REPORT TO AUDIT COMMITTEE
SUBJECT
Title
Action to Accept Report of Whistleblower Hotline Activity for Fiscal Year 2023-24
Report
BACKGROUND
Per Section 909 of the City Charter, and SCCC Section 2.29.010, the City Auditor’s duties and responsibilities include conducting in-depth financial and performance audits, overseeing the City’s performance management system, auditing and approving all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, making reports to the City Council as to the regularity, legality and correctness of such claims, demands or charges. The City Auditor’s Office conducts its work under the auditing standards prescribed by the Institute of Internal Auditors (IIA). The IIA International Standards for the Professional Practice of Internal Auditing (Standards) requires the City Auditor to periodically report to the Audit Committee on the internal audit activity’s performance relative to the Audit Work Plan.
DISCUSSION
In January 2022, the City Council approved the City’s first Fraud, Waste, and Abuse Policy (Fraud Policy). The policy defines unacceptable behaviors, assigns oversight responsibility, and provides direction for reporting suspected fraud. Together with the City’s Code of Ethics and Values, a fraud policy raises awareness and helps the City set a tone of oversight and commitment to combating fraud and corruption.
With the acceptance of the policy, and pursuant to California Government Code Section 53087.6, the City Council authorized the use of a whistleblower hotline that allows for anonymous reporting of suspected fraud, waste, unethical or illicit activity. After a competitive procurement process, the City Auditor’s Office implemented a third-party whistleblower hotline “Speak Up Santa Clara” in September 2022. As part of the Fraud Policy, the Auditor’s office reports to the Audit Committee a summary of all claims received. If a claim is substantiated, an additional report will be issued and presented to both the Audit Committee and City Council.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Costs associated with the preparation of this report were included in the City’s FY 2024/25 Adopted Operating Budget.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Accept the report on the Whistleblower Hotline activity for Fiscal Year 2023-24.
Staff
Reviewed and Approved by: David Noce, Audit Manager
ATTACHMENTS
1. Report of Whistleblower Activity for Fiscal Year 2023-24