AC 11-15-2021 HDL PresentationHdL
Audit Committee Presentation
by Interim City Manager Greg Larson
November 15, 2021
Budget Authority ‐ Cupertino
“After the budget is adopted, the City enters the budget monitoring
phase. Throughout the year, expenditures are monitored by the Finance
Division staff and department managers to ensure that funds are used
in an approved manner. Adjustments to expenditures within or
between departmental budgets are accomplished on an as‐needed
basis administratively throughout the year. The City Manager and
Department Heads can transfer funds between their line items and/or
divisions as needed. City Council approval is required for additional
appropriations from fund balances or from new revenue sources.”
(FY 2021‐22 Proposed Budget Pages 79 to 80)
Budget Authority – Majority of Cities
The City Manager may transfer budgeted appropriations between line
items or divisions/departments as needed in the same Fund.
City Council approval is required to move budget between funds and for
additional budget appropriations.
Any such changes, whether approved by the Manager or the Council
are typically reported out as part of the next Quarter Budget Review.
Most cities have similar policies, including: Los Altos, Los Altos Hills,
Los Gatos, Morgan Hill, Mountain View, Palo Alto, Santa Clara, and
Saratoga
Budget Authority ‐ Exceptions
The following cities limit the dollar amount that the City Manager can
transfer between divisions/departments within the same fund. Council
approval is required for transfers over the following amounts:
Sunnyvale & Milpitas ‐ Up to $100,000
Campbell ‐ Up to $10,000
Staff‐Initiated HdL‐Related Improvements
1. New Economic Development Manager hired
2. Formalize City Manager budget authority and reporting
requirements
3. Pending Council direction, negotiate resolution with HdL
4. Staff requesting review and testing of this contract history as part of
Purchasing Audit by Moss Adams
A. Regardless of organizational function realignments, always maintain a single
responsible contract manager and director for oversight
B. Consider Purchasing Policy clarification regarding multi‐year contracts,
budgeted amounts, and Purchasing Policy limits
C. Clarify contractual burdens of vendors to not accept or act on verbal or
implied authorizations for further work and responsibility to not exceed
contracted service levels
Recommendations
•Ask questions
•Accept staff report
•Request report on final resolution by early 2022
following Council review and action
•Review next item: Refund Error