FISCAL IMPACTS OF RECOMMENDATION Fiscal impacts related to the Citywide untimely billing of grants and to the “civilianization” of additional Police positions

1. Report back to Council regarding causes for difficulties in implementing audit recommendations. 2. Investigate the possibility that budget-related cuts and freezes may have impacted oversight/support functions and internal controls Citywide to a degree of unacceptable risk. This risk would include loss of City assets due to fraud, reduced revenues due to weak controls over billing and collections, and less than optimal use of resources due to diminished oversight of efficient and effective performance. 3. To the extent possible, include an analysis of potential internal control impacts in future discussions of City budgets, as well as estimated costs for resolving them. 4. Take such additional steps as Council may determine after discussion. Until the City Manager is able to explore the underlying causes of lack of implementation, Council should be cautious about committing funds to new program areas. Council should be prepared for the possibility that existing direct public services may be curtailed in the short run, in order to assign resources to resolve persistent and recurrent internal control weaknesses Citywide.