Controller’s auditors report 2016 bond expenditures complied with ballot language

Mark Dela Rosa, acting director of audits in the City Services Auditor division, and an external consultant reported to the Citizens GO Bond Oversight Committee that their recent audit of 2016 affordable housing bond expenditures found the tested sample was spent in accordance with the ballot measure.

Why it matters: The committee oversees whether bond proceeds are used as voters approved. An independent audit that finds compliance reduces immediate concerns about misallocation, but the committee and auditors said continued oversight is necessary as other GEO bond programs remain active.

Audit scope and findings Auditors said they tested 100% of £34,200,000 in expenditures through June 30, 2020, covering 13 projects. The external firm reported documentation reviewed included executed loan agreements, promissory notes, reimbursement requests, invoices, title company wire documents and other records. The firm concluded those expenditures complied with the legal text of the ballot and had no material exceptions to report.

Next steps and related audits Auditors noted this was the tenth GEO bond expenditure audit completed by their program and said future audits would include the 2018 seawall/earthquake safety bond, the 2019 affordable housing bond and the 2020 health and homelessness bond program. Committee members and staff discussed integrating audit work with bond reporting to ensure timely oversight.

What was not addressed in the audit presentation Presenters said their testing covered expenditures through mid‑2020; the audit did not assess projects funded after that date or operational outcomes such as lease‑up timing or long‑term project performance.

The committee accepted the report and had no immediate action beyond scheduling and liaison coordination for upcoming audits.