Section 302:  Performance Budgeting and Audits 

(a)  Each City department, agency, board and commission shall develop a strategic plan in consultation with citizens, the Mayor and the Council.  Such a plan shall define the mission, goals and strategies of the department, agency, board or commission.  These strategic plans are to be updated at least every four years. 

(b)  With submission of the city budget each year, each City department, agency, board and commission shall also submit an annual performance plan for the following fiscal year containing the following:

(1)  Performance measures.  Performance measures shall provide information to City officials and the public on the quality of service provided, citizen perceptions of quality, and the extent a service meets the needs for which it was created.  Each City department, agency, board and commission may define additional performance measures, but shall collect and report measures approved by the Comptroller in an accurate and timely manner.

(2)  Cost efficiency measures and benchmarks. Throughout the fiscal year, each City department, agency, board and commission shall track and report costs on a full cost-per-unit service basis.  Costs-per-unit service calculations shall reflect direct, indirect and overhead costs associated with all component activities carried out in the course of providing a service.

(3) Reports on performance and cost efficiency achievements.  The performance plan shall report on actual results achieved during the previous fiscal year, and shall forecast results for the current fiscal year.

(4) Targets for performance and cost efficiency achievements.  The performance plan shall establish clear targets for performance in the following year for all performance measures and cost efficiency measures and benchmarks.

(5) Any other performance or financial information that the Mayor, Council or Comptroller may deem necessary to fully understand the relationship between resource levels requested in the budget and specific performance goals and targets.

(c)  The City Performance Audit Unit in the Comptroller's office shall conduct periodic, comprehensive performance audits of city departments, boards, commissions, services, and activities.  The Comptroller shall have discretion to select, on a rotating basis, departments, boards, commissions, services, and activities for audit, provided that at least 20 percent of all City expenditures shall be audited each year, and each expenditure shall be audited at least once every 5 years. 

(d)  In conducting performance audits of each department, board, commission, service or activity, the Comptroller shall:

(1)  Report on accuracy, quality and reliability of performance and cost information reported in the annual performance plan

(2)  Report on the status of and provide recommendations for the improvement on internal management issues, including controlling overtime expenditures, operating within appropriated levels, managing risk, reducing worker's compensation claims, and reducing errors and quality deficiencies.

(3)  Identify the major drivers of costs and recommend strategies for reducing those costs

(4)  Report on the status of implementation of any Competitive Restructuring Plans, as defined in section 311 of this Charter , and associated performance and cost achievements under those plans

(5)  To the extent practical, compare cost and performance of San Diego City government with other cities, counties, public agencies and nonprofit organizations and businesses performing similar functions

(6)  Determine whether work or services performed by an audited department or agency might be practically performed under private contract at a lesser cost than work of a similar quality performed by employees of the City. 

(7)  Classify expenditures examined as Effective, Moderately Effective, Minimally Effective, Ineffective or Results Unknown.

(8)  Report on any other criteria that the Comptroller may deem necessary to inform the Mayor, Council and the public on the performance and cost efficiency of a city department, board, commission or activity.

(e)  Each year the Comptroller shall publish the results of all final performance audits and a summary of agency responses, shall deliver copies of such audits to the Mayor, City Council and relevant departments and make this information readily accessible to the public.  

(f)  Each performance audit report submitted to the City Council shall be docketed from an open session hearing of the City Council within thirty (30) days after submission, and the hearing shall not be continued for any reason except for an emergency as reasonably determined by the Mayor.