It's Official! New Report Released, Audits in Progress, Critical Appointment & More

INDEPENDENT CITY AUDITOR. REPORTING DIRECTLY TO THE RESIDENTS.

I Am Officially Your City Auditor - Thank You for Your Vote!

Dear Friends,

It's official! Although I was elected on March 5th, the City Council certified the election results on April 30th, and I was sworn into Office on May 3rd. Thank you, Oaklanders, for casting your votes and entrusting me to watch over your government.

As your new Auditor, I’m eager to deepen my partnerships with Oakland residents, businesses, City employees, and other stakeholders so my Office can continue identifying and auditing areas of the greatest risk, interest, and concern.

If you'd like me to attend a neighborhood meeting, block party, or schedule a private meeting, please contact Dena Shupe.

Mandated Audit Report Released - Library Services

Today, my office released a report on our Audit of the Library Parcel Taxes for the Fiscal Year (FY) 2019-20 through FY 2022-23. This audit reviewed the Oakland Public Library’s use of special taxes, as required by voter-approved measures. Through the audit, we sought to determine whether the Library 1) spent Measure Q, D and C proceeds as intended, 2) met minimum General Fund appropriation requirements, and 3) met its reserve fund requirement.

I am pleased the audit found that the City implemented our previous audit recommendation to provide the Library Commission with additional financial reports to strengthen its oversight abilities.

The audit also found that the Library spent Measure Q, D, and C proceeds in accordance with their respective requirements, and there were no significant issues with the Measure Q reserve fund requirement (the Library is required to reserve 5 percent of the previous year’s revenue and deposit it into a separate reserve fund which may only be used with the City Council’s approval).

However, the audit found two ways the City did not meet Measure C requirements:

1. The City fell short of Measure C’s General Fund appropriation amount (by approximately $62,000) and exemption requirements for FY 2022-23. According to Measure C, the special tax may not be collected if the City fails to meet the minimum required General Fund appropriation.

2. The City refunded $112,000 in Measure C taxes mistakenly collected from property owners exempted by the measure. The Finance Department processed the exemptions listed under Measure Q instead of Measure C, which includes additional exemptions for senior households and a 50-percent reduction for affordable housing projects.

The audit recommends: 1) the City Administrator should validate the General Fund appropriation shortfall with the Finance Department and consult with the City Attorney’s Office to determine the appropriate course of remediation and 2) to ensure timely and accurate processing of new parcel taxes, the City Administrator should create an administrative instruction to notify affected departments of approved ballot measures so staff can review and update procedures to reflect additional parcel tax exemptions, changes to the general fund appropriation, and other requirements before processing the new measure.

Read the Full Report

Critical Appointment - Budget Advisory Commissioner

I was honored to appoint Mike Forbes as a Member of the Budget Advisory Commission. Mike is the Chief Executive Officer of Safely, a company specializing in natural cleaning products, and has 25 years of experience in the Consumer-Packaged Goods and food industries.

He is a dynamic executive dedicated to forming passionate teams that address complex issues. Mike is enthusiastic about helping the City allocate limited funds to address multiple pressing issues and develop innovative solutions.

I trust that he will fulfil his duties as a Commissioner with the utmost integrity, and his extensive background in business and community development will enhance the work of the Budget Advisory Commission.

Learn more about the Budget Advisory Commission.

Audits in Progress - Update

The following audits are in progress:

Development Services Fund: The Development Services Fund is a restricted-use fund that holds revenues the City collects from fees and charges associated with housing and commercial development, planning, and construction-related activities in the city. This audit reviews the management of that fund and identifies the reasons for its high year-end balances. The audit is near completion; we are awaiting a response to the draft audit and recommendations from the Administration.

Pay Equity: On May 3, 2022, the Oakland City Council requested an audit after a former employee alleged pay inequities affecting women of color in the City. The City Council authorized funding for an “independent investigation into allegations of recurrent pay inequities and mistreatment of women of color by the City Administration.” This audit reviews pay equity in the City’s workforce by race and gender, and is in the report-writing phase.

An Unnamed City Grantee: This audit follows multiple anonymous complaints about a City grantee. It reviews the City of Oakland's payments to the unnamed City grantee and its fiscal sponsor. The audit objectives are to assess the grantee’s compliance with grant terms, and assess the City’s oversight of the grant funds. The audit is near completion; we are awaiting a response to the draft audit and recommendations from the Administration.

Citywide Investigations: This audit will review the City’s process for investigating claims of harassment, discrimination, and retaliation. Based on the City Council's request, it is intended to complement the pay equity audit. This audit is on hold pending staffing resources.

Emergency Response Times: This audit kicked off in late March 2024 with a preliminary objective to assess the timeliness of the Police and Fire departments in responding to calls for emergency service. The audit will complement a staffing study and resource analysis by the Oakland Office of Inspector General. This audit is in the early planning phase.

Kids First!: This audit reviews the City Administrator’s compliance with the voter-approved General Fund set-asides for children and youth services, and will determine whether the City met baseline spending requirements as required by the City Charter (Article XIII). We will begin fieldwork for this audit in July.

In addition to these audits in progress, the Office is reviewing whistleblower investigations, hiring additional staff, and working on various administrative projects.

Presentation to City Council - First Semi-annual Recommendation Follow-up Report

I presented our first semi-annual report on the status of open audit recommendations to the City Council on May 21. This report, issued on March 21, summarized all audit recommendations issued within the last 10 years as of December 2023.

The semi-annual recommendation follow-up report represents a new process for the City, and was implemented in response to Measure X, the government reform amendment to the City Charter passed by voters in November 2022. We will continue to report on the status of audit recommendations semiannually for periods ending June 30^th and December 31^st, adding new recommendations for reports issued in the previous cycle, and updating the progress made on implementation over the past six months. See the presentation here (1:07:33).

Read the Full Report

Connecting with Community - National Night Out

Thinking ahead, I want to encourage Oaklanders to host National Night Out block parties on Tuesday, August 6th, from 4 to 8 PM and invite our Office to attend! This is a great opportunity to discuss safety issues or any other concerns you may have about our City.

The only requirement to block off a street and host a block party is to register the gathering using the City’s online portal. Register to host a party by July 29, 2024, and receive a host packet.

Contact Dena Shupe to invite us to your National Night Out block party!