOMMENDATIONS, AND SO I THINK THAT MEETS THAT ORIGINAL INTENT, AND THEN WE NEED TO TALK ABOUT THE COMMUNITY SAFETY AUDITS, THE
AFTER ACTION REVIEWS, THE AD HOC ADVISORY SERVICES FROM BOTH THE COUNCIL AND THE ADMINISTRATION. THESE ARE ALL THINGS THAT I DON'T WANT TO SAY NO TO. I'VE TOLD MANY PEOPLE THAT IF I DON'T HAVE TO SAY NO BECAUSE OF RESOURCES, THAT IS MY
PREFERENCE, SO WE'RE GOING TO, WE'RE GOING TO BE ASKING FOR SOME ADDITIONAL RESOURCES. THIS AFTERNOON AT THE BUDGET COMMITTEE, WE'LL BE REQUESTING FOUR FTEs FOR, STARTING TO BUILD OUT THIS NEW DIVISION, AND IS THEN WE WILL BE WITH THE 2026
BUDGET REQUESTING THREE ADDITIONAL FTEs. SO THAT WOULD BRING OUR TOTAL GROUP TO 15, WHICH WOULD THEN BE IN LINE WITH SOME OF THE LOWEST AUDIT STAFFS AND OIG STAFFS AT
COMPARABLE CITIES, SO IT WOULD GET US MORE IN LINE WITH WHAT OTHERS HAVE. SO THIS JUST KIND OF LOOKS AT WHAT I TO TALKED ABOUT THERE. THREE INTERNAL AUDITORS FOR THE NEW DIVISION,
TWO WOULD BE THIS YEAR, ONE WOULD BE NEXT YEAR. SORRY I DON'T KNOW. QUALITY TRAINING MANAGER. THIS IS A REQUIRED, REQUIRED WORK THAT WE NEED A POSITION FOR THAT THE RED BOOK AND THE YELLOW BOOK BOTH IN THE LAST YEAR UNDERWENT CHANGES THAT
SIGNIFICANTLY INCREASES THE QUALITY ASSURANCE THAT WE NEED TO DO ON OUR OWN WORK, SO THIS IS A VITAL POSITION. AND THEN WE ARE NOW AT A POINT WHERE BECAUSE OF A LOT OF THE NEW ADVISORY SERVICES THAT WE'RE TAKING ON ARE COMING UP, WE NEED
THE SUPPORT OF AN ADMIN AASSISTANT. THIS IS SOMETHING WE'VE REQUESTED IN THE PAST AS WELL. THE DIRECTOR OF THE NEW DIVISION AND THEN HOPEFULLY BUT LAST, IS THE DEPUTY CITY AUDITOR, THE ORDINANCE DOES ALLOW FOR ME TO APPOINT A DEPUTY
CITY AUDITOR WITH APPROVAL OF THE AUDIT COMMITTEE, AND THIS IS SOMETHING THAT I'LL BE REQUESTING. DIRECTOR POUDYAL AND I ALONG WITH THE NEW QUALITY MANAGER AND THE NEW DIRECTOR OF THE ADVISORY SERVICES DIVISION
WILL KIND OF KEEP THINGS ROLLING, BUT AS WE DO GROW, OUT THFUNCTIONS, HAVING THE -- THESE FUNCTIONS, HAVING THE ADDITIONAL ADMINISTRATIVE SUPPORT WILL BE HELPFUL. SO VISUALLY JUST WHAT I TALKED ABOUT AND THAT IS, THAT IS THE EXTENT. IF YOU'RE INTERESTED,
LIKE I SAID, THIS AFTERNOON AT THE BUDGET COMMITTEE, I WILL BE PRESENTING A LITTLE BIT MORE BROADLY. THERE WILL BE DOLLARS TALKED ABOUT, BUT THAT IS THE IDEA, AND MY HOPE IS THAT YOU, YOU KIND OF SEE THE, THE VISION
THERE. >> ANY QUESTIONS OR COMMENTS? MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE. I WOULD JUST SAY IN TERMS OF ADVOCACY AND WHAT THE COMMITTEE CAN DO, PLEASE KEEP US OR KEEP ME, I DON'T KNOW ABOUT OTHERS,
IN THE LOOP THERE. I KNOW THAT'S A MULTISTAGE AND ASKING FOR HEAD COUNT IS HARD. >> YEAH. YEAH. >> THANK YOU. >> VICE CHAIR SINGLETON. >> YEAH, I'LL JUST SAY, GENERALLY THANK YOU FOR BOTH THIS REPORT AND THE PREVIOUS
REPORT. I THINK IT'S REALLY GREAT TO SEE SOME OF THE STRUCTURAL CHANGES THAT YOU ENVISION, AND HAVING THE INTERNAL CAPACITY TO SUPPORT THOSE STRUCTURAL CHANGES IN BOTH LIKE THE MANAGEMENT SIDE AND WITHIN THE AUDITOR'S OFFICE, SO THANK YOU FOR ALL THAT WORK AND
THAT VISION. >> ALL RIGHT. WELL, SEEING NO FURTHER QUESTIONS OR COMMENTS FROM MEMBERS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THAT REPORT. AND OUR LAST NEW BUSINESS ITEM IS THE CONSIDERATION OF THREE AMENDMENTS TO THE 2025
ENTERPRISE RISK ASSESSMENT AND RISK BASED INTEGRATED AUDIT PLAN, AND I WILL AGAIN INVITE AUDITOR T TIMMERMAN. >> ALL RIGHT, THANK YOU. SO I GUESS I'M CALLING MYSELF A LIAR, MAYBE 12:30. WE'RE GOING TO FLY THOUGH. ALL RIGHT, SO THANK YOU, CHAIR PAYNE, THANK YOU,
AUDIT COMMITTEE. THE AUDIT PLAN NEEDS TO BE UPDATED BECAUSE OF A FEW ADDITIONS THAT WE'VE SEEN OVER THE LAST FEW MONTHS. THE FIRST IS ONE THAT YOU'RE VERY FAMILIAR WITH, THAT IS THE AFTER ACTION REVIEW INVOLVING THE DEATHS -- EXCUSE ME THE DEATH OF
ALLISON LUSSIER. WE ARE WORKING DILIGENTLY ON THIS, AND WE HAVE NOT ONLY BEEN WORKING ON THIS BUT WE'VE ALSO BEEN WORKING ON THE, ININTERACTIONS LEADING UP
TO AND AFTER THE DAVIS MUTERY SHOOTING. THOSE ARE BOTH COMBINED IN AN RFP TO BRING IN A LAWFIRM CONSULTANT TO HELP WITH THE POLICY AND REVIEW. MAKE RECOMMENDATIONS. WE'VE MET WITH FAMILIES OF ALLISON AND DAVIS. WE'VE MEDWITH ADVOCATES FOR THE
AMERICAN INDIAN COMMUNITY. WE HAVE REALLY STARTED DIVING INTO THESE REVIEWS, AND I UNFORTUNATELY I WAS HOPING WE'D HAVE THE CONTRACT SIGNED BY TODAY, SO I COULD SHARE WITH YOU WHO THE CONTRACTOR S BUT I AM
VERY PLEASED WITH EVERYTHING THAT ENDED UP HAPPENING. WE PUT THE RFP OUT ONCE, AND HAD ONE RESPONDENT THAT JUST WAS NOT WORKABLE; AND WE PUT IT OUT AGAIN AND WE HAD A RESPONDENT THAT I THINK IS GOING TO BE A
GOOD PARTNER IN THIS REVIEW. WE'RE STILL LOOKING TO HAVE THEIR WORK WRAPPED UP BY DECEMBER, AND THAT WOULD MEAN WE WILL EITHER YOU SHOULD A REPORT TO THE AUDIT COMMITTEE OR A DIFFERENT COUNCIL COMMITTEE WITH AN INVITATION TO AUDIT COMMITTEE MEMBERS EITHER IN JANUARY OR FEBRUARY. SO WE'LL KEEP YOU
UPDATED ON LOGISTICS THERE. THE OTHER ITEM WE NEED TO ADD TO THE AUDIT PLAN IS A REVIEW FOR SHOTSPOTTING. THIS AGAIN IS GOING TO BE AN ADVISOR SERVICE. THE CITY CAN YOU BELIEVE HAD MADE A -- COUNCIL HAD MADE A REQUEST TO THE LEGISLATIVE DEPARTMENT AND A SEPARATE
REQUEST TO THE CENTERS RELATE TO SHOTSPOTTER. WE ARE GOING TO HANDLE THIS COLLABORATIVELY WITH THE DEPARTMENT OF PUBLIC SAFETY, COMMISSIONER BARNETT AND I HAVE TALKED. WE WILL LEAD THIS. THIS WILL BE AN INDEPENDENT
REVIEW, BUT WE WILL COLLABORATE WITH THEM BECAUSE THEY HAVE INSIGHT INTO ALL THINGS SHOTSPOTTER, AND SO IT WILL END UP LOOKING LIKE A NORMAL SPECIAL REVIEW, BUT I AM EXCITED TO TEAM UP WITH THEM AT LEAST ON PAPER BECAUSE I THINK THAT IS WHAT WE NEED TO START DOING IS REALLY
SHOWING AUDIT AS A PARTNER TO OTHERS WITHIN THE ENTERPRISE. AND THEN THE LAST ONE, THE MDHR SETTLEMENT AGREEMENT ASKED FOR AN AUDIT OF MISCONDUCT COMPLAINT
INTAKE, SO BASICALLY AUDITING COMPROMISES PCR'S WORKS -- AUDITING OPCR'S WORK AND THAT IS SOMETHING WE CAN DO OUR PART TO HELP WITH ONE OF THE MINI ITEMS IN THAT SETTLEMENT AGREEMENT.
WE DON'T EXACTLY KNOW THE TIMING OF THAT. IT IS MEANT TO BE A REGULAR RECURRING TYPE OF AUDIT. WE'LL PROBABLY DO OUR FIRST ONE STARTING IN THE WINTER. AND THEN WE'LL LOOK AT IT EVERY TWO YEARS. THERE IS NO PRESCRIBED TIMING OF THIS IN THE SETTLEMENT
AGREEMENT. BUT I DO THINK IT IS SOMETHING THAT WE'LL BE ABLE TO DEVELOP THIS FIRST YEAR WE'LL TAKE A LITTLE LONGER BECAUSE IT'S THE FIRST TIME, BUT THEN IT'LL BE REALLY THE SAME REVIEW EVERY TWO YEARS OR SO. SO THIS ONE I BELIEVE THAT IS IT FOR
THAT. IF THERE ARE QUESTIONS ON THOSE, I'M HAPPY TO ANSWER THEM, BUT I THINK THAT IS PRETTY STRAIGHTFORWARD. >> I'LL JUST ADD THAT, WELL, A, I APPRECIATE ALL OF THIS WORK. I MEAN, I THINK YOUR FIRST THREE MONTHS HAVE BEEN VERY INTENSE,
AND JUST TO SEE HOW YOU'VE BEEN ABLE TO COME INTO THIS INSTITUTION AND REALLY STRENGTHEN I FEEL LIKE WHAT WE HAD A REALLY STRONG FOUNDATION OF AUDIT AND SEEING UNDER THIS NEW GOVERNMENT STRUCTURE HOW THE ROLE OF THE CITY AUDITOR VERSUS
AN INTERNAL AUDITOR, I THINK YOU'RE REALLY BEEN DEMONSTRATING HOW IMPORTANT THAT IS FOR THIS INSTITUTION. AND I'LL EVEN HIGHLIGHT SOME OF THE CONVERSATIONS I'VE BEEN HAVING BOTH WITH YOU, THE I CITY ATTORNEY AROUND THE DEVELOPMENTS AROUND THE FEDERAL CONSENT
DECREE WITH THE TRUMP ADMINISTRATION WITHDRAWING THAT, AND YOU KNOW, WE HEAR FROM THE MAYOR A COMMITMENT TO STILL DELIVER ON THE PROVISIONS IN THE CONSENT DECREE. HOWEVER, THE POINT OF A CONSENT DECREE ISN'T JUST TO HAVE A RODE MAP FOR
REFORM. IT'S ALSO TO HAVE AN INDEPENDENT EVALUATION AND OVERSIGHT OF VERIFYING THOSE FORMS AND I THINK IN THE AB ABSENCE OF A FORMAL DISSENT DEGREE I DO VIEW THE AUDITOR
TO FILL IN THAT GAP AND I THINK IT'S TBD TO SEE THAT FUNCTION AND I THINK REFLECTION OF THE REAL NEED WE HAVE IN BUILDING UP THE CAPACITY IN THE CITY AUDITOR'S OFFICE AND JUST ACROSS THE ENTERPRISE AROUND CONTROLS. AND I THINK I ALSO WANTED TO THANK MR. POUDYAL FOR YOUR LEADERSHIP IN THE TIME PRIOR TO
YOU GETTING HERE. I THINK SOME OF THE OBSERVATIONS THAT YOU HIGHLIGHTED TODAY ARE THINGS I SHARED WITH YOU THAT WERE HIGHLIGHTED BY MR. POUDYAL THAT I FELT RESONATED, AND I I THINK THAT WE'RE REALLY STARTED TO DEMONSTRATE A STRENGTH IN THE
AUDIT FUN FUNCTION HERE, SO I'M JUST GRATEFUL FOR YOUR LEADERSHIP. >> THEIR PAYNE, IF I COULD, I WANT TO SHARE THAT GRATITUDE. DIRECTOR POUDYAL AND I HAVE ESTABLISHED A VERY STRONG WORKING RELATIONSHIP AND A GOOD PARTNERSHIP. I THINK THAT THE WORK OF INTERNAL AUDIT HAS,
HAS CONTINUED TO MOVE FORWARD EVEN WITH THESE ADDITIONAL DEMANDS, AND THAT IS A TESTAMENT TO HIS ORGANIZATION, AND THAT IS MAKING SURE THE AUDIT PROCESS IS
RIGOROUS AND SOUND, SO THANK YO. >> SEEING NO FURTHER QUESTIONS OR DISCUSSION, I WILL MOVE TO APPROVE THOSE AMENDMENTS TO THE 2025 RISK BASED INTEGRATED AUDIT PLAN. ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THAT
CARRIES, AND LAST IS A REPORT OF THE CITY AUDITOR. DO WE STILL WANT TO -- RUN THROUGH THAT? ALL RIGHT. I WILL INVITE MR. POUDYAL, DIRECTOR OF INTERNAL AUDIT TO GIVE THAT REPORT. >> IT'S TOTALLY UP TO YOU,
MR. CHAIR, BASED ON TINAL, BUT WE CAN TRY TO BE -- TIME, BUT WE CAN TRY TO BE QUICK HERE. >> GOOD AFTERNOON. CHAIR PAYNE AND THE MEMBERS OF THE AUDIT COMMITTEE. I LIKE TO QUICKLY PROVIDE YOU AN UPDATE ON ALL THE PROJECTS THAT WE HAVE BEEN
WORKING ON AND FIRST OF ALL, NO THANK YOU, CITY AUDITOR, TIMMERMAN AND CHAIR PAYNE FOR TALKING, GLOWING ABOUT ME AND I WANT TO DO SAME THING FOR MY AUDIT STAFF AS WELL. I CAN DO MY JOB BUT TRYING TO MANAGE AND ORGANIZE BUT WITHOUT THEIR SUPPORT AND HARD WORK, I MEAN, IT'S NOT POSSIBLE, SO I JUST
WANTED TO THANK MY STAFF FOR WORKING HARD FOR THE OFFICE AND FAND FOR THE CITY. SO TOTAL AUDIT WISE, SO WE HAVE TOTAL EIGHT PROJECTS THAT HAD BEEN GOING ON. COUPLE OF THEM ARE ON HOLD BASED ON THE CAPACITY THAT
WE HAVE BECAUSE WE DID PRIORITIZE SOME OF THE NEW AUDIT THAT WE'LL BE PERFORMING SO WHEN YOU'RE TRYING TO TAKE ON ADDITIONAL WORK YOU HAVE TO AT LEAST PUT ON HOLD A COUPLE OF THEM. SO AT LEAST FOR NOW THERE ARE LIKE SIX AUDIT PROJECTS IN
PROGRESS, AND FOUR OF THEM ARE NEW FROM THE LAST TIME WE HAD THIS MEETING BACK IN FEBRUARY 2025. SO AGAIN, SO THE FIRST
ONE IS THE NEIGHBORHOOD SAFETY CONTRACT MANAGEMENT AUDIT. SO IN THE, SO BASICALLY THE OBJECTIVE OF THAT AUDIT IS TO DELIVER THE NEIGHBORHOOD SAFETY PROJECT PROCESSES INCLUDING PROCESSES SUCH AS ADMINISTRATION, MANAGEMENT, REPORTING, OVERSIGHT, AND MONITORING TO ENSURE THAT CONTROLS ARE ESTABLISHED AND
OPERATING EFFECTIVELY, SO IN THIS DEPARTMENT, WE HAVE A NEW DIRECTOR SO AMANDA HARRINGTON AND WE HAVE BEEN WORKING WITH HER AND HER STAFF TO GET, TO MAKE PROGRESS ON THIS AUDIT, SO RIGHT NOW WE'RE IN THE FIELD
WORK PHASE OF THE AUDIT. SOY NEXT ONE IS -- SO NEXT ONE IS THIRD PARTY, SO THIS IS THRD PARTY REVIEW TO REVIEW PROCESSES AND CONTROLS RELATED TO
DEPARTMENTS' USE OF THIRD PARTY SOFTWARE APPLICATION AND WE HAVE AN I.T. AUDITOR IN OUR TEAM WHO HAS BEEN PERFORMING THIS AUDIT, AND SO THIS IS IN THE REPORTING PHASE, SO BASICALLY WE HAVE PRELIMINARY HIGHLIGHTED SOME OF
THE GAPS THAT WE CAN WORK ON, SO WE'RE JUST WORKING ON WITH MANAGEMENT TO DO THE ISSUE VETTING AND ULTIMATELY IN DRAFTING THE REPORT, SO THAT'S WHY WE'RE IN THE STATUS OF REPORTING RIGHT NOW. SO THE
NEXT ONE IS THE -- ENTERPRISE RISK ASSESSMENT AND RISK BASED AUDIT PLAN. THIS IS TO REVIEW DESIGN AND EFFECTIVENESS AROUND PARK BOARD REVENUE AND COLLECTION PROCESSES SO THE PHASE ONE WE COMPLETED IT BACK
IN 2023 WHICH FOCUSED ON THE CITY OF MINNEAPOLIS, SO AS A PART OF THE PHASE 2 WE'RE FOCUS ON THE REVIEW AND COLLECTION PROCESS FOR THE PARK BOARD, AND THIS, IS IN THE STILL IN THE PPLANNING PHASE. SO THE NEXT
ONE IS MPD BODY WORN CAMERA AND AUTOMATED LICENSE PLACE READER AUDIT, SO THIS AUDIT WE HAVE TO PERFORM EVERY TWO YEARS BASED ON THE STATE STATUTE. SO THE OBJECTIVE OF THIS, THESE TWO AUDITS ARE TO TEST MINNEAPOLIS POLICE DEPARTMENT'S COMPLIANCE WITH THE STATE LAW REGARDING THE
BODY WORN CAMERAS AND AUTOMATED LICENSE PLATE READER, SO THIS IS ONE OF THE NEWER AUDITS THAT WE STARTED SINCE OUR LAST AUDIT COMMITTEE MEETING AND WE'RE STILL IN THE PLANNING PHASE OF THIS AUDIT. SO THE NEXT ONE IS
ONE OF THE ACTION AFTER REVIEWS CASE INVOLVING DAVIS -- THIS IS TO REVIEW DAVIS MATUREY AND JOHN SOLCHECK AND STILL IN PROGRESS
SO WE'RE IN THE INFORMATION COLLECTION PHASE SO ONCE WE GET THAT CONTRACT SIGNED AND WE BRING IN THE INDEPENDENT EVALUATOR AS WELL SO WE'LL BEGIN OUR REGULAR PLANNING PROCESS, BUT AT THIS TIME, WE HAVE BEEN GATHERING SOME OF THE INFORMATION RELATED TO THE CASE.
AND SAME WITH THIS AFTER ACTION REVIEW CASE INVOLVING DEATH OF ALLISON LUSSIER AS WELL. WE ARE IN THE INFORMATION COLLECTION PHASE RIGHT NOW, AND WE'LL START
THIS AUDIT ONCE WE FINALIZE THE CONTRACT WITH THE INDEPENDENT EVALUATOR. SO THE NEXT TWO AUDITS ARE ON HOLD, SO THE FIRST ONE IS THE ANCILLARY POLICE PROGRAM AUDIT SO THE OBJECTIVE
WAS TO REVIEW PROCESS AND CONTROLS AROUND ANCILLARY POLICE PROGRAMS TO ENSURE ADEQUATE CONTROLS ARE IN PLACE AND THE PROGRAMS ARE OPERATING EFFECTIVELY AND INTENDED. SO INITIALLY WE HAD THAT PLANNING MEETING WITH THE MPD, AND BASED ON OUR DISCUSSIONS, PROBABLY WE NEED TO DO A LITTLE BIT OF
FURTHER ANALYSIS TO REGARDING WHAT EXACTLY WE WILL BE LOOKING AT FROM SCOPE'S STANDPOINT, SO THAT'S WHY FOR NOW WE HAVE PUT THIS ON HOLD AND SAME WITH THE FACILITIES MANAGEMENT AUDIT AS WELL. BASICALLY THE BOTH FROM
MANAGEMENT SIDE AND THE AUDIT SIDE, LIKE THERE WAS TURNOVER, SO WHICH WAS VERY DIFFICULT FOR US TO UNDERSTAND THE ENTIRE PROCESS AGAIN. SO WE HAVE PUT THAT ON HOLD FOR NOW TO DECIDE WHETHER WE WANT TO DO IT, THIS AUDIT AGAIN WITH A FRESH LENS, AND IDENTIFY IF WE NEED TO ADD
OR REMOVE SOME OF THE SCOPE AS WELL, SO THAT'S WHY WE HAVE TO PUT THIS AUDIT ON HOLD AS WELL. ANY QUESTIONS BEFORE I MOVE TO THE NEXT SES SECTION? ALL RIGHT, NO, THANK YOU. SO FROM
THE FRAUD, WASTE, AND ABUSE INVESTIGATION STANDPOINT, WE HAVE TWO ACTIVE OPEN INVESTIGATIONS THAT ARE GOING ON RIGHT NOW. AND I KNOW IN TERMS OF THE PRIOR AUDIT ISSUES FOLLOW-UP, WE HAD A REQUEST FROM AUDIT COMMITTEE BACK IN FEBRUARY
TO MAYBE PROVIDE A LITTLE BIT OF DETAILED INFORMATION REGARDING SOME OF THESE CLOSED ISSUES, AND I HAD A CHANCE TO TALK TO CITY AUDITOR TIMMERMAN AS WELL AS FOR SOME OF THESE LIKE OLDER ISSUES, WHAT SHOULD WE DO BECAUSE THEY HAVE BEEN OPEN ISSUE ITEMS, SOME OF THEM ARE FROM 2018, WHICH IS
MORE THAN SEVEN YEARS, SO WE HAD, WE HAD MADE SOME OF THOSE DECISIONS AS WELL SO THAT'S WHAT I'M GOING TO PRESENT. SO FROM
STATISTICS STANDPOINT WE HAVE 16 OPEN ISSUES RIGHT NOW AND 19 OVERDUE THAT IS, THEY HAVE ALREADY BEEN EXTENDING THE TENTATIVE COMPLETION DATE AND THERE ARE LIKE EIGHT AUDIT ISSUES THAT ARE EVALUATION IN PROGRESS, WHICH MEANS THEY
HAVE -- THE MANAGEMENT HAS ALREADY SUBM SUBMITTED THE WORK THEY HAVE PERFORMED TO MITIGATE SOME OF THESE ISSUES, AND AUDIT IS REVIEWING THEM RIGHT NOW. AND FOR THIS, AUDIT COMMITTEE, AUDIT HAS CLOSED TEN
ISSUES THAT WERE OUTSTANDING. ALL RIGHT, SO REGARDING DETAILS OF SOME OF THE CLOSED ISSUES, SO THE FIRST ONE IS THERE WERE THREE ISSUES REMAINING FOR, FROM THE 2018 POLICE INFORMATION MANAGEMENT SYSTEM, PIMS. SECURITY TECHNOLOGY AUDIT, AND
FOR THIS ONE, EVEN THOUGH WE DIDN'T VALIDATE WHETHER THOSE WERE REMEDIATED OR NOT, BECAUSE SINCE THERE WAS CHANGE IN MANAGEMENT FROM THEIR SIDE AS WELL, AND WE DO HAVE THE FOLLOW-UP AUDIT IN OUR AUDIT PLAN, WE HAVE DECIDED THAT
PROBABLY WE'LL CLOSE THIS ISSUE FOR NOW BUT WHEN WE PERFORM THE FOLLOW-UP AUDIT WE WILL MAKE SURE WHAT IS THE STATUS OF SOME OF THESE OPEN ISSUES AND SEE WHETHER THERE HAS BEEN ANY IMPROVEMENT MADE OR NOT. AND THESE ARE ALL, THESE 3 ISSUES
WERE NOT PUBLIC ISSUES SO WE DIDN'T IDENTIFY WHAT EXACTLY THOSE ISSUES OVER HERE. SO THE NEXT ONE IS THE 2 2022
PROMOTION PROCESS. WE CLOSED ISSUE NUMBER 8, FORMER EMPLOYEE BACK PAY, SO FOR NOW THERE ARE NOW LIKE FOUR OPEN ISSUES FOR THIS REPORT, SO THERE IS STILL
FOUR REMAINING. THIRD 1 IS 2023 SEXUAL EXAMINATION KIT SPECIAL PROJECT AUDIT AND FOR THIS ONE WE CLOSED THE ISSUE NUMBER 3, RESTRICTED CONVERSION AND WE STILL HAVE TWO NONPUBLIC AUDIT ISSUES REMAINING, WHICH
MANAGEMENT CAME TODAY AND PRESENTED IN THOSE TWO ISSUES. AND FOR THE 2023 PROPERTY AN AND EVIDENCE AUDIT, SO THERE WAS ONE ISSUE THAT WAS CLOSED REGARDING THE DESTRUCTION
PROCESSES, SO THEY HAVE COMPLETED OR CREATED THE POLICY AND PROCEDURES REGARDING THE DESTRUCTION PROCESS, AND THERE ARE NOW SEVEN AUDIT ISSUES REMAINING FOR THIS REPORT, WHICH MANAGEMENT CAME AND PRESENTED AS WELL. REGARDING THE 2023P CARD
SPENDING PROGRAM AUDIT, WE HAVE CLOSED FOUR ISSUES FOR TRAIN, DOCUMENTATION, RECORD KEEPING, SALES AND USE TAX, AS WELL AS USER TERMINATION TRANSFER CANCELLATION, SO RIGHT NOW THERE ARE ONLY THREE ISSUES REMAINING
FROM THIS AUDIT. AND SO THESE ARE SOME OF THESE OPEN ISSUES THAT WE HAVE HIGHLIGHTED BECAUSE IN THE PAST WE JUST USED TO INCLUDE THE AUDIT NAME, BUT WE HAVE ALSO INCLUDED THE AUDIT
NAME AND ALSO THE TITLE ISSUE NAMING AND WHETHER THERE HAVE BEEN WHAT PHASE, WHETHER IT'S OPEN, OVERDUE, OR VALIDATION IN PROGRESS. SO NEXT FEW SLIDES ARE BASED ON ALL THOSE DETAIL
INFORMATION. SO REGARDING SOME OF THESE OPEN ISSUES, SO THE FIRST ONE IS RELATED TO 2019 POLICE OFF-DUTY WORK, AND THERE ARE THREE OPEN ISSUES RIGHT NOW. THE FIRST ONE, INTECHNOLOGY ENHANCEMENT POLICY REQUIREMENTS,
AND OVERSIGHT AND MONITORING, SO THE FIRST ONE REGARDING THE TECHNOLOGY ENHANCEMENT, WHEN WE PERFORM THAT AUDIT BACK IN 2019, THE SYSTEM WAS ALREADY CIG OF OLD SO BASED ON OUR DISCUSSION WITH MANAGEMENT, THEY ARE WORKING ON REPLACING THAT I.T.
SYSTEM CALLED WORKFORCE DIRECTOR TO MAKE SURE TO TRACK SOME OF THE OFF-DUTY HOURS, SO, SO THAT'S IN THE WORKS. AND FOR THE ISSUE NUMBER 2, SOME OF THESE POLICIES ARE ALSO COVERED AS PART OF THE CON CONSENT
DECREE, SO THEY WILL BE WORKING ON SOME OF THOSE POLICY REFORMS AS WELL, AND THE THIRD ONE IS REGARDING THE OVERSIGHT AND MONITORING, SO MPD HAS CREATED THE INSPECTION UNIT. WHICH IS RESPONSIBLE TO PROVIDE SOME
OVERSIGHT WORK AS WELL. SO THEY HAD BEEN WORKING ON CREATING SOME OF THESE OPENING ISSUES BUT ONE OF THE THINGS LIKE THERE HAS BEEN CHANGES IN THE LEADERSHIP IN THIS DIVISION AS WELL SO SOMETIMES IT'S HARD WHENEVER THERE IS TURNOVER, SO WE'LL BE
WORKING WITH THE MANAGEMENT AND ALSO WHEN WE COMPLETED THE ANNUAL AUDIT PLAN, WE PUT POLICE OFF-DUTY WORK AUDIT AS ONE OF THE TO BE PERFORMED IN FUTURE AS WELL. IT'S NOT TECHNICALLY IN THE AUDIT PLAN, BUT WE HAVE BEEN THINKING ABOUT PUTTING THAT AS A PART OF THE FOLLOW-UP AUDIT AS
WELL IX SO WE CAN LOOK AT SOME OF THESE ISSUES WHICH HAVE NOT B BEEN COMPLETED. SO THE NEXT ONE IS THE 2021 PERSONNEL WORK ISSUES, MOBILE DEVICE POLICIES AND CONTROLS AUDIT.
SO, SO THIS AUDIT HAS FIVE OPEN ISSUES, SO IF YOU LOOK AT THEM, BASICALLY THEY'RE ALL INTERTWINED WITH EACH OTHER, SO BASED ON OUR CONVERSATION WITH THE MANAGEMENT, THEY HAVE ALREADY DRAFTED THE POLICY, BUT
IT HAS NOT BEEN FINALIZED FINALIZED BECAUSE I THINK THEY ARE ALSO WORKING ON EMPLOYEE ACKNOWLEDGMENT WHENEVER THERE IS A CHANGE IN POLICIES AS WELL, SO ONCE IT HAS BEEN FINALIZED AND PUBLISHED IN THE PUBLIC SETTING,
THEN WE WILL BE ABLE TO PERFORM AND VALIDATE ISSUE 225 AS WELL SO THE MAIN ONE RIGHT NOW WE'RE WAITING FOR IS TO FINALIZE THESE POLICIES AND PROCEDURES, AND IT SHOULD BE DONE IN THE NEAR
FUTURE. AND FOR THE 22 HIRING AND PROMOTION AUDIT, WE HAVE FOUR ISSUES, AND BASICALLY BESIDES THE ISSUE NUMBER 5, WHICH REQUIRES FUNDING AND APPROVAL FROM THE CITY COUNCIL
OR BUDGET COMMITTEE AS WELL, REST 1213 AND 16, MANAGEMENT IS WORKING TO COMPLETE THAT IN COMING FEW MONTHS. AND THE NEXT ONE IS IN 2023 REVENUE COLLECTION PHASE 1, WE HAVE FIVE
OPEN ISSUES RIGHT NOW FOR ISSUES 1, 2, 3, AND 5, THEY HAVE BEEN PARTIALLY REMEDIATED, BUT RIGHT NOW THE CITY IS GOING THROUGH THE ANNUAL FINANCIAL AUDIT WHICH CONCLUDES IN JULY, SO MANAGEMENT SAID THAT THEY CAN FOCUS MORE TIME TO COMPLETE SOME OF THESE
ISSUES AFTER JULY, SO. AND THE 2023 SEXUAL ASSAULT EXAMINATION KIT SPECIAL PROJECT FOLLOW-UP, WE JUST HAD THE MANAGEMENT PRESENT THE STATUS THIS MORNING. AND THE SAME WITH THE 2023
PROPERTY AND EVIDENCE AUDIT AS WELL. FOR THE 2023P CARD SPENDING AUDIT WE HAVE THREE OUTSTANDING ISSUES, BUT THEY STILL HAVE SOME TIME TO COMPLETE
SOME OF THESE ISSUES, SO WE'LL PROVIDE MORE UPDATES DURING THE NEXT AUDIT COMMITTEE MEETING. AND FOR THE 2024 MPD FLEET MANAGEMENT AUDIT, THERE ARE TEN OPEN ISSUES. THEY ARE STILL
WORKING ON, AND FOR THE SPECIFIC SPECIFICS FOR DRIVER LICENSE PROGRAM, BASICALLY THEY HAVE CATHED ARE THE STAFF AND OFFICER -- CONTACTED ALL THE STAFF AND OFFICERS TO PROVIDE THEIR ELIGIBILITY ON THEIR DRIVER LICENSE INFORMATION SO THAT THEY CAN COMPLETE THIS
ISSUE AS WELL, SO THEY HAVE BEEN WORKING ON COMPLETING THIS AUDIT ISSUE. HOP HOPEFULLY WE'LL PROVIDE MORE UPDATE IN THE NEXT AUDIT COMMITTEE FOR THIS ONE. AND FOR THE NCR CITY FUNDING TO NEIGHBORHOOD ORGANIZATIONAL AUDIT WE HAVE FOUR OPEN ISSUES, AND IF YOU
LOOK AT THE DATES, THEY STILL HAVE TIME. BESIDES ONE, BUT WE'LL FOLLOW UP ON THAT ONE AND PRESENT AUGUST AUDIT COMMITTEE MEETING. SO THESE ARE A LIST OF ALL THE REPORTS WITH THE
NONCLOSED AUDIT ISSUES, AND AT THIS TIME, I WOULD LIKE TO PRESENT CITY AUDITOR TIMMERMAN TO GO YOU THE NEXT SLIDE. THANK YOU -- TO GO THROUGH THE NEXT SLIDE. ANY QUESTIONS BEFORE -- >> MEMBER HOSBEIN. >> JUST TWO QUICK POINTS. I KNOW WE'RE RUNNING TIME. THANK YOU SO MUCH FOR THIS DETAIL.
THIS IS HUGELY HELPFUL. I FINALLY THINK I UNDERSTAND WHAT I'M SUPPOSED TO BE LOOKING FOR, SO THANK YOU. I SEE THAT YOU HAVE THE MPD FLEET MANAGEMENT AUDIT ON THE NEXT COMMITTEE MEMBER OR THE COMMITTEE MEETING AGENDA. I FEEL LIKE IF MEMORY SERVES WE ARE WAITING FOR
ACTUALLY SOME ADDITIONAL DATA FROM THAT TEAM AS WELL. FROM OUR PREVIOUS REVIEW WHEN THEY WERE HERE. I COULD LOOK UP TOO, BUT I WOULD LOVE IF WE COULDVY RESOLUTION ON ANY OF THOSE OUTSTANDING NUMBERS. >> YEP, WE HAVE BEEN WORKING WITH MANAGEMENT TO GET THAT
INFORMATION, SO WE WILL FOLLOW UP WITH THEM AGAIN. >> AMAZING, THANK YOU. >> MR. TIMMERMAN. >> THANK YOU, CHAIR PAYNE, AUDIT COMMITTEE. NEXT ITEM IS WE'RE LOOKING FORWARD TO A TRAINING SESSION ON JULY 28th. YOU SHOULD'VE ALL RECEIVED INVIIDATIONS FOR THAT. --
INVITATIONS FOR THAT. WE ARE LOOKING TO HOLD THAT AT A SPACE TO BE DETERMINED, BUT IT WILL FOCUS ON INDEPENDENCE, OBJECTIVITY, AUDIT STANDARDS, THE WORKING RELATIONSHIP BETWEEN THE COMMITTEE AND THE OFFICE OF
CITY AUDITOR, AND THE CITY COUNCIL, AND THE DYNAMICS OF THAT, SO WE HAVE BEEN WORKING HARD ON PUTTING TOGETHER THAT TRAINING SO WE ARE LOOKING FORWARD TO THAT AND WE'RE HOPING IT TO BE A BIT MORE OF A CASUAL ENVIRONMENT AS WELL. SO COME,
WEAR GE JEANS, BRING YOU ARE COFFEE, WE'LL JUST HANG OUT FOR A FEW HOURS. THAT'S IT. THANK YOU. >> ALL RIGHT. THANK YOU. ACTION PACKED DAY, AND I THINK WITH THAT I WILL ASK THE CLERK TO RECEIVE AND FILE THAT REPORT, AND SEEING NO FURTHER BUSINESS BEFORE US, AND WITHOUT
OBJECTION, I WILL DECLARE THIS MEETING ADJOURNED. THANK YOU.