I hate to admit it, but there was a confusion between NCR and NSD in uh some of the work that uh we had done in that report with our consultant. And so I believe it's page 134 of that report through 40. They've been updated. The updated report is on our website and this item is simply to enter the amended report in the public record. Thank you.

We perform this engagement to ensure contractual obligations are clearly defined, properly monitored and consistently enforced. This way we can proactively respond to identified contract management risks, confirm compliance with contract terms and mitigate performance reporting gaps, strengthen documentation, internal controls and city oversight. Together these actions serve to maintain accountability, data integrity and public trust in how city contracts are administered.

So our initial question was like why the city is spending so much money to gain you know eight more uh partners but when we reviewed in detail we identified I mean we meet Minneapolis gained 126 new partners in 2025 but at the same time they lost 117 so that difference is like eight.

Thank you, Chair Singleton. Uh director, I have two like I don't know the city questions if you could help me clarify. Um, and this is related a little bit to I feel like in 2023, 2025, and then today, we're all kind of around these same contract issues within these same groups.

This audit concluded that the neighborhood safety department is not providing sufficient contract oversight or managing contracts effectively.

Finding two falls under the category of influence and pressure where we found the city does not have sufficient controls for mitigating pressures or potential conflicts of interest. For example, a documented escalation path does not appear to exist for instances where contractors bypass contract managers.

Well, we wouldn't probably comment on the formation of actual contracts. That would be outside of the scope of the city auditor and maybe I'll invite the city auditor up to make a comment after. Um I would say that generally we're looking at the controls uh rather than the individual instances and uh with the particular case of NSD uh we found that the controls could probably be increased or strengthened so that individual or special instances are uh meeting city expectations.

Thank you vice chair. Uh thank you for the presentation. Um, and I really appreciate the kind of multiple layers of the um, resolution and the management response. And I think this is a really great opportunity when it does involve procurement and finance and responsibilities outside the e ethics officer um, outside of the specific um, department. Like if we could start memorializing whatever those practices are.

The increasing volume of our work has outpaced our ability to manually monitor and follow up on corrective action plans. Uh and so the the new database that uh Jessica just talked to you about. The coolest part about it is you will all have access to it. Uh we will ensure that you have direct access to it. you can drill down into audit responses um and you can do that in live time and that way we can be uh collectively prepared at audit committee meetings for uh some very good discussion on any open items.

What it means is that it's 7 years old. Doesn't it does not look like there's going to be progress on this and so the next time that we audit them, that issue will be elevated. We will continue to discuss it. Um, I can answer questions on on kind of that process as as we uh get near the end of the presentation, but I wanted to kind of talk about how all of those things play together.

if the administration wants to accept a risk say for example uh we point out that a particular policy needs to be updated and their reaction to that is that you know that will create trickle effects that affect something else. Okay. Well that's a risk that you might be willing to accept. But who tells us that it should be the department head? It should be signed off by a deputy city uh operations officer uh or uh the commissioner of community safety. Um and it must be documented.

The adoption of an enterprise risk management program will enhance our organization's ability to break down silos, help drive forward a formal riskbased framework capable of building stronger city workforce. It will communicate risk more consistently and it will improve city functions so that they are more aligned with government focused solutions.

Thank you, Vice Chair. Um I mean I'm very excited about this, which is probably obvious. Um and I just want to that last slide. I mean, Auditor Lane, like you've since I've been on this committee, like you've been that voice, and I know you said that at the top. So, just thank you so much of um all the continued push for this high level umbrella um change that's been needed.

I would just ask when they come to audit committee, it needs to be whoever can actually make the decision because the people that are in that room, like I just don't want to like their their lives are protecting this evidence and the fact that we're talking about $6 million in an earlier audit and then we can't find 300,000. Like, I want to know who answers to that. So, that's who should be coming.