[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6634538,"mediaKeyId","2663862-c77eded16d95f4781842e64aa1007928","parentId",2663862,"title","Comptroller's audit division unveils ERA and 2025 audit plan, prioritizes contract compliance and IT risk","audioSeconds",1012,"startMs",748000,"endMs",1760000,"viewUrl","/Search/View?dp=1&key=2663862-c77eded16d95f4781842e64aa1007928&start=748&end=1760","thumbnailUrl","https://assets.pipeline.soar.com/2663862-c77eded16d95f4781842e64aa1007928/thumbnail_748000.jpg","articleUrl","/articles/6634538/Houston/Harris-County/Texas/Comptrollers-audit-division-unveils-ERA-and-2025-audit-plan-prioritizes-contract-compliance-and-IT-risk","mediaUrl","https://secure.pipeline.soar.com/6634538-02be3f6e7b7c84ae03a66c152dd84aa1/orig.mp4?Expires=1775048003&Signature=ZeQBnBbeJC8PzkFJ6XGdnAJN3NaYDmk3MPSk80dr9yBTsgAy~NYyyfQu7XEBXxOSEm9YzQi3x6ibX~ll4IC0K3AvrMFRzrEwqy7stGPAJ-PfW2J7XyTB6YGKybzGc9Krf6nabu-hBMKlrsvDbC8MVUyTj08SB~oZCnG1n1bOsgjXWdFLwvHb9pkW2I0OEov2f2NyLVDwWYd5hE68Hj2h3tsHlMm0ChfTfWQYWRavWPp2aBeT7rKxUtY0Y99ihTK08zX5Rp9j3fCScYstoFgw~0SG6jcR0hSZsxS0wYPg3ezC5SFzYS-0NrkZxiR5UffFUZUlQ82YfcIzaz2Wquu2ww__&Key-Pair-Id=KUT5TJCACFTXG","author","Houston","date","2025-03-17T00:00:00Z","article","Deputy Director Jennifer Pierce, representing the City Controller’s audit division, briefed the joint committees on the office’s enterprise risk assessment for fiscal 2024 and the audit plan for fiscal 2025. Pierce described a risk-driven audit program designed to “identify and manage risk proactively” and outlined 37 engagements planned for the coming year.

Pierce said the FY24 ERA reviewed department risk profiles and top enterprise risk areas; internal analysis identified roughly 146 historical processes across the city, of which 18 cross departments and divisions. The ERA highlighted five top risk areas that shaped the FY25 audit work: fleet management, grant management, contract compliance, post-implementation reviews of major information systems (including SAP ERP) and payroll-related controls.

Pierce emphasized that audits follow professional standards and the audit division’s charter. “All audit programs, work papers, and reports are prepared in accordance with the US Government Accountability Office’s Yellow Book, the Institute of Internal Auditors standards, and AICPA guidance,” she said, describing the five-step audit approach: define, plan, fieldwork, report (with management remediation plans), and follow-up.

Priority audits and rationale

- Contract compliance: Pierce flagged audits of emergency spending and a $48,000,000 package split among 11 contractors for which compliance testing and rate verification are planned.
- Post-implementation audits: The division will evaluate large IT systems (including SAP) after deployment to verify objectives and controls.
- Texas prompt-payment compliance: A compliance audit will assess whether the city is taking discounts and following prompt-payment practices; the division said testing could result in cost recovery.

Resources and capacity

Pierce said the number of audits the division can complete depends on staffing and specialist use; she noted the division recently added three staff members and that it completed a peer review for work from 2021–2023 with no exceptions. Council members and Pierce discussed coordination with the mayor’s efficiency study (performed by Ernst & Young) to avoid duplication. Pierce said the audit division will use EY deliverables where work papers are provided, but that EY’s effort is a consulting engagement and not an audit; the controller’s audits remain independent and will review the implementation of any management changes.

Council questions

Council Vice Mayor Pro Tem Amy Peck asked how the audit division will coordinate with the efficiency study implementation. Pierce said auditors will follow implementation timelines; where new systems are implemented she expects auditors to test system-life-cycle design decisions within the first six months or include longer-term reviews in subsequent fiscal-year plans. Councilmember Fred Flickinger asked how the audit differs from Ernst & Young’s (EY) study; Pierce reiterated that EY provides consulting and implementation planning while the audit division conducts independent validation and follow-up.

Next steps

Pierce said the audit division will continue to refine audit scope and prioritize engagements by risk ranking, availability of staff, and where consulting assistance can accelerate testing. She committed to returning audit reports to the committee as they are completed. The division also pledged to provide specific answers requested by council, including the percentage of invoices receiving prompt-payment discounts, as part of audit scoping.

Ending

The committee welcomed Pierce and congratulated the audit division on its peer-review result. No formal committee action was taken during the presentation.","mediaType","Video","parentTitle","Houston - Budget and Fiscal Affairs - Mar 17, 2025","oneSentenceSummary","Deputy Director Jennifer Pierce of the City Controller’s audit division presented the fiscal year 2024 enterprise risk assessment and the FY2025 audit plan, identifying five top risk areas that will drive 37 proposed audit engagements.","taxTitle","Houston, Harris County, Texas","taxId",2797,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6634543,"Houston controller projects $245.1 million year-end balance; $100 million drainage transfer and $26 million sales-tax adjustment reshape outlook",310,69000,379000,"/Search/View?dp=1&key=2663862-c77eded16d95f4781842e64aa1007928&start=69&end=379","https://assets.pipeline.soar.com/2663862-c77eded16d95f4781842e64aa1007928/thumbnail_69000.jpg","/articles/6634543/Houston/Harris-County/Texas/Houston-controller-projects-2451-million-year-end-balance-100-million-drainage-transfer-and-26-million-sales-tax-adjustment-reshape-outlook","https://secure.pipeline.soar.com/6634543-9987927aeb86aba68e9832a11e36d2c5/orig.mp4?Expires=1775048003&Signature=ko13ZL9Yvl4Z2CrdWIyN~Ir3JIhvdTykBRZyFY-dOyzFZl8OXXjHowDLcJSsX8FIyUgtT-YJjkGamFKl5i0bRwVqzHYT3Wsn71HXKMrNbCRPxrlX50EauRB-uVTJagR8uzwyuHYrBKDVKYH1JVrvgfC6loC~oslrjD6N8KSepEqVMGEvD4fOxshhtaaXjVa1iFivyE072R-HJmksdf3oOmJvbVRfdTme04rfhTW~lz9p2FuC1T6~T4ZBxtNP1Mdat82LcfYPZ-z20fepVDa-BwcTcqfOjonhO2n302~WaMNt~IkJeuukA1a3SRRjmF8wX~POZXiHJzoZ-Tr0hwzS1Q__&Key-Pair-Id=KUT5TJCACFTXG","The city controller told the joint Service Delivery and Budget & Fiscal Affairs committees that the Controller's Office is projecting a $245,100,000 ending fund balance for fiscal 2025, based on results through Jan. 31, 2025.

The projection is $119,900,000 lower than the finance department's figure, Controller Chris Hollins said, a gap the controller tied largely to a planned transfer from the general fund into the dedicated drainage and street renewal fund following the Texas Supreme Court ruling. “We are going off to status quo,” Hollins said, adding the court ruling requires the city to make certain transfers unless and until notified otherwise.

The monthly report also recorded a $26,000,000 audit adjustment in the February remittance tied to sales-tax receipts that the state comptroller determined had been allocated to the wrong jurisdictions and were remitted to Houston dating back to 2019. Hollins said the state returned that $26,000,000 in the March remittance and has agreed to a 43-month, 0% interest repayment plan beginning in April for the jurisdictions that were overpaid.

Why it matters: The projected reduction relative to the finance department’s estimate and the required drainage transfer change how much discretionary funding city leaders expect to have during budget preparation. The controller’s office reported the city’s projected fund balance remains roughly $55,300,000 above the city’s 7.5% target (excluding debt service and pay-as-you-go), but the variance compared with finance highlights uncertainty heading into budget season.

Key details and context

- Controller projection: $245,100,000 ending fund balance for FY2025 (period ending 01/31/2025).
- Difference vs. finance department: $119,900,000 lower, largely because the controller included necessary transfers to the dedicated drainage and street renewal fund after the Texas Supreme Court ruling.
- Sales-tax audit adjustment: $26,000,000 returned to Houston in March remittance after state audit reallocated receipts; state will implement a 43-month, 0% interest repayment plan for affected jurisdictions.
- Noted expenditure increases from the Controller’s review: a $100,300,000 increase in non-operating revenues for drainage projects (reflected as transfers into the dedicated drainage and street renewal fund); $3,500,000 increase for the Solid Waste Management Department for heavy-trash pickup; and $1,600,000 higher transfer to parks maintenance renewal and replacement tied to a land sale to TxDOT for the North Houston Highway improvement project.

Finance director’s briefing and reconciliation

Finance staff presented a 7+5 projection model (seven months of actuals, five months of projections) for the same period. That briefing confirmed the $26,000,000 state remittance had been received and that the finance department will enter the repayment arrangement referenced by the controller. Finance projected an ending fund balance of about $363,000,000 on its computations (a different methodology and exclusion of the drainage transfer), representing about 14.3% of estimated expenditures (excluding debt service and pay-as-you-go) and approximately $173,000,000 above the 7.5% reserve target.

Council members’ questions and administration responses

Committee members asked whether the city expects resolution of the drainage litigation before the budget process. Finance staff and the controller said negotiations with plaintiffs are ongoing and “the goal” is to have clarity before budget adoption, but no settlement was reported at the meeting. On the sales-tax correction, finance confirmed the state comptroller had negotiated the 43-month repayment plan and that monthly monitoring of receipts will continue—council members were warned that single remitter issues can produce larger future adjustments.

What the city reported about debt and enterprise funds

Controller Hollins said the city continues to keep variable-rate exposure well below council policy levels for commercial paper and bonds. He also noted changes in the dedicated drainage and street renewal fund and that projections for the Aviation Operating Fund, Combined Utility System Fund, Convention & Entertainment Operating Fund, and Stormwater Fund were unchanged from the prior month.

Outlook and next steps

Staff said they will continue to coordinate on the legal and financial implications of the court ruling and related transfers and will update the council as negotiations with plaintiffs progress. The controller reiterated that the office reports the status quo required by the Supreme Court ruling unless notified of a different outcome. If the drainage transfer becomes final, council members and department directors said they will need notice in time to draft and evaluate budget amendments.

Ending

Council members did not take formal votes on the controller’s report at the meeting. Staff said they will provide ongoing updates as the state repayment plan begins in April and as negotiations over the drainage transfers advance.","The city controller told the joint Service Delivery and Budget & Fiscal Affairs committees that the Controller's Office is projecting a $245,100,000 ending fund balance for fiscal 2025, based on results through Jan. 31, 2025.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6634529,"Mayor’s efficiency study proposes $4 million Ernst & Young spend-implementation contract to pursue 5–15% savings",1917,6273000,8190000,"/Search/View?dp=1&key=2663862-c77eded16d95f4781842e64aa1007928&start=6273&end=8190","https://assets.pipeline.soar.com/2663862-c77eded16d95f4781842e64aa1007928/thumbnail_6273000.jpg","/articles/6634529/Houston/Harris-County/Texas/Mayors-efficiency-study-proposes-4-million-Ernst-Young-spend-implementation-contract-to-pursue-515-savings","https://secure.pipeline.soar.com/6634529-b832ce4fc8a4540fdd58b47d1876b1a1/orig.mp4?Expires=1775048003&Signature=fz18W4L1-2tM07NgisW5za~iyV2LEkDdjeOYTONHxnPmKUewvgsBNL-heEOnHBFKG5WcABqkrupitZ4575vSR7cGJLngHpsai5cSYc3yceHpB1pKeh4J~wSr4F8h1WyocYhEl7uMX~jO7RSfZZfAn0Izes6w0O-vhznZNnBbcH~kWGNiYjkPukrerNgF4uLytgozOGSYKIxlz7BzNNxuQhITV56HUuaprV2EUhithpkQ3xoiP0qq7lzpBDf5oWTU2cRfjF3kyIsFhLNErL1OdL03Gk8sMMeSxAr57xVcIn6~vGbyN-tpjzWtfYOIl8raDkypKEy3nrXHqR0Otb-trQ__&Key-Pair-Id=KUT5TJCACFTXG","Deputy Chief of Staff Stephen David and Finance Department staff briefed the committee on the mayor’s efficiency study work stream focused on spend analysis, and previewed a live dashboard produced by Ernst & Young that groups three years of city spending into eight procurement categories and allows staff to drill down by vendor, purchase type and NIGP commodity code.

Key proposal: hiring outside help for implementation

City staff said they plan to ask council to approve a follow-on contract with Ernst & Young to perform spend implementation work and help the city execute category-management strategies. Officials estimated an implementation cost of approximately $4,000,000 and described a 12-month engagement that would front-load effort to identify rapid savings and renegotiate contracts; Ernst & Young estimated the implementation would require roughly 12,000–15,000 hours of work. The administration said municipalities that have moved to category management typically see 5%–15% cost savings once contracts and procurement processes are restructured.

What the dashboard shows

Finance showed an interactive dashboard that categorizes three years of spending (FY22–FY24) into eight categories (facilities & construction; industrial products & services; professional services; logistics & automotive; information & technology; management & operations; lifestyle & human services; medical). The dashboard flags noncontract spend, emergency purchase orders, and top vendors by dollar amounts, allowing procurement and department staff to target multi-department renegotiations and prepositioned or on-call contracts to reduce emergency, retail-price purchases during disasters.

Why it matters

Officials argued the “lowest-hanging fruit” is bringing noncontract spend onto contracts and consolidating duplicate contracts across departments—steps they said would reduce unit prices and administrative overhead. Staff also said the procurement cycle has shortened in recent months and that additional technology and staffing (category managers) will sit inside finance to maintain the dashboard and execute category-based negotiations.

Cost and timeline

The administration intends to present the contract amendment request to council in late March 2025. The proposed work plan showed a 12-month timeline of strategic sourcing, category management, procurement performance improvements and ongoing spend analytics. Officials told the committee the city already has tools (e.g., Ariba for contract monitoring) and will train city staff to run the dashboard after Ernst & Young transitions deliverables and trains internal teams.

Council questions

Council members sought clarification on timeline, staffing and whether the city would need new technology. Staff said the dashboard is part of the EY deliverable and that further investment will focus on human capital (category managers and subject-matter experts) and process change rather than large new software purchases. Council member questions also covered whether the expected savings can be realized quickly enough to inform the next budget cycle; staff said EY will be asked to front-load the effort to model near-term savings for budgeting purposes.

Ending

Committee members expressed broad support for the approach and asked staff to return with the formal contract action; no vote was taken at the meeting.","Mayor’s office and Finance officials previewed an Ernst & Young spend-analysis dashboard and recommended a roughly $4 million, 12-month follow-on contract to implement category management and renegotiate vendor contracts, with a target range of 5%–15% in savings.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6634533,"BARC director urges phased nonprofit partnership; LGC seen as longer-term option amid public safety concerns",1725,2085000,3810000,"/Search/View?dp=1&key=2663862-c77eded16d95f4781842e64aa1007928&start=2085&end=3810","https://assets.pipeline.soar.com/2663862-c77eded16d95f4781842e64aa1007928/thumbnail_2085000.jpg","/articles/6634533/Houston/Harris-County/Texas/BARC-director-urges-phased-nonprofit-partnership-LGC-seen-as-longer-term-option-amid-public-safety-concerns","https://secure.pipeline.soar.com/6634533-05419d896f950e520ab69e767d49e886/orig.mp4?Expires=1775048003&Signature=FhOLC7KkBpZ27dp08bJDqVN6VcN9uUwHtuzvqUDM2-yUvnvTIp4IEUw3pCJUXWhWVEVyWgEKqehQnI4dp7oDETCCcBXQ5sMLVQL5T0jcfpA8P5R4Rq~aiTzEqjTFOJpyBhhCExnBYfENNzplCmwkdV~3u9fJ1y2SSjR9G84uYBFbsqhaNeCF6ePR4A6rRFIPjgh83VxPyHsl5~K~jsEAumbfsSZJMmQgUzXfg305qsaDKd9YH~TRpkcMnto~aaSHpv~xmoJXfDRBY351rc8lxlBtAt5X0nFElWzBMQyrSEumfHHKpi7GpAE1iCJvbLqIpLkc5RTG7XPBuxR1U~IadA__&Key-Pair-Id=KUT5TJCACFTXG","BARC Director Jared Mears told the joint committees that the agency needs immediate funding and operational steps to address rising public-safety risks tied to loose and feral animals while also boosting live-release (adoptions, fosters, rescues). BARC presented a feasibility study that compares two options: creating a local government corporation (LGC) to run non-enforcement shelter operations, or issuing an RFP to contract with an experienced nonprofit partner in phases.

Mears stressed immediate public-safety priorities: BARC currently responds to roughly 58% of all calls for service, the agency meets 99% of priority 1 and 2 public-safety calls (active bites and imminent threats), but lacks capacity to reach lower-priority calls. Recent incidents—multiple severe maulings and a fatal attack in the span of a month—underscore the risk, Mears said.

Findings and recommendation

- Funding and capacity: BARC reported a $47,000,000 bond to build a new 150-kennel shelter; construction and staffing are underway but the director said earlier design work is complete and the city is restarting procurement processes.
- LGC feasibility: Study authors estimated a near-term operating cost around $7,000,000 for an LGC run out of a new facility. The review found almost no U.S. municipal analogs where a stand-alone LGC runs a city animal shelter fully; LGCs often work when there are immediate dedicated, reliable revenue streams (for example, a paid-admission venue).
- Nonprofit partnership: The study recommended starting with a nonprofit partner through a phased RFP for outreach and retail adoption operations as a lower-risk, faster option; if a partner proves financially sustainable, the city could explore forming an LGC in phase two. The study noted an established Houston nonprofit ecosystem (e.g., Houston Pets Alive, RPM) and recommended seeking partners that can scale rescue, foster and adoption pipelines without immediately shifting city kennel staff away from enforcement duties.

Public safety vs. live-release trade-offs

BARC staff said expanding live-release activities (more adoptions and transfers) increases space for adoptable animals but can reduce the shelter’s ability to hold and remove dangerous animals, creating a trade-off between live-release goals and public safety. Mears told the committee that increasing enforcement capacity—more animal-enforcement officers, outreach teams, vehicles, and support staff—would require sustained funding and staffing.

Council questions and public comment

Council members pressed for details on timelines and operational impacts. Council member Mary Nan Huffman and others asked whether design work and procurement were complete; BARC staff said design is complete and the procurement process is being reinstated, with a construction timeline estimated roughly 18–24 months once procurement resumes. Mears said the agency recently hired a new veterinarian and now has four veterinarians on staff (he stated a target of 14 veterinarians to fully staff operations).

Public commenters and rescue partners expressed a range of views. Some residents and rescue advocates urged rapid formation of an LGC to attract new fundraising and innovation; others urged a phased approach that supports existing nonprofit partners and preserves city enforcement staff on site. Rescuers told the committee they face difficulty responding now because BARC reduced some public lists and shortened the time windows for rescues to remove animals; several rescuers asked the city to restore publicly available euthanasia lists or extend notice windows to help volunteer networks retrieve animals.

Next steps

BARC proposed immediate RFP issuance for nonprofit outreach/retail services, continued work to build the new shelter using the $47,000,000 bond, and possible formation of an LGC in phase two if fundraising and partnership results justify the transition. The committee did not take formal action at the presentation; staff said an RFP for outreach/adoption operations is in process and the department will follow up with council offices on additional operational questions.

Ending

Committee members agreed the public-safety dimension must drive near-term decisions and thanked BARC staff for the presentation; BARC will return with additional procurement and timeline updates as the RFP and construction processes proceed.","BARC Director Jared Mears presented a feasibility review that recommends issuing an immediate RFP for a nonprofit adoption/outreach partner, resuming procurement for a $47 million new shelter, and delaying creation of a local government corporation until a partner proves sustainable.","actionData","errors"]

Article not found

Comptroller's audit division unveils ERA and 2025 audit plan, prioritizes contract compliance and IT risk

Houston controller projects $245.1 million year-end balance; $100 million drainage transfer and $26 million sales-tax adjustment reshape outlook

Mayor’s efficiency study proposes $4 million Ernst & Young spend-implementation contract to pursue 5–15% savings

BARC director urges phased nonprofit partnership; LGC seen as longer-term option amid public safety concerns