[0:14] >> WELCOME TO THE REGULAR MEETING OF THE AUDIT COMMITTEE FOR JUNE 2nd, 2025. I AM ELLIOTT PAYNE, AND I'M THE CHAIR [0:20] OF THIS COMMITTEE. I WANT TO OFFER A FRIENDLY REMINDER TO ALL MEMBERS, STAFF, AND THE PUBLIC THAT THESE MEETINGS ARE [0:25] BROADCAST LIVE TO ENABLE GREATER PUBLIC PARTICIPATION. THESE BROADCASTS INCLUDE REALTIME [0:30] CAPTIONING AS A FURTHER METHOD TO INCREASE THE ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL [0:36] SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT OUR CAPTIONERS CAN FULLY CAPTURE [0:41] AND TRANSSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE 1350ED AND CLARITY OF THEIR COMMENTS. [0:47] AT THIS TIME, I WILL ASK THE CLERK TO CALL THE ROLL SO THAT WE CAN VERIFY THE PRESENCE OF A [0:52] QUORUM. >> COMMITTEE MEMBER CHUGHTAI. [0:57] >> PRESENT. >> HOSBEIN IS ABSENT. OMAR IS ABSENT. THOMPSON. >> HERE. >> WILLIAMS. IS ABSENT. VICE [1:04] CHAIR SINGLETON. >> HERE. >> CHAIR PAYNE. >> PRESENT. >> THERE ARE FOUR MEMBERS PRESENT. >> LET THE RECORD REFLECT THAT WE HAVE A QUORUM. COLLEAGUES, [1:11] OUR AGENDA IS BEFORE US. MAY I HAVE A MOTION TO ADOPT THE AGENDA? >> SO MOVED. [1:17] >> IS THERE A SECOND? >> SECOND. >> ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THAT CARRIES. [1:25] AND THE AGENDA IS ADOPTED. NEXT WE HAVE THE ACCEPTANCE OF MINUTES FROM OUR FEBRUARY 24th [1:30] MEETING. MAY I HAVE THAT MOTION? >> I'LL MOVE THE MINUTES OF FEBRUARY 24th, 2025. >> IS THERE A SECOND? [1:38] >> SECOND. >> ALL THOSE IN FAVOR SAY AYE. THOSE OPPOSED SAY NAY. THAT CARRIES. AND THE FEBRUARY 24th MINUTES ARE [1:45] ACCEPTED. WE HAVE FIVE ITEMS IN NEW BUSINESS TODAY. WE'LL BEGIN WITH ITEM 3, WHICH IS AN UPDATE [1:52] REPORT FROM THE POLICE DEPARTMENT ON ACTIONS RELATED TO RECOMMENDATIONS FROM THE 2023 [1:58] PROPERTY AND EVIDENCE AUDIT AND 2023 SEXUAL ASSAULT EXAMINATION KIT SPECIAL PROJECT FOLLOW-UP [2:04] AUDIT. I'LL NOTE FOR MY COLLEAGUES AND FOR MEMBERS OF THE PUBLIC THAT WE WILL BEGIN THIS DISCUSSION IN CLOSED [2:09] SESSION BUT THERE WILL BE A PORTION OF THE PRESENTATION THAT IS GIVEN IN THE OPEN SESSION. [2:16] SO BEFORE WE GO TO THAT OPEN SESSION, I WILL MOVE TO CLOSE THE MEETING AND I'LL RECOGNIZE [2:21] THE CITY ATTORNEY TO PROVIDE THE LEGAL BASIS FOR THE REQUESTED CLOSED SESSION. MR. ATTORNEY. [2:27] >> THANK YOU, CHAIR PAYNE. UNDER SECTION 13D.05 OF THE OPEN MEETING LAW, MEETINGS MAY BE [2:34] CLOSED TO RECEIVE SECURITY BRIEFINGS AND REPORTS, TO DISCUSS ISSUES RELATED TO SECURITY SYSTEMS, TO DISCUSS [2:40] EMERGENCY RESPONSE PROCEDURES, AND TO DISCUSS SECURITY DEFICIENCIES IN OR RECOMMENDATIONS REGARDING PUBLIC [2:47] SERVICES INFRASTRUCTURE AND FACILITIES. IF THE DISCLOSURE OF THAT INFORMATION WOULD POSE A [2:52] DANGER TO PUBLIC SAFETY OR COMPROMISE SECURITY PROCEDURES OR RESPONSES. STAFF HAS DETERMINED THAT THE INFORMATION [2:58] CONTAINED IN THE CLOSED SESSION ITEMS WOULD POTENTIALLY COMPROMISE THAT. SECURITY [3:05] 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 [3:12] AUTHORIZED UNDER THE PROVISIONS OF THE OPEN MEETING LAW AS STATED BY THE CITY ATTORNEY. MAY I HAVE A SECOND TO THAT [3:17] MOTION. >> SECOND. >> ALL THOSE IN FAVOR, SAY AYE. THOSE OPPOSED SAY NAY. THAT [3:23] CARRIES, AND WE WILL NOW CLOSE THE PUBLIC PORTION OF OUR MEETING AND CONVENE IN CLOSED SESSION. FOR THE VIEWING [3:29] PUBLIC, I WILL NOTE THAT THE BROADCAST OF THIS MEETING WILL CONTINUE AND THE AUDIT COMMITTEE WILL RECONVENE IN PUBLIC AFTER [3:36] WE'VE CONCLUDED THE CLOSED SESSION. THANK YOU. [22:58] >> WE ARE READY. THE TIME IS [23:10] NOW 10:27, AND THE AUDIT COMMITTEE HAS RECONVENED IN OPEN SESSION FOLLOWING OUR CLOSED SESSION. I'LL ASK THE CLERK TO [23:17] CALL THE ROLL TO VERIFY A QUORUM. >> COMMITTEE MEMBER CHUGHTAI. >> PRESENT. >> HAWSE BINE. [23:23] >> PRESENT. >> THOMPSON. >> PRESENT. >> VICE CHAIR SINGLETON. >> PRESENT. >> CHAIR PAYNE. >> PRESENT. >> THERE ARE FIVE MEMBERS [23:28] PRESENT. >> LET THE RECORD REFLECT THAT WE HAVE A QUORUM. AND AS I HAD MENTIONED PRIOR TO OUR CLOSED [23:34] SESSION, THERE WILL BE A PUBLIC PRESENTATION ON THIS TOPIC, AND [23:41] I'LL INVITE KERSTIN HAMMARBERG, THE MANAGER OF THE PROPERTY AND EVIDENCE UNIT TO BEGIN THAT [23:46] PRESENTATION. WELCOME. >> THANK YOU VERY MUCH, COUNCILMEMBERS, AND AUDIT COMMITTEE M MEMBERS. I [23:52] 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 [23:58] THE PROPERTY AND EVIDENCE UNIT AND THE SAKI AUDIT UPDATES FOR [24:05] EVERYONE'S BENEFIT. THIS IS OUR BASIC AGENDA, INTRODUCTION, AUDIT ISSUES, ISSUE UPDATES, AND [24:10] THEN A TIME FOR QUESTIONS. OUR HIGH RISK ISSUES THAT HAVE BEEN [24:15] POINTED OUT IN THE AUDIT THAT WAS DONE IN 2023, A FEW OF THEM HAVE BEEN RESOLVED, SO I AM JUST [24:21] GOING TO UPDATE YOU ON THOSE OPEN ISSUES OR THE ONES THAT ARE NEARING CLOSURE. ISSUE NUMBER [24:28] 3, CASH HANDLING. THE FINDING WAS THAT THERE WERE INADEQUATE SECURITY MEASURES WHEN CASH WAS [24:35] TRANSPORTED FOR DEPA DE-- POSIT TO THE BANK. THE PROPERTY [24:41] UNIT STAFF WERE HAND DELIVERING CASH DEPOSITS TO THE COLLECTION SITE WITHOUT SECURITY. OUR UPDATE IS THAT THIS ISSUE HAS [24:47] BEEN RESOLVED, AND WE ARE USING A SECURITY COURIER WHO ROUTINELY [24:52] STOPS BY THE PROPERTY AND EVIDENCE WAREHOUSE TO PICK UP ANY CASH THAT IS THERE FOR [24:57] DEPOSIT TO TRANSFER THAT INTO THE CITY COLLECTION SITE. ISSUE [25:04] NUMBER 4, WAREHOUSE MAINTENANCE. [25:09] THE AUDIT DIVISION NOTED THE FACILITY NEEDED SEVERAL SIGNIFICANT MAINTENANCE FIXES, [25:16] SPECIFIC ISSUES IDENTIFIED INCLUDED A NEW ROOF, PARKING LOT [25:23] REPAIRS, PALLET RACKING SIGNALS, CRACKS IN THE WAREHOUSE FLOOR, AND THE GARAGE DOOR REPAIRS. [25:28] THE PARKING LOTS WERE REPLACED IN THE FALL OF 2023. THE PALLET [25:34] RACKING WAS INSTALLED IN DECEMBER OF 2023. TWO GARAGE DOORS WERE REPLACED IN THE [25:39] SPRING OF 2024. LARGER CRACKS [25:45] IN THE WAREHOUSE FLOOR HAVE BEEN SEALED. HIGH DENSITY SHELVING WAS INSTALLED IN THE WINTER OF [25:52] 2024. A NEW ROOF. THISTIME IS CALLED OUT IN THE SETTLEMENT [25:58] AGREEMENT. PROPERTY SERVICEINIZEDICATED THAT IT WILL -- SERVICES INDICATED THAT IT WILL POSSIBLY BE REPLACED IN [26:06] 2026. ISSUE NUMBER 5, ITEMS CHECKED OUT. THE FINDING WAS [26:11] THAT THERE ARE NOT CONSISTENT REGULAR REVIEWS OF ITEMS CHECKED OUT OF THE PROPERTY AND EVIDENCE [26:16] UNIT. THE AUDIT DIVISION NOTED THAT THERE ARE THOUSANDS OF ITEMS CHECKED OUT OF THE PROPERTY AND EVIDENCE UNIT, THAT [26:22] THERE IS NO CONSISTENT REVIEW OF ITEMS CHECKED OUT, AND THERE IS NO PROCESS IN PLACE TO ENSURE [26:28] OTHER AGENCIES RETURN THE ITEMS. EXPECTED RETURN DATE FIELD IS [26:34] NOW BEING COMPLETED IN OUR, IT'S THE POLICE INFORMATION MANAGEMENT SYSTEM, PIMS IS [26:41] THE ACRONYM BY THE EVIDENCE TECHNICIANS UPON CHECKING ITEMS OUT OF CUSTODY. A REGULAR REPORT IS RUN, QUERYING ALL [26:48] ITEMS CHECKED OUT. ITEMS ARE REVIEWED AND NOTIFICATIONS ARE CEPT IF THE ITEM IS PAST THE [26:57] EXPIRATION DATE. WE'RE USING TECHNOLOGY TO HELP US. ISSUE [27:02] NUMBER 6 IS THE EVIDENCE CONTINUITY. THE FINDING IS THE EVIDENCE CONTINUITY FIELD IS NOT [27:07] ALWAYS LOGGED BY OFFICERS IN THE PIMS SYSTEM. THE AUDIT DIVISION [27:12] NOTED THAT OFFICERS ARE NOT ALWAYS ENTERING THE FIRST FIELD IN THE EVIDENCE CONTINUITY AS [27:18] EXPECTED. THEY ALSO NOTED THAT FOR ITEMS THAT HAVE INTERNAL STORAGE SPACE SUCH AS BACKPACKS AND JACKETS, OFFICERS ARE NOT [27:27] ALWAYS COMPLETING THE EVIDENCE CONTINUITY FOR INDIVIDUAL ITEMS LOCATED INSIDE THESE BACKPACKS [27:33] AND JACKETS, OR OTHER CONTAINERS: THE UPDATE IS THAT SIGNS HAVE BEEN PLACED NEXT TO [27:40] ALL PIMS COMPUTERS IN PRECINCTS AND PROPERTY AND EVIDENCE UNIT REMINDI OFFICERS TO ENTER [27:47] THEIR EVIDENCE CONTINUITY. SIGNS WERE DEVELOPED FOR EACH FACILITY AND INDICATED THE EXACT LOCATION OFFICERS SHOULD UTILIZE [27:53] TO START THE CONTINUITY. A SHORT TRAINING VIDEO WILL BE PRODUCED TO HELP RETRAIN [27:59] OFFICERS AND INVESTIGATORS ON THIS TOPIC. THE MODERATE R [28:09] RISK ISSUES. ISSUE NUMBER 7, PIMS DATA ENTRY. THE -- THERE IS NO STANDARD OF EV ENTRY [28:16] OF EVIDENCE LOCATIONS WHEN OFFICERS ENTER ITEMS INTO PIMS. THEY ALSO NOTED THAT THERE WAS NO STANDARDIZATION FOR EVIDENCE [28:22] DESCRIPTIONS. THE UPDATE IS THAT THE PROPERTY WAREHOUSE PRECINCT LOCKERS, AND THE PUBLIC [28:28] SERVICE BUILDING CURRENTLY HAVE SIGNAGE INDICATING THE EVIDENCE [28:34] CONTINUITY LOCATION INFORMATION. EXAMPLE, PRECINCT 5 LOCKERS OR PROPERTY AND EVIDENCE LOCKER [28:40] NUMBER SPECIFICALLY OR PSB LOCKERS. WHEN TRAINING NEW [28:46] SWORN STAFF, THE CADETS, THE RECRUITS, THE LATERAL OFFICERS, PROPERTY AND EVIDENCE UNIT STAFF [28:52] TRAIN ON THE IMPORTANCE OF UTILIUTILIZIZING A [28:58] SPECIFIC LOCATION FOR EVIDENCE CCONTINUITY IN THE PIMS. A [29:03] VIDEO IS GOING TO BE PRODUCED TO HELP RETRAIN OFFICERS AND INVESTIGATORS ON THIS TOPIC. [29:09] ISSUE NUMBER 8, SAFEKEEPING ITEM DISPOSITION. THE FINDING WAS THAT PIMS RECORDS FOR ITEMS [29:15] STORED IN SAFEKEEPING STORAGE ARE NOT ALWAYS UPDATED WHEN ITEMS ARE DISPOSED OF OUR MOVED. [29:23] THE AUDIT DIVISION NOTED THAT SAFEKEEPING ITEMS ARE NOT ALWAYS UPDATED CORRECTLY WHEN THEY'RE DISPOSED OF O OR MOVED FN. [29:31] THIS IS LIKELY DUE TO STAFF PROCESSING LARGE QUANTITIES OF ITEMS QUICKLY. THIS TOPIC IS LISTED AS RESOLVED. IT HAS BEEN [29:38] ADDRESSED WITH PROPERTY AND EVIDENCE UNIT STAFF, AND AN EMPHASIS HAS BEEN PLACED ON THE [29:43] ATTENTION TO DETAIL AND QUALITY ASSURANCE. PROPERTY AND EVIDENCE MANAGEMENT HAVE INSTITUTED A MONTHLY REVIEW OF [29:50] SAFEKEEPING ITEMS. ISSUE NUMBER 9, CONFLICTS OF INTEREST. THE [29:57] FINDING IS THAT THERE IS NOT SPECIFIC POLICY AND PROCEDURE RELATED TO CONFLICTS OF [30:02] INTEREST, AND THE HANDLING OF PROPERTY AND EVIDENCE. THE AUDIT DIVISION NOTED THAT WHILE [30:08] CITY AND MPD HAVE POLICIES SURROUNDING CONFLICT OF INTEREST, THE PROPERTY AND EVIDENCE UNIT DOES NOT HAVE [30:14] SPECIFIC LANGUAGE SURROUNDING CONFLICT OF INTEREST IN HANDLING PROPERTY OR EVIDENCE. THE [30:19] UPDATE HERE IS THAT THE POLICE DEPARTMENT WILL BE ADDING A QUALITY ADMINISTRATOR POSITION [30:25] TO THE PROPERTY AND EVIDENCE UNIT. THIS POSITION WILL BE TASKED WITH WRITING THE QUALITY [30:31] SYSTEM MANUAL WHICH WILL INCLUDE TOPICS SUCH AS IMPARTIALITY, CONFIDENTIALITY, AND CONFLICT OF [30:38] INTEREST. ETHICS TRAINING WAS IMPLEMENTED FOR THE UNIT IN 2024, AND WILL OCCUR ANNUALLY [30:45] MOVING FORWARD, AND THIS IS ON TOP OF THE CITY'S ETHICS TRAINING THAT'S PROVIDED TO ALL [30:50] CITY EMPLOYEES. ISSUE NUMBER [30:55] 10, PARDON ME, CONTINUITY PLAN. THE FINDING WAS THAT THERE ARE [31:00] NOT DETAILED AND DOCUMENTED PLANS SUCH AS DISASTER RECOVERY AND CONTINUITY OF OPERATIONS FOR [31:06] THE PROPERTY AND EVIDENCE UNIT, AND ITS PROCESSES THAT CAN BE UTILIZED IN THE EVENT OF [31:14] DISRUPTION. THE AUDIT DIVISION NOTED THAT ALTHOUGH MPD HAS ESTABLISHED CONTTUITY OF [31:19] OPERATIONS PLANS FOR THE DEPARTMENT, THESE PLANS DO NOT SPECIFICALLY ADDRESS THE PROPERTY AND EVIDENCE UNIT. THE UPDATE ON THIS IS THAT THIS [31:25] ISSUE IS RESOLVED. A PROPERTY AND EVIDENCE UNIT DISASTER PLAN HAS BEEN CREATED, SHARED WITH [31:31] ALL PROPERTY AND EVIDENCE UNIT STAFF, AND PROVIDED TO MPD EXECUTIVE STAFF. ISSUE NUMBER [31:40] 11, DESTRUCTION PROCESS. THERE ARE NOT DOCUMENTED PROCEDURES [31:46] FOR OFF SITE DESTRUCTION PROCESSES. THE AUDIT DIVISION NOTED THAT THERE WERE NO [31:52] DOCUMENTED PROCEDURES FOR THE OFFSITE DESTRUCTION OF ITEMS SUCH AS DRUGS AND FIREARMS. [31:57] PROCEDURES FOR THE DESTRUCTION OF FIREARMS AND DRUGS HAVE BEEN IN PLACE FOR DECADES. HOWEVER, THEY WERE NOT CLEARLY [32:04] DOCUMENTED. THE UPDATE IS THAT DRUG DESTROY AND GUN REVIEW PROCEDURES HAVE BEEN WRITTEN. THEY ARE IN THE REVIEW PROCESS [32:10] AND WILL BE ADDED TO THE STANDARD OPERATING PROCEDURES UPON COMPLETION OF THE REVIEW. [32:17] THANK YOU VERY MUCH, AND ON BEHALF OF MY SUPERVISOR DIRECTOR SHANNON JOHNSON, MY SHIFT [32:23] SUPERVISOR SAM DAILEY AND WILLIAM VINCENT, AND ALSO THANKS TO THE AUDIT COMMITTEE. WE [32:29] APPRECIATE THE TIME THAT WE CAN REPORT TODAY. AND I'M OPEN TO QUESTIONS IF YOU HAVE THEM. >> THANK YOU FOR THAT [32:35] PRESENTATION. IS THERE ANY QUESTIONS FOR THE PUBLIC PORTION? MEMBER HOSBEIN. [32:43] >> I'M NOT ON. THANK YOU, CHAIR PAYNE. I HAD A QUICK QUESTION, [32:48] AND THANK YOU FOR ALL THIS INFORMATION, AND I WILL PREFACE MY QUESTION BY I ALWAYS ASK [32:55] ABOUT BANDWIDTH OF TIGHT CITY DEPARTMENTS, SO I UNDERSTAND THAT THAT'S PART OF THIS [33:00] QUESTION. UNDER ISSUE 9, YOU MENTIONED BRINGING IN A QUALITY [33:06] ADMINISTRATOR POSITION. >> YES, MA'AM. >> IS THERE ANY CAPACITY THERE TO DO ANY INTERNAL DEPARTMENTAL [33:12] SPOT CHECKING? A LOT OF THESE RESOLUTIONS IN KIND OF SOLUTIONS [33:18] ARE VERY PROACTIVE, WHICH IS AMAZING. IT DOESN'T SEEM LIKE THERE'S A LOT OF COACHING OR [33:23] SPOT CHECKING OR SAMPLING ON THE BACK END. IS THERE CAPACITY [33:28] WITHIN THAT NEW POSITION TO DO A QUICK CHECK ON THE OTHER 11 [33:34] ISSUES? >> THANK YOU VERY MUCH FOR YOUR QUESTION. THE IDEA BEHIND THE [33:40] QUALITY ASSURANCE POSITION THAT WE ARE WAITING TO HIRE FOR IS THAT THAT PERSON WILL BE IN [33:47] CHARGE OF DOING THOSE SPOT CHECKING PIECES AS WELL AS MAKING SURE THAT QUALITY IS [33:54] BEING MAINTAINED. THEY WILL ALSO BE HANDLING UPDATES AND REVIEWS OF OUR STANDARD [34:00] OPERATING PROCEDURES, OUR PACKAGING MANUAL, AND ANY OTHER POLICY UPDATES THAT NEED TO [34:05] HAPPEN WITHIN THE DEPARTMENT FOR PROPERTY AND EVIDENCE SPECIFICALLY. SO IT IS VERY [34:10] SIMILAR TO THE POSITION THAT IS ALREADY EXISTING IN THE FORENSICS DIVISION CRIME LAB. [34:16] THEY HAVE A QUALITY ASSURANCE PERSON, AND THAT PERSON IS HANDLING THOSE TYPES OF THINGS, [34:22] AND WE ARE WITH FALLING UNDER THE FORENSIC SERVICES DIVISION, THE DIRECTOR FELT IT MOST [34:27] PRUDENT TO HAVE THIS POSITION THAT WOULD OVERSEE PROPERTY AND EVIDENCE IN THAT SAME WAY. SO [34:33] YES, IT WOULD BE A TRUE QUALITY ASSURANCE AND SPOT AUDIT CHECKING POSITION. [34:39] >> 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 [34:46] GENERAL QUALITY CHECKS OF ALL THESE PROCESSES? >> YES, MA'AM. >> PERFECT. THANK YOU. [34:51] >> MEMBER THOMPSON? >> THANK YOU SO MUCH, CHAIR PAYNE. I JUST HAVE TWO I THINK QUICK [34:57] QUESTIONS. ONE, IT CAME TO MY MIND AS YOU WERE TALKING ABOUT PROCURING EVIDENCE AND SECURELY [35:04] HANDLING IT, WHERE DOES THE EVIDENCE CURRENTLY GO FOR THE THIRD, FOR THE THIRD PRECINCT? DOES THAT, WHERE IS THE PHYSICAL [35:10] LOCATION FOR THAT SINCE THEY DON'T HAVE A PERMANENT, IS THAT THE ONE DOWNTOWN? [35:15] >> THANK YOU VERY MUCH FOR THE QUESTION. LET ME JUST CLARIFY FOR EVERYONE'S KNOWLEDGE. THE [35:21] IT SEA HADS -- THE CITY HAS FIVE PRECINCTS, AND EACH OF THOSE [35:26] PRECINCTS HAVE TEMPORARY EVIDENCE LOCKERS WHERE THEY CAN PUT THINGS. WE MAKE REGULAR [35:31] RUNS TO THOSE AREAS TO COLLECT THAT EVIDENCE. ALL OF THAT EVIDENCE IS STORED IN A [35:37] CENTRALIZED FACILITY, WHICH IS OUR PROPERTY AND EVIDENCE WAREHOUSE. SO THIRD PRECINCTS [35:42] EVIDENCE COMES TO OUR PROPERTY WAREHOUSE. >> SO, SORRY, NOW YOU HAVE A NEW QUESTION FOR FROM ME. SO HOW [35:47] MANY OF THESE DO WE HAVE AROUND THE CITY? >> WE HAVE ONE PROPERTY AND EVIDENCE WAREHOUSE. [35:52] >> BUT THE DROP -- I'M USING THE WRONG TERM, BUT DROP BOX OR SOMETHING? >> EACH PRECINCT HAS SECURE EVIDENCE LOCKERS THAT ARE [35:59] TEMPORARY, AND SO WE HAVE FIVE OF THOSE AROUND THE CITY. [36:05] >> ARE THEY LOCATED AT THE PRECINCTS. >> YES, MA'AM. >> JUST FOR CLARIFICATION, THE THIRDS IS CURRENTLY HOUSED [36:10] DOWNTOWN? >> THAT IS CORRECT. >> OKAY. I JUST WANTED TO UNDERSTAND LIKE LITERALLY THE LAY OF THE LAND. THANK YOU. MY [36:18] SECOND QUESTION IS, I DON'T WANT TO BE FISHING, BUT WHAT, IT SAYS THAT FINDINGS, WE DON'T HAVE [36:23] POLICIES, PROCEDURES, WITH CONFLICT OF INTEREST. WHAT, WHAT KIND OF A CONFLICT OF [36:29] INTEREST WOULD ARISE WITH HANDLING PROPERTY OR YOU KNOW HANDLING EVIDENCE AND PROPERTY? >> THANK YOU FOR THE QUESTION. [36:38] THERE ARE POTENTIALLY CONFLICTS OF INTEREST BECAUSE A NUMBER OF THE STAFF HAVE BEEN CITY RESIDENTS OR ARE CURRENTLY CITY [36:44] RESIDENTS. MYSELF INCLUDED. AND CRIME THAT OCCURS IN THE [36:49] CITY OF MINNEAPOLIS HAS THE ABILITY TO HAVE A FAR REACHING EFFECT. AND THERE ARE SOME -- [36:54] THERE ARE TIMES WHEN WE RECOGNIZE NAMES OF PEOPLE THAT [37:00] WE MIGHT KNOW OR MIGHT HAVE CONTACT WITH. SO THE ABILITY TO [37:07] SEPARATE OUR PERSONAL FROM OUR PROFESSIONAL LIFE IS A PART OF THE CONFLICT OF INTEREST. AND IF A PERSON ON THE STAFF [37:15] RECOGNIZES THE NAME OF A CRIME VICTIM OR SOMEONE WHO'S BEEN SUSPECTED IN COMMITTING A CRIME, [37:21] IT'S UP TO THEM TO REPORT NAT TO THEIR SUPERVISOR SO THAT WE CAN MAKE SURE THAT THEY ARE NOT [37:27] HAVING UNDUE ACCESS TO THE EVIDENCE OR PROPERTY THAT BROUGHT IN RELATED TO THOSE [37:33] CRIMES. SO THAT WOULD BE AN EXAMPLE OF THE CONFLICT OF INTEREST IN PROPERTY AND [37:41] 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 [37:49] CHAIR SINGLETON. >> THANK YOU FOR ALL THE WORK YOU'VE DONE ON THIS. SO I HAD A [37:56] QUESTION ABOUT EVIDENCE CONTINUITY, AND THE NEW SIGNAGE AND UPCOMING TRAINING VIDEO. I [38:02] KNOW THAT YOU HAVEN'T HIRED THE NEW QA POSITION YET, BUT DO YOU HAVE A SENSE OF WHETHER THAT NEW [38:09] SIGNAGE IS HELPING WITH PROPERLY FILLING OUT THE FIELDS? [38:15] >>> I WOULD LIKE TO OPTIMISTICALLY SAY YES, AND AT THE SAME TIME, WE HAVE MORE THAN [38:23] 550 OFFICERS AND TO HAVE EACH ONE OF THEM BE PERFECT IN THAT [38:28] IS NOT POSSIBLE, SO IT IS BETTER. HOWEVER, WE ARE STILL [38:34] TRYING TO LOOK AT DIFFERENT WAYS THAT WE CAN MAKE IMPROVEMENTS. ONE OF THE WAYS WE'VE DISCUSSED [38:40] IS CREATING A BAR CODE THAT WOULD BE PLACED AT EACH OF THE COMPUTERS THAT WOULD BE SPECIFIC [38:45] TO THAT LOCATION. SO THE OFFICERS WOULD BE ABLE TO UTA HANDHELD SCANNER, SCAN THE BAR [38:51] CODE, WHICH WOULD PREFILL THE INFORMATION, WHICH WOULD LEAD TO [38:56] MORE ACCURACY. NOW, AGAIN, GETTING HUMANS TO FOLLOW THOSE [39:01] STEPS IS ALSO DIFFICULT. AT THE SAME TIME WE'RE OPTIMISTIC THAT WE'LL MAKE IMPROVEMENTS IN THAT [39:07] AREA. >> THANK YOU, AND THAT ANTICIPATED MY NEXT QUESTION, WHICH WAS WHETHER THERE ARE MORE [39:14] TECHNOLOGY FOCUSED EFFORTS THAT COULD BE, THAT COULD AUGMENT THE NEW SIGNAGE AND REMINDERS. [39:20] >> I WISH THAT OUR COMPUTER SYSTEM WERE ABLE TO BE MORE CUSTOMIZED TO OUR DEPARTMENT [39:27] NEEDS, BUT BECAUSE IT IS A COMPANY THAT WORKS WITH LAW ENFORCEMENT AGENCIES ACROSS THE [39:33] COUNTRY. THERE IS SOME GENERALIZATION TO THE PROCESS, AND WE ONLY HAVE SO MUCH THAT WE [39:40] CAN MAKE SPECIFIC TO OUR NEEDS. THANK YOU. [39:46] >> MEMBER HOSBEIN. >> THANK YOU, CHAIR PAYNE. I DID WANT TO JUST, FOR THE [39:51] RECORD, FROM ISSUES 1 AND 2, JUST ASK ABOUT BUDGET [40:00] PRIORITIZATION, AND ADVOCACY OR OTHERWISE THAT'S MAYBE NEEDED THERE FROM A COMMUNITY ASPECT I GUESS IN TERMS OF ONE OR TWO OR [40:07] 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 [40:14] UNDERSTAND WHAT THAT PROCESS LOOKS LIKE AND IF THERE IS THESE HIGH RISK AREAS THAT ARE GETTING [40:19] THE APPROPRIATE BUDGETARY RESOURCES TO BE SOLVED. [40:26] >> SO ISSUE, ISSUE 1 WAS ABOUT CLIMATE CONTROL. THERE IS A [40:35] BUDGETARY ISSUE WITH ALL OF THE THINGS THAT WE HAVE BECAUSE NOTHING UNFORTUNATELY IS DONE FOR FREE. WE DO WANT CLIMATE -- [40:43] WE NEED TO HAVE CLIMATE CONTROL AS A PRIORITY, AND YES, WE NEED [40:48] ADVOCATES, NOT ONLY FROM THE COUNCIL AND FROM OTHER CITY DEPARTMENTS BUT ALSO FROM THE [40:54] POLICE DEPARTMENT TO ADVOCATE FOR US TO GET THOSE THINGS TAKEN CARE OF. THIS HAS BEEN AN ISSUE [41:01] 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 [41:06] UP FOR THE PAST FIVE YEARS. THERE IS A FINANCIAL COST TO IT. [41:21] ISSUE NUMBER 2. I ALSO JUST WANT TO BE MINDFUL ABOUT WHAT I'M ALLOWED TO SAY PUBLICLY. [41:29] >> I UNDERSTAND THAT. >> AND THAT WAS WITH THE SAKI [41:35] GRANT. I APOLOGIZE FOR MY FLIPPING THROUGH MY PRESENTATION [41:43] HERE. >> AND WHILE YOU'RE LOOKING FOR [41:49] THAT, I'M HAPPY FOR, AND I'M HAPPY FOR OTHER MEMBERS TO [41:54] COMMENT WITH THE RESPONSE FOR THE JUST GENERAL, YES, ADVOCACY IS NEEDED, AND JUST HAVING THAT [41:59] RECORDED IS FINE FOR THIS I THINK OPEN SESSION FOR ME TOO, BUT ANY OTHER COMMENTS OR [42:05] QUESTIONS FOR THE COMMITTEE. >> AND AS I KNOW THAT YOU UNDERSTAND, WE, THE DEPARTMENT [42:12] IS UNDER DEPARTMENT OF HUMAN RESOURCE -- WE'RE UNDER THE [42:18] MDHR DECREE, AND PART OF THAT IS THAT WE ARE HAVING TO BUDGET THE [42:26] MONEY FOR DIFFERENT ACTIVITIES AND DIFFERENT THINGS THAT THE DEPARTMENT NEEDS. AGAIN, THESE [42:34] ITEMS ARE A PRIORITY FOR ME BECAUSE I'M IN THIS ENVIRONMENT EVERY DAY. AND THE DEPARTMENT [42:41] ALSO NEEDS TO PRIORITIZE THESE THINGS BECAUSE, WE COULD SUFFER [42:48] FROM POWER OUTAGES. WE COULD SUFFER FROM NATURAL DISASTERS THAT WOULD CAUSE US TO LOSE [42:54] POWER IN THE BUILDING, AND WE WANT TO MAKE SURE THAT WE HAVE EVERYTHING IN PLACE NECESSARY TO HANDLE THOSE THINGS AS WELL AS [43:03] ONGOING CLIMATE CONTROL FOR THE WHOLE FACILITY. [43:13] >> ANY OTHER QUESTIONS OR COMMENTS? SEEING NONE. I'LL [43:19] ASK THE CLERKS TO RECEIVE AND FILE THAT REPORT. THANK YOU, MS. HAMMARBERG. >> THANK YOU VERY MUCH FOR YOUR [43:27] TIME. >> NEXT WE HAVE ITEM NUMBER 4, WHICH IS RECEIVING AND FILING AN ADVISORY SERVICES REPORT ON THE [43:33] REVIEW OF HEALTH DEPARTMENT CONTRACTS AND CONTRACTING PROCESSES WITH HELIX HEALTH AND [43:38] HOUSING SERVICES.IAL INVITE TRAVIS KAMM COMMUNITY SAFETY AUDITOR TO GIVE THAT REPORT. [43:54] WELCOME. [44:18] >> ALL RIGHT, GOOD MORNING, CHAIR PAYNE, MEMBERS OF THE AUDIT COMMITTEE. THANK YOU FOR HAVING ME TODAY. I'LLE [44:23] PRESENTING ON A REVIEW THAT WE DID, AND BEFORE I BEGIN, I JUST WANT TO RECOGNIZE AND KIND OF THANK MANAGEMENT FOR BEING HERE. [44:30] MANAGEMENT FROM THE HEALTH DEPARTMENT AND FINANCE ARE HERE, AS WELL AS QUESTIONS I THINK OR COMMENT AT THE END FROM DEPUTY [44:36] CHIEF CITY OPERATIONS OFFICER BRET JOLLY SO IF THERE IS QUESTIONS ABOUT THE ACTUAL [44:42] CONTRACT OR TERMS OF THE CONTRACT AND PROCESS OF SOME OF THAT, SOMEONE MIGHT BE ABLE TO STEP IN ON THERE. I CAN ANSWER [44:48] 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 [44:55] JUST KIND OF GOING TO DO KIND OF A QUICK PASS THROUGH TODAY, SO KIND OF TALK ABOUT BACK ON [45:00] CONTRACT DETAILS. SO A BIT MORE ABOUT THE PURPOSE OF THE REVIEW AND APPROACH, GET INTO INVOICES [45:07] 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 [45:13] GET INTO AREAS FOR IMPROVEMENT OR RECOMMENDATIONS EXPRKZ THEN KIND OF A QUICK COMMENT ON FUTURE STEPS. SO THIS REVIEW [45:23] 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 [45:29] CAN BE -- KIND OF FOR IT'S NOT JUST KIND OF ONE DEPARTMENT [45:35] SPECIFIC. THEN ALSO KIND OF SOMETHING THAT YOU KNOW WE HEARD THROUGHOUT THIS PROCESS AND REVIEW, AND THAT WE RECOGNIZE [45:41] THAT THIS CONTRACT AND CIRCUMSTANCES WERE UNIQUE IN THAT YOU KNOW AT THE TIME THERE WAS A SENSE OF URGENCY IN THE [45:46] CITY DOING THE WORK AND THE CONTRACT AND NATURE OF WORKING SERVICES WERE, YOU KNOW, UNIQUE FOR THE HEALTH DEPARTMENT IN [45:52] ASPECTS IN TERMS OF WHAT THERE WAS PROVIDED AND SOME OF THE WAY THAT THE WORK WAS CONDUCTED. [45:58] SEE KIND OF, YOU KNOW, WHAT WE DID. SO IT WASN'T AN AUDIT. IT CAN'T -- IT WAS MORE OF AN AN [46:04] ADVISORY SERVICES SO WE ENGAGED IN CONTRACT REVIEW AND CONTRACTING PROCESS ASSESSMENT. SO WE JUST FOCUSED ON THIS [46:10] PARTICULAR CONTRACT AND THE PROCESSES THAT KIND OF WERE ATTACHED TO IT. AND THEN, YOU KNOW, OUR UBN ANALYSIS [46:17] CONSISTED OF A REVIEW OF CITY AND DEPARTMENT'S CONTRACTING AND CR CONTRACT MANAGEMENT [46:24] 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 [46:30] AND PAYMENTS. AND THEN WE ASSESSED AND COMMENTED ON RISK ASSOCIATED WITH THE EXISTING INTERNAL CONTROLS AND OVERSIGHT [46:36] MECHANISMS IN PLACE, AND HOW THEY CONTRIBUTED TO WHAT WE SAW THROUGHOUT OUR REVIEW. SO JUST [46:41] A QUICK OVERCAP OF THE OBJECTIVES AGAIN TO DETERMINE THE CONTRACTING PROCESS, THIS CONTRACT WENT THROUGH, WE REVIEW [46:47] THE INVOICES AND SUPPORTING DOCUMENTATION THE CITY RECEIVED, AND THEN COMMENTED INTERNAL CONTROL OR PROCESS DEFICIENCIES [46:52] AND MAKE RECOMMENDATIONS FOR MANAGEMENT. SO KIND OF WHAT, YOU KNOW, WHAT SPECIFICALLY WE'RE TALKING ABOUT TODAY. SO [46:57] AT THE END OF 2023, THE HEALTH DEPARTMENT ENTERED INTO A CONTRACT WITH HELIX LLC DOING [47:03] BUSINESS AS HELIX HEALTH AND SERVICES FOR THE PURPOSES OF REVIEW ACCORDING TO HELIX THE VENDOR OR CONTRACTOR. THE [47:09] CONTRACT PURPOSE WAS FOR HELIX WAS FOR HELIX TO PROVIDE TEMPORARY HOUSING, SUBSTANCE USE [47:14] DISORDER TREATMENT, AND MENTAL HEALTH SERVICES FOR INDIVIDUALS EXPERIENCING HOMELESSNESS. SO AT THE END OF 2023, THE CITY [47:21] DETERMINATIONED AN URGENT NEED FOR THIS CONTRACT AND SERVICE, SO THE WORK WAS TO INCLUDE [47:26] GENERAL HOUSEKEEPING CASE MANAGEMENT, MEANTTH HEALTH CACASE MANAGEMENT, SCRE [47:32] SCREENING AND INTERVENTION AND REFER TREATMENT AND ON-SITE LOW INTENSITY SUBSTANCE USE TREATMENT. AT THE TIME IN THE [47:38] KIND OF INITIAL PROPOSAL WAS INDICATED AND KIND OF THINGS BOPPED UP THERE WAS A BUDGET OF [47:43] $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 [47:53] THROUGHOUT NOVEMBER AND OCTOBER AND NOVEMBER 2023, HEALTH DEPARTMENT AND THE CONTRACTOR WORKED TO DRAFT THE CONTRACT AND [48:00] BUDGET. IT WAS DETERMINED BASED ON THE NEED FOR THE WORK, IT WAS DETERMINED TO GO THROUGH A SINGLE SOURCE PROCESS, SO NOT A [48:05] COMPETITIVE BIDDING PROCESS. AND THEN IT ENDED UP GOING TO CAN YOU BELIEVE FOR APPROVAL IN [48:11] NOVEMBER OF -- COUNCIL FOR APPROVAL IN NOVEMBER OF 2023 AS PART OF THAT PROCESS SO HERE IS KIND OF INFORMATION ON WHAT WAS [48:16] ON THE -- RVCA, AUTHORIZING THE CONTRACT, AT THE TIME IT WAS [48:21] KIND OF ADJUSTED SHORTLY BEFORE THE MEETING BEGAN TO PROVIDE, YOU KNOW, AS I SAID, THE TREATMENT SERVICES. WE SAW IN [48:29] KIND OF -- WE NOTED THROUGH MORE CONTEXT IS THAT THE HEALTH DEPARTMENT AND OTHERS WORKED [48:34] QUICKLY, YOU KNOW, IN THE LAST COUPLE OF WEEKS OF NOVEMBER 2023 TO FINALIZE THE CONTRACT. [48:40] THE CONTRACT WAS SIGNED BY THE PARTIES NOVEMBER 30th, 2023. THERE WAS A FIRST INVOICE THAT [48:45] WAS WE'LL KIND OF REFERENCE WAS A PAID DECEMBER 1st, 2023. THEN ALSO SOMETHING WE NOTED AS [48:52] PART OF THE PROCESS WAS REQUEST FOR AFFIRMATIVE ACTION APPROVAL WAS SUBMITTED AT THE END OF [48:57] NOVEMBER 2023. PER OUR DISCUSSION WITH PROCUREMENT AND CIVIL RIGHTS, IT SORT OF OCCURRED PRIOR TO THE CONTRACT [49:03] GOING THROUGH IN TERMS OF PROCESS FOR APPROVAL. SO THE CONTRACT WAS EFFECTIVE FROM [49:09] DECEMBER 1st, 2023, THROUGH NOVEMBER 30th, 2024. AGAIN, JUST KIND OF THAT CONTRACT TYPE [49:15] WAS PROFESSIONAL SERVICES SINGLE SOURCE CONTRACT. SO IT DID NOT GO THROUGH COMETPATIVE BIDDING [49:21] PROCESS. OF THAT, YOU KNOW, AMOUNT, SOME OF IT WENT TO START-UP COSTS, ABOUT HALF OF IT [49:26] WENT TO STAFFING COSTS, AND THEN SOME OTHER CATEGORIES WERE CONTRACTORS. OPERATING COSTS, HOUSING EXPENSES, AND THEN [49:33] ADMINISTRATIVE COSTS THAT WERE MADE UP THAT TOTAL CONTRACT BUDGET. AS IN THE REPORT AND [49:40] 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 [49:46] OF WHAT THEY WOULD DO IN TERMS OF, YOU KNOW, THAT APPLY [49:51] TEMPORARY HOUSING FOR INDIVIDUALS SPE EXPERIENCING ADDICTION AND HOMELESSNESS. AS PART OF THE [49:57] CITY'S PROCESS FOR EVERY CONTRACT GOING THROUGH A SINGLE OR SOLE SOURCE CONTRACT PROCESS [50:03] THERE IS A JUSTIFICATION FORM THAT WAS SUBMITTED SO THE TEXT IS WITHIN THE REPORT YOU HAVE OF [50:09] KIND OF WHAT IT WAS, BUT KIND OF NOTING THAT NEED TO KIND OF [50:14] 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 [50:21] OF WHERE WE SPEND OUR TIME AND KIND OF NOTICING, REVIEWING CONTRACT -- INVOICES AND PAYMENTS AND OTHER SUPPORTING [50:28] DOCUMENTATION. SO YOU KNOW, WHEN WE FIRST ENGAGED WE REVIEWED THE CONTRACT AND MET WITH MANAGEMENT TO UNDERSTAND THE CONTRACT AND CONTRACT [50:34] MANAGEMENT PRAWMENTZ WE THEN YOU KNOW REQUESTED INVOICES THAT HAD BEEN SUBMITTED AS PART OF THIS CONTRACT. WE REQUESTED THE [50:40] SUPPORTING DOCUMENTATION AND OTHER INFORMATION THAT WAS AVAILABLE FOR THAT. WE REVIEWED AND TRIED TO RECONCILE THOSE [50:45] INVOICES AND SUPPORTING DOCUMENTATION TO SEE WHAT INFORMATION WAS THERE AND KIND OF HOW THINGS MATCHED UP, AND THEN AS NEEDED, INQUIRED WITH [50:51] THE HEALTH DEPARTMENT ON ADDITIONAL DOCUMENTATION, CLARIFICATIONS AND OTHERS SO WE [50:56] ALSO APPRECIATE THE WORK OF FINANCE AND KIND OF -- PROCUREMENT AND ACCOUNTS PAYABLE AND OTHERS THROUGHOUT OUR WORK [51:02] IN TERMS OF GETTING US INFORMATION AND DOCUMENTATION, KIND OF ANSWERING OUR QUESTIONS. [51:07] SO YOU KNOW, AS OF MID-MARCH 2025, THE CITY HAD PAID ALL OF $933,000 WITH A [51:13] FINAL PAYMENT THAT OCCURRED EARLY APRIL AS WE WERE KIND OF WRAPPING UP DRAFTING THIS REPORT [51:19] AND OTHER STUFF, AND WE'LL GET INTO THAT LITTLE BIT BUT THERE WERE SOME ADDITIONAL [51:24] CONSIDERATIONS AROUND THAT ADVANCED PAYMENT INVOICE AND THEN ERRONEOUS PAYMENT WE WILL GET INTO A SECOND HERE. IN THE [51:32] REPORT AND KIND OF ON HERE WE KIND OF NOTED, YOU KNOW, A HANDFUL OF AREAS THAT WE KIND OF [51:38] OBSERVED AND WANTED TO KIND OF DRAW ATTENTION TO KIND OF YOU KNOW THAT WERE THROUGH REVIEW. [51:43] ONE IS AROUND DUPLICATIVE ERRONEOUS PAYMENTS, REVIEW OF INVOICES AND SUPPORTING DOCUMENTATION, COMPLETENESS AND [51:48] CLARITY OF EXPENSES TO THE SUPPORTING DOCUMENTATION, PREPAID EXPENSES AND PRECONTRACT [51:54] EXPENSES, ALLOWABLE AND UNALLOWABLE EXPENSES, DETAILED AND CLEAR CONSISTENT COST CATEGORIES AND BREAKDOWNS, AND [52:00] THEN ADVANCED PAYMENT AND THEN SUBCONTRACTOR APPROVALS. SO THE FIRST KIND OF CATEGORY HERE, [52:08] DUPLICATE ERRONEOUS PAYMENTS. SO TWO INVOICES TOTALING [52:16] $177,462.92 WERE IDENTIFIED PAYMENTS MADE IN ERROR WITH A VENDOR SUBMITTING REVISED INVOICES FOR THOSE TIME PERIODS [52:21] THAT WERE ALSO PAID. SO AS WE NOTED WHEN WE WERE DOING THE REVIEW, WE NOTED THAT THERE WAS TWO INVOICES THAT COVERED TWO [52:29] OTHER INVOICE PERIODS, SO THE SAME TIME PERIODS, THEREFORE DIFFERENT AMOUNTS. WE INQUIRED [52:35] WITH MANAGEMENT, YOU KNOW, ABILITY THOSE OVERLAPPING SERVICE PERIODS AND THE AMOUNT AND DIFFERENCES IN THOSE. [52:40] MANAGEMENT THEN DETERMINED THAT TWO OF THOSE INVOICES SHOULD NOT HAVE BEEN PAID AS PART OF THIS CONTRACT AND THUS WERE DUPLICATE [52:46] ERRONEOUS PAYMENTS ADDING UP TO THAT $177,000, SO THE CITY [52:51] NOTIFIED THE VENDOR OF THESE PAYMENTS AND WORKED -- THE VENDOR OPTED TO SUBMIT INVOICES AND SUPPORTING DOCUMENTATION FOR [52:58] 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 [53:04] THERE WAS SOME TIME PERIOD ON THE CONTRACT AND SERVICES FROM BASICALLY KIND OF SUMMER AND [53:10] FALL 2024 THAT WERE THE VENDOR SUBMITTED AND THE HEALTH DEPARTMENT REVIEWED AND APPROVED FOR THAT TIE THAT PAYMENT TO. [53:18] SO THE CITY NEVER PAID MORE THAN THAT $999,000, IT'S JUST THAT [53:23] THERE WERE TWO INVOICES THAT, YOU KNOW, THAT WENT TO THAT, TO THAT CONTRACT AMOUNT THAT SHOULD [53:29] NOT HAVE BEEN PAID, AND THEN WERE THUS KIND OF NOTED BACK. SO REVIEW OF INVOICE AND [53:36] SUPPORTING DOCUMENTATION PRIOR TO PAYMENT. SO YOU KNOW WE NOTED, WE INQUIRED ABOUT [53:41] INVOICES AND PAYMENTS THAT COVERED -- THERE WE GO, THE CITY FORMALLY REVIEWED AND RECONCILED [53:47] SUPPORTING DOCUMENTATION WITH INVOICES TO ENSURE INFORMATION WAS COMPLETE AND ACCURATE WITH REQUESTED REIMBURSEMENT COSTS. SO AS PART OF OUR REVIEW, WE [53:54] REQUESTED THE DOCUMENTATION. WE REVIEWED THE INVOICES. YOU KNOW, REVIEWING, YOU KNOW, THAT [53:59] SOME DOCUMENTATION EITHER WAS NOT, YOU KNOW, IN THE ORIGINAL BATCH DOCUMENTS THAT WE RECEIVED AND HAD TO BE REQUESTED. WE [54:05] ALSO NOTED THAT THOSE QUESTIONS AND TRANSACTION REPORTS AND OTHER -- THAT DID NOT FULLY [54:11] ALIGN WITH INVOICES, WERE MISSING AND THERE WAS UNCLEAR SUPPORTING DOCUMENTATION AT TIMES IN TERMS TO WHAT COSTS [54:18] WERE APPLIED TO AND HOW AND WHAT WERE APPLIED. THERE WERE NOT A DETAILED DOCUMENT REVIEW AND RECONCILIATION OF INVOICES AND [54:24] SUPPORTING DOCUMENTATION. AS A RESULT, YOU KNOW, WE'RE UNABLE TO CONFIRM, YOU KNOW, THE INFORMATION WE RECEIVED PRIOR TO [54:30] THE INVOICES AND KIND OF HOW THAT CONTRIBUTED TO OR HOW THAT MATCHED TO THE END PAYMENTS THAT [54:36] WERE MADE. YOU KNOW, AS WE KIND OF RECEIVED KIND OF THROUGHOUT [54:42] KIND OF THAT -- IN TERMS OF REVIEWING RECONCILING DOCUMENTS [54:47] AND INFORMATION, INQUIRED ADDITIONAL TIME AND WORK ON US TO KIND OF DETERMINE WHAT WAS [54:53] RECEIRECEIVED AND HOW THINGS MATCHED UP AND THAT RESULTED IN A LACK OF CLARITY AND CONFUSION AMONG STAKEHOLDERS [55:00] IN DISCUSSING AND REVIEWING THE DOCUMENTATION. ALSO NOTE THAT YOU KNOW CONSEQUENCE OF THAT PLAYED INTO THE OVERPAYMENTS AS [55:06] WELL AS THAT -- INVOICES WEREN'T RECONCILED TO CATCH THAT THERE WERE THOSE, YOU KNOW, DUPLICATE [55:12] PERIODS OR THOSE PERIODS THAT DID NOT HAVE SUPPORTING DOCUMENTATION ATTACHED. AND [55:19] THAT'S -- THERE WE GO. OUR NEXT CATEGORY, SO COMPLETENESS AND CLARITY OF EXPENSES OF [55:24] SUPPORTING DOCUMENTATION. SO SUPPORTING DOCUMENTATION SUBMITTED WITH INVOICES WERE NOT ALWAYS ACCURATE, CLEAR, [55:31] COMPLETE, ACCURATE, AND CLEAR WITH VARIANCES IN DOCUMENTATION AND REIMBURSEMENT REQUESTS AND A NEED FOR ADDITIONAL [55:37] DOCUMENTATION INFORMATION. SO KIND OF PLAYING INTO WHAT I UNDERSTAND IN TERMS OF HAVING TO REQUEST ADDITIONAL INFORMATION, AND CLARITY, WE NOTED, YOU KNOW, [55:45] 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 [55:51] DOCUMENTS THAT WE HAD TO BE REQUESTED. THERE WAS INCONSISTENCIES IN AMOUNTS AND NUMBERS BETWEEN THE INVOICES, [55:56] TRANSACTION REPORTS, AND SUPPORTING DOCUMENTATION. SO AS DETAIL IN THE REPORT A LITTLE [56:01] BIT AROUND, LIKE, SOME OF THE COST CATEGORIES, TRANSACTION REPORTS, THAT KIND OF DETAILED WHAT THE EXPENSES WERE FOR THE [56:08] 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 [56:15] WERE APPLIED TO WHERE AND WHERE THEY WERE APPLIED TO. THERE WERE SOME BREAKDOWNS AND [56:22] EXPLANATIONS WERE NOT FULLY CLEAR RESULTING IN INQUIRIES. WE HAD TO SPEND ADDITIONAL TIME [56:27] AND WORK TRYING TO DETERMINE WHERE THE COSTS WERE APPLIED TO AND HOW THEY WERE APPLIED. FOR [56:34] EACH OF THE, YOU KNOW, CONTRACT COST CATEGORIES, A VENDOR AS I SAID GENERALLY PROVIDED THAT [56:39] 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 [56:45] PERIOD. SO THERE ARE A COUPLE THAT WE HAD TO REQUEST IN THERE, BUT WE TRY TO MATCH THOSE UP WITH SUPPORTING DOCUMENTATION. [56:50] THAT'S WHERE WE NOTED THAT, YOU KNOW, THERE WAS A VARIANCE, DISCREPESSANCIESS AND KIND OF SOME ADDITIONAL WORK THERE. IN [56:56] THE REPORT WE KIND OF DETAILED SOME SPECIFIC AREAS OF NOTE WHEN IT COMES TO EACH OF THOSE BULLET [57:03] POINTS ON HERE, SO AROUND TRANSACTION COST REPORTS, AROUND SOME -- ENDED UP WITH THE [57:08] INVOICE SO IT'S KIND OF DETERMINING GENERALLY THE INVOICE WAS LESS THAN THE [57:13] TRANSACTION REPORT SO THE CITY WAS PLAYING LESS THAN THE TOTAL AMOUNT BUT UNABLE TO FULLY DETERMINE WHAT PORTION OF COST [57:20] WENT TO WHERE. AS WELL AS SOME MISSING STAFFING COSTS. WE [57:25] NOTED DIFFICULTY IN KIND OF REVIEWING AND RECONCILING TO KIND OF THE WAY THAT THE [57:30] 401(k) PAYMENTS AND OTHER EXPENSES WERE APPLIED TO. AND KIND OF HOW THEY KIND OF PLAYED INTO THOSE COSTS AS WELL AS, YOU [57:36] KNOW, SOME OF THE DOCUMENTATION. IT APPEARED, YOU KNOW, BETWEEN THE INITIAL INVOICE, INITIAL [57:42] DOCUMENT ATION THAT WAS RECEIVED WHEN THE CONTRACT WAS WITH THE [57:47] INVOICE TO SOME OF THE DOCUMENTATION IN THE BACK END, THERE WERE VARIANCES IN PEOPLE'S POSITIONS AND STAFFING AND [57:54] STASTA STAFFING AND SALARIES THAT MADE IT HARD TO DETERMINE WHAT WAS THE TRUTH THAT WAS SUBMITTED [57:59] INITIALLY AND DOCUMENTS ON THE BACK END TRYING TO RECONCILE THAT WE WERE UNABLE TO NOTE BECAUSE DIFFERENT POSITIONS, PEOPLE ARE MISSING, KIND OF [58:05] PEOPLE CHANGING ON THAT ONE. WE ALSO NOTED IT WAS OUTLINED IN [58:11] THE REPORT AROUND ONE OF THE PAYROLL AND PROCESSING FEES THAT APPEARED TO HAVE BEEN PAID [58:16] TWICE. AND THEN AGAIN AROUND SOME OF THOSE FEES LIKE HOW THEY WERE DETERMINED. LIKE WHAT WERE WE PAYING FOR, LIKE IF IT WAS, [58:23] CONSISTENCY AROUND THOSE APPLICATIONS AND THOSE AMOUNTS. AROUND CONTRACTORS, WE NOTED A [58:29] FEW INSTANCES AROUND CONTRACTORS AS WE KIND OF GET INTO A LITTLE BIT THERE ENDED UP BEING [58:34] SUBCONTRACTORS, WHICH IS WHY -- FOR THE PURPOSES THE HELIX IS A [58:40] CONTRACT TO THE CITY AND YOU KNOW FOR THE CITY'S PURPOSES, THERE IS THE SUBCONTRACTORS THAT CONTRACT WITH HELIX, AND IT [58:47] ENDED UP BEING $80,000 FOR THAT, FOR THOSE USE OF THOSE CONTRACTORS AND WE NOTED OBSERVATIONS AROUND, YOU KNOW, [58:53] THOSE THREE AROUND, YOU KNOW, THE BILLING OF THOSE AND KIND OF THE DETAILS AROUND WHAT THEY WERE BILLING FOR AND THOSE [59:01] HOURS. WE DETAILED IN THE REPORT AROUND, YOU KNOW, THE SPECIFICS THAT WERE NOTED. SO [59:06] LACK OF CLARITY FOR SOME OF THESE COSTS AROUND THE BULK OF THE MONEY WENT TO ENCAMPMENT [59:13] PAPERWORK, INSPECTIONS, MOVES, DOESN'T REALLY KIND OF PROVIDE THAT CLARITY TO THAT DETAIL AND [59:20] TO WHAT THE CITY WAS COVERING AND PAYING FOR. OPERATING [59:28] COSTS, SO HOW TO REQUEST AND RECEIVE SOME INITIAL DOCUMENTATION THAT WAS MISSING AROUND THOSE, AND WE HAVE A SEPARATE NOTE AROUND OPERATING [59:33] COSTS, AND THEN HOUSING AND ADMIN COSTS NOTING TOO THERE WAS CLARITY AROUND BREAKDOWNS, [59:43] EXPENSES. SOME OF THE DOCUMENTATION WE HAD TO REQUEST AND RECEIVE AFTER THE FACT. PREPAID EXPENSES AND PRECONTRACT [59:50] EXPENSES. SO THE CITY PAID FOR EXPENSES THAT OCCURRED PRIOR TO THE CONTRACT START DATE, AND PREPAID EXPENSES, SO JUST [59:58] ENTERPRISE SOFTWARE FROM WHEN THE VENDOR WAS NOT DIRECTLY PERFORMING CONTRACT WORK. SO TWO PARTS OF THIS. FIRST PART [1:00:03] IS, YOU KNOW, REVIEWING THE INVOICES, REVIEWING THE SUPPORTING DOCUMENTATION THE CITY APPEARED TO PAY FOR EXPENSES THAT OCCURRED PRIOR TO [1:00:09] THE CONTRACT START DATE. THROUGH DISCUSSIONS WITH CITY ATTORNEY'S OFFICE AND PROCUREMENT, IT WAS KIND OF, YOU [1:00:14] KNOW, IF YOU DO NEED TO -- IF THERE IS CIRCUMSTANCES AS RECOMMENDED KIND OF PREDATE THE CONTRACT START DATE OR KIND OF [1:00:21] DO NOTIFICATIONS AROUND THERE THERE BUT WE NOTED KIND OF IN THE REPORT A LITTLE BIT YOU KNOW SOME SPECIFICS AROUND WHAT WE [1:00:29] OBSERVED AND SOME OF THE EXPENSES THAT APPEARED TO HAVE OCCURRED BEFORE THE CONTRACT START DATE, SUCH AS THE JOB [1:00:35] POSTING AND RECRUITING, QUICKBOOK SETUP AND SOME OF THAT OTHER WORK. AND THEN YOU KNOW AS NOTED, YOU KNOW, KIND OF WITH [1:00:41] THOSE, SOME DIFFICULTY TOO WAS THE TRANSACTION REPORTS MAY NOT FULLY ALIGN WITH THE INVOICES, SO MAYBE THE CITY MIGHT'VE PAID [1:00:47] FOR PRORATED PORTION BUT IT WAS HARD TO TELL BASED ON WHAT WE HAD, YOU KNOW, WHAT EXPENSES [1:00:52] WERE APPLIED TO THERE. AND ALSO WE NOTED THE CITY NO EXAMPLES APPEARED TO PAY FOR PREPAY FOR [1:00:59] 12 MONTHS OF USE OF ITEM SUCH AS OFTWARE, MICROSOFT 365 ACCOUNTS, [1:01:04] CORPORATE MAILBOX AND SOME OF THE OTHER EXPENSES, SO AT THE END OF THE DATE OF THE CONTRACT, [1:01:09] WITH THE PREPAID -- THE OVERPAYMENT THAT WAS MADE AND WITHIN THE PRE-- THE ADVANCED [1:01:18] PAYMENT, YOU KNOW, THE CONTRACT ENDED UP BILLING FOR WORK THROUGH NOVEMBER 30th, 2024. [1:01:24] BUT THE WORK WAS STOPPING IN THE SUMMER OF 2024. SO YOU KNOW BEST PRACTICE FOR THE CITY TO [1:01:31] BILL, IF Y'ALL ARE USING A SERVICE BOTH FOR THAT MONTH, BOTH FOR THAT PERIOD INSTEAD OF PREPAYING FOR A FULL 12 MONTHS [1:01:37] WHEN IT WAS NOT CLEAR YOU KNOW THE CITY USING IT FOR 12 MONTHS OR NOT FOR THAT WORK. SO AGAIN [1:01:47] KIND OF SOME LACK OF CLARITY AROUND THOSE SO UNALLOWABLE, UNALLOWABLE AND ALLOWABLE [1:01:52] EXPENSES WERE NOT CLEAR ON COVERING START-UP COSTS INCLUDING PRINTERS, ENTERPRISE [1:01:57] 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 [1:02:03] OF COSTS, BUT THE CITY DID NOT IDENTIFY KIND OF CLEARLY [1:02:09] ARTICULATE WHAT WAS ALLOWED AND UNALLOWED AS PART OF THIS CONTRACT IN TERMS OF ORGANIZATIONAL EXPENSES, IN TERMS OF CONTRACT [1:02:16] EXPENSES.TRO THERE WAS AS WE NOTED WITH THE ENTERPRISE SOFTWARE WITHIN SOME OF THESE USE OF PRINTERS AND SCANNERS, [1:02:24] THE CITY GENERALLY DOES NOT A ALLOW THOSE PERFORMSES VERSUS [1:02:30] OPERATIONAL EXPENSES AND IT'S BEST PRACTICES, THE CITY GENERAL PREFERS TO COVER THOSE EXPENSES [1:02:35] PAID FOR BUT AS PART OF THE CONTRACT, IT DIDN'T REALLY CLEARLY ARTICULATE THE CITY WOULD PAY FOR THIS OR THIS IS [1:02:41] WHAT THE CITY IS SPECIFICALLY PAYING FOR. IT'S JUST KIND OF FROM THE COST CATEGORIES AND SOME OF THOSE LAR LARGER [1:02:48] LUMP S SUMS. AND WE KNOW WHAT THE CITY WOULD COVER AND -- [1:02:53] DID NOT CLEARLY ARTIC IMRLT AND CLEARLY DEFINE THAT INFORMATION. DETAILED AND CLEAR CONSISTENT COST BREAKDOWN AND COST [1:03:00] CATEGORIES. SO SOME COST CATEGORIES WERE NOT BROKEN DOWN INTO SPECIFICS WITH A CLEAR UNDERSTANDING OF HOW THEY WERE DETERMINED AND EXPENSES FOR SOME [1:03:06] COST CATEGORIES WEREN'T CONSISTENTLY APPLIED. FOR EXAMPLE, WE NOTED MILEAGE KIND [1:03:11] OF -- DIFFERENT COST CATEGORIES THROUGHOUT THE DOCUMEN DOCUMENTATION, SO KIND OF WHAT I WAS GETTING INTO AT THE END OF [1:03:18] THE LAST ONE, ALONG WITH THE -- ON THE COST IN TERMS OF HOW THE COSTS WERE DETERMINED AND SOME OF THOSE CALCULATIONS, SO YOU [1:03:24] 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 [1:03:30] TIME BASIS, YOU KNOW OUCH, SUCH AS PER MONTH TO FEEL OUT THE CONTRACT. YOU KIND OF UTILIZE, [1:03:36] LOOKED AT THE EXHIBIT AND CONTRACT AND TRY TO, YOU KNOW, WASN'T REALLY CLEAR YOU KNOW IF [1:03:41] 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 [1:03:48] WHATEVER FALLS IN THAT TIME PERIOD AND THAT PLAYS INTO, YOU KNOW, WHAT WE KNOW TO KIND OF -- [1:03:54] IN TERMS OF WITH MANAGEMENT AND WITH OTHERS, THE LACK OF CLARITY ON THOSE COST CATEGORIES AND [1:04:00] WHAT THEY APPLIED TO. AND THEN TWO, YOU KNOW, WE WERE UNABLE TO DOCUMENT OR DEFINE BRE OR [1:04:07] BREAK DOWN THESE EXPENSES COSTS BUT THE CONTRACTOR USED THE WHOLE BUDGET BUT IN TERMS OF IF [1:04:13] WE WERE PAYING FOR WHAT WE WERE SPECIFICALLY PAYING FOR, IF IT WAS EXPECTED TO PAY THE WHOLE CONTRACT AMOUNT, IF IT WAS JUST [1:04:19] CALCULATION, THE CITY PAID AND COVERED VARIOUS EXPENSES. ADVANCED PAYMENT, SO THIS [1:04:25] CONTRACT CONTAINED A $238,000 ADVANCED PAYMENT THAT DID NOT CLEARLY IDENTIFY THE EXPENSES THAT WOULD BE APPLIED [1:04:31] TO CREATING CHALLENGES AND REVIEWS AND RECONCILIATIONS, SO THERE IS THAT INITIAL PAYMENT THAT WAS MADE ON [1:04:36] DECEMBER 1st, 2023, THAT YOU KNOW, COVERED $238,000 OF SOME INFORMATION THAT IT WENT TO [1:04:41] START-UP COSTS, WHEREAS YOU KNOW INCLUDES INITIAL STAFFING AND OPERATING COSTS ACCOUNTING FOR 15% OF PROPOSED BUDGET WAS THE [1:04:48] INFORMATION. SOME OF IT WENT TO CONTRACTORS. THEN SOME OF IT WENT TO ADMIN COSTS. WE DID [1:04:54] NOTE THAT THE CONTRACTORS, YOU KNOW, KIND OF PAID ON A MONTHLY BASIS REVIEWING THE INVOICES AND [1:05:00] SUPPORTING DOCUMENTATION. YOU KNOW, BASED ON WHEN AT THIS SUBMITTED WORK. BUT IT WAS NOT [1:05:05] CLEARLY DETAILED TO, YOU KNOW, WHEN THOSE EXPENSES WOULD BE APPLIED TO SO THE CONTRACTOR ENDED UP ULTIMATELY SUBMITTING, [1:05:11] YOU KNOW, APPLYING IT TO KIND OF SUMMER OF 2024 EXPENSES. BUT IN OUR DISCUSSIONS IT WASN'T AT THE [1:05:17] TIME WHEN WE FIRST BEGAN THIS AND THROUGHOUT, IT WASN'T THE CONTRACT AND THE LANGUAGE WERE [1:05:23] NOT CLEARLY STATING WE COVER THIS AMOUNT, THIS WORK, THIS TIME PERIOD OR THIS MONTHS IS [1:05:28] KIND OF LEFT TO THE VENDOR AND YOU KNOW, THE CITY TO VENDOR AND [1:05:35] SUBMIT STUFF AND THE CITY TO APPROVE THOSE CALCULATIONS AND AMOUNTS. AND YOU KNOW, AS A RESULT IT HINDERED OUR ABILITY [1:05:42] TO RECONCILE EXPENSES AND SUPPORTING DOCUMENTATION BECAUSE THE SUPPORTING DOCUMENTATION WE RECEIVED ON THE BACK END OF THE CONTRACT ON THEIR WORK. SUP [1:05:49] CONTRACTOR APPROVAL, SO CITY NOT FORMALLY, DID NOT FORMALLY AND [1:05:54] RECEIVE IN WRITING THE APPROVAL OF THREE SUBCONTRACTORS. WE NOTED IN REVIEWING SUBCONTRACTOR [1:06:01] INFORMATION, THAT THERE WAS BASED OF THE ONES BEING SUBMITTED, THERE WERE THREE OF THEM. THERE WERE TWO IDENTIFIED [1:06:06] IN THE CONTRACT, AND THERE IS A SPECIFIC CONTRACT TERM IN THE CONTRACT ON SUBCONTRACTIC AND THAT THE CITY MUST RECEIVE AND [1:06:15] FORMALLY APPROVE IN WRITING THE USE OF OTHER -- RECEIVE THE USE OF SUBCONTRACTORS AND WE KNOW THAT THERE ARE TWO IN THE [1:06:21] ORIGINAL BUDGET AND THERE WAS THE THIRD ONE THAT WAS ALSO USED AND ALSO THEY DID NOT -- IN THE [1:06:27] SUPPORTING DOCUMENTATION DID NOT KIND OF IDENTIFY WHICH ONE WAS GOING TO BE -- CONTRACT PROJECT [1:06:32] CONSULTANT AND WHICH ONE WAS THE PRINCIPAL CONSULTANT. THERE WAS JUST DIFFERENT LANGUAGE USED AROUND THERE. THE BULK OF THIS [1:06:41] AND WHAT IT LED TO IS AREAS FOR IMPROVEMENT AND RECOMMENDATIONS, SO WE REVIEWING WHAT WE RECEIVED [1:06:47] AND NOTED, TRIED TO IDENTIFY AREAS FOR IMPROVEMENT, AREAS FOR [1:06:58] AREAS WE CAN HIGHLIGHT AND MAKE RECOMMENDATIONS ON, SO I WILL GO THROUGH THOSE. THERE WERE FIVE [1:07:03] OF THESE. THE FIRST ONE IS AROUND CONFLICTS OF INTEREST AND [1:07:09] SINGLE SOURCE CONTRACTS. THERE IS A NEED FOR THE CITY TO CONDUCT REQUIRED CONFLICT OF INTEREST REVIEWS AROUND [1:07:15] SICKLE/SOLE-SOURCE CONTRACTS TO ADDRESS RISKS AND CONTROL GAPS. SO BASICALLY FOR NORMAL CONTRACT PROCESS THERE IS RFP IS REVIEWED [1:07:22] AND THERE IS A STOPPING POINT OR CHECK AROUND CONFLICT OF INTEREST, BUT WHEN IT COMES TO THESE SINGLE SOURCE/SOLESOURCE [1:07:29] CONTRACTS LIKE THIS ONE WAS, THERE IS NO REQUIRED DECLARATIONS OR OTHER POTENTIAL [1:07:36] INTEREST CONTROLS IN THAT REQUIRED FORM THAT WAS SUPPOSED TO BE COMPLETED T. DID NOTCON [1:07:42] TAIN SPACE OR INSTRUCTIONS REGARDING CONFLICTS OF INTEREST, AND YOU KNOW, WHERE THOSE STEPS MAY OCCUR IN THE -- THIS SORT OF [1:07:48] PROCESS AS WE KIND OF OUTLINED IN THE REPORT, YOU KNOW, IT GOES THROUGH A UNIQUE PROCESS THERE, SO WE HAVE RECOMMENDATIONS [1:07:55] AROUND ESTABLISHING A PROACTIVE CONFLICT OF INTEREST DISCLOSURES AND REVIEWS SINGLE SOURCE/SOLE [1:08:06] -SOURCE CONTRACT. THEY SHOULD BE REVIEWED IN PROCUREMENT AND PRC, ASK QUESTIONS AND MAKE [1:08:11] FURTHER INQUIRY IF NECESSARY, AND MAKE SURE THAT ANY POTENTIAL CONCERNS OR OBSERVATIONS ARE [1:08:16] DOCUMENTED AND MAINTAINED. ALSO POLICY AND PROCEDURE DOCUMENTS SHOULD BE UPDATED AND REFLECTED TO KIND OF UPDATE THESE [1:08:23] EXPECTATIONS. LONGER TERM A PART OF THE OVERSIGHT AND MONITORING, THE CITY SHOULD BE [1:08:28] ESSENTIALLY TRACKING THESE CONTRACTS TO IDENTIFY OPPORTUNITIES FOR ADDITIONAL CONTROLS AND OVERSIGHT OVER THESE TYPES OF CONTRACTS AS THEY [1:08:36] DO FOLLOW A UNIQUE PROCUREMENT PRACTICE. ADVANCED PAYMENT [1:08:41] PRACTICES. SO THE CITY SHOULD CLEARLY STATE WHEN ADVANCED PAYMENTS ARE ALLOWED, ENSURE THERE IS A CLEAR APPROVAL [1:08:46] PROCESS FOR SUCH PAYMENTS, AND ENSURE THAT THERE IS CLARITY IN WHAT IMR REIMBURSEMENT EXPENSES [1:08:52] ARE ASSOCIATED WITH IN THE ADVANCED PAYMENT AND HOW THE CONTRACT MANAGER WILL RECONCILE EXPENSES SO AS WE NOTED THIS ONE [1:08:59] DIDN'T REALLY CLEARLY ARTICULATE THE EXPENSES IN THE CONTRACT BUT IN TERMS OF THE PROCESS, THE [1:09:05] CITY GENERALLY DISCOURAGES ADVANCED PAYMENTS. AS WE NOTED IN THE REPORT, THERE ARE [1:09:10] RESERVESES IN SOME OF THE -- REFERENCES IN? REFERENCES IN SOME OF THE [1:09:16] VARIANCE DOCUMENTS AROUND ADVANCED PAYMENTS SUCH AS IN ONE OF THE PROCEDURES FOR [1:09:22] PROFESSIONAL CONSULTING SERVICES BETWEEN 100,000 TO $175,000 BUT [1:09:27] IT'S NOT CLEARLY UNIFORM ACROSS ALL DOCUMENTS THERE, YOU KNOW THAT CONSISTENT, DIRECT VIEWPOINT AND APPROACH. THEN AS [1:09:33] A RESULT IT CAN BE MANAGED -- CHALLENGED TO MATCH PAYMENTS TO THOSE ADVANCED PAYMENTS, CAUSING [1:09:40] ADDITIONAL TIME AND ENERGY SUCH AS WE HAD TO CONDUCT IN THIS CONTRACT TO DETERMINE THOSE. SO [1:09:47] WE RECOMMEND THE CITY CLEARLY STATE RSTATE STATE [1:09:55] RECOMMENDATIONS AND UNDER WHAT CIRCUMSTANCES THEY MAY BE CONSIDERED OR UTILIZED SO THE FINANCE LEVEL CENTRALIZE THAT. [1:10:01] THE PROCESS AND YOU KNOW CLEARLY STATE IN THOSE DOCUMENTS WHAT IS [1:10:06] THE CITY'S VIEWPOINT, WHAT IS THE STANCE, SET THAT EXPECTATION, PROCUREMENT SHOULD [1:10:11] INCURE ALL DEPARTMENTS ARE AWARE OF THE EXPECTATIONS AND THAT FINANCE IS ESTABLISHED, AND THAT [1:10:22] APPLICABLE REQUIREMENTS ARE SET FORWARD. THE CITY SHOULD ESTABLISH A CLEAR APPROVAL PROCESS FOR PROCUREMENT, CITY [1:10:29] ATTORNEY'S OFFICE, CHIEF FINANCIAL OFFICER, OTHERS, ARE CLEARLY AWARE OF AND APPROVE THE PAYMENT WITH CLEAR CONTRACT [1:10:34] LANGUAGE. SO HAVING THAT PROCESS IF THERE IS A NEED FOR [1:10:41] THAT. THROUGH DISCUSSIONS WE INQUIRED ABOUT THE ADVANCED PAYMENT MADE TO THIS ONE AND THERE WAS CLARITY AROUND [1:10:48] AWARENESS OF IT AND HOW IT APPLIED TO T THINGS AND HOW AT THE PROCUREMENT FINANCE LEVEL [1:10:54] BEFORE IT GETS TO THE CONTRACTING STAGE. SOME OTHER RECOMMENDATIONS CONTINUED. SO [1:11:00] CONTRACTS CLEARLY IDENTIFY THAT ADVANCED PAYMENT WILL OCCUR AND THAT CONTRACTS WILL ATTACH [1:11:07] EXHIBITS, IDENTIFY THE SPECIFIC LINE ITEMS THE PAYMENT WOULD BE ATTACHED TO. PRIOR TO THE FINAL [1:11:12] CONTRACT, CONTRACT MANAGERS AND VENDORS SHOULD HAVE THAT CLEAR UNDERSTANDING AND AWARENESS AND [1:11:18] RECOGNITION AROUND THOSE ADVANCED PAYMENT AND HOW TO BE UTILIZED AND KIND OF BE ABLE TO [1:11:25] PERFORM EACH -- AND AGAIN AT THE FINANCE LEVEL, KIND OF ESTABLISH WAYS TO ESSENTIALLY TRACK AND [1:11:30] MONITOR THE USE OF ADVANCED PAYMENTS AND HOW THEY ARE BEING UTILIZED, PROVIDE OVERSIGHT AND MONITORING OF THEM. CONTRACTING [1:11:37] PROCESS. SO CONTRACTS DRAFTED BY DEPARTMENTS SHALL CLEARLY IDENTIFIED ALLOWABLE AND UNALLOWABLE EXPENSES AS PART OF [1:11:43] THE CONTRACT WITH DETAILED INVOICES AND BUDGETS. SO YOU KNOW FOR THIS CONTRACT DID NOT [1:11:50] 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 [1:11:57] EXPENSE CALCULATIONS OR RATES. AND LACK OF CLARITY AND SPECIFICS IN THE CONTRACTING [1:12:04] PROCESS CARRY FORWARD INTO THE CONTRACTING AND MANAGEMENT STAGE REQUIRING MORE TIME AND ENERGY AND RESOURCES TO REVIEW [1:12:09] INVOICES, SUPPORTING DOCUMENTATION, AND PROVIDE THAT FINANCIAL OVERSIGHT SOME MORE TIME ON THE BACK END SPENT IN [1:12:15] DETERMINING WHAT MIGHT BE ALLOWED OR WHAT'S NOT ALL ALLOWED AND HOW IT FITS INTO THE CONTRACT IF YOU DON'T [1:12:21] PARTICULARLY AT THE FRONT END WHAT WORK WILL BE PERFORMED AND WHAT'S ALL ALLOW , WHAT'S [1:12:28] NOT ALLOWED. SETTING EXPECTATIONS CAN FACILITYITATE A MORE TIMELY AND SMOOTH [1:12:35] CONTRACTING EXPERIENCE FOR THE CITY AND THE CONTRACTOR KNOWING WHAT THEY CAN EXPENSE AND WHAT THEY CANNOT EXPENSE SO WE HAVE [1:12:41] SPECIFIC RECOMMENDATIONS HERE FOR THE HEALTH DEPARTMENT AND FOR PROCUREMENT. SO YOU KNOW, HEALTH DEPARTMENT PRIOR TO CONTRACT SIGNING, AND AS PART OF [1:12:47] THE CONTRACT AND EXHIBITS, ENSURE THAT THERE IS SUFFICIENT EXPENSE DETAILS TO ALLOW FOR ADEQUATE RECONCILIATION AND [1:12:52] UNDERSTANDING OF THE COSTS, SUCH AS HOW ITEMS SUCH AS STAFFING CAN BE UTILIZED AND THE RATE [1:12:58] CALCULATIONS THAT WE UTILIZE TO DETERMINE THOSE EXPECTED COSTS. [1:13:03] ARTICULATE ALLOWABLE AND ALLOWED EXPENSES PRIOR TO THE CONTRACTING SIGNING, ENSURING THAT YOU KNOW THAT THERE IS [1:13:08] CLARITY AND ALIGNMENT WITH THE CITY AND THE CONTRACTOR. SIMILARLY FOR PROCUREMENT, YOU [1:13:14] KNOW, WE RECOMMEND THAT THEY KIND OF SET STANDARDS AND CLARITY AROUND ALLOWABLE AND [1:13:20] UNALLOWABLE EXPENSES AS PART OF THE UPDATES TO EXPECTATIONS IN THE DOCUMENT SUCH AS THE CITY'S FINANCIAL MANAGEMENT POLICY AND [1:13:25] OTHER CONTRACTING POLICY AND PROCEDURES. PROVIDE DOCUMENTING AND GUIDANCE ON ALLOWABLE AND [1:13:31] UNALLOWABLE EXPENSES, COST CALCULATIONS AND OTHER DETAILS [1:13:37] FOR -- PROVIDE MORE RESOURCE, GUIDANCE, KIND OF SET THOSE EXPECTATIONS AROUND WHAT THEY CAN EXPECT IN TERMS OF BEING [1:13:43] SPECIFIC AND BEING AROUND ALLOWABLE AND UNALLOWABLE EXPENSES AND SOME OF THAT [1:13:49] CONTRACT LANGUAGE. AND AS WE [1:13:54] NOTED FOR THIS RECOMMENDATIONS CAN BE APPLIED FOR HEALTH DEPARTMENT CAN BE APPLIED FOR PLOCUREMENT, YOU KNOW, CAN BE APPLIED ENTERPRISE-WIDE. SO [1:14:00] INVOICE REVIEWS, DOCUMENTATION, AND TRACKING. SO AS WE NOTED FOR THIS ONE, THE HEALTH [1:14:06] DEPARTMENT SHOULD ENSURE ALL INVOICES ARE RECONCILED WITH SUPPORTING DOCUMENTATION, AND THAT ALL DOCUMENTATION HAS BEEN [1:14:12] RECEIVED PRIOR TO PAYMENT WITH INVOICES AND PAYMENTS SUFFICIENTLY TRACKED. SO IT CAN [1:14:19] AS WE NOTED IT CAN BE UNCLEAR ON DIFFERENT EXPECTATIONS AMONG DIFFERENT DEPARTMENTS AND CONTRACT MANAGERS REGARDING [1:14:24] RESPONSIBILITY OF REVIEWING INVOICES AND DOCUMENTATION. IT CAN ALSO BE A LACK OF CLAIRBTY REGARDING WHAT IS SUFFICIENT AND [1:14:30] WHAT IS NOT SUFFICIENT, SO YOU KNOW, IS A PIECE OF PAPER, THIS PIECE OF PAPER SUFFICIENT OR IS THIS RECEIPT SUFFICIENT TO, YOU [1:14:36] KNOW, BACK UP THOSE EXPENSES AS WE NOTED, YOU KNOW, ALL MOST OF CITY CONTRACTS ARE ON A [1:14:41] REIMBURSABILITY BASIS OF THE CITY'S PAYING FOR SOMETHING THAT, YOU KNOW, EXPENSE THAT HAD ALREADY OCCURRED THAT WE ARE [1:14:49] PAYING FOR. AS PART OF THIS, EFFECTIVE CONTRACT MANAGEMENT, [1:14:55] THESE REVIEWS SHALL TIE INTO OTHER OVERSIGHT RESPONSIBILITIES SUCH AS SIGHT VISITS, REQUESTING [1:15:00] AND REVIEWING PERFORMANCE REPORTS, AND SUPPORTING INFORMATION FOR THOSE AND OTHER ACTIVITIES. SO AS PART OF, WHEN IT COMES TO CONTRACT MANAGEMENT, [1:15:07] CONTRACTING STAGE, THOSE KIND OF FINANCIAL MANAGEMENT ASPECT OF THE REVIEWING THE INVOICES, REVIEWING SUPPORTING [1:15:12] DOCUMENTATION PRIOR TO PAYMENT, BUT THEN THERE IS ALSO CONTRACTING MANAGEMENT AND OVERSIGHT SUCH AS SITE VISITS, MAKING SURE THE WORK IS ACTUALLY [1:15:18] BEING PERFORMED, MAKING SURE THERE IS, THE CITY'S RECEIVING WHAT IT'S PAYING FOR ON THE [1:15:28] OTHER END THERE. SO FOR THE HEALTH DEPARTMENT WE RECOMMEND THAT IN ACCORDANCE WITH [1:15:34] OVERSIGHT PRACTICES, ENISSURING THAT EXPENSES ARE SUPPORTED BY THAT SUFFICIENT DOCUMENTATION, SO ESTABLISH A CENTRALIZED WAY [1:15:41] OF TRACKING CONTRACTS, INVOICES, AND SUPPORTING DOCUMENTATION, PAYMENTS, AND OTHER KEY CONTRACT INFORMATION. ENSURE ALL [1:15:47] CONTRACT MANAGERS AND REVIEWING AND RECONCILING THOSE INVOICES AND PAYMENTS AND FINDING ADEQUATE FINANCIAL OVERSIGHT. THIS MAY REQUIRE, YOU KNOW, [1:15:54] ADDITIONAL WORK AND, ADDITIONAL WORK AND KIND OF COMMUNICATION [1:16:00] TO COMMUNICATE WITH THE VENDOR, COMMUNICATE WITH OTHERS FOR, YOU KNOW, ADDITIONAL INFORMATION AND CLARITY SUCH AS, YOU KNOW, IF WE [1:16:07] DON'T RECEIVE SUPPORTING DOCUMENTATION, IF THERE ARE QUESTIONS AROUND IT, BUT THAT'S WHERE IT SHOULD BE KIND OF OCCURRING IN THAT CONTRACT [1:16:14] MANAGER STAGE. WORK WITH PROCUREMENT AND THE CITY ATTORNEY'S OFFICE ON UNDERSTANDING WHAT IS ACCEPTABLE FOR SUPPORTING DOCUMENTATION AND [1:16:20] WHAT'S NOT. AND WHAT INFORMATION MUST BE INCLUDED ON [1:16:25] THE SUPPORTING DOCUMENTATION. MANAGEMENT SHOULD WORK TO ESTABLISH METHODS OF OVERSIGHT AND MONITORING OF CONTRACTS SUCH [1:16:31] AS ENSURING CONTRACTS ARE UPDATING INFORMATION, THERE IS THAT REVIEW AND RECONCILIATION PRIOR TO PAYMENT, AND THAT ALL [1:16:39] INFORMATION AND REPORTS SUCH AS PROPOSAL DOCUMENTS ARE RECEIVED PRIOR TO FINAL PAYMENT. FOR [1:16:44] PROCUREMENT, SIMILAR TO THE HEALTH DEPARTMENT BUT WITH SETTING FINANCIAL POLICIES, [1:16:49] SETTING THAT KIND OF EXPECTATION AROUND, IT'S CLEAR FOR USERS [1:16:56] WHAT IS REQUIRED AROUND REVIEWING OF INVOICES AND RECONCILIATION, MAKING SURE THAT [1:17:01] IT'S CLEAR AND CONSISTENT ACROSS THE ENTERPRISE AROUND WHAT CONTRACT MANAGERS ARE REVIEWING [1:17:07] AND KIND OF WHAT THEY ARE APPROVING FOR. DOCUMENTATION AND PAYMENTS, AS PART OF THE [1:17:14] PROCEDURE DOCUMENTS, DEVELOP GUIDANCE AND RESOURCES FOR CONTRACT MANAGERS ON WHAT IS SUFFICIENT DOCUMENTATION, YOU [1:17:20] KNOW, AND COMMUNICATE PROACTIVELY SUCH AS THROUGH TRAINING, THROUGH CITY TALK, THROUGH EMAIL, THROUGH UPDATES, [1:17:25] MAKING SURE THAT WHEN SOMETHING OCCURS, WHEN THERE IS, YOU KNOW, A NEED FOR CLARITY OR KIND OF [1:17:31] MAYBE BENEFICIAL, SETTING OUT THOSE UPDATES VIA THE ENTERPRISE AROUND YOU KNOW WHAT MIGHT BE [1:17:38] ACCEPTABLE, WHAT MIGHT NOT BE AND IF THERE IS A TREND OR SOMETHING COMES UP AS PART OF [1:17:43] OF THAT OVERSIGHT AND THEN COMMUNICATE EXPECTATIONS TO CONTRACT 345678GERS AND CONTINUE TO WORK WITH THE CITY ATTORNEY'S [1:17:49] OFFICE IN IMPLEMENTING TRAINING SO THERE HAS BEEN SOME WORK ON TRAINING WITH ATTORNEY'S OFFICE [1:17:54] AND PROCUREMENT AROUND FOR CONTRACT MANAGERS AND KIND OF CONTINUING THAT WORK, CONTINUING THAT EXPECTATIONERSE FINDING [1:18:00] WAYS TOO TO BE MORE PROACTIVE ON A REGULARLY [1:18:06] IDENTIFIED BASIS TO GET INFORMATION OUT. SO TH THAT THE LAST ONE QUICKLY IS EXPEDITED CONTRACTING [1:18:12] PROCESS. SO WE SHOULDN'T, YOU KNOW NOTED THAT THE CITY SHOULD ESTABLISH A CLEARLY [1:18:18] COMMUNICATED, WELL-DEFINED DOCUMENTED PROCESS WITH APPROVALS AND CLEAR OVERSIGHT FOR SITUATIONAL AND URGENT [1:18:23] 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 [1:18:29] WORK THAT WAS PERFORMED, BUT WHEN IT DOES THAT, IT CREATES PRESSURE ON THE STAKEHOLDERS, IT [1:18:35] CREATES PRESSURE ON PEOPLE IN THE PROCESS THAT MAY NOT BE AWARE OF THE NEED FOR THE [1:18:41] URGENCY. YOU KNOW, THERE MIGHT BE GET SOMETHING ON THE DESK AND THIS HAS TO BE SIGNED OR SENT [1:18:46] OUT TODAY, THOSE STUFF, THOSE PRESSURES, THOSE BURDENS CAN [1:18:54] CREATE INSTANCES WHERE CONTRACTING PROCESSES GO OFF TRACK OR MIGHT NOT HAVE BEEN, YOU KNOW, ADDITIONAL CHALLENGES [1:19:01] AND WORK ARE AS WE SAW FOR THIS ONE, WERE YOU KNOW ADDITIONAL WORK KIND OF SPENT REVIEWING ON [1:19:06] THE BACK END WHAT HAPPENED. WE RECOGNIZE THAT WHILE THERE MAY BE NEEDS, TIMES FOR THE CITY TO QUICKLY BE ABLE TO FIND A [1:19:13] CONTRACTOR OR DO THAT WORK, YOU KNOW, AS PART OF THAT, YOU KNOW, TO KIND OF ADJUST THE RISK AND [1:19:18] IMPACTS, YOU KNOW, INCREASE RISK AND IMPACTS, YOU KNOW, WE RECOMMEND THE CITY CONSIDER [1:19:24] ESTABLISHING CLEAR GUIDELINES AND PROCESSES FOR WHEN IT IS DETERMINED A CONTRACTING PROCESS IS URGENT AND MUST MOVE QUICKLY [1:19:30] SUCH AS ESTABLISHING KIND OF THAT GROUP OF STAKEHOLDERS, SOME OF KIND OF THE PERMANENT REVIEW [1:19:36] COMMITTEE OR OTHERS TO REVIEW THE SITUATION REQUEST, DETERMINE FIRST IF THERE IS THAT NEED. YOU KNOW, A LOT OF TIMES MAYBE [1:19:42] IT CAN BE HANDLED THROUGH EXISTING CONTRACT OR EXISTING WORK OR MAY NOT BE THAT, YOU KNOW, AS URGENT AS THE [1:19:49] STAKEHOLDER IN THE MOMENT THINK THAT IT SAID BUT HAVING THAT KIND OF OVERSIGHT FROM THAT FINANCE LEVEL, THAT PROCUREMENT [1:19:55] LEVEL, TO KIND OF MAKE THAT DETERMINATION AND THEN THAT STAKEHOLDER GROUP CAN BE ALIGNED [1:20:00] AND K MAKE THE, INFORM THE NEED FROM THE START, REDUCE [1:20:05] INEFFICIENCIES AND ENSURING THERE IS CLARITY AND CONSISTENT COMMUNICATION AND ENSURE THAT -- IN A TYPICAL CONTRACT PROCESS, [1:20:11] THERE ARE MANY PEOPLE INVOLVED THROUGHOUT THE CITY. HIGHLIGHTING THE NEED FIRST [1:20:18] INSTEAD OF KIND OF AFTER THE FACT. SO YOU KNOW, A GROUP OF STAKEHOLDERS SUCH AS THE DEPARTMENT OF PROCUREMENT, CITY [1:20:24] ATTORNEY'S OFFICE AND OTHERS CAN DETERMINE AS IF THERE IS THAT NEED, WORK WITH THE DEPARTMENT TO MAKE SURE THAT THE NEEDS ARE [1:20:30] CLEAR, AND WHAT THEY SPECIFICALLY WANT AND NEED, PROVIDE CLEAR ROLES AND [1:20:35] RESPONSIBILITIES AMONG GROUPS AND STAKEHOLDERS IN THE CONTRACTING PROCESS, ENSURING THAT NEEDS AND OBJECTIVES ARE ALIGNED AND IS THAT EXPEDITED [1:20:41] CONTRACTING PROCESS IS NECESSARY, AND THAT EVERYONE HAS THAT SAME UNDERSTANDING SO EVERYONE'S SAM PAGE AND EVERYONE [1:20:47] HAS THE SAME AWARENESS OF THE SAME KIND OF DEDICATION, THE [1:20:52] SAME KIND OF TIME TABLE TO GET THE WORK DONE, ENSURING THAT THERE ARE CLEAR POLICIES AND [1:20:57] PROCEDURES FOR THIS PROCESS OR FOR THESE KIND OF CONTRACTS, AND [1:21:02] 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 [1:21:10] SHOULD BE OCCURRING, OVER TIME BEING ABLE TO MAKING SURE THAT [1:21:16] ALL SIGNOFFS ARE COMPLETED AND EFFECTIVELY AND EFFICIENTLY MAKE SURE THE PROCESS IS GOING. [1:21:22] HAVING AWARENESS AND ALIGNMENT FROM THAT ONE GROUP. SO THOSE ARE OUR RECOMMENDATIONS, YOU [1:21:28] KNOW, WHAT WE SAW THROUGHOUT THIS CONTRACT AND RECOMMENDATIONS. AS I SAID THIS [1:21:33] WASN'T UNIQUE FOR THE HEALTH DEPARTMENT. SOMETHING THAT WE'VE NOTED FOR THE ENTERPRISE AND KIND OF HOPE TO CARRY [1:21:38] FORWARD THE ENTERPRISE. WE DO ARE SOME OTHER ONGOING WORK -- WE DO HAVE SOME OTHER ONGOING WORK RELATED TO PROCUREMENT AND [1:21:48] REVIEWING AS WE CALLED OUT IN THE ENTERPRISE RISK ASSESSMENT, SOME OF THOSE RISKS THAT WE HAVE BEEN TRACKING, MONITORING AROUND [1:21:54] THOSE SINGLE SOURCE/SOLE-SOURCE CONTRACTS. WE CONTINUE TO FOLLOW UP WITH THE RESPONSIBLE [1:21:59] PPARTIES AS NECESSARY AND INCORPORATE THIS INTO OUR WORK. AND I APPRECIATE MANAGEMENT'S [1:22:06] WORK IN HELPING WITH THIS AS REREVIEW THIS INFORMATION, IT [1:22:13] WAS HELPFUL TO HAVE THAT COORDINATED RESPONSE AND MAKE SURE THAT WE ALL UNDERSTAND WHAT HAPPENED AND HOW WE CAN AS A [1:22:22] CITY IMPROVE. I BELIEVE BRETT MIGHT HAVE SOME COMMENTS OR IF NOT, ALSO I AS I SAID QUESTIONS [1:22:27] ON THE WHAT WE SAW. IT CAN BE FOR ME. ALSO MANAGEMENT IS HERE FROM A COUPLE DEPARTMENTS WHO [1:22:36] MIGHT BE ABLE TO ANSWER QUESTIONS. >> THANK YOU FOR THE PRESENTATION. DID YOU WANT TO MAKE SOME COMMENTS, MR. HJELLE. [1:22:51] >> THANK YOU, CHAIR PAYNE, AND COMMITTEE MEMBERS. I'M BRETTE H [1:22:59] JELLE. I APPRECIATE THE OPPORTUNITY TO FOLLOW MR. KAMM'S PRESENTATION WITH SOME BRIEF COMMENTS. FIRST, I WANT TO [1:23:04] THANK THE AUDITOR TIMMEREN AND HIS TEAM FOR THEIR COLLABORATIVE [1:23:10] APPROACH DURING THEIR REVIEW. I ALSO WANT TO THANK THE HEALTH DEPARTMENT, FINANCE AND PROPERTY SERVICES FOR APPROACHING THIS REVIEW WITH THE SAME [1:23:16] COLLABORATION. THESE ARE OPPORTUNITIES TO LEARN WHAT WE'RE DOING WELL AND AREAS WHERE WE CAN MAKE IMPROVEMENTS. [1:23:23] MANAGEMENT'S RESPONSE IS INCLUDED WITH THE AUDIT REPORT. AND THE PURPOSE OF THE MANAGEMENT RESPONSE IS TO NOTE [1:23:29] CHANGES WE'VE PUT INTO PLACE AS THIS REVIEW WAS IN PROCESS. [1:23:35] THESE INCLUDE IMPROVED CONTRACT, CONTRACT TRACKING, ADDITIONAL TRAINING, AND FORMALIZING STANDARD OPERATING PROCEDURES. [1:23:41] IT ALSO PROVIDES SOME C CONTEXT FOR THE PARTICULAR NEED AT THE MOMENT IN TIME FOR [1:23:46] CULTURALLY SPECIFIC HOUSING, SUBSTANCE USE DISORDER, AND MEANTAL HEALTH RESOURCES FOR THE [1:23:52] 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. [1:23:58] >> THANK YOU. IS THERE ANY QUESTIONS FROM COMMITTEE MEMBERS? MEMBER HOSBEIN. [1:24:07] >> THANK YOU, CHAIR PAYNE. I DID HAVE A QUICK QUESTION ON THE [1:24:13] MANAGEMENT RESPONSE AND THANK YOU FOR PROVIDING THAT IN THAT [1:24:18] CONTEXT FROM BOTH GROUPS ON FUTURE FOLLOW-UP. I THINK I'M USED TO SEEING KIND OF EACH OF THE RECOMMENDATIONS KIND OF [1:24:24] TRACKED WITH A TIMELINE WITHIN OUR REPORTS. I JUST WANT TO MAKE SURE THAT THE AUDIT COMMITTEE OR THE AUDIT TEAM [1:24:29] FEELS COMFORTABLE THAT THE MANAGER RESPONSE AND THE OTHER [1:24:34] ENTERPRISE EFFORTS IS GOING TO MEET THE NEEDS OF THIS SPECIFIC [1:24:40] EXAMPLE. >> CHAIR PAYNE, COMMITTEE MEMBER HOSBEIN, GOOD QUESTION. THANK YOU FOR HIGHLIGHTING THAT. THIS [1:24:45] WASN'T A TYPICAL AUDIT, YOU KNOW, WE -- PART OF THE AUDIT PROCESS YOU SEE SPECIFIC [1:24:52] RECOMMENDATIONS, KIND OF MANAGEMENT RESPONSES FOR EACH ONE. AS THIS WAS AN ADVISORY SERVICE, KIND OF LIMITED [1:24:58] CONTRACT REVIEW, KIND OF FOLLOWED A DIFFERENT PROCESS SO IN TERMS OF THE MANAGEMENT RESPONSES THAT THEY WEREN'T [1:25:04] FORMAL AUDIT ISSUES SO THERE'S SOMETHING THAT WE WILL KEEP TRACK OF. AS IT'S KIND OF [1:25:10] OUTLINED WE HAVE FUTURE WORK AND ONGOING WORK ALREADY AROUND CONTRACT PROCUREMENT, SOME OF [1:25:15] THESE PROSES AND IT BE INCORPORATE -- PROCESSES AND TO BE INCORPORATED INTO THOSE PROCESSES AS WELL AS RISK [1:25:20] ASSESSMENT TO DETERMINE THAT WORK IS BEING DONE IF WE SEE THOSE RISKS BEING HIGHLIGHTED OR [1:25:25] REPRESENTED AGAIN. SO SOMETHING THAT WE ARE ACTIVELY TRACKING AND MONITORING AND HOPE TO DO [1:25:30] SOME SPECIFIC ENGAGED AUDIT WORK OR STRUCTURED AUDIT WHERE WE CAN [1:25:36] PROVIDE THAT SPECIFIC TARGETED REVIEW OF A PROCESS AND INTERNAL CONTROLS VERSUS THIS WAS THAT MORE OF A NARROW SCOPE. [1:25:43] >> PERFECT. THANK YOU FOR THAT AND DO I HAVE A COUPLE OF QUESTIONS UNLESS SOMEONE ELSE IS [1:25:48] IN QUEUE. AND THEN ALSO IN TERMS OF IT AS BEING A SINGLE SOURCE CONTRACT AND THE [1:25:56] DUPLICATE PAYMENTS, IN YOUR REVIEW, OF THE KIND OF SUPPLEMENTAL INFORMATION THAT [1:26:01] CAME IN, WAS THERE ANY CONCERNS THAT YOU SAW FOR WHAT SHOULD'VE OR SHOULDN'T HAVE BEEN [1:26:06] APPROVED? WHENEVER THERE IS SOMETHING LIKE THIS, IT JUST FEELS A LITTLE [1:26:12] ICY, LIKE IT 12349 BEST PRACTICE. I KNOW WE ARE STILL UNDER BUDGET FOR THE CONTRACT LISTED BUT IN TERMS OF THAT [1:26:22] SECONDARY TO MAKE UP TO 177K, DID THAT INVOICE FEEL ROBUST? DID IT FEEL LIKE WHAT SHOULD'VE [1:26:30] BEEN CHARGED FOR? >> COMMITTEE MEMBER, CHAIR PAYNE, COMMITTEE MEMBER HOSBEIN, I THINK MANAGEMENT CAN PROBABLY BE A LITTLE MORE -- PROVIDE A [1:26:36] LITTLE BIT MORE SPECIFICS ON THAT. OUR REVIEW WAS AT THE [1:26:42] TAIL END OF WORK FOR ANY OF OUR WORK, WE ARE REVIEWING WHAT MANAGEMENT HAS DONE, WHAT MANAGE MENT HAS CONDUCTED AND IF THERE [1:26:47] IS NOT SUFFICIENT SUPPORTING DOCUMENTATION, SUPPORTING DOCUMENTATION TO KIND OF SUPPORT THAT WORK, I THINK THAT WE KNOW [1:26:52] THAT AROUND THE USE OF THAT TIES INTO SOMETHING WE TALKED ABOUT AROUND THOSE COST CATEGORIES AND [1:26:58] THE COST EXPENSES ARE PART OF THIS CONTRACT IN TERMS OF WHAT THE CITY WAS PAYING FOR, IF IT [1:27:04] WAS THAT FULL YEAR OR TARGETED SERVICES. IT WASN'T CLEAR IN REVIEWING KIND OF THE OTHER [1:27:12] INVOICES WHAT WAS EXPECTED IN TERMS OF MAXING OUT THE STAFFING COST, THAT KIND OF STUFF. SO [1:27:18] KIND OF NOTE THAT AND THEN KIND OF THE NOTE THAT IN TERMS OF THAT FINAL INVOICE PAYMENT THAT WAS REVIEWED AND APPROVED BY [1:27:25] MANAGEMENT THAT WAS KIND OF AS I [1:27:31] 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 [1:27:36] THINK EVERYTHING KIND OF PLAYS INTO, YOU KNOW, THEY HAVE, HAVING TO DO THAT AND NOTE THE USE OF THOSE, THAT -- APPLYING [1:27:45] STUFF AFTER THE FACT WHICH CREATES MORE DIFFICULTY, MORE UNCERTAINTY, MORE TIME AND RESOURCES FOR EVERYONE INVOLVED. >> YEAH, ABSOLUTELY. AND I KNOW [1:27:53] THE COMMENT IT FEELSICY ISN'T [1:27:58] SUPER HELPFUL. THERE IS REVERSE REPAYMENT AND THEN SUBMITTING ANOTHER TRUE INVOICE THAT WAS [1:28:04] KIND OF THE PATH CHO CHOSEN. [1:28:10] I WANTED TO PROVIDE THAT COMMENT. THIS IS NOD AUDIT DIRECT BUT IT SOUNDS LIKE FROM THE CONTRACT OVERSLEW THAT WAS [1:28:15] PROVIDED AND MANAGEMENT RESPONSE, THAT THIS WAS A SUCCESS, AND I THINK WITH ALL AUDITS, LIKE, THIS PROGRAM SEEMS [1:28:23] 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 [1:28:31] SUSTAINABLE PATH MOVING FORWARD OR IF THERE IS OTHER PIECES THAT WE SHOULD BE CONSIDERING AS, IN [1:28:36] ADDITION TO THE DOCUMENTATION AND KIND OF BEST PRACTICES AROUND THE PAYMENT. [1:28:41] >> YEAH, SO THAT WAS OUTSIDE OF OUR REVIEW'S AUDIT, BUT IF [1:28:47] SOMEONE IS AVAILABLE TO COMMENT ON WHAT YOU JUST SAID. [1:28:52] >> PERFECT, THANK YOU. >> CHAIN PAYNE, IF I'M GOING OUT [1:28:58] OF SCOPE, PLEASE PULL ME BACK. >> CHAIR PAYNE, COMMITTEE MEMBER [1:29:05] HOSBEIN, CAN YOU REPEAT YOUR QUESTION, PLEASE. >> I WAS JUST COMMENTING IN THE [1:29:10] MANAGEMENT RESPONSE, THE CONTRACT SEEMED LIKE IT PROVIDED A SERVICE THAT WAS SUCCESSFUL FOR THESE 94 PEOPLE, AND I WAS JUST CURIOUS ABOUT THE [1:29:16] DEPARTMENT'S VIEW THAT THIS WAS A MODEL THAT SHOULD'VE BEEN USED, THAT MINUS THE POTENTIAL [1:29:22] OTHER CONCERNS ON THE DOCUMENTATION AND ADMINISTRATION THAT THIS WAS A SUCCESSFUL PROGRAM, AND KIND OF MONEY, NOT [1:29:28] MONEY WELL SPENT, BECAUSE ANY SPENT MONEY SPENT TO HELP A SINGLE INDIVIDUAL IS ALWAYS IN [1:29:34] 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 [1:29:39] WAS SUCCESSFUL GIVEN THE TIME AND THE ISSUE WE WERE DEALING WITH. WE WERE TALKING ABOUT [1:29:46] ENCAMPMENTS, DECOMMISSIONING ENCAMPMENTS AND GETTING FOLKS INTO HOUSING AND TREATMENT. I THINK THE OTHER PIECE OF THIS WE [1:29:51] NOTICED THIS PARTICULAR CONTRACT, WE NOTICED THE NUANCE AROUND HOMELESSNESS WHERE FOLKS [1:29:57] WERE MOVING IN HERDS, AND T SO THAT WAS ONE OF THE NUANCES WITH THIS PARTICULAR STRATEGY. [1:30:03] SO YES, WE THINK IT WAS SUCCESSFUL FOR THAT PARTICULAR TIME PERIOD BUT WE WERE ALSO LOOKING FOR OTHER STRATEGIES. [1:30:08] >> 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 [1:30:14] WOULD ANSWER THIS, WELL, IF YOU'RE, IF YOU'RE UP HERE, THANK [1:30:20] YOU. I WILL ASK MY SECOND QUESTION, WHICH WAS, IS SIMPLY IS THE DEPARTMENT OF HEALTH, IS [1:30:25] THIS NORMAL TO SUBCONTRACT THESE KIND OF SERVICES OR IS THIS SOMETHING THAT WOULD BE TAKEN [1:30:32] CARE OF DARE I SAY, LIKE IN HOUSE IF IT WAS MAYBE A SMALLER ISSUE? HOW DOES THAT WORK IN [1:30:38] TERMS OF THESE SUBCONTRACTS AND DO WE HAVE MORE THAN JUST THIS ONE OUT THERE? [1:30:44] >> WELL, I'LL SPEAK IN GENERAL, CHAIR PAYNE. >> DID I USE THE RIGHT TERM, THIS SOLE -- >> SINGLE SOURCE? >> YES, THANK YOU. [1:30:50] >> CHAIR PAYNE, COMMITTEE MEMBER THOMPSON, I'LL SPEAK IN GENERAL TERMS IF YOU HAVE MORE SPECIFIC, I HAVE STAFF THAT CAN HELP. IN [1:30:57] GENERAL, WE DON'T DO SINGLE SOURCE, AND IN THIS PARTICULAR CASE BECAUSE OF THE SITUATION, [1:31:02] WROA WE DID. IT'S AN AVENUE THAT'S AVAILABLE TO US AS CITY MEMBERS AND DEPARTMENTS. WE [1:31:07] WERE FOCUSING ON NATIVE AMERICAN COMMUNITIES AND FOLKS THAT WERE IN HOUSE ENCAMPMENTS AND ALSO [1:31:13] HAD SUBSTANCE ABUSE ISSUES AS WELL. SO IN THAT PARTICULAR SITUATION, THIS IN MY OPINION IT [1:31:18] WAS, YOU KNOW, IT WAS VERY CLOSE TO WHERE IT WOULD FIT THE CATEGORY FOR SINGLE SOURCE, IN [1:31:25] ADDITION. AGAIN, AS I MENTIONED BEFORE, THE NUANCE FOR THIS PARTICULAR ONE IS THAT WE HAD INFORMATION AND WE REALIZED THAT [1:31:30] FOLKS WERE MOVING IN HERDS, THEY WERE MOVING IN GROUPS OF FOLKS TOGETHER, AND THAT WAS KIND OF [1:31:36] THE DIFFERENCE WITH THIS PARTICULAR ONE. >> THAT MAKES SENSE TO ME. THANK YOU. I DON'T NEED TO ASK MY OTHER QUESTION. THANK YOU. [1:31:46] >> MM-HMM. VICE CHAIR SINGLETON. >> THANK YOU. AND I THINK THIS IS MORE ON THE CONTRACTING SIDE, SO MAYBE A QUESTION FOR [1:31:52] MR. KAMM. THANK YOU, CHAIR PAYNE. BUT, AND LET ME KNOW IF THIS IS BETTER HELD FOR OUR NEXT [1:31:59] AGENDA ITEM BUT I'M WONDERING IF IN REVIEWING THIS PARTICULAR [1:32:04] CONTRACT AND WITH YOUR GENERAL AWARENESS OF OTHER CONTRACTING AND PROCUREMENT PROCEDURES [1:32:10] ACROSS THE CITY, IF YOU'VE SEEN EXAMPLES OF CONTRACTS THAT LIKE [1:32:16] IF THE CITY HAS DONE A GOOD JOB IN OTHER SITUATIONS, OF CLEARLY STATING WHAT ACCEPTABLE OR [1:32:23] ALLOWABLE AND DISALLOWABLE EXPENSES ARE OF LIKE CLEARLY STATING DOCUMENTATION, [1:32:29] EXPECTATIONS, THAT COULD BE USED AND DEPLOYED THROUGHOUT THE ENTERPRISE. >> CHAIR PAYNE, COMMITTEE MEMBER [1:32:35] SINGLETON, GOOD QUESTION. I THINK AROUND THAT I DON'T WANT TO CALL OUT YOU KNOW SPECIFIC [1:32:42] 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 [1:32:47] 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 [1:32:54] KIND APPLY FOR THE AUDIT PLAN. WE HAVE A COUPLE CONTRACTING ONES WITH SOME DEPARTMENTS THAT [1:33:00] 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 [1:33:06] SOMETHING WE ACTIVELY LOOK FOR AS AUDIT AND ESPECIALLY THROUGH OUR DISCUSSIONS AS WE HIGHLIGHT [1:33:11] THROUGH THESE RECOMMENDATIONS AND KIND OF YOU KNOW THROUGH FUTURE WORK LIKE YOU KNOW WHAT IS KIND OF A GOOD MODEL, WHAT [1:33:19] ARE THOSE EXPECTATIONS AND HOPE TO IN THE NEAR FUTURE BE ABLE TO HIGHLIGHT SOME OF THOSE OR FULLY [1:33:25] PROVIDE SOME OF THE THESE RECOMMENDATIONS. HERE WE KIND OF MADE GENERAL RECOMMENDATIONS [1:33:32] FOR HEALTH DEPARTMENT AND YOU KNOW FOR THE ENTERPRISE, BUT WE HAVEN'T, YOU KNOW, COMPLETED TESTING ON SOME OF THE OTHER [1:33:38] STUFF LATELY OR ALL THAT, BUT HOPE TO IN THE FUTURE AND I THINK THAT'S SOMETHING WE [1:33:43] ACTIVELY LOOK FOR AS AUDIT IS WE ALWAYS FOCUS ON -- A LOT OF TIMES PEOPLE FEEL LIKE WE'RE [1:33:48] FOCUS ON WHAT'S NEGATIVE, WHAT'S BAD, WHAT'S NOT NECESSARILY WORKING WELL. BUT THROUGH OUR [1:33:53] DISCUSSIONS WE'RE ALWAYS LOOKING TO SEE WHAT DID WORK WELL, WHAT DO YOU LIKE TO HIGHLIGHT, WHAT IS SOMETHING YOU FOUND SUCCESS [1:34:00] IN. >> AND THEN SO MY QUESTION, AND [1:34:06] I WANT TO GIVE GRACE ON THIS ONE BECAUSE I WAS THERE KIND OF ON THE GROUND AS ALL OF THESE [1:34:12] DYNAMICS WERE UNFOLDING IN OUR COMMUNITY, AND I THINK IT'S EASY TO HIGHLIGHT YOU KNOW, MY [1:34:19] SIX-FIGURE DOUBLE PAYMENT THAT'S A BIG MISTAKE. IT'S EASY TO HIGHLIGHT PROOCUREMENT OR CONTRACT MANAGERS AS HAVING SOME [1:34:25] SORT OF FAILING IN THAT TYPE OF ERROR. BUT I THINK THAT IS DOWNSTREAM FROM HOW WE GOT INTO [1:34:31] THIS CONTRACT AND IT'S MY UNDERSTANDING THAT THIS WAS A BID OF A HANDSHAKE DEAL WITH THE [1:34:37] MAYOR, AND YOU KNOW, KIND OF COMING BACK TO CITY HALL AND SAYING, MAKE THIS HAPPEN AND I THINK STAFF DID THEIR LEVEL BEST [1:34:43] TO REALLY TRY TO BE RESPONSIVE TO THE MOMENT, AND I THINK THAT [1:34:49] THAT CREATED THE CONDITIONS FOR LOTS OF ERRORS JUST TO HAVE IT MOVING SO QUICKLY. AND I'M [1:34:58] WONDERING YOU KNOW, IN EXECUTIVE MAYOR SYSTEM, WHERE A DECISION IS MADE TO SAY MAKE THIS HAPPEN, [1:35:03] WHAT KIND OF CONTROLS ARE THERE TO SAY ACTUALLY THIS MIGHT BE TOO RISKY TO JUST MAKE HAPPEN. [1:35:10] LIKE IS THERE, DO WE SEE IN MANAGEMENT RESPONSE OF POLICY THAT DOES OUTLINE SOME SORT OF [1:35:16] RISK ANALYSIS THAT ALLOWS PROFESSIONAL STAFF TO SAY, HEY, ACTUALLY, NO,. [1:35:22] [LAUGHTER] [1:35:30] >> CHAIR PAYNE, AND AUDIT COMMITTEE MEMBERS, IN THE NEXT SEGMENT HERE WHEN I GO OVER SOME OF MY EARLY OBSERVATIONS I HAVE [1:35:36] A RECOMMENDATION RELATED TO THAT. IT IS NOT ILLEGAL FOR A [1:35:43] CITY COUNCILMEMBER OR THE CITY COUNCIL BODY EOR FOR THE MAYOR [1:35:48] TO EXPEDITE A CONTRACT LIKE THIS, BUT IT IS CERTAINLY NOT A BEST PRACTICE, AND SO ONE OF THE [1:35:55] RECOMMENDATIONS THAT HAS COME OUT OF THE LEGISLATIVE AUDITOR'S OFFICE AT THE STATE LEVEL IS TO [1:36:01] NOT APPROVE CONTRACTS OR GRANTS, SPECIFICALLY GRANTS OFF OF THE [1:36:07] LEGISLATIVE FLOOR. AND SO THE RECOMMENDATION IS TO LIMIT THAT, WHETHER THAT'S COMING FROM THE [1:36:13] MAYOR HIMSELF OR FROM THE CITY COUNCIL, AND I THINK THERE NEEDS [1:36:18] TO BE SOME ADDITIONAL EXPLORES ON HOW THAT IS DONE BECAUSE STAFF WILL NEED TO HAVE THE [1:36:27] DOCUMENTED PROCESSES AND POLICIES TO HAVE THE STRENGTH TO STAND BEHIND THAT. THE COUNCIL HAS AGREED THAT, YOU KNOW, WE [1:36:34] ARE NOT GOING TO MOVE FORWARD WITH THESE TYPES OF IMMEDIATE CONTRACTS. THE MAYOR HAS AGREED [1:36:40] TO THAT. AND IF WE DO, HERE IS THE PROCESS THAT MUST BE FOLLOWED. AND SO AS FAR AS [1:36:46] GETTING TO THE SPECIFICS OF HOW TO DO THAT, MY RECOMMENDATION LIKE I SAY IN THE NEXT SEGMENT [1:36:53] HERE, IS, IT GETS TO IT TO A LITTLE BIT BUT IT WILL STILL [1:36:58] GENERAL ENOUGH THAT AUDIT CAN HELP FROM THE RISK IDENTIFICATION WHEN IT COMES [1:37:04] TIME TO DEVELOP THE SPECIFICS OF THAT POLICY. >> YEAH, I THINK IT WOULD BE REALLY GOOD FOR US TO ADOPT [1:37:09] SOMETHING MORE FORMALLY BECAUSE I THINK IT DOES PUT PROFESSIONAL STAFF IN A REALLY TRICKY [1:37:15] SITUATION BECAUSE IF THERE IS NOT ANYTHING FORMAL TO LEAN ON, THEN YOU'RE JUST KIND OF PUTTING [1:37:22] YOUR OWN CAREER AT RISK BY ACTUALLY ASKING THOSE TYPES OF QUESTIONS. >> RIGHT, YEP, AND LIKE I SAY, [1:37:28] YOU'LL SEE HERE AAN ACTUAL RECOMMENDATION FOR LEGISLATION AND FOR AN ORDINANCE. [1:37:35] >> AND THEN FOLLOW-UP QUESTION, AND I DON'T KNOW IF THIS IS FOR YOU, MR. TIMMERMAN OR FOR STAFF, [1:37:41] BUT YOU KNOW, I ACTUALLY WANT TO BE AN ADVOCATE FOR THESE TYPES [1:37:46] OF INNOVATIVE APPROACHES THAT MAYBE HAVE A HIGHER RISK PROFILE BUT ARE MORE RESPONSIVE TO COMMUNITY NEED. BUT I'D LIKE [1:37:52] THERE TO BE MORE CHECKPOINTS IN BETWEEN, BETWEEN, YOU KNOW, [1:37:57] MAKING THE HANDSHAKE DEAL AND PAYING THAT FIRST INVOICE, LIKE, HOW DO WE CLOSE THAT FEEDBACK [1:38:03] LOOP SO THAT WHEN WE ARE TRYING TO DETERMINE IS THIS THE BETTER WAY TO DO IT VERSUS THE, YOU [1:38:10] KNOW, CONTINUUM OF CARE MODEL LED BY THE COUNTY, HOW DO WE CLOSE THE FEEDBACK LOOP TO KNOW [1:38:15] THAT THIS IS ACTUALLY A MORE EFFECTIVE METHOD THAT WE SHOULD ACTUALLY DOUBLE DOWN ON THIS OR [1:38:20] IS THERE AN OPPORTUNITY TO SEE MAYBE THERE ARE SOME PROBLEMS WITH THESE START-UP COSTS, MAYBE [1:38:26] THIS ISN'T WORKING OUT AS WE INTENDED, DO WE HAVE CONTROLS [1:38:31] BUILT IN TO BE ABLE TO CUT OFF A CONTRACT MIDSTREAM ALREADY IN OUR CURRENT POLICIES OR IS THAT [1:38:37] 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 [1:38:44] NOT. >> I THINK EXPLORES' NEEDED ON HOW TO DEVELOP THE CONTROLS FOR THAT. YOU KNOW, TO YOUR [1:38:50] QUESTION, THAT IS, IS PRETTY BROAD. I WILL SAY THAT IN THE [1:38:56] SECOND TO NEXT SEGMENT, I'M GOING TO BE TALKING ABOUT SOME RESOURCE NEEDS BY THE OFFICE OF [1:39:03] CITY AUDITOR. AND THE INVESTMENT IN THOSE WILL HELP US LOOK AT SOME PROGRAM EVALUATION [1:39:09] WHERE WE CAN TAKE IDEAS FROM COUNCILMEMBERS AND REALLY DIVE DEEP INTO THEM. SIMILAR TO WHAT [1:39:15] THE, AGAIN, THE OFFICE OF LEGISLATIVE AUDITOR DOES WITH THEIR PROGRAM EVALUATION DIVISION. SO THAT IS ONE OF [1:39:26] 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 [1:39:31] AS WELL. >> AND THEN FINAL QUESTION, THIS MIGHT BE FOR HEALTH STAFF, HAVE [1:39:37] WE DONE ANY RETROSPECTIVEIVE ON THIS CONTRACT TO DO A [1:39:42] COMPARISON OF, YOU KNOW, THE COUNTERFACTUAL, IF WE TOOK A MILLION DOLLARS AND FUNNELED [1:39:47] THAT TO THE COUNTY FOR THEIR CONTINUUM OF CARE SERVICES, WOULD WE HAVE BEEN MORE [1:39:54] EFFECTIVE, LESS EFFECTIVE. IT [1:40:00] WOULD BE GOOD TO SEE AS MUCH OF AN APPLES TO APPLES COMPARISON, BECAUSE MY RECOLLECTION WAS THIS MILLION DOLLARS WAS SUPPOSED TO [1:40:05] BE START-UP COSTS FOR A NEW MODEL, AND AFTER THAT MILLION DOLLAR CONTRACT ENDED, I THINK [1:40:12] THE EXPECTATION WAS THAT IT WAS A NEW SUCCESSFUL MODEL THAT WOULD BE SELF-SUSTAINING. I'M NOT SURE IF THAT'S WHAT [1:40:18] ULTIMATELY PLAYED OUT IN THIS CONTRACT, AND THEN THE QUESTION [1:40:23] IS WOULD IT HAVE BEEN WISER FOR US TO PARTNER WITH THE COUNTY OR WAS THIS TRULY A GREAT INOVATION [1:40:29] THAT WE SHOULD BE CELEBRATING. [1:40:35] >> CHAIR PAYNE, I THINK IT WAS AN INNOVATIVE APPROACH TO A SPECIFIC PROBLEM, AND WHAT WE DO [1:40:41] HAVE SOME TAKEAWAYS FROM THIS EXPERIENCE THAT WE WILL USE GOING FORWARD. I THINK THE IDEA [1:40:46] OF HOUSING AND SUPPORTIVE SERVICES IS NOT NOVEL, BUT THE [1:40:52] IDEA AROUND HURTING WAS NOVEL FOR US. IT WAS SOMETHING UNIQUE AND DIFFERENT. WE HAVE [1:41:00] COLLABORATIVE OPPORTUNITIES WITH THE COUNTY THAT WE CURRENTLY WORK ON, WE'RE LOOKING TO STRENGTHEN THOSE RELATIONSHIPS WITH THEM GOING FORWARD. THE [1:41:06] COUNTY HAS A WHOLE SET OF THEIR OWN PRIORITIES THAT THEY HAVE AROUND THE CONTINUUM OF CARE FOR [1:41:11] HOMELESSNESS AND THEIR RESPONSE WITH OPIOIDS AND SO WE WORK CLOSELY WITH THEM ALREADY AND SO WE TAKE LESSSONS FROM THE MEALX [1:41:19] AND WE'LL PUT THEM FORWARD TO OUR OTHER STRATEGIES GOING FORWARD, SO I'M NOT -- I DON'T THINK THERE WAS WHETHER WE [1:41:25] SHOULD'VE GIVEN IT TO THEM OR PROCEEDED WITH THE, WITH THE INITIATIVE. I THINK THERE IS [1:41:30] LESSONS LEARNED THAT WE CAN TAKE WITH OUR COLLABORATIONS GOING FORWARD. >> YEAH BUT LIKE THE QUESTION IS, SHOULD WE APPROPRIATE [1:41:36] ANOTHER MILLION DOLLARS FOR A SOLE-SOURCE CONTRACT WITH HELIX BECAUSE IT WAS REALLY EFFECTIVE [1:41:42] AND WE LEARNED THAT THROUGH THIS AND IT'LL BE A MORE WREFINED PROCESS AFTER THIS AUDIT AND YOU [1:41:47] KNOW, IMPROVING ORCONTRACTING PROCEDURES OR LIKE WHAT, WHAT SHOULD WE LEARN FROM THIS? [1:41:52] >> YEAH, THAT'S WHAT I'M SAYING, THE THINGS THAT WE TOOK AWAY FROM THIS EXPERIENCE WAS THAT THE HERDING WORKS, PEOPLE DO [1:41:58] MOVE IN GROUPS, WHETHER OR NOT WE WORK SPECIFICALLY WITH HELIX [1:42:05] OR NOT, THAT LESSON LEARNED AND HOW WE ENGAGE WITH THE COMMUNITY, HOW WE ENGAGE WITH THIS PARTICULAR POPULATION, THAT [1:42:10] WILL STAND OUT. AND WE WILL SEE THAT GOING FORWARD. THE EVALUATION OF [1:42:16] WHETHER WE SHOULD BE WORKING SPECIFICALLY WITH HELIX GOING FORWARD, THAT IS SOMETHING WE HAVE TO THINK ABOUT BUT WE HAVE [1:42:22] OTHER STRATEGIES WE ARE FOCUSED ON HOW, ONE WORKING CLOSER WITH THE COUNTY AND REALLY MOBILIZING [1:42:28] STRATEGIES WE HAVE INTO THE COMMUNITY. >> OKAY. THANK YOU FOR THAT. NOT SEEING ANY OTHER QUESTIONS, [1:42:35] 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, [1:42:43] SAY AYE. OPPOSED SAY NAY. THAT CARRIES. AND UP NEXT, ITEM [1:42:49] 5 IS A PRESENTATION FROM THE CITY AUDITOR ON PRELIMINARY OBSERVATIONS RELATED TO CITY [1:42:55] ENTERPRISE RISK MANAGEMENT AND CONTRACT MANAGEMENT AND OVERSIGHT. I WILL INVITE CITY [1:43:00] AUDITOR ROBERT TIMMERMAN TO GIVE THAT REPORT. WELCOME. [1:43:23] >> ALL RIGHT, THANK YOU, CHAIR PAYNE, AUDIT COMMITTEE, DIRECTOR [1:43:29] 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. [1:43:37] SO I'VE BEEN IN THE ROLE NOW FOR THREE MONTHS, AND JUST TO STEP [1:43:42] BACK A LITTLE BIT, I STARTED IN FEBRUARY, AND I WANTED TO TAKE THE FIRST THREE TO SIX MONTHS TO [1:43:49] MAKE OBSERVATIONS, NOT TO MAKE ANY DRASTIC CHANGES, BUT TO ALSO MAKE SURE THE WORK OF THE OFFICE [1:43:55] CONTINUES. AND IN THOSE THREE MONTHS, WE HAVE TAKEN ON A NUMBER OF THINGS. I DO [1:44:01] APPRECIATE THIS OPPORTUNITY. I'M GOING TO OUTLINE SOME OF MY EARLY OBSERVATIONS. I AM ALSO GOING TO OUTLINE MY VISION FOR [1:44:09] THE OFFICE OF CITY AUDITOR. I [1:44:14] ISSUED A FEW MEMOS OVER THE WEEKEND. I THINK EACH OF YOU [1:44:21] RECEIVED THESE VIA EMAIL. THEY WILL ALSO BE ADDED TO THE RCA FILE, SO THEY ARE MADE PUBLIC WITH THE AGENDA. THE FIRST ONE [1:44:27] IS THIS EARLY OBSERVATIONS E-MAILS, AND IT DOES TIE INTO SOME OF THE THINGS WE JUST [1:44:33] TALKED ABOUT WITH THE HELIX CONTRACT THAT WAS REVIEWED. I [1:44:38] WANT TO MAKE CLEAR THAT THESE OBSERVATIONS AS WELL AS THE RECOMMENDATIONS THAT I'M TALKING [1:44:43] ABOUT TODAY DO NOT STEM FROM AN ASSURANCE AUDIT. THEY ARE NOT IN RESPONSE TO ACTUAL AUDIT [1:44:48] FINDING BUT THEY ARE IN RESPONSE TO OBSERVATIONS THAT I HAVE MADE, AND THEY ARE IN RESPONSE [1:44:54] TO CONVERSATIONS THAT I HAVE HAD WITH THE HIGHEST LEVELS OF THE ADMINISTRATION AS WELL AS THE [1:45:00] CITY COUNCIL, AND SO I AM CONFIDENT IN THE PRIORITIES THAT I'M OUTLINING FOR YOU TODAY. [1:45:05] AND THESE ARE PRIORITIES FOR MY OFFICE. THESE ARE THINGS THAT YOU WILL SEE ARE ALSO PARALLEL [1:45:10] THAT SHOULD BE PRIORITIES WITHIN THE ADMINISTRATION, BUT THESE [1:45:15] ARE PRIORITIES FOR THE AUDIT WORK THAT THE CITY AUDITOR AND THE STAFF DO, AND WE TAKE INTO [1:45:22] ALL OF OUR AUDITS IN THE COMING YEARS. THE FIRST PRIORITY IS, [1:45:27] IT IS CLEAR THAT THERE IS INSUFFICIENT ENTERPRISE RISK MAMMENT AND INTERNAL CONTROL [1:45:33] STRUCTURE IN THE CITY OF MINNEAPOLIS. I'VE HEARD THIS FROM COUNCILMEMBERS. I'VE HEARD THIS FROM MEMBERS IN THE [1:45:40] EXECUTIVE LEADERSHIP TEAM IN THE MAYOR'S OFFICE. THE CITY CURRENTLY LACKS A COHESIVE AND [1:45:47] SUFFICIENTLY ROBUST FRAMEWORK FOR ENTERPRISE RISK MANAGEMENT, AND AND THERE ARE NO FORMALIZED [1:45:53] CITY STRUCTURE TO IDENTIFY, ASSESS, MANAGE, AND MONITOR RISK AND ENTERPRISE LEVEL. NORMALLY [1:45:59] IN AN OCEAN THERE IS GOING TO BE AUDIT -- AN ORGANIZATION, THERE IS GOING TO BE AUDIT THAT ACTS [1:46:04] AS AN INDEPENDENT AND OBJECTIVE SERVICE TO LOOK AT THESE THINGS, AND THERE IS A SISTER TO THAT IN [1:46:10] THE ADMINISTRATION OR IN MANAGEMENT THAT ESTABLISHES [1:46:16] INTERNAL CONTROLS, IT HOLDS UNITS, DIVISIONS, DEPARTMENTS, [1:46:21] INDIVIDUALS, ACCOUNTABLE FOR FAILURES OF FOLLOWING INTERNAL CONTROLS: AND IT WORKS CLOSELY [1:46:27] WITH AUDIT. IT'S A COLLABORATIVE EFFORT. THE INTERNAL CONTROL ENVIRONMENT IN [1:46:32] THE CITY OF MINNEAPOLIS IS INCONSISTENT ACROSS ALL DEPARTMENTS. THERE IS [1:46:38] INSUFFICIENT FORMALIZATION TO DOCUMENTATION AND MONITORING OF KEY CONTROLS. I WON'T GO SO FAR [1:46:47] TO SAY THAT THE TONE OF THE TOP IS LACKING. Y W I WILL SAY [1:46:52] 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 [1:46:57] CITY AUDITOR. AND I DO THINK [1:47:03] THERE HAS BEEN SOME MOVEMENT WITHIN THE ADMINISTRATION AND ACKNOWLEDGMENT OF THESE ENTERPRISE RISK MANAGEMENT [1:47:08] SHORTFALLINGS. THERE HAS BEEN SOME TRAININGS THAT HAVE BEEN DEVELOPED AND SOME WORK THAT IS [1:47:14] IN PROGRESS, SO I DO WANT TO RECOGNIZE THAT THERE IS BROAD [1:47:19] UNDERSTANDING OF SOME OF THESE SHORTCOMINGS, AND NOW IT'S MOVING TO THE NEXT STEP ON HOW [1:47:24] DO WE ADDRESS THEM. SO AS FAR [1:47:29] AS RECOMMENDATIONS, ONE OF THE THINGS THAT I THINK CITY COUNCIL CAN DO AND I'LL STEP BACK JUST [1:47:36] FOR ONE SECOND. THE AUDIT COMMITTEE CURRENTLY RECEIVES AND FILES ALMOST EVERYTHING THAT [1:47:42] COMES FROM MY OFFICE. ONE THING I WANT TO LOOK AT GOING FORWARD IS MAYBE ANOTHER MECHANISM FOR [1:47:48] MOVING SOME OF THESE THINGS FORWARD TO ANOTHER CITY COUNCIL COMMITTEE OR TO THE CITY COUNCIL [1:47:54] BODY AS A WHOLE. AND SO ALTHOUGH THAT'S NOT IN PLACE [1:48:00] RIGHT NOW, THIS IS A, A RECEIVE AND FILE TYPE OF PRESENTATION, BUT THESE RECOMMENDATIONS ARE [1:48:05] THE TYPE OF THING THAT SHOULD BE ELEVATED THEN TO THE COMMITTEE OF THE WHOLE, TO ANOTHER CITY [1:48:12] COUNCIL COMMITTEE. AND SO I'LL WORK WITH PRESIDENT PAYNE AND VICE PRESIDENT CHUGHTAI ON MOVING THESE FORWARD. BUT THE [1:48:21] RECOMMENDATION HERE TO ADDRESS ENTERPRISE RISK MANAGEMENT IS ADOPTING THE, WHAT IS [1:48:27] COLLOQUIALLY KNOWN AS THE GREEN BOOK. THIS IS THE STANDARDS FOR INTERNAL CONTROL IN THE FEDERAL [1:48:32] GOVERNMENT. THIS IS A BOOK PUT OUT BY THE USGAO, AND IT IS THE [1:48:39] COMPANION FOR WHAT IS KNOWN AS THE YELLOW BOOK, GOVERNMENT AUDITING STANDARDS. WHEN THE [1:48:45] CITY COUNCIL RECENTLY MADE SOME ADJUSTMENTS TO THE AUDITOR'S [1:48:51] OFFICE, WE ADDED THAT IN ADDITION TO IIA RED BOOK [1:48:56] STANDARDS THAT WE ARE GOING TO ALSO USE GOVERNMENT AUDITING STANDARDS. THESE ARE MORE SPECIFIC TO THE WORK THAT WE DO. [1:49:03] IN MY OPINION THE IIA RED BOOK STANDARDS ARE GREAT. THEY'RE ROBUST. BUT THEY ARE WRITTEN [1:49:09] FOR THE PRIVATE SECTOR AND WE'RE KIND OF A, YOU KNOW, A FOOTNOTE. [1:49:14] SO THESE GO ALONG TOGETHER BECAUSE THE YELLOW BOOK, BASICALLY AUDITS THE INTERNAL CONTROLS OF THE GREEN BOOK. SO [1:49:21] IF WE'RE ABLE TO FORMALLY ADOPT THE GREEN BOOK, AND I WILL SHARE THE STATE GOVERNMENT HAS DONE [1:49:28] THIS, THEY HAVE ADOPTED THE U.S. GOVERNMENT'S INTERNAL CONTROLS, AND I THINK THE CITY SHOULD DO [1:49:33] THE SAME, I THINK THAT WILL HELP WITH SOME OF THE THINGS THAT I'M [1:49:38] TALKING ABOUT. ANOTHER RECOMMENDATION IS TO WORK ON AN [1:49:43] ORDINANCE, AND WITH THIS ONE I SUGGEST IT'S WORKED ON COLLABORATIVELY WITH THE ADMINISTRATION, TO DEVELOP AND [1:49:50] IDENTIFY WAY TO MAINTAIN AN E RM FRAMEWORK. THIS OFFICE HAS [1:49:56] RECOMMENDED WITH OUR RISK ASSESSMENT THREE YEARS IN A ROW NOW THAT THE CITY LOOK INTO AN [1:50:04] OFFICE I'M SORRY, AN ERM EXECUTIVE OFFICER OR ASSIGN THE FUNCTIONS OF AN ERM OFFICER TO [1:50:11] EXISTING LEADERSHIP. WHEN WE TALK ABOUT TONE AT THE TOP T-- [1:50:17] IT NEEDS AT THE TOP. IT NEEDS TO BE AT MAYBE THE DCOO LEVEL. [1:50:24] AND THAT IS THE LEVEL OF IMPORTANCE THAT INTERNAL CONTROLS PLAY IN A GOVERNMENT ORGANIZATION THIS SIZE. WITH [1:50:32] THIS ORDINANCE, IT SHOULD LOOK AT ASSIGNING KEY DEPARTMENT PERSONNEL TO PARTICIPATE. [1:50:38] AGAIN, WE'RE IN A SILOED ENVIRONMENT. WE NEED TO BREAK THAT DOWN THROUGH GOVERNANCE. [1:50:44] AND THEN THIS GROUP SHOULD ALSO REPORT GOVERNANCE AND ERM UPDATES TO THE COUNCIL AND THE AUDIT COMMITTEE. FINALLY, THEY [1:50:51] WOULD INTEGRATE ERM DISCUSSIONS? TO STRATEGIC -- INTO STRATEGIC [1:50:56] PLANNING, OPERATIONAL DECISION MAKING AND THE CITY'S ANNUAL BUDGET PROCESS. SECOND PRIORITY [1:51:02] WE JUST HEARD ABOUT IT WITH THE HELIX CONTRACT. IN THE LAST THREE MONTHS, WE HAVE ALSO LOOKED AT THREE CONTRACTS FROM [1:51:09] NSD THAT HAD SIMILAR PROBLEMS, AND IT IS ABUNDANTLY CLEAR THAT [1:51:17] THE CONTRACT OVERSIGHT ACROSS DIFFERENT DEPARTMENTS WITHIN THE CITY IS LACKING. AGAIN, I WANT [1:51:23] TO GIVE CREDIT WHERE CREDIT IS DUE. THE CITY ATTORNEY'S OFFICE IS WORKING OR HAS CRATED [1:51:31] TRAINING TO HELP FOLKS WITHIN THE ADMINISTRATION UNDERSTAND HOW TO OVERSEE A CONTRACT. BUT [1:51:38] I WILL SHARE, ONE OF THE, THE FAILINGS IS THE AIM AS THE FEEDING OUR FUTURE SCANNAL, AND [1:51:44] THAT IS -- SAME AS THE FEEDLING OUR FUTURE SCANDAL WHICH IS NOBODY DOES SIGHT VISITS. IF WE [1:51:50] GO OUT ON SITE AND WE SEE NATD THIS -- THAT THIS CONTRACTOR IS BEING PAID A MILLION DOLLARS TO [1:51:56] DO WHAT THEY HAVE AGREED TO DO IS AND THERE IS NO ACTIVITY HAPPENING, WE NEED TO ADDRESS THAT EARLY. NOT WAIT FOR AUDIT [1:52:02] TO COME LOOK AT IT AFTER THE FACT. SO AGAIN, I SAY THAT A BIT STERNLY HERE, BUT WE HAVE TO [1:52:08] IMPROVE OUR CONTRACT OVERSIGHT IN THIS CITY, AND AUDIT IS WILLING TO HELP WITH THAT FROM [1:52:14] AN ADVISORY SERVICE. SO THAT CITY ATTORNEY'S TRAINING, WE WEIGHED IN ON THAT, WE MADE SURE [1:52:19] THAT THERE WAS INFORMATION RELATED TO INTERNAL CONTROLS, GOOD GOVERNANCE, GOOD OVERSIGHT, [1:52:24] AND SO AGAIN, YOU'LL SEE A THEME THAT THE OFFICE IS REALLY TRYING TO ACT IN AN ADVISORY SERVICES [1:52:30] ROLE WITH SOME OF THESE THINGS. AS I MENTIONED, THERE IS A BIT [1:52:38] OF A RECURRING ISSUE WITH CONTRACTS OR GRANTEES THAT ARE [1:52:44] PROPPED BY EXECUTIVE LEADERSHIP OR BY INDIVIDUAL CITY COUNCILMEMBERS. THIS IS NOT A, [1:52:52] AN ACTIVITY THAT IS SUSTAINABLE. IT IS VERY RISKY. WE NEED TO BE AWARE OF THAT. THAT SAID, THERE [1:52:59] ARE GOING TO BE INSTANCES LIKE HELIX WHERE WE NEED AN IMMEDIATE RESPONSE. SO WE NEED TO HAVE [1:53:05] POLICIES AND PROCEDURES IN PLACE AS A CITY TO SAY, OKAY, THIS CAN [1:53:10] MOVE FORWARD BECAUSE IT CHECKS ALL OF THE BOXES, OR, I'M SORRY, THIS IS NOT GOING TO MOVE [1:53:17] FORWARD, AND LIKE YOU SAID, CHAIR PAYNE, THAT GIVES THE STAFF SOME LEVERAGE TO BE ABLE TO SAY, YOU KNOW WHAT? WE'VE [1:53:23] ALL AGREED TO THIS POLICY, WE'RE FOUGHT GOING T -- NOT GOING TO DO THIS. ALL RIGHT. SO [1:53:33] CLEARLY THE ONGOING MEDIA COVERAGE, THE PUBLIC INQUIRIES, QUESTIONS FROM OTHER OVERSIGHT [1:53:40] BODIES, INCLUDING COUNTY AUDITO, [1:53:45] THE FEDERAL ATTORNEY'S OFFICE, I MEAN, WE'RE GETTING QUESTIONS FROM ALL SORTS OF ANGLES ON SOME [1:53:51] OF THESE CONTRACTS. THAT IS NOT SOMETHING THAT IS HELPING REBUILD TRUST IN THE CITY, AND WHEN I TOOK ON THIS JOB, I THINK [1:53:59] ONE OF THE MOST IMPORTANT THINGS THAT I COMMITTED TO WAS HELPING REBUILD TRUST. SO I'M GOING TO POINT OUT SOME OF THESE [1:54:04] DIFFICULT THING SAID. WE'RE GOING TO ESCALATE THEM TO THE COUNCIL. WE'RE GOING TO TALK [1:54:10] ABOUT THEM, BUT WE HAVE TO ADDRESS THEM TO HELP REBUILD PUBLIC TRUST. SO THE [1:54:15] RECOMMENDATIONS I HAVE RELATED TO THIS ARE COMING UP WITH A WAY TO PROHIBIT THE ADVANCEMENT OF [1:54:22] NAMED CONTRACTS OFF OF THE COUNCIL FLOOR WITHOUT FULL COMPREHENSIVE STAFF REVIEW, INCLUDING THE FINANCE AND [1:54:28] PROPERTY SERVICES DEPARTMENT, THE CITY ATTORNEY'S OFFICE, RESPONSIBLE OPERATIONAL [1:54:35] DEPARTMENTS, AND I SHOULDN'T SAY JUST THE COUNCIL FLOOR BECAUSE THAT'S ALSO LIKE WE SAW WITHIN [1:54:41] THE ADMINISTRATION, AND JUST HAPPENING OPERATIONALLY. SO WE NEED TO SEE THAT THE EXISTING [1:54:48] POLICIES ARE UPDATED TO HELP WITH THAT. AND THEN TRAINING CONTRACT MANAGERS LIKE I SAY, [1:54:55] THIS IS ONGOING. BUT WE NEED TO MONITOR CONTRACT MANAGER PERFORMANCE TO ENSURE THAT [1:55:01] PROVISIONS ARE FOLLOWED. WHEN WE'RE GETTING BILLS FOR $800 AT THE GROCERY STORE FOR AN NDS [1:55:09] CONTRACT, THAT MIGHT MAKE SENSE. MAYBE THIS CONTRACTOR IS HELPING [1:55:14] FAMILIES THROUGH FOOD INSECURITY. BUT WHEN ALL WE'RE GETTING IS A RECEIPT, AND THEIR [1:55:20] CONTRACT SAYS YOU NEED TO IDENTIFY WHICH FAMILIES YOU SERVICED, YOU NEED TO IDENTIFY WHAT DATES YOU SERVICE, AND [1:55:26] WE'RE GETTING NONE OF THAT DETAIL, THAT COMES DOWN TO CONTRACT MANAGER TRAYONING AND [1:55:32] CONTRACT MANAGER OVERSIGHT OF THE CONTRACT. BUT ALSO OVERSIGHT OF THE CONTRACT [1:55:38] MANAGER THEMSELVES. ALL RIGHT, SO I WILL PAUSE BECAUSE THAT [1:55:44] BRINGS US TO THE NEXT AGENDA ITEM, SO IF THERE IS ANY QUESTIONS ON THAT, I WOULD BE HAPPY TO TAKE THEM. [1:55:54] >> MEMBER THOMPSON. >>> SORRY, I HAVE NO QUESTIONS I . I JUST WANTED TO -- THANK [1:56:00] YOU, CHAIR PAYNE. I WANTED TO THANK YOU FOR THAT WORK BECAUSE IT SHINES A LIGHT ON A LOT OF THINGS. THANK YOU. [1:56:06] >> YOU'RE WELCOME. >> I WAS JUST GOING TO MENTION, I THINK IT'S REALLY WISE TO PUT [1:56:12] MORE CONTROLS IN, ESPECIALLY COMING FROM ELECTED MEMBERS. I THINK THERE'S A INHERENT POWER [1:56:19] DYNAMIC WHEN ANY ELECTED MEMBER IS MAKING A REQUEST. AND I'M WONDERING IF WE COULD ADD SOME [1:56:25] DETAIL AS WELL BECAUSE THIS CAME UP DURING THE NSD CONTRACTS WHICH DID GO THROUGH AN INFORMAL [1:56:33] BLIND RFP PROCESS, A BEST PRACTICE, BUT EVEN STILL AS IT CAME TO A DECISION ON CITY COUNCIL, THE CONTRACTS WEREN'T [1:56:39] FINALIZED YET, AND I'LL EVEN CONNECT THIS TO THE HELIX CONTRACT BECAUSE I REMEMBER VOTING FOR THAT AND I REMEMBER [1:56:44] GOING YEAH, THERE IS A REAL URGENT NEED HERE BUT IT WAS HARD TO TELL DID HEELX GO THROUGH A [1:56:49] FORMAL PROCESS, OR NOT, DID NSD GO THROUGH A FORMAL PROCESS OR NOT. AND IT'S -- R LIKE THOSE [1:56:56] DETAILS EMERGED YOU DISCOURSE, RATHER THAN LIKE YOU KNOW, [1:57:02] HIGHLIGHTED WITH BRIGHT SIGNALS IN RCA SAYING THIS IS A SINGLE SOURCE CAUTION VERSUS THIS IS A, [1:57:09] YOU KNOW, DOUBLE BLIND RFP, YOU KNOW, IT'S BEEN THROUGH THIS PROCESS. I DON'T THINK THERE IS ANY CONSISTENCY IN HOW THOSE [1:57:17] ACTIONS ARE BROUGHT FORWARD TO CITY COUNCIL, AND I THINK THAT AS PART, PART OF OUTLINING A NEW [1:57:23] POLICY OR PROCEDURE IN THIS SPACE, THERE SHOULD DEFINITELY BE MORE PROACTIVE TRANSPARENCY WHEN IT COMES TO THOSE TYPES OF [1:57:29] WAYS THAT WE ARRIVE AT A VOTE. >> YEAH,CHAIR PAYNE, I THINK [1:57:34] THAT'S A GREAT POINT, AND I THINK THAT HAVING AN EXECUTIVE [1:57:41] ERM MANAGER IN PLACE CAN HELP BUILD AND HOLD PEOPLE ACCOUNTABLE FOR ARE THAT. WHAT IS GETTING PUT INTO THE RCAs, [1:57:48] BUT ALSO HAVING THAT, IT GIVES YOU THAT LEADERSHIP AT THE [1:57:53] HIGHEST LEVEL THAT IS OVERSEEING THIS PROCESS TO MAKE SURE IT'S CONSISTENT. SOY HEALTH IS DOING THE SAME THING THAT NSD IS, AND [1:57:59] NSD IS DOING FRANKLY THE SAME THING THAT THE POLICE DEPARTMENT IS BECAUSE WE NEED TO LOOK AT ALL OF OUR DEPARTMENTS FROM THE [1:58:06] PERSPECTIVE THAT THEY FOLLOW GOOD, INTERNAL CONTROL. THEY HAVE GOOD GOVERNANCE, AND WE'RE [1:58:17] JUST NOT SEEING THAT RIGHT NOW. THERE ARE GOOD THINGS HAPPENING ACROSS DIFFERENT DEPARTMENTS. AGAIN, NSD WITH SOME OF THEIR [1:58:23] CONTRACTS, THEY'VE GOT SOME FOLKS IN PLACE NOW THAT ARE BRINGING THINGS TO US. THEY'RE SAYING THIS DOESN'T LOOK GOOD. [1:58:29] SO I THINK THERE'S SOME CHANGES MOVING IN THE RIGHT DIRECTION, BUT TO YOUR POINT, YES, I THINK [1:58:35] THERE NEEDS TO BE THAT LEVEL OF OVERSIGHT. >> MEMBER HOSBEIN. [1:58:40] >> THANK YOU, CHAIR PAYNE, YES, THANK YOU FOR THIS. AND I JUST, DEFINITELY FELT THE ERM PIECE. [1:58:46] I THINK WE'VE BEEN UP HERE, WHAT, TWO YEARS IN, AND I THINK EVERY SINGLE REPORT WE SEE IS [1:58:53] OKAY, WHAT'S THAT OWNERSHIP GOING TO LOOK LIKE ON THAT DEPARTMENT. AND SOME DEPARTMENTS, HERE'S [1:58:59] WHO'S GOING TO BE IN CONTROL, HERE'S WHO'S GOING TO DO THIS, HERE'S WHO'S GOING TO DO THAT [1:59:04] THIS AND OI IT'S VERY WELL OUTLINED. AND OTHER TIMES IT'S [1:59:11] AUDIT WILL COME IN THREE YEARS. I APPRECIATE THAT. I LOOK FORWARD TO MORE CONVERSATIONS ON THIS, AND I DO THINK THAT [1:59:16] DYNAMIC BETWEEN ELECTED VERSUS PROFESSIONAL STAFF, I SEE [1:59:22] ABSOLUTELY THE NEED. I ALSO SEE [1:59:28] SOMETIMES THE CITY STAFF WAITING TILL SOMEONE ELSE IS IN OFFICE POTENTIALLY, AND I THINK THERE IS KIND OF A BALANCE, AND I HAVE [1:59:37] HEARD THINGS SAID EVEN IN VERY FORMAL SETTINGS ABOUT OH, WE'LL [1:59:42] 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 [1:59:49] THIS PANEL OF ENSURING THE PROCESSES ALSO HAVE REQUIRED [1:59:56] TIMELINES AND KIND OF OWNERSHIP TO THE CITY; AND I THINK UNFORTUNATELY SOMETIMES WE'RE RELIANT ON OUR ELECTED OFFICIALS [2:00:03] TO KEEP PUSHING THAT, BECAUSE WE'RE NOT SEEING THAT JUST [2:00:09] ATTENTION TO THOSE PRIORITIES. SO COMPLETELY, I'M A POLICY GEEK, SO, YES, PLEASE, BUT HOW [2:00:16] DO WE MAKE SURE THE TWO LIVE UP TO THAT NEED FOR THE CITY. [2:00:22] >> YEAH, TOTALLY UNDERSTOOD. CHAIR PAYNE, AND AUDIT COMMITTEE, I THINK THAT IS [2:00:28] EXACTLY WHAT I WANT TO DO GOING FORWARD. I WANT TO UPDATE SOME OF OUR TEMPLATES SO THAT FROM THE AUDIT PERSPECTIVE WHEN WE [2:00:35] ARE SEEKING MANAGEMENT RESPONSE, WE ARE GETTING CONSISTENT RESPONSE. WE CANNOT TELL [2:00:40] MANAGEMENT HOW TO RESPOND. THEY MIGHT BE SNARKY, THEY MIGHT BE VERY PROFESSIONAL, I MEAN, I'VE [2:00:46] SEEN IT ALL, BUT IF THEY ASK, I WILL CERTAINLY EXPLAIN TO THEM [2:00:51] WHAT A GOOD RESPONSE LOOKS LIKE. BUT THROUGH OUR TEMPLATES WE CAN CERTAINLY ASK THEM, YOU KNOW, [2:00:57] WHO ARE YOU ASSIGNING THIS TO. WHAT IS YOUR CORRECTIVE ACTION, AND WHEN DO YOU THINK THIS WILL [2:01:02] BE DONE. THAT SAID, THEY MAY NOT PROVIDE THAT BUT IF WE PROVIDE THEM THAT TEMPLATE, I [2:01:07] THINK WE'LL BE MORE CONSISTENT IN GETTING THAT. >> MY LAST THOUGHT TOO IS HOW DO [2:01:12] WE CLOSE THAT FEEDBACK LOOP YOU KNOW, IN MY TIME ON AUDIT AND, I [2:01:18] STARTED ON AUDIT IN MY FIRST TERM AND THEN I ROLLED OFF UNDER THE NEW GOVERNMENT STRUCTURE AND [2:01:24] THEN I CAME BACK ON AS CHAIR THIS TERM, I'VE SEEN A NUMBER OF AUDITS THAT HAVE HIGHLIGHTED, YOU KNOW, ANYTHING FROM [2:01:30] SOMETHING MINOR TO SOMETHING EGREGIOUS, AND I'VE NEVER REALLY SEEN A CONNECTION POINT TO [2:01:35] CONSEQUENCES, RIGHT? AND IT'S LIKE, YOU CAN SEE A MANAGEMENT RESPONSE AND SOMETIMES THE RESPONSE IS, AGAIN, VERY [2:01:43] PROFESSIONAL, AND YOU SEE THOSE RESPONSES GET RESOLVED. WE JUST SAW A NUMBER OF ISSUES GET RESOLVED TODAY FOR THE PROPERTY [2:01:48] AND EVIDENCE AUDIT. BUT WHEN THERE IS NO LIKE ADEQUATE [2:01:55] MANAGEMENT RESPONSE OR THE ISSUES HANG THERE UNRESOLVED, I [2:02:01] HAVEN'T SEEN CONSEQUENCES ONE WAY OR THE OTHER. AND I'M WONDERING HOW WE CAN CREATE MORE [2:02:08] CONSEQUENCES AND ACCOUNTABILITY WHEN IT COMES TO IDENTIFYING SOME OF THESE CONTROL PROBLEMS, THESE RISK PROBLEMS 72 YEAH, [2:02:14] CHAIR PAYNE, I THINK THAT WITH [2:02:23] AN ENTERPRISE EXECUTIVE THAT IS RESPONSIBLE FOR THIS, WE CERTAINLY PUT AN INDIVIDUAL IN THAT ROLE WHERE THEY ARE HELD [2:02:31] RESPONSIBLE FOR THESE TYPES OF ACTIVITIES IF THERE IS AN AUDIT AND THAT AUDIT HAS [2:02:38] RECOMMENDATIONS, ULTIMATELY, THEY'RE RESPONSI RESPONSIBLE FOR THE CORRECTIVE [2:02:44] ACTIONS. THEY'RE GOING TO DELEGATE RESPONSIBILITIES TO THE DEPARTMENTS. BUT IT'S THEIR JOB, THEIR STAFF'S JOB, THEIR [2:02:51] PER PURVIEW THEN TO MAKE SURE THAT'S HAPPENING. I'M NOT [2:02:56] SURE THAT THAT'S HAPPENING. AUDIT, FRANKLY IF YOU'RE CONSIDERING THE YELLOW BOOK AND THE GREEN BOOK, AUDIT'S ROLE IS [2:03:01] NOT TO MONITOR. WE DO LOT OF MONITORING. YOU SAW IT THIS MORNING. WE BRING IN FOLKS THAT [2:03:09] STILL SOME AUDIT FIND GEDS FINDINGS AND THAT'S FINE, WE'LL [2:03:15] ALWAYS DO THAT BECAUSE WE WANT TO MAKE SURE THESE THINGS ARE BEING TAKEN CARE OF. BUT BECAUSE THERE IS NOT THIS [2:03:20] ENTERPRISING RISK MANAGEMENT STRUCTURE, THE GREEN BOOK TALKS ABOUT THERE NEEDS TO BE ON THE MANAGEMENT SIDE THIS LEVEL OF [2:03:26] OVERSIGHT. SO I WOULD SAY THAT YOU KNOW, THROUGH DEVELOPING AN [2:03:33] EXECUTIVE TYPE FUNCTION, OR ASSIGNING THOSE TYPES OF RESPONSIBILITIES TO AN EXISTING [2:03:39] EXECUTIVE, THAT CAN COME THROUGH COLLABORATION WITH THE ADMINISTRATION, AND WE CAN LOOK [2:03:45] TO BUILD OUT SOME OF THOSE RESPONSIBILITIES BECAUSE YOU'RE EXACTLY RIGHT. I MEAN, IF THERE IS NOT [2:03:51] ACCOUNTABILITY OR THAN DRAGGING THEM IN FRONT OF THE AUDIT COMMITTEE, WHICH MAY OR MAY NOT [2:03:57] BE SEEN BY PEOPLE THAT IT NEEDS TO BE SEEN BY, OR FIGHTING ABOUT [2:04:04] IT IN THE PUBLIC, I JUST, I THINK THERE NEEDS TO BE SOME MECHANISM FOR ACCOUNTABILITY. [2:04:12] >> AGREED. ALL RIGHT. SEEING NO QUESTIONS OR COMMENTS, I WILL [2:04:17] DIRECT THE CLERK TO FILE THAT REPORT, AND NEXT WE HAVE ITEM 6, WHICH IS AN UPDATE ON THE OFFICE [2:04:24] OF CITY AUDITOR STRUCTURE AND FUTURE PLANS. AND YOU ARE BACK ON. >> ALL RIGHT, THANK YOU. SO [2:04:31] THAT ALL LEADS INTO SOME OF THE NEEDS THAT THE OFFICE OF CITY AUDITOR HAS IN THE THREE MONTHS [2:04:37] THAT I'VE BEEN HERE, I'VE LEARNED A LOT. AND ONE OF THE THINGS THAT I'VE LEARNED IS [2:04:42] THAT BEFORE THE GOVERNMENT RESTRUCTURING, THERE WAS NO OFFICE OF CITY AUDITOR. THERE [2:04:48] WAS AN INTERNAL AUDIT FUNCTION. THERE WERE A FEW PEOPLE IN THAT [2:04:54] ROLE. BUT IT DID NOT LOOK AT ALL LIKE SOME OF THE COUNTERPARTS ACROSS THE COUNTRY [2:04:59] WHEN YOU CONSIDER MUNICIPAL GOVERNMENT OVERSIGHT. CURRENTLY [2:05:06] AFTER PAR AND O&E HAVE MOVED OUT, WE ARE AT SIX AUDITORS WITH [2:05:12] DIRECTOR POUDYAL IN THE INTERNAL AUDIT DIRECTOR ROLE AND MYSELF IN THE CITY AUDITOR ROLE, AND [2:05:18] ALL OF THE THINGS WE'VE TALKED ABOUT TODAY, INCLUDING IN MY PRESENTATION, THESE ARE NOT [2:05:24] ASSURANCE SERVICES. THESE ARE NOT THINGS THAT COME OFF OF OUR [2:05:30] ANNUAL AUDIT PLAN THAT WE PRESENT EACH YEAR. WHEN YOU LOOK AT THE IIA AUDIT STANDARDS, [2:05:39] THE TWO FUNCTIONS OF AN AUDIT SHOP, AND A CHIEF AUDIT EXECUTIVE, ARE TO PROVIDE [2:05:45] ASSURANCE SERVICES AND ADVISORY SERVICES. WE NEED RESOURCES TO [2:05:51] DO THESE AFTER ACTION REVIEWS AND TO DO SOME OF THE THINGS THAT COME DIRECTLY FROM THE COUNCIL OR FROM THE [2:06:03] ADMINISTRATION. AND THIS IS [2:06:09] JUST HIGHLIGHTING, I WILL GET THE SLIDES INTO THE AGENDA AFTER THE FACT, SO THIS IS JUST [2:06:14] HIGHLIGHTING SOME INFORMATION YOU ALREADY KNOW WHAT MY RESPONSIBILITIES ARE, WHAT THE CURRENT STRUCTURE LOOKS LIKE. [2:06:21] BUT WHAT I'M LOOKING AT IS CREATING A NEW DIVISION THAT CAN FOCUS ON THE ADVISORY SERVICES. [2:06:27] I THINK THAT THE ORIGINAL INTENT OF THE O&E DIVISION WAS GOOD, [2:06:34] BUT IT DID NOT FOCUS IN ON WHAT COULD BE DONE INDEPENDENTLY OF [2:06:42] CITY COUNCILOR ADMINISTRATION BEING TOO INVOLVED IN THE WORK. SO WHAT WE CAN DO IS A MORE [2:06:48] DELIBERATE PLAN FOR PROGRAM EVALUATIONS THAT WILL GO THROUGH THE SAME PROCESS AS OUR ANNUAL [2:06:53] RISK BASED AUDIT PLAN. AS I ALLUDED TO EARLIER, WE WOULD PULL AUDIT COMMITTEE MEMBERS. [2:06:59] WE WOULD POLL CITY COUNCILMEMBERS. AND WE WOULD [2:07:07] GET AN IDEA OF WHAT PROGRAMS THEY WANT AUDITED. WE WOULD COME BACK. THESE ARE LENGTHY REVIEWS. WE WOULD COME BACK [2:07:12] WITH INFORMATION AND RECOMMENDATIONS. THIS IS ANALOGOUS WITH WHAT HAPPENS AT THE LEGISLATIVE AUDITOR'S OFFICE [2:07:18] IN THEIR PROGRAM EVALUATIONS DECISION, AND IT PROVIDES -- DIVISION, AND IT PROVIDES REALLY [2:07:24] GREAT INSIGHT, BUT THE BEAUTY OF IT IS WE CAN, BECAUSE WE'RE THE AUDITOR, WE CAN MAKE [2:07:30] RECOMMENDATIONS, AND SO I THINK THAT MEETS THAT ORIGINAL INTENT, [2:07:36] AND THEN WE NEED TO TALK ABOUT THE COMMUNITY SAFETY AUDITS, THE AFTER ACTION REVIEWS, THE AD HOC [2:07:43] ADVISORY SERVICES FROM BOTH THE COUNCIL AND THE ADMINISTRATION. THESE ARE ALL THINGS THAT I [2:07:49] DON'T WANT TO SAY NO TO. I'VE TOLD MANY PEOPLE THAT IF I DON'T HAVE TO SAY NO BECAUSE OF [2:07:55] RESOURCES, THAT IS MY PREFERENCE, SO WE'RE GOING TO, WE'RE GOING TO BE ASKING FOR SOME ADDITIONAL RESOURCES. THIS [2:08:01] AFTERNOON AT THE BUDGET COMMITTEE, WE'LL BE REQUESTING [2:08:06] FOUR FTEs FOR, STARTING TO BUILD OUT THIS NEW DIVISION, AND IS THEN WE WILL BE WITH THE 2026 [2:08:13] BUDGET REQUESTING THREE ADDITIONAL FTEs. SO THAT WOULD BRING OUR TOTAL GROUP TO [2:08:21] 15, WHICH WOULD THEN BE IN LINE WITH SOME OF THE LOWEST AUDIT [2:08:27] STAFFS AND OIG STAFFS AT COMPARABLE CITIES, SO IT WOULD GET US MORE IN LINE WITH WHAT [2:08:33] OTHERS HAVE. SO THIS JUST KIND OF LOOKS AT WHAT I TO TALKED [2:08:40] ABOUT THERE. THREE INTERNAL AUDITORS FOR THE NEW DIVISION, [2:08:46] TWO WOULD BE THIS YEAR, ONE WOULD BE NEXT YEAR. SORRY I [2:08:52] DON'T KNOW. QUALITY TRAINING MANAGER. THIS IS A REQUIRED, REQUIRED WORK THAT WE NEED A [2:08:57] POSITION FOR THAT THE RED BOOK AND THE YELLOW BOOK BOTH IN THE LAST YEAR UNDERWENT CHANGES THAT [2:09:04] SIGNIFICANTLY INCREASES THE QUALITY ASSURANCE THAT WE NEED TO DO ON OUR OWN WORK, SO THIS IS A VITAL POSITION. AND THEN [2:09:10] WE ARE NOW AT A POINT WHERE BECAUSE OF A LOT OF THE NEW ADVISORY SERVICES THAT WE'RE [2:09:16] TAKING ON ARE COMING UP, WE NEED THE SUPPORT OF AN ADMIN [2:09:22] AASSISTANT. THIS IS SOMETHING WE'VE REQUESTED IN THE PAST AS WELL. THE DIRECTOR OF THE NEW [2:09:28] DIVISION AND THEN HOPEFULLY BUT LAST, IS THE DEPUTY CITY AUDITOR, THE ORDINANCE DOES [2:09:35] ALLOW FOR ME TO APPOINT A DEPUTY CITY AUDITOR WITH APPROVAL OF THE AUDIT COMMITTEE, AND THIS IS [2:09:41] SOMETHING THAT I'LL BE REQUESTING. DIRECTOR POUDYAL AND I ALONG WITH THE NEW QUALITY [2:09:49] MANAGER AND THE NEW DIRECTOR OF THE ADVISORY SERVICES DIVISION WILL KIND OF KEEP THINGS [2:09:55] ROLLING, BUT AS WE DO GROW, OUT THFUNCTIONS, HAVING THE -- [2:10:01] THESE FUNCTIONS, HAVING THE ADDITIONAL ADMINISTRATIVE SUPPORT WILL BE HELPFUL. SO VISUALLY JUST WHAT I TALKED ABOUT AND THAT IS, THAT IS THE [2:10:09] EXTENT. IF YOU'RE INTERESTED, LIKE I SAID, THIS AFTERNOON AT THE BUDGET COMMITTEE, I WILL BE PRESENTING A LITTLE BIT MORE [2:10:15] BROADLY. THERE WILL BE DOLLARS TALKED ABOUT, BUT THAT IS THE [2:10:21] IDEA, AND MY HOPE IS THAT YOU, YOU KIND OF SEE THE, THE VISION THERE. [2:10:28] >> ANY QUESTIONS OR COMMENTS? [2:10:33] 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 [2:10:40] ME, I DON'T KNOW ABOUT OTHERS, IN THE LOOP THERE. I KNOW THAT'S A MULTISTAGE AND ASKING [2:10:45] FOR HEAD COUNT IS HARD. >> YEAH. YEAH. >> THANK YOU. [2:10:50] >> VICE CHAIR SINGLETON. >> YEAH, I'LL JUST SAY, GENERALLY THANK YOU FOR BOTH [2:10:56] THIS REPORT AND THE PREVIOUS REPORT. I THINK IT'S REALLY GREAT TO SEE SOME OF THE STRUCTURAL CHANGES THAT YOU [2:11:03] ENVISION, AND HAVING THE INTERNAL CAPACITY TO SUPPORT THOSE STRUCTURAL CHANGES IN BOTH LIKE THE MANAGEMENT SIDE AND [2:11:10] WITHIN THE AUDITOR'S OFFICE, SO THANK YOU FOR ALL THAT WORK AND THAT VISION. [2:11:17] >> ALL RIGHT. WELL, SEEING NO FURTHER QUESTIONS OR COMMENTS FROM MEMBERS, I WILL DIRECT THE CLERK TO RECEIVE AND FILE THAT [2:11:24] REPORT. AND OUR LAST NEW BUSINESS ITEM IS THE CONSIDERATION OF THREE AMENDMENTS TO THE 2025 [2:11:29] ENTERPRISE RISK ASSESSMENT AND RISK BASED INTEGRATED AUDIT PLAN, AND I WILL AGAIN INVITE [2:11:35] AUDITOR T TIMMERMAN. >> ALL RIGHT, THANK YOU. SO I GUESS I'M CALLING MYSELF A LIAR, [2:11:42] MAYBE 12:30. WE'RE GOING TO FLY THOUGH. ALL RIGHT, SO THANK YOU, CHAIR PAYNE, THANK YOU, [2:11:49] AUDIT COMMITTEE. THE AUDIT PLAN NEEDS TO BE UPDATED BECAUSE OF A FEW ADDITIONS THAT WE'VE SEEN OVER THE LAST FEW MONTHS. THE [2:11:56] FIRST IS ONE THAT YOU'RE VERY FAMILIAR WITH, THAT IS THE AFTER ACTION REVIEW INVOLVING THE [2:12:01] DEATHS -- EXCUSE ME THE DEATH OF ALLISON LUSSIER. WE ARE WORKING [2:12:09] DILIGENTLY ON THIS, AND WE HAVE NOT ONLY BEEN WORKING ON THIS BUT WE'VE ALSO BEEN WORKING ON [2:12:17] THE, ININTERACTIONS LEADING UP [2:12:22] TO AND AFTER THE DAVIS MUTERY SHOOTING. THOSE ARE BOTH COMBINED IN AN RFP TO BRING IN A [2:12:29] LAWFIRM CONSULTANT TO HELP WITH THE POLICY AND REVIEW. MAKE RECOMMENDATIONS. WE'VE MET WITH [2:12:35] FAMILIES OF ALLISON AND DAVIS. WE'VE MEDWITH ADVOCATES FOR THE AMERICAN INDIAN COMMUNITY. WE [2:12:42] HAVE REALLY STARTED DIVING INTO THESE REVIEWS, AND I [2:12:47] UNFORTUNATELY I WAS HOPING WE'D HAVE THE CONTRACT SIGNED BY TODAY, SO I COULD SHARE WITH YOU [2:12:53] WHO THE CONTRACTOR S BUT I AM VERY PLEASED WITH EVERYTHING [2:12:59] THAT ENDED UP HAPPENING. WE PUT THE RFP OUT ONCE, AND HAD ONE [2:13:05] RESPONDENT THAT JUST WAS NOT WORKABLE; AND WE PUT IT OUT AGAIN AND WE HAD A RESPONDENT [2:13:11] THAT I THINK IS GOING TO BE A GOOD PARTNER IN THIS REVIEW. WE'RE STILL LOOKING TO HAVE THEIR WORK WRAPPED UP BY [2:13:17] DECEMBER, AND THAT WOULD MEAN WE WILL EITHER YOU SHOULD A REPORT TO THE AUDIT COMMITTEE OR A [2:13:24] DIFFERENT COUNCIL COMMITTEE WITH AN INVITATION TO AUDIT COMMITTEE MEMBERS EITHER IN JANUARY OR FEBRUARY. SO WE'LL KEEP YOU [2:13:30] UPDATED ON LOGISTICS THERE. THE OTHER ITEM WE NEED TO ADD TO THE [2:13:36] AUDIT PLAN IS A REVIEW FOR SHOTSPOTTING. THIS AGAIN IS GOING TO BE AN ADVISOR SERVICE. [2:13:42] 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 [2:13:53] SHOTSPOTTER. WE ARE GOING TO HANDLE THIS COLLABORATIVELY WITH THE DEPARTMENT OF PUBLIC SAFETY, COMMISSIONER BARNETT AND I HAVE [2:13:59] TALKED. WE WILL LEAD THIS. THIS WILL BE AN INDEPENDENT [2:14:06] REVIEW, BUT WE WILL COLLABORATE WITH THEM BECAUSE THEY HAVE INSIGHT INTO ALL THINGS [2:14:12] 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 [2:14:20] BECAUSE I THINK THAT IS WHAT WE NEED TO START DOING IS REALLY SHOWING AUDIT AS A PARTNER TO OTHERS WITHIN THE ENTERPRISE. [2:14:27] AND THEN THE LAST ONE, THE MDHR [2:14:34] SETTLEMENT AGREEMENT ASKED FOR AN AUDIT OF MISCONDUCT COMPLAINT [2:14:41] INTAKE, SO BASICALLY AUDITING COMPROMISES PCR'S WORKS -- AUDITING OPCR'S WORK AND THAT IS [2:14:48] SOMETHING WE CAN DO OUR PART TO HELP WITH ONE OF THE MINI ITEMS [2:14:53] IN THAT SETTLEMENT AGREEMENT. WE DON'T EXACTLY KNOW THE TIMING [2:14:58] OF THAT. IT IS MEANT TO BE A REGULAR RECURRING TYPE OF AUDIT. WE'LL PROBABLY DO OUR FIRST ONE [2:15:05] STARTING IN THE WINTER. AND THEN WE'LL LOOK AT IT EVERY TWO [2:15:10] YEARS. THERE IS NO PRESCRIBED TIMING OF THIS IN THE SETTLEMENT AGREEMENT. BUT I DO THINK IT IS [2:15:17] 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 [2:15:22] IT'LL BE REALLY THE SAME REVIEW EVERY TWO YEARS OR SO. SO THIS [2:15:30] ONE I BELIEVE THAT IS IT FOR THAT. IF THERE ARE QUESTIONS ON [2:15:35] THOSE, I'M HAPPY TO ANSWER THEM, BUT I THINK THAT IS PRETTY [2:15:41] STRAIGHTFORWARD. >> I'LL JUST ADD THAT, WELL, A, I APPRECIATE ALL OF THIS WORK. I MEAN, I THINK YOUR FIRST THREE [2:15:48] MONTHS HAVE BEEN VERY INTENSE, AND JUST TO SEE HOW YOU'VE BEEN [2:15:53] ABLE TO COME INTO THIS INSTITUTION AND REALLY STRENGTHEN I FEEL LIKE WHAT WE [2:15:59] HAD A REALLY STRONG FOUNDATION OF AUDIT AND SEEING UNDER THIS NEW GOVERNMENT STRUCTURE HOW THE [2:16:04] ROLE OF THE CITY AUDITOR VERSUS AN INTERNAL AUDITOR, I THINK YOU'RE REALLY BEEN DEMONSTRATING [2:16:11] HOW IMPORTANT THAT IS FOR THIS INSTITUTION. AND I'LL EVEN HIGHLIGHT SOME OF THE [2:16:16] CONVERSATIONS I'VE BEEN HAVING BOTH WITH YOU, THE CITY ATTORNEY AROUND THE DEVELOPMENTS AROUND THE FEDERAL CONSENT [2:16:23] DECREE WITH THE TRUMP ADMINISTRATION WITHDRAWING THAT, AND YOU KNOW, WE HEAR FROM THE MAYOR A COMMITMENT TO STILL [2:16:30] DELIVER ON THE PROVISIONS IN THE CONSENT DECREE. HOWEVER, THE POINT OF A CONSENT DECREE ISN'T [2:16:36] JUST TO HAVE A RODE MAP FOR REFORM. IT'S ALSO TO HAVE AN [2:16:45] INDEPENDENT EVALUATION AND OVERSIGHT OF VERIFYING THOSE FORMS AND I THINK IN THE AB ABSENCE OF A FORMAL DISSENT [2:16:54] DEGREE I DO VIEW THE AUDITOR TO FILL IN THAT GAP AND I THINK [2:17:00] 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 [2:17:06] AUDITOR'S OFFICE AND JUST ACROSS THE ENTERPRISE AROUND CONTROLS. AND I THINK I ALSO WANTED TO [2:17:12] THANK MR. POUDYAL FOR YOUR LEADERSHIP IN THE TIME PRIOR TO YOU GETTING HERE. I THINK SOME [2:17:19] OF THE OBSERVATIONS THAT YOU HIGHLIGHTED TODAY ARE THINGS I SHARED WITH YOU THAT WERE [2:17:24] HIGHLIGHTED BY MR. POUDYAL THAT I FELT RESONATED, AND I I THINK THAT WE'RE REALLY STARTED [2:17:30] TO DEMONSTRATE A STRENGTH IN THE AUDIT FUN FUNCTION HERE, SO I'M JUST GRATEFUL FOR YOUR [2:17:36] LEADERSHIP. >> THEIR PAYNE, IF I COULD, I WANT TO SHARE THAT GRATITUDE. DIRECTOR POUDYAL AND I HAVE [2:17:42] ESTABLISHED A VERY STRONG WORKING RELATIONSHIP AND A GOOD PARTNERSHIP. I THINK THAT [2:17:47] THE WORK OF INTERNAL AUDIT HAS, HAS CONTINUED TO MOVE FORWARD EVEN WITH THESE ADDITIONAL [2:17:55] DEMANDS, AND THAT IS A TESTAMENT TO HIS ORGANIZATION, AND THAT IS [2:18:03] MAKING SURE THE AUDIT PROCESS IS RIGOROUS AND SOUND, SO THANK YO. [2:18:09] >> SEEING NO FURTHER QUESTIONS OR DISCUSSION, I WILL MOVE TO APPROVE THOSE AMENDMENTS TO THE [2:18:15] 2025 RISK BASED INTEGRATED AUDIT PLAN. ALL THOSE IN FAVOR, SAY AYE. OPPOSED SAY NAY. THAT [2:18:23] CARRIES, AND LAST IS A REPORT OF THE CITY AUDITOR. DO WE STILL WANT TO -- RUN THROUGH THAT? [2:18:29] ALL RIGHT. I WILL INVITE MR. POUDYAL, DIRECTOR OF INTERNAL AUDIT TO GIVE THAT REPORT. [2:18:38] >> 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. [2:18:44] >> GOOD AFTERNOON. CHAIR PAYNE AND THE MEMBERS OF THE AUDIT COMMITTEE. I LIKE TO QUICKLY [2:18:51] PROVIDE YOU AN UPDATE ON ALL THE PROJECTS THAT WE HAVE BEEN WORKING ON AND FIRST OF ALL, NO [2:18:57] THANK YOU, CITY AUDITOR, TIMMERMAN AND CHAIR PAYNE FOR TALKING, GLOWING ABOUT ME AND I [2:19:03] WANT TO DO SAME THING FOR MY AUDIT STAFF AS WELL. I CAN DO MY JOB BUT TRYING TO MANAGE AND [2:19:09] ORGANIZE BUT WITHOUT THEIR SUPPORT AND HARD WORK, I MEAN, IT'S NOT POSSIBLE, SO I JUST WANTED TO THANK MY STAFF FOR [2:19:14] WORKING HARD FOR THE OFFICE AND FAND FOR THE CITY. SO TOTAL [2:19:21] AUDIT WISE, SO WE HAVE TOTAL EIGHT PROJECTS THAT HAD BEEN GOING ON. COUPLE OF THEM ARE ON HOLD BASED ON THE CAPACITY THAT [2:19:29] WE HAVE BECAUSE WE DID PRIORITIZE SOME OF THE NEW AUDIT [2:19:36] 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 [2:19:41] THEM. SO AT LEAST FOR NOW THERE ARE LIKE SIX AUDIT PROJECTS IN [2:19:46] PROGRESS, AND FOUR OF THEM ARE NEW FROM THE LAST TIME WE HAD THIS MEETING BACK IN FEBRUARY [2:19:56] 2025. SO AGAIN, SO THE FIRST [2:20:02] ONE IS THE NEIGHBORHOOD SAFETY CONTRACT MANAGEMENT AUDIT. SO IN THE, SO BASICALLY THE [2:20:07] OBJECTIVE OF THAT AUDIT IS TO DELIVER THE NEIGHBORHOOD SAFETY PROJECT PROCESSES INCLUDING [2:20:13] PROCESSES SUCH AS ADMINISTRATION, MANAGEMENT, REPORTING, OVERSIGHT, AND MONITORING TO ENSURE THAT CONTROLS ARE ESTABLISHED AND [2:20:20] OPERATING EFFECTIVELY, SO IN THIS DEPARTMENT, WE HAVE A NEW DIRECTOR SO AMANDA HARRINGTON [2:20:25] AND WE HAVE BEEN WORKING WITH HER AND HER STAFF TO GET, TO MAKE PROGRESS ON THIS AUDIT, SO [2:20:31] RIGHT NOW WE'RE IN THE FIELD WORK PHASE OF THE AUDIT. SOY [2:20:39] NEXT ONE IS -- SO NEXT ONE IS THIRD PARTY, SO THIS IS THRD [2:20:48] PARTY REVIEW TO REVIEW PROCESSES AND CONTROLS RELATED TO DEPARTMENTS' USE OF THIRD PARTY [2:20:54] 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 [2:21:01] PHASE, SO BASICALLY WE HAVE PRELIMINARY HIGHLIGHTED SOME OF [2:21:07] THE GAPS THAT WE CAN WORK ON, SO WE'RE JUST WORKING ON WITH [2:21:12] MANAGEMENT TO DO THE ISSUE VETTING AND ULTIMATELY IN DRAFTING THE REPORT, SO THAT'S WHY WE'RE IN THE STATUS OF [2:21:18] REPORTING RIGHT NOW. SO THE [2:21:25] NEXT ONE IS THE -- ENTERPRISE [2:21:34] RISK ASSESSMENT AND RISK BASED AUDIT PLAN. THIS IS TO REVIEW DESIGN AND EFFECTIVENESS AROUND PARK BOARD REVENUE AND [2:21:39] COLLECTION PROCESSES SO THE PHASE ONE WE COMPLETED IT BACK [2:21:44] IN 2023 WHICH FOCUSED ON THE CITY OF MINNEAPOLIS, SO AS A PART OF THE PHASE 2 WE'RE FOCUS [2:21:50] ON THE REVIEW AND COLLECTION PROCESS FOR THE PARK BOARD, AND THIS, IS IN THE STILL IN THE PPLANNING PHASE. SO THE NEXT [2:22:02] ONE IS MPD BODY WORN CAMERA AND AUTOMATED LICENSE PLACE READER [2:22:07] AUDIT, SO THIS AUDIT WE HAVE TO PERFORM EVERY TWO YEARS BASED ON THE STATE STATUTE. SO THE OBJECTIVE OF THIS, THESE TWO [2:22:13] AUDITS ARE TO TEST MINNEAPOLIS POLICE DEPARTMENT'S COMPLIANCE WITH THE STATE LAW REGARDING THE [2:22:18] BODY WORN CAMERAS AND AUTOMATED LICENSE PLATE READER, SO THIS IS ONE OF THE NEWER AUDITS THAT WE [2:22:24] STARTED SINCE OUR LAST AUDIT COMMITTEE MEETING AND WE'RE STILL IN THE PLANNING PHASE OF THIS AUDIT. SO THE NEXT ONE IS [2:22:34] ONE OF THE ACTION AFTER REVIEWS CASE INVOLVING DAVIS -- THIS IS [2:22:46] TO REVIEW DAVIS MATUREY AND JOHN SOLCHECK AND STILL IN PROGRESS SO WE'RE IN THE INFORMATION [2:22:54] COLLECTION PHASE SO ONCE WE GET THAT CONTRACT SIGNED AND WE BRING IN THE INDEPENDENT [2:23:00] EVALUATOR AS WELL SO WE'LL BEGIN OUR REGULAR PLANNING PROCESS, BUT AT THIS TIME, WE HAVE BEEN GATHERING SOME OF THE [2:23:05] INFORMATION RELATED TO THE CASE. AND SAME WITH THIS AFTER ACTION [2:23:11] REVIEW CASE INVOLVING DEATH OF ALLISON LUSSIER AS WELL. WE ARE [2:23:16] IN THE INFORMATION COLLECTION PHASE RIGHT NOW, AND WE'LL START [2:23:25] THIS AUDIT ONCE WE FINALIZE THE [2:23:31] CONTRACT WITH THE INDEPENDENT EVALUATOR. SO THE NEXT TWO AUDITS ARE ON HOLD, SO THE FIRST [2:23:37] ONE IS THE ANCILLARY POLICE PROGRAM AUDIT SO THE OBJECTIVE [2:23:43] WAS TO REVIEW PROCESS AND CONTROLS AROUND ANCILLARY POLICE PROGRAMS TO ENSURE ADEQUATE CONTROLS ARE IN PLACE AND THE [2:23:48] PROGRAMS ARE OPERATING EFFECTIVELY AND INTENDED. SO INITIALLY WE HAD THAT PLANNING [2:23:54] MEETING WITH THE MPD, AND BASED ON OUR DISCUSSIONS, PROBABLY WE NEED TO DO A LITTLE BIT OF [2:24:01] FURTHER ANALYSIS TO REGARDING WHAT EXACTLY WE WILL BE LOOKING AT FROM SCOPE'S STANDPOINT, SO [2:24:07] THAT'S WHY FOR NOW WE HAVE PUT [2:24:14] THIS ON HOLD AND SAME WITH THE FACILITIES MANAGEMENT AUDIT AS WELL. BASICALLY THE BOTH FROM [2:24:19] MANAGEMENT SIDE AND THE AUDIT SIDE, LIKE THERE WAS TURNOVER, SO WHICH WAS VERY DIFFICULT FOR US TO UNDERSTAND THE ENTIRE [2:24:24] PROCESS AGAIN. SO WE HAVE PUT THAT ON HOLD FOR NOW TO DECIDE [2:24:29] WHETHER WE WANT TO DO IT, THIS AUDIT AGAIN WITH A FRESH LENS, AND IDENTIFY IF WE NEED TO ADD [2:24:35] OR REMOVE SOME OF THE SCOPE AS WELL, SO THAT'S WHY WE HAVE TO PUT THIS AUDIT ON HOLD AS WELL. [2:24:43] ANY QUESTIONS BEFORE I MOVE TO THE NEXT SE SECTION? ALL [2:24:49] RIGHT, NO, THANK YOU. SO FROM THE FRAUD, WASTE, AND ABUSE INVESTIGATION STANDPOINT, WE [2:24:55] HAVE TWO ACTIVE OPEN INVESTIGATIONS THAT ARE GOING ON [2:25:01] RIGHT NOW. AND I KNOW IN TERMS OF THE PRIOR AUDIT ISSUES [2:25:06] FOLLOW-UP, WE HAD A REQUEST FROM AUDIT COMMITTEE BACK IN FEBRUARY TO MAYBE PROVIDE A LITTLE BIT OF [2:25:12] DETAILED INFORMATION REGARDING SOME OF THESE CLOSED ISSUES, AND I HAD A CHANCE TO TALK TO CITY [2:25:18] AUDITOR TIMMERMAN AS WELL AS FOR SOME OF THESE LIKE OLDER ISSUES, WHAT SHOULD WE DO BECAUSE THEY HAVE BEEN OPEN ISSUE ITEMS, SOME [2:25:24] OF THEM ARE FROM 2018, WHICH IS MORE THAN SEVEN YEARS, SO WE [2:25:29] HAD, WE HAD MADE SOME OF THOSE DECISIONS AS WELL SO THAT'S WHAT I'M GOING TO PRESENT. SO FROM [2:25:46] STATISTICS STANDPOINT WE HAVE 16 OPEN ISSUES RIGHT NOW AND 19 OVERDUE THAT IS, THEY HAVE ALREADY BEEN EXTENDING THE [2:25:57] TENTATIVE COMPLETION DATE AND THERE ARE LIKE EIGHT AUDIT ISSUES THAT ARE EVALUATION IN PROGRESS, WHICH MEANS THEY [2:26:02] HAVE -- THE MANAGEMENT HAS ALREADY SUBM SUBMITTED THE WORK THEY HAVE PERFORMED TO [2:26:07] MITIGATE SOME OF THESE ISSUES, AND AUDIT IS REVIEWING THEM RIGHT NOW. AND FOR THIS, AUDIT [2:26:13] COMMITTEE, AUDIT HAS CLOSED TEN ISSUES THAT WERE OUTSTANDING. [2:26:22] ALL RIGHT, SO REGARDING DETAILS OF SOME OF THE CLOSED ISSUES, SO THE FIRST ONE IS THERE WERE [2:26:28] THREE ISSUES REMAINING FOR, FROM THE 2018 POLICE INFORMATION MANAGEMENT SYSTEM, PIMS. [2:26:34] SECURITY TECHNOLOGY AUDIT, AND FOR THIS ONE, EVEN THOUGH WE DIDN'T VALIDATE WHETHER THOSE [2:26:41] WERE REMEDIATED OR NOT, BECAUSE SINCE THERE WAS CHANGE IN MANAGEMENT FROM THEIR SIDE AS WELL, AND WE DO HAVE THE [2:26:47] FOLLOW-UP AUDIT IN OUR AUDIT PLAN, WE HAVE DECIDED THAT PROBABLY WE'LL CLOSE THIS ISSUE [2:26:54] FOR NOW BUT WHEN WE PERFORM THE FOLLOW-UP AUDIT WE WILL MAKE SURE WHAT IS THE STATUS OF SOME [2:26:59] OF THESE OPEN ISSUES AND SEE WHETHER THERE HAS BEEN ANY IMPROVEMENT MADE OR NOT. AND [2:27:05] THESE ARE ALL, THESE 3 ISSUES WERE NOT PUBLIC ISSUES SO WE DIDN'T IDENTIFY WHAT EXACTLY [2:27:10] THOSE ISSUES OVER HERE. SO THE NEXT ONE IS THE 2 2022 [2:27:23] PROMOTION PROCESS. WE CLOSED ISSUE NUMBER 8, FORMER EMPLOYEE BACK PAY, SO FOR NOW THERE ARE [2:27:29] NOW LIKE FOUR OPEN ISSUES FOR THIS REPORT, SO THERE IS STILL [2:27:37] FOUR REMAINING. THIRD 1 IS 2023 [2:27:44] SEXUAL EXAMINATION KIT SPECIAL PROJECT AUDIT AND FOR THIS ONE WE CLOSED THE ISSUE NUMBER 3, [2:27:52] RESTRICTED CONVERSION AND WE STILL HAVE TWO NONPUBLIC AUDIT ISSUES REMAINING, WHICH MANAGEMENT CAME TODAY AND [2:27:58] PRESENTED IN THOSE TWO ISSUES. [2:28:05] AND FOR THE 2023 PROPERTY A AND EVIDENCE AUDIT, SO THERE WAS [2:28:11] ONE ISSUE THAT WAS CLOSED REGARDING THE DESTRUCTION PROCESSES, SO THEY HAVE COMPLETED OR CREATED THE POLICY [2:28:17] AND PROCEDURES REGARDING THE DESTRUCTION PROCESS, AND THERE ARE NOW SEVEN AUDIT ISSUES [2:28:23] REMAINING FOR THIS REPORT, WHICH MANAGEMENT CAME AND PRESENTED AS WELL. REGARDING THE 2023P CARD [2:28:33] SPENDING PROGRAM AUDIT, WE HAVE CLOSED FOUR ISSUES FOR TRAIN, [2:28:40] DOCUMENTATION, RECORD KEEPING, SALES AND USE TAX, AS WELL AS USER TERMINATION TRANSFER CANCELLATION, SO RIGHT NOW THERE [2:28:45] ARE ONLY THREE ISSUES REMAINING FROM THIS AUDIT. AND SO THESE [2:28:54] ARE SOME OF THESE OPEN ISSUES THAT WE HAVE HIGHLIGHTED BECAUSE IN THE PAST WE JUST USED TO [2:29:00] INCLUDE THE AUDIT NAME, BUT WE HAVE ALSO INCLUDED THE AUDIT [2:29:06] NAME AND ALSO THE TITLE ISSUE NAMING AND WHETHER THERE HAVE BEEN WHAT PHASE, WHETHER IT'S [2:29:11] OPEN, OVERDUE, OR VALIDATION IN [2:29:16] PROGRESS. SO NEXT FEW SLIDES ARE BASED ON ALL THOSE DETAIL [2:29:25] INFORMATION. SO REGARDING SOME [2:29:31] OF THESE OPEN ISSUES, SO THE FIRST ONE IS RELATED TO 2019 POLICE OFF-DUTY WORK, AND THERE [2:29:37] ARE THREE OPEN ISSUES RIGHT NOW. THE FIRST ONE, INTECHNOLOGY ENHANCEMENT POLICY REQUIREMENTS, [2:29:43] AND OVERSIGHT AND MONITORING, SO THE FIRST ONE REGARDING THE [2:29:48] TECHNOLOGY ENHANCEMENT, WHEN WE PERFORM THAT AUDIT BACK IN 2019, THE SYSTEM WAS ALREADY CIG OF [2:29:57] OLD SO BASED ON OUR DISCUSSION WITH MANAGEMENT, THEY ARE WORKING ON REPLACING THAT I.T. SYSTEM CALLED WORKFORCE DIRECTOR [2:30:04] TO MAKE SURE TO TRACK SOME OF THE OFF-DUTY HOURS, SO, SO [2:30:10] THAT'S IN THE WORKS. AND FOR THE ISSUE NUMBER 2, SOME OF THESE POLICIES ARE ALSO COVERED [2:30:15] AS PART OF THE CON CONSENT DECREE, SO THEY WILL BE WORKING [2:30:22] ON SOME OF THOSE POLICY REFORMS AS WELL, AND THE THIRD ONE IS REGARDING THE OVERSIGHT AND [2:30:29] MONITORING, SO MPD HAS CREATED THE INSPECTION UNIT WHICH IS [2:30:35] RESPONSIBLE TO PROVIDE SOME OVERSIGHT WORK AS WELL. SO THEY HAD BEEN WORKING ON CREATING [2:30:42] SOME OF THESE OPENING ISSUES BUT ONE OF THE THINGS LIKE THERE HAS BEEN CHANGES IN THE LEADERSHIP [2:30:48] IN THIS DIVISION AS WELL SO SOMETIMES IT'S HARD WHENEVER THERE IS TURNOVER, SO WE'LL BE [2:30:54] WORKING WITH THE MANAGEMENT AND ALSO WHEN WE COMPLETED THE ANNUAL AUDIT PLAN, WE PUT POLICE [2:31:01] 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 [2:31:07] THINKING ABOUT PUTTING THAT AS A PART OF THE FOLLOW-UP AUDIT AS WELL IX SO WE CAN LOOK AT [2:31:14] SOME OF THESE ISSUES WHICH HAVE NOT B BEEN COMPLETED. SO THE [2:31:21] NEXT ONE IS THE 2021 PERSONNEL WORK ISSUES, MOBILE DEVICE POLICIES AND CONTROLS AUDIT. [2:31:28] SO, SO THIS AUDIT HAS FIVE OPEN ISSUES, SO IF YOU LOOK AT THEM, [2:31:36] BASICALLY THEY'RE ALL INTERTWINED WITH EACH OTHER, SO BASED ON OUR CONVERSATION WITH [2:31:41] THE MANAGEMENT, THEY HAVE ALREADY DRAFTED THE POLICY, BUT IT HAS NOT BEEN FINALIZED [2:31:47] FINALIZED BECAUSE I THINK THEY ARE ALSO WORKING ON EMPLOYEE [2:31:52] ACKNOWLEDGMENT WHENEVER THERE IS A CHANGE IN POLICIES AS WELL, SO ONCE IT HAS BEEN FINALIZED AND [2:31:59] PUBLISHED IN THE PUBLIC SETTING, THEN WE WILL BE ABLE TO PERFORM [2:32:04] AND VALIDATE ISSUE 225 AS WELL SO THE MAIN ONE RIGHT NOW WE'RE [2:32:12] WAITING FOR IS TO FINALIZE THESE POLICIES AND PROCEDURES, AND IT SHOULD BE DONE IN THE NEAR [2:32:19] FUTURE. AND FOR THE 22 HIRING [2:32:30] AND PROMOTION AUDIT, WE HAVE FOUR ISSUES, AND BASICALLY BESIDES THE ISSUE NUMBER 5, [2:32:36] WHICH REQUIRES FUNDING AND APPROVAL FROM THE CITY COUNCIL OR BUDGET COMMITTEE AS WELL, [2:32:44] REST 1213 AND 16, MANAGEMENT IS WORKING TO COMPLETE THAT IN COMING FEW MONTHS. AND THE NEXT [2:32:53] ONE IS IN 2023 REVENUE COLLECTION PHASE 1, WE HAVE FIVE OPEN ISSUES RIGHT NOW FOR ISSUES [2:33:04] 1, 2, 3, AND 5, THEY HAVE BEEN PARTIALLY REMEDIATED, BUT RIGHT NOW THE CITY IS GOING THROUGH THE ANNUAL FINANCIAL AUDIT WHICH [2:33:10] CONCLUDES IN JULY, SO MANAGEMENT SAID THAT THEY CAN FOCUS MORE TIME TO COMPLETE SOME OF THESE [2:33:16] ISSUES AFTER JULY, SO. AND THE [2:33:24] 2023 SEXUAL ASSAULT EXAMINATION KIT SPECIAL PROJECT FOLLOW-UP, WE JUST HAD THE MANAGEMENT PRESENT THE STATUS THIS MORNING. [2:33:34] AND THE SAME WITH THE 2023 PROPERTY AND EVIDENCE AUDIT AS WELL. FOR THE 2023P CARD [2:33:47] SPENDING AUDIT WE HAVE THREE OUTSTANDING ISSUES, BUT THEY STILL HAVE SOME TIME TO COMPLETE SOME OF THESE ISSUES, SO WE'LL [2:33:56] PROVIDE MORE UPDATES DURING THE NEXT AUDIT COMMITTEE MEETING. AND FOR THE 2024 MPD FLEET [2:34:04] MANAGEMENT AUDIT, THERE ARE TEN OPEN ISSUES. THEY ARE STILL WORKING ON, AND FOR THE SPECIFIC [2:34:15] SPECIFICS FOR DRIVER LICENSE PROGRAM, BASICALLY THEY HAVE CATHED ARE THE STAFF AND OFFICER -- CONTACTED ALL THE STAFF AND OFFICERS TO PROVIDE [2:34:20] THEIR ELIGIBILITY ON THEIR DRIVER LICENSE INFORMATION SO THAT THEY CAN COMPLETE THIS [2:34:29] ISSUE AS WELL, SO THEY HAVE BEEN WORKING ON COMPLETING THIS AUDIT ISSUE. HOP HOPEFULLY WE'LL PROVIDE MORE UPDATE IN THE [2:34:35] NEXT AUDIT COMMITTEE FOR THIS ONE. AND FOR THE NCR CITY [2:34:40] FUNDING TO NEIGHBORHOOD ORGANIZATIONAL AUDIT WE HAVE FOUR OPEN ISSUES, AND IF YOU LOOK AT THE DATES, THEY STILL [2:34:47] HAVE TIME. BESIDES ONE, BUT WE'LL FOLLOW UP ON THAT ONE AND [2:34:53] PRESENT AUGUST AUDIT COMMITTEE MEETING. SO THESE ARE A LIST OF [2:34:59] ALL THE REPORTS WITH THE NONCLOSED AUDIT ISSUES, AND AT THIS TIME, I WOULD LIKE TO [2:35:05] PRESENT CITY AUDITOR TIMMERMAN TO GO YOU THE NEXT SLIDE. THANK YOU -- TO GO THROUGH THE NEXT SLIDE. ANY QUESTIONS BEFORE -- [2:35:11] >> MEMBER HOSBEIN. >> JUST TWO QUICK POINTS. I KNOW WE'RE RUNNING TIME. THANK [2:35:16] YOU SO MUCH FOR THIS DETAIL. THIS IS HUGELY HELPFUL. I FINALLY THINK I UNDERSTAND WHAT [2:35:22] I'M SUPPOSED TO BE LOOKING FOR, SO THANK YOU. I SEE THAT YOU HAVE THE MPD FLEET MANAGEMENT [2:35:27] AUDIT ON THE NEXT COMMITTEE MEMBER OR THE COMMITTEE MEETING AGENDA. I FEEL LIKE IF MEMORY [2:35:34] SERVES WE ARE WAITING FOR ACTUALLY SOME ADDITIONAL DATA FROM THAT TEAM AS WELL. FROM [2:35:41] OUR PREVIOUS REVIEW WHEN THEY WERE HERE. I COULD LOOK UP TOO, BUT I WOULD LOVE IF WE COULDVY RESOLUTION ON ANY OF THOSE [2:35:48] OUTSTANDING NUMBERS. >> YEP, WE HAVE BEEN WORKING WITH MANAGEMENT TO GET THAT INFORMATION, SO WE WILL FOLLOW UP WITH THEM AGAIN. [2:35:56] >> AMAZING, THANK YOU. >> MR. TIMMERMAN. >> THANK YOU, CHAIR PAYNE, AUDIT [2:36:01] COMMITTEE. NEXT ITEM IS WE'RE LOOKING FORWARD TO A TRAINING SESSION ON JULY 28th. YOU SHOULD'VE ALL RECEIVED [2:36:07] INVIIDATIONS FOR THAT. -- INVITATIONS FOR THAT. WE ARE LOOKING TO HOLD THAT AT A SPACE [2:36:16] TO BE DETERMINED, BUT IT WILL FOCUS ON INDEPENDENCE, OBJECTIVITY, AUDIT STANDARDS, [2:36:22] THE WORKING RELATIONSHIP BETWEEN THE COMMITTEE AND THE OFFICE OF CITY AUDITOR, AND THE CITY COUNCIL, AND THE DYNAMICS OF [2:36:31] THAT, SO WE HAVE BEEN WORKING HARD ON PUTTING TOGETHER THAT TRAINING SO WE ARE LOOKING FORWARD TO THAT AND WE'RE HOPING [2:36:37] IT TO BE A BIT MORE OF A CASUAL ENVIRONMENT AS WELL. SO COME, WEAR GE JEANS, BRING YOU ARE [2:36:45] COFFEE, WE'LL JUST HANG OUT FOR A FEW HOURS. THAT'S IT. THANK [2:36:51] YOU. >> ALL RIGHT. THANK YOU. ACTION PACKED DAY, AND I THINK WITH THAT I WILL ASK THE CLERK TO RECEIVE AND FILE THAT REPORT, [2:36:57] AND SEEING NO FURTHER BUSINESS BEFORE US, AND WITHOUT OBJECTION, I WILL DECLARE THIS MEETING ADJOURNED. THANK YOU.