Fiscal Year 2016-17Annual Work Plan

www.sfcontroller.org

City Services AuditorOffice of the Controller

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OUR MISSIONThe City Services Auditor (CSA) seeks toimprove public service delivery andpromote efficient, effective, andaccountable government.

CSA has broad authority to assess theefficiency and effectiveness of citydepartments, contractors, programs, andfunctions and make recommendations.

In fiscal year 2016-17 CSA's budget is

CSA is staffed with approximately

$17.9 million

60 full-time equivalentpositions

Throughout the fiscal year CSA publishes its audit reports, performance reports, and technicalassistance project summaries on the Controller's website. The public is invited to subscribe toCSA's reports, search the database of reports, and use publicly available financial and performancedata on the CSA website. CSA strives to provide excellent audit, analytical, and technicalassistance services to city departments, leadership, and citizens.

The Audits Unit's engagements range from largeperformance audits of operational effectiveness toaudits of contract compliance, cybersecurity, andconstruction.

1.

The City Performance Unit provides financial andoperational analysis, program evaluation, and othertechnical assistance.

2.

The Whistleblower Program receives andinvestigates allegations of misuse of city funds,improper activities by city employees, and wastefuland inefficient government practices.

3.

OUR WORK

94% of audit recommendationsare implementedwithin two years of issuance

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City Performance was awarded the Certificate of Excellenceby the International City/County Management Association’s

(ICMA) Center for Performance Analytics for 2015 and 2016.The award recognizes local governments for demonstrating

excellence in analysis, public transparency, training, andsupport to staff and decision makers. San Francisco joins 33

other jurisdictions in receiving this award.

2015-16 ACCOMPLISHMENTS

Audits received the prestigious 2015 Knighton DistinguishedAudit Award for its audit of the City's procurement practices.

The award is given in recognition of the best performanceaudit reports based on potential impacts, persuasiveness, and

feasibility of recommendations to make governmentprograms more effective and efficient, including clarity and

overall innovation.

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The Director of City Audits received the 2016 David M.Walker Award for Excellence in Government Performance

and Accountability. Although an individual award, it is areflection of the unit's work evaluating city programs and

contractors and making impactful and innovativerecommendations to improve core city business processes

and departmental operations.

City Performance evaluated the San Francisco NavigationCenter's first year of operation. The Navigation Center provides

temporary housing to homeless San Franciscans while casemanagers connect them to public benefits, services, and

supportive housing. Our analysis informed the design of aninformation management system and will help the new,

integrated Department of Homelessness and Supportive Housingset criteria for supportive housing.

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2015-16 ACCOMPLISHMENTS

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The Whistleblower Program continues tobe recognized as a model fraud hotlineprogram by developing an on-demand

outreach video, hosting four webinars onbest practices for jurisdictions across the

United States and Canada, and issuingfraud bulletins on red flags associatedwith bid rigging, payroll schemes, and

inventory theft. In FY 2015-16, theprogram received 325 complaints, themajority of which were investigated,

resulting in 103 corrective or preventiveactions.

As a result of audit recommendationsand project work related to the citywide

construction contractor performanceevaluation, the Board of Supervisors and

the Mayor approved the City’s bestvalue legislation in June 2016. This newlegislation amends the AdministrativeCode to allow authorized departments

to perform public works contractsthrough a best value process that selectscontractors using a combination of price

and qualifications, including safetyrecord, past performance, experience,

and other factors.

In March 2016 City Performancelaunched the new Performance

Scorecards website, the City's firstinteractive tool for the public and policymakers to view timely results, outcomes,

and information on core city servicesand other citywide indicators. Each

scorecard compares actual performanceto targets or projections with coloredindicators to easily monitor progress.

Each measure allows an interactive drill-down with additional detail.

City Performance worked with theHuman Services Agency (HSA) to

develop an interactive disaster planningstaffing model to ensure HSA’s quick

and effective response in the event of amajor disaster. The model estimates thepeople HSA will need and who they willhave available to continue day-to-dayoperations based on varying disaster

scenarios and decisions.

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Transportation andStreets Infrastructure

To improve government responsiveness andefficiency, CSA will provide various auditing andconsulting services related to transportation inthe City, including:

• Conducting a performance audit of theMunicipal Transportation Agency’s (MTA)information technology functions and CapitalPrograms and Construction Division.

• Auditing the projects funded by the 2014Transportation Bond in the last quarter of thefiscal year.

• Moving the City’s collision reporting fromantiquated paper and manual entry databasemethods into the City’s Crime Data Warehouse.This change will allow better analysis and enablesharing of data among the Police, MunicipalTransportation Agency and Department ofPublic Health. The city needs accurate, timelyand geo-coded information about collisions formultiple safety, enforcement and educationefforts in support of Vision Zero goals.

• Completing projects begun in fiscal year 2016with MTA to analyze and improve itsmanagement of customer service requests andcomplaints. MTA receives complaints through311 and a variety of other channels, and routesthem to individual units, yards, and other worksites. The Agency seeks to improve the speedand consistency of its response to customersand its ability to act on the complaints correctlyand in a timely manner. MTA uses complaintsand requests to determine where trainingand/or discipline and information are needed.

OUR PLANS

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The City Services Auditor Division developed this Annual Work Plan by considering audits,projects, and other city responsibilities mandated by the City and County of San Francisco Charterand municipal codes, the results of a high-level risk assessment, and input from city management,leadership, and stakeholders.

Public Health and Human Services

To provide support to the Department ofPublic Health (DPH) as it manages the recentopening of the newly rebuilt San FranciscoGeneral Hospital (SFGH), transitions SanFrancisco's public health network to amanaged care delivery model (as indicated bythe Affordable Care Act), and continues togrow and modernize its systems, CSA will:

• Continue work with DPH to create datadashboards with metrics such as patient waittime, appointment scheduling, and clinictreatment outcomes and will work withexperts to help DPH best manage its servicedelivery, cost control, and revenue model tosucceed in the managed care environment.

• Assist with moving to a new electronichealth records system as the nextdevelopment effort to improve service inSFGH and the City’s clinics.

• Conduct a divisional performance audit ofthe Environmental Health Section.

To help clients stabilize their income, nutrition,and health care resources and to increasestate and federal funding to the City, CSA willwork with the Human Services Agency (HSA)to analyze and reduce turnover rates in publicbenefit programs such as CalWORKs, Medi-Cal, CalFresh, and County Adult Assistance.CSA will also continue to lead a city workgroup on common solutions to sharing publicbenefit program and client information whilemaintaining rights and privacy protections.This work is at the forefront of health, humanservices, and education agencies’ desire toboth design better programs and better serveclients with coordinated case managementand services.

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To enhance government efficiency andresponsiveness, CSA will continue to work withSFPUC to provide audit and technical services,including:

• Auditing the Sewer System ImprovementProgram, one of the largest infrastructureprojects underway in the City over the next 20years.

• Auditing SFPUC’s Power Enterprise, which isthe second of the division-level auditsconducted by CSA.

Since 2015 City Performance has facilitated aworking group with the Department ofEmergency Management, Fire Department,Mayor’s Office, and private ambulanceproviders to develop common performancemetrics on emergency medical response.Together these city agencies now maintain apublic website and dashboard showing a varietyof metrics for response time and ambulancetransport. In 2017 the group will analyzeambulance performance—turnaround time anddiversion hours—at hospitals.

Two of the City’s jail facilities are located onupper floors of the seismically deficient Hall ofJustice, which must be replaced in a relativelynear-term time frame. The City is engaged withcommunity organizations and citizens now in awork group to plan for the permanent closure ofthose jails by developing alternative programs,facilities, and/or treatment and communityoptions. CSA is providing analytical support andemploying a facilitator for the work group andwill assist with the report out to the cityleadership and stakeholders before the end of2016 on what the City’s path forward in thisarea should be.

OUR PLANS

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Infrastructure,Capital, and

FacilitiesPublic Safety

To promote fiscal sustainability, governmentefficiency, and interdepartmentalcollaboration, CSA provides audit, oversight,and technical assistance services related to theCity’s capital improvement programs, facilities,and bond expenditures. This includes:

• Auditing the various general obligation bondprograms, including the 2012 Clean and SafeNeighborhood Parks Bond, 2014 EarthquakeSafety and Emergency Response Bond, 2015Affordable Housing Bond, and San FranciscoGeneral Hospital Rebuild Bond (a close-outaudit).

• With the Department of Public Works andthe City’s capital planning entities, implementthe ability to use performance results inevaluating construction contractors. Thisfollows on a successful effort in fiscal year2014-15 to update Chapter 6 of the City’sAdministrative Code, which governsconstruction contracting, and new legislationin fiscal year 2015-16 allowing the City to usebest-value criteria in selecting constructionbids.

• Assessing the efficiency and effectiveness ofcitywide facilities maintenance practices andoversight.

• Leading and facilitating a work group tocreate a consolidated City Permit Center. TheCity seeks to make the process for individualsseeking permits of all types seamless, fast, andefficient by locating the personnel who grantplanning, building inspection, businessoperations, fire, health and other permits atone site, with common intake, service counters,cashiering and other facilities.

• Working with the Recreation and ParkDepartment to move our Charter-mandatedevaluations of park conditions to a mobileplatform, resulting in increased efficiency fromthe on-line entry and error reduction that willbe designed into the system. The mobileplatform will also allow Recreation and Park toautomate day-to-day facilities maintenanceand work-order completion.

Public UtilitiesCommission

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To promote efficient operations of the City’sinformation technology structure, CSAcontinues to assist departments in minimizingsecurity breaches and risks to city systems andapplications and helping to develop solutions tothe City’s information technology (IT) needs,CSA will:

• Continue to conduct thorough networkvulnerability and penetration tests.

• Build a cybersecurity and informationtechnology audit team within the Department ofTechnology, responsible for ensuring that theCity’s IT governance and infrastructure conformto industry standards.

Also, the City’s legacy property taxadministration system under the Assessor is dueto be replaced and upgraded beginning in thisfiscal year. The project has been assisted byCSA’s work and it will continue in 2017 withfurther mapping and analysis of the thousands oftransactions and processes that underlie thiscritical area of public service. Design andprocess improvements will help the City sorthigh-value and time-critical events andtransactions to the top, improve taxadministration and revenue collection, andprovide better service to taxpayers.

OUR PLANS

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PerformanceProgram Technology

In fiscal year 2016, to better inform the publicand policymakers on governmentperformance, the Citywide PerformanceMeasurement program rolled out a newwebsite with comprehensive and interactivecity service performance and quality data—thePerformance Scorecards. The eight scorecardsare Public Safety, Public Health, Livability,Safety Net, Transportation, Environment,Economy, and Finance. In 2017 CSA will buildon the success of this tool, such as increasingthe use of infographics in performancereporting. The information researched andproduced by our performance team is usedcitywide in reports, the Mayor’s Budget Book,and other professional and public settings forcitizens, leadership, and the public policycommunity to understand and measure SanFrancisco’s public service delivery.

To better understand how San Franciscocompares to other jurisdictions, CSA issurveying other jurisdictions on a set of keyperformance metrics and will issue a citywidebenchmarking report that looks at how SanFrancisco performs in policy areas such astransportation, livability, and public safety,among others.

CSA has created and run a Data Academy inthe last two years where city workers canimprove their skills in a variety of software,analytical methods, and data tools. We want toenable all city departments and individuals tomake more decisions with data and designimprovements to their service area and theCity’s businesses. We have trained hundredsof analysts in Excel for analytics, Tableau fordata visualization and graphics, “R” opensource statistical analysis, and other methods.In fiscal year 2017 we are developing androlling out a process improvement trainingprogram that is designed to allow staff at everylevel of an organization to analyze, processmap, measure, and improve their own work. Based on LEAN principles, these tools havebeen used successfully in the City of Denver,shared with our staff, and are being adaptedfor San Francisco city government.

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To promote government efficiency,responsiveness, and interdepartmentalcollaboration, CSA will continue to provide:

• A best-in-class Whistleblower Program thateffectively resolves complaints to supportgovernment efficiencies.

• Hotline webinars that promote innovativeoperational leading practices.

• Fraud prevention resources that educatecomplainants on identifying issues that impactthe fiscal health of their department and theCity.

Follow-up AuditEfforts

OUR PLANS

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Procurement andContract Oversight Whistleblower

Program

To improve government efficiency andresponsiveness and promote affordability, CSAwill continue its work on the City’s contractingand procurement efforts, including:

• Conducting contract compliance audits.

• Building a strategic sourcing team within theOffice of Contract Administration responsiblefor implementing changes recommended in anaudit of the City’s procurement function topromote responsible and efficient purchasingof goods and services.

EmergencyPreparedness

To ensure that the City can continue financialoperations when a disaster occurs, CSA will:

• Develop trainings and a citywide manual oncost recovery practices that comply withFederal Emergency Management Agencyregulations.

• Audit virtual resilience and technology.

To ensure continuous improvements in cityoperations and mitigate the risk of fraud, abuse,and error, CSA will follow up on auditrecommendations every six months afterissuance to monitor the status of auditees'corrective actions.

GET IN TOUCH WITH US

415-554-7500 Office of the ControllerCity Hall, Room 316

1 Dr. Carlton B. Goodlett PlaceSan Francisco, CA 94102

controller@sfgov.org @sfcontroller

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MAJOR PLANNED PROJECTS & AUDITS

Listed below is a variety of the audits and projects that are planned for fiscal year 2016-17. CSA'scomplete work plan includes many additional smaller initiatives and continuous programs.Additional detail is available on request.

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