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ON THE RESULTS OF THE FISCAL YEAR
[Final Internal Audit Reports ]
2021, EXTERNAL FINANCIAL AUDIT AND PRESENTATION OF RELATED REPORTS.YOU KIND OF GOT A PREVIEW TO THIS AT THE LAST COUNCIL MEETING.
UM, AND I THINK KEVIN AND I WERE TALKING BEFORE THIS AND JUST KIND OF PUT IT IN PERSPECTIVE.
YOU KNOW, THIS IS THE FOURTH YEAR THAT YOU'RE GONNA SEE THAT FROM AN EXTERNAL AUDIT STANDPOINT, WE HAVE NOT HAD ANY FINDINGS, WHICH IS FAIRLY EXTRAORDINARY, FOUR YEARS IN A ROW.
AND ALSO GIVEN THE, UM, YOU KNOW, THE CHALLENGES WITH THE PANDEMIC, THE ADDITIONAL FEDERAL MONEY THAT WE'VE HAD, REMOTE WORKING, UM, AND HAVING GONE THROUGH ALL THAT PLUS MORE TO BE ABLE TO DELIVER SOME LIKE THIS IS PRETTY EXTRAORDINARY.
SO, UH, BEN AND I AND ARE VERY PROUD OF THIS TEAM, UH, MELANIE KEATON WILL BE DELIVERING THE PRESENTATION.
AND WE ALSO HAVE SEVERAL PEOPLE IN THE AUDIENCE WHO HAVE CONTRIBUTED TO THIS.
WE HAVE VICTORIA RIDER, AND THEN WE HAVE OUR AUDITOR TEAM THAT, UM, ANGELA DUNLAP WITH B K HERE AS WELL, TO DO THE SECOND HALF OF THE PRESENTATION, YOU KNOW, INTRODUCE HER FULL TEAM AS WELL.
SO, WITH THAT CHAIR, I'LL TURN IT OVER TO, UH, MELANIE.
I'M HAPPY TO DELIVER GOOD NEWS.
UM, I'M GOING TO, UH, FIRST OF ALL, AS TROY MENTIONED, MELANIE KEATON, ASSISTANT FINANCE DIRECTOR, UM, OVER THE ACCOUNTING DIVISION THAT'S RESPONSIBLE FOR THE FER OR FINANCIAL REPORTS.
AND THEN I'M GONNA HAVE ANGELA DUNLAP, WHO IS THE B K D PARTNER, UH, PRESENT WITH THE FINAL, UH, HER PRESENTATION FOR THE AUDITOR COMMUNICATIONS.
SO, JUST AS A QUICK REMINDER, UM, THE EXTERNAL AUDIT REQUIREMENTS, THEY'RE REQUIRED BY CITY CHARTER, BY STATE STATUTE, AS WELL AS BY, UH, FEDERAL RULES BECAUSE WE GET FEDERAL, UH, GRANT DOLLARS.
UM, AND REALLY IT'S TO ENSURE THAT THEY'RE, THE FINANCIALS ARE FAIRLY PRESENTED.
UM, THEY'RE NOT MATERIALLY MISSTATED.
UM, AND THAT WE BASICALLY ARE ABLE TO RELY ON THOSE FINANCIALS AS OUR STAKEHOLDERS.
THE EXTERNAL AUDIT CONTRACT, THIS IS THE SECOND AND FINAL, UH, EXTENSION YEAR OF THAT FIVE YEAR CONTRACT.
ORIGINALLY, WE AWARDED THE CONTRACT TO GRANT THORNTON FIVE YEARS AGO.
UM, THEY MERGED THEIR GOVERNMENTAL OPERATIONS WITH B K D RIGHT BEFORE THE TWO EXTENSIONS.
AND SO B K D HAS HAD THE ASSIGNMENT AND THE CONTRACT FOR THE LAST TWO YEARS.
WE ARE CURRENTLY OUT, UH, FINALIZING THE RESPONDENTS FOR THE NEW R F P, AND WE'LL BE PRESENTING THAT TO THE AUDIT COMMITTEE IN A FUTURE MEETING THAT YOU'LL SEE THAT WE'VE ALSO DONE REALLY WELL WITH OUR SINGLE AUDITS IN HAVING VERY FEW, IF ANY, FINDINGS OVER THE LAST COUPLE OF YEARS.
UH, ANGIE, I'LL TALK ABOUT THE LAST TWO THERE FOR 2021.
THEY WERE NOT SIGNIFICANT MAJOR, UM, AND WE'VE ACTUALLY ALREADY CORRECTED THEM AND REALLY JUST KIND OF HIGHLIGHTS, THIS IS OUR TEAM WHO PUT TOGETHER THESE DOCUMENTS.
IT'S OVER 500 PAGES OF, UH, NOT NEARLY AS BAD AS THE BUDGET
UM, THIS IS ACTUALLY THE FIRST TIME THAT THIS GROUP'S SEEN EACH OTHER IN TWO YEARS.
THEY'VE BEEN DOING EVERYTHING REMOTE.
UM, AND IT'S NOT JUST THIS GROUP WHO PUTS A DOCUMENT TOGETHER.
IT'S REALLY ALL THE FISCAL OPERATIONS THROUGHOUT THE ENTIRE CITY LED BY THIS TEAM.
THIS TEAM TRAINS THOSE DEPARTMENTS AND THOSE DIVISIONS AND FISCAL OPERATIONS TO HANDLE THOSE DAY-TO-DAY OPERATIONS SO THAT WE HAVE THE CONTROLS IN PLACE.
WE HAVE THAT STANDARDIZED PROCESSES, WHICH IS WHAT'S ENABLED US TO HAVE A CLEAN OPINION AND NO MANAGEMENT LETTER FINDINGS FOR THE LAST FOUR YEARS.
UM, IN ADDITION TO HAVING THE STAFF REMOTE WORKING, WE'VE ACTUALLY HAD THE AUDIT BE A HUNDRED PERCENT REMOTE FOR THE LAST TWO YEARS AS WELL.
UM, IT'S WORKED OUT PRETTY WELL ACTUALLY, AND ANGIE CAN TALK ABOUT THAT A BIT.
UM, THIS IS ALL THE WHILE DEALING WITH NEW AUDIT, UH, NEW SINGLE AUDIT PROGRAMS, UM, CHANGING RULES, NEW DEPARTMENTS WHO'VE NEVER HAD GRANTS, HAVING GRANTS AND HAVING TO LEARN AT THE SAME TIME.
UH, AND REALLY, I WANT TO THANK VICKI RADER, WHO IS OUR CONTROLLER, WHO LED THIS DIVISION AND THIS OPERATIONS WITH HER MANAGERS, ELIZABETH DARD, KIMBERLY NUNEZ, AND JAY BLACKWELL.
THEY HAVE BEEN THE CORE OF THIS TEAM AND REALLY HAS HELPED, UM, SUCCESSFULLY GET TO THAT ZERO AUDIT FINDINGS AND VICKI'S HERE TODAY.
AND WITH THAT, I'M GONNA GO AHEAD AND ACTUALLY TURN IT OVER TO ANGIE.
I WAS TRYING TO REMEMBER WHAT TIME IT WAS.
UM, I'M ANGIE DUNLAP AND I'M THE AUDIT PARTNER OF THE AUDIT ENGAGEMENT.
AND I HAVE WITH ME ALSO ERICA BROWN, WHO'S BEEN THE SENIOR MANAGER ON THE ENGAGEMENT FOR THE
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LAST FIVE YEARS AS WELL.UM, THAT WILL HELP ME PRESENT THE RESULTS OF THE AUDIT.
SO MELANIE TALKED QUITE A BIT ABOUT, UH, SOME OF THE GREAT THINGS THAT HAVE HAPPENED, AND WE'LL JUST KIND OF WRAP THAT UP WITH, UH, HOW WE SAW THE AUDIT THIS YEAR FOR 2021.
UM, BUT BEFORE I BEGIN, UM, AS MELANIE SAID, THIS IS OUR, UH, FIFTH AND FINAL YEAR.
UM, SO IT'S KIND OF BITTERSWEET FOR ME 'CAUSE THIS IS MY FINAL YEAR, UH, PRESENTING THE RESULTS OF THE AUDIT FOR THE CITY OF SAN ANTONIO.
AND, UM, I WANTED TO INTRODUCE THE TEAM.
AS MELANIE SAID, THERE'S A LOT OF INDIVIDUALS THAT ARE INVOLVED IN THIS PROCESS, UM, ON THE CITY SIDE, BUT ALSO ON THE AUDIT SIDE.
SO WE HAVE SEVERAL OF OUR TEAM MEMBERS HERE TODAY, AND I'LL JUST, UM, INTRODUCE THEM AND AS THEY CAN STAND, UM, OR WAVE THEIR HAND.
UH, SO FIRST WE HAVE BRITTS AND ASSOCIATES, UH, TERRY BRITTS AS THE PARTNER, AND CHARLES MARSHALL JR.
AND THEN THEY'RE HIDING IN THE BACK, SO I'M TRYING TO SEE
THERE'S ROBERT J. WILLIAMS, UH, C P A, WHO'S, UH, BEEN PART OF THIS AUDIT FOR DECADES,
UM, SO HE'S BEEN A GREAT ADDITION TO THE TEAM.
AND THEN, UM, I THINK IN THE FAR BACK ROW IS, UH, SHRIER CARMONA WITH CHRISTOPHER CARMONA AS THE PARTNER AND JUSTIN, UM, TURNER.
AND THEN, UH, NOT HERE IS RICHARD MARTINEZ.
AND THEN, UH, WE HAVE ARMSTRONG VAUGHN AND ASSOCIATES, WHICH IS ANOTHER FIRM THAT WORKED WITH US ON THE ENGAGEMENT.
THEY WEREN'T ABLE TO BE HERE TODAY WITH, UM, DEBORAH FRAZIER AND, UM, CARL GORING.
AND THEN ON MY TEAM, WE STILL ALSO HAD SHAQUITA RAW AND STARTZMAN, UH, FROM B K D, WHO ALSO WEREN'T ABLE TO BE HERE TODAY.
SO WITH THAT, UH, WE WILL GO THROUGH OUR PRESENTATION.
THERE ARE SOME ELEMENTS THAT MELANIE TOUCHED ON AS WELL, UM, BUT JUST FROM AN AUDIT SCOPE STANDPOINT.
UM, AND WE TALKED ABOUT THIS AT OUR LAST MEETING WHEN WE, YOU KNOW, BASICALLY, UH, TALKED ABOUT THE CONDUCT OF THE AUDIT.
SO OUR AUDIT SCOPE IS, UH, TO PERFORM THE AUDIT UNDER GENERALLY ACCEPTED AUDITING STANDARDS, AS WELL AS, UH, GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.
AND THEN WE PERFORM AUDITS OF THE FEDERAL AND STATE PROGRAMS UNDER UNIFORM GUIDANCE AND STATE OF TEXAS UNIFORM GRANT MANAGEMENT STANDARDS.
AND SO OUR AUDIT IS DI DESIGNED TO PROVIDE REASONABLE BUT NOT ABSOLUTE ASSURANCE, JUST BECAUSE WE DON'T LOOK AT EVERY TRANSACTION.
WE DO THINGS ON A SCOPE BASIS BASED ON MATERIALITY.
AND WE TALKED A LITTLE BIT ABOUT KIND OF WHAT THOSE MATERIALITY SCOPES WERE.
UM, ADDITIONALLY, WE ARE REQUIRED TO, UH, SHARE SPECIFIC COMMUNICATIONS WITH MANAGEMENT THAT WE WILL COVER IN THIS PRESENTATION.
AND, UM, THE AUDIT, WE, WE LIKE TO SAY IT DOESN'T RELIEVE MANAGEMENT OF THEIR RESPONSIBILITIES.
AND, UM, WE'VE HAD, AND WE'VE WORKED WITH A GREAT MANAGEMENT TEAM THAT I THINK YOU GUYS ARE WELL AWARE OF, UH, THROUGH YOUR INTERACTIONS WITH, YOU KNOW, BEN AND TROY AND MELANIE AND HER ENTIRE TEAM, AS MELANIE STATED, UM, WE HAVE ISSUED OPINIONS, UM, ON THE FOLLOWING DELIVERABLES, THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT, THE SINGLE AUDIT FOR BOTH THE FEDERAL AND STATE SIDE, THE PASSENGER FACILITY CHARGE PROGRAM, AND THE T C E Q C F O, UH, LETTER, WHICH IS AN AGREED UPON PROCEDURES REPORT.
SO WITH THAT, UM, THE RESULTS OF THE AUDIT, WE, UH, ISSUED UNMODIFIED OR CLEAN OPINIONS ON THE CITY'S FINANCIAL STATEMENTS.
UM, WE DID NOT HAVE ANY SCOPE LIMITATIONS WITH RESPECT TO THE AUDIT.
AND, UM, WE REALLY LIKE TO POINT THAT OUT, ESPECIALLY OVER THESE LAST TWO YEARS.
AS MELANIE SAID, WE'VE BEEN PERFORMING THE AUDIT REMOTELY.
UM, SO WE HAVEN'T SEEN, UM, THEIR TEAM IN TWO YEARS.
WE HAVEN'T SEEN OUR TEAM IN TWO YEARS OUTSIDE OF TEAMS MEETINGS AND SOMETIMES BEING ON VIDEO CONFERENCE.
SO THE FACT THAT WE HAD NO SCOPE LIMITATIONS, MEANING THAT WE WERE STILL ABLE TO TALK TO WHOEVER WE NEEDED TO TALK TO, LOOK AT ANY DOCUMENTS THAT WE NEEDED TO LOOK AT IN ORDER TO, UH, RENDER AN OPINION, UM, WAS, UH, EXCEPTIONAL.
WE DIDN'T HAVE ANY UNRESOLVED AUDIT ISSUES.
WE CONTINUE THROUGHOUT THE PROCESS TO TALK THROUGH MATTERS THAT COME UP DURING THE AUDIT.
AND THEN, AGAIN, WITH BEING IN A REMOTE ENVIRONMENT, WE STILL CONTINUE TO HAVE OPEN AND EFFECTIVE Q COMMUNICATION WITH MANAGEMENT, NOT JUST DURING THE AUDIT PROCESS.
THE TIMEFRAME THAT WE'RE HERE FROM, YOU KNOW, BASICALLY, UH, THE SUMMER MONTHS AND THEN DECEMBER THROUGH EFFECTIVELY KIND OF LIKE THE END OF MARCH, UM, YOU KNOW, WE WERE STILL ABLE TO HAVE, UH, EFFECTIVE COMMUNICATION WITH ALL THE, UH, RELEVANT PARTIES OF THE ENGAGEMENT.
SO MELANIE DID MENTION THAT WE HAD ONE, UM, PAST AUDIT ADJUSTMENT RELATED TO THE WITTY MUSEUM, UM, JUST BASED ON THE TRANSACTION, UH, THAT HAPPENED WITH RESPECT TO, UH, THE ISSUANCE OF DEBT IN ORDER FOR THEM TO BE ABLE TO PAY OFF A LOAN, UM, THAT THEY HAD.
THERE WAS SOME TRANSFER OF, UH, ASSETS THAT WERE NEEDING TO BE DONE BASED ON THAT ARRANGEMENT.
AND SO, UH, THIS, UH, ADJUSTMENT RELATED TO THAT, UH, $10 MILLION, UM, IT HAS BEEN REFLECTED IN THE, UH, FINANCIAL INFORMATION OF THE CITY SUBSEQUENT TO YEAR END.
SO IT'S NOT IN THE FINANCIALS, UH, AS OF YEAR END, BUT
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THEY DID MAKE THIS ADJUSTMENT, UM, IN THEIR BOOKS AND RECORDS SUBSEQUENT TO YEAR END.UM, FROM OUR PERSPECTIVE, YOU KNOW, IT WAS NOT MATERIAL.
UM, IT WAS A ABOVE OUR ADJUSTMENT SCOPE, AND SO THAT'S WHY IT WAS, UH, PROPOSED, BUT WE WERE COMFORTABLE WITH MANAGEMENT, UM, PASSING ON THAT PARTICULAR ADJUSTMENT.
SO I'M GONNA TURN IT OVER TO ERICA TO TALK ABOUT THE SINGLE AUDIT ASPECT OF THE, UH, AUDIT.
UM, AS MELANIE MENTIONED, WE TESTED, UH, SEVERAL SINGLE AUDIT PROGRAMS THIS YEAR.
UM, A LOT OF ARPA AND CARES FUNDING HAS COME INTO THE CITY.
AND, UM, BECAUSE OF THAT, WE HAD 14 PROGRAMS IN TOTAL THAT POPPED OUT AS MAJOR.
10 OF THOSE WERE, WERE FEDERAL PROGRAMS. SO WE LOOKED AT WIC, C D B G.
THERE'S ALSO A SEPARATE PROGRAM THAT IS, UM, CONSIDERED STATE ADMINISTERED C D B G.
WE LOOKED AT EMERGENCY SOLUTIONS GRANT PROGRAM AND THEN THE AIRPORT IMPROVEMENT PROGRAM.
AND THEN WE LOOKED AT EMERGENCY RENTAL ASSISTANCE.
SO THAT'S ONE OF THE NEWER PROGRAMS THAT POPPED OUT 'CAUSE OF ARPA, THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS.
ALSO A NEW PROGRAM, CORONAVIRUS, UH, RELIEF FUND, WHICH WE ACTUALLY LOOKED AT LAST YEAR, BUT WE LOOKED AT IT AGAIN THIS YEAR, UM, BECAUSE, UM, IT'S REQUIRED.
AND THEN IMMUNIZATION AND FINALLY, COMMUNITY SERVICES BLOCK GRANTS.
AND AS, UM, ANGIE MENTIONED, WE DIDN'T HAVE, UH, WE DID HAVE TWO FINDINGS.
UM, SO I'LL GO THROUGH THOSE ON THE FEDERAL PROGRAMS. UM, AND THEN ON THE STATE SIDE, WE LOOKED AT CHILDCARE DELIVERY SYSTEM, THE REACT PROGRAM, TEXAS HOMELESS HOUSING, AND THE TRUANCY INTERVENTION AND PREVENTION PROGRAM.
AND WE DIDN'T HAVE ANY FINDINGS, UM, ON THE STATE SIDE.
SO FOR THE SINGLE AUDIT AS WELL AS THE P F C COMPLIANCE AUDITS, WE ARE, WE ISSUE A, UH, REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING FOR THIS FEDERAL SIDE.
WE DID HAVE TWO FINDINGS, UM, WHICH I'LL GO IN ON THE NEXT SLIDE.
FOR THE STATE PROGRAMS, WE DIDN'T HAVE ANY FINDINGS, AND THEN WE HAD NO FINDINGS ON THE P F C PROGRAM AS WELL.
SO WE DID HAVE TWO SINGLE AUDIT FINDINGS.
THE FIRST ONE WAS RELATED TO THE EMERGENCY SOLUTIONS GRANT PROGRAM.
UM, THERE'S A SPECIAL TEST AND PROVISIONS THAT'S IN THE COMPLIANCE SUPPLEMENT THAT, UM, PAYMENTS TO SUBRECIPIENTS HAS TO BE WITHIN 30 DAYS.
AND, UM, THERE WERE INSTANCES, SO OF THE 21 THAT WE TESTED, EIGHT OF THEM WERE NOT WITHIN THAT 30 DAYS.
UM, THIS WAS MAINLY DUE TO, UM, STAFF VACANCIES AND, UM, LEAVE AND JUST OVERALL STAFFING ISSUES AT THE CITY.
UM, THIS HAS SINCE BEEN CORRECTED, UM, IF I UNDERSTAND.
UM, AND SO IT WILL NOT BE AN ISSUE GOING FORWARD.
AND THEN ON THE COMMUNITY DEVELOPMENT BLOCK GRANT, UM, THERE WERE, WE TESTED TWO QUARTERLY PERFORMANCE REPORTS, AND THOSE WERE PREPARED AND REVIEWED BY THE SAME PERSON.
AND AGAIN, THIS WAS ALSO RELATED TO KIND OF VACANCIES IN THE DEPARTMENT, AND THAT HAS ALSO BEEN CORRECTED AT THIS TIME.
AND THEN ONE THING WE ALSO LOOK AT AS PART OF OUR AUDIT IS, UH, ANY PRIOR YEAR AUDIT FINDINGS THAT THERE WERE, WE ALWAYS MAKE SURE THAT THOSE HAVE BEEN CORRECTED.
THIS ONE'S ACTUALLY FROM 2019.
SO LAST YEAR IT HADN'T BEEN CORRECTED AS OF 2020, UM, IT WAS SINCE CORRECTED IN 2021.
AND THIS RELATED TO THE CONFISCATED PROPERTY, UH, PROGRAM.
THERE WERE, UM, A POLICY THAT IT HAD TO BE FUNDS HAD TO BE, UH, DEPOSITED WITHIN 15 DAYS.
THAT POLICY HAS SINCE BEEN UPDATED TO, SAY, 30 DAYS, UM, TO GIVE THE DEPARTMENT MORE TIME TO DO WHAT THEY NEED TO DO.
AND THEN FINALLY, ONE OF THE BIG THINGS THAT WE DID THIS YEAR IS, UM, GSS B PRONOUNCEMENTS.
THEY'RE ALWAYS COMING OUT WITH NEW THINGS.
SO ONE OF THE BIG ONES THAT WAS IMPLEMENTED THIS YEAR WAS G SS B 84, WHICH IS RELATED TO FIDUCIARY ACTIVITIES.
UM, SO IF YOU, WHEN YOU'RE READING THE ER, YOU KNOW, AT NIGHT, UM, BEFORE BED OR WHATEVER YOU DO WITH IT, UM, YOU WILL NOTICE THAT THE TERM AGENCY FUNDS IS NO LONGER IN THE FER.
UM, THAT'S PROBABLY THE BIGGEST CHANGE THAT YOU WILL SEE.
BUT IT ALSO AFFECTED, UM, SOME REPORTING, UM, GOING FORWARD FOR THE PENSION AND THE OPE, UM, AS WELL AS THE 4 57 PLAN.
AND THEN THERE WERE FOUR OTHER, UM, GS BS THAT WERE IMPLEMENTED AS WELL.
THE, THE MIDDLE THREE DIDN'T HAVE ANY EFFECT ON THE CITY, UM, G SS B 90 92 AND 93.
AND THEN GSS B 98 IS THE WORDING CHANGE OF THE REPORT.
SO LAST YEAR THE REPORT WAS THE COMPREHENSIVE ANNUAL FINANCIAL REPORT, G A SS B 80 98, WHICH THE CITY EARLY IMPLEMENTED, WHICH MELANIE WOULD LIKE TO SAY, SAY, YOU KNOW, THEY EARLY IMPLEMENTED A G A S B STANDARD.
UM, IT CHANGE, IT JUST CHANGES THE WORDING TO ANNUAL COMPREHENSIVE FINANCIAL REPORT.
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WITH THAT, I'LL TURN IT BACK OVER TO ANGIE.SO OUR FINAL COMMUNICATIONS RELATE TO, UM, IN ESSENCE KIND OF OUR REQUIRED COMMUNICATIONS.
AND SO THIS IS IN RELATION TO OUR, UH, QUALITATIVE, QUALITATIVE ASPECTS OF, UH, SIGNIFICANT P POLICIES AND, UM, PRACTICES.
SO FROM A SIGNIFICANT ACCOUNTING POLICIES, THOSE ARE NOTED IN NOTE ONE OF THE FINANCIAL STATEMENTS.
UM, THERE WERE NO ALTERNATIVE ACCOUNTING TREATMENTS THAT WERE NOTED AS PART OF THE AUDIT.
UM, MANAGEMENT'S, JUDGMENTS AND ESTIMATES ARE OF COURSE INCLUDED WITHIN THE AUDIT PROCESS.
AND SOME OF THOSE RELATE TO THE FAIR VALUE OF INVESTMENTS, THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, YOUR ARBITRAGE, REBATE LIABILITY, SELF-INSURANCE, UM, AND THEN THE ACTUARIAL ASSUMPTIONS, UH, AS IT RELATES TO THE OPEP AND NET PENSION, UH, LIABILITIES.
AND SO WE LOOK AT THOSE FOR REASONABLENESS, UM, AND NOTED THAT THOSE WERE ALL REASONABLE.
AND THEN THERE'S FINANCIAL STATEMENT DISCLOSURES, KIND OF SOME SPECIFIC ONES, AGAIN, RELATED TO, UH, SEVERAL OF THE ESTIMATE AREAS THAT ARE NOTED, UH, WITHIN THE FINANCIAL STATEMENTS THAT WE HAVE INCLUDED ON THAT SLIDE.
AND THEN FROM A REQUIRED COMMUNICATION STANDPOINT, UH, WE JUST WANTED TO MAKE YOU AWARE, UM, THAT THERE WERE NO MATTERS REPORTABLE RELATED TO THE QUALITY OF THE CITY'S ACCOUNTING PRINCIPLES.
UM, THERE WERE NO MATTERS, REPORTABLE OTHER INFORMATION, UM, AND DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS.
SO THAT WOULD BE IN THIS SITUATION WHERE, UM, THE CITY INCLUDES THE AUDITED FINANCIAL STATEMENTS, SAY, FOR EXAMPLE, IN AN OFFICIAL STATEMENT.
AND SO, UH, THOSE IN ESSENCE SOMETIMES GET REVIEWED JUST FOR CONSISTENCY.
UH, WE HAD NO DISAGREEMENTS WITH MANAGEMENT.
UM, WE'RE NOT AWARE OF ANY CONSULTATIONS WITH OTHER ACCOUNTANTS ON ACCOUNTING MATTERS.
UM, ALSO THERE WERE REALLY NO SIGNIFICANT MATTERS, UM, DISCUSSED WITH MANAGEMENT OUTSIDE OF, UM, THE OMISSION OF CERTAIN COMPONENT UNITS BECAUSE THEY WERE NOT, THEY'RE SEPARATE AUDITS THAT ARE DONE BY SEPARATE AUDITORS.
UH, WERE NOT COMPLETED PRIOR TO THE TIME THAT THE CITY'S AUDIT WAS COMPLETED.
SO, UM, THOSE HAVE BEEN OMITTED AND THERE'S A FOOTNOTE DISCLOSURE THAT, UH, IDENTIFIES THAT, UM, WE DIDN'T HAVE ANY DIFFICULTIES ENCOUNTERED IN THE AUDIT.
UM, AND THEN OUTSIDE OF THE MANAGEMENT REPRESENTATION LETTER THAT MANAGEMENT PROVIDES TO US AT THE END OF THE AUDIT, THERE WERE NO OTHER, UM, SIGNIFICANT COMMUNICATIONS.
AND THEN WE HAVE, JUST REAL QUICKLY IN THE APPENDIX, JUST FOR YOUR BENEFIT, THERE STILL ARE, UH, SEVERAL G A SS B STANDARDS THAT ARE, UM, ON THE HORIZON THAT WILL BE EFFECTIVE FOR FISCAL YEAR 22 AND FISCAL YEAR 2023.
UM, THE BIGGEST ONE THAT WILL BE, UM, THAT THE CITY'S BEEN WORKING THROUGH FOR SEVERAL YEARS NOW IS IN RELATION TO G A SS B 87, WHICH IS THE IMPLEMENTATION OF THE LEASE STANDARD, UH, WHERE LEASES WILL NOW ALL BE PRESENTED ON THE, UM, BALANCE SHEET OR THE STATEMENT OF, UM, OR BALANCE SHEET, BASICALLY.
AND SO THOSE WILL ALL BE REFLECTED THERE.
UM, AND SO THAT'S GONNA BE A BIG, UH, IMPLEMENTATION FOR F Y 22.
AND THEN JUST TO BE AWARE THAT, UM, WE TALKED ABOUT HOW WE AUDITED THE STATE PROGRAMS UNDER THE, UH, UNIFORM GRANT MANAGEMENT STANDARDS, UH, WHICH IS FROM THE STATE OF TEXAS.
THEY HAVE ISSUED A NEW TEXAS GRANT MANAGEMENT STANDARDS THAT IS EFFECTIVE FOR ANY AWARDS THAT ARE RECEIVED, UM, AS OF JANUARY 1ST, 2022.
AND SO THAT WILL BE THE NEW, UH, STANDARD, UH, THAT WILL BE FOLLOWED.
UM, THERE ARE SOME NUANCES IN THERE, UM, AND SOME THINGS THAT DIDN'T CARRY OVER FROM THE UNIFORM GRANT MANAGEMENT STANDARDS THAT I THINK THEY'LL HAVE TO, YOU KNOW, KIND OF TAKE A LOOK AT.
BUT IT IS DESIGNED TO BE A LITTLE BIT MORE IN LINE WITH, UH, THE FEDERAL REQUIREMENTS UNDER UNIFORM GUIDANCE.
AND SO JUST WANTED TO BRING THAT TO YOUR ATTENTION.
BUT WITH THAT, UM, THAT EFFECTIVELY CONCLUDES WHAT WE WANTED TO COMMUNICATE WITH YOU TODAY RELATIVE TO THE SCOPE OF THE AUDIT AND THE RESULTS OF THE AUDIT FOR FISCAL YEAR 2021.
AND IF THERE ARE ANY QUESTIONS, WE ARE MORE THAN HAPPY.
I'M ABOUT TO SAY NO DELIBERATION.
WELL, WE REALLY DO APPRECIATE, UH, THE BRIEFING, AND I REALLY APPRECIATE THE RESULTS.
THIS, THIS IS A GREAT REPORT AND IT SHOWS A STRING OF, UH, YOU KNOW, GREAT REPORTS, UH, FROM Y'ALL.
SO, UH, WE REALLY APPRECIATE THAT.
AND, UM, UM, SIR, DID YOU HAVE ANYTHING YOU WANT TO YEAH, I JUST DON'T WANT TO GET IN TROUBLE WITH THE LAWYER.
WHAT, WHAT AM I NOT ALLOWED TO DO HERE? YOU KNOW, I WOULD, I WOULD GENERALLY SAY QUESTIONS.
LET'S NOT HAVE ANY BACK AND FORTH DELIBERATION.
OR ANY STATEMENTS OR, YEAH, SURE.
UM, YOU KNOW, WE, UH, WE ALWAYS HAVE OUR CRITICS, UH, OUT THERE, RIGHT? AND, UH, ONE OF THE, ONE OF THE MOST POPULAR CRITICISMS THAT WE GET, UM, IS, UH, WELL, SOMEBODY SHOULD AUDIT YOU GUYS.
AND WE SAY, WELL MEET KEVIN BARTH HOLE.
AND, UM, SO FAR THINGS HAVE BEEN PRETTY GOOD WITH KEVIN ON, YOU KNOW, DOING THAT.
UM, AND THEY'RE LIKE, YEAH, WELL, YOU
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SHOULD HAVE A THIRD PARTY AUDIT MEET B K DAND, UH, YOU KNOW, SO FAR THEY, YOU KNOW, AND THESE ARE TRUSTED ADVISORS FROM WHAT I CAN SEE ON THE, ON THE WEBSITE, ON THE POWERPOINT SLIDES.
UM, AND THEN WHEN, WHEN THEY DON'T HAVE, WHEN THEY FINALLY REALIZE THAT, THEN THEY, THEY ALWAYS GO TO THE TRIED AND TRUE.
AND SO, YOU KNOW, THERE'S NOTHING WE CAN DO ABOUT YEAH, BUT STILL, BUT WE CAN DELIVER A CLEAN AUDIT EVERY SINGLE TIME.
AND, AND THAT, THAT MAKES ME PROUD.
AND, UM, THERE WAS A TIME WHERE, UH, IN, IN A PRIOR JOB I HAD TO SPEND A LOT OF TIME WITH AUDITORS, UH, AND I LEARNED MORE ABOUT THE MONTE CARLO SIMULATIONS, UH, AND, YOU KNOW, THE, ALL THAT STUFF, AND THAT I STILL CAN'T FORGET.
AND NO MATTER HOW HARD I TRIED, I STILL CAN'T FORGET, UH, ALL THE THINGS THAT YOU GUYS HAVE TO REMEMBER.
AND I'M, I'M VERY IMPRESSED WITH THE PRESENTATION.
I, I DO HAVE SOME QUESTIONS, UH, AND THEY'RE NOT HARD ONES.
UM, WHY DOES IT TAKE S A P D 30 DAYS? WHY CAN'T THEY DO IT WITHIN 15 DAYS? DEPOSIT THE CASH? LIKE WHAT, WHAT'S, WHAT'S THE BOTTLENECK THERE? IT'S ACTUALLY A CONTRACT ARRANGEMENT BETWEEN THEM AND BEXAR COUNTY.
RELATED TO CASES AND WHEN THEY SETTLE AND GETTING THE MONEY BACK.
AND THEN, UM, I, I WAS LISTENING.
GS B 87 SAYS THAT WE'VE GOTTA START PUTTING OUR, START REFLECTING OUR LEASES ON OUR, UH, ON OUR BALANCE SHEET.
BUT BEN ISN'T, HAVEN'T WE ALWAYS DONE THAT? CAN I ANSWER THAT? I JUST DID
SO LEASES, IF YOU HAVE OPERATING LEASES, THINK OF PRINTERS AND COPIERS.
THOSE WOULD SOMETIMES RUN THROUGH THE OPERATING STATE THAT YOUR INCOME STATEMENT, THEY NOW HAVE TO GO TO THE BALANCE SHEET IF THEY'RE OVER A YEAR.
I, I, I THOUGHT WE WERE TALKING ABOUT LIKE BIG REAL ESTATE LEASES OR SOMETHING LIKE THAT.
BUT THOSE, THOSE ONES MAY HAVE BEEN ON OUR FINANCIALS IF THEY'RE NOT OPERATING.
WELL, UM, YEAH, BEN, SO JUST THINK ABOUT IN TERMS OF, OF G A, SS B WILL ISSUE NEW STANDARDS, SO THEY'LL CHANGE HOW WE ACCOUNT FOR THINGS.
SO, UM, MANY TIMES WHEN WE ARE IMPLEMENTING ONE OF THESE GSS B STATEMENTS, WE MAY ALREADY BE ACCOUNTING FOR IT IN SOME FORM OR FASHION, BUT IT'S GONNA CHANGE THE WAY WE DO IT GOING FORWARD.
SO THAT'S REALLY WHAT BELL'S DESCRIBING.
WELL LISTEN, UM, THE, UM, THE MEN IN BLACK AND THE WOMEN IN BLACK WHO ARE ALL OF OUR AUDITORS AND THE AUDITING TEAM THAT YOU PUT TOGETHER, UH, I'M SHOCKED THAT YOU GUYS MANAGED TO DO IT ALL REMOTELY.
I, I MEAN THAT, THAT'S ACTUALLY REALLY IMPRESSIVE.
UH, I, I DIDN'T KNOW THAT THAT WAS POSSIBLE.
SO MY QUESTION IS, AND IT'S THE LAST QUESTION, UH, IS THAT HOW WE'RE GONNA CONTINUE TO DO IT GOING FORWARD? I MEAN, IT SEEMS TO WORK GREAT,
SO IT, IT WILL BE SOMETHING WE WILL LOOK AT IN THE FUTURE AND HOW DOES IT WORK, ESPECIALLY AS WE'VE MOVE INTO CITY TOWER AND HAVE DIFFERENT SPACING LIMITATIONS.
'CAUSE I IMAGINE YOU GUYS LEARNED SOME EFFICIENCIES, RIGHT? UM, THROUGHOUT, YOU KNOW, COVID MADE YOU GUYS LEARN HOW TO DO THINGS A LITTLE LEANER AND MEANER AND FASTER AND BETTER.
AND SO, UM, YOU KNOW, I MEAN, IF YOU GUYS ARE A SHARPER KNIFE, I'D LOVE TO, I'D LOVE TO HEAR HOW IT IS THAT YOU, YOU KNOW, YOU'RE GONNA USE THOSE LESSONS, UH, FOR THE NEXT AUDIT.
BUT, UM, B K THANK YOU FOR YOUR SERVICE.
I, I, I WANT TO GIVE Y'ALL A HAND FOR THE CITY STAFF FOR COMING OUTTA THIS, UH, LOOKING REALLY GOOD.
WITHIN, SO CHAIRMAN, IF I CAN JUST MAKE A COUP COUPLE OF COMMENTS.
I JUST WANT TO THANK, UH, B K D ANGIE TEAM.
IT'S BEEN, UH, GREAT WORKING WITH THEM FOR THE PAST FIVE YEARS.
UH, PARTICULARLY ANGIE, I'VE KNOWN FOR A WHILE APPRECIATE THEIR PROFESSIONALISM, THE THOROUGHNESS, UH, DEALING WITH THE CHA CHALLENGES OF COVID.
AND, YOU KNOW, UH, COUNCILMAN PALAIS JUST MENTIONED THE CHALLENGES OF HAVING TO DO A LOT OF THIS REMOTELY.
BUT AT THE END OF THE DAY, WE CERTAINLY FELT LIKE WE GOT SCRUBBED, WE GOT AUDITED, THEY LOOKED AT THE THINGS THEY NEEDED TO LOOK AT, WE WERE ABLE TO ACCOMPLISH THAT.
SECONDLY, I REALLY WANT TO CONGRATULATE AND THANK TROY, MELANIE VICKY, UH, THE ENTIRE TEAM.
UH, THIS IS A HUGE EFFORT FOR THIS ORGANIZATION.
WE DO A LOT OF DIFFERENT THINGS.
AND THEN WHEN YOU LAYER IN ALL OF THE ADDITIONAL FEDERAL FUNDING THAT WE GOT MM-HMM.
UM, THEY CONTINUE TO, TO DO IT YEAR AFTER YEAR.
THEY SET A VERY HIGH BAR FOR THEMSELVES, BUT THEY CONTINUE TO EXCEED THAT BAR.
SO I JUST WANNA CONGRATULATE AND THANK THE ENTIRE TEAM.
MAY I JUST SAY A COUPLE OF WORDS ALSO? YEAH, SURE.
FROM MY PERSPECTIVE, AS SOMEONE WHO'S NOT INVOLVED IN THE DAILY ACTIVITIES OF, OF FINANCE AND OPERATIONS AND ACCOUNTING, UH, AND I WAS TALKING TO TROY ABOUT THIS EARLIER, THE FACT THAT THEY'VE GONE FOUR YEARS YEAH.
I, I HONESTLY DON'T THINK THAT COUNCIL, UH, REALIZES THE MAGNITUDE OF THAT ACCOMPLISHMENT.
AND AS SOMEONE INDEPENDENT, I JUST WANTED TO, UH, YOU KNOW, COMPLIMENT THE TEAM ALSO AND, AND TROY AND BEN'S LEADERSHIP IN THAT THIS REALLY IS A BIG DEAL THAT I DON'T THINK PEOPLE GRASP.
[00:25:01]
YOU'RE ABSOLUTELY RIGHT.AND, UM, UM, THIS DOESN'T GO TO COUNCIL, THIS IS JUST FOR BRIEFING TODAY.
SO, UH, BUT WE'LL PASS THIS ALONG TO OUR COUNCIL COLLEAGUES AND LET, LET THEM KNOW HOW, HOW GREAT THIS IS AND, AND, UH, GET THEM TO RECOGNIZE EVERYONE AS WELL.
THAT'S THE WAY TO START OFF THE MEETING HERE.
UH, SEE, WE STILL DON'T HAVE OUR COLLEAGUE
[Staff Briefing ]
HERE, BUT WE TALKED ABOUT, UH, NUMBER 11 ALSO.LET'S GO AHEAD AND DO THAT, YOU KNOW, AS, AS, AS I'M STARTING THIS AS AN AUDITOR.
I'M USED TO BEING ABLE TO CLEAR A ROOM, YOU KNOW, I JUST, YOU KNOW, I COME UP IN THE ROOM CLEARS.
UH, COUNCILMAN PERRY, UH, IN, UH, COMMITTEE, UH, JUST WANNA GIVE THE BRIEFING, UH, OF SOME ADDITIONAL AUDIT RESULTS.
UH, YOU KNOW, ONE QUESTION THAT I GET A LOT IS WHO AUDITS THE AUDITOR? UH, YOU KNOW, WE'RE THE INDEPENDENT EX, UH, INTERNAL AUDITORS FOR THE CITY.
AND YES, WE DO GET AUDITED ALSO.
AND IT'S A REQUIREMENT, UH, PER CITY ORDINANCE REQUIRES THAT AS AN AUDIT GROUP THAT WE FOLLOW THE, THE GOVERNMENT AUDITING STANDARDS KNOWN AS GAGS.
AND THOSE STANDARDS REQUIRE THAT EVERY THREE YEARS WE HAVE TO UNDERGO A PEER REVIEW, WHICH IS BASICALLY AN AUDIT.
NOW, I WILL SAY, BECAUSE OF THE PANDEMIC, IT'S BEEN JUST OVER FOUR YEARS SINCE OUR LAST AUDIT.
BUT, UH, GAGS, UH, THE G A O ACTUALLY GAVE THE EXCEPTION THAT WE COULD, YOU KNOW, WAIT THE FOUR YEARS TO STILL BE WITHIN COMPLIANCE.
SO THE PURPOSE OF THIS REVIEW THAT WE HAD DONE WAS TO DETERMINE IF WE ARE IN FACT, IN COMPLIANCE WITH THESE STANDARDS.
AND THESE STANDARDS ARE EXTENSIVE.
UH, YOU KNOW, IT'S A BOOK OF STANDARDS THAT WE HAVE TO FOLLOW.
AND THE POSSIBLE OUTCOMES OF THIS, UH, REVIEW WOULD BE THAT WE PASS, WE PASS WITH DEFICIENCIES, WHICH ARE BASICALLY MANAGEMENT LETTER FINDINGS, OR WE COULD JUST OUTRIGHT FAIL THE AUDIT IF WE DON'T, UH, PERFORM WELL.
AND THERE'S TOO MANY MANAGEMENT.
UH, WE DO THIS AUDIT THROUGH AN AGREEMENT THAT WE HAVE.
WE, THE ASSOCIATION OF LOCAL GOVERNMENT AUDITORS, UH, AN INTERNATIONAL FIRM.
AND SO IT'S BASICALLY CONDUCTED BY THREE PEERS THAT WE CONTRACT THROUGH THE ASSOCIATION AND JUST THE THREE INDIVIDUALS THAT DID THIS AUDIT.
IT WAS KEITH CHEATER OUT OF, UH, CITY OF CHESAPEAKE, UH, OGLE, OLGA OF RECO FROM UP THE ROAD IN AUSTIN, AND THEN ALSO SCOTT BEMAN.
HE'S FROM FAIRFAX COUNTY GOVERNMENT, ALSO IN VIRGINIA.
THESE ARE GENERALLY IN MANAGEMENT POSITIONS, IN OTHER AUDIT, UH, AGENCIES WHO ALSO COMPLY WITH THE GOVERNMENT AUDITING STANDARDS.
UH, THE SCOPE OF THIS AUDIT, AGAIN, IT WAS A THREE YEAR PERIOD FROM SEPTEMBER OF, OR OCTOBER OF 2018 THROUGH RECENTLY, SEPTEMBER 30TH OF 21.
THE PROCESS OF THE AUDIT, WE PROVIDE THEM WITH A SIGNIFICANT AMOUNT OF INFORMATION PRIOR TO THEIR ARRIVAL ON SITE.
UH, THAT'S OUR POLICIES, PROCEDURES, COPIES OF AUDIT REPORTS, BASICALLY ANYTHING THEY ASK FOR.
UH, THEY ALSO LOOK AT OUR QUALIFICATIONS OF OUR STAFF, THINGS OF THAT NATURE.
THEY THEN SPEND FOUR DAYS ON SITE, UH, PERFORMING THE AUDIT.
SO THEY WERE HERE THE WEEK OF MARCH 24TH, I BELIEVE, FOR THOSE FOUR DAYS.
AND AGAIN, THEY CONTINUE THE REVIEW OF THE POLICIES, OUR INTERNAL MONITORING PROCESSES, UH, GO THROUGH OUR WORK PAPERS TO SEE IF THINGS THAT WE REPORT ON ARE PROPERLY DOCUMENTED AND WE HAVE SUFFICIENT AND APPROPRIATE EVIDENCE TO SUPPORT OUR FINDINGS.
AND THEN ALSO REVIEW STAFF TRAINING COMPETENCIES, UH, OUR DEVELOPMENT PROGRAMS. AND THEY INTERVIEW STAFF AND AS WELL AS THEY INTERVIEWED COUNCILMAN PERRY AS PART OF THE PROCESS.
AND ALSO THEY INTERVIEWED ERIC, UH, TO GET THEIR TAKE ON INTERNAL AUDIT AND WHAT WE'RE DOING, AND ARE WE PROVIDING THE NECESSARY, UH, WORK THAT THEY NEED.
UH, THE RESULTS, UH, OF THIS AUDIT WE PASSED WITH FLYING COLORS.
WE PASSED WITH NO RECOMMENDATIONS OR NO FINDINGS, WHICH IS THE BEST POSSIBLE, UH, OUTCOME THAT WE COULD HAVE.
UH, I WILL SAY IT'S KIND OF DISAPPOINTING.
WE PREPARE, THEY DO ALL THE WORK, AND THEN WE GET BASICALLY A ONE PAGE MEMO THAT SAYS, YEAH, YOU'RE GOOD.
AND SO, AGAIN, JUST TO PRO PROVIDE THAT ASSURANCE TO THE AUDIT COMMITTEE SPECIFICALLY THAT, UH, OUR PEER REVIEWS, THE INDEPENDENT AUDIT THAT WE UNDERGO, UH, WAS SUCCESSFUL, NO FINDINGS, AND THEREFORE, NO MORE RECOMMENDATIONS ON THINGS THAT WE NEED TO LOOK AT OR THINGS THAT WE NEED TO IMPROVE.
SO THAT ENDS MY PRESENTATION AND CERTAINLY AVAILABLE FOR ANY QUESTIONS.
UM, I CAN'T REMEMBER THE GENTLEMAN'S NAME THAT CAME AND TALKED TO ME, BUT, UH, CHIEF PETER.
AND, UM, HE WAS, UH, VERY COMPLIMENTARY ON, YOU KNOW, THE COOPERATION AND ALSO, UH, UH, GOING THROUGH WHAT THEY WERE LOOKING AT.
THEY WERE VERY, VERY COMPLIMENTARY ON THE COOPERATION AND, UH, HOW Y'ALL DO BUSINESS HERE.
UM, HE, HE SAID HE WASN'T, HE WASN'T SEEING ANYTHING OUT OUT THAT MADE HIM CONCERNED ABOUT ANY OF THE PROCESSES AND PROGRAMS AND WHAT Y'ALL HAVE BEEN LOOKING AT ALSO.
[00:30:01]
I, I THINK THAT'S A, A GREAT REPORT TO BE GETTING FROM, LIKE YOU SAID, YOUR PEERS OUT THERE, THAT THEY'RE DOING THE SAME THING OUT THERE, AND, UH, GET THAT KIND OF REPORT FROM THEM.EXCELLENT NEWS AGAIN FOR, FOR YOUR OFFICE HERE AS WELL, SIR.
SO AT, AT THE RISK OF, AT THE RISK OF DIMINISHING THIS BIG DEAL, RIGHT? UM, UH, AND, AND MAYBE HURTING YOUR FEELINGS,
THAT, THAT ALL OF YOUR PEERS GAVE YOU AN A PLUS.
UM, AND I, WE, WE HAVE ALL THE CONFIDENCE IN YOU BECAUSE YOU'RE EXCELLENT AND YOU'RE, YOU'VE GOT THE FINEST TOOTH, UH, COMB.
UH, AND YOU, YOU ALWAYS DELIVER RESULTS.
AND, UM, YOU KNOW, WHEN MY KIDS ASK ME TODAY, WHAT, WHAT'D YOU DO? UM, I'LL TELL 'EM THAT I GOT TO HANG OUT WITH THE GUY WHO WON THE LADY GAGA AWARD.
IS THAT WHAT IT WAS? THE GAGAS GAGGAS GAGGAS LADY LADIES.
WHAT DOES THAT STAND FOR?
WELL, I, I THINK WE'RE AT THE END OF OUR DISCUSSIONS THAT WE DIDN'T HAVE TO HAVE.
UH, UM, WELL CHAIR, WHILE YOU'RE ON THAT, ADAM, I'LL JUST CONGRATULATE KEVIN AS WELL.
I, I, I THINK, UM, YOU KNOW, I, I'M NOT SURPRISED EITHER.
I MEAN, OBVIOUSLY OUR TEAMS GET TO ENGAGE A LOT AS KEVIN AND HIS TEAM ARE AUDITING DIFFERENT ASPECTS OF THE CITY.
I'VE ALWAYS FOUND HIM TO BE VERY, HIM AND HIS TEAM TO BE VERY THOROUGH, VERY PROFESSIONAL.
I'M NOT SURPRISED AT ALL, BUT CONGRATULATIONS ON THE WORK.
I DON'T THINK THAT'S EVER HAPPENED TWICE IN THE AUDIT COMMITTEE, EITHER HAVING LOTS OF CONGRATULATIONS IN AUDIT.
THIS, HE'S REAL STINGY WITH THIS
AND IT, IT'S, UH, IT'S BEEN A PLEASURE AND, AND, UM, YOU KNOW, BEING HERE FOR FIVE YEARS, GREAT RESULTS COMING OUT OF THE, OUT OF THE AUDIT TEAM AND, UM, PUTTING A LOT OF STUFF OUT THERE THAT NEEDS TO BE CORRECTED AND, AND, UH, I'VE NEVER, I'VE NEVER SEEN, YOU KNOW, ANY PUSHBACK FROM STAFF EITHER ABOUT, UM, YOU KNOW, FINDINGS AND, AND PROGRAMS. WELL, I'LL TAKE THAT BACK.
I'M NOT GONNA SAY WHAT THAT WAS, BUT I, I, BUT IT RESOLVED AS WELL, SO, YEAH.
AND IF WE HAD A QUORUM, I'D MAKE A MOTION THAT YOU GET THE EMPLOYEE OF THE MONTH.
WELL, UM, DOES ANYBODY KNOW WHERE COUNCILMAN MCKEE RODRIGUEZ IS? ARE THEY STILL TIED UP IN A MEETING OVER THERE? DOES ANYBODY KNOW? HE'S GETTING AUDITED.
I, I THINK THEY'RE CHECKING ON WE AN A P B OUT ON HIM.
WHERE'S THE CHIEF? I MEAN, I COULD, IF YOU WANT TO, WE COULD, UM,
SO YOUR PRES SOLICITATION ITEM SIX AND SEVEN, WE COULD BEGIN THE BRIEFING.
UH, WE CAN'T, AS I UNDERSTAND, WE WOULDN'T BE ABLE TO DELIBERATE NECESSARILY, BUT WE CAN START TO BRIEF YOU ON THOSE.
UH, AND THEN IF WE GET A QUORUM, THEN YOU COULD MOVE INTO DELIBERATION.
SO THAT'S AN OPTION IF YOU WANT TO PURSUE THAT.
[Pre-Solicitation High Profile Briefings ]
PRES SOLICITATION AREAS HERE.PRES SOLICITATION HIGH PROFILE BRIEFINGS.
SO THIS FIRST ITEM, ITEM SIX, WOULD BE A PRES SOLICITATION BRIEFING.
NOT ASKING YOU TO TAKE ANY ACTION TODAY.
UH, BUT WE'LL BE SEEKING THE COMMITTEE'S INPUT ON, UH, THE R F P THAT WILL BE ISSUING FOR FEDERAL REPRESENTATION SERVICES.
UH, SO SALLY'S HERE FROM OUR, UH, GOVERNMENT AFFAIRS DEPARTMENT TO BRIEF YOU.
GOOD AFTERNOON, CHAIRMAN PERRY.
COUNCILMAN PALAIS, THANK YOU FOR THE OPPORTUNITY TO PRESENT TO YOU TODAY AN OVERVIEW OF TWO R F P, UH, FEDERAL REPRESENTATION SERVICES CONTRACTS.
A QUICK NOTE BEFORE I GET STARTED.
THE PRESENTATION THAT YOU RECEIVED LAST WEEK HAS, UM, ONE ITEM THAT'S UNDER THE SOLICITATION OVERVIEW THAT I WILL POINT OUT DIRECTLY TO TODAY UNDER THE COMMITTEE MEMBERSHIP.
BY WAY OF BACKGROUND, THE CITY OF SAN ANTONIO HAS RETAINED, UH, FEDERAL CONSULTANTS OVER THE LAST, UH, 26 PLUS YEARS IN ORDER TO REPRESENT ITS INTEREST IN WASHINGTON D C, OUR FEDERAL CONSULTANTS PROVIDE SERVICES IN WASHINGTON TO HELP DEVELOP, SUPPORT AND, UH, IMPLEMENT THE CITY'S FEDERAL LEGISLATIVE PROGRAM, WHICH CONTAINS PRIORITIES AS APPROVED, UH, BY CITY COUNCIL EVERY TWO YEARS.
ADDITIONAL SERVICES INCLUDE THE MONITORING AND TRACKING OF
[00:35:01]
LEGISLATIVE AND REGULATORY ACTIVITIES, DEVELOPING STRATEGIES, IDENTIFYING GRANT OPPORTUNITIES YEAR ROUND, AS WELL AS DEVELOPING STRATEGIES AND RELATIONSHIPS WITH ELECTED OFFICIALS AND AGENCIES.UM, AND OF COURSE, ONGOING COORDINATION WITH CITY STAFF AND CITY OFFICIALS.
TO MY NEXT SLIDE, SORRY ABOUT THAT.
SOLICITATION TYPE IS R F P, ESTIMATED VALUE FOR THIS.
R F P IS 300,000 ANNUALLY AND 1.8 TOTAL.
PROPOSED TERM IS TWO YEARS WITH A TWO YEAR RENEWAL OPTION.
THE CURRENT CONTRACT EXPIRES AT THE END OF THIS YEAR ON DECEMBER 31ST.
CONTINUING ON THE WASHINGTON D C REPRESENTATION, THE EVALUATION CRITERIA UNDER EXPERIENCE, BACKGROUND, AND QUALIFICATIONS IS 45 POINTS.
THE PROPOSED PLAN IS 40 POINTS PRICING, 10 POINTS IN VETERAN-OWNED SMALL BUSINESS PREFERENCE PROGRAM IS FIVE POINTS.
THE ADDITIONAL REQUIREMENTS INCLUDE A LOCAL PREFERENCE PROGRAM, WHICH WAS NOT APPLICABLE, AS WELL AS THE AUDITED FINANCIAL STATEMENTS.
THE VETA PROGRAM WAS WAIVED AS IN THE LAST, UM, ROUND R F P AS WELL, PRIMARILY BECAUSE OF THE NATURE OF THE WORK THAT'S CONDUCTED IN WASHINGTON DC AND TO ENSURE THAT SUFFICIENT NUMBER OF RESPONDENTS OR OUR POOL, UM, SUBMITS, UM, TO, TO THIS PARTICULAR R F P OUT OF THE WASHINGTON DC AREA FOR THE SERVICES ONTO THE PROJECT AND SOLICITATION OVERVIEW FOR THE LOCAL LIAISON, THE SAME AS THE WASHINGTON DC REPRESENTATION.
UM, THIS PARTICULAR FIRM OR INDIVIDUAL WOULD HELP WITH THE DEVELOPMENT OF THE FEDERAL LEGISLATIVE PROGRAM SUPPORT AND IMPLEMENT IT, UM, THROUGHOUT THE COURSE OF, OF THE CONTRACT.
UM, IN ADDITION, UM, TO THAT WORK, THIS INDIVIDUAL OR FIRM WOULD HAVE TO HAVE EXTENSIVE KNOWLEDGE, UM, OF THE SAN ANTONIO COMMUNITY WORK ONGOING, UH, COORDINATION WITH GA STAFF ACT AS A INTERMEDIARY BETWEEN THE CITY AND REPRESENTATIVES IN WASHINGTON, DC AS WELL AS REPRESENT THE DC TEAM HERE LOCALLY WITH CITY COUNCIL STAFF AND OUR PARTNERS.
SOLICITATION TYPE, AGAIN, IS AN R F P.
ESTIMATED VALUE FOR THE LOCAL IS 45,000 ANNUALLY, 270,000 TOTAL.
AGAIN, THE PROPOSED TERM IS TWO YEARS, UH, TWO RENEWAL OPTIONS.
AND THAT CONTRACT AS WELL EXPIRES AT THE END OF THE YEAR IN DECEMBER.
THE SOLICITATION REQUIREMENTS EVALUATION CRITERIA FOR EXPERIENCE, BACKGROUND, AND QUALIFICATIONS, UM, WILL HAVE 35 POINTS.
THIS ONE DOES INCLUDE VEDA, UH, 10 POINTS LOCAL PREFERENCE PROGRAM AS WELL FOR 10 POINTS.
AND VETERAN OWNED ITS SMALL BUSINESS, UM, IS FIVE POINTS.
ADDITIONAL REQUIREMENTS, UH, AUDITED FINANCIAL STATEMENTS, NOT APPLICABLE.
AND THE VEDA SUBCONTRACTING REQUIREMENTS IS 11%.
ONTO THE VEDA GOAL SETTING OVERVIEW, THERE WERE VARIOUS MEMBERS, UM, FROM CITY STAFF THAT ARE INCLUDED HERE, THAT WERE REPRESENTED FROM ECONOMIC DEVELOPMENT, PARKS, FINANCE AND GOVERNMENT AFFAIRS.
UM, THE A P A APPLIED AS, AS YOU CAN SEE HERE, WAS PROGRAM CRITERIA 10 POINTS, UH, PRIME CONTRACT PROGRAM, FIVE POINTS, UM, M W B E PRIME CONTRACT FIVE POINTS.
AND AGAIN, THE EDDA SUBCONTRACTING FOR 11%.
THE AVAILABILITY ANALYSIS THAT YOU SEE HERE FOR OPPORTUNITIES FOR THE S MWBES WITHIN THE SCOPE OF WORK PERCENTAGE FOR THE SAME AVAILABLE IN THE CENTER VENDOR REGISTRY.
AND UTILIZATION, AGAIN, OF SS MWBES ON HISTORIC PROJECTS SIMILAR IN NATURE.
THE AVAILABILITY ANALYSIS THAT YOU SEE HERE, THIS IS THE SOLICITATION OVERVIEW.
WE WANT TO ENSURE THAT THE OUTREACH INCLUDES, UM, A WIDE, UH, RANGE OF OUTREACH, UM, IN WASHINGTON DC.
SO THIS IS WHAT FINANCE WILL BE, UH, FACILITATING AND ASSISTING US WITH.
UH, CENTRAL VENDOR REGISTRY IS 35.
UH, THE VETERAN OWNED SMALL BUSINESS, THERE WAS ZERO, UM, DC TARGETED VENDOR OUTREACH WILL BE A MINIMUM OF 45, AND THAT WILL INCLUDE A LIST THAT THE GOVERNMENT AFFAIRS TEAM WILL HELP FINANCE PUT TOGETHER IN ORDER TO HAVE A BROAD, WIDE REACH, UM, OF RESPONDENTS IN THE WASHINGTON DC AREA.
FOR THIS CONTRACT, THE ADVERTISING WILL INCLUDE, UM, OUR LOCAL CHANNEL, T B SS A, THE COSA, UH, OPPORTUNITIES, UH, BIDDING WEBSITE, AND OF COURSE, OUR LOCAL EXPRESS NEWS.
THE HILL AND POLITICAL SPECIFICALLY TARGET, UM, A NATIONAL PLATFORM, UM, SPECIFICALLY TARGETING WASHINGTON DC FIRMS. AS YOU SEE HERE, THIS IS THE EVALUATION, UH, VOTING MEMBERS.
UM, THE ONE ADDITIONAL INDIVIDUAL MEMBER THAT WAS NOT IN YOUR ORIGINAL PRESENTATION WAS MR. POLANCO.
WE WANTED TO MAKE SURE THAT WE HAD A WIDE RANGE OF DIVERSE REPRESENTATION FROM THE CITY, FROM THE CITY MANAGER'S
[00:40:01]
OFFICE, GOVERNMENT AFFAIRS, AVIATION, TRANSPORTATION.WE WORKED VERY CLOSELY WITH THESE DEPARTMENT HEADS AND A LOT OF, UH, TRANSPORTATION, UH, RELATED AND OTHER FEDERAL ITEMS, AS WELL AS TWO REPRESENTATIVES FROM THE COMMUNITY, DEBORAH GUERRERO FROM THE N R P GROUP, AS WELL AS MR. POLANCO, UM, DIRECTOR OF GOVERNMENT AFFAIRS FOR VISIT SA.
THIS IS THE PROJECT, UM, TIMELINE THAT YOU SEE HERE.
SO THE LOCAL LIAISON GO SETTING TOOK PLACE ON APRIL 12TH.
PRES SOLICITATION BRIEFING WILL BE ON APRIL 27TH.
THE PRE-SUBMIT CONFERENCE COMING UP ON MAY 16TH, THE DEADLINE FOR RESPONDENT QUESTIONS WILL BE MAY 23RD.
AND THE DUE DATE FOR THE, UM, R F P SUBMISSIONS IS JUNE 21ST.
UM, THE EVALUATION COMPLETION WILL AIM FOR AUGUST OF THIS YEAR.
UH, CONTRACT NEGOTIATIONS AUGUST, SEPTEMBER OF 22, AND THEN THE POST SOLICITATION BRIEFING, UM, SEPTEMBER 28TH.
UM, THE FINAL PIECE WILL BE COUNSEL CONSIDERATION IN OCTOBER.
AND THEN CONTRACTS START DATE ON JANUARY 1ST, 2023, WHICH WILL ALIGN WITH THE NEW CONGRESSIONAL SESSION.
THAT CONCLUDES MY PRESENTATION.
I'M AVAILABLE FOR ANY QUESTIONS.
SALLY AND RAY, WHAT CAN WE TALK ABOUT OR WHAT CAN'T WE TALK, BECAUSE I GOT A TON OF QUESTIONS ON THIS AND I CAN SENSE THAT SHOULD PROBABLY BE, SO THE ISSUE IS THAT WE'RE
UM, SO THE ISSUE RIGHT NOW IS THAT WE'RE NOT HAVING AN OFFICIAL MEETING BECAUSE THERE IS NOT A QUORUM.
UH, SO THAT WAY ANY ACTION THAT YOU TAKE, UH, WOULD BE VOID.
THERE MAY NOT BE ANY ACTION HERE, BUT WE, IF WE START DOING DELIBERATIONS, YOU KNOW, THERE SOMEONE COULD MAKE AN ARGUMENT AND SAY THAT WE'RE HAVING A MEETING WHICH WE ARE HOLDING ILLEGALLY, UH, BECAUSE IT DOESN'T COMPLY WITH THE, UH, UH, OPEN MEETINGS ACT.
SO THAT, THAT'S, THAT'S WHAT I WILL OFFER THAT AS A WARNING TO BOTH OF YOU.
JUST SO YOU KNOW, I DON'T WANT TO GET EITHER OF YOU INTO.
AND I, I, I HAVE A LOT OF QUESTIONS AND COMMENTS ABOUT S BETA PROJECT, TIMELINE, ALL THAT KIND OF STUFF.
ON, ON THESE, UH, ON THIS SOLICITATION.
SO DO WE HOLD THIS FOR THE NEXT MEETING TO GO THROUGH THAT AND TO MAKE COMMENTS FOR THIS SOLICITATION? OR, OR WHAT? SO I, I COULD RECOMMEND EITHER THAT YOU MAKE YOUR, YOU KNOW, YOUR QUESTIONS AND INDIVIDUALLY CONTACT EITHER SALLY OR, UM, YOU KNOW, JEFF OR ANYBODY ELSE WHO, WHO WOULD HAVE THOSE ANSWERS? IT SPEEDA MIGHT BE, UM, BRENDA OR ALEX.
UH, BUT I WOULD, I WOULD REFRAIN FROM HAVING THE BACK AND FORTH IN THIS MEETING RIGHT NOW.
COULD I JUST MAKE MY COMMENTS HERE AND OR NOT, YEAH.
WE'RE EACH GETTING A LITTLE MORE UNCOMFORTABLE AS YOU'RE MORE AND MORE UNCOMFORTABLE.
UH, WE'LL, I, I'LL I'LL GET MY COMMENTS TOGETHER AND EMAIL 'EM OR WHATEVER TO YOU, SALLY, AND THEN YOU CAN DISTRIBUTE THOSE OUT TO WHOMEVER FOR QUESTIONS COME BACK.
BUT DOES THIS, THIS IS NOT FOR MOVING TO THE COUNSELOR OR ANYTHING, THIS IS JUST YOUR BRIEFING THE PRES SOLICITATION HERE, RIGHT? THAT IS CORRECT, COUNSEL.
UM, THIS IS THE VERY FIRST STEP IN THIS PROCESS.
WELL, I WILL GATHER MY COMMENTS TOGETHER AND SEND THOSE TO YOU, AND WE'LL GO FROM THERE.
BUT DOES THAT THEN COME BACK AGAIN TO THIS COMMITTEE ON WHAT THE, THE FINAL PACKAGE IS GONNA LOOK LIKE BEFORE IT GOES OUT? SALLY, WHAT'S YOUR TIMELINE FOR TRYING TO GET THIS RELEASED? I DON'T WANNA, SO WE WERE TRYING TO KICKSTART THE PROCESS THAT INCLUDES THE FINANCE CONTRACTS TEAM NEXT WEEK.
I THINK THIS ONE IS ONE THAT WE COULD PROBABLY BRING BACK IN A MONTH.
UM, I THINK WE'VE GOT A COUPLE OF THINGS ON POSTS, SOLICITATION, THOUGH WE WOULD LIKE TO MOVE TO THE FULL COUNCIL.
SO I CAN PROBABLY DO A COUPLE OF THINGS.
I CAN PROBABLY, UM, SEND YOU THE INFORMATION, UM, AND PACKAGE IT UP, UH, OVER THE NEXT WEEK OR SO, AND THEN FOLLOW UP WITH YOU, EACH OF YOU INDIVIDUALLY TO SEE IF YOU HAVE ANY QUESTIONS.
UH, AND GO AHEAD AND MOVE THOSE TO THE FULL, FULL COUNCIL IF YOU'RE OKAY WITH THAT.
UH, OR I CAN TRY TO GET ANOTHER AUDIT COMMITTEE MEETING SCHEDULED, YOU KNOW, IN THE NEAR TERM.
I KNOW THAT'S CHALLENGING WITH EVERYBODY'S CALENDARS.
UM, BUT THERE ARE SEVERAL, THERE ARE SEVERAL ITEMS WE WOULD LIKE TO GET TO THE COUNCIL AGENDA PROBABLY WITHIN THE NEXT COUPLE OF WEEKS.
WELL, HOWEVER WE CAN DO THAT ON, YOU KNOW, IF WE CAN DO THAT ELECTRONICALLY, THAT WOULD BE GREAT.
I DON'T HAVE A PROBLEM WITH THAT AT ALL.
UM, BUT YEAH, TO CONVENE ANOTHER MEETING,
[00:45:01]
I DON'T SEE THAT HAPPENING BEFORE NEXT, NEXT MEETING.SO I'M, I'M GONNA MAKE NO COMMENTS THAT OFFEND YOU OR AURORA, UH,
AND SO I, NUMBER ONE, THANK YOU, SALLY.
UH, AND I KNOW THAT PUTTING THESE TOGETHER IS HARD AND, UH, AND THIS IS YOUR FIRST ONE NOW IN YOUR NEW ROLE, RIGHT? RIGHT.
THE SECOND THING IS JUST A QUESTION ABOUT PROCEDURE.
UM, I I, I DON'T WANNA STEP ON THE CHAIRMAN'S TOES AND, AND YOU KNOW, WE'RE ALL THE, WE'RE ALL VERY CAREFUL ABOUT WHAT OUR COMMITTEES GET TO DO AND WHAT OTHER COMMITTEES DON'T.
BUT IF THERE'S URGENCY ON THIS ONE, CAN ANOTHER COMMITTEE TAKE IT UP? UH, YOU KNOW, I, I, DURING, UM, THEIR UPCOMING MEETINGS, I MEAN IF, OR BRIEF THESE INDIVIDUALLY TO THE COUNCIL NEXT WEEK.
CAN YOU DO THAT? SO, SO AGAIN, THIS ONE, I, I THINK WE COULD, UM, WAIT TILL THE NEXT MONTH.
OR COUNCIL, YOU COULD GO TO I G R AND YEAH, I'D, I'D LIKE ON, ONTO THIS ONE.
UH, BUT THERE'S A COUPLE OF OTHERS HERE.
THIS IS PRES SOLICITATION, RIGHT? SO IT'S REALLY ASKING YOUR INPUT ABOUT THE SOLICITATION, HOW WE'RE GONNA DO IT, UH, AND WHETHER YOU HAVE ANY COMMENTS, CONCERNS, OR THOUGHTS ABOUT THAT.
UM, THERE'S A COUPLE OF THINGS ON HERE THAT ARE ON THE POSTS.
SOLICITATION, MEANING WE'VE GOTTEN PROPOSALS, THEY'VE SCORED, THEY'RE READY TO MOVE FORWARD TO FULL COUNSEL.
UM, SPECIFICALLY ITEMS EIGHT AND NINE MM-HMM.
AND SO WE COULD, I COULD PACKAGE THOSE TWO UP, FOLLOW UP WITH YOU ALL INDIVIDUALLY.
AND THEN WE CAN SCHEDULE THOSE FOR COUNSEL IF THAT WORKS FOR YOU.
AND THAT WAY WE CAN KIND OF KEEP EVERYTHING ON TRACK HERE.
AND THEN THE AUDIT REPORT, KEVIN, WE CAN JUST BRING BACK NEXT MONTH.
THERE'S NOTHING TIME SENSITIVE THERE, SO YEAH, I JUST HAVE ONE COMMENT, BENNY, BUT IT HELPS THE PROCESS A LITTLE BIT.
WE ARE ABOUT EIGHT MONTHS OR SO FROM THE END OF THE CURRENT CONTRACT, SO THERE IS A LITTLE BIT OF WIGGLE ROOM IN THE TIMELINE IF THAT HELPS WITH YOUR FLEXIBILITY IN THE PROCESS.
JUST TAKE IT OUTTA YOUR EVALUATION TIME.
UM, WITH THAT, HAS ANYBODY GOT AN UPDATE IF HE WAS GONNA BE HERE OR NOT? OKAY, WELL I DON'T WANNA HOLD EVERYBODY HERE.
I THANK EVERYBODY FOR COMING HERE TODAY AND, UH, SEVEN POOR RAZZIE.
SO I WOULD SUGGEST, UM, GIVEN THAT YOU CAN'T DELIBERATE, LET ME PACKAGE NUMBER SEVEN UP WITH EVERYTHING ELSE.
I, I, I DON'T KNOW THAT, I DUNNO, ROZY DID IT, THAT IT WILL BE BENEFICIAL YEAH.
REALLY APPRECIATE Y'ALL'S TIME.