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Committee hears city auditors, tables CAFR hearing for follow-up
Summary
External auditors presented the FY2011 CAFR, single-audit results and the FY2012 audit plan; auditors reported unqualified opinions for many programs but noted findings in the foster care program and at the airport. The committee tabled the hearing after brief discussion and no public comment.
The committee heard presentations from external auditors on the city's fiscal-year 2011 financial statements and related single-audit reports, then agreed to table the hearing for follow-up.
Cindy Pahn of Macias Gini & O'Connell told the committee the city did not have current-year recommendations that rose to the level of control deficiencies for the financial-statement audit, but noted three partially implemented prior-year recommendations relating to the Port of San Francisco (disaster recovery/business continuity, capital-asset inventory, and controls over materials and supplies). The single-audit disclosed two findings in the foster-care program: insufficient subrecipient monitoring and an outdated indirect-cost-rate basis for certain claimed costs.
"The city expended $560,500,000 of federal awards in fiscal year 2011," Pahn said, and the auditors tested 21 major federal programs representing over 70 percent of federal expenditures.
Tiffany Rasmussen of KPMG summarized single-audit results for agencies the firm audits directly, including the Municipal Transportation Agency, the Public Utilities Commission, San Francisco International Airport (SFO) and the health-services system. KPMG reported unqualified opinions on compliance for the MTA and PUC; SFO had four current-year findings related to cash management, Davis-Bacon compliance, allowable costs and reporting, and KPMG said the airport was addressing those issues.
After brief questions and no public comment, President Chiu moved to table the hearing; the motion passed without objection so the committee can follow up with departments and return the item later.
The auditors also presented an audit plan for fiscal year 2012 outlining scope, teams and a planned reporting timetable through October of the next audit year.
