NOV 18 2024 By: T. Cutts, Deputy Sandag: BE Audit YOU CAN BE

R1

Review OIPA staffing recommendations and collaborate with the Audit Committee to provide additional qualified staff.

R2

Revaluate SANDAG's reporting structure and consider having the General Counsel report directly to the Board of Directors. Continue pursuing - and make a priority - access to independent outside counsel for the

R3

OIPA and the Audit Committee.

R4

Make the Corrective Action Report easier to access on the SANDAG website.

R5

Provide implementation target dates or metrics that track implementation progress on a scheduled basis (e.g., monthly or quarterly).

R6

Create a system that periodically reviews the Corrective Action Report recommendation implementation status. ¹ CALCOG is the California Association of Councils of Governments. San Diego Association of Governments (SANDAG): California Association of Councils of Governments (calcog.org) ² SANDAG. Program Budget. Accessed April 1, 2024. https://www.sandag.org/funding/budget ³ CA Pub Util Code 132005 California Public Utilities Code Section 132005 ⁴ Legislative Analyst's Office. SANDAG: An Assessment of Its Role in the San Diego Region (March 2006). https://lao.ca.gov/2006/sandag/sandag 033006.htm#:~:text=While%20the%20reasons%20are%20varied.perceive d%20as%20having%20highly%20competent ⁵ SANDAG. "TransNet Fact Sheet." (September 2008). https://www.epw.senate.gov/public/ cache/files/d/2/d2354df2-634e-4341-ac25- 08ed4d9b1646/01AFD79733D77F24A71FEF9DAFCCB056.gallegosattachment2.pdf ⁶ County of San Diego. "A Resolution Adopting The County of San Diego's 2025 TransNet Local Street Improvement Program of Projects for Fiscal Years 2024-25 Through 2028-29 And Related CEQA Exemption." (April 10, 2024). https://bosagenda.sandiegocounty.gov/cobservice/cosd/cob/content?id=0901127e810a0399#:~:text=In%201987% 2C%20San%20Diego%20region.safety%2C%20and%20improve%20air%20quality ⁷ SANDAG. TransNet Extension & Ordinance. (April 15, 2004). https://www.sandag.org/- /media/SANDAG/Documents/PDF/funding/transnet/transnet-extension-ordinance-and-expenditure-plan.pdf ⁸ Ballotpedia. San Diego County, California, Transportation and Environment Sales Tax, Measure A. (November 2016). https://ballotpedia.org/San Diego County, California, Transportation and Environment Sales Tax, Measure A (November 2016)#cite ref-analysis 3-0 ⁹ Keats, Andrew. 'With Measure A, SANDAG Is Counting on San Diegans to Spend Like They've Never Spent Before." Voice of San Diego. (October 24, 2016). https://voiceofsandiego.org/2016/10/24/with-measure-a- sandag-is-counting-on-san-diegans-to-spend-like-theyve-never-spent-before/ ¹⁰ "Findings reveal SANDAG misled voters over Measure A." CBS8.com. (August 4, 2017). https://www.cbs8.com/article/news/findings-reveal-sandag-misled-voters-over-measure-a/509-3677c1f8-9c08- 4062-b9d1-b48c9beb718d ¹¹ Keatts, Andrew. "SANDAG's Investigation Might Not Investigate Several Major Issues." Voice of San Diego. (April 19, 2017). https://voiceofsandiego.org/2017/04/19/three-big-questions-sandags-investigation-might-not-investigate/. ¹² Tetlow, Barrett. "Measure A lost. Here's what SANDAG opponents want us to do now." San Diego Union- Tribune. (November 18, 2016). https://www.sandiegouniontribune.com/opinion/commentary/sd-utbg-measurea- defeat-tetlow-20161118-story.html ¹³ California State Legislature. Assembly Bill 805. (August 17, 2012). https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB805 ¹⁴ SANDAG Office of the Independent Performance Auditor. Reports and Press Releases. Accessed April 1, 2024. https://www.sandag.org/about/office-of-the-independent-performance-auditor/reports-and-press-releases ¹⁵ Bowman, Jennifer. "SANDAG improperly used purchase cards, internal auditors find." Inewsource.org. (March 11, 2022). https://inewsource.org/2022/03/11/sandag-purchase-cards/ ¹⁶ Bowman, Jennifer. "Internal auditor says SANDAG leaders 'hindered' latest contracts review." Inewsource.org. (May 8, 2023). https://inewsource.org/2023/05/08/sandag-contracts-audit-management-hindered-investigation/ ¹⁷ Libby, Sara. A Reader's Guide to the SANDAG Scandal. Voice of San Diego. (February 20, 2017). https://voiceofsandiego.org/2017/02/20/a-readers-guide-to-the-sandag-scandal/ ¹⁸ McDonald, Jeff. "'Credibility is on the line': SANDAG struggles to digest and respond to failed toll system and wrongful termination suit." San Diego Union-Tribune. (Dec. 8, 2023). https://www.sandiegouniontribune.com/news/watchdog/story/2023-12-08/credibility-is-on-the-line-sandag- struggles-to-digest-respond-to-failed-tolling-system-wrongful-termination-lawsuit ¹⁹ Khoshmashrab, Mary. SANDAG Office of the Independent Performance Auditor. Annual Audit Plan For the period of July 1, 2023, to June 30, 2024, (June 2023), https://www.sandag.org/- /media/SANDAG/Documents/PDF/about/office-of-the-independent-performance-auditor/reports-and- documents/FY23-24-annual-audit-plan.pdf ²⁰ SANDAG Board of Directors Meeting, March 27, 2020. https://www.youtube.com/watch?v=5aytCn2psXo 21 Ibid. ²⁷ SANDAG Audit Committee meeting 2 February 2024. 4ac66fc0-826f-11ee-852f-0050569183fa-b81545ca-14e1- 41f7-b76a-c6f46d6dca21-1706730399.pdf (d3n9v02raazwpg.cloudfront.net) ²³ Mason Transit Authority Organizational Chart. (2014). Microsoft Word - 2014-2020 Narratives (masontransit.org) ²⁴ US Government Accountability Office. GAO Yellowbook. "Conducting The Engagement." Accessed April 1, 2024. https://gaoinnovations.gov/yellowbook/2024/conducting-the-engagement.html ²⁵ SANDAG Audit Committee Meeting, June 9, 2023. https://www.youtube.com/watch?v=-GBLXdxFTv0 ²⁶ SANDAG Audit Committee Meeting, December 8, 2023. https://www.youtube.com/watch?v=pGlLDzp1EnY ²⁷ SANDAG Office of the Independent Performance Auditor. Internal Audit Reports Issued Ending FY 2020. (June 30, 2020). https://www.sandag.org/-/media/SANDAG/Documents/PDF/about/office-of-the-independent- performance-auditor/reports-and-documents/FY20-annual-report-audits-recommendation-corrective-action- implementations.pdf ²⁸ SANDAG Office of the Independent Performance Auditor. Reports and Press Releases. Accessed April 1, 2024. https://www.sandag.org/about/office-of-the-independent-performance-auditor/reports-and-press-releases ²⁹ Copy of 1st Quarter FY 2020-21 External Audit Report - Audit Committee (V6).xlsx (sandag.org) 30 SANDAG Year-End Audit External/Internal Reports. Fiscal Year Ending 2021-Five Prior Year Audit Recommendations and Corrective Action Plans-External/Internal Reports. (June 30, 2021). https://www.sandag.org/-/media/SANDAG/Documents/PDF/about/office-of-the-independent-performance- auditor/reports-and-documents/FY21-summary-status-audits-corrective-action-plan.pdf 31 SANDAG Year-End Audit External/Internal Reports, SANDAG Fiscal Year Ending 2023-Five Prior Year Audit Recommendations and Corrective Action Plans-External/Internal Reports. (June 30, 2023). https://www.sandag.org/-/media/SANDAG/Documents/PDF/about/office-of-the-independent-performance- auditor/reports-and-documents/FY23-OIPA-corrective-action-report-june-30-2023.pdf 32 SANDAG Board Policy No. 039. Audit Policy Advisory Committee and Audit Activities. (Adopted December 2017; Amended January 2019, September 2019). https://www.sandag.org/about/- /media/E4A9F99797E2427AB4EF64A850188695.ashx ³³ SANDAG Audit Committee Meeting, (July 14, 2023). https://www.sandag.org/calendar/audit-committee-2023- 07-14 ³⁴ City of San Diego, Office of the Independent Auditor. Recommendation Follow-Up Dashboard | City of San Diego Official Website 35 Merriam Webster's Collegiate Online, s.v. "Culture," accessed January 17, 2024 https://www.merriam-webster.com/dictionary/culture ³⁶ SANDAG Office of the Independent Performance Auditor. Contracts and Procurement Operational and System Control Audit, Part 1. Audit No. 2202-05. (October 2022). https://www.sandag.org/- /media/SANDAG/Documents/PDF/about/office-of-the-independent-performance-auditor/reports-and- documents/audit-report-contracts-and-procurement-part-one.pdf ³⁷ SANDAG Board of Directors Meeting Agenda. (April 14, 2023). https://d3n9y02raazwpg.cloudfront.net/sandag/be5412b0-a0f6-11ed-8145-0050569183fa-7f44a2c2-2334-459d- 8147-30947a15d18b-1681444072.pdf 38 SANDAG. "Chief Executive Officer." (Accessed April 1, 2024). https://online.flipbuilder.com/kper/lwpu/ REQUIREMENTS AND INSTRUCTIONS The California Penal Code §933(c) requires any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the agency. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court); except that in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official 4 (e.g. District Attorney, Sheriff, etc.), such comment shall be made to the Presiding Judge with an information copy sent to the Board of Supervisors. Furthermore, California Penal Code §933.05(a), (b), (c), details, as follows, the manner in which such comment(s) are to be made: (a) As to each grand jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the finding (2) The respondent disagrees wholly or partially with the finding; in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) As to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a time frame for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a time frame for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This time frame shall not exceed six months from the date of publication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. (c) If a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the Board of Supervisors shall respond if requested by the grand jury, but the response of the Board of Supervisors shall address only those budgetary or personnel matters over which it has some decision-making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. Comments to the Presiding Judge of the Superior Court in compliance with the Penal Code 933.05 are required from the. Responding Agency