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HomeMy WebLinkAboutStaff Report 2407-3304CITY OF PALO ALTO Policy & Services Committee Special Meeting Tuesday, August 13, 2024 7:00 PM     Agenda Item     2.Recommend City Council Approve a New Assessment of Dispatch Center Efficiency and Effectiveness in place of FY2024 Task Order 4.21 Purchasing Card Audit. Presentation 5 1 7 1 Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: August 13, 2024 Report #:2407-3304 TITLE Recommend City Council Approve a New Assessment of Dispatch Center Efficiency and Effectiveness in place of FY2024 Task Order 4.21 Purchasing Card Audit. RECOMMENDATION The City Auditor recommends that the Policy & Services Committee recommend City Council approval of the following: 1. A new assessment, Task Order 4.28 Dispatch Center Program, to determine if operational activities are effective and efficient as compared to best practices and dispatch centers of a similar size, type of service, and volume of calls. This assessment will commence in August 2024 and is planned for reporting in February 2025. 2. Defer commencement of Task Order 4.22 Purchasing Card Audit to the FY2025 Audit Plan. EXECUTIVE SUMMARY The City Auditor, in consultation with the City Manager’s Office, recommends deferring Task Order 4.22 Purchasing Card Audit to the FY2025 Audit Plan, in order to commence an assessment of the City’s Dispatch Center Program. The objective of this performance assessment is to determine if the Dispatch/Communications Center is operating efficiently and effectively to serve the needs of the community. The assessment will evaluate Palo Alto’s Dispatch Center performance compared to that of other agencies of a similar size, type of service and volume of calls. The Center processes and procedures will also be assessed against best practices. As the communications center is in the process of evaluating new computer aided dispatch software, an assessment of performance is desired to evaluate this critical function and inform any future adjustments as necessary to systems and operations. 5 1 7 1 The Task Order 4.22 Purchasing Card Audit will be added to the FY2025 Annual Audit Plan and presented to the Policy & Services Committee for review and approval. BACKGROUND In accordance with our agreement with the City, Baker Tilly executes the annual, Council approved Audit Plan by conducting audits executed by the Policy & Services Committee. The Policy & Services Committee, acting as the Project Manager for the Baker Tilly contract as stipulated in the contract terms has discretion to add, delete, or defer audit activities in order to prioritize audit and assessment work as needed. FISCAL/RESOURCE IMPACT Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY 2025 Operating Budget for the Office of the City Auditor. STAKEHOLDER ENGAGEMENT The City Auditor’s Office consulted with the City Manager’s Office regarding the preliminary scope of the assessment. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: Task Order FY24-4.28 Dispatch Center Program Assessment APPROVED BY: Kate Murdock, City Auditor PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.28 Dispatch Center Program Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-4.28 2. CONSULTANT NAME: Baker Tilly Advisory Group, LP 3. PERIOD OF PERFORMANCE: START: August 15, 2024 COMPLETION: February 28, 2025 4. TOTAL TASK ORDER PRICE: $76,540 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Lydia Kou, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪SERVICES AND DELIVERABLES TO BE PROVIDED ▪SCHEDULE OF PERFORMANCE ▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: Baker Tilly Advisory Group, LP BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: •Services and Deliverables To Be Provided •Schedule of Performance •Maximum Compensation Amount and Rate Schedule (As Applicable) •Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting an assessment of the Dispatch Center Program involves three (3) primary steps: •Step 1: Assessment Planning •Step 2: Control Review and Testing •Step 3: Reporting Step 1 – Assessment Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall assessment objective and to solidify mutual understanding of the project scope, objectives, process, and timing between stakeholders and auditors. Tasks include: •Gather information to understand the environment under assessment o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit and/or assessment results, as applicable o Review additional documentation and conduct interviews as necessary •Write an assessment program o Refine objectives and scope o Identify the assessment procedures to be performed and the evidence to be obtained and examined •Announce initiation of the assessment and conduct kick-off meeting with key stakeholders o Discuss objectives, scope, assessment process, timing, resources, and expectations o Discuss documentation and interview requests for the assessment Step 2 – Control Review and Testing This step involves executing the procedures in the assessment program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary assessment objective is to: (1) Determine whether the City’s Dispatch Center Program is operating efficiently and effectively to meet community needs. Procedures include, but are not limited to: •Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to the Dispatch Center Program. •Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control program effectiveness. •Review overall Dispatch Center Program performance, including selecting a sample of Dispatch Center Calls to test for efficiency and effectiveness of response and triage for services. •Compare the performance, process, and controls against the best practices. Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and review a draft report with the stakeholders, and submit a final report. Tasks include: •Develop findings, conclusions, and recommendations based on the supporting evidence gathered •Validate findings with the appropriate individuals and discuss the root cause of the identified findings •Complete supervisory review of working papers and a draft report •Distribute a draft report and conduct a closing meeting with key stakeholders o o Discuss the results, finings, conclusions, and recommendations o Discuss management responses •Obtain written management responses and finalize a report •Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement: •Report Schedule of Performance Anticipated Start Date: August 15, 2024 Anticipated End Date: February 28, 2025 Maximum Compensation Amount The not-to exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $76,540. The not-to exceed budget is based on an estimate of 415 total project hours, of which 100 are estimated to be completed by the City Auditor. Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $8,500 The following summarizes anticipated reimbursable expenses (for three team members): •Round-trip Airfare - $2,000 (3 round trip flights) •Ground Transportation (car rental or Uber/taxi) - $1,500 •Hotel Accommodation - $3,500 (12 nights) •Food and incidentals - $1,500 Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. City of Palo AltoOffice of the City Auditor (OCA) Policy & Services Committee Meeting New Task Order Approval: Dispatch Operations Assessment City Auditor: Kate Murdock August 13, 2024 City Auditor recommends the Policy and Services Committee: Approve a new assessment of Dispatch Center Efficiency and Effectiveness o Assessment will replace the FY24 Purchasing Card Audit o Assessment to begin in August 2024 with anticipated reporting in January 2025 o Assessment will evaluate staffing, call processing, dispatching and training Defer commencement of the Purchasing Card Program Audit to the FY2025 Audit Plan to begin in January 2025. RECOMMENDATION 2 Questions? Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. The name Baker Tilly and its associated logo is used under license from Baker Tilly International limited. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2024 Baker Tilly Advisory Group, LP