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Dear Friend,
Today, my Office issued the Performance Audit Report of the Development Services Fund: Centralized Fund Management Will Better Capture Citywide Costs.
The Development Services Fund holds money that the City of Oakland (City) collects from development service fees that arise from the permitting of development projects throughout the city.
The objective of this audit was to review the management of the Development Services Fund, which had a year-end fund balance of $149 million in Fiscal Year (FY) 2019-20 and is projected to have a fund balance of $5 million in FY 2024-25, according to the 2023-25 Biennial Budget.
We made two recommendations to the City Administration: 1) to create a policy for periodic fee studies covering all departments that contribute to and draw from the Fund on an ongoing basis, and 2) to establish criteria for what types of staff may be funded with development service fees, as the number of staff funded with these fees has increased over time.
Please contact my Office if you have any questions or want us to brief you on this audit.
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