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Finance committee: audit findings down from 87 in 2019 to one; committee recommends annual FCAP updates
Summary
The Finance Governance Committee received an update on the Financial Corrective Action Plan and voted 3-0 to forward the update to City Council, with staff proposing annual rather than biannual reports after sustained progress that reduced 87 findings in 2019 to one current IT-related finding.
The Finance Governance Committee on Dec. 10 voted unanimously to forward to the City Council an update on the citys Financial Corrective Action Plan (FCAP), after hearing that outstanding audit findings have fallen substantially since 2019.
Jennifer, a finance department staff member who presented the update, told the committee: "In 2019, there were 87 outstanding findings. At this point, we have 1 outstanding finding." She said the remaining finding is IT-related and comprises multiple parts that are being addressed; she estimated that it contains 10 component items and indicated some testing and reporting occur through the citys audit process.
Staff proposed reducing the frequency of FCAP updates to the committee from twice a year to once a year, citing that there have been no new findings in the past two years and that the single outstanding finding has been stable. Jennifer explained the status taxonomy used for findings and how auditors test corrective actions during the next single-audit cycle before a finding can be marked complete.
Committee members praised staff for the sustained corrective work. Member Turan called the progress "excellent" and thanked staff; other members offered congratulations and noted the work involved coordination across departments. There were no public speakers on the item.
A motion to accept the staff update and forward the FCAP item to City Council passed 3-0 in a roll-call vote. The transcript shows Member Basuah, Member Turan and Chair Zaragoza voting in favor. Staff said they will prepare whatever materials the council requires to receive the update and the proposed change in reporting frequency.
Clarifying details recorded in the meeting include the historical count of 87 outstanding findings in 2019, the current single outstanding IT-related finding described as having multiple parts (reported as "10 parts" by Jennifer), the absence of new findings in the past two years, and the staff proposal to move to annual FCAP updates unless auditors identify new issues.
The committees action forwards the FCAP update and the proposed annual reporting cadence to the City Council for consideration and any subsequent direction.
