Auditor General Committee

Summary

• Audit recommendation follow-up report (June 2026): Auditor General Mike McDonnell presented the sixth semi-annual status update on previous audit recommendations. Of 60 recommendations across eight publicly released audit reports, 33 (55%) are now fully or substantially implemented, a 22% improvement since the December 2025 update. Work is advancing on nearly all remaining items, with only three recommendations showing no progress.
• Nonprofit lease transparency: Discussion focused on Recommendation 10 from the nonprofit lease audit, which called for reporting the full value of the city's financial contribution to each operator. Staff noted that tracking actual costs at the individual lease level is resource-intensive due to shared buildings and multiple budget lines, but confirmed that estimates could be compiled and reported. A motion was passed directing staff to produce an annual public report on the full value of contributions per operator, with a goal of moving toward actuals over time.
• Park Board revenue management: The Auditor General flagged that recommendations related to Park Board financial systems remain among the least advanced, noting that underlying data infrastructure needed to be built before the recommendations could be acted on. He identified this area as posing the greatest ongoing risk, and noted that infrastructure funding challenges are a city-wide issue likely requiring difficult decisions in coming years.
• The Auditor General noted this was the final AGC meeting of the current council term and thanked committee members for their support throughout the term.