The appointment of Robert Timerman as the new City Auditor was a agenda item. Timerman, previously the Acting Director at the Minnesota Department of Transportation, was recognized for his extensive experience in audit roles across state departments. He holds a Bachelor of Administration with an economics focus and has pursued master’s-level coursework. The position of City Auditor, an executive-level role, involves providing independent evaluatory services to improve city operations. Timerman emphasized his dedication to fostering public trust and ensuring that city decisions align with community interests. The Council members congratulated him on his appointment, acknowledging the rigorous selection process he underwent.

In parallel, the Council delved into the Neighborhood 2020 program, assessing its effectiveness in supporting over 70 community-based organizations. A review of the program’s internal controls, covering January 2021 to December 2023, identified areas needing improvement, such as development finance processes, policy adjustments, and risk assessment enhancements. A key finding was the absence of a requirement for neighborhood organizations to submit receipts with reimbursement requests, a gap in the control framework that the city plans to rectify by directly collecting necessary documentation. This change aims to increase accountability and transparency in fund allocation.

The discussion on the Neighborhood 2020 program also touched on the challenges faced by some organizations in maintaining proper documentation. While most organizations meet the necessary standards, the city occasionally places certain groups on probation when issues arise. The role of an external Certified Public Accountant in reviewing financial documentation was underscored, and random checks on payment requests are conducted to ensure compliance. The Council addressed the oversight monitoring process, emphasizing the need for improved documentation and approval procedures.

The Council explored the complexities of fiscal relationships between neighborhood organizations and other entities. The conversation acknowledged that while the city monitors neighborhood organizations, it does not directly audit their fiscal relationships with other groups.

Additionally, the Council examined the Enterprise Risk Assessment and Risk-Based Integrated Audit Plan for 2025. This comprehensive assessment, guided by international auditing standards, identified various risks, including strategic, operational, compliance, financial, IT, and fraud risks. The methodology involved interviews, surveys, and analysis of national trends to identify areas requiring audit focus. The audit division conducted multiple meetings with city departments to gather insights on their challenges and goals.

Key risk themes identified included the political climate, which poses challenges that may disrupt city operations, especially with potential leadership changes. The Council also highlighted concerns over grants and funding, particularly the risks posed by potential reductions in federal funding, which could impact the city’s staffing levels and public service delivery.

The Council addressed the need for standardized policies across departments, emphasizing that the lack of uniform frameworks could hinder operations. Efforts to update outdated policies, some dating back to the 1980s, were discussed, with a focus on establishing a comprehensive approach to policy management. The procurement process was another area of concern, with inefficiencies leading to risks such as financial losses and resource misallocation. Plans for a phased review of procurement processes were outlined, along with an audit of the Neighborhood Safety Department’s contracting practices.

The discussion also covered the implementation of an enterprise resource planning (ERP) system, noting potential delays in operational efficiency. The importance of cybersecurity was underscored, with recent incidents like the Park Board’s technology system attack highlighting the need for robust protection measures.