RPVCCA_CC_SR_2012_05_01_07_Introduction_Of_Performance_AuditCITY OF
MEMORANOUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
COUNCILWOMAN SUSAN BROOKS @L~r3~
MAY 1,2012
INTRODUCTION OF PERFORMANCE AUDIT (Supports
City Council Goal "Improve Organizational Efficiency")
RECOMMENDATION
Consider authorizing a Performance Audit of City Staff workload,productivity and
resources,in accordance with approved 2012 City Council Goals and Priorities.
BACKGROUND
On March 20th ,the City Council adopted goals and priorities for 2012.Under the general
heading of "Government Efficiency,Fiscal Control and Transparency"is a more focused
goal to "Improve Organizational Efficiency,which in turn specifies "[conducting]a
performance audit of City staffing and programs."This item is introduced for the City
Council's discussion at tonight's meeting in furtherance of this goal.
DISCUSSION
I have requested that Council consider conducting a "Performance Audit"to assess our
Staffworkload,productivity and resources.As a result of our introduction to Len Wood and
his resourceful programs and books,I believe it is prudent for us to consider whether
management is using its resources,such as personnel,property and space in an efficient
and economically sound manner.Since Len gave us copies of his book entitled Local
Government -Dollars &Sense,you can find his suggestions for such an audit on pages
275-284.While this is a different than a traditional financial statement audit,they are
nevertheless linked because the goal is to determine whether the "desired results or
benefits established by the governing body are being achieved and whether the agency has
considered alternatives that might yield desired results at a lower cost."
In the nearly 6 months that we've served together in this new Council,it's become apparent
to me that we have placed many demands on Staff which lie outside the norm of prior
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MEMORANDUM:Introduction of Performance Audit
May 1,2012
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activity.While the ultimate City expenditures are Council's prerogative to determine,the
Council did not provide a specific prioritization of its goals so that the order by which the
goals should be addressed would be clear.To do so with such a comprehensive list might
be considered micro-management.Regardless of expenditures and potential transfers of
monies in the budget for next year,it will be the job of Staff to coordinate such activities in a
timely manner.By considering an external auditor to follow up on the audit completed by
Management Partners in February 2008,Council should have ample opportunity to decide
whether or not our resources are too many or too few,whether there are redundancies,or if
Staff can be better utilized in some different manner.
While I am on record as not being a fan of hiring consultants if we have capable staff to
perform a given task,it is my understanding that an expense forthis audit would most likely
save the City money by allocating its resources more effectively.This critique can both
assess the City Manager's Office in the assignment of Staff tasks,and simultaneously
empower Council in our goal to meet the needs of our constituents.
My request would be that we consider allocating up to $50,000 for the FY2012-13 budget to
complete such a task,to begin as early as this summer,or that we pursue the matter with
independent consultants to ascertain whether or not this audit can be conducted with
discretionary funds of no more than $25,000.
This request comes to you prior to our FY2012-13 budget consideration so that you can
decide for yourselves whether or not you believe this exercise to be beneficial.
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