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Supervisors move hospital bond and hear auditors' reports; counsel advises caution on CEQA appeal
Summary
The committee heard a major presentation on an $887.4 million bond to rebuild San Francisco General Hospital to meet seismic standards and received the city's external audit reports for FY2007; counsel recommended the hospital bond measures be sent to the full Board without recommendation owing to the possibility of a CEQA appeal.
Committee members heard a detailed presentation from Jean O'Connell and hospital staff on a proposed $887.4 million general obligation bond to rebuild San Francisco General Hospital and Trauma Center. O'Connell said state seismic requirements (OSHPD) make a rebuild necessary by 2013; the project design calls for a base-isolated, patient-centered facility with about 284 beds and expanded ICU capacity. The presentation described completed planning steps (feasibility studies, schematic design, environmental review) and a proposed timeline for construction and occupancy aligned to the bond calendar.
During the same meeting the city's external auditors (Macias, Jeanie & O'Connell; KPMG; Williams Adley; Hooten Strong) presented the FY2007 comprehensive annual financial report (CAFR) findings and audit plans for FY2008. Audit teams reported one significant deficiency (revenue-recognition timing under the 120-day rule) and entity-specific control observations for PUC, Muni and the Port. Auditors noted implementation of new AICPA risk-assessment standards for the coming year and expected material reporting of OPEB (other post-employment benefits) liabilities under GASB standards.
Because of a possible CEQA appeal related to the San Francisco General environmental review, committee counsel recommended sending the bond measures to the full Board without recommendation; the Chair followed counsel's advice. The audit item was filed and the meeting adjourned. Members of the public raised concerns about financial oversight of DPH and urged formal financial audits of San Francisco General and the Department of Public Health.
Next steps: Items 7 and 8 (bond and related resolutions) will go to the full Board for action; the audit recommendations will be worked on with department CFOs and the Controller's Office to improve revenue recognition training and certain internal-control monitoring functions.
