≫ WELCOME TO THE REGULAR MEETING OF THE AUDIT COMMITTEE FOR FEBRUARY 23rd, 2026. I AM ELLIOTT PAYPAL, AND I AM THE CHAIR OF THIS -- ELLIOTT PAYNE AND I'M 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 TRANSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE SPEED AND CLARITY OF THEIR COMMENTS. AT THIS TIME, I WILL ASK THE CLERK TO CALL THE ROLL
SO THAT WE CAN VERIFY A QUORUM FOR THIS MEETING. ≫ COMMITTEE MEMBER CHUGHTAI. ≫ PRESENT. ≫ ENGELHEART IS ABSENT. HOSE HOSBEIN. VICE CHAIR SINGLETON. ≫ PRESENT. ≫ CHAIR PAYNE. ≫ PRESENT. ≫ THERE ARE FIVE MEMBERS PRESENT. IVMENT. ≫ LET RECORD REFLECT THAT WE HAVE A QUORUM. COLLEAGUES OUR AGENDA IS BEFORE US. MAY I HAVE A MOTION TO ADOPT THE AGENDA? ≫ SO MOVED. ≫ SECOND. ≫ ALL THOSE IN FAVOR, SAY AYE. AYE. OPPOSED SAY NAY. THE AYES HAVE IT AND THE AGENDA IS ADOPTED. NEXT WE HAVE THE
ACCEPTANCE OF MINUTES FROM OUR -- WHEN WASSOUS WAS OUR LAST MEETING. ≫ WE ARE ACCEPTING TWO PAIRS OF MINUTES FROM OUR DECEMBER 8th, 2025, AND OUR ORGANIZATIONAL MEETING OF JANUARY 26th, 2026. ≫ EXCELLENT. MAY I HAVE THAT MOTION? ≫ SO MOVED. ≫ SECOND. ≫ ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NAY. AYES HAVE IT, AND THE MINUTES ARE ACCEPTED. WE HAVE ONE, TWO, THREE, FOUR FIVE ITEMS OF NEW BUSINESS TODAY AND WE WILL BEGIN WITH ITEM NUMBER 3, WHICH IS MPD
BIENNIAL BODY WORN CAMERA REPORT AND I WILL WELCOME MR. POUDYAL. WELCOME. ≫ GOOD MORNING, CHAIR PAYNE AND THE MEMBERS OF THE AUDIT COMMITTEE. MY NAME IS SITH WE COMPLETED THE STATE MANDATED AUDIT OF THE MPD'S BODY WORN PROGRAM. THIS AUDIT ENSURES WE FOLLOW STATE REQUIREMENT ON HOW BWC DATA ARE COLLECTED, STORED, USED AND DELETED. THIS IS THE OVERVIEW OF THE PRESENTATION. I'M GOING TO PRESENT ABOUT THE BACKGROUND, AUDIT
OBJECTIVES, SCOPE, AND METHODOLOGY, CONCLUSION, AND RESULTS, OBSERVATIONS, RECOMMENDATIONS, AND THE MANAGEMENT ACTION PLANS. MINNESOTA STATUTE REQUIRES LAW ENFORCEMENT AGENCIES THAT USE BODY WORN CAMERAS TO RANGE FOR AN INDEPENDENT BIENNIAL AUDIT TO DETERMINE WHETHER STATE STATUTE REQUIREMENTS ARE MET. THE MPD ENGAGED THE INDEPENDENT OFFICE OF CITY AUDITOR TO PERFORM THIS AUDIT, WHICH WAS DESIGNED TO ENSURE MPD MAINTAINS THE HIGHEST STANDARDS OF TRANSPARENCY AND INTEGRITY. IN THE PAST, WE CONTRACTED AN EXTERNAL VENDOR TO PERFORM THIS AUDIT. HOWEVER, NOW WITH THE AUDITORS WHO HAVE EXPERTISE IN REVIEWING
THE BODY WORN CAMERAS AS WELL AS THE I.T. AUDIT, WE DECIDED TO BRING THIS AUDIT IN HOUSE. SO THE OBJECTIVE OF THIS AUDIT WAS TO ASSESS COMPLIANCE WITH REGULATIONS AND REVIEW RELEVANT POLICIES, PROCEDURES, AND SECURE CONTROLS AS REQUIRED BY MINNESOTA STATUTE 13. 825, SUB 9. SO THE REVIEW FOCUSED ON BWC REQUIREMENTS TO VERIFY IF THE BWC DATA ARE COLLECTED AND CLASSIFIED APPROPRIATELY. DATA ARE RETAINED ACCORDING TO THE STATE STATUTE REQUIREMENTS, THE
DATA IS SHARED APPROPRIATELY WITH OTHER AGENCIES, THE WRITTEN PROCEDURES ARE IN PLACE TO GOVERN ACCESS TO NONPUBLIC RECORDINGS, AND ONLY ISSUE -- AGENCIES SHOULD BWC ARE USED TO DOCUMENT OFFICER ACTIVITIES, AND THAT MPD PERSONNEL ARE ADHERING TO BWC POLICIES AND PROCEDURES SO OUR SCOPE COVERED REGULATED ACTIVITIES FROM JANUARY 1st, 2023, TO DECEMBER 31st, 2024. AS METHOD, WE MET WITH MPD TO GET AN UNDERSTANDING OF THE BWC PROGRAM. WE ALSO REQUESTED TO RECEIVE AND REVIEW RELEVANT DOCUMENTATIONS, SUCH AS THEIR POLICY MANUALS, ANY ASSOCIATED SOPs WITH IT. ADDITIONALLY WE ALSO OBTAINED DIRECT
ACCESS TO EXON EVIDENCE. COM WHICH HOUSES ALL THE BODY WORN CAMERA FOOTAGES TO PERFORM AN INDEPENDENT REVIEW OF THE VIDEO AND ASSOCIATED DATA AND THE KEY RISK AREAS AT LEAST FROM THIS AUDIT'S PERSPECTIVE IS THE COMPLIANCE PIECE, WHICH WE'RE TRYING TO MAKE SURE THEY FOLLOW THE STATE STATUTE AS WELL AS THE OPERATIONAL PIECE WHERE LIKE HOW THE PROCESS WORKS. SO OVERALL CONCLUSION WE DETERMINED THAT MPD COMPLIED WITH STATE REGULATIONS RELATED TO BODY WORN CAMERA USE. HOWEVER, ALTHOUGH MPD COMPLIED WITH THE LEGAL REQUIREMENTS, WE
DEVELOPED THREE RECOMMENDATIONS TO HELP MPD FURTHER ALIGN WITH BEST PRACTICES THAT THE WE'LL COVER ON THE FOLLOWING SLIDES, SO THOSE THREE RECOMMENDATIONS ARE RELATED TO MPD SHOULD ESTABLISH A PROCESS FOR INDEPENDENT THIRD PARTY REVIEW ASSESSMENT REPORTS, MPD SHOULD FURTHER DEVELOP AND FORMALLY APPROVE EXISTING BWC SOPs AND MPD SHOULD UPDATE PASSWORD CONFIGURATION REQUIREMENTS. SO THE FIRST OBSERVATION IS RELATED TO INDEPENDENT THIRD PARTY ASSESSMENT REPORT REVIEW. MPD SHOULD ESTABLISH A PROCESS FOR INDEPENDENT THIRD PARTY REVIEW OF ASSESSMENT REPORTS OR
WHEN WE'RE TALKING ABOUT THE ASSESSMENT REPORTS, SPECIFICALLY WE'RE TALKING ABOUT THE SOC2 AND SO C3 REPORTS. SOC2 IS INFORMATION ERELATED TO POSSIBLE INTENDED FOR THOSE WITH A DEEPER UNDERSTANDING OF THE INTERNAL WORKINGS OF THESE CONTROLS SO THIS REPORT IS MADE AVAILABLE FROM THE SERVICE PROVIDER FOR REVIEW. HOWEVER, THESE REVIEWS ARE NOT CURRENTLY BEING PERFORMED, SO AT LEAST I WANT TO LET THE AUDIT COMMITTEE KNOW SO THIS IS LIKE ENTERPRISE-WIDE ISSUES SO IT'S NOT SPECIFIC TO MPD BASED ON THE RESOURCES THAT I.T.
HAVE AND ALSO THE DEPARTMENTS SOMETIMES THESE ARE NOT DONE, AND FROM AUDITS' PERSPECTIVE WE WOULD LIKE THE DEPARTMENTS TO DO AT LEAST ON AN ANNUAL BASIS. SO WE, SO THAT'S WHAT WE RECOMMEND. SO WE RECOMMEND THAT MPD MANAGEMENT DEFINE A PROCESS TO PERIODLY REQUEST REVIEW AND DOCUMENTS TO SOC2 ASSURANCE REPORTS INCLUDING DOCUMENTING ROLES AND RESPONSIBILITIES FOR PERFORMING THESE REVIEWS. SO THE NEXT RECOMMENDATION IS RELATED TO STANDARD OPERATING PROCEDURES. SO STANDARD OPERATING PROCEDURES MEET STATUTE REQUIREMENTS. HOWEVER, THERE'S FURTHER NEEDS FOR
THE DEVELOPMENT. SO WHEN WE LOOK AT THE ORIGINAL PROCEDURES, IT ADEQUACILY CAPTURES CAPTURES WHAT NEEDS TO BE DONE BUT WE ALSO WANT TO FOCUS ON HOW IT'S DONE AS WELL SO WE TRAIN ANY NEW EMPLOYEES AND RETRAIN SOME OF THE EXISTING EMPLOYEES AS WELL. AND IN ADDITION TO THAT, WE ALSO REVIEWED THE BODY WORN CAMERA ACTIVATION INTERVIEW SOP, WHICH IS ONE OF THE SPECIFIC SOPs USED BY THE IMPLEMENTATION UNIT AND IT DESCRIBES THE ACTIVATION REVIEW PROCESS, INCLUDING STAFF ROLES, REVIEW STEPS, AND THE USE OF TOOLS SUCH AS TABLEAU AND SMART SHEETS. HOWEVER, THIS SOP WAS RECENTLY DEVELOPED SO IT HASN'T HAD
A CHANCE TO GO THROUGH THAT FORMAL APPROVAL PROCESS FROM MPD MANAGEMENT. SO BASICALLY WE'RE RECOMMENDING TO FORMALLY APPROVE THOSE SOP AS WELL. SO THE THIRD OBSERVATION -- OBSERVATION AND RECOMMENDATION IS RELATED TO PASSWORD CONFIGURATION REQUIREMENTS. SO WHEN WE LOOKED AT THE SYSTEM THAT EVIDENCE. COM, THE RIGHT NOW THE APPLICATION IS CONFIGURED TO REQUIRE A MINIMUM SIX CHARACTERS LENGTH, BUT BASED ON THE BEST INDUSTRY PRACTICES, IT'S REQUIRED TO HAVE AT LEAST EIGHT CHARACTERS LONG, AND WHEN WE REVIEWED THE SYSTEM, WE HAVE THE ABILITY TO SET THAT TO AT LEAST 10, SO IT'S A QUICK FIX
AS WELL. SO WE'RE RECOMMENDING TO INCREASE THAT LENGTH FROM SIX TO AT LEAST EIGHT. AS FOR THE MANAGEMENT ACTION PLAN, AS THE OBSERVATIONS RECOMMENDATIONS MADE BY AUDIT ARE SUGGESTIONS TO STRENGTHEN THE BWC PROGRAM, AND SINCE MPD IS COMPLIANT WITH THE STATE STATUTE, THESE ARE MORE SUGGESTIONS AND NOT REQUIRED, BUT WE ENCOURAGE MPD TO ADOPT A, OUR RECOMMENDATION TO STRENGTHEN THE BWC PROGRAM AND MEET BEST PRACTICE STANDARDS AS WELL, AND WE DID
HAVE CONVERSATION WITH THE MPD IN THAT REGARD, AND THEY RECOGNIZED THE NEED FOR IT, AND THEY HAVE SAID TRISTE THEY'LL WORK ON -- AT LEAST THEY'LL WORK ON RESOLVE SOME OF THESE ISSUES IN THE FUTURE. ANY QUESTIONS? ≫ THANK YOU FOR THAT REPORT. ANY QUESTIONS? MEMBER HOSBEIN. ≫ THANK YOU, CHAIR PAYNE. I APPRECIATE THE EXECUTIVE SUMMARY THAT YOU HAD GOOD COOPERATION THROUGH THIS. I JUST WANTED TO CHECK. SO THE BODY OF ACTIVITIES THAT WERE REVIEWED WERE TWO-YEAR PERIOD ENDING DECEMBER 31st, 2024.
≫ YES. ≫ DO YOU THINK ANYTHING THAT YOU SAW WOULD POTENTIALLY WARRANT A DOUBLE CHECK MORE SOON, ESSENTIALLY THE LAST TWO MONTHS OR THE LAST YEAR, THAT WOULD WARRANT JUST A QUICKER REFRESH ON SOME OF THESE REVIEWS? ≫ SO BASED ON, SO NORMALLY THE SCOPE WISE HOW WE CHOOSE IS SO WE DON'T MISS ANY OF THE YEAR, SO THAT WAS THE REASON WE SELECTED THE TIME. WHEN THE LAST BODY WORN CAMERA REVIEWS WERE PERFORMED AND WHAT WAS THE SCOPE OF THAT. WE JUST SELECT THE TWO YEARS AFTER THAT. SO THAT WAS ONE OF THE REASONS WHY WE SELECTED FOR THE PERIOD THAT WERE NOT COVERED BY THE EARLIER REVIEW.
BUT WE WILL BE REVIEWING THOSE IN THE NEXT BIENNIAL AUDIT. ≫ OKAY. ≫ BUT FROM TRAINING PERSPECTIVE, POLICY AND PROCEDURES, SO WE DO, DO REVIEW THOSE ON A RECURRING BASIS BECAUSE THOSE ARE THE ONES THEY'LL BE USING. BUT SO FROM, AND SO, MS. AND POLICY AND PROCEDURES WE DO REVIEW ON LIKE A CURRENT PRACTICES BUT FROM THE FOOTAGE AND TESTING STANDPOINT, WE DO LOOK AT THE, ALL THE EVIDENCE BASED ON THE SCOPE. ≫ YEAH, AND I SAW THAT YOU RECOMMENDED MOVING IT TO AN ANNUAL THIRD PARTY ASSESSMENT
WITH MPD TOO, SO THAT'LL HELP WITH THAT DELAY IN KIND OF WHAT YOU CAN COVER VERSUS WHAT WOULD BE WITHIN THE TWO YEARS. ≫ YEAH. ≫ SO THANK YOU. ≫ ANY OTHER QUESTIONS? I JUST HAD A QUICK QUESTION ON THE NINETY-THIRD PARTY ASSESSMENT? IS THIS SOMETHING THAT HAS HAPPENED AT LEAST SOME TIME IN THE PAST BUT WE JUST AREN'T LEVERAGE IT ROUTINELY, OR IS THIS SOMETHING THAT HAS NOT BEEN DONE YET? ≫ I'M NOT AWARE OF THAT HAPPENING IN THE PAST. BUT EXON DO HAVE -- WE DID VALIDATED WHEN WE WENT TO THE
EXON WEB SITE SO THAT REPORT IS AVAILABLE FOR US TO REVIEW. AND ALSO IN ADDITION TO THAT RIGHT NOW THE I.T. DEPARTMENT IS, BECAUSE MOST OF THE TIME SOC2 REPORT IS MORE FOR THE PRIVATE INDUSTRY TO MAKE SURE SO SO I.T. IS WORKING WITH GOB RAMP WITH MORE TAILORED TO OUR FEDERAL, STATE, AND LOCAL GOVERNMENT AS WELL SO IT'S LIKE A SIMILAR PROCESS. SO RIGHT NOW THEY'RE IN CONVERSATION TO MAKE ALL THE VENDORS GO THROUGH THAT ASSESSMENT PROCESS AS WELL SO THAT IT'S MORE UP TO DATE BECAUSE SOC2 IT'S PERFORMED ANNUALLY BUT ONCE WE GO TO THAT GOV RAMP IT'S ON MONTHLY BASIS, SO THE IF SOMETHING IS WRONG OR IF SOMETHING IS INADEQUATE IN
THE SYSTEM WE WILL KNOW WITHIN A MONTH VERSUS ON AN ANNUAL BASIS SO I.T. IS WORKING ON THOSE ASPECTS OF THE ASSESSMENT AS WELL SO WE NEED TO MAKE SURE WE DO THAT IN THE FUTURE. ≫ GREAT. SEEING NO FURTHER QUESTIONS OR COMMENTS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THAT REPORT. THANK YOU, MR. POUDYAL. NEXT WE HAVE ITEM ITEM NUMBER 4, RECEIVING AND RECEIVING AND FILING A MPD BIENNIAL AUTOMATED LICENSE PLATE READER AUDIT REPORT. ≫ WE COMPLETED THE STATE
MANDATED BIENNIAL MPD DEPARTMENT ALPR PROGRAM AS WELL, AND THIS ENSURES, THIS AUDIT ENSURES AUDIT -- ON HOW LPRA DATA ARE COLLECTED, STORED, USED AND DELETED. SIMILAR TO BODY CORN CAMERA, AS OVERVIEW, I'M GOING TO BRIEFLY TALK ABOUT THE BACKGROUND, AUDIT OBJECTIVES, SCOPE, METHODS, CONCLUSION AND RESULTS, AUDIT RECOMMENDATIONS AND MANAGEMENT ACTION PLAN. SO AUTOMATED LICENSE READER TECHNOLOGY MAY BE USED TO SUPPORT A WIDE RANGE OF PUBLIC SAFETY ACTIVITIES,
INCLUDING -- STOLEN VEHICLE RECOVERY, ENFORCEMENT OF TRAFFIC, REGULATIONS, OPERATION OF INDIVIDUAL SUBJECT TO AN OUTSTANDING WARRANT, AND CRIMINAL INTEREST INVESTIGATIONS AND -- ALPR DEVICES ENABLE POLICE OFFICERS TO RECOGNIZE AND TAKE IMMEDIATE ACTIONS AGAINST VEHICLES AND PERSONS WHO ARE SUBJECT TO INVESTIGATIVE DETENTION OR ARREST. THE DATA COLLECTED BY ALPRs CAN ALSO PROVIDE INVESTIGATIVE LEADS TO IDENTIFY UNKNOWN VEHICLES TO GATHER DATA ABOUT KNOWN SUSPECT VEHICLES, AND TO LOCATE POTENTIAL SUSPECTS, WITNESSES, OR VICTIMS IN THE VICINITY OF A CRIME SCENE SO MINNESOTA STATE STATUTE REQUIRED LAW ENFORCEMENT AGENCIES THAT USE ALPR TO
ARRANGE AN INDEPENDENT BIENNIAL AUDIT TO DETERMINE WHETHER STATE STATUTE REQUIREMENTS ARE MET SO AS A RESULT MPD ENGAGED THE INDEPENDENT CITY AUDIT TO PERFORM THIS. SO THE AUDIT OBJECTIVE OF THIS AUDITED WAS TO ASSESS COMPLIANCE WITH REGULATIONS AND REVIEW RELEVANT POLICIES, PROCEDURES, AND SECURE CONTROLS AS REQUIRED BY MINNESOTA STATUTE 13. 824 SUB 6. SO IN TERMS OF SCOPE AND METHOD, THIS REVIEW FOCUSED ON L ALPR REQUIREMENTS TO ENSURE THEY ARE COLLECTED, CLASSIFIED AND USED APPROPRIATELY. THEY ARE DESTROYED ACCORDING TO
STATUTE REQUIREMENTS. ALPR DATA ARE LOGGED ACCURATELY, AND THERE ARE WRITTEN PROCEDURES IN PLACE TO MAKE SURE WHEN WE'RE AUTHORIZING THE ACCESS OF DATA, AND ALSO MAKING SURE THAT MPD PERSONNEL ARE ADHERING TO POLICIES AND PROCEDURES. OUR SCOPE COVERED RELATED ACTIVITIES FROM JANUARY 1st, 2023, TO DECEMBER 31st, 2024. SIMILAR TO BWC, WE MET WITH MPD TO UNDERSTAND THE ALPR PROGRAM, PROCESS, AND PRACTICES TO REVIEW RELEVANT POLICIES, PROCEDURES, AND DOCUMENTATIONS. AND IN THIS ONE WE OBTAINED ACCESS TO INSIDE
ALPR WHICH IS THE SYSTEM THEY USE FOR THE HOUSING ALPR DATA TO INDEPENDENTLY REVIEW THE ALPR INFORMATION. AND AGAIN, HERE SIMILAR TO BWC, THE KEY RISK AREAS THAT WE COVERED IS PRIMARILY THE COMPLIANCE RISK AND ALSO THE OPERATIONAL SIDE OF IT. SO THE CONCLUSION IS THAT WE DETERMINED THAT MPD COMPLIED WITH THE STATE REGULATION RELATED TO ALPR USE. ALTHOUGH THEY COMPLIED WITH THE LEGAL REQUIREMENTS, WE DEVELOPED TWO RECOMMENDATIONS THAT WE'LL COVER IN THE
UPCOMING SLIDES SO THE FIRST ONE IS AGAIN SIMILAR TO THE BWC AUDIT AS WELL ESTABLISH A PROCESS FOR INDEPENDENT THIRD PARTY REVIEW OF ASSESSMENT REPORTS, AND THE NEXT ONE IS MPD SHOULD FURTHER DEVELOP AND FORMALLY APPROVE EXISTING ALP R SOPs. SO THE FIRST ISSUE IS EXACTLY SAME AS THE BWC FIRST ISSUE NUMBER 1 AS WELL. MPD DOES NOT HAVE DOCUMENTED PROCESS TO PERIODICALLY EVALUATE THIRD PARTY SERVICE PROVIDED PERFORMANCE FOR THE AUTOMATED LICENSE PLATE READER SYSTEM. AS A RESULT, ASSESSMENT REPORTS
HAVE NOT BEEN REQUESTED OR REVIEWS A A PART OF THE ONGOING VENDOR OVERSIGHT SO BASICALLY WE RECOMMEND MPD TO DO THAT IN THE FUTURE. AND THE SECOND ONE IS SIMILAR AS WELL REGARDING THE STANDARD OPERATING PROCEDURES. SO STANDARD OPERATING PROCEDURES MEET THE STATUTE REQUIREMENTS BUT NEED FURTHER DEVELOPMENT AND THEN APPROVAL AS WELL, SPECIFICALLY RELATED TO SYSTEM ACCESS, DATA RETENTION, DELETION AND THE PERIODIC ACCESS REVIEWS. AS A RESULT WE RECOMMEND MPD MANAGEMENT TO
FURTHER DEVELOPMENT AND APPROVE -- THOSE KEY AREAS. AGAIN, OBSERVATIONS AND RECOMMENDATIONS MADE BY AUDIT ARE SUBJECT TO STRENGTHEN THE LPR PROGRAM SINCE THE MPD IS COMPLIANT WITH THE STATE STATUTE, MANAGEMENT ACTIONS ARE NOT REQUIRED. HOWEVER, WE ENCOURAGE MPD TO ADOPT THE RECOMMENDATION TO STRENGTHEN THE PROGRAM AND MEET BEST PRACTICES. AND ALSO I WOULD LIKE TO QUICKLY THANK RYAN FRANSON WHO LED AND ELLA KINGS THE SENIOR AUDITOR WHO FOCUSED ON THE I.T. PORTION OF IT SO I WOULD LIKE TO FORMALLY
THANK THEM FOR THIS AUDIT, PERFORMING BOTH OF THESE AUDITS. NOW I STAND FOR ANY QUESTIONS. ≫ THANK YOU FOR THAT PRESENTATION. ARE THERE ANY QUESTIONS FROM MEMBERS? VICE CHAIR SINGLETON. ≫> THANK YOU FOR THIS AUDIT. I HAD A COUPLE OF QUESTIONS RELATED TO HOW I GUESS I'LL START WITH IS LICENSE PLATE READER DATA SHARED WITH OTHER AGENCIES? BOTH LOCALLY AND FEDERALLY? AND I GUESS PRELIMINARILY, WAS THAT WITHIN THE SCOPE OF THIS AUDIT? ≫ YES, SO BASICALLY THE -- SO THERE ARE CERTAIN REQUIREMENTS
THAT WE NEED TO MEET. IF THAT HAPPENS, BUT YEAH, WE DO REVIEW THOSE PORTIONS AS WELL. ≫ AND WERE YOU ABLE TO -- I GUESS, SECOND PART OF MY QUESTION IS THERE'S BEEN LOT IN THE NEWS RECENTLY ABOUT THE SERVICE PROVIDER FLOCK OR THE SOFTWARE PROVIDER. ≫ YES. ≫ IS THAT SOMETHING THAT MPD USES, AND -- ≫ TO MY KNOWLEDGE, MPD DOESN'T USE FLOCK SYSTEM. ≫ AND DID YOU SEE ANY CONCERNS WITHIN THE AUDIT AROUND HOW LPR DATA MIGHT BE SHARED WITH FEDERAL AGENCIES? ≫ AT LEAST FROM MY PERSPECTIVE, WE DIDN'T SEE ANY ISSUES RELATED TO HOW MPD IS USING THE ALPR SYSTEM.
≫ CAY. THANK YOU. ≫ YEP. ≫ I WAS LEADING -- READING THROUGH THE STATUTES, AND IT LOOKS LIKE AN OUTSIDE AGENCY WOULD HAVE TO MAKE A REQUEST. ≫ YES. ≫ DO WE KNOW OF ANY REQUESTS FROM OUTSIDE AGENCIES AS A PART OF THIS AUDIT? ≫ WE DID SELECT THE SCOPE WAS FROM 2023 AND 2024, SO I DON'T THINK WAS THERE ANY -- SPECIFIC REQUESTS? ≫ AND THEN THE OTHER PART OF THE STATUTE, IT LOOKS LIKE THE RETENTION SCHEDULE IS 60 DAYS. AND I KNOW THAT THERE HAS BEEN SOME INTEREST FROM LIKE
ORGANIZATIONS LIKE ACLU IN TERMS OF LOT OF THE FEDERAL ACTIVITY THAT'S HAPPENED DURING METRO SEARCH AROUND WHAT OUR RETENTION SCHEDULES WERE AS IT RELATED TO POTENTIAL, POTENTIALLY USING SOME OF THE THAT USE SOME OF THAT VIDEO FOOTAGE AS EVIDENCE IN A CIVIL CASE. DO WE KNOW IF OUR RETENTION SCHEDULE -- BECAUSE THE AUDIT REPORT SAYS WE RETAIN WITHIN STATUTE BUT DO WE KNOW IF WE'RE RETAINING FOR 60 DAYS OR RETAINING FOR SOME SHORTER PERIOD OF TIME? ≫ SO FOR ALPR, UNLESS IT'S A PART OF ANY INVESTIGATION, SO ALL THE DELETED
AFTER 60 DAYS SO WE RETAIN UP TO 60 DAYS AFTER THAT, IT'S DELETED. ≫ AND -- ≫ AND WE VALIDATE THAT. ≫ WOULD THAT BE TRUE ALSO FOR THE STATIONARY TRAFFIC CAMERAS? ≫ SEE THE STATIONARY TRAFFIC CAMERAS ARE NOT PART OF THE ALPR. IT'S STRICTLY FOR ALL THE DASH CAM AND WHAT THEY CONSIDER IS A STATIONARY ALPR SYSTEM. BUT FOR THIS SCOPE OF THE PURPOSES, SO ANY TRAFFIC CAMERAS ARE NOT CONSIDERED ALPR. ≫ OKAY. THANK YOU. MEMBER WILLIAMS. ≫ THANK YOU. CAN YOU JUST REMIND ME OF THE, THE SCOPE PERIOD OF THIS AUDIT DATE WISE?
≫ SO JANUARY 1st, 2023, TO DECEMBER 31st, 2024. ≫ THANK YOU. ≫ SEEING NO OTHER QUESTIONS OR COMMENTS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THIS REPORT. I WILL ALSO DIRECT STAFF TO PUBLISH THIS REPORT AND THE PREVIOUS REPORT AND DIRECT THE CITY CLERK TO TRANSMIT BOTH OF THOSE REPORTS TO THE APPROPRIATE AGENCIES. ≫ THANK YOU. ≫ NEXT WE HAVE ITEM NUMBER 5, WHICH IS RECEIVING AND FILING A REPORT ON THE 2026 ENTERPRISE-WIDE RISK ASSESSMENT. I WILL ONCE AGAIN INVITE OUR AUDIT TEAM UP TO PRESENT ON THIS REPORT.
≫ ALL RIGHT, GOOD MORNING, CHAIR PAYNE, GOOD MORNING, AUDIT COMMITTEE. WE ARE EXCITED TO PRESENT TO YOU SOME WORK THAT WE'VE BEEN DOING OVER THE LAST SEVERAL MONTHS TO DEVELOP THE 2026 ENTERPRISE-WIDE RISK ASSESSMENT AS WELL AS THE AUDIT PLAN, AND STRATEGIC PLAN FOR OUR OFFICE. THIS FIRST PRESENTATION ALIGNS WITH THE REPORT ON YOUR AGENDA THAT WILL COVER SOME OF THE HIGH POINTS RELATED TO THE ENTERPRISE-WIDE RISK ASSESSMENT. IN THIS PRESENTATION, I WILL COVER THE BACKGROUND AND METHODOLOGY OF THE WORK THAT WE DID. WE WILL COVER SOME PROGRESS MADE ON
RISKS THAT WE HAD IDENTIFIED IN 2025. AND THEN WE WILL DISCUSS RISKS ED92ING SPECIAL ATTENTION IN 2026. AND FINALLY, WE WILL CLOSE THINGS OUT WITH A BIT OF A DISCUSSION ON ENTERPRISE RISK MANAGEMENT, WHICH IS SOMETHING THAT OUR OFFICE HAS DISCUSSED WITH THE AUDIT COMMITTEE AS WELL AS THE CITY COUNCIL IN THE PAST. SO FOR THIS PARTICULAR REPORT, WE SURVEYED ABOUT 120 INDIVIDUALS ACROSS THE CITY. MOSTLY ELECTED LEADERS, APPOINTED LEADERS, AND OTHER KEY STAFF MEMBERS THROUGHOUT THE ORGANIZATION. WE MET WITH MANAGEMENT AND STAFF ACROSS THE CITY HOLDING NEARLY 30 MEETINGS WITH CITY OFFICIALS TO GATHER THEIR
INPUT. WE REVIEWED VARIOUS BUDGETS AND CONSIDERED PRIOR RISK ASSESSMENTS SUCH AS LAST YEAR'S AND THE YEAR BEFORE. WE ALSO LOOKED AT RISK ASSESSMENTS FROM OTHER CITIES AND DIFFERENT REPORTS. WE WANT TO MAKE SURE THAT WE ARE PROVIDING AND FOLLOWING OUR OWN BEST PRACTICES IN ANY STANDARDS, AND SO WE DO REGULARLY LOOK AT SIMILAR REPORTS FROM CITIES OUTSIDE OF MINNESOTA AS WELL. AND THEN WE LOOKED AT CURRENT INDUSTRY TRENDS AND THOSE BEST PRACTICES I MENTIONED. AS FAR AS PROGRESS
MADE ON RISKS THAT OUR OFFICE IDENTIFIED IN 2025, THE FIRST FEW HERE ARE FOCUSED ON SOME ACTUAL WORK AND CHANGES THAT HAPPENED WITHIN OUR OFFICE. WE COMPLETED FOUR AUDIT REPORTS, FIVE ADVISORY MEMOS IN 2025. WE ANTICIPATE THIS WORK TO INCREASE SIGNIFICANTLY NOW THAT WE HAVE AN INVESTMENT IN OUR OFFICE THAT I'LL COVER HERE IN A MOMENT. WE WERE ABLE TO WORK WITH THE ADMINISTRATION TO CLOSE 28 AUDIT ISSUES IN 2025. WE PROVIDE UPDATES AT EACH AUDIT COMMITTEE MEETING ON THOSE CLOSED ISSUES AND WHEN WE GET INTO OUR AUDITOR UPDATE
AT THE END OF THIS MEETING, WE WILL TALK ABOUT A FEW MORE CLOSED ISSUES THAT THE ADMINISTRATION HAS TAKEN CARE OF. IN 2025, WE HAD THE GOOD FORTUNE OF COUNCIL INVESTING IN THE OFFICE OF CITY AUDITOR. WE WERE ABLE TO INCREASE OUR ACTUAL STAFFING SIZE FROM EIGHT FTEs TO 14 FTEs. I WILL PROVIDE A LITTLE BIT MORE INFORMATION ON THAT IN THE AUDITOR UPDATE AS WELL, BUT THAT IS A GREAT INVESTMENT IN OVERSIGHT AND ACCOUNTABILITY FOR THE CITY OF MINNEAPOLIS. AND WE HAVE STARTED BUILDING SOME MOMENTUM TOWARDS BUILDING OUT AN ENTERPRISE RISK MANAGEMENT BODY OR GROUP OR FUNCTION AS THE CITY COUNCIL CONTINUES TO CONSIDER SOME
RECOMMENDATIONS IN THAT AREA. THE ADMINISTRATION HAS STREAMLINED THE COMMUNICATIONS DEPARTMENT. WE'VE SEEN THIS OVER THE LAST SEVERAL MONTHS BEING BENEFICIAL IN THE EMERGENCY RESPONSE AND THE COMMUNICATIONS RELATED TO THE EMERGENCY RESPONSE WITH OPERATIONAL METRO SURGE, AND THEN WE'VE ALSO SEEN SOME PROGRESS WITH THE I.T. DEPARTMENT PLANNING FOR AI POLICIES IN IN ADDITION TO BASIC GUIDELINES. SO THE RISKS NEEDING SPECIAL ATTENTION IN 2026, YOU'LL
NOTICE BASED ON THE REPORT BUT ALSO THIS PRESENTATION THAT WE CAME AT IT A LITTLE BIT DIFFERENTLY THIS YEAR. RATHER THAN LOOKING AT RISKS FROM YOUR STANDARD OPERATIONAL, FINANCIAL, REPUTATIONAL, THOSE RISKS THAT ALL AUDIT STANDARDS KIND OF OUTLINE, WE DECIDED TO FOCUS ON FOUR KEY RISKS THAT WE HEARD THROUGHOUT OUR CONVERSATIONS. WE RECEIVED FEEDBACK THROUGHOUT OUR SURVEYS. THE FIRST BEING BUDGETARY RISKS. THERE ARE SIGNIFICANT FINANCIAL RISKS TO THE CITY THAT WILL IMPACT SERVICE DELIVERY. IT WILL IMPACT SERVICE LEVELS.
IT WILL IMPACT THE COST OF BORROWING AND IT WILL IMPACT PROPERTY TAX OBLIGATIONS OF RESIDENTS AND BUSINESSES. WE'LL GET INTO THIS A LITTLE BIT MORE IN THE NEXT FEW SLIDES. THE SECOND RISK THAT IS NEEDING SPECIAL ATTENTION THIS YEAR IS RELATED TO FEDERAL OPERATIONS, AND SAFETY OF EMPLOYEES, AND CITIZENS AND RESIDENTS WITHIN THE CITY ITSELF. FEDERAL ACTIONS INCREASE THE RISK TO RESIDENT SAFETY, LEGAL EXPOSURE TO THE CITY, AND FINANCIAL DEFICIT. THE THIRD RISK IS CONTRACT OVERSIGHT, LACK OF UNIVERSAL POLICY AND
INCONSISTENT OVERSIGHT, EXPOSED THE CITY TO SIGNIFICANT RISK OF CONTRACT FRAUD, WASTE, AND ABUSE. AND FINALLY RISKS RELATED TO CITY CULTURE AND TRUST, UNMANAGED ORGANIZATIONAL CULTURE RISK CAN UNDERMINE EMPLOYEE MORALE AND DIMINISH PUBLIC TRUST. ALL RIGHT, SO GETTING INTO THE FIRST RISK, AND KEEP IN MIND THESE ARE RISKS, THESE ARE THINGS THAT WERE IDENTIFIED BY THE FOLKS THAT WE INTERVIEWED, BY THE SURVEYS THAT WE COMPLETED, AND THERE ARE SOME SIGNIFICANT BUDGETARY RISKS AS MANY OF YOU ARE AWARE OF THAT HAVE BEEN EXACERBATED
RECENTLY BY OPERATION METRO SURGE. THESE RISKS WILL AFFECT RESIDENTS, BUSINESSES, AND CORE SERVICES. IT COULD LEAD TO HIGHER BORROWING COSTS, STAFFING SHORTAGES, AND SERVICE REDUCTIONS. AND THE CITY NEEDS TO REALLY START WORKING AND CONSIDERING WHAT IT WILL LOOK LIKE WITH, WITH THIS CHANGE TO OUR REVENUE. BUT ALSO TO OUR EXPENSES AS THEY'VE INCREASED SIGNIFICANTLY OVER THE LAST FIVE OR SIX WEEKS. WITHOUT NEW REVENUE IT WILL BE DIFFICULT TO SUSTAIN THE SERVICES THAT RESIDENTS EXPECT. NEW REVENUE IN THIS CASE MAY BE SUPPORTED
BY FUNDING THAT THE CITY REQUESTS FROM THE STATE LEGISLATURE. ADDITIONALLY, THE CITY SHOULD BE PREPARED TO READJUST TAX LEV LEVY EXPECTATIONS IN FUTURE YEARS. SPECIFICALLY, THE BUDGETARY IMPACTS OF RECENT FEDERAL ACTIONS, THESE SIGNIFICANT AND UNPLANNED FINANCIAL IMPACTS HAVE BEEN QUITE NOTICEABLE IN OUR CITY. THE CITY COUNCIL RECENTLY REALLOCATED $1. 5 MILLION TO URGENT NEEDS, INCLUDING IMMIGRATION, LEGAL SERVICES, AND RENTAL ASSISTANCE. I WANT TO POINT OUT THAT WE FINISHED
THIS REPORT IN THIS PRESENTATION PRIOR TO THE COUNCIL'S LAST CYCLE WHERE THEY INVESTED EVEN MORE FUNDS TO HELP THE RESIDENTS OF MINNEAPOLIS. EVENT CANCELLATIONS D, DECLINING VISITOR TRAFFIC, ALL AFFECTS THE REVENUE OF THE CITY AS WE DO HAVE A CITY SALES TAX. $5 MILLION OF UNPLANNED AND UNBUDGETED OVERTIME, AND THIS NUMBER CONTINUES TO GROW, ALTHOUGH THE, THERE IS AN ACTIVE DRAW DOWN IN FEDERAL AGENTS IN THE CITY. THERE IS A PROJECTED $1. 5 MILLION COST PER WEEK OF OVERTIME AND
EXPENSES. THIS IS ALL ON TOP OF THE ESTIMATED 2 $203 MILLION THAT HAS BEEN ESTIMATED TO IMPACT THE OVERALL COMMUNITY. THE LAST BULLET ITEM HERE IS THE PRELIMINARY IMPACT ASSESSMENT AND RELIEF NEEDS OVERVIEW THAT CAME OUT OF THE EMERGENCY OPERATIONS DEPARTMENT WE WERE ABLE TO LOAN ONE OF OUR AUDITORS TO THAT OFFICE OVER THE LAST FIVE OR SIX WEEKS, AND THEY ACTUALLY PUT A SIGNIFICANT AMOUNT OF TIME INTO BUILDING OUT THAT REPORT, AND THERE IS SOME GREAT INFORMATION ABOUT THE COSTS TO THE CITY IN THAT
REPORT. SO THAT CAN BE FOUND THROUGH THE LINK ON THE SLIDE HERE. AS FAR AS RECOMMENDATIONS RELATED TO BUDGET, THE RECOMMENDATIONS THAT WE'VE DEVELOPED FOR THIS RISK ASSESSMENT ARE NOT ONES THAT WE WILL TRACK LIKE WE NORMALLY DO WITH AUDIT RECOMMENDATIONS. THESE ARE THINGS TO BE AWARE OF, THINGS TO TAKE INTO DELIBERATIONS, STRATEGIC PLANNING, BUT WE DO RECOMMEND THAT REGULAR RISK REVIEWS AND BUDGET PLANNING IS DONE TO REFLECT DIFFERENT SCENARIOS. I THINK THAT ADOPTING AN ENTERPRISE RISK MANAGEMENT POSTURE GOES ALONG WITH THIS. WE THINK THAT THE FINANCE
DEPARTMENT SHOULD UPDATE ITS FORECASTS OVER THE NEXT SEVERAL YEARS ON PAGE 60 OF THE BUDGET BOOK THEY HAVE SOME PROJECTED FORECASTS FOR MAXIMUM TAX LEVIES, FOR THE NEXT SEVERAL YEARS I BELIEVE THAT THOSE SHOULD ALL BE REVIEWED, UPDATED, AND COMMUNICATION SHOULD START BEING DEVELOPED TO PROVIDE TO RESIDENTS TO UNDERSTAND THE REAL IMPACTS OF THE POTENTIAL NEED FOR INCREASING REVENUE. THE CITY SHOULD PRIORITIZE CORE SERVICES, SET GUARDRAILS FOR ANY CUTS THAT WOULD OCCUR, AND CLEARLY COMMUNICATE THE
POSSIBILITY OF PROPERTY TAX INCREASES. THE CITY SHOULD INVENTORY GRANT DEPENDENCIES AND AT-RISK POSITIONS, AND PREPARE CONTINGENCY STAFFING PLANS, AND THE CITY SHOULD INCREASE STAKEHOLDER ENGAGEMENT IN THE BUDGET PROCESS, INCLUDING STRUCTURED INPUT FROM THE PARKS BOARD. SO WE TALKED A BIT ABOUT THE FEDERAL OPERATIONS IT'S RELATED TO BUDGET, BUT IT'S SUCH A RISK TO THE CITY THAT IT GETS ITS OWN CATEGORY AS WELL. OPERATION METRO SURGE CERTAINLY INTRODUCED UNPRECEDENTED
DISRUPTIONS TO REGULAR CITY OPERATIONS. ACTIONS HAVE CONFIRMED EARLIER CONCERNS THAT OUR OFFICE SHARED IN THE 2025 RISK ASSESSMENT, BUT IT'S ALSO INTRODUCED NEW RISKS ABOUT COMPLIANCE, FINANCE, AND SAFETY OF EMPLOYEES AND RESIDENTS. OUR RISK ASSESSMENT DISCUSSIONS FOR THE 2026 RISK ASSESSMENT STARTED IN NOVEMBER AND DECEMBER, AND SO WHILE WE WERE GOING THROUGH SOME OF THESE CONVERSATIONS, IN FACT MR. POUDYAL AND I WERE SITTING IN A RISK ASSESSMENT CONVERSATION WHEN WE FIRST LEARNED OF INCREASED FEDERAL PRESENCE AND THE DEATH OF RENEE GOOD AND THINGS RAPIDLY CHANGED FROM
THERE. SO THE OVERALL RESPONSE THAT WE GOT RELATED TO THIS RISK ASSESSMENT CHANGED FROM GENERAL CITY OPERATIONS TO VERY HYPERFOCUSSED OPERATIONS JUST IN THE PERIOD OF TIME THAT WE WERE DEVELOPING THIS WORK. SO I DO WANT TO POINT OUT THAT THE GREATEST CHALLENGE IS THAT UNCERTAINTY. WE'VE LEARNED IN THE LAST COUPLE WEEKS THAT THERE IS A DRAWDOWN IN THE FEDERAL PRESENCE. AND THAT'S GOOD NEWS AS IT'S RELATED TO SAFETY OF RESIDENTS, BUT ALSO THE CITY'S BUDGET. I DO WANT TO NOTE THOUGH THAT RECENT
RECOGNITIONS SUCH AS THE CITY'S NOBEL PEACE PRIZE NOMINATION DOES OFFER HOPE FOR IMPROVING PUBLIC PERCEPTION, AND AT THE SAME TIME THESE RISKS REMAIN SIGNIFICANT. DEPARTMENTS ARE NAVIGATING COMPLEX FEDERAL DIRECTIVES THAT INCREASE COMPLIANCE CHALLENGES AND ADDITIONAL LITIGATION EXPOSURE. SO AS FAR AS RESIDENT EMPLOYEE SAFETY, WE'VE TALKED ABOUT THIS A LITTLE BIT. AND WE ELABORATE MORE IN THE REPORT. BUT CERTAINLY LARGE GATHERINGS, EMOTIONALTY CHARGED INTERACTIONS, DYNAMIC SCENES, THEY RAISE THE LIKELIHOOD OF INJURIES AND SERVICE DELAYS. RESIDENTS ESPECIALLY
NEIGHBORHOODS WITH THAT HEAVY FEDERAL ACTIVITY REPORT -- HAVE REPORTED HEIGHTENED FEAR AND ANXIETY. SOME RESIDENTS AVOID PUBLIC SPACES, BUSINESSES, SERVICES, WHICH REDUCES THEIR ACCESS TO CARE AND FOOD AND EMPLOYMENT. AND AS I NOTED, THE REPORT THAT THE CITY RECENTLY PUBLISHED HAS IMPACT -- HAS IDENTIFIED THESE TO BE ABOUT $203 MILLION IN ACTUAL COSTS TO THE COMMUNITY. OPERATION METRO SURGE HAS ALSO LED TO ADDITIONAL LITIGATION AND COMPLIANCE RISK. MINNEAPOLIS
HAS JOINED LAWSUITS AGAINST THE FEDERAL GOVERNMENT, CHALLENGING BOTH GRANT CONDITIONS AND CONTESTING THE FEDERAL SURGE. THE CITY IS FACING LITIGATION THREATS AND VARIOUS FEDERAL INVESTIGATIONS. RESOURCES HAVE BEEN DIVERTED TO RESPOND TO LITIGATION AND INQUIRIES. AND ONE OF THE RECOMMENDATIONS THAT WE'LL COVER HERE IS IF POSSIBLE, MOVING SOME FUNDING TO THE CITY ATTORNEY'S OFFICE TO HELP WITH SOME OF THIS LITIGATION WORK. THE CITY'S INCIDENT RESPONSE. ONE THING THAT DO WANT TO TALK ABOUT AND I'M HAPPY TO ANSWER QUESTIONS ABOUT WHEN I'M DONE WITH THIS
PRESENTATION, THE OFFICE OF CITY AUDITOR LIKE SO MANY PEOPLE IN THE CITY HAS FELT HOPELESS -- HELPLESS, SORRY, OVER THE LAST SEVERAL WEEKS BECAUSE OUR WORK IS TYPICALLY RETROSPECTIVE. WE LOOK BACK AT RESPONSE. SO WHILE THINGS HAVE BEEN UNFOLDING, WE HAVE TRIED TO PULL IN AS MUCH INFORMATION AS POSSIBLE. WE HAVE TRIED TO GET INTO A POSITION WHERE IF A REQUEST IS LATER MADE FOR OUR OFFICE TO REVIEW ANY CITY ACTIONS, RELATED TO OPERATION METRO SURGIC, WE'D BE IN GOOD POSITION TO TO THAT. AND AS
SUCH, WE HAVE ASSESSED GENERALLY THE CITY'S RESPONSE AND THOUGHT QUITE HIGHLY OF THE COMMUNICATIONS AND THE EMERGENCY RESPONSE. WE THINK THE EMERGENCY OPERATIONS DEPARTMENT HAS DONE A FINE JOB, AND THE, THE JIC HAS ALSO DONE A NICE JOB OF COMMUNICATING BOTH WITH CITY STAFF AND RESIDENTS. THE REASON I BRING THIS UP IS BECAUSE THIS PAST SUMMER WE HAD RECOMMENDATIONS TO IMPROVE THE COMMUNICATION FLOW WHEN THERE WAS AN ICE ACTIVITY IN JUNE OF 2025, AND THE CITY DID INTEGRATE THE LEGISLATIVE DEPARTMENT IN THEIR COMMUNICATIONS CHANNELS, AND THAT HELPED WITH ENSURING THAT
PEOPLE IN THE LEGISLATIVE DEPARTMENT WERE ON THE SAME PAGE WITH THE ADMINISTRATION. RECOMMENDATIONS RELATED TO FEDERAL OPERATIONS AND SAFETY. I'M NOT GOING TO READ THROUGH ALL OF THESE, BUT THE CITY IS ACTIVELY DOING MOST OF THEM. JUST TO TOUCH ON A FEW, IT'S, WE NEED TO CONTINUE THAT UNIFIED COMMUNICATION. WE NEED TO PROVIDE THAT COMMUNICATION IN MULTIPLE LANGUAGES. WE NEED TO GET IT OUT TO MEMBERS OF THE PUBLIC AS QUICKLY AS POSSIBLE TO HELP AVOID ANY, ANY RUMORS, ANY INACCURACIES IN INFORMATION. WE CERTAINLY NEED TO MANAGE FATIGUE OF STAFF AND PROTECT STAFF'S PHYSICAL AND MENTAL HEALTH. AND THEN WE NEED TO AS
I MENTIONED STRENGTHEN THE LEGAL CAPACITY WITHIN OUR OFFICE OF CITY ATTORNEY. THE THIRD OF FOUR RISKS THAT WE'RE HIGHLIGHTING THIS YEAR IS CONTRACT OVERSIGHT. THIS IS NOT NEW TO THE AUDIT COMMITTEE AS WE'VE LOOKED AT SPECIFIC CONTRACTS OVER THE LAST YEAR AND ALSO MADE GENERAL COMMENTS ABOUT THE CITY'S CONTRACT OVERSIGHT. THE DECENTRALIZED CONTRACT MANAGEMENT THAT THE CITY OPERATES UNDER DOES CREATE RISK OF ERRORS AND MISUSE. THERE IS NONSTANDARDIZED CONTRACT LANGUAGE, INCONSISTENT COMPLIANCE DOCUMENTATION, LACK OF PROPER VENDOR VETTING, AND A, INSUFFICIENT FORMAL REPORTING PROCESS FOR
NONPROFIT VENDOR MISCONDUCT. THE CITY HAS MADE EFFORTS TO IMPROVE CONTRACT OVERSIGHT THROUGH STAFF TRAINING. THE CITY ATTORNEY'S OFFICE HAS TRAINED WELL OVER 100 INDIVIDUALS ACROSS THE CITY IN CONTRACT MANAGEMENT. BUT TRAINING ONLY GOES SO FAR IF THERE'S NOT POLICY THAT GOES ALONG WITH IT. SO WE RECOMMEND THAT THOSE STANDARD POLICIES BE CREATED BY THE ADMINISTRATION FOR CONTRACT OVERSIGHT. WE ALSO THINK THAT A CROSS-DEPARTMENTAL TEAM TO PROVIDE CONTRACT OVERSIGHT SUPPORT SHOULD BE BUILT. THIS IS SIMILAR TO A GOVERNANCE TEAM
OF SORTS, ONE THAT CAN HELP BUILD OUT CONTRACT OVERSIGHT POLICY, ONE THAT CAN ANSWER QUESTIONS, WE HAVE SOME DEPARTMENTS, SUCH AS PUBLIC WORKS THAT DO MANY, MANY CONTRACTS A YEAR AND DO A GREAT JOB OF MANAGING THOSE AND WE HAVE OFFICE OF CITY AUDITOR THAT MAY HAVE ONE OR TWO CONTRACTS A YEAR AND THE SMALLER OFFICES CERTAINLY HAVE LESS SUPPORT IN THAT CONTRACT MANAGEMENT AND OVERSIGHT. WE DO THING THAT THOSE CAPACITY CHECKS AND ADDITIONAL TRAINING TO ENSURE VENDORS CAN MEET CITY REQUIREMENTS. WE AS A CITY TRY TO
MAKE THE BARRIERS TO ENTRY FOR OUR VENDORS AS LOW AS POSSIBLE BECAUSE WE WANT LOCAL VENDORS HELPING WITH OUR CITY WORKS. BUT THAT DOES COME WITH RISKS THAT WE NEED TO MITIGATE. AND THEN FINALLY, STRENGTHENING REPORTING MECHANISMS TO MAKE IT EASY TO REPORT CONCERNS OF WRONGDOING OR FRAUD. THIS IS SOMETHING THAT OUR OFFICE WILL TAKE TO THE ADMINISTRATION, MAKE IT EASIER WITHIN OUR WEB SITES AND OUR DIFFERENT COMMUNICATION CHANNELS FOR RESIDENTS AND STAFF TO REPORT WRONGDOING. ALL RIGHT, THE LAST OF FOUR RISKS THAT WE'RE HIGHLIGHTING THIS YEAR ARE RELATED TO
CULTURE AND TRUST. KEEP IN MIND THESE ARE THINGS THAT WE HEARD FROM THOSE LEADERS WE'VE INTERVIEWED. THOSE STAFF MEMBERS AND KEY PERSONNEL THAT WE RECEIVED SURVEY RESPONSES FROM; AND SOME OF THE THINGS THAT WE HEARD ARE THAT THERE ARE COMMUNICATION GAPS THAT EXIST BETWEEN THE COUNCIL AND THE ADMINISTRATION AS WELL AS DEPARTMENTS. THAT THERE ARE UNCLEAR ROLES, RESPONSIBILITIES, AND SOMETIMES THAT UNCLEAR COMMUNICATION CAN LEAD TO DUPLICATION OF EFFORTS, OPERATIONAL DRAG, DEPARTMENTS OPERATING IN SILOS WHICH IS A THEME WE HEARD REGULARLY, LOSS OF
EXPERIENCED STAFF, AND INCONSISTENT MESSAGING THAT COULD ERODE PUBLIC TRUST AND CONFIDENCE. IN THIS AREA, THE RECOMMENDATIONS THAT WE HAVE ARE TO HAVE THE ADMINISTRATION, THE COUNCIL, ANY LEADERS THROUGHOUT THE CITY HELP DEFINE ROLES AND RESPONSIBILITIES AND EXPECTATIONS. THROUGH ENTERPRISE BOID POLICIES. NOW WE ARE AWARE THAT THERE IS SOME WORK THAT IS BEING DONE TO CREATE A PROCESS FOR DEVELOPING, TRACKING, UPDATING ENTERPRISE-WIDE POLICIES AND SO WE WANT TO ALSO ACKNOWLEDGE THE GOOD WORK THAT'S BEEN STARTED IN THIS AREA. WE RECOMMEND THAT CONTINUE, AND THAT THOSE
POLICIES GET DOCUMENTED. WE THINK THAT STANDARDIZING INTERNAL AND EXTERNAL COMMUNICATION PRACTICES WOULD BE BENEFICIAL, ONE THING THAT WE HEARD FROM RESPONDENTS WAS THAT INDIVIDUALS DON'T KNOW WHO IS ALLOWED TO TALK TO THE MEDIA AND WHO IS NOT. INDIVIDUALS DON'T KNOW WHO HAS THE AUTHORITY TO DISSEMINATE INFORMATION OUTSIDE OF THE CITY AND WHO DOES NOT. AND WE SEE THAT AS A RISK TO THE CITY. WE THINK THERE SHOULD BE STANDARD PROCESSES AND DELEGATED AUTHORITIES FOR VARIOUS COMMUNICATIONS. WE THINK THAT
THERE SHOULD BE JOINT TRAINING FOR ELECTED OFFICIALS AND STAFF; OF COURSE THIS IS SOMETHING THAT'S BEEN ONGOING, SOMETHING THAT'S BEEN GOING SINCE THE FIRST WEEK OF THIS PARTICULAR TERM. AND I THINK THAT SHOULD CONTINUE. WE THINK THAT THERE SHOULD BE STANDARD -- EXCUSE ME, THERE SHOULD BE A STANDING GOVERNANCE OVERSIGHT COMMITTEE. THE ADMINISTRATION RIGHT NOW DOES NOT SEEM TO HAVE A GOVERNANCE COMMITTEE. OF COURSE, EVERYBODY IS WELCOME TO OPERATE THEIR ORGANIZATIONS AS THEY SEE FIT, BUT I DO THINK THAT HAVING AN ENTERPRISE RISK MANAGEMENT POSTURE ALONG WITH A GOVERNANCE COMMITTEE CERTAINLY HELPS WITH TONE AT THE TOP. IT HELPS WITH
POLICYMAKING. IT HELPS WITH DECISION MAKING. AND IT CERTAINLY WILL HELP WITH COMMUNICATION AS WELL. AND THEN FINALLY WE THINK THAT THERE SHOULD BE QUARTERLY DEPARTMENTAL REPORTS THAT ARE OFFERED TO THE CITY COUNCIL. I THINK SOME OF THIS COMMUNICATION IS BEING BUILT INTO THE 2026 SESSION HERE, AND THESE ARE AGAIN THINGS THAT WE'VE HEARD THROUGH OUR CONVERSATIONS, AND WE WANTED TO MAKE SURE TO HIGHLIGHT THEM. ALL RIGHT. SO IN CONCLUSION, WITH THE RISK ASSESSMENT, MANAGING THOSE FOUR RISKS CAN
HELP CERTAINLY REDUCE COSTS, CERTAINLY HELP IMPROVE SERVICE DELIVERY TO RESIDENTS, BUT IT DOES TAKE A COORDINATED EFFORT ACROSS LEADERSHIP DEPARTMENTS AND ELECTED OFFICES. ALL OF THESE RISKS ARE INTERCONNECTED AS YOU SAW BETWEEN BUDGET AND THE FEDERAL OPERATIONS AND CULTURE AND TRUST. I MEAN, THEY ARE ALL INTERRELATED AND THAT IS WHY RISK MANAGEMENT IS SO IMPORTANT. ADS I PROMISED, THE BIGGEST RECOMMENDATION TO COME FROM OUR OFFICE ON THIS RISK ASSESSMENT IS THAT THE CITY SHOULD BOLSTER ITS RISK
MANAGEMENT POSTURE. ENTERPRISE RISK MANAGEMENT CAN HELP IN ALL OF THE THINGS THAT WE'VE DISCUSSED. THE OFFICE OF CITY AUDITOR OR INTERNAL AUDIT IN GENERAL IS ONE OF THREE LEGS OF A STOOL WHEN YOU CONSIDER RISK MANAGEMENT. THE IMAGE ON THE SCREEN HERE IS SOMETHING THAT IS REGULARLY REFERRED TO BY OUR OFFICE, BUT ALSO AUDIT SHOPS ACROSS THE COUNTRY. THE IIA WHICH IS ONE OF THE GOVERNING BODIES OF THE AUDIT STANDARDS THAT WE FOLLOW DOES A GOOD JOB OF TALKING ABOUT RISK MANAGEMENT. THES USGA ALSO
HAS WHAT'S COLLOQUIALLY KNOWN AS THE GREEN BOOK, AND WE'VE TALKED ABOUT THIS WITH THE AUDIT COMMITTEE IN THE PAST. IT IS SOMETHING THAT WE THINK THE ADMINISTRATION SHOULD ADOPT AS FAR AS STANDARDS OF INTERNAL CONTROL. WE THINK ALL ORGANIZATIONS SHOULD HAVE SOME SORT OF STANDARDS OF INTERNAL CONTROL, AND THESE WERE SPECIFICALLY DEVELOPED FOR THE FEDERAL GOVERNMENT BUT MANY LOCAL AND STATE GOVERNMENTS HAVE ADOPTED THEM BECAUSE THEY FIT SO WELL. AND IN FACT, THEY ARE A COMPANION TO THE GAO GOVERNMENT AUDITING STANDARDS THAT WE FOLLOW. SO AN EFFECTIVE ERM FRAMEWORK SHOULD ALIGN RISKS WITH RESPONSIBLE STAFF, CONTINUOUSLY MONITOR AND
ADAPT CONTROLS, IMPROVE EARLY DETECTION, AND ESCALATION OF ISSUES AND BREAK DOWN THOSE INFORMATION SILOS THAT WEEK WE'VE TALKED ABOUT. THE CITY SHOULD DEDICATE THAT RISK MANAGEMENT STAFF. THIS IS SOMETHING THAT WE TALKED ABOUT AND THAT THERE WAS SOME MOMENTUM IN 2025 WITH, AND I DO KNOW THAT IT'S A CARRY FORWARD ITEM THAT THE COUNCIL WILL BE TAKING UP AGAIN IN 2026. WE THINK THAT THE CITY SHOULD CREATE A RISK MIDI FOR INTERNAL CONTROL STANDARDS. THISES COULD BE THE SAME AS THE GOVERNANCE BODY WE TALKED ABOUT OR THE POLICY BODY, BUT ALL OF THESE IDEAS ARE TO ENSURE THAT PEOPLE ACROSS ALL DEPARTMENTS
ARE COMMUNICATING ABOUT RISK ON A REGULAR BASIS. WE THINK THAT THERE SHOULD BE TRAINING RELATED TO ERM AND INTERNAL CONTROL FRAMEWORKS. AND THEN FINALLY WE THINK THE CITY SHOULD ADOPT EITHER THE GREEN BOOK OR SOME OTHER INTERNAL CONTROL STANDARDS. I WILL SAY THAT ONE OF THE RECOMMENDATIONS WE MADE LAST YEAR WAS FOR THE CITY TO FOCUS MORE ON USING THE GREEN BOOK. WE BUILT THAT INTO THE AUDIT CHARTER THIS YEAR SO IT IS SOMETHING THAT WE WILL USE AS CRITERIA ENOUR ODD -- IN OUR AUDITS GOING FORWARD, AND IT IS SOMETHING THAT WE WILL USE TO EDUCATE THE ADMINISTRATION AS FAR AS BEST PRACTICES WITH INTERNAL
CONTROLS AS WELL. ALL RIGHT SO THAT BRINGS ME TO THE END OF THE RISK ASSESSMENT PRESENTATION, AND I CAN TAKE QUESTIONS RELATED TO THIS BEFORE WE MOVE ONTO THE AUDIT PLAN. ≫ ANY QUESTIONS OR COMMENTS FROM MEMBERS? ON THE, FOR ME ON THE RECOMMENDATION FOR CULTURE AND TRUST AROUND CREATING A STANDING GOVERNANCE COMMITTEE, I'M ASSUMING YOUR INTENTION FOR THAT RECOMMENDATION IS FOR THE ADMINISTRATION TO CREATE THAT COMMITTEE? NOT LIKE A CITY COUNCIL COMMITTEE RECOMMENDATION. ≫ CORRECT, THAT'S CORRECT. ≫ AND THEN I'M WONDERING, YOU KNOW, WE HAVE THE FOR INSTANCE
THE PERMANENT REVIEW COMMITTEE JUST THIS. JUST THIS LAST CYCLE THERE WAS SOME DISCUSSION ON CITY COUNCIL AROUND SUSPENDING THE PRC DURING THE DURATION OF METRO SURGE. THAT ACTUALLY DID NOT PASS CITY COUNCIL. WE AS A BODY AGREED THAT WE THINK WE SHOULD HAVE THOSE CONTROLS IN PLACE. BUT THEN LAST YEAR WE ALSO ADOPTED THE POLICY, THE GUIDE TO THE CITY'S ENTERPRISE POLICY FRAMEWORK FORMALLY AS CITY COUNCIL, BUT THE RUB IS IN ALL OF THE DISCUSSION AROUND THIS IS AROUND THE AUTHORITY OF COUNCIL VERSUS THE ADMINISTRATION, AND I THINK
THIS IS WHERE AT LEAST IN MY CONVERSATIONS AROUND CULTURE AS A RISK IS WE CONSTANTLY GET -- IN THE WAY OF ETCH OO OTHER WHEN IT COMES TO THAT SEPARATION OF POWER, AND I THINK THAT IT'S NOT JUST THAT THE ADMIN NEEDS TO SET UP A COMMITTEE. I MEAN, I'M KIND OF MAYBE MEANDERING A LITTLE BIT HERE, BUT JUST TO SAY WE ALREADY HAVE THE PERMANENT REVIEW COMMITTEE AS A GOVERNANCE BODY. THERE IS THE POLICY REVIEW GROUP AS A SEPARATE BODY THAT'S DISCUSSED FOR THE POLICY FRAMEWORK. IS THE RECOMMENDATION TO CONSOLIDATE THOSE UNDER ONE OVERSIGHT AND
GOVERNANCE COMMITTEE? THAT'S QUESTION 1. AND THEN QUESTION 2 IS I THINK THAT THAT WOULDN'T GO FAR ENOUGH JUST FOR THE ADMINISTRATION TO HAVE THAT CONSOLIDATED SINGLE POINT OF REFERENCE. I THINK THERE NEEDS TO BE AN INTEGRATION AND ALIGNMENT WITH THE CITY CAN YOU BELIEVE AND I'M JUST WONDERING -- WITH THE CITY COUNCIL, AND I'M JUST WONDERING HOW YOU THINK ABOUT THAT. ≫ YEAH, I THINK YOU ARE RIGHT, CHAIR PAYNE. I THINK THAT COMBINING THE TWO COMMITTEES MAY BE EXPANDING THE SCOPE BEYOND WHAT ONE COMMITTEE SHOULD DO. I THINK THAT THE POLICY FRAMEWORK THAT IS, HAS
BEEN ADOPTED IN 2025 AND THAT'S GOING TO MOVE FORWARD IN 2026, HONESTLY I THINK THAT'S A GREAT START TOWARDS ADDRESSING SOME OF THE RISKS AND CONCERNS THAT WE HAD COMING OUT OF THIS RISK ASSESSMENT. I THINK THAT MORE CONNECTION BETWEEN THE COUNCIL AND THE ADMINISTRATION TOP LEADERSHIP WOULD BE VALUABLE. I DO THINK THAT IF THERE WERE OPPORTUNITIES FOR THE MAYOR'S OFFICE AND LEGISLATIVE LEADERSHIP TO MEET AND CONNECT AND DISCUSS STRATEGIC PRIORITIES, THAT WOULD BE INCREDIBLY VALUABLE BECAUSE THAT COULD LEAD THE WORK OF A GOVERNANCE TEAM WITHIN THE ADMINISTRATION. BUT I ALSO THINK THAT ONCE OR IF A GOVERNANCE TEAM LIKE THAT
IS FULLY OPERATIONAL, THERE SHOULD BE TIES TO THE CITY COUNCIL. SO TO YOUR CONCERNS ABOUT, YOU KNOW, THE, THE, MAYBE THE MISUNDERSTANDING ABOUT ROLES, I THINK THAT THOSE ALL CAN BE DOCUMENTED, DEVELOPED, AND THEN AGREED UPON, AND SO THAT THERE ISN'T DUPLICATION OF EFFORTS. AND QUITE FRANKLY, I THINK THE LEGISLATIVE DEPARTMENT'S DONE A GOOD JOB OF TRYING TO REACH OUT AND SET UP THESE, THESE CONVERSATIONS TO GET THE BALL ROLLING. SO AGAIN I WANT TO, I WANT TO MENTION THESE ARE RISKS. I THINK THAT MANY OF THEM ARE ALREADY THE
SAFEGUARDS ARE BEING DEVELOPED. THEY'RE IN THE WORKS. BUT I GUESS IF IT WERE UP TO ME, THE STRUCTURE I WOULD SEE OR LIKE TO SEE IS A GOVERNANCE COMMITTEE WITHIN THE ADMINISTRATION THAT HAS A SIMILAR STRUCTURE AS A POLICY COMMITTEE THAT WOULD HAVE TIES DIRECTLY INTO THE COUNCIL AND THEN THE INTERNAL CONTROLS ENTERPRISE RISK MANAGEMENT, THAT GROUP, THAT TEAM WOULD BE LED BY AN INDIVIDUAL RESPONSIBLE AND HELD RESPONSIBLE FOR ENSURING INTERNAL CONTROLS AND A POSTURE OF RISK MANAGEMENT EXISTS IN
THE CITY. AND THAT INDIVIDUAL IS RESPONSIBLE FOR HOLDING DEPARTMENT HEADS AND OTHERS RESPONSIBLE FOR ENSURING THAT THERE ARE SAFEGUARDS, RISK ASSESSMENTS, THINGS OF THAT NATURE. THIS WILL TAKE TIME, AND IT IS SOMETHING THAT I KNOW THAT THE COUNCIL HAS REACHED OUT TO ME AGAIN RECENTLY TO START THOSE CONVERSATIONS AS FAR AS THE ENTERPRISE RISK MANAGEMENT PIECE GOES, AND OUR OFFICE IS HAPPY TO HAVE THOSE CONVERSATIONS BECAUSE I THINK THAT HAVING THAT ERM PARTNER IN THE ADMINISTRATION, THAT CAN HELP
HOLD PEOPLE RESPONSIBLE FOR THE AUDIT FINDINGS THAT WE HAVE WILL ENSURE THAT THE WORK IS VALUABLE AND HONESTLY, TO ENSURE THAT OUR RECOMMENDATIONS ARE FOLLOWED THROUGH ON. ≫ EXCELLENT. MEMBER H OSBEIN. ≫ THANK YOU, CHAIR PAYNE. THANK YOU MR. TIMERMAN, FOR THIS. AND I APPRECIATE YOUR TEAM FOR BEING SO FLEXIBLE AND FLUID WITH THIS AS THE LAST EIGHT WEEKS HAVE UNFOLDED. I WILL SAY I'M LOOKING AT THIS KIND OF GREEN TRIANGLE OR I
DON'T KNOW SQUARE IMAGE. AND IT FEELS LIKE THE ERM PIECE IS KIND OF THE GREEN UNDERNEATH ALL OF THIS. ≫ SURE. ≫ AND I JUST, WHILE I THINK IT IS CRITICAL THAT YOU HAVE THESE FOUR BUCKETS OF RISKS NEEDING SPECIAL ATTENTION, THAT ERM THAT NOW IS KIND OF AT THE BACK OF THIS PRESENTATION REPORT, IT IMPACTS ALL OF THIS. AND I JUST DON'T WANT THE ADMINISTRATION AND OTHERS TO LOSE TRACK OF THAT BECAUSE I THINK A LOT OF THOSE THINGS
THAT WE'VE BEEN SEEING EVEN BEFORE OPERATION METRO SURGE ARE JUST GOING TO CONTINUE TO GET AMPLIFIED WHICH IS WHAT YOU HAVE COVERED HERE BEAUTIFULLY. AND HAVE WE HAD THAT, SO MUCH OF THESE OTHER PIECES WOULD'VE I THINK REALLY FALLEN INTO PLACE A LOT EASIER. AND THEN I WANTED TO -- THANK YOU FOR THE CULTURE AND TRUST BECAUSE WE TALKED ABOUT THAT KIND OF IF FOLKS DON'T FEEL LIKE THEY HAVE THAT SUPPORT, THEY'RE GOING TO CONTINUE TO LEAVE OR CONTINUE TO NOT KNOW THE RIGHT THING TO DO. JUST FROM ANY OF YOUR REVIEWS OR YOUR TEAM'S REVIEWS, AT THIS CURRENT TIME WITH KIND OF HEIGHTENED
WORK, EMOTIONAL WORK, PEOPLE GETTING FRUSTRATED, POTENTIALLY WITH RESOURCES NOT GETTING TO THE COMMUNITY, I KNOW THAT'S BEEN A BIG KEEP OF AS A -- BIG KIND OF COMMUNITY MEMBER ON THIS BOARD, THE AID THAT IS BEING OFFERED IS NOT NECESSARILY BEING EASILY TRANSFERRED TO THOSE THAT ARE MOST NEEDING IT. HOW DO WE ENSURE THAT IT'S NOT JUST THE MANAGER OF THAT DEPARTMENT OR THE MANAGER OF THAT PERSON THAT'S HELPING SUPPORT THAT FRUSTRATION TO THE RIGHT PATH AND THEM JUST NOT SAYING SURE, LET'S JUST GET IT OUT AS FAST AS WE CAN, WHICH IS ALSO KIND OF IMPORTANTY MY, MY URGE RIGHT NOW TOO. AND I
JUST THINK THATEROUS THAT THAT THAT'S GOING TO BE CRITICAL FOR THIS YEAR IN ADDITION TO THESE ITEMS BUT HAVING THAT MANAGEMENT LEVEL TRAINING OF SUPPORT OF HOW THAT ENDS UP KIND OF PLAYING OUT HERE AND KIND OF THE FLEXIBILITY THAT MIGHT NEED WITH OTHER HEIGHTENED RISKS THAT COME UP AS WE SEE WHAT THIS LOOKS LIKE IN TWO TO FOUR TO SIX TO FOUR YEARS. I DON'T KNOW. SO ANYWAY, THANK YOU FOR THAT. I JUST, YEAH, THE ERM PIECE REALLY FEELS LIKE THE BASELINE TO A LOT OF THIS. AND IF IT DOESN'T GET PRIORITIZED, WE'RE GOING TO SEE MORE FRACTURES IN THIS. ≫ YEAH, CHAIR PAYNE AND COMMITTEE MEMBER HOSBEIN. I
REALLY LIKE THE WAY THAT YOU PUT THAT AND I NOW WISH WE WOULD'VE CALLED THAT GREEN SQUARE ENTERPRISE RISK MANAGEMENT AND NEXT YEAR I THINK WE WILL. WHICH IS NICE TO HAVE THIS PARTNERSHIP. SO MY PLAN THIS YEAR IS TO DISTRIBUTE THIS TO ADMINISTRATION LEADERS AS WELL AS CITY COUNCILMEMBERS. AS YOU PROBABLY NOTICE AND I WILL TALK A LITTLE BIT MORE WITH THE AUDIT PLAN WE SEPARATED THE AUDIT PLAN AND THE RISK ASSESSMENT THIS YEAR FOR A VERY SPECIFIC REASON AND THAT IS WE WANTED THE RISK ASSESSMENT TO BE SOMETHING THAT COULD BE HELD IN HAND AND USED WHILE LEADERS GO THROUGH THEIR STRATEGIC
PLANNING, THEIR BUDGET PLANNING, AND THEY DON'T HAVE TO ANSWER ALL OF THESE QUESTIONS. THEY DON'T HAVE TO ADDRESS ALL OF THESE RECOMMENDATIONS. BUT THEY HAVE TO BE AWARE OF THEM. THESE ARE RISKS TO THE CITY THAT WE SHOULD BE BUILDING SAFEGUARDS AGAINST. AND SO TO YOUR, YOUR QUESTION, ABOUT MANAGERS HAVING THE RIGHT DECISION MAKING AUTHORITY OR THE RIGHT PEOPLE GETTING THE FUNDS TO THE RIGHT ORGANIZATIONS, I THINK THAT THOSE ARE THOSE TYPES OF RISKS THAT NEED TO BE CONSIDERED ON AN ANNUAL BASIS SO WE CAN PLOACTIVELY ANSWER THOSE QUESTIONS RATHER THAN BE SO
REACTIONARY IN NATURE. ≫ MEMBER WILLIAMS. ≫ THANK YOU. I WAS GOING TO ASK THIS QUESTION ON 6 BUT I'M GOING TO ASK IS NOW, AND I'M COMFORTABLE IF YOU WANT TO WAIT UNTIL 6. I COMPLETELY UNDERSTAND THE PROACTIVE NATURE OF CREATING THIS SPECIAL NEEDS AS WELL AS THE STRATEGIC PLAN BUT THE CONCERN I HAVE IS THE REACTIVE NATURE THAT IS SOMETIMES NEEDED. AN EXAMPLE OF THIS, 120 DAYS IF I WOULD'VE ASKED YOU TO CREATE THESE FOUR BOXES, SOMETHING TELLS ME IT WOULDN'T HAVE LOOKED LIKE THIS. ≫ RIGHT.
≫ AND I UNDERSTAND ONE OF THE CHALLENGES THAT ANY AUDIT GROUP HAS IS THAT YOU SAID IT EARLIER, IS THAT YOU AUDITTHENINGS THAT HAVE ALREADY HAPPENED. BUT I AM CURIOUS OF YOUR OPINION AND MAYBE APPROACH ON IF SOMETHING UNEXPECTED WERE TO HAPPEN IN 40 DAYS, HOW DOES THIS PLAN AS WELL AS THE AUDIT AND STRATEGIC PLAN ADJUST QUICK ENOUGH SO THAT WE'RE NOT TALKING ABOUT IT IN TWO YEARS ABOUT ALL THE THINGS THAT WE SHOULD HAVE DONE BUT WE ARE COMING UP WITH AN ACTIONABLE PLAN AS SOON AS WE CAN TO PROTECT THE CITY ON SOMETHING ELSE THAT COULD HAPPEN AS WELL.
≫ SURE. CHAIR PAYNE AND COMMITTEE MEMBER WILLIAMS, THAT'S A REALLY GREAT QUESTION. AND IT IS OFTEN A FEELING OF BEING BETWEEN A ROCK AND A HARD PLACE WHEN IT COMES TO AUDIT. WE DO HAVE THE GOOD FORTUNE OF BEING ABLE TO PROVIDE ADVISORY SERVICES, AND THOSE ADVISORY SERVICES IN MY OPINION ARE INCREDIBLY IMPORTANT TO BE BUILT INTO GOVERNING BODIES, TO BE BUILT INTO ENTERPRISE RISK MANAGEMENT COMMITTEES, AND TO BE BUILT INTO POLICYMAKING COMMITTEES. AND SO ALL OF THOSE COMMITTEES WHEN THEY ARE FORMING, WHEN THEY ARE EVEN CONSIDERING AN
INDIVIDUAL POLICY, AUDIT SHOULD HAVE A SEAT AT THAT TABLE BECAUSE AUDIT CAN LOOK AT THINGS THROUGH A LENS OF RISK AND PROVIDE RECOMMENDATIONS IN LIVE TIME. AND SO AUDIT DOES HAVE THE ABILITY IN THOSE SITUATIONS TO BE LIVE TIME HELP, TO BE PROACCOUNTIVE HELP IN THAT WAY -- PROACTIVE HELP IN THAT WAY. AS FAR AS LOOKING AT -- I MEAN YOUR ASSESSMENT ON THIS 40 DAYS FROM NOW VERSUS 120 DAYS AGO, I MEAN IT'S SPOT ON, AND THAT'S WHY THE ENTERPRISE RISK MANAGEMENT RECOMMENDATION IS THE KEY THAT'S WHY IT IS THE CONTO THIS YEAR'S RISK ASSESSMENT BECAUSE THAT IS THE
FOUNDATION FOR THIS CITY TO BE ABLE TO RESPOND, REACT, BUT IF A MANNER THAT IS -- IN A MANNER THAT IS PREPARED. I DO THINK THAT BASED ON OUR OBSERVATIONS OVER THE LAST FIVE, SIX WEEKSES THE EMERGENCY OPERATIONS DIVISION AS WELL AS COMMUNICATIONS AND OTHERS ACROSS THE CITY HAVE DONE A JOB THAT THEY WEREN'T EXPECTING, AND I DO THINK THAT THEY DEMONSTRATED SOME GOOD PREPARATION FOR RESPONDING TO THAT. BUT TO ANSWER YOUR QUESTION SPECIFICALLY ABOUT AUDIT, I THINK WE JUST NEED TO CONTINUE TO OFFER OUR SERVICES IN LIVE TIME FOR THOSE ADVISORY SERVICES.
WHEN WE GET TO THE AUDIT PLAN, YOU'LL SEE WE DID BUILD IN SOME TIME FOR THAT, AND WE ALSO NEED FOR OTHERS, INCLUDING FOLKS ON THE AUDIT COMMITTEE, TO REMIND THOSE BODIES, THOSE COMMITTEES, THOSE DECISION MAKING LEADERS THAT THEY SHOULD BE TALKING WITH AUDIT. THEY SHOULD BE THINKING ABOUT RISK, AND IF THEY'RE NOT DOING THAT, THEY SHOULD BE ASKING AUDIT TO BE THINKING ABOUT RISK. AND THAT'S A SERVICE WE CAN OFFER. ≫ YEAH, I WOULD ADD BUILDING OFF OF THE ADVISORY SERVICES COMPONENT, AFTER THE LAKE STREET RAID IN JUNE, THAT AFTER
ACTION REVIEW HAD A NUMBER OF RECOMMENDATIONS INCLUDING STRENGTHENING THE ADMINISTRATION ORDINANCE AND INCLUDING SOME OPERATIONAL CHANGES TO HOW COMMUNICATIONS HAPPENED. AND WE PASSED THAT SEPARATION ORDINANCE STRENGTH -- THE STRENGTH IN SEPARATION ORDINANCE IN DECEMBER OF LAST YEAR, AND WHEN METRO SURGE WAS STOOD UP, WE CERTAINLY LEARNED FROM THE JUNE INCIDENT AND THE LACK OF COMMUNICATION AND HAD MUCH BETTER COMMUNICATION BETWEEN COUNCILMEMBERS AND OUR EMERGENCY OPERATIONS AND THE INFORMATION CENTER THE IS THE COMPONENT OF EMERGENCY OPERATION THAT WE ARE MOST TIED INTO. SO I THINK PART OF IT IS
JUST UNDERSTANDING WHAT THE RISK ASSESSMENT SCOPE IS AND THEN ALSO HAVING SYSTEMS, STRUCTURES, AND RESOURCES IN PLACE FOR OTHER ASPECTS OF OUR AUDIT CAPACITY SO THAT WE CAN BE MUCH SMORE RESPONSIVE, AND I THINK ADVISORY SERVICES IS ACTUALLY A REFLECTION OF THAT, SO YEAH. ≫ THANK YOU. ≫ NOT SEEING ANYONE ELSE WITH COMMENTS OR QUESTIONS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THIS REPORT AND DIRECT STAFF TO PUBLISH THE REPORT. AND WE WILL TAKE UP ITEM NUMBER 6, WHICH IS RECEIVING AND FILING OF THE 2026 AUDIT AND STRATEGIC PLAN FOR APPROVAL.
AND I WILL ONCE AGAIN HAVE MR. CHAIRMAN PRESENT ON THAT ITEM. ≫ ALL RIGHT, THANK YOU, CHAIR PAYNE, AUDIT COMMITTEE. THE AUDIT PLAN AND STRATEGIC PLAN THIS YEAR, WE WILL COVER WHAT'S DIFFERENT ABOUT IT. WE WILL TALK ABOUT THE PURPOSE AND THE BACKGROUND. WE'LL GET INTO THOSE AUDITS THAT WE ARE PROPOSING FOR 2026. AND THEN WE WILL COVER THE NEW STRATEGIC PLAN, WHICH THE OFFICE HAS NOT FORMALIZED IN THE PAST. SO WHAT IS DIFFERENT? AND THIS IS ALL IN THE AUDIT PLAN REPORT IN THE EXECUTIVE SUMMARY. BUT AS I MENTIONED, WE SEPARATED OUT THE ENTERPRISE-WIDE RIDGE ASSESSMENT BECAUSE WE WANT THAT
TO BE -- RISK ASSESSMENT BECAUSE WE WANT THAT TO BE A DOCUMENT THAT LEADERS CAN USE IN THEIR DECISION MAKING, BUT WE ALSO WANT THE AUDIT PLAN TO BE OO DOCUMENT THAT YOU AS THE AUDIT COMMITTEE CAN USE, THE CITY COUNCIL CAN USE, AND OTHER LEADERS CAN USE TO KNOW WHAT'S COMING UP THIS YEAR. WE INCLUDED OUR UPDATED MISSION, VISION, AND VALUES. I KNOW I'VE SHARED THESE IN THE PAST. WE'RE ALSO GOING TO SHARE THEM AND ATTACH THEM TO THE RCA WITH THE AUDITOR UPDATES WITH THIS -- AUDIT COMMITTEE MEETING, SO THEY GET INTO THE, THE PUBLIC RECORD. WE PRIORITIZED WORK BY CONSIDERING RISK CAPACITY AND
OPT OPTIMIZATION OF AUDITOR HOURS. WE CREATED PRELIMINARY OBJECTIVE QUESTIONS FOR EACH AUDIT WHICH WILL HELP GET THE AUDIT ROLLING MORE QUICKLY AS WELL AS THE PRELIMINARY SCOPE FOR EACH AUDIT. AND WE ALSO ADDED STRATEGIC PRIORITIES, WHICH WE'LL GET TO. ALL RIGHT SO AS I MENTIONED, WE INCLUDED IN OUR REPORT THIS YEAR OUR UPDATED MISSION, VISION, AND VALUES. IN THE LAST YEAR WE UPDATED ALL OF THESE. WE DEVELOPED A VISION STATEMENT, THE WE HAD NOT HAD IN THE PAST.
AND WE DOCUMENTED THE VALUED THAT LEAD OUR WORK EACH AND EVERY DAY. INDEPENDENCE AND OBJECTIVITY OF COURSE ARE THE GUIDING PRINCIPLES THAT WE SAFEGUARD CLOSELY, BUT IT'S IMPORTANT THAT WE ALSO DOCUMENT THE VALUES IN WHICH WE WANT TO BRING INTO ALL OF OUR WORK. THE AUDIT PLAN INFORMS THE AUDIT COMMITTEE, THE COUNCIL, COMMITTEE ADMINISTRATION AND PUBLIC OF OUR PLANNED ACTIVITIES FOR THE UPCOMING YEAR. CITY ORDINANCE AND PROFESSIONAL AUDIT STANDARDS REQUIRE WORK. IT IS DESIGNED TO BE FLEXIBLE AS NEW RISKS MAY EMERGE. SO WE
ARE TRYING TO MAINTAIN SOME HOURS TO BE FLEXIBLE AS YOU NOTED. AND THEN ALSO THE PLAN IS INTENDED TO BE FLEXIBLE SO IF SOMETHING DOES COME UP, WE CAN BREAK CHANGES TO YOU AND UPDATE THE AUDIT PLAN THROUGHOUT THE YEAR. ALL RIGHT. SO THE PURPOSE AND BACKGROUND OF THE AUDIT PLAN. AS I MENTIONED, THE CITY ORDINANCES REQUIRE THE OFFICE OF CITY AUDITOR TO FOLLOW TWO SETS OF AUDITING STANDARDS. ONE IS THE GOVERNMENT AUDITING STANDARDS, AND ONE IS THE
GLOBAL INTERNAL AUDIT STANDARDS. THESE STANDARDS REQUIRE STRICT ADHERENCE TO ENSURE ACCOUNTABILITY, TRANSPARENCY, AND QUALITY IN ALL ENGAGEMENTS. THEY ALSO REQUIRE PLANNING, WHICH THE AUDIT PLAN DOES FOR 2026. THIS IS THE FIRST YEAR THAT WE'VE LOOKED AT OR CONSIDERED RESOURCE UTILIZATION. IT IS STANDARD IN MANY GOVERNMENT AUDIT SHOPS TO CALCULATE BASED ON A 70% RESOURCE UTILIZATION RATE, WHICH MEANS THAT OF YOUR AUDITORS, YOU START WITH THE ASSUMPTION THAT 70% OF
THE 2000ITH AY HOURS IS AUDITABLE HOURS. THIS YEAR BECAUSE OF SOME OF THE STRATEGIC PRIORITIES THAT WE HAVE BECAUSE HALF OF OUR STAFF IS NEW WITHIN THE LAST THREE MONTHS AND WE HAVE 2 MORE STAFF WE WILL BE BRINGING ON IN THE COMING THREE MONTHS, THAT WE'VE DEVELOPED THIS CALCULATION BASED ON A 50% UTILIZE UTILIZATION RATE. THESE ARE ESTIMATES. THESE ARE ADJUSTED THROUGHOUT THE YEAR, AND YOU'LL SEE THAT WHEN WE GET TO THE AUDIT PLAN, WE'VE INDICATED HOW MANY HOURS WE THINK EACH AUDIT WILL TAKE, WHICH WE ALSO NEED TO BE
FLEXIBLE WITH. ALL RIGHT. SO AS FAR AS THE AUDIT PLAN GOES, WE'LL START WITH THOSE THAT ARE IN PROGRESS. THE BODY WORN CAMERA AUDITS, THOSE ARE EFFECTIVELY DONE MAYBE A FEW HOURS LEFT HERE JUST TO WRAP THINGS UP AS FAR AS GETTING THINGS ATTACHED TO THE RCA, THINGS OF THAT NATURE. WE'VE GOT THE AFTER ACTION REVIEWS OF THE DEATH OF ALLISON LUGER, THE SHOOTING OF DAVIS MOTORY. WE BELIEVE THIS WORK WILL USE A FEW HUNDRED MORE HOURS INTERNALLY AS WELL AS MORE TIME FROM OUR CONTRACTED
LAW FIRM THAT'S HELPING WITH THIS WORK. WE HAVE THE NSD CONTRACT MANAGEMENT AND CONTRACTOR OVERSIGHT. THIS IS IN THE WORKS SCOPED FOR 2020 TO 2025. AGAIN, WITH ANY AUDIT WHERE WE'RE LOOKING AT CONTRACTS OR VENDOR PAYMENTS, WE ARE GOING TO CREATE AND REITERATE RECOMMENDATIONS FOR CONTRACT OVERSIGHT FOR THE ENTERPRISE AS A WHOLE. AND SO WE EXPECT RECOMMENDATIONS FOR ENTERPRISE-WIDE POLICY AND OVERSIGHT CHANGES THAT COME FROM THIS PARTICULAR REVIEW. A
NEW AUDIT WE HAVE BEGUN AND WE ACTUALLY START SHOULD OF THE PRELIMINARY WORK IS REVIEWING THE BEHAVIORAL CRISIS RESPONSE PROGRAM IS THE CONTRACTOR MEETING REQUIREMENTS THAT ARE OUTLINED IN THE CONTRACT WITH THE CITY. IS THE CITY PROVIDING EFFECTIVE OVERSIGHT? SO THIS ONE IS OWNED BY THE FIRE DEPARTMENT. MEET MINNEAPOLIS, WE'RE GOING TO TALK ABOUT THE CONTRACT WITH MEET MINNEAPOLIS. IT'S BEEN MANY YEARS SINCE THIS QUASI-GOVERNMENTAL ORGANIZATION WAS AUDITED SO WE WILL BE TAKING A LOOK AT THAT. THEY HAVE CERTAIN KEY PERFORMANCE METERS TO MEET SO WE WILL USE THOSE AS AUDIT CRITERIA. WE
WILL ENSURE THAT THEY HAVE EFFECTIVE INTERNAL CONTROLS, AND THAT THOSE ARE BEING FOLLOWED. SHOT SPOTTER WAS ONE THAT THE CITY COUNCIL HAD REQUESTED THAT IS ONE THAT IS IN THE WORKS RIGHT NOW AS WELL. THAT IS LOOKING AT THE PLACEMENT OF SENSORS BASED ON OBJECTIVE SHOOTING DATA RATHER THAN DEMOGRAPHIC FACTORS. WE WANT TO BE ABLE TO DEVELOP A, AN OPINION OR A CONCLUSION ABOUT THE EFFECTIVE LEVEL OF POLICING IN SPECIFIC NEIGHBORHOODS RELATED TO THE PLACEMENT OF THOSE.
WE'LL LOOK AT AVERAGE RESPONSE TIME AND EFFECTIVELY MAKE AN ASSESSMENT ON THE BENEFITS OF THAT PROGRAM OVERALL. BODY WORN CAMERA. SO WE HEARD ABOUT MPD'S BODY WORN CAMERA PROGRAM TODAY. THE PARKS POLICE ALSO HAS TO MEET THAT STATE STATUTE REQUIREMENT TO HAVE THAT AUDIT DONE EVERY TWO YEARS. WE PRESENTED ONE FOR PARKS POLICE TO YOU LAST YEAR AND WE'LL BE PRESENTING ONE AGAIN THIS YEAR. SO THOSE BODY WORN CAMERA AUDITS WE'LL SEE PRETTY REGULARLY SINCE THEY ARE REQUIRED. THE MANAGEMENT OF AFTERACTION REVIEWS. THIS IS A, AN AUDIT TO DETERMINE WHERE AFTER
ACTION REVIEWS BELONG WITHIN THE CITY'S STRUCTURE, WHETHER THAT'S THE OFFICE OF CITY AUDITOR, WHETHER THAT'S CIVIL RIGHTS, WHETHER THAT'S A NEW GROUP ORGANIZATION, AND SO THIS WILL REVIEW WHAT THE CURRENT STRUCTURE LOOKS LIKE AND IF ADDITIONAL INVESTMENT NEEDS TO BE MADE TO HANDLE THESE TYPES OF REVIEWS. DATA GOVERNANCE HAS BEEN A HOT TOPIC. IT CAME UP QUITE A BIT IN OUR RISK ASSESSMENTS. KEEP IN MIND OUR RISK ASSESSMENT INFORMS OUR AUDIT PLAN. DATA GOVERNANCE IS THE CITY
EFFICIENTLY OR SORRY, SUFFICIENTLY MANAGING THE DATA THAT IT CREATES? IS THERE POLICY, IS THERE A FRAMEWORK TO MANAGE THAT? WHAT DOES OWNERSHIP OF DATA LOOK LIKE? AND WHAT DOES TRAINING IN THE ISAREA LOOK LIKE? SO AS YOU CAN IMAGINE THE CITY CREATES DATA WITH EVERY MEETING, EVERY WORD THAT WE SPEAK IN PUBLIC, EVERY CAMERA THAT WE HAVE, SO THERE REALLY DOES NEED TO BE A ROBUST OVERVIEW OF THE CITY'S DATA GOVERNANCE. COPTNUITY OF OPERATIONS. THIS IS ONE THAT I THINK ANY ORGANIZATION SHOULD AUDIT REGULARLY. CERTAINLY WITH SOME OF THE THINGS THAT HAVE OCCURRED IN THE LAST FIVE OR SIX WEEKS, THIS HAS ELEVATED IN
PRIORITY FOR OUR AUDIT PLAN AND SO THIS IS ONE WE WILL DO IN 2026. CITYWIDE FLEET MANAGEMENT DOES THE CITY HAVE EFFECTIVE DESIGN, CONTROLS, AND PROCESSES IN PLACE TO MANAGE ITS VEHICLES. THIS IS ONE THAT THE OFFICE OF CITY AUDITOR DID YEARS AGO. BUT I THINK THAT IT IS AN IMPORTANT ONE, ESPECIALLY AS TECHNOLOGY HAS DEVELOPED AS FAR AS GPS TRACKING, AND THE EFISHANCY OF VEHICLES AS WELL. WE HAVE AN I.T. AUDITOR, WHICH WE'RE BLESSED TO HAVE. I THINK MANY
ORGANIZATIONS FIND IT DIFFICULT TO STAFF AN I.T. AUDITOR, AND SO WE ARE GOING TO BE INVENTORYING THE SOFTWARE ACROSS THE CITY, SOMETHING THAT WE'LL WORK CLOSELY WITH I.T. AND THEN WE WILL START DOING ACCESS AUDITS. OF COURSE WE WANT TO MAKE SURE THAT ONLY THE RIGHT PEOPLE ACCESS THE RIGHT SYSTEMS. AND THIS INVENTORY WILL ALSO HELP US DEVELOP FUTURE I.T. AUDITS DOWN THE ROAD. WITH THE CITY COUNCIL'S INVESTMENT IN THE OFFICE OF CITY AUDITOR, WE COMMITTED TO DEVELOPING A PROGRAM EVALUATION PROCESS OR REPORT THAT IS SIMILAR TO WHAT THE OFFICE OF
THE LEGISLATIVE AUDITOR AT THE STATE LEVEL HAS. THESE WILL BE DEEPER DIVES INTO PROGRAMS, UNITS, OR FUNCTIONS WITHIN THE CITY. THEY WILL ACT AS HALF EDUCATIONAL REPORT FOR THE AUDIT COMMITTEE AND THE CITY COUNCIL, AND HALF AUDIT REPORT WHERE THERE ARE RECOMMENDATIONS ASSOCIATED WITH EACH PROGRAM. TO GET THAT WORK STARTED, WE HAVE SELECTED THREE PROGRAMS TO EVALUATE THIS YEAR, ONE IS THE MISCONDUCT COMPLAINTS INTAKE IN THE POLICE DEPARTMENT. ANOTHER IS THE ETHICS BOARD POLICIES, IMPLEMENTATION, AND OVERSIGHT. I THINK IT IS IMPORTANT THAT NOT ONLY WE ENSURE THAT STAFF ARE FOLLOWING ALL OF THOSE REQUIREMENTST BUT THAT THE
ETHICS BOARD ITSELF IS MAKING SURE THAT THOSE ARE RELEVANT, UPDATED, AND ALIGNING WITH THE WORK THAT IS CONTINUOUSLY CHANGING THROUGHOUT THE CITY. AND THEN THE LAST PROGRAM EVALUATION WILL BE THE PERMITTING PROCESS WITHIN CPED FROM A RESIDENT REQUESTING AN APPLICATION ALL THE WAY UNTIL THE CERTIFICATE OF OCCUPANCY IS GRANTED. SO WE HAVE A LOT OF WORK THIS YEAR. I AM HOPEFUL THAT WE WILL BE ABLE TO EFFECTIVELY IMPLEMENT OUR RESOURCES. WE ARE WELL ON OUR WAY IN SEVERAL OF THESE
AUDITS, AND AS I MENTIONED, WE DID SAVE SOME TIME FOR THAT AD HOC FRAUD WASTE AND ABUSE INVESTIGATIONS ON DEMAND ADVISORY SERVICES, 1200 HOURS IS CERTAINLY NOT ENOUGH FOR ALL OF THIS, BUT IT IS THE PLACEHOLDER AND THEN WE ADJUST AS WE NEED TO. SO AGAIN, THIS IS INTENDED TO BE A FLEXIBLE AND FLUID PLAN, AND HOPEFULLY IT IS A REALISTIC PLAN FOR 2026. ALL RIGHT. SO THEN GETTING INTO THE STRATEGIC PLAN, AS I MENTIONED, WE HAVE NOT DEVELOPED OR COMMUNICATED STRATEGIC PLAN IN THE PAST. BUT I THINK THAT IT'S REALLY IMPORTANT FOR OUR
OFFICE TO CONTINUE THE MOMENTUM THAT WE'VE CREATED OVER THE LAST YEAR. AND THE FIRST ITEM ON OUR SPHREAK PLAN IS TO COMPLETE OUR ORGANIZATIONAL RIGHT SIZING. WE NEED TO ENSURE THAT ALL OF OUR RECENTLY HIRED TEAM MEMBERS ARE FULLY INTEGRATED AND EQUIPPED TO SUCCEED. WE NEED TO OPERATIONALIZE OUR QUALITY ASSURANCE AND TRAINING MANAGER WHO I WOULD LIKE TO WELCOME TODAY JESSICA PETERSON WHO'S JOINED US. SHE WILL BE JOINING THE OFFICE OF CITY AUDITOR'S LEADERSHIP TEAM, DEVELOPING OUR QUALITY REVIEW PROGRAM AS WELL
AS HELPING BUILD OUT OUR AUDIT MANUAL. THIS ROLE IS PARAMOUNT TO US MEETING AUDIT STANDARDS, AND JESSICA WILL BE HELPING US INVITE THE ASSOCIATION OF LOCAL GOVERNMENT AUDITORS IN 2026 TO AUDIT OUR SHOP. AS I'VE SHARED WITH SOME OF YOU IN THE PAST, WE HAVE SPENT A LOT OF TIME STRATEGICALLY THIS LAST YEAR IN 2025 GETTING THE SHOP INTO A PLACE WHERE WE WILL BE MEETING PROFESSIONAL AUDIT STANDARDS ACROSS THE BOARD. AND ANY RECOMMENDATIONS THAT WE RECEIVE FROM THAT REVIEW WE WILL SHARE WITH THE AUDIT COMMITTEE. WE WILL ADJUST OUR PRACTICES BECAUSE IT IS IMPORTANT THAT
THE AUDITOR GETS AUDITED AND THAT THE AUDITOR FOLLOWS UP ON RECOMMENDATIONS WE RECEIVE. THE SECOND ITEM ON OUR STRATEGIC PLAN IS TO STRENGTHEN AUDITOR RESOURCES. WE WANT TO DEVELOP THAT AUDIT MANUAL I MENTIONED THAT WILL GUIDE AUDITOR WORK. IT WILL ASSIST IN ENSURING WE'RE ALSO MEETING PROFESSIONAL REQUIREMENTS. WE'RE GOING TO REFRESH ALL OF OUR AUDIT WORK PAPERS, OUR PRESENTATION TEMPLATES, OUR REPORTS. WE'VE DONE A GOOD JOB OF UPDATING A NUMBER OF THESE TEMPLATES, ESPECIALLY THE PUBLIC FACING ONES OVER THE LAST YEAR, BUT IT HAS BEEN KIND
OF A BUILDING EFFECT AND SO NOW WE WANT TO FINALIZE THESE, GET THEM AS FEMPLATES WITHIN OUR OWN WORK. WE WANT TO IMPLEMENT A STRUCTURED QUALITY REVIEW PROCESS TO CREATE ACTIONABLE FEEDBACK FOR AUDITORS, AND WE WANT TO PROMOTE CERTIFICATIONS AND PARTICIPATION IN CONFERENCES AND TRAININGS SO WE CAN MAINTAIN CUTTING EDGE EXPERTISE. THE THIRD ITEM ON OUR DESCREAK PLAN IS TO UPHOLD PROFESSIONAL -- STRATEGIC PLAN IS TO UPHOLD PROFESSIONAL STANDARDS. WE WANT TO MAINTAIN THE HIGHEST STANDARD OF AUDIT QUALITY AND COMPLIANCE. WE WANT TO STRENGTHEN OUR OWN COMPLIANCE
BY DEVELOPING A ROBUST INTERNAL REVIEW PROCESS, THAT 'S THAT QUALITY REVIEW FUNCTION I MENTIONED. AS I SAID WE'RE GOING TO ENGAGE ELGA TO PERFORM A PEER REVIEW OF OUR WORK, AND WE'RE GOING TO EXPAND INTERNAL TRAINING OPPORTUNITIES. WE'RE ALL REQUIRED TO GET, GIVE OR TAKE 40 HOURS OF CPE A YEAR, AND HAVING THE QUALITY REVIEW OR SORRY, QUALITY ASSURANCE MANAGER ON BOARD, WE'RE GOING TO ACTUALLY BE ABLE TO PERFORM SOME TRAINING IN HOUSE, WHICH WILL BE A COST SAVINGS TO OUR OFFICE. AND THEN THE FOURTH ITEM, ENHANCING INDEPENDENCE, THIS IS SOMETHING YOU'VE HEARD ME TALK A LOT ABOUT OVER THE LAST YEAR.
WE'VE DONE A GREAT JOB ENHANCING INDEPENDENCE IN 2025. WE'RE GOING TO CONTINUE THAT MOMENTUM IN 2026. TO FURTHER STRENGTHEN OUR ORGANIZATIONAL AUTONOMY WE WILL RECOMMEND REVISIONS TO THE CITY CODE TO FURTHER CLARIFY INDEPENDENCE AND ALIGN WITH PROFESSIONAL STANDARDS. WHEN WE ROUTE THE AUDIT COMMITTEE RULES THAT YOU APPROVED AT YOUR ORGANIZATIONAL MEETING LAST MONTH, THERE WERE SOME ITEMS THAT I IDENTIFIED THAT COULD BE STRENGTHENED WITHIN CITY CODE, SO WE WILL WORK THROUGH THOSE. AND THEN WE'RE ALSO GOING TO COLLABORATE WITH THE CITY ATTORNEY, IGR, AND STATE LEGISLATORS TO SECURE
NECESSARY AUTHORITY FOR OUR OFFICE TO GET SUBPOENA AUTHORITY. THERE DOES NEED TO BE SOME STATE LEGISLATION THAT OCCURS, BUT THERE IS A PATH TO GET THERE, AND I THINK HAVING THAT SUBPOENA AUTHORITY WILL CERTAINLY HELP US DOWN THE ROAD. THE LAST ITEM ON OUR STRATEGIC PLAN IS TO ADVANCE NONAUDIT PROJECTS. WE'VE TALKED ABOUT A FEW OF THOSE ALREADY. BUT WE WANT TO ENTERPRISE -- FINALIZE OUR ENTERPRISE-WIDE WORKFORCE OPTIMIZATION AND COMPARATIVE BENCHMARKING STUDY TO PROVIDE CITY LEADERS WITH INFORMATION TO ENHANCE STRATEGIC AND BUDGET PLANNING. THAT'S A STUDY THAT WE BROUGHT ON A VENDOR CALLED 65TH NORTH
GROUP TO HELP WITH TO LOOK AT FIVE SISTER CITIES TO DETERMINE ARE OUR STAFFING RESOURCES IN THE RIGHT PLACES, MIGHT WE LEARN SOMETHING FROM OTHER CITIES, SO REALLY MORE OF A STUDY WITH SOME SOFT RECOMMENDATIONS BUT THAT SHOULD BE RELEASED AT OUR APRIL AUDIT COMMITTEE MEETING. WE WANT TO DEVELOP AN AUDITABLE UNIVERSE OF ALL UNITS AND PROGRAMS AND DIVISIONS ACROSS THE ENTERPRISE. I MENTIONED THIS WITH SOFTWARE SYSTEMS, BUT WE ALSO WANT TO DO THIS TO DEVELOP A FULL UNIVERSE OF AUDITABLE FUNCTIONS IN THIS CITY THAT WILL HELP INFORM OUR AUDIT PLANS GOING
FORWARD. AND THEN AS I MENTIONED, THAT CENTRALIZED INVENTORY OF SOFTWARE. ALL RIGHT. SO THAT'S A LOT. I FEEL LIKE I'M LOSING MY VOICE. BUT AS I TRANSITION TO TAKING QUESTIONS, I DO WANT TO NOTE THE BACK PAGE OF THE AUDIT PLAN, I TOOK THE LIBERTY OF USING WHITE SPACE BECAUSE I NEEDED TO OFFER SOME GRATITUDE. I THINK THAT THE STAFF IN THE OFFICE OF CITY AUDITOR HAS DONE AN AMAZING JOB IN THE LAST YEAR. I THINK THAT WE HAVE BEEN RESPONSIVE TO SOME REQUESTS FROM THE AUDIT
COMMITTEE, SOME REQUESTS FROM THE CITY COUNCIL, AND I THINK THAT WITH PLEASURE THEY'VE TAKEN ON SOME VERY DIFFICULT WORK. EVERY DAY THEY DEMONSTRATE INTEGRITY, PROFESSIONALISM, AND A COMMITMENT TO EXCELLENCE, AND I ALSO WANT TO EXPRESS MY GRATITUDE TO THE AUDIT COMMITTEE, TO THE COUNCIL, TO LEADERSHIP ACROSS THE CITY. I DO THINK THAT JUST IN THE YEAR THAT I'VE BEEN HERE, THERE HAS BEEN SOME REAL ACKNOWLEDGMENT THAT THE AUDIT FUNCTION WAS ASKED TO STEP UP. THE AUDIT FUNCTION IN 2021 WAS ASKED TO BECOME MORE VISIBLE , AND VOTERS THROUGH THE CHARTER CHANGE IN 2021 BUILT
THE OFFICE OF CITY AUDITOR AND CREATED THE CITY AUDITOR POSITION, AND SO OVER THE LAST YEAR AND OVER THE NEXT YEAR, WOIL CONTINUE TO TRY TO ELEVATE THE FUNCTION OF THE OFFICE OF CITY AUDITOR. BUT I DO THINK THAT WITH YOUR SUPPORT, WITH THE COUNCIL'S SUPPORT, WITH STAFF SUPPORT, WE'RE WELL ON OUR WAY, SO THANK YOU FOR YOUR SUPPORT. ALL RIGHT. THAT IS IT FOR THE AUDIT PLAN. HOPEFULLY I CAN ANSWER ANY QUESTIONS YOU HAVE ABOUT THAT. ≫ ANY QUESTIONS FROM MEMBERS? WELL, I WILL JUST SAY MUCH GRATITUDE TO YOU. I MEAN, YOUR VERY FIRST DAY YOU WERE IN COUNCIL CHAMBERS, AND THE
FAMILY OF ALLISON LUSIER WERE DEMANDING JUSTICE AND YOU STEPPED INTO THAT SPACE AND WE'RE WAITING FOR THE CONCLUSION OF THAT INVESTIGATION, BUT THE FACT THAT YOU WERE ABLE TO JUST MOVE SO ADEPTLY THROUGH MANY, MANY CHALLENGES THROUGHOUT THE LAST YEAR IS JUST MUCH GRATED TO TO YOU FOR THAT. SO THANK YOU. SEEING NO FURTHER QUESTIONS OR COMMENTS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THAT REPORT. AND MAY I HAVE A MOTION TO APPROVE THE 2026 AUDIT PLAN? ≫ SO MOVED. ≫ SECOND. ≫ ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THE AYEVISE IT. AND THAT
CARRIES. THE LAST ITEM IS THE REPORT OF THE CITY AUDITOR. ≫ THANK YOU CHAIR PAYNE AND THE AUDIT COMMITTEE. I WILL TRY TO BE QUICK THROUGH THESE FIRST FEW SLIDES BECAUSE WE HAVE TALKED ABOUT A NUMBER OF THESE THINGS BUT AS OUR TRADITION, WE ARE LIKE TO PROVIDE THE -- WE LIKE TO PROVIDE YOU AN UPDATE OF THE WORK IN PROGRESS, WHAT WE'VE DONE SINCE WE LAST MET, SO WE WILL COVER COMPLETED AND IN PROGRESS AUDIT WORK. WE WILL JUST QUICKLY HIGHLIGHT FRAUD, WASTE, AND ABUSE INVESTIGATIONS, AS YOU KNOW THOSE ARE THINGS THAT WE NORMALLY JUST SHARE THE NUMBER OF REVIEWS WE'RE WORKING ON BECAUSE OF THE SENSITIVITY OF THOSE. AND THEN WE WILL TALK
ABOUT THOSE PRIOR AUDIT ISSUES AND FINDINGS THAT HAVE BEEN CLOSED. FINALLY WE'LL CLOSE IT OUT WITH SOME PERSONNEL UPDATES. I INTRODUCED JESSICA BUT I WOULD LIKE TO INTRODUCE TWO OTHER NEW AUDITORS AS WELL SO WE'LL DO THAT AT THE END. AND THEN I'LL JUST GET SOME DOCUMENTS IN THE PUBLIC RECORD THAT I WANT TO MAKE SURE ARE AVAILABLE TO THE PUBLIC. ALL RIGHT. SO COMPLETED WORK. WE TALKED ABOUT MPD BODY WORN CAMERA AUDITS. SO WE ALSO TALKED ABOUT ALPR AUDIT. WE'RE JUST GOING TO KEEP GOING. WE ALSO TALKED ABOUT THE RISK ASSESSMENT. AND THE STRATEGIC AUDIT PLAN.
OTHER PROGRESS OR IN PROGRESS WORK, I BRIEFLY TALKED ABOUT, BUT WE WILL JUST QUICKLY HIGHLIGHT THESE TO MAKE SURE THAT I DIDN'T MISS ANYTHING. NSD WE'RE DOING THAT CONTRACT MANAGEMENT AUDIT I MENTIONED, THE OBJECTIVE OF THAT IS TO REVIEW THE NSD CONTRACT PROCESS INCLUDING ADMINISTRATION, MANAGEMENT, REPORTING, OVERSIGHT, AND MONITORING TO ENSURE THAT CONTROLS ARE ESTABLISHED AND OPERATING EFFECTIVELY. THIS IS CURRENTLY IN THE FIELD WORK STAGE. WE ARE GETTING GOOD COOPERATION FROM NSD, AND DO WE HAVE AN ESTIMATE? JUNE? APRIL? WE'RE LOOKING AT APRIL FOR A RELEASE OF THIS
PARTICULAR REPORT. THE PARKS BODY WORN CAMERA AUDIT WE JUST SENT OUT THE, THE KICKOFF NOTICE FOR THAT I BELIEVE LAST WEEK. SO THAT ONE NOW THAT WE'VE DONE A COUPLE OF THESE WILL GO RATHER QUICKLY. THE AFTER ACTION REVIEWS. THESE I DO HOPE THAT WE WILL HAVE THEM WRAPPED UP. OUR PLAN IS TO HAVE THEM PRENTED AT THE APRIL EITHER AUDIT COMMITTEE OR SOME OTHER STRUCTURE OF A COMMITTEE. I KNOW THAT THERE'S SIGNIFICANT INTEREST BOTH BY THE PUBLIC AND THE CITY COUNCIL IN THESE REVIEWS, SO WE MAY WORK WITH THE CLERK AND THE ATTORNEY'S OFFICE TO COMBINE COMMITTEE
MEETINGS WITH THE CITY COUNCIL, BUT MORE TO COME ON THAT. SO PLEASE KNOW IT WILL EITHER BE AT THE APRIL 20TH AUDIT COMMITTEE OR SOMETIME AROUND THEN. SHOTSPOTTER WE TALKED ABOUT, THAT'S TO ANALYZE THE EFFECTIVENESS OF THAT PROGRAM. WE'RE IN THE PLANNING STAGES. WE'VE REACHED OUT TO NOTIFY ABOUT THAT REPORT AS WELL. MEET MINNEAPOLIS WE ARE DOING PRELIMINARY BACKGROUND RESEARCH IN THIS PARTICULAR AUDIT. AND WE TALKED A LITTLE BIT ABOUT THE 65TH NORTH GROUP CONTRACTOR THAT WE'RE WORKING WITH ON THE WORKFORCE OPTIMIZATION AND COMPARATIVE BENCHMARKING
REVIEW. THAT TOO WILL BE PRESENTED IN APRIL. SO I WILL WARN YOU WE WILL HAVE A VERY HEAVY APRIL AUDIT COMMITTEE MEETING WHICH IS ANOTHER REASON THAT POSSIBLY SPLITTING OUT THOSE AFTER ACTION REVIEWS INTO A SEPARATE MEETING MIGHT MAKE SENSE. SO AS I MENTIONED, WE'LL SHARE MORE ONCE LOGISTICS ARE SORTED OUT. ALL RIGHT. I WILL HAND IT OVER TO SIDDHARTHA POUDYAL WHO WILL COVER THE LAST ITEMS AND THEN I WILL COME BACK IN WITH STAFFING AND BUDGET UPDATES. ≫ CHAIR PAYNE AND THE MEMBERS OF THE AUDIT COMMITTEE, SO RIGHT NOW WE HAVE TWO OPEN INVESTIGATIONS THAT WE'RE WORKING ON RIGHT NOW.
AND REGARDING SOME OF THE PRIOR AUDIT ISSUES, WE HAVE RIGHT NOW SEVEN OPEN AUDIT ISSUES WHICH IS SO THEY'RE STILL NOT BEEN REMEDIATED AND THE TENTATIVE COMPLETION DATE HAS NOT BEEN EXPIRED SO ANYTIME IT'S NOT DUE YET, WE PUT THAT IN THAT BUCKET AS OPEN AUDIT ISSUES. THERE ARE LIKE 24 OF THEM ARE OVERDUE, WHICH IS BEYOND THAT TENTATIVE COMPLETION DATE. AND THERE ARE THREE AUDIT ISSUES THAT WE RECEIVED IN OUR OFFICE AND WE'RE RIGHT NOW BASICALLY GOING THROUGH ALL THE SUPPORTING DOCUMENTS AND THEIR MEMOS TO VALIDATE WHETHER THEY
HAVE BEEN COMPLETED OR NOT. SO SINCE THE LAST AUDIT COMMITTEE MEETING, WE HAVE CLOSED TWO OF THE ISSUES, AND MAJORITY OF THESE OVERDUE ISSUES, AND THE PLAN WAS TO COMPLETE SOME OF THESE MPD OPEN AUDIT ISSUES RELATED TO FLEET MANAGEMENT AS WELL, BUT DUE TO THE EVENTS THAT HAD BEEN GOING ON IN THE CITY, WE WEREN'T ABLE TO AT LEAST FOLLOW-UP AND TRY TO COMPLETE, BUT THE PLAN WAS TO DO THAT. BUT SINCE WITH THE DRAW DOWN OF THE ICE OFFICERS, SO HOPEFULLY WE'LL BE ABLE
TO FOLLOW UP WITH THEM TO CLOSE SOME OF THESE OUT BECAUSE SOME OF THE OPEN ISSUES WERE RELATED TO MPD WHO WERE INVOLVED IN THAT, AND NCR WHO WERE INVOLVED, FINANCE. SO BECAUSE OF THAT, THEY WANTED TO PRIORITIZE THAT WORK FIRST, AND WE AGREED WITH THEM AS WELL, BUT WE HAVE BEEN IN CONSTANT TOUCH TO REGARDING SOME OF THESE OPEN ISSUES, SO WE'LL BE CLOSING MORE IN THE UPCOMING AUDIT COMMITTEE MEETING. SO THE COUPLE OF AUDIT ISSUES THAT WE CLOSED IS THE FIRST ONE IS RELATED TO 2022 HIRING AND PROMOTION PROCESS AUDIT.
IT WAS RELATED TO APPEALS, GRIEVANCES, AND OTHER CONCERNS SO RIGHT NOW WE JUST HAVE LIKE ONE LEFT REGARDING THIS AUDIT WHICH I'LL COVER IN THE NEXT FEW SLIDES. AND THE NEXT ONE THAT WE CLOSED WAS 2023 REVENUE AND COLLECTIONS PHASE I RELATED TO ISSUE NUMBER 2, WHICH WAS OVERSIGHT AND MONITORING. SO RIGHT NOW THESE ARE THE LIST OF ALL THE REPORTS WITH AT LEAST ONE OPEN AUDIT ISSUES. AND PER THE RECOMMENDATION OF THE AUDIT COMMITTEE, WE HAVE STARTED HIGHLIGHTING ALL THOSE OPEN AUDIT ISSUES IN DETAIL SO YOU CAN SEE THE AUDIT AND ISSUE
NUMBER AND THE TITLE AND THE ISSUE RATING AND THE ISSUE DUE DATE AS WELL SO ANYTIME IT'S OVERDUE, WE JUST PUT THOSE AT STATUS. ANYTHING, VALIDATION IN PROGRESS, WE ALSO BUT THAT IN THE STATUS, AND ANYTHING THAT HAS NOT GOW YET SO WE JUST PUT THAT IN TENTATIVE TIME AND DATE THEY ARE DUE AS WELL. SO QUICKLY GOING THROUGH SOME OF THESE OPEN AUDIT ISSUES, SO THERE ARE THREE OPEN ISSUES RELATED TO 2019 MPD OFF-DUTY WORK, AND MPD DID PROVIDE THAT THEIR UPDATE AT THE DECEMBER 8th AUDIT COMMITTEE
MEETING, SO AS THEY MADE ABOUT SOME OF THESE ISSUES, SO SOME OF THEM IS LIKE OUR, LIKE TECHNOLOGY RELATED IN WHICH LIKE THEY'RE TRYING TO ACTIVELY RESOLVE SOME OF THESE ISSUES AND SOME OF THESE LIKE POLICY REQUIREMENTS AND OVERSIGHT AND MONITORING THEY WILL BE WORKING AS WELL. SO THERE'S ONE OPEN ISSUED RELATED TO 2021, PERSONNEL WORK ISSUED MOBILE DEVICE POLICIES AND CONTROLS AUDIT SO WE'VE BEEN WORKING WITH THE MANAGEMENT TO CLOSE THAT ONE ISSUE WITH THE DATA RELATED TO DATA GOVERNANCE AS WELL. SO RELATED TO 2022 HIRING AND PROMOTION PROCESS AUDIT.
SO THERE'S ONLY ONE OPEN ISSUES RIGHT NOW RELATED TO JOB STUDIES AND CLASS MAINTENANCE STUDIES. SO RIGHT NOW, SO HR IS TRYING TO IMPLEMENT THAT NEW PROCESS, SO BASICALLY WE'RE JUST GOING TO OBSERVE WHAT'S THAT COMPLETION WOULD BE AT LEAST AT THE END OF Q 1 2026 AND WHAT THEY HAVE IMPLEMENTED MOST LIKELY IN APRIL OR JUNE AUDIT COMMITTEE, WE SHOULD BE ABLE TO CLOSE THIS ONE OUT. AND REMOVE THIS AS AN AUDIT. SO WE'LL BE ABLE TO CLOSE ALL THE ISSUES RELATES TO THIS AUDIT. RELATED TO 2023 REVENUE AND COLLECTION PHASE 1 AUDIT,
WE HAVE TWO OPEN ISSUES, ISSUE NUMBER 5, AST SAFEGUARDING SAFEGUARDING AND SECURITY AND ALSO THE MAIL HANDLING. SO SOME OF THESE ARE PARTIALLY COMPLETED. SO BASICALLY WE JUST WAITING ON THAT LAST PORTION OF THE PIECES OF THE ISSUE SOETHAT WE CAN COMPLETELY CLOSE THEM OUT. BUT MANAGEMENT IS WORKING ON COMPLETING THESE TWO ISSUES RIGHT NOW. SO THE NEXT ONE IS RELATED TO 2023 SEXUAL ASSAULT EXAMINATION KIT SPECIAL PROJECT FOLLOW-UP AUDIT AND THESE TWO ISSUES NONPUBLIC SO WE WON'T BE ABLE TO DISCUSS THAT IN PUBLIC, BUT THE MANAGEMENT DID PROVIDE THAT UPDATE IN
JUNE 2nd 2025 AUDIT COMMITTEE MEETING, BUT WE'LL BE FOLLOWING UP WITH THIS ISSUE, AND ALSO SO BECAUSE THESE TWO ISSUES AND THE MPD PROPERTY MANAGEMENT, AND EVIDENCE AUDIT, THOSE TWO ISSUES ARE LIKE IN SAME VEIN, SO WE STILL HAVE SEVEN OPEN ISSUES RELATED TO THESE, BUT WE'LL BE WORKING WITH MANAGEMENT TO RESOLVE SOME OF THESE ISSUES AS WELL. SO THE NEXT ONE IS 2023P CARD SPENDING AUDIT. SO THERE IS ONLY ONE OPEN ISSUE. WE'RE JUST WAITING MPLEGHT WE KNOW SOME OF THOSE WORK HAS ALREADY BEEN DONE BUT BASICALLY WE'RE WAITING FOR MANAGEMENT TO PROVIDE A MEMO THAT WE NORMALLY
REQUIRE THE MANAGEMENT TO COMPLETE AS WELL AS THE -- DOCUMENTS BUT WE KNOW FOR FACT SO THIS WORK HAS BEEN ALMOST COMPLETED AS WELL. SOY BASICALLY WE'RE JUST WAITING ON SOME SOF THOIZ -- OF THOSE SUPPORTING DOCUMENTS TO CLOSE THIS ONE OUT. AND THE LAST ONE IS 2024 MPD FLEET MANAGEMENT AUDIT. SO RIGHT NOW WE HAVE NINE OPEN ISSUES OPEN RIGHT NOW, AND AT LEAST BASED ON OUR CONVERSATION WITH ONE OF THE COMMANDERS WHO IS RESPONSIBLE ON WORKING SOME OF THESE, SO THEY'RE ALREADY, SOME OF THE ISSUES THAT AURAL BEEN CLOSED BUT WE HAVEN'T-LOVE -- ALREADY BEEN CLOSED, BUT WE HAVEN'T RECEIVED THE
APPROPRIATE SUPPORTING DOCUMENTS TO CLOSE THEM OUT, BUT WE'LL BE WORKING WITH THEM IN NEAR FUTURE SO THAT WE CAN CLOSE SOME OF THESE OUT FOR THE NEXT AUDIT COMMITTEE MEETING. SO THE NEXT ONE IS RELATED TO 2024NCR CITY FUNDING TO NEIGHBORHOOD ORGANIZATIONAL AUDIT. SO THERE IS ONLY ONE ISSUE LEFT FOR THIS ONE RELATED TO NCR RISK ASSESSMENT BUT WE ARE WORKING WITH THEM TO CLOSE THIS ONE OUT SO THE DUE DATE WAS JANUARY 31st, 2026, SO THEY
BECAUSE OF PRIORITIZING WE WERE NOT ABLE TO CLOSE THIS ONE OUT BUT WE WILL BE WORKING WITH THEM TO RESWRAWSM THIS ISSUE AS WELL. AND THE NEXT ONE IS THE MP ROUX B REVENUE AND COLLECTION AUDIT SO THIS IS THE AUDIT REPORT. IT WAS ISSUED DURING THE DECEMBER AUDIT COMMITTEE MEETING AND RIGHT NOW WE HAVE SEVEN OPEN ISSUES AND MOST OF THESE FOR MOST OF THESE ISSUES, THE COMPLETION TENTATIVE COMPLETION DATE IS EITHER JUNE 30th, 2026, AND DECEMBER 31st, 2026, FOR ISSUE NUMBER 2, POLICY AND PROCEDURES, BECAUSE FOR MOST OF THESE ISSUES, THERE
ARE TWO PART MANAGEMENT ACTION PLAN, ONE FROM THE FINE FINANCE DEPARTMENT AND ANOTHER ONE FROM THE I.T. DEPARTMENT SO FOR THE ISSUE NUMBER 2 POLICY AND PROCEDURES, THE I.T. 'S TENTATIVE TIMELINE WAS BY END OF THE YEAR 2025 WHICH WE ALREADY VALIDATED AND THEY HAVE ALREADY COMPLETED THEIR PIECE. BUT WE'RE STILL WAITING ON MANAGEMENT FINANCE DEPARTMENT TO COMPLETE THEIR PORTION OF THE MANAGEMENT ACTION PLAN, WHICH IS NOT DUE UNTIL JUNE 30th, 2026, SO ONCE THEY DO THAT WE'LL CLOSE THIS ISSUE AS A WHOLE AT THAT TIME SO THAT'S WHY EVEN HALF OF THE WORK IS COMPLETES, WE WILL STILL KEEP THAT OPEN.
ANY QUESTIONS BEFORE? ≫ MEMBER HOSBEIN. ≫ THANK YOU, CHAIR PAYNE. JUST A COMMENT FOR THE 24 OVERDUE ITEMS. AND RELATED TO THIS I KNOW APRIL SOUNDS LIKE A BIG MEETING, AND I THINK WHATEVER FOLKS HAVE NEEDED TO DO TO GET THROUGH THE LAST EIGHT WEEKS OR MORE IS WHAT THEY NEEDED TO DO. SO I UNDERSTAND LIKE DEPRIORITIZING SOME OF THIS BUT IF WE COULD EITHER VIA THE MEETING OR OTHERWISE JUST GET A MORE LIST BY LIST UPDATE OF SOME OF THOSE, THAT WOULD BE REALLY HELPFUL EITHER AT THE APRIL MEETING OR AFTER THAT JUST BECAUSE SEVERAL OF THESE ARE IN
THAT BUCKET OF 2019 AND YOU KNOW KIND OF SOME OLDER ONES THAT I THINK WOULD BE HELPFUL JUST TO GET MORE OF A INSIGHT AND THEN ONCE AGAIN, HOW CAN WE AS THE COMMITTEE HELP MOVE THOSE FORWARD AS WELL. BUT YES, NO EXPECTATION TODAY AFTER WHAT HAS HAPPENED TO HAVE THAT MOVE FORWARD, BUT I THINK THAT SHOULDN'T BE A CONTINUOUS TREND AS WE TRY TO WORK THROUGH THOSE. SO THANK YOU FOR THAT. ≫ NO, THANK YOU. ≫ SEEING NO OTHER QUESTIONS. ALL RIGHT. ≫ ALL RIGHT, CHAIR PAYNE, AUDIT COMMITTEE, JUST TO CLOSE THINGS OUT HERE, I WANTED TO PROVIDE A COUPLE ADMINISTRATIVE UPDATES.
I INTRODUCED JESSICA PETERSON. I WOULD LIKE TO INTRODUCE MYRA HIGLEY WHO JOINS US FROM THE CITY OF ATLANTA AS AN INTERNAL AUDITOR TOO. SHE HADS HIT THE GROUND RUNNING AND IS ALREADY TAKING ON EFFORTS LEADING AN AUDIT PROJECT. REMIND ME WHICH AUDIT PROJECT YOU'RE STARTING? ≫ OH, MEET MINNEAPOLIS. ≫ THE MEET MINNEAPOLIS AUDIT PROJECT, SO THANK YOU, MYRA FOR BEING READY TO GO. STEVEN ALSO JOINED US RECENTLY AS AN AUDITOR ONE. HE JOINS US FROM THE PRIVATE SECTOR. HE'S ALREADY BEEN PULL UNDER TO A NUMBER OF AUDITS, SO I'M EXCITED TO HAVE THEM BOTH ON
BOARD. QUICKLY AS FAR AS BUDGET GOES, I ALLUDED TO THIS BUT SHORTLY I WANTED TO SHARE THAT THE 2025 BUDGET FUNDED 24 POSITIONS -- 14 POSITIONS FOR FTEs. WE WERE LOOKING FOR 15 FTEs SO I'M INCREDIBLY GRATEFUL WE GOT AS CLOSE AS WE DID. I'M GRATEFUL TO THE AUDIT CHAIR FOR HIS WORK IN THIS AREA AS WELL AS THE CITY COUNCIL AND THEIR SUPPORT OF OUR WORK. THE VACANCIES WE CURRENTLY ARE HAVE DIRECTOR OF SPECIAL REVIEW AND ADVISORY SERVICES. THIS WAS BUDGET BULLET WE HAD TO GO BACK TO THE -- BUDGETED BUT WE HAD TO GO BACK BECAUSE OF THE CLASSIFICATION OF THIS
POSITION. THE COUNCIL APPROVED THAT JUST LAS WEEK SO IT SHOULD BE GETTING POSTED IN THE NEXT WEEK OR TWO. AND THEN OUR LAST POSITION IS IN DEVELOPMENT NOW, IT'S AN AUDITOR III LEAD WORKER POSITION. IT WILL ACTADS A LEAD WORKER OVER, SUPPORTING BOTH OF THE DIVISIONS IN THE OFFICE. THE FINAL BUDGET UPDATE IS THAT OUR CONTRACTOR WORKING ON THE AFTERACTION REVIEWS BECAUSE OF THE SIGNIFICANT AMOUNT OF TIME THIS HAS TAKEN, WE DO NEED TO REQUEST SOME DILLS ADDITIONAL
FUNDING SO WE WILL BE DOING THAT WITH THE CITY COUNCIL IN THE NEXT CYCLE OUT OF OUR EXISTING 2026 BUDGET. AND AS I MENTIONED WITH THIS WORK, IT WILL BE PRESENTED IN APRIL. I WILL NOT GO INTO THESE DOCUMENTS TOO MUCH BECAUSE YOU'RE GOT PAPER VERSIONS. I ALSO SHARED THEM AT OUR LAST ORGANIZATIONAL MEETING. BUT I DO WANT TO GET THEM INTO PUBLIC RECORD. IT MAKES IT A LOT EASIER TO LINK TO THEM ON OUR WEB SITE, AND SO WE'VE GOT THE ONE PAGER, WHICH IS ON THE SCREEN.
WE WILL HAVE THE ORGANIZATIONAL CHART AS WELL AS OUR MISSION, VISION, AND VALUES STATEMENT THAT THOSE WILL ALL GET ATTACHED TO THE RCA AFTER THIS MEETING. JUST TO WRAP THINGS UP, I WANTED TO PROVIDE A FINAL REMINDER ABOUT EMAIL COMMUNICATIONS. THE CLERK'S OFFICE HAS ADVISED THAT WE EMAIL JUST TO CITY EMAIL ADDRESSES, SO PERSONAL EMAIL ADDRESSES FOR AUDIT COMMITTEE MEMBERS, ALTHOUGH WE OCCASIONALLY STILL SEND YOU THINGS JUST TO MAKE SURE YOU GET THEM, PLEASE JUST MAKE IT A HABIT TO CHECK THAT AT
MINNEAPOLIS MN.GOV. PLEASE DON'T REPLY ALL. WE WANT TO AVOID ANY SERIAL MEETINGS. THAT'S IT. THAT WAS ENOUGH FOR ONE DAY I THINK, BUT IF YOU HAVE ANY QUESTIONS RELATED TO AUDITOR UPDATES, WE'LL STAND FOR THOSE NOW. ≫ NOT SEEING ANY. SO THANK YOU FOR THAT PRESENTATION. ≫ THANK YOU. ≫ I'LL ASK THE CLERK TO FILE THAT REPORT, AND SEEING NO FURTHER BUSINESS TO COME BEFORE US, WITHOUT OBJECTION, I DECLARE THIS MEETING ADJOURNED.