SUBJECT: Transmittal of Performance Audit Report of FY 2001/2002 Fire Services Program
REPORT IN BRIEF
This report presents the Fire Services program performance audit report to Council. In summary, the audit found that documentation was either inadequate or in conflict with the reported result, written procedures were poorly designed, outdated or non-existent, some measures were poorly related to the central program efforts, and in some cases data was improperly used or calculated incorrectly.
BACKGROUND
Fieldwork for the audit of the FY 2001/2002 Fire Services program commenced at the end of FY 2002/2003 and was completed in FY 2003/2004. A draft audit report was completed utilizing FY 2001/2002 program results as the most recent available. The report underwent revisions and was released in June, 2004 for departmental review. At that time, the department was restructuring, there was no permanent director, and there was turnover in the department management. The department issued its response to the audit in December, 2004. The disposition of all Fire Services recommendations was finalized in February, 2005. The audit report is attachment A of this report.
Council requested a study session to review the report. The study session was held on February 15, 2005. Following the study session, the audit report is being submitted to City Council for receipt and acceptance or alternative direction.
Following Council’s receipt of the audit report, the Department of Public Safety will have 60 days to prepare a plan for implementation of the recommendations. Audit staff will monitor the department’s implementation progress on a quarterly basis and a follow-up audit is scheduled in fiscal year 2005/06.
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 Fire Services program staff for FY 2001/2002. Below is a summary of the main findings:
• The audit examined 43 unique, active, measures and activities. Some type of exception was identified in 79% of the measures and activities reviewed.
• To a significant degree, support documentation was either inadequate or in conflict with the reported results.
• To a significant degree, written procedures (SOPs) were poorly designed, outdated, or non-existent.
• To a lesser degree, calculation errors resulted in inaccurate reporting of results.
• Some measures were poorly related to the central program effort.
• In some cases, data was inappropriately used, usually by being improperly included or excluded from calculations.
• There was some evidence of conflict between the underlying data and the working of the measures or names of the products.
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:
Mary J. Bradley
Director of Finance
Approved by:
Amy Chan
City Manager
Attachments
1. Program Audit Results: Fire Services (.pdf format - 3.4mb)