November 9, 2004

SUBJECT: Transmittal of Performance Audit Report of FY 2001/2002 Neighborhood Parks and Open Space Management Program


REPORT IN BRIEF

This report presents the Neighborhood Parks and Open Space Management program performance audit report to Council. In summary, the vast majority of the Program and SDP measures were calculated accurately. Auditors found that staff tracking of program results was extremely efficient and results were well documented. Some reporting methodologies need slight revisions and a few measures need to be revised. In addition, the products reported under most activities are based on the Parks inventory rather than on a count of the number of times each item is maintained. This methodology differs from that in use by most other programs.

BACKGROUND

In December 2003, Council approved the FY 2003/2004 Performance Audit Work Plan. The plan presented a schedule for issuance of completed audit reports to the Council. That schedule included the audit report for the FY 2001/2002 Neighborhood Parks and Open Space Management program. This audit report is attachment A of this report. Following completion of the audit, it was sent to the Office of the City Manager.

With the issuance of this audit report, staff has put in place an improved process for indicating the disposition of audit recommendations. The disposition is noted in a table at the back of the audit report.

Following Council's receipt of the audit report, the Department of Parks and Recreation will have 60 days to prepare a plan for implementation of the recommendations. Upon approval of the plan by the City Manager, audit staff will monitor the department's implementation progress on a quarterly basis.

EXISTING POLICY

This report is issued to the Council and the public in accordance with the City of Sunnyvale Audit Charter and Workflow Process and the FY 2003/2004 Performance Audit Work Plan, as adopted in December 2003.

The purpose of the audit was to review the program results as reported by the Neighborhood Parks and Open Space Management program staff for fiscal 2001/2002. Below is a summary of the main findings:

• Staff has adequately documented the FY 2001/2002 year-end results reported for this program.

• FY 2001/2002 year-end results were reported correctly and accurately for the Program and SDP measures.
• Some of the reporting methodologies need slight revision so that the number reported reflects the wording of the measure.
• Program Measure #1 and its parts (SDP 26501 #1, SDP 26502 #1, SDP 26503 #1), which gauge efforts to minimize hazards in parks, should be revised so that it gauges a meaningful outcome.

• The results reported for most of the activity measures are a reflection of the total number of items in the Neighborhood Parks and Open Space inventory rather than the specific number of times maintenance is performed.

The audit report provides an array of recommendations related to procedures, documentation of results, revisions of calculation methods, and revisions to performance measures to enhance the accuracy of future results.

Costs associated with preparation of the audit report were included in the operating budget.

The audit of the Neighborhood Parks and Open Space Management Program was completed with the generous assistance of Parks staff. The vast majority of the Program and SDP measures were calculated accurately. Auditors found that staff tracking of program results was extremely efficient and results were well documented.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.

1. Receive the audit report and concur with management’s acceptance of recommendations.

2. Receive the audit report and direct staff to hold a study session to discuss the audit findings and recommendations.

3. Receive the audit report and give alternative direction regarding specific recommendations.

Staff recommends alternative 1.

Prepared by:

Cheryl Solov, Internal Auditor

Reviewed by:

Mary J. Bradley, Director of Finance

Approved by:

Amy Chan, City Manager

A. Program Audit Results: Neighborhood Parks and Open Space Management Program (.pdf format - 4.4 mb)