January 25, 2005

SUBJECT: Transmittal of Performance Audit Report of FY 2001/2002 Police Services Program

REPORT IN BRIEF
This report presents the Police Services program performance audit report to Council. In summary, the audit found that work hours were charged to incorrect accounts, that many reported products were inaccurate or unsubstantiated, that many outcome measures were poorly designed and that written procedures frequently were inadequate.

BACKGROUND
Fieldwork for the audit of the FY 2001/2002 Police Services program commenced in FY 2002/2003 and was completed in the spring of 2003. A draft audit report was completed on June 19, 2003. At the time the draft audit report was completed, FY 2001/2002 program results were the most recent available. The report underwent revisions by audit staff and was completed in early December, 2003. At that time, the department was restructuring, there was no permanent director, and there was turnover in the department management. The audit report was issued to the department in April, 2004. The department issued its response to the audit on May 28, 2004. The report was formatted, printed and released in published form to the City Manager on July 2, 2004. Subsequently, staff refined the process for developing the disposition of audit recommendations in those instances when the department disagrees with a recommendation. The disposition of all Police Services recommendations was finalized in December, 2004 and the report was re-printed to include this new information. The audit report is attachment A of this report.

The next step in the process is to send the audit to the City Council. The Council has the choice of receiving and filing the report, requesting a study session to review the report, or receiving the report and giving alternative direction regarding specific recommendations.

Following Council’s receipt or review of the audit report, the Department of Public Safety 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.

DISCUSSION
The purpose of the audit was to review the program results as reported by the Police Services program staff for FY 2001/2002. Below is a summary of the main findings:

• To a significant degree, Patrol work hours and costs were charged to incorrect activities.

• To a significant degree, reported products were inaccurate or could not be substantiated due to lack of documentation.

• Many of the program’s outcome measures were poorly designed.

• The majority of written procedures for calculating reportable results and products were poorly written and provided inadequate assistance to staff.

• In an effort to improve reporting, this program has replaced the City’s timecard system as a mechanism for tracking patrol officers’ time.

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

Conclusion
The audit report provides an array of recommendations, primarily related to improved procedures, documentation and performance measures, to enhance the accuracy of future results. The department has indicated that numerous recommendations were implemented in the course of the department’s recent restructure. In accordance with the audit work plan, audit staff will complete a follow-up audit of the program after a year of operation on the new structure.

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.

ALTERNATIVES

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.

RECOMMENDATION
Staff recommends alternative #1.

Prepared by:

Cheryl Solov
Internal Audit Manager

Reviewed by:

Mary J. Bradley
Director of Finance

Approved by:

Amy Chan
City Manager

Attachments
A. Program Audit Results: Police Services (.pdf format - 7.3MB)