Performance and Financial Audits

Fiscal Year 2016-2017
In accordance with the Fiscal Year 2016 Annual Audit Work Plan, the Office of the City Auditor has completed the Community Services Department: Fee Schedule Audit. The audit report presents one finding with a total of three recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Community Services Department: Fee Schedule Audit.
Revision Date: 2/14/2017
The Office of the City Auditor recommends acceptance of Macias Gini & O’Connell’s (MGO) Audit of the City of Palo Alto’s Financial Statements as of June 30, 2016, and Management Letter. At its meeting on November 15, 2016, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee minutes are included in this packet.
Revision Date: 2/13/2017
The Policy and Services Committee recommends that Council adopt three motions regarding the Cable Franchise and PEG Fees Audit: 1) that staff work with the Midpeninsula Media Center (Media Center) to develop options for the Council to consider for a plan going forward that complies with PEG funding restrictions while supporting the Media Center’s public access function, 2) that the City Manager’s Office move forward to demand payment of underpaid franchise and PEG fees, and 3) that staff return to the Committee with clearly defined roles and responsibilities for oversight of tracking funds and communications.
Revision Date: 10/24/2016
The Office of the City Auditor recommends acceptance of the Disability Rates and Workers' Compensation Audit. At its meeting on June 14, 2016, the Policy and Services Committee approved and unanimously recommended that the City Council accept the report. The Policy and Services Committee minutes are included in this packet.
Revision Date: 10/17/2016
Fiscal Year 2015-2016
The Office of the City Auditor recommends acceptance of the Audit of Parking Funds. At its meeting on December 15, 2015, the Policy and Services Committee approved and unanimously recommended that the City Council accept the report. The Policy and Services Committee minutes are included in this packet.
Revision Date: 3/14/2016
The Office of the City Auditor recommends acceptance of Macias Gini & O’Connell’s Audit of the City of Palo Alto’s Financial Statements as of June 30, 2015 and Management Letter. At its meeting on November 17, 2015, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee minutes are included in this packet.
Revision Date: 1/25/2016
Fiscal Year 2014-2015
The objectives of this audit were to determine: the adequacy of and demand for local animal sheltering services and resident willingness to support service and facility improvements; whether Palo Alto effectively and efficiently planned and executed upgrades to the Palo Alto Animal Services (PAAS) facility to meet sheltering goals and objectives; and the appropriateness of PAAS’ organizational structure.
Revision Date: 6/8/2015
The Office of the City Auditor recommends acceptance of the Utility Meter Audit: Procurement, Inventory, and Retirement. At its meeting on March 10, 2015, the Policy and Services Committee approved and unanimously recommended the City Council accept the report. The Policy and Services Committee minutes are included in this packet, as well as an updated response matrix from the City Manager’s Office.
Revision Date: 4/27/2015
The Office of the City Auditor recommends acceptance of Macias Gini & O’Connell’s Audit of the City of Palo Alto’s Financial Statements as of June 30, 2014 and Management Letter. At its meeting on December 2, 2014, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee minutes are included in this packet.
Revision Date: 2/9/2015
The Office of the City Auditor recommends acceptance of the Triennial External Quality Control Review of the Office of the City Auditor. At its meeting on December 9, 2014, the Policy and Services Committee approved and unanimously recommended the City Council accept the report. The Policy and Services Committee minutes are included in this packet.
Revision Date: 1/26/2015
The Office of the City Auditor recommends acceptance of the Audit of the Solid Waste Program. At its meeting on June 3, 2014, the Finance Committee approved and unanimously recommended the City Council accept the report. The Finance Committee minutes are included in this packet.
Revision Date: 8/4/2014
Fiscal Year 2013-2014
The Office of the City Auditor recommends acceptance of the Inventory Management Audit. At its meeting on February 18, 2014, the Finance Committee approved and unanimously recommended the report to the City Council. The Finance Committee minutes are included in this packet.
Revision Date: 4/7/2014
The Office of the City Auditor recommends acceptance of Macias Gini & O'Connell's (MGO) Audit of the City of Palo Alto's Financial Statements as of June 30, 2013 and Management Letter. At its meeting on November 19, 2013, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee minutes are included in this packet.
Revision Date: 1/13/2014
The Office of the City Auditor recommends acceptance of the Audit of Contract Oversight: Trenching and the Installation of the Electric Substructure. At its meeting on November 5, 2013, the Finance Committee approved and unanimously recommended the report to the City Council. The Finance Committee minutes are included in this packet.
Revision Date: 12/16/2013
Fiscal Year 2012-2013
The Office of the City Auditor recommends acceptance of Macias Gini & O'Connell's (MGO) Audit of the City of Palo Alto's Financial Statements as of June 30, 2012 and Management Letter. At its meeting on December 4, 2012, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee action minutes are included in this packet.
Revision Date: 2/4/2013
The Office of the City Auditor recommends acceptance of the Utilities Reserves Audit. At its meeting on December 4, 2012, the Finance Committee approved and unanimously recommended the report to the City Council. The Finance Committee minutes are included in this packet.
Revision Date: 1/22/2013
The Office of the City Auditor recommends acceptance of the Audit of Employee Health Benefits Administration. At its meeting on December 11, 2012, the Policy and Services Committee approved and unanimously recommended the report to the City Council. The Policy and Services Committee minutes are included in this packet.
Revision Date: 1/22/2013
The Office of the City Auditor recommends acceptance of the Contract Oversight Audit. At its meeting on November 20, 2012, the Policy and Services Committee approved and unanimously recommended the report to the City Council. The Policy and Services Committee minutes are included in this packet.
Revision Date: 1/22/2013
Fiscal Year 2011-2012
The City Auditor's Office recommends acceptance of Macias Gini & O'Connell's (MGO) Audit of the City of Palo Alto's Financial Statements as of June 30, 2011 and Management Letter. At its meeting on December 14, 2011, the Finance Committee approved and unanimously recommended the City Council accept this report. The Finance Committee action minutes are included in this packet.
Revision Date: 2/21/2012
The City Auditor's Office recommends acceptance of the Audit of the Use of Library Bond Proceeds. At its meeting on December 6, 2011, the Finance Committee approved and recommended the report 3-1. The Finance Committee minutes are included in this packet.
Revision Date: 2/21/2012
This is an informational report and no action is required.
Revision Date: 12/6/2011
The City Auditor's Office recommends acceptance of the SAP Security Audit. At its meeting on October 18, 2011, the Finance Committee approved and unanimously recommended the City Council accept the SAP Security Audit. The Finance Committee minutes are included in this packet.
Revision Date: 12/5/2011
In accordance with the Fiscal Year (FY) 2011 Annual Audit Work Plan, the City Auditor's Office has completed an Audit of Purchasing Card Transactions, primarily administered through the Administrative Services Department (ASD). The audit contains two main findings with a total of six recommendations.
Revision Date: 11/7/2011
Fiscal Year 2010-2011
At its meeting on September 21, 2010 the Finance Committee unanimously recommended to the City Council acceptance of the Auditor's Office Audit of Citywide Cash Handling and Travel Expenses
Revision Date: 11/22/2010
This report was presented to Council as an attachment to the Auditor's Office Quarterly Report as of December 31, 2009
Revision Date: 2/15/2010
Fiscal Year 2009-2010
City Auditor's Office performed a surprise audit of the Police Investigative Fund (PIF) on April 7, 2009. The objective was to verify the accuracy of the reported cash on hand and assess controls over the use of the funds.
Revision Date: 9/21/2009
We estimate the City could save approximately $235,000 each year if it had more competitive rates for landline telephone service and telecommunication lines and improved oversight of its landline telephone service.
Revision Date: 9/8/2009
Fiscal Year 2008-2009
External Quality Control Review conducted in accordance with the guidelines of the National Association of Local Government Auditors for the period July 2005 - June 2008.
Revision Date: 4/21/2009
The objective of the audit was to assess the overall efficiency and cost effectiveness of ambulance billing and collections. We also reviewed the City’s contract for ambulance billing services and evaluated the contractor’s compliance with key contract terms.
Revision Date: 2/2/2009
Recommendation to accept the attached financial statements.
Revision Date: 12/16/2008
Fiscal Year 2007-2008
This audit was to assess the results of the increased capital spending, and the impact of increased capital spending on the City’s infrastructure including utilities
Revision Date: 3/4/2008
Review of Palo Alto's procedures for ascertaining and handling potential conflicts of interest among City employees, and to assess the need for an employee ethics policy
Revision Date: 1/23/2008
Recommendation to accept the attached financial statements.
Revision Date: 12/11/2007
This review is one in an ongoing series of reviews of the controls in the SAP system.
Revision Date: 9/18/2007
Audit of the Police Investigative Fund.
Revision Date: 7/11/2007
The objective of our review was to identify operating efficiencies.
Revision Date: 7/9/2007
Fiscal Year 2006-2007
Consideration of a Policy Concerning Communications with the City Council and City Council Candidates Concerning the Upcoming Bid for Refuse Hauling - the outcome of our review was three recommendations.
Revision Date: 6/26/2007
The objective of our review was to determine if PASCO is complying with the financial terms of its contract, if contract administration can be improved, and to identify potential recommendations for the upcoming request for proposals (RFP) process and contract award after the present contract expires in June 2009.
Revision Date: 4/10/2007
Recommendation to accept the attached financial statements.
Revision Date: 12/12/2006
The purpose of our audit was to determine the income/subsidy of class programs net of direct and indirect costs.
Revision Date: 10/17/2006
Fiscal Year 2005-2006
In accordance with the Police Investigative Fund (Fund) procedures, the City Auditor is required to conduct a surprise, external audit of the Fund each year.
Revision Date: 6/30/2006
Revision Date: 6/8/2006
Santa Clara County’s proposed business plan for the Palo Alto Airport (Airport) highlights Airport deficits and proposes to dramatically increase tie-down fees1 to recoup the outstanding advance used by the County to construct, maintain, and support the airport.
Revision Date: 6/6/2006
Palo Alto has a $28.7 million backlog in street repair, and less than half of residents rate street maintenance good or excellent. The annual street maintenance budget is inadequate to both address the backlog and stay current with recommended preventive maintenance. The backlog is extensive.
Revision Date: 3/21/2006
In a continuing effort to deliver the best possible policing services to the community, the Police Chief and City Manager requested that the City Auditor conduct a survey of individuals stopped by the Palo Alto Police Department.
Revision Date: 2/6/2006
The Parks Division of the Community Services Department maintains approximately 262 acres of parks, athletic fields, landscaping of City facilities, medians, parking lots and garages, utility substations and well sites. The purpose of our review was to assess the cost-effectiveness of parks maintenance.
Revision Date: 12/13/2005
Recommendation to accept the attached financial statements.
Revision Date: 12/13/2005
External Quality Control Review conducted in accordance with the guidelines of the National Association of Local Government Auditors for the period July 2001 - June 2005.
Revision Date: 10/20/2005
The Palo Alto Police Department conducts a periodic internal inventory/audit of its property and evidence rooms. The purpose of our audit was to independently assess the adequacy of the Police Department’s review.
Revision Date: 7/19/2005
Test results of SAP Accounts Payable (AP) indicate that AP data is generally reliable, and authorization roles are functioning. IT has improved system access controls, but since SAP audit trails are not available, and training for data retrievals are still evolving, the City will have to closely monitor transactions and continue to rely on manual processes and paper documents to ensure transactions are valid and payments are correct.
Revision Date: 7/19/2005
Fiscal Year 2004-2005
Workers' compensation represents a substantial cost for the City of Palo Alto. The objective of this audit was to identify opportunities to control claim costs in the face of rising medical costs.
Revision Date: 4/19/2005
The Office of the City Auditor identified several ways to improve controls to ensure effective use of contractors and best pricing, and to improve monitoring and accountability for contingency spending.
Revision Date: 3/15/2005
On November 15, 2004, the City Council heard presentations related to the Environmental Services Center (ESC), including a summary of the City Auditor’s Review of the Environmental Services Center Proposal.
Revision Date: 2/15/2005
Recommendation to accept the attached financial statements.
Revision Date: 12/14/2004
The purpose of this project was to independently review the assumptions and financial implications of the Environmental Services Center (ESC) proposal, and present that information to the City Council before additional monies were expended on the project.
Revision Date: 11/15/2004
Fiscal Year 2003-2004
The purpose of our review was to (1) conduct an independent review of General Fund and Internal Service Fund staffing changes and restructuring over the last two years, (2) assess the feasibility of additional reductions through attrition, (3) evaluate supervisory span of control, the ratio of managers to line staff, and the number of levels of management review, and (4) review the job duties of managers and supervisors with four or fewer direct reports.
Revision Date: 4/20/2004
Recommendation to accept the attached financial statements.
Revision Date: 12/16/2003
In accordance with the 2002-03 Audit Plan, we have audited overtime expenditures. The purpose of our review was to audit actual overtime usage, and identify opportunities to better control overtime expenditures.
Revision Date: 11/18/2003
Audit Of Development Review Process In accordance with the 2002-03 Audit Plan, we have audited the City’s Development Review Process to determine if development review (1) processes are effective and efficient, (2) actions are timely, responsive, and consistent and (3) processes can be improved.
Revision Date: 11/15/2003
Fiscal Year 2002-2003
Performance audit of the Planning Division code enforcement program's timeliness, responsiveness and consistency of enforcement.
Revision Date: 3/11/2003
Memorandum to the City Council Finance Committee following up on our April 2002 Study of Infrastructure Contract Processing Times.
Revision Date: 2/3/2003
Recommendation to accept the attached financial statements.
Revision Date: 12/17/2002
The purpose of a Long Range Financial Plan (LRFP) is to identify long-term opportunities, problems and strategies.
Revision Date: 12/3/2002
Performance audit of City of Palo Alto Utilities operations to determine the adequacy of risk management procedures, management oversight, and management reporting.
Revision Date: 7/3/2002
Fiscal Year 2001-2002
With millions of dollars of projects in the pipeline to address the City Council's Top 5 Priority on infrastructure, staff was concerned that the contracting process could impact the success of the infrastructure program.
Revision Date: 4/16/2002