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Thursday, April 21, 2016
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>> good morning and welcome
to
government audit and oversight
meeting of April 21, 2016.
>>supervisor aaron peskin: and joined
by
supervisor london breed: and we'll be
joined by >>supervisor norman yee:.
I would like to thank sf
govtv for
streaming us live.
>> Madam Clerk any announcements?
>> yes, please silence and electronic devices. >>supervisor aaron peskin: please
read items 1 and 2 together. >>
>>clerk: items 150672 home detention electronic monitoring program rules
and regulations and program
administrators evidence of financial responsibility.
>>supervisor aaron peskin: captain paulsen.
>> good morning.
My name is captain paulsen.
I have been asked to make a
presentation today with regards to electronic monitoring. The reason for today's presentation
is the california penal code requires that the board of supervisors review
and approve the data regarding electronic monitoring. Currently we
have made no changes to the electronic monitoring rules since in
the past 2 years. In addition, the contracting agency which provides electronic monitoring
service for the department is responsible for approving financial responsibility and that proof has
been included in the package.
A review of the electronic monitoring program by the san francisco
sheriff's department is this was
designed to be an alternative to
incarceration for low risk offenders. The participating electronic monitoring are reviewed by the court
and reviewed by the san francisco sheriff's department.
A program reviews each person for electronic monitoring reviewing their criminal history, current
charges and
the police report.
When we put a person on electronic monitoring we provide them a schedule of activities, which is
referred to as home detention because they are
required to be at their home. We develop inclusion and exclusion zone agenda depending on the crime.
For instance, if a person is accused
of shoplifting at a location, that is an exclusion zone.
They maybe required to be at their
residence for some time. The electronic monitoring is a provided as a tool of safety.
It also reduces the cost of
incarceration by providing a meaningful alternative to securing incarceration and allows the individual who is accused of the crime or who is serving a sentence
for the crime to maintain community
ties to and many times keep
a job, to go to programmatic activity and most important to be with their family
during the time that they are serving
either serving pretrial or time
assigned by a judge.
>> we use two different types of electronic monitoring which
is most
widely used as anklet with gps device to let us know where that person is
at all times.
The gps tracking device
transmits the signal actively which is picked up by
us and it is light and does not interfere with any activity that the person is involved in.
At times we add a beacon and that
amplifies a signal if a person is
living for example, in a basement, and improves the signal.
The second type of monitoring is monitoring of a person's alcohol level. We do that through 2 devices.
The first is a portable breathalyzer, a small device with a camera on it and we require the person participating to breathe into the the device, it takes their picture as
they breathe into the device and
tells us that person's blood alcohol level.
The other device we use is ankle monitoring that measures the blood
alcohol level by perspiration level and tells us whether or not that
person has consumed alcohol. So, in conclusion, we are presenting this information to the board to state that we require your approval
and authorization for the program. We have fundamentally not changed the
rules and regulations of the program and the monitoring agency, the
contract service provider has
provided proof of financial responsibility. >>supervisor aaron peskin:
thank you, captain. Just out of curiosity, how many individual on this program. >> on average 53 people per month on
the case load. We signed up 187
people in 2015. >> and in terms of what is in the
report referred to absent
without leave, awol. The leaders have to
report to you with how many awols?
>> we have been very successful. Last
year we had 34 people who in one way
or another did not comply on a major basis.
The advantage is we get reported to us in realtime.
The more significant fact is that 93%
of the people who complete the program, by our calculation and the
numbers we report to the mayor, 93%
do not recidivate within 12 months of completion of the program. >> batteries, what about dead batteries?
>> we get alerts when a person's
battery is dying. So when it goes below a certain percentage, we actually have the ability to buzz the person, which is send a person an alert to say it's time to recharge your battery.
>> thank you, supervisor
breed, any
questions for captain paulsen? >>supervisor london breed: is there
more funding needed to put
in to more women's programs. Based on the program it seems that
you have done a good job in putting as many individuals as many as possible.
It looks like there might be room to do more. I would like to have a clear understanding about some of the inmates that you have housed if there is a possibility to add more to this program?
>> for every single person considered for electronic monitoring we do a risk assessment for them. The court
is our partner in the risk assessment. when a court says, this person should be on electronic monitoring, we do our best to defer to the
court order about it. Currently, with regards to the people
who are currently incarcerated, we
can do more and we can and have
gotten as many people out as have
been presented to us. We are currently reviewing the case loads of people in the jail to see whether or not we can get even more people out. >> thank you.
>>supervisor aaron peskin: are there any members who would like to testify
to items 1 or 2? Seeing none, public
comment is closed. Could we excuse supervisor yee from these votes.
>>supervisor london breed: so moved.
>> that motion passes. Can
we send to
the full board with positive recommendations? >> so moved. >> we have general manager here who
has to go to his recreation and parks committee at 10:00. We wanted him here for a closed session litigation
item. I don't want to give the financial report a short trip. What I
was going to propose if it's acceptable to supervisor breed is that we take item 4 out of order which will require us to empty this room because that is a closed session litigation item.
If that is okay. We will take item
four4 out of order. Thank you for your cooperation. We'll come get you
as soon as we dispose with this item. You can call them all, but we'll go
back into closed session to address
them.
>> yes don't we call items
4, 5, 6 together. >>
>>clerk: item no. 4, a
settle of
lawsuit with lisa owen for $2250,000.
And item 5, settlement of
lawsuit for
ying zhang for $175,000 item
6, kai
yuan for 175. >>supervisor aaron peskin: thank you, we will convene in closed session. Are there any members of the public
who would like to testify on
items 4,
5, 6? Is there any additional public comment? Seeing none, public
comment is closed. We will
go into closed session.
That is without objection.
>>> >>
>>
>> this is that committee and it
gives us five tasks. We shall maintain a direct a separate line of communication between the board of supervisors and the city and county's independent auditor.
We immediate with the independent auditor and the auditor's financial statement as well as management and compliance. Recommend appropriate
action be taken by the board for recommendations contained in the
audit report and follow the
necessary
report is implemented.
Welcome, good morning. Mr. Rosen field.
>> good morning. That was a perfect introduction.
I will turn it to our auditors.
As you are aware our office each year discloses a financial report and working with the department and you
as the board of supervisors retain the audits and retain our work and
come back to you regarding our findings and the city's compliance to federal rules. That's what we are here for today. I
will turn it to the external
auditors
from
>>supervisor aaron peskin: I
understand we will not discuss this current fiscal year?
>> correct. We are covering last
year. We'll be back for the
board of supervisors regarding those. With your permission. We will bring the audit plans back to this
committee in a month or so when they are prepared. >> great.
We look forward to that.
On behalf of macias, gini
and o'connel.
Ms. Louie? Good morning.
Presenter: good morning, supervisors.
My name is annie louie from gini and
o'connel. I bring you the audit
results for fiscal year 14-15. First I would like to go over the
scope of the audit that is performed
by our firm. We cover the city's general financial statements
known as
the cafr. We report on the single
audits and the retirement system and
successor agency and the
redevelopment agency and the general
hospital and required communication. And current year assessment.
We did issue an unmodified opinion
which is a higher level of assurance
you can receive through the audit and the financial reporting as well as over compliance.
The second report which is the report
to the government audit and oversight commute is to authorize the
communication to the board regarding
communication on the audit.
With that, there are two types of required communications that we report to the board at the beginning of the audit.
So we presented in the fiscal year
14-15 audit service plan on our responsibility under U.S. Generally accepted editing standards and
planned scope and timing of the
audit. There were no changes on the planned scope or the timing of the audit. In the report there are a
series of items that under government audit and oversight we have to report to you.
These are typical items. Without
going into too much detail. The one I
would like to highlight of qualitative aspects.
We pointed to the audit themselves and the estimates used and how they were derived. The audit you receive in the
financial statement is the implementation of gatsby 68 which is
the new standard on pension benefits are being reported in the financial statement.
That is one of the biggest
changes
with that I'm going into the audit
and recommendations. The
first one relates to information technology governance.
This is from information we have from
the previous audit and policies and procedures related to government it for the city as a whole. The reason
why this is still in continuing comment because we believe the
condition has not been fully corrected mainly due to the turnover
at the department of technology. The second comment that we have
relates to the year-end closing process. During the year-end closing process
each department has to make estimates
ora cruel of their liabilities. We found that certain departments did
not have their own fiscal staff.
They rely on the agency to record
those transactions and the communication can be improved to account for the transaction
in that period.
>>supervisor aaron peskin: Ms. Louis,
give me an example of those?
>> I cannot remember off the
top of
my head.
Let me go back into detail.
>> good morning, deputy county administrator.
These are facilities in treasure island.
There are three other departments that rely on the department.
>> there is ti and other facilities
use gsa? >> right. Conventional facilities is their management agreement so they have
their own internal financial staff
and review the material and statements. Treasure island, completely relies on gsa for all of their
accounting back
in process and po's. >> treasure island was a subdivision
of the state of california until recently, right? It was not a city
agency per say, it was kind
of a second redevelopment agency until --
>> it did have a separate status,
yes, now it falls under the umbrella
of the city administrators office under the gsa.
With that we fall under the gsa and accountable for all the finances. >> thank you.
>> if you would like the details of the transactions that we have found
and corrected is on page 10
of the report.
>> so moving on, there are two informational type comments. These are not deficiencies in the financial reporting process but we believe have significant changes or impact on the financial statement or
for the city as a whole. The
first
item related to the uniform guidance for federal awards. What happened in
the office of management and budget issued new requirements for all
federal awards and it became
effective December 26, 2016. , --
2014. That will impact how the city
manages oversee any funding received
including cost procurement monitoring. This will be the significant change in the effecting of awards. >> the second comment relates to the
new accounting standards issued for
other employment benefits o opeb for short.
One of the most significant change is the presentation of an opeb liability on the financial statements. So you will have basically it will hit your bottom line. Currently the information is measure differently and also only disclosed in the note
for the financial statement.
The implementation year is 15-17-18 for the city.
Going forward the findings for the
year for compliance awards.
The first one related to the procurement for the port security grant program. That program was administered by the
port of san francisco. During our test of procurement procedures we found that proper documentation was not maintained for one of the contracts. We found the department to be in compliance based on other types
of testing, but we believe that document retention is important. In terms of management
response, you
will see the response in the report but it was addressed August 2015 to address the issue. >>supervisor aaron peskin: what's the difference between a significant deficiency and material deficiency? >> okay. There are basically three types of
deficiencies you can have in internal control and the most familiar is the material witness which will be a
likely chance to lead to the material of the financial statement or material non-compliance in terms of federal awards.
That will be a material weakness in control. That doesn't mean you have
to have a material misstatement or
non-compliance, but one would be such a finding. The next level is is the deficiency in the process that we warrant to
management as well as the board. The lowest level would be a control of deficiency that May not raise to the level of significant
deficiency. >> thank you.
>> the second and last
finding of
this audit is the program.
As part of the claiming process reimbursement for the program will be to do time studies for the workers time. We
found that during the time study
process sick leave and vacations were not classified properly and we have the information for the department to visit that process and corrected.
In terms of a management response, the full response is in the report itself, but they are communicating. We are emphasizing the proper time of
the hours and looking into enhancing the process. >> the last section of this presentation I would like to go over the prior year of the recommendations
we have for the single audit. We have three findings in the slide
and they were corrected by year 14-15. With that, I will take any questions you May have. >>supervisor aaron peskin: colleagues, any questions from Ms. Louie? >> no.
Can we hear from kpmg? >> good morning,
supervisors, my name
is lisa avis with kpmg.
I will here to discuss the three
departments we audit. The san francisco international airport which
is included the single audit.
We audit mta, and we audit hsf and
puc for water, wastewater, hetch hetchy water.
The financial statements resulted in an unmodified opinion. That's the clean bill of health. Basically the financial statements did properly state their financial health at the
end of the year. Single audit we had no findings. All received unmodified opinions.
When we were here last year and frd audit results we did report a material witness for the san francisco international airport in the process of capitalizing their fixed assets.
There was an approximate $45 million
audit adjustment to be booked and
there was a material issue. Happy to report it was reminded in
that t -- reimmediated that finding and took
the appropriate steps to remediate that finding. They have a clean bill of health.
No reports this year. Management did
well in that result and no management
issues to report in that
timeline. Any questions? >>supervisor aaron peskin:
colleagues? Thank you, Ms. Avis.
And now we May hear from the a fore mentioned significant deficiencies.
Maybe we start with someone from the
department of technology.
I don't see Mr. -- here.
>> I'm the new securities information officer. Boya. We concur with the findings.
This is something that's been known for a while and we are working on solutions for that.
There is an established architectural
policy review board in place which is currently working on five separate
policies. The one addressing this
main issue around privilege access to management policy. I cochair with my colleague out at the airport, tom borden. We are working on that
standard now to be able to codify a centralized password identity
management program for the city and county. >> hopefully you will stay here for a
while so they don't find this as a turnover.
>> I hope so. >> controller?
>> briefly, I wanted to add that
joe's presence in itself and
description of his job is one that is repeated.
Joe is filling the job that is the scope for security citywide.
As we had a chief security officer responsible for this, joe's scope is
larger. So we are looking for and
pushing through this finding.
>> great, we would love to
see it go
away in its currently fiscal year.
>> if you want to reiterate what gsa
is with communicating with treasure island and convention facilities and
anybody else about this significant issue is stressing.
>> thank you. Deputy city administrator. We've already started implementation and recommendation in terms of increasing the level of
communications with both of
thoss convention facilities
as we have instituted monthly meetings with our budget and finance staff with the staff members for the organizations. We've also increased regular meetings with the controllers office and we are working with the
controllers office to establish the year-end close timeline working with the departments to identify any of
those similar kind of issues early in the process. >> thank you. Any questions?
>> who do we have here on behalf of the port of san francisco.
Good morning, Mr. Wu.
>> good morning, john wu, office of port of san francisco. As to port security grant program, I
guess the good news is there are no
cost and our contractor was in fact not suspended or debarked. As to the procedural matter, this
came up as part of a monitoring
report as to compliance and we turned
around immediately in August 2015, documented new procedures to make
sure that we followed the steps of
documenting a review for obtaining certification for regulation that we document and report that procedure.
That is now clear in our internal
procedures and we'll be in compliance
from this point on. >> excellent. Thank you, Mr. Wu.
Any questions for Mr. Wu? Seeing
none. Who do we have here from
juvenile probation?
>> good morning, very new to the scene. Just a month and 2 weeks. >> tell us your name.
>> my name is eric gribde.
>> I understand there are changes to rectify our recording mechanism. so I think it's three fold at this point.
So there is retraining of probation supervisors. Also the second piece is changing the procedures. I think our procedures are to be enhanced further and I think for me
the key to all this is open up the channel of communication between all
stakeholders. So I think with all
three being implemented, I won't be
repeating this and I won't be in front of the members.
>> it's all good and this is the
lowest level of deficiencies. We wish
you all the best in remediating that problem and the coming
fiscal year. Mr. Rosenfeld, is there anything you would like to snad
>> we appreciate the work and appreciate the process between the
audit committee and we are pleased
they are relieved the material
deficiency and we will work with the departments today to be sure that is not repeated next year.
>> not bad for a project of these
millions of dollars. Thank you, Ms.
Avis, supervisor.
>>supervisor norman yee: I was going
to say for the things of our budget. That is a positive mark for the city. >> are there any members of the
public who would like to
testify on the consolidated annual financial report.
Public speaker: hello.
It's great to see you back here at
city hall. It is a time to have new balance. What I'm here for seems that this was the oversight committee.
Here I'm here celebrating years of
working as an advocate in the western edition.
As I'm here before queen bee.
None of this is reflected on her
because we were both little kids. I
was much older than her. I'm
requesting as the fillmore corridor ambassador.
It was granted back when ambassador was here. The planning commission,
the to the western edition.
Currrts, the western edition to fillmore and redevelopment had nothing to do with it. No departments. Here all of a
sudden there is bankruptcies
and the city owes the state millions of
dollars. I want an audit to show corruption, Miss Guidance and all the things that I don't have time to say.
I will do it respectively. I
know I pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. >> >> >>
>> closed session >>
Closed session: >>
>> items 7-12 >>
>>> >>>
>> I'm thinking of sending them
around again when they usually we
have issues -- for the full board. Thinking about sending them again to the full board.
A month, 3 months later. >> >>supervisor aaron peskin:
we will
reconvene in open session. Deputy
city attorney gibner.
city attorney: 4, 5, 6, 8, 9, 11 and
12 to the board for full
recommendation and items 7 to be
tabled and 10 to the full board. >>supervisor aaron peskin: we need a
motion not to disclose, second by
supervisor yee without objection. Seeing no more business before this body, we are adjourned.
[Meeting is adjourned]