Response to 2011-2012 Grand Jury Final Report

Recommendations 22

• R1
  O. The City agrees with the recommendation. Article XXXIV, 1 of the City's Charter calls for Council to employ a public accountant or firm of public accountants to perform audits. An independent audit firm was used for FY201 1 audit reports that were prepared completed on time. were presented to Council on July 31, 201 n::>n,nrrC! 11. Charter cities should review and update accounting policies and procedures to ensure they are appropriately detailed and define the specific authority and responsibility of employees. Cities should also establish a policy requiring policies and procedures to be annually updated least once every years. 1. The recommendation has implemented. On April 24, 2012 City adopted by resolution updating the internal control policies as part of City's Standard Operating Procedures address financial procedures information technology. Charter cities should and update policies and procedures for rep.OI~ting· fraud, abuse and questionable practices including a piactical mechanism, such as a fraud hotline, to permit the confidential, anonymous reporting of concerns.
• R2
  The agrees with the recommendation. The City's Financial policy #3 states that, "It is the policy the City Inglewood to fund current expenditures for operating budgets with current revenues." 3. All Charter cities reviewed in this report should commit to not using one­ time revenues to fund recurring or on-going expenditures. City with the recommendation. The City's Financial Policies, policy#12 that, "It shall be the policy of the City of Inglewood to not use one-time revenues for on-going expenditures. One W Manchester Boulevard· Inglewood, CA • 90301 • Phone (310) 412-5301 • Fax (310) 412-8788 • 4. All Charter reviewed this report should adopt multi-year budgets for better planning to ensure the delivery of basic before funding projects of lower priority.
• R3
  in this report should to not using revenues to fund or on-going expenditures. City Torrance concurs with
• R4
  The City agrees with the recommendation. City Manager is considering development of a multi-year budget within next two years. In addition, the City Inglewood adopted a 5 Year Capital Improvement Plan (CIP) provides for multi-year budgets for better planning and preparation of future for funding projects of lower priority. 5. All Charter reviewed in this report should adopt a method and practice of saving into a reserve or "rainy day" fund to be used to supplement operating revenue in years of short fall.
• R5
  agrees with the recommendation. City's Financial Policies, policy requires City establish and maintain at a reserve fund for the Fund equal to 8% of current expenditure appropriation and adequate operating reserves for all other funds. Prior to the recession, method and practice saving into reserves for a "rainy day" for future operations was practiced. 6. Charter cities should develop and adopt a strategic plan that articulates the mission, vision, core values and priorities (goa and objectives) for the City.
• R6
  City with the recommendation. City will to its miSSion, and priorities in budget document the upcoming FY 2013 ­ 2014 budget preparation process. Charter cities should develop and report on performance measures or indicators to evaluate outcomes or progress on priorities. These performance measures should be quantified, focused on outcomes or results, and information should be provided for several years to allow evaluation of progress over time. City with the recommendation. The City is currently developing data and implementing processes for reporting performance measures to the outcomes and progress the operating departments in the FY2013-2014 Charter city councils should continue to maintain a governance policy that specifically defines the relationship between the council and executive. Charter city councils should continue providing specific annual goals for the city's executive (City Manager of City Administrator) and conduct meaningful evaluations annually. City with the recommendation, but presently maintains current system which of the City Council providing constant feedback and 2 direction to the City Manager while goals and monitoring as a its overall ongoing oversight responsibility of the city manager. 9. Charter cities should formally establish an audit committee making it directly responsible for the work of the independent auditor. City agrees with the recommendation but it has not implemented. The Department is responsible for the work performed by the selected auditing firm and currently does not have an audit committee. 10. All charter cities reviewed in this report should continue requiring compliance with standards independence for the auditor. Cities that not currently the auditor through a competitive process should, do ' "Cities that allow the auditor to provide non-audit services should ensure appropriate review and approval of those services.
• R7
  Charter cities should develop report on measures or indicators to outcomes or progress on priorities. performance measures should be quantified, focused on outcomes or and information be provided for years to allow evaluation ofprogress over time. following cities should develop such performance measures for indicators: Arcadia, Bell, Compton, Industry, Inglewood, Lancaster, City. Agree - 2005, the had a performance indicators program, which was restructured in 2012 and are reported quarterly to the CounciL
• R8
  city councils continue to a governance policy that the relationship between council and executive. Charter councils should continue providing annual goals for city's (City Manager or City Administrator) conduct meaningful evaluations annually. Thefollowing should do so: Alhlll11bra, Bell, Industry, Inglewood, Agree­ annual evaluation are conducted by the TTA·....."'." Council.
• R9
  cities should establish an audit committee making it directly responsible for work ofthe independent auditor. following cities should formally establish an audit committee: Alhambra, Arcadia, Bell, Cerritos, Compton, Industry, Inglewood, Irwindale, Pomona, Santa Monica, Hill, Temple Whittier. had an audit to the Brown which vv"u.u.U meets six 1O. All charter reviewed in this report should continue requiring compliance with standards of independence for external auditor. that do not currently select the auditor competitive should do so. that allow auditor to provide non-audit ensure aplprCIPflla approval of those City an RFP process, to an independent external auditor on a basis. the RFP are reviewed and accepted by the audit and subsequently presented and adopted the City CounciL external auditors reviewed the City's security protocols as a non-audit which were reviewed
• R10
  All charter cities reviewed in this report should continue requiring compliance with standards independence for the auditor. Cities that not currently the auditor through a competitive process should, do ' "Cities that allow the auditor to provide non-audit services should ensure appropriate review and approval of those services. R1 O. The City agrees with the recommendation. Article XXXIV, 1 of the City's Charter calls for Council to employ a public accountant or firm of public accountants to perform audits. An independent audit firm was used for FY201 1 audit reports that were prepared completed on time. were presented to Council on July 31, 201 n::>n,nrrC!
• R11
  cities should rf-""f1""M "1-''-'''''''''' accounting policies and Drc)ce,our to ensure they are detailed specific authority and employees. Cities should rp",nA""" establish a policy and procedures to be n",,,,,...,,,,,...,, annually and updated at once every three years. should review and policies and ............r-, at least once every Alhambra, Arcadia, Bell, Industry, Inglewood, Pasadena, Pomona, Monica, Temple City. - The City maintains procedure manuals and up(latt!S periodically. 1 cities should review and abuse and "I-I"''''''V I-IVL...vn",.., mechanism, such as a fraud hotline, to permit the anonymous cOIlcelms. The following should such policies and ,",VJlIH',",vlluaCl, DrClce~Jur'es: Alhambra, Inglewood, Monica, Temple City. City maintains a secure anonymous hotline for rpn,Arl',"cr and questionable
• R12
  Update and Procedures fraud, questionable practices, including a mechanism for confidential reporting concerns - (1) the City has an Policy in place and individuals ability to concerns confidentially writing.
• R13
  should periodically review update internal control DrO,CeclU U'"'-HUIS''''U'-''''' The Following cities should update internal COltltn)l pro(:eaurt~S over financial Industry, Inglewood. City Auditor routinely and reports rpVIP'll<: reports to the deficiencies are "1'"\~... ""r·T",ri to the extent
• R14
  have not adopted a policy an unrestricted fund balance than two general fund operating revenues or regular general fund "",,,...,,'1"'," should The following cities should adopt such a policy: Alhambra, comr>toltl. Downey, Glendale, Industry, Pomona, Redondo -'-""'.... v ••, Whittier. Agree - has adopted a general fund reserve resolution requiring a aUnUI'H.U.. fund which is far greater than two months (or 16%) reciommenCle:Cl uu,,'''''',I:'.l....·y r..,."..nfP unassigned and Charter reserves. publish a timely Annual Financial Report (CAFR). Agree - City ... v ••"U'""" a timely CAFR annually.
• R15
  Charter cities must develop and publish a timely Comprehensive Annual Financial Report (CAFR). R1 No from Inglewood, per the Final Report.
• R16
  Charter cities that not published financial reports on website should do so. Industry should do so. Agree - on the City's website. 1-'",.,-,..., ..,-.,-, controls over sole sourced ""',,,,...,,,,.., preferential nrp''VPlrn contracts. The should develop such Irwindale, Temple "Ar.1"rA Agree-Both Administrative Policy H~"UU"'''U ''IF''''''''''' sole sourced contracting, requiring COUflcil the value ofcontracts reach a threshold.
• R17
  Charter should develop controls over sourced contracting to prevent preferential granting of contracts. The following cities should develop controls: Bell, Industry, Irwindale, and Temple City. 1 - Implemented as reflected in City's purchasing ordinance and administrative procedures.
• R18
  City with the recommendation. City is considering development of policies and procedures for selecting and negotiating fair prices architectural and engineering consistent with state codes. 19. All charter cities reviewed in report should provide policies and procedures or ensuring prices negotiated for substantial contract change orders are and reasonable, and "establish internalcontrots over substantial contract change orders so that same contractors not repeatedly awarded contracts
• R19
  charter reviewed this should provide and ",~.u......'", for substantial contract change over substantial contract so following cities should do so: Alhambra, Torrance, Whittier. Agree - City has an purchasing and procurement policy, which was recently the an internal audit. Further enhancements are being implemented currently.
• R20
  City agrees the recommendation. The City adopted a Purchasing System Inglewood Municipal (IMC) 2, Article 5, Section 2-190 Section adopted November 1980 by Ordinance #2387 and amended April ii, 2006 by Ordinance #06-04. This information
• R21
  The City agrees with the recorpmendation. City periodically classification and compensation studies evaluating all civilian and sworn position classifications. In the the City has a and compensation study approximately 2-3 in conjunction with collective bargaining the economic downturn has resulted in reductions in City's workforce, work furloughs, pay reductions, and other give-backs, the hasn't been brought up in last two bargaining 22. All charter city councils of the cities reviewed in report should have access to prevailing municipal and/or salary ranges for comparable cities in order to identify any individual city positions(s) whose salaries the normal salary range for those positions. Approval of any exceptional salaries should be based on justifications of exceptional and unique job responsibilities. The City agrees with recommendation. However, in light of the comments in #R21, the City does not have any immediate plans to accomplish a class and comp study, 1) City hiring is minimal sporadic given our budgetary shortfalls, and the and resources necessary to perform such a study would necessitate the use of funds that are currently for higher priority, operational Finally, there is unlikely to be a position where compensation rate is higher than the 'normal salary of jurisdictions. Thank you for providing us an opportunity to comment on report. 5 o CIT Y F BURBANK FFICE OF THE lTV MANAGER February 13, 2013 Judge County Superior Court nnE!lBS Shortridge Foltz Criminal Justice Center 210 West Temple Street, Floor, Room 11-506 Los CA 90012 Cleml=mts._ On behalf of the City of Burbank, enclosed you will find City's response to
• R22
  city councils of the report should have access to prevailing municipal wage rates and/or salary for comparable in order to identify individual city position(s) whose salaries the range for those Approval of exceptional salaries ':>H'''''''U be on justifications of exceptional uniqlle responsibilities. department frequently conducts surveys with ten cities ",,""'nt'I'''''' <:'111'""""" lli In T1 to __ \6t~ BTER CITIES - RECOMMENDATIONS RECOMMENDATIONS are required from the following charter cities: Alhambra Arcadia Burbank Compton Culver City Downey Glendale Industry Inglewood Inwindale Palmdale Redondo Beach Signal Hill Vernon