Policy & Services committee recommends approval of FY2026 audit plan after risk assessment briefing

The Policy & Services Committee on May 28 recommended that the full City Council approve the Office of the City Auditor's citywide risk assessment and the fiscal year 2026 audit plan.

City Auditor Miss Murdock presented the results of the audit office's risk assessment and the proposed audit plan for fiscal year 2026, saying, "Thank you so much. Thank you for the opportunity to present the results of the audit office's citywide risk assessment and resulting audit plan for fiscal year 2026." The plan was developed with input from council, the executive leadership team and department staff and will run from July through the following spring, the auditor said.

The auditor said the risk assessment drew on a survey of council, the executive leadership team and 11 departments, and prioritized risks by likelihood and impact. High-priority topics identified for audits or advisory projects include below-market-rate (BMR) affordable housing, contract solicitation thresholds and contract management practices, utility reserve and asset management, fleet resources and climate action progress, and traffic safety improvements. The audit office also intends to carry out three audits and three advisory projects, and to follow up on prior audit recommendations.

Council members asked the auditor for scope details. Council member Liu asked whether the BMR audit would cover vacancy data, wait-list administration, and whether the audit would include properties managed by Alta Housing; Miss Murdock confirmed vacancy and time-to-fill data are in scope and said Alta Housing, as an organization that works with the city, is subject to the audit office and staff will coordinate with them during the audit. Miss Murdock also described the traffic safety audit approach: "How is the city determining where to make traffic safety improvements? What sort of data is going into that decision making to ensure that improvements are being made in areas where there might be the most risk to pedestrians?" she said.

Committee members discussed contract solicitation thresholds and whether the city's current dollar thresholds remain appropriate in light of inflation and administrative burden. The auditor said the audit plan includes an advisory analysis of solicitation/authority thresholds and a contract management best-practices advisory.

After the presentation and a period for questions, a committee member moved to accept the staff recommendation and another member seconded. Committee roll call recorded Council member Liu: yes; Council member Stone: yes; Chair Bienker: yes. Chair Bienker announced, "Yes. Motion carries." The motion to recommend City Council accept the FY2026 audit plan and corresponding task orders passed by unanimous roll call of the committee members present.

The committee did not direct changes to the plan at this meeting. Miss Murdock and audit office staff said projects will roll out between July and October and audit work will be completed in the following spring. The audit office noted some risk areas have been on successive annual risk assessments and that advisory projects are intended to supplement departmental work and identify opportunities for improvements.