to not collect fines. in terms of anything else in terms of the airport itself and your audit? >> we are fine. [inaudible] yes, we fully understand what has been stated. >> for the fire department, we conducted a payroll audit. the title was undefined pay practices increase department expenditures. the one-your response on april 3. the overall risk of open and contested recommendations as a religious audit, they were high. tw at -- as it relates to the audit, they were high.

of the recommendations, we had eight open, three contested, and 20 closed. many of the recommendations required action from other departments, department of human resources, ppsd. the status of each recommendation reflects whether the fire department has reported performing its role in implementing the recommendations that require actions by multiple departments. we will continue to follow up with those other departments as needed. this audit was presented to the committee in october of last year. since then, an additional 14 recommendations have been closed as they relate to the fire department's role in implementing the recommendations. the three contested recommendations to be addressed individually on the following slide. of the eight open recommendations come at the department reports been in process of implementing five of

them. the remaining three would require changes to the labor unions in the you -- mou and ask that the department of human resources bring certain issues to the negotiating table. the current mou expires in fiscal year 2013. >> [inaudible] >> thank you for that. these recommendations were recommendation #three and four in the original report. there are closely related. these findings were presented again in committee in october of last year. what we did, we tested 13 of 63 retiree payouts for the year and found one instance where the retiree was paid out for more sick leave them was permitted by the cap. the department stated that the exception could be explained by a settlement related to a mou

provision from 1995 that resulted in certain employees being permitted to exceed the sick leave cap due to pre- existing the accrual. the department could not produce the settlement at the time of the audit and does not been provided -- and we have not received it. a copy of the settlement, or we have not received any type of documentation since the audit. the retiree was paid a wellness incentives, a bonus that was increased by the excess hours. from this analysis, we determined the department did not consistently applied the sick leave cap. for this particular retiree, the department chose to apply the sick leave cap at a different point in the calculation senate differ other retirees. that -- in the calculation they did four other retirees.

it would cap their pay out at a lower rate than anymou indicates. -- than the mou indicates. that would help to ensure that we do not violate the mou and that we do not pay out in excess of what we should be paying. to address recommendation number 3, the department must either produce the settlement, establish a significant -- a said -- a consistent payout, provide sufficient audit trail to support exceptions to the limitation. the department must ensure that mou is clear as to what point and the sick leave cap should be

applied. we are looking for clarity, documentation that we can audit back and support. this recommendation was recommended -- recommendation 17 in the regional report. the department originally stated that it agreed with the recommendation and proposed an acceptable solution to resolve the issue. in response to the six month follow-up request, it indicated that it would not implement the recommendations indicating that it did not agree with the findings and recommendation. the most recent response indicates that the pending implementation of the city wide payroll system will resolve the underlying issue. however, the recommendation is aimed at addressing the problem until the new system can be fully implemented. i do know they are part of the team that should be entering into parallel testing and moving

into emerge in september or october. correct? when the audit was done, we are asking for procedures in place to adequately provide reasonable assurance of proper payout for retirees. we've just found that the processes in place made it difficult to track whether they were paying out properly. >> i know we have a number of people from the fire department here. >> i am from the san francisco

fire department, deputy chief administration. thank you for having us today to present on items that are outstanding. >> good afternoon, supervisors. thank you for allowing us to respond to this item. we worked over the past year and a half and work berry well with them. thank you for that input. -- work very well with them. thank you for that input. we have taken the recommendation of the audit very seriously and have implemented many changes that we can internally. there are a couple of items that were touched on with regards to the extent the department can impact policies. one would be a large number of the items that reflect changes. it would require -- we are

working with dhr very closely. secondly, it would be the emerge system. we a push to be one of the first departments to be in the first wave of conversion to the system. we have been working very closely with the controller's office to be able to be assured that in the new system, we will be able to avoid these types of issues. parts of the discrepancies that we have is that we have a completely separate time capturing system. there are some discrepancies. we have been working with the team and will be part of the first rollout in the fall,

august 4 september. we are looking forward to that and resolving some of these issues. supervisor farrell: going forward, they will be merged together? >> we are looking very forward to that. to touch on the open items. we are actively working to resolve those. we have resolved those even in the time we submitted our greatest response. those are works in progress. a couple of those will be addressed with the new system. we are looking forward to that. i will touch on the contested items. first, there was a settlement back in 2009 with the city attorney and a list of employee use to allow them to exceed the sick pay threshold. at the time of the audit, we provided some documentation from debt settlement. maine the list of employees and

the end result and balances -- mainly the list of employees and the end result and balances. we do not have it on file, the actual settlement. what we have is a list of items, a list of employees as a result of the agreement. we have been falling the terms of the agreement. we have not had any new -- we have been following the terms of the agreement. we have not had any new employees run into this problem. that list has been reduced as employees retire. it has been mainly through a set number of employees that were involved in the settlement at the time. it is not something we would have the power -- the sick pay is outlined in the mou. it was a special circumstance as a result of the lawsuit. we were following the terms of

the agreement. the last contested dealt with the monitoring assignments, that is part of the issue we have would be separate pay and labor systems. our time is tracked very accurately with regards to active assignments. we have people monitoring movement on a day-to-day basis. some people are working in active assignment capacity. the request of the audit was to pull data back from our cases. they do not categorized the employees in the same way. we are looking to be able to clearly identify that and be able to go backwards and extract the data. that is our brief presentation. supervisor farrell: colleagues? thank you very much.

tonia, same question. go forward? it seems like the settlement does not exist in paper form, a bad record keeping. i am sure it is not a preferred practice, it is what it is. in terms of their -- how do feel about going forward? >> it will solve many issues that we are having in our payroll system as it relates to tracking and so forth. because we are decentralized. it will be helpful, and we are doing some work as auditors. i am very confident that the department's will be able to move forward in a consistent manner that would be acceptable. supervisor farrell: any others? are you all done with your

presentation? >> thank you for your time. supervisor farrell: thank you for your time today and all of your hard work. much appreciated. with that, colleagues, i am going to open it up for public comment. i see mr. paulsen. everybody is going to have two minutes. >> ♪ one in an audio million chance to make it happen a one in a million make it happen from you a one in a million audit chance of a lifetime that there will be no oversight and make it turn out right

and happy mother's day to you 3000 miles away ♪ supervisor farrell: thank you. public comment is closed. a motion to continue this to the call of the chair? we can do that without objection. are there any more items on the calendar? meeting is adjourned.

that supports requests. page 26 of your packet is the summary of how these requests. 27 through 30 gives free descriptions of the projects as well as our recommendations. i will go through these projects very briefly. the girl substation a great project would provide the 20% matched to the construction fees, federal funds to repair the substation that was damaged by lightning in 2005. this is the power supply for the division deraa trolleybus line. new signal contracts 61 would fund the design phase for five new traffic signals and four new flashing beacons at four intersections. locations for the signals and beacons is on page 20 of your

enclosure. you can see the location has proposed. the memo describes the process for how nt and reprioritize to signal a patient. on page 23 of your packet, you can see the signals that are going to be improved -- a new signal that would be constructed as part of this current contract, as well as about 10 other locations that are currently being considered for new signal contracts 62.

next project is a thermoplastic truck. this will allow the agency and mta to keep up with the growing demand for striping and street parking. there is a prop k request for a multi phase allocation for the 19th avenue accessible pedestrian signals. this will fund locations that are shown on page 67. these are 14 of the 18 high priority locations identified by the work at. the other four locations have already been constructed as part of another contract. traffic's to go up. and graffiti appeared this is an ongoing program. this is the sixth year that we would be funding this year the program has improved over 19,000 signs to date and the public can request these signs by calling 311 or through the mta website. this request would improve anoth 5