Report Section

One-Time

Resources

Annual

Savings

1

Organization

$122,607

2

Financial Administration

3

System Planning

4

Internal Control Reporting and Financial Auditor Independence

5

Budgetary Controls

$177,000

6

Fund Maintenance (1)

2,193,114

7

Cash Revolving Funds

(2)

8

Cost Allocation Plan

Undetermined (3)

9

Multi-Tiered Cost Plans

Undetermined (3)

10

Departmental Indirect Cost Rates

11

Cost-Based Fees for Service

880,000

12

Monitoring Claims for State-Mandated Cost Reimbursements

95,000

13

Audits Division

Total Savings

$2,370,114

$1,097,607

ALL EXCEPTION CATEGORIES

EXCEPTIONS RELATED TO FINANCIAL INTEGRITY

(1)

CY 2001 TOTAL

CY 2003 TOTAL

CY 2001 TOTAL

CY 2003 TOTAL

Documents to

Documents to

%

Documents to

Documents to

%

Findings

Count

Exceptions

Count

Exceptions

?

Count

Exceptions

Count

Exceptions

?

1

Non-12B/HRC compliant vendors or HRC forms not on file

182

30.05

146

22.75

D

-24.3%

2

Same initiator/receiver and approver

145

37.72

18

184.56

I

389.2%

145

37.72

18

184.56

I

389.2%

3

Incorrect keying or lack of invoice/deposit/vendor info/dates

148

36.96

110

30.20

D

-18.3%

4

Incorrect input (doc. type/subobject/comm. Code/remit add)

101

54.16

53

62.68

I

15.7%

5

Missing/misfiled/insufficient supporting/original documentation

91

60.11

19

174.84

I

190.9%

6

Untimely/inappropriate deposit and recording of cash deposits

77

71.04

34

97.71

I

37.5%

77

71.04

34

97.71

I

37.5%

7

Paid from copy invoices without certification

61

89.67

41

81.02

D

-9.6%

61

89.67

41

81.02

D

-9.6%

8

Non-current business tax certificate or not on file

61

89.67

70

47.46

D

-47.1%

9

Late posting/payment of expenses

60

91.17

44

75.50

D

-17.2%

60

91.17

44

75.50

D

-17.2%

10

Payment or authorization prior to certification or contract

53

103.21

87

38.18

D

-63.0%

53

103.21

87

38.18

D

-63.0%

11

No packing slip/receiving report/documentation/authorization

41

133.41

39

85.18

D

-36.2%

41

133.41

39

85.18

D

-36.2%

12

Inappropriate use of one-time vendors

33

165.76

16

207.63

I

25.3%

33

165.76

16

207.63

I

25.3%

13

No purchase order/contract/encumbrance/invoice

24

227.92

32

103.81

D

-54.5%

24

227.92

32

103.81

D

-54.5%

14

Copy of departmental blanket/PO missing, blanket-related issues

23

237.83

1

3322.00

I

1296.8%

15

Notepad & document ref field not used appropriately

15

364.67

19

174.84

D

-52.1%

16

Discount not taken

14

390.71

14

237.29

D

-39.3%

14

390.71

14

237.29

D

-39.3%

17

Vendor's insurance not verified/valid for contract payment

13

420.77

21

158.19

D

-62.4%

18

Unbudgeted or made by unauthorized personnel

12

455.83

-

#DIV/0!

I

12

455.83

-

#DIV/0!

I

19

Authorization missing/incomplete

10

547.00

38

87.42

D

-84.0%

10

547.00

38

87.42

D

-84.0%

20

Inappropriate use of or non-compliant to Prop Q/3 bids/quotation

8

683.75

27

123.04

D

-82.0%

8

683.75

27

123.04

D

-82.0%

21

Paid $ not match purchase order/contract/encumb/invoice

6

911.67

2

1661.00

I

82.2%

6

911.67

2

1661.00

I

82.2%

Total Exceptions

1,178

4.64

831

4.00

D

-13.9%

544

10.06

392

8.47

D

-15.7%

Test Population

5,470

1.00

3,322

1.00

5,470

1.00

3,322

1.00

Department

Total Activity

Average Transaction Amount

Average Monthly Amount

Current Authorized Amount

Recommended Authorization

Recommended Reduction

Airport

15,045

327

1,254

10,000

1,500

8,500

Animal Care and Control

1,105

1,105

92

2,000

100

1,900

Adult Probation

173

58

14

300

50

250

Arts Commission

245

245

20

500

50

450

Assessor

8,620

718

718

1,000

750

250

Consumer Assurance

775

258

65

800

100

700

Board of Supervisors

203

203

17

500

50

450

Medical Examiner

1,038

130

87

500

150

350

Controller

1,164

83

97

200

100

100

Planning

383

128

32

200

50

150

District Attorney

200

200

17

200

50

150

Ethics Commission

279

70

23

100

50

50

Fire Department

1,999

1,999

167

3,000

200

2,800

Community Health

40,517

614

3,376

43,000

5,000

38,000

SFGH

9,952

905

829

10,000

5,000

5,000

Laguna Honda

518

518

43

5,000

200

4,800

Library

1,731

247

144

5,000

250

4,750

Permit Appeals

241

80

20

150

50

100

Public Defender

519

130

43

200

50

150

Port

6,321

253

527

5,000

500

4,500

MTA (2 funds)

13,426

177

1,119

102,000

3,000

99,000

DPW

6,724

280

560

10,000

1,000

9,000

Rent Board

441

73

37

100

50

50

Elections

465,000

155,000

38,750

500

50

450

Recreation and Parks

886

886

74

5,000

100

4,900

Retirement

2,399

200

200

500

200

300

Sheriff (2 funds)

41,458

222

3,455

13,000

5,500

7,500

Superior Court

212

106

18

5,000

50

4,950

Human Services

2,818,283

6,791

234,857

450,000

250,000

200,000

DTIS

6,046

1,008

504

6,000

500

5,500

Treasurer/Tax Collector

1,232

411

103

4,500

150

4,350

PUC

13,633

505

1,136

20,000

1,500

18,500

Hetch Hetchy

454

113

38

10,000

50

9,950

Water

5,507

306

459

20,000

1,000

19,000

War Memorial

3,150

787

262

1,000

350

650

Totals

735,250

277,750

457,500

Mandated Audits

Frequency

Code

Section

Civil Grand Jury Implementation Status: Report to BOS on implementation of recommendations that pertain to fiscal matters considered at a public hearing

Annual

Administrative

2.10

Performance Audits of Boards, commissions, officers, and departments: audit operations to evaluate effectiveness and efficiency as needed.

As needed

Administrative

2A.20

Financial Audits: Audit accounts of any officer or department as requested by Mayor, BOS, or any board or commission for its own department

As needed

Administrative

2A.20

Fund Disbursement: Audit accounts of all boards, officers, and employees of SF who are charged with custody, collection, or disbursement of funds. Audit all accounts of money that go to Treasurer; frequency determined by CA state law. (This mandate is performed in conjunction with post-audits by the Accounting Division.)

As needed

Administrative

2A.20, 10.6, 3.03 Charter

Establish a Performance and Efficiency Audit Office within the Controller's Office to identify inefficient operations and functions of departments, agencies, boards, and commissions of the City and County of SF that should be eliminated. Plan should include an evaluation of cost-effectiveness of expenditures, utilization of employees and contractual services, consolidation of overlapping activities and functions, promotion of interdepartmental information sharing, cost-cutting recommendations, etc. Controller establishes schedule for recommendations and reports plan execution to BOS.

As needed

Administrative

2.92

Fee Refunds: Audit and approve or disapprove claims for refunds of fees/erroneously collected money. (This mandate is performed by the Claims Division.)

As needed

Administrative

10.43

Concessions/Leases under which City is Lessor: audit departments to ensure that they are adequately managing their leases for city-owned property where rent is $100K or more.

As needed

Administrative

10.6-2

Treasurer: Audit Treasurer.

Quarterly

Administrative

10.6-3

Revolving Funds: administer, monitor use and authorize exceptions to Cash Revolving Funds.

As needed

Administrative

10.100, 10.125

Franchise Compliance: file report with Board analyzing those owing Franchise fees comply with audit, establish payment requirements

Biannual

Administrative

11.44

Mandated Audits

Frequency

Code

Section

MBE/WBE Utilization: In cooperation with Director, conduct random audits of prime contracts (10% of joint ventures granted bid discounts) in order to insure compliance with MBE/WBE ordinance.

Annual

Administrative

12.D.A.6

Political Activity: Audit annually at least 10 persons/entities that enter into contracts or agreements with city to ensure that public funds are not used for political activity; promulgate rules and regulations for implementation of ordinance, including penalties for breaching agreements.

Annual

Administrative

12G.2-4

Retirement System: Audit Retirement System. (Retirement contracts with an independent auditing firm for Retirement System audits.)

Annual

Administrative

16.41

Services: Evaluate provision of in-kind aid for general assistance, personal assisted employment services, cash assistance (Medi-Cal), SIPP, aid to homeless to determine program effectiveness and cost efficiency

Every 3 years

Administrative

20.60.13, 20.95, 20.126, 20.227, Appendix 63

Supervisorial Election Campaigns: Assist Ethics Commission and audit supervisorial election campaigns; disburse public financing accordingly. (The Ethics Commission performs supervisorial election campaign audits.)

As needed

Administrative

Appendix 52

Cultural Centers: Perform a financial review of all cultural centers every four years supported through the Arts Commission.

Every 4 years

Business & Tax

515.01

Public Utilities Commission Consulting Contract: Conduct a review/audit of Consultant's cost and performance.

Every 6 months

Contract

Contract

Charitable Organizations: audit for accuracy and completeness 3 randomly selected financial statements submitted by charitable organizations each calendar year.

Annual

Police

660.4