are upfront and some are gambling that goes on in the middle of the night from thursday to saturday, i, that about three or four like a cat and mouse game it goes on between the police department and the people who are running the so-called businesses in the store fronts we have a piece meal approach to help you know how we're going to resolve this problem and nothing changes. we were able to get some of the more observe you can problematic businesses where they have computers and you're going them for online gaging and eliminate it out of 3 of them but other businesses the store fronts are, you know, causing a lot more, you know, problems in the neighborhood. the district attorney's office

has been involved and the city attorney and dbi and the police department involved and but we don't seem to have a real full systematic approach we're not sure we can have all the resources but i need help the da is here i need help to figure out how to have a strong community city department approach to deal with a systematic problem and looking at it from a store front by store front basis doesn't help i'm reaching out to the district attorney and want the conversations for the strong approach for, you know, this commercial corridor that's, you know, an incredible neighborhood in san francisco but surfer from those conditions

>> absolutely and, you know, we'll reach tout out to you for a conversation by specifically the kind of work lends itself to start connecting the dots early open you're not doing the ones and twos as an isolated incident and having the prosecutors have the arms and tools to have the understanding this is not only on a isolated incident this may be a way to funnel money into other criminal activities that's what we do in manhattan and hope to do here. >> i can tell you from manhattan that because we're the intel driver with the seminar ada person has spoken i gave you

examples of violent crime but we have a huge count fiat ticketing problem we have the times square issues that has low-level crimes but not nice to tourist we know what the issues are and track the patterns the same people over and over that are doing it we can bring the right people to the table and we do to figure out pro-active strategies that might include new legislation of legislation or making it inhospitalityal so they'll go somewhere else. >> thanks colleagues questions or comments. okay. thank you for taking the time from new york to come.

mr. district attorney our next one >> the next one is mental health especially there's an area you have taken a professional leadership and some of your other colleagues, we from many years have been u custodial aware the challenges in our community that have mental health problems whether getting them the right level of service or getting them off the streets to live a more humane life some of the people we deal with die in the streets because the lack of care. we also have other activities that we, you know, we're seeing an increase in the workload starting in julia significant workload and perhaps if the law is to pass another piece.

i'd like to introduce you to katie miller she's the one that works in this area and much like my other colleague she'll walk you through the concerns if you have any questions, i'll be happy to answer them >> great thanks. >> good afternoon. katie and the chief of the program in that roll over see our collaborative neighborhood prosecutors and our juvenile unit when we put the programs together under one piece three and four the da charged me with looking at how we do and our challenges and gaps and how to bring our process into awe alignment how we work with individuals suffering from mentally illness we intersect

with the city's health care the system should be a robust came national system and a range of access points and that ideally folks get involved with the services and i but there are two different ways to intersect with the system it really is unsustainable for us to do the work we're mandated so currently in our office we have one full-time assistant district attorney and a part time person with her that he rely on two other lawyers we beg and borrow if other unit and it isn't that she can't handle the case the caseload is extreme. there 20 are two different ways

to do mental health work one is civil in and a half in california it's the district attorney's office that represent the public conservative so it's the district attorney's office that's the lawyer for our public office of conservative our. so our office maintenance an ongoing caseload even if seven hundred and 50 conservative our cases once they're past their petition oftentimes cabaret in custody and others things like change of medication or change of placement and our lawyers staff all those folks. to date in the calendar year 6 hundred and 80 cases she's acted

on as well as looking at seven hundred and 50 other cases for their court date. the other thing is criminal work obviously we have a number of cases because someone has violated the law but suffering from serious mental illness there's several board cases of those cases load under the tammy same attorney the person's economy of standing trial my folks that are insane folks that maybe finishing their insensitive - sentencing. she has 4 hundred and 20 cases

and you can imagine those are cases involving serious crimes and with others who have mental illness they're coming to see where they're with their cases. currently our office didn't staff the 5350 and san francisco generally, i want to bring that out we should be doing under the state law the district attorney's office should be in the hearing and we're not there there's no legal council for the city presently because we don't have the ability to do it. individuals have a lawyer so san francisco gentle and the 7 other hospitals across the city that do the hearing there's private council but we're not in the

room right now. there's an average of 50 across the city in the hospitals. in addition to the current work there's a few important changes on the horizon that will be on our plate. the first thing is the beginning in july the san francisco superior court is actually seeing a role it's placed for many years the preparation and filing of the papers related to the hearing. so currently when a con conservative brings a can say forward to the superior court but in july will be our office so we will be doing the paperwork the civil court cases today it would have been 6 hundred and 50issue

new guidelines that are applicable to the emerge system and for the departments to follow those different guidelines. on page 9 starts the status of the prior year recommendations in the previous fiscal year audits we identified two different recommendations. the first one related to the successor agency of the redevelopment agency and the finding that we had identified was that due to the dissolution of the redevelopment agency, the accounting department for the agency needed additional help in terms of accounting and financial reporting functions. and, so, the corrective action that the city had implemented was to assign all contracts by the city to deputy director of

finance and initiation to assist the sister agency in their accounting and financial reporting functions. so, we believe that the finding has been corrected and during fiscal year 2012-13 we did not see similar issues. >> do you actually have an extra copy of the report? i can't read it on my screen. >> yes. we have a copy issued ahead of time. >> the powerpoint? >> yes, the powerpoint and each of the reports. >> thank you. >> um-hm. the second, the second comment that he we had from the previous audit was an informational comment that related to a new pension accounting center and the [speaker not understood] system has to implement during the current fiscal year, fiscal year 13-14 and for the city as a whole the next fiscal year 2014-15. so, we wanted to bring

that to your attention because it does require a lot of effort and planning ahead of time. the retirement system is required to implement the new accounting standards because it relates to its pension benefit in the current fiscal year 13-14, and we are currently working with the retirement system to make sure that they are on track with their project plan. that concludes my report on this particular report. the third report that i will present is a single audit report and it is an audit [speaker not understood] federal award and expenditures. like i mentioned earlier, -- as i mentioned earlier we issued an unmodified opinion on the single audit which is the highest level of assurance you can achieve. we did audit 16 major programs for fiscal year 2012-13 and that covered 15 different city

departments. we do have one compliance finding that i will go over. we identified one particular finding for the aging cluster and this program was administered by the human services agency. there is a requirement for all city departments who pass this audit funding to a [speaker not understood] to identify the federal award information including the cfd number which is a unique identifying number for federal programs. and the communication had to happen at the time of the award by the time of the award, and during our audit we found that the information was communicated during the award but it was not communicated at the time of the award as required. >> communicated to whom specifically? >> to the recipient. to recipient, the grantees. >> thank you. >> so, we did identify that as

the particular compliance finding and the department's corrective action plan is to include that information going forward at the time of the award to the [inaudible]. that is the only recurring finding that we have. we had three prior year findings as it related to your single audit. the first one was [speaker not understood] for two different hiv programs. the finding was that the advance number different identifying number for federal award was not obtained from [speaker not understood] or the grantee as required by the award and also the monitoring, the [speaker not understood] monitoring required by -- for the city department was not performed for one out of nine of the recipients that we had tested. so, this year we went back and we were able to perform procedures to set aside that

the government had implemented their corrective action plans for the current fiscal year. the second prior year finding related to indirect costs for the eecbg program that was administered by the department of the environment and the finding was that the department had used a proposed indirect cost rate when it claimed reimbursement of federal awards instead of the one that was approved by the federal department. and this year, again, we went back and we were able to perform procedures to confirm that the department had corrected the finding. the third and last prior year comment related to reporting internal controls over reporting for the homeless security plan program and this program was administered by the department of emergency management. our comment was that when we looked at internal controls we identified the required function was [speaker not understood] by one individual. there was no review and oversight. so our recommendation was to

implement that particular function. and the department has assigned another manager to do secondary reviews for those reporting functions. and, so, that concludes my report on the fiscal year 2012-13 audit report. do you have any questions before i move on? >> no. thank you. >> so, the last report that i would like to present today is an audit plan for this coming year audit which is the 12 and 13, 14 audit service plan. again, our scope is for all city funds except for the health services system airport, the separate utilities commission, the mta, the multi-corporation which are audited by other auditors. [speaker not understood] i would like to highlight a couple of sections for your information. on page 5 is our audit timeline

and this identifies when we will start the audit for fiscal year 2013-2014 and some of the key dates as well as when we plan to report back to the gao -- >> which in particular? >> of the audit service plan it's -- >> of the documents we've been provided with? >> right, it should be in your packet. >> got it. >> so, we are starting our audit for the 2013-14 fiscal year now. we are doing our planning procedures. we'll come out and do [speaker not understood] testing [speaker not understood] at the year-end kloza round september, october and we target [speaker not understood] all the different components by october-november and the city single audit, the audit of the city's federal awards will complete -- they will be completed by next february,

march time frame. so, we are targeting to report back on the fiscal year 13-14 audit result in april of 2015 back to the board or the committee. >> thank you. i just have one general comment. in particular, one of the challenges with audits, in particular with the departments, you have the departments which have or typically fully staffed. they have resources and the ability to dedicate those resources to providing the controller's office with information in a timely manner to deal with responding to these particular audits. but i do think that there are some challenges in term of the timing as it relates to subcontractors or subgrantees or other entities that receive especially grant awards and the ability to provide sufficient, i guess, feedback within a timely manner. and, so, i just wanted to make that point and ask that you

look into ensuring that you provide especially subgrantees sufficient time to review and to respond, if necessary, to these particular audits. >> right. like i said, we are starting our planning now. all the departments and programs that are audited this year [speaker not understood] as they relate to the recipients, our auditing standards -- our auditing procedures are [speaker not understood] the record. so, there is limited interaction with the subrecipients itself. i think you may be referring to the city's own monitoring procedures for the subrecipients which are rehe inquired procedures but i will make note of your comment. >> yes, thank you. >> thank you. the next section in the audit plan that i would like to highlight is on page 7. this is an overview of our audit process and in here we've identified some of the more critical audit areas that we

will focus on. to the right of page 7 is where all the critical audit areas start. and one of the very key or two of the very key audit areas this year is the implementation of two new accounting standards. one is [speaker not understood] 65. with this particular statement does is it created two new financial categories. in the past it was access liabilities in that position. this particular statement added two new categories on how certain financial finance will be presented in certain financial statements. so, that will be a change in next year's financial statements. you'll see some new line item. the second thing i'd like to mentioned earlier is the new financial accounting benefit center pension benefit. the retirement system is required to implement those standards in the current fiscal year. and the city will implement the standards in the next fiscal year.

so, that will be a pretty significant change in terms of the financial statements. the last section starts on page 11, section 5. this starts out our responsibilities as auditors as well as management's responsibilities in taking responsibility for the financial statements themselves. and with that, that concludes my presentation on the audit service plan. do you have any questions? >> just, can you please provide an electronic copy of the sers plan so we can up load those for the benefit of the public? >> yes. >> thank you. all right. >> madam chair, supervisor tang, monique zamuda from the controller's office. i did want to comment on the audit process for the city as well as some of the findings

that were stated about the payroll processes for the city. it really takes a village to complete the audit work on an annual basis. we have scores of people within the controller's office and all the financial departments pulling together the schedules and reconciling all the balances and so on and we're very pleased to report that the external audit by [speaker not understood] did come out very, very well. it was very clean audit, very, very few areas of concern. and more importantly those areas that were identified last year, particularly with the dissolution of the redevelopment agency, all of those have been corrected and for an ongoing basis. so, we're very happy about that. as you know, we have a new h.r. and payroll system that was implemented in august of 2012. so, the audit period does include that transition period

and the auditors did recommend that policies be developed and updated to reflect the new systems. we were in the process of creating those policies and that manual when the audit occurred and that has since been completed. all of the departments received copies of the manual that identify all the steps that need to be taken to ensure internal controls that everybody is being paid correctly and timely. we have a user group that meets on a monthly basis to go over all of the procedures. we have reports that compare what has been paid to what we expect to be paid, and we do think that the new payroll system is providing us with very timely and accurate payroll. we he in this fiscal period are also developing manuals for departments so that they have a cookbook as to how to ensure that the payroll is done accurately. and, so, we will be reporting

on that to you next year. and then i'm also here to answer any questions you might have about the auditing process. >> thank you. >> madam chair, i just wanted to point out that all of the documentations have been up loaded to the file but it will be included with the minutes. they're online. >> okay, because i can't pull them up under the line item. did that just happen? >> yeah, when they turned them in earlier this week, they did. if you go under the lrc, they're all updated. >> okay, thank you. >> hi, supervisors. one more time. a very brief presentation by kpmg. they had no audit findings in their audits. so, this will just be the presentation of their coming year. she's loading that right now.

>> thank you, good morning. my name is jamie cabin and i'm the senior manager with kpmg here to report the 2014 audit plan for kpmg. you have a brief agenda to go through all the topics that we will address today. first we have the audit engagement teams. overall, we have good continuity this year with returning members and several returning team members all the way down to the associate level. we first have the not gaugement

audit partner nancy rose who is the responsible partner over all the entities that we have been assigned to and engaged for. thank you. we set a [speaker not understood] and myself are the senior managers responsible for these audits as you see allocated below. we also have brock romano and kenneth dee on as our current review partners. ~ the objective of the audit is to express an opinion as to whether the financial statements prepared by management are fairly presented in conformity with the generally accepted accounting principle standards and the government auditing standards. we perform the audit to provide reasonable but not absolute assurance that the financials of material statement whether that is from error or fraud, and design our controls specifically over the risk -- inherent risk, counseling

processes to obtain sufficient support for our controller's assessments. [speaker not understood] responsibilities of management of each of the departments. i won't go through these in all detail. just to highlight a couple here. of course to fairly present the family statements in conformance with the generally accepted accounting principles, identifying and confirming that the city complies with laws, regulations applicable to the activities, and establishing and maintaining internal controls to prevent, deter and detect fraud. we will of course require that management make representations to us during the audit and at the end of the audit not limited to the two bullets you see here in regard to disclosure of significant deficiencies, including materially, it says that in regards to the design and operation to ensure that [speaker not understood] the city's ability to properly

report financial data and management to acknowledge their responsibility of the design and implementation of the programs and controls to prevent and detect fraud. the audit committee is responsible for or other known as though in charge of governance. it's for the oversight of the financial reporting process and the internal controls over the financial reporting process. and we obviously disclose here at the bottom the audited financial statements does not relieve the committee or management of their responsibility. in regards to responsibilitieses of kpmg, the first two bullets i indicated in previous slides to continue on we evaluate whether control are sufficiently addressed. those specific to material misstatements due to fraud and the risk of management overriding controls. we will communicate to management and those with governance all significant deficiencies and material weaknesses and internal

controls and, of course, perform our audit in accordance with professional standards and standard applicable to government auditing standards. and we will also communicate all required information including significant matters to management and audit committee. in regards to other information and documents containing audited financial statements, our report does not extend to this other information and documents containing -- documents containing audited financial statements. in these situations the documents, these would be subject statistical information, financial trends, demographics or operating results. would he require us to read through that other information and identify if there is a material inconsistency with the audited financial statements. if there are any identified material inconsistencies, those need to be resolved in order for us to be