11/20/17 City Council Agenda Packet

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FINAL REPORT OF THE CITIZEN CHARTER VIEW COMMITTEE The performance audit position would not be a duplication of effort or another layer of bureaucracy, but a gauge of government operations geared toward better quality government. Auditors can identify savings and improvements as a result of detailed analysis that could not be provided solely by staff in an organization. The performance auditor would present findings and recommendations to the City Council and to the City Manager. Having decided to recommend an auditor, the committee also considered the cost of such a position. The Portland City Auditor, Mr. Blackmer, felt that for the size of the City of Eugene, one auditor would be sufficient. He further felt that while often performance auditors pay for themselves with identified savings each year, the committee should not focus solely on the financial aspects, because unmeasurable accountability and improvements in the quality of service is also purchased with performance audits. The committee concurred with the opinion that one auditor would suffice for the City of Eugene at present. The Key Elements to a successful and effective independent performance auditor position is provided in Appendix K. According to the NALGA's education committee report, "So... You Think You Might Be Interested in Hiring a Performance Auditor," found in Appendix J, it is not uncommon for an audit function to realize an annual return on investment between 200 percent and 400 percent. Some members of the committee expressed their belief that the City Manager needed to have a an active role with regard to the City performance auditor to ensure that the manager retained control over the management of the organization. In response to this concern, the committee recommended that an audit committee should be included as an additional check and balance. As proposed, the audit committee would act as the hiring advisory committee. The audit committee would also review risk criteria used to select performance audits and endorse the performance auditor annual audit plan. The audit committee would also review the progress of audit work and draft audit reports, mediate differences between the performance auditor and those being audited, and provide input on general audit matters. An example of audit committee functions can be found in Appendix Q, Audit Committee in Jackson County, Oregon. In order to keep the process collaborative with management, it was decided to have the City Manager participate in the audit committee to the extent that the independence of the auditor not be impaired. The committee referred the specific makeup of the audit committee to the council, but generally agreed upon a seven -member committee composed of three councilors, two lay members of the Budget Committee, the mayor, and City Manager. While the motion for the recommended charter language did pass unanimously, two members of the committee wished to note their concerns with the language for the record. First, one member expressed concern that the proposal does not include input from the City Manager in the FINAL REPORT OF THE CITIZEN CHARTER REVIEW COMMITTEE - JANUARY 14, 2002 Page 22