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CC 03-21-2023 Item No. 4. Budget Process Review_Supplemental Report CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: March 21, 2023 Agenda Item #4 Subject Consider the Budget Process Review Final Report Recommended Action Receive the Budget Process Review Final Report Background: Staff’s responses to questions received from councilmembers are shown in italics. Q1: Page #168 Project Results The review found that the City's budget process aligns with the significant majority of budget best practices developed by the Government Finance Officers Association (GFOA) (76 of 80 criteria in total). However, four elements lacked documentation to support alignment with best practices. The report recommended developing a prioritized implementation plan to support progress toward full alignment with GFOA best practices in the four categories that are not aligned. 4 out of 80 criteria are not aligned with best practices – Is this result considered a reasonably good result? (Mayor Wei) Staff response: Yes, this is considered a good result. The City’s internal auditor, Moss Adams, also stated that 95% alignment is a good result. Q2: Are the four elements (that lack documentation to support alignment with best practices) being worked on? If yes, is there a timeline to bring full alignment? (Mayor Wei) Staff response: Yes, staff is working on aligning the four elements with GFOA best practices. Staff expects to have full alignment by the end of FY 2023-24. Q2: Page #169 Next Steps Staff is working on implementing the report’s recommendations. Is staff reporting the implementation progress to the Audit Committee? (Mayor Wei) Staff response: Yes, staff will provide updates on the implementation progress to the Audit Committee as part of the quarterly budget format review on the Audit Committee’s agenda. Attachments Provided with Original Staff Report: A. Budget Process Review Final Report