RPVCCA_CC_SR_2012_05_15_02_Introduction_Of_Performance_AuditCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
COUNCILWOMAN SUSAN BROOKS <l9-~'6~
MAY .~?,2012,
INTRODUCTION OF PERFORMANCE AUDIT (Supports
City Council Goal "Improve Organizational Efficiency")
RECOMMENDATION
Direct staff to prepare a Request for Proposal (RFP)to solicit third party bids for a
Performance Audit of organizational workload,productivity and resources of all City
departments,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
Staff workload,productivity and resources.During my campaign-and 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,economically and efficiently.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 type of activity 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."
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MEMORANDUM:Introduction of Performance Audit
May 1,2012
Page 2
In the nearly 6 months that I've been in office,it's become apparent to me that this new
Council has placed many demands on Staff which lie outside the norm of prior 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.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 belief that an expense for this audit would most likely save
the City money by allocating its resources more effectively.This can both assist the City
Manager in her assignments for Staff,and 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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