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City Services Auditor outlines follow-up process, flags Hansen Aggregates lease and other open recommendations
Summary
The City Services Auditor described regular and field follow-ups on audit recommendations, reporting 22 follow-ups this quarter covering 146 recommendations (62 closed, 76 open, 4 elapsed, 4 contested). A field review of the SFPUCs Hansen Aggregates lease found oversight weaknesses and a potential $634,000 liability; SFPUC has collected over $40,000 so far.
The Government Audit and Oversight Committee heard an overview of the City Services Auditors follow-up work on audit recommendations, with Tanya Lettichu, director of city audits, saying her office uses regular and risk-based field follow-ups to verify departments implement recommendations.
"The benefit from audit work is not only in the findings or recommendations made but in the implementation of those recommendations," Lettichu said, describing regular follow-ups at 6 months, 12 months and two years and a field-testing process where auditors gather on-site evidence.
For the quarter under review CSA conducted 22 follow-ups covering 146 open or contested recommendations. Lettichu said departments closed 62 recommendations (42 percent), 76 remain open, 4 have elapsed and 4 were contested. "Active means the department never provided CSA with a response to our follow-up request," she said.
Lettichu highlighted an LBE (local business enterprise) audit in which the Contract Monitoring Division (CMD) did not impose sanctions in at least one case but strengthened oversight by providing training and deploying a web-based monitoring tool.
On field follow-ups she noted the office tested recommendations tied to the SFPUCs lease with Hansen Aggregates, which operates a rock quarry. "We found PUC had significant weaknesses in its oversight and management of this lease and that the contractor owed the city up to $634,000," Lettichu said. She added the follow-up memorandum has been issued and full detail will appear in the next quarterly report; SFPUC has collected over $40,000 and adjusted personnel, procedures and technology in its real estate section.
The committee filed the hearing without objection following the presentation.
