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tv   BOS Govt Audits and Oversight Committee 102616  SFGTV  November 2, 2016 12:00pm-1:01pm PDT

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>> good afternoon. welcome to the a special meeting of the government audit & oversight for today wednesday, october 265, 2016, i'm the brunt chair aaron
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peskin joined by board president london breed our clerk clerk erica major madam clerk, any announcements? >> . >> yes. documents to be included should be submitted to the clerk. items acted upon today will appear on the please read the brunt first item. >> may we make a motion. >> i'd like to make a motion to excuse vice chair supervisor norman yee can we take that without objection? that will be the order. and madam clerk the first item on a resolution urging the employee richard to hold a public hearing and issue a report >> thank you. the sponsor of that report has asked that we -
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we mr. unexcuse supervisor yee he showed up and supervisor yee we called item fundi have been informed this to the to postponed without objection. >> supervisor yee is excused any any public comment on item one without objection we'll continue that item through the chair. >> madam clerk the brunt final item. >> the oversight processes for the fine arts museum of san francisco and it's board of trustees thank you, ms. major colleagues as you recall on september 1st, we held a hearing looking at the governor structure and oversight of the city funding processes with regards to our cherished fine arts museum and timed to
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continue that our new director of fine arts museum couldn't be with us i wanted the brunt opportunity for us to meet him in public as a stewards that institution forwarded and follow-up on a few items the original impetus for the brunt hearing came around resolutions having to do with things in the newspaper but an opportunity for us as a board of supervisors to reengage with the fine arts museum which is an asset of the brunt people of san francisco and has a very interesting governance structure whereas, the gentleman is familiar although apparently seen other structures in piss past we have a city does in the fine arts museums of san francisco a
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nonprofit side in co-family the 5013 nonprofit orientation all over the place a third organization a foundation for the brunt museum and some of those city puts in approximately $18 million at the last meeting believe that is incorrect 19.2 in the current fiscal year about 25 percent we believe approximately of the brunt annual operating budget of the two museums known as the legion of honor and the young museum so i wanted the an opportunity to talk about some of the things we might be able to improve over time particular as transparency there are certain things that are transparent to the public and to the decision makers like ourselves and heretofore are not
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taint with that, i want to give the brunt gentleman an opportunity to speak to us and for us to get to know him and to follow-up on our last hearing we raised a number of issues if there are no questions i'm going to turn it over to mr. hotline and welcome we're delighted that you've joined us you have a long history in stewardship museums around the brunt global with that, please come on up. >> well, thank you very much supervisor peskin and supervisor president breed and supervisor yee i'm here able to lay out some thoughts but i guess those structures and outcomes about the organization of the fine arts museums of san francisco and respond probably to some of the questions that have been raised at the first meeting and
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those are kind of at a briefly to prepare for to hearing pr i've prepared a presentation that covers this and tends i'll show pictures it is nice to show you some things to kind of - >> yeah. >> oh, i can see that thanks. >> okay. >> all right. okay so. >> good. >> just quickly as a general remark i as it supervisor peskin mentioned alluded to identify been running museums no frankford in the last few years ago i've got experienced 40 in running different kinds of institutions one was a private
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institution private foundation no germany and this was a limited liability company but as one that run as a nonprofit institution i have a fair amount of experience with those institutions in fact, quickly address kind of a general thoughtful the brunt fine arts museums i think what you'll see in the next couple of years more emphasis on the identities and the brunt beyond especially at the legion of honor nothing - really bringing in more to the attention of a broader audience and a bigger role internationally as well being really one of the defining
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institutions for the brunt city and i think i can see this as a someone coming from germany or as a european focus on san francisco and some of it it obviously building on the whole development of the tech industry and other sectors i think the brunt culture history of san francisco is extremely important to understand what this city it is something that brings me here and be able to participate in this environment i know you don't want to hear about great plans arrest advisements about the brunt museums but hear a little bit more about the brunt details and data about this institution so i kind of threw - sorry - so the second slide shows you
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one the challenges of this institution and basically makes a difference i'll say if you accountability compatible institutions or participating institutions in the u.s. you compare the brunt finances of san francisco so new york or the museum of fine arts in boston or if you look at philadelphia or cleveland you have a steady small endowment you see this as a red triangle basically about 3 percent of our total operating budget is covered by endowment that basic means the brunt other areas of income to balance the budget on the wooden revenue part in the blue triangle which is our income and other aspects
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like membership you, of course, go have the very important support participation from the brunt city which covers 27 percent of our total costs that is being invested in the city in security and maintenance of the building but then a fairly large portion with the green sector of contributions that is the major nominations support for the exhibit shuns and the general organization and to one of the tasks i'll say of every director especially right now for me is to be able to enlarge that particular sector that means we need to portray an institution that is organization alley sound and transparent and really taken care of of funds in essence in a
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prudent way that is part of story of that institution and on the other hand, i want to make sure when we move forward that i'll see with the public eye and the preservation about the brunt museum the art and education that is bringing about so i think that is a core element of that if you look at what the cultural assets it depends on how you define that but the brunt core part would define that the context thee we're called a nonprofit organization is the brunt permanent collection i'll talk about that in a minute that has to do with with the brunt city and the core part of it the exhibitions we bring about but, of course, the two buildings that we maintain that are landmarks building and profit
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savings accounts and the brunt whole program in the area of education, scholarship and outreach so talking about the entire layout of the the spaces the legion of honor has in total 4 hundred and 10 thousand square feet if i look at how much square footage is dloftd to excellenttion space noted about only one quarter of our total square footage is for exhibition the brunt rest is actually storage space where we must maintain and keep our collection of art bring in artwork conserve them and treat them conservatism space in that context the total number of objects in our collection and i mean that total number we have a total nuke but sometimes difference on
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how you calculate i don't know if you have a whole set of prints or 10 but in total we know we have numbered one and 26 thousand plus objects those kind of if you spread them out to the departments as you can see beyond thirty thousand objects in the legion about one and - almost like 90 thousand that basically has to do with with the brunt large prints and drawings collection as the brunt legion of honor but this is a fairly large and complex and diverse collection other thing i need to make you aware of a different to what you have a painting gallery or even if you have a museum of contemporary art we're keepers of costumes and at that point tries,
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objects, of different kinds, furniture and painting and drawing, etc. to keep and maintain those objects we need skills and also needs different storage amenity and temperatures to keep them photography at different temperatures it is a way to maintaining the culture archive of the achievement of humankind we display our special exhibitions and definitely only one thousand person of the collection is on display but a collection it all about being the brunt keeper even if cultural artifacts or of artwork that used for different
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exhibitions one the bay area we have those objects and wanted to do something and lends them to them but we do about 20 major art exhibitions a year at the legion of honor a lot of time are based on a core on the collection and moving forward in our program is to concept lists we really want to show the brunt strongholds of the institution and boys and girls club build on that ambitious but internationally exhibition program right now at the legion of honor very a celebrated show on 7 century french painting and recorded on that we hope you'll have the possibility to visit it
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in the next couple of months one of the contemporary american artists of his generation and then benny the photographer for - which will get his large-sca large-scale retrospective of his art i know you don't have time but see how far ahead we're planning our exhibition program is quickly stitched together no, but requires planning and budgeting three to four years ahead so i'm just giving you a quick synopsis of the exhibitions of the legion of honor and early - shawn and
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other sculpts turns and work from our collection of art 1906 and then f d young will open in april of next year a picture on the brunt sum of life on the history of the city during that particular time then smog really different happening at the same time in other galleries about the brunt marilyn projects from new zealand and from many mexican considerations is here then a show on precision our development of the 1920s ones
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last name the different and challenging evolution showing african objects again another show in africa and another show of missouonet - the building i challenge for upkeep it is important for you to know because the buildings have owned by the brunt city so and this city money and locations help us to maintain those buildings to improve them to the way to preserve the collection within those institutions so we have done a different kind of arrest
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chief and work to give you as you may know any of those houses about all sorts of - the brunt necessities to maintain the brunt buildings and someone's o sometimes the brunt projects we have may is here we have a real issue right now because our whole system broken down and it is something that is challenging we don't have temperature control that is a risk to very valuable work we need the brunt city's report to replace the brunt exchange of honor - >> but then, of course, the
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brunt notion of the museum is not solely a reapostrophe for artwork but all about outreach and education it is about coming together it is a community not sole a place to visit but a place that radiates and takes on tasks in schools it is about cultural and education of a different kind for example, the internet especially for old school - we'll be completely prepared to - concerts and performances of different kinds that kind of speak to different audience but then i think one of the question is supervisor peskin has raised is how do we do as a
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administrators and make sure that city assets are properly kept in this institution now i have to say this is one part i really feel confident the my name is performing at perfect amongst it's peers and one of the proof of that is what we call the the american association of - basically like a self-imposed audit to the american association of museum comes from time to time and basically checks how we keep and what our procedure that is the brunt same way that is industry standard we have evaluations continually amongst ourselves among the brunt museums to be on
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par with what is happening and there's a whole series of other elements that reilly make sure that the assets a properly managed and give you a quick overview the brunt departments taking care of different areas a quick synopsis and the staffing for the brunt staff they're not solely there to produce exhibitions but really keepers of the collection keepers in this case of the city assets and here images of our conservatism department that certainly one in - the brunt best in the country and well-equipped and show you some examples of kind of how we can keep and treat the artworks i
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have to say in my quick overview of the one and 26 objects in the collection almost everything the brunt city owns is a couple of arts within the foundation it is - really one of the smallest seethsd so here you'll see the brunt work in the conservatism labs and that's what i've spoke about beforehand different storage areas have different kind of efforts of maintaining this work so - >> and here you see the brunt complexity of the documenting of artwork and basically a question of storage from puck you transport it to a special area then photograph it and dig it's
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it and bring it back we've done that for 80 percent of our total collection that is fairly good the collection management again one and 26 thousand objects we get z hundred to one thousand loans has to do with with the brunt restaurant and exhibition program by one .5 million visitors a year that requires a loan process and sending loans out to other major institutions about one hundred loans go out between one and one and 50 the ambassadors the strong collection here collections to have the fine art museums a strong symbol in paris from us
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at the major shows i can only encourage the brunt city of san francisco and it's representatives to make use of that and i will be pleased and i've done it in frankford i know that sometimes the negotiations between the brunt city and other city about becoming sibling cities we can move that platform we're representing the brunt cultural power within the this institution and within the city in general so the overview of the collection management and the acquisitions of bringing negative impact new work to the majority of the nations is financial but the parts - though the money that is funded to the museum is only being used for other artworks coming in not
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other operational needs storage and lending and borrowing i've talked about the brunt transport and this is the transfer of the objects over the challenge with any institution you'll find insurance kind of through the brunt city right now covers a kind of damages i don't know what the proper english word but $200 million so don't. >> don't we have a lord's of london policy on top of that. >> insurance that covers busy our institutions bus the brunt asian art museum and one more - institution. >> but kind of i think. >> the in memoriam. >> yes. exactly but that is something that we might have to
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evaluate from time to time total expenses just again get an idea about it you kind of allocate how much staff time and you spend about $3.3 million a year just for collection care. >> so what's really important for us on the other hand, prove that the brunt museum that very well respected and monitored by the brunt government agencies is near received 3 indemnity programs for the brunt last major check and balancetion through the u.s. government indemnity this is basically, if i look at the brunt total insurance value it is over
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$2 billion a major figure and major help for kind of operating budget. >> now acquisitions that is the commodity how much into the brunt collection and finally into the city holding and what is - that follows the brunt american association of museum guidelines it functions as a commodity so it is recommends gifts and that is prepared, of course, with the brunt different total departments within the institution. >> and director is that a committee of the board of the fine arts museums of san francisco or the corporation. >> it is a foundation board so and it is comprised of the scholars and other members of the transition of the comedy.
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>> i believe it was spoken to on the first hearing. >> quicken acquisitions we've done our 200 and 70 in the fiscal year but almost one thousand nine hundred workers depended upon in the at the same time an idea of the donations. >> i will say one of the challenges as a lot of institutions is we have, of course, the brunt collections management software and that is something that is developed over the course of years and given the brunt whole development of software ♪ area in general and the magnitude of our digital files the objects in particular this is a strong need for us to improve that particular software i mean, that's working and sound but that will require a significant amount of investment
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to kind of come to the next level of collection management software so i think that is kind of what was a broad overview of the assets and supervisor peskin kind of mentioned that very complex set of our structure of sorry - different entities i shouldn't repeat this this is part of last time i'm happy to do it once again but don't want to waste our time >> director lounge how long have you been at the position. >> i started in early june. >> a few months in terms of 3 governing bodies the public one a function of the at the charter in article 5 and
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the foundation and then the nonprofit board co-family how do you find them working together. >> and i guess technically which one you worked for 2 of them or how does that work. >> i worked for all of them director of the museums and in and a city employee as well i think after having the brunt chance for the brunt last 4 months to be involved with the two board meetings i can see kind of a very good understanding how the brunt different boards can work and work together but i have to say, of course, it is a complex structure more complex structure than a
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foundation this is similar to the asian art museum but i think for the brunt different board members it is very clear we - what the brunt responsibilities are and what the responsibility is for the respected boards. >> so you have basically 3 classes of employees people like yourself that is paid by the city and people paid solely by the city and totally by family. >> i have a slide so here's the staff breakdown so you have the co-family staff that is the brunt staff that and total
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co-fam staff is 16 and this is the regular one and 86 unionize and on calls that is store clerks and people that used for in high peak season and then city staff that is staff working in security and other capacities. >> supervisor yee. >> thanks for trying to explain that my question when you were hired who hired. >> i mean who do you report to. >> is that like a bunch of
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people that cast a vote that's how they make a decision to hire you. >> in the process that i assume has taken place and saw happening the boards amongst themselves search for a committee for the brunt right director when i got hired i basically, had a hearing and had this discussions with the brunt search committee that was comprised of board members and i was then hired by the brunt board being represented at a point by the board of trustees. >> and is that the fine arts museum board or the brunt co-fam board. >> both. >> kind of in that sense it is both because you work as a kind of a city employee with - but
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someone that is kind of worked with the co-fam it's an institution as an employer but the foundation. >> and there are how many overlapping employees are paid both by co-fam and fine arts museum of san francisco. >> well, if you see that there are - not an overlap the city employees among the brunt 200 and 5 city employees the frontline staff some management staff the director of museum, the brunt director of human resources and security building and maintenance the brunt chief preparer and two curators are the employees but gather the
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stipend of the program. >> i get it. >> the one thing maybe a representative from the brunt controller's office we'll clear up i've been informed that we have far less full-time equivalent from the brunt city and county my numbers are one and 25 that's because our on calls are fractional. >> that's true what we call positions uh-huh. >> they're not necessarily built. >> with the brunt city they should be filled and maybe now a vacancy we'll bidding right now trying to reevaluate. >> so the brunt total - >> you're saying a total of 5 hundred and 20 total employees. >> right uh-huh. >> got it.
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>> so you'll fall under other 6 employees. >> correct. >> and relative to how those boards are selected and how session within the brunt board membership how does that work the boards are kind of you have a - that's been kind of again something that kind of has before reviewed and kind of i'll say kind of improve there is a - but has a nominating committee taking charge of suggesting new board members that are asking the brunt board members to stay on the board and be therapists kind of a structure of a duration of candidates that can be renewed and serve on the
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board. >> there are no term limits. >> that's the term limit a year but you can get ask gunning again to kind of serve on the brunt board for another term you mean that is something that right now is being worked and what is the brunt best proper subsequence that applies to all people on the brunt board. >> as an industry standard relative to governance is there a best practice that is an appropriate term. >> i have to confess on this front i assume i'm not the brunt absolute specialists on the boards governance i think that is something you have certain institutions i know that - i guess you if you look at the brunt modern art in new york and
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on - the board member for the brunt last decades and has been very beneficial for the institution i guess every board kind of comes to a particular conclusion but there is a proper board structure for every specific institution how you look at that yeah, and and relative to transparency and the ability to see for the brunt public to see the decision makers to see what the individuals out of the three hundred and 16 make is that pubically available i'm talking about salaries is that only available for those on the city does. >> the city does, of course, is yeah - no, that's for the brunt side that is not public informati information. >> thank you. >> supervisor yee. >> i'm still can't get a
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handle on you can have different entities influencing an organization and certainly you can have not advisories and friends to bring in money that's why i asked the brunt question for the hiring and firing who's - which body makes the brunt final decision if there needs to be a final dedication or is the brunt body a body that is not on the diagram that is made up find different individuals from 3 bodies. >> right. >> so i'm not getting a sense of belonging what it is that is governi
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governing. >> right i think i'm not i can properly answer that question in that way but there is a key responsibility of the directors assumes and the brunt board so i don't want to be portrayed that way but the brunt - and firing in that sense for the staff is being done by the brunt director and ceo of the institution but what the board as a whole maybe hires the brundirector. >> when you say board what do you mean what board are you talking about. >> there is something else not on the diagram. >> who made up the board. >> the board is busy -
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different responsibility for the board and kind of how you say a fine arts museum the trust department where the trustees their main responsibility to be the keeper of the assets of the museum so the artwork and the buildings that is reported on. >> that is from the charter and can't exceed 62 people i believe as portfolio members of the board and self-perpetually unlike virtually every other commission we have they elect. >> right and repopulate their governing body they appointed to their own board self-perpetually. >> and the on the foundation
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and the gilding - that's a board that can have up to 17 elected trustees up to 9 and then so - this is busy whether the endowment funds are kept and the co-front it the organization part of institution, of course, i'm here in my capacity as director and ceo of the institution not the neither the chairman the president of the board. >> right. right. >> it is interesting in this governor overview slide is that interesting enough it is the non-exit at the center of this diagram the logical way i think the works this is evolved over years after the last hearing he
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was talking about what happened in 1924 what happened and there are older city attorneys people that actually remember when proposition 13 was passed and have a theory that co-fam come into existence to augment financial giving to the institution as public monies he dried-up but nevertheless, it is interesting not the fine arts museum of san francisco you think the waking way it would work the co-fam and institution lead into the public entity you're correctly a city employee and the way - because and this is just a true fact of life because you're always out they're having to an, an annual
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basis raise a large amount of operating budget and the city is 25 percent of that solution it puts us in angle interesting position which is in any other department of city government the public can see all sorts of things go to the commission meetings and see what the business is and see the minutes and agendas and, figure out you how much a city attorney is paid or a city official like a supervisor it paid because of that diagram it is only an o pack and public side and i don't know if it makes our job any easy as you have to do the instant cycle of fundraisers but the more transparent it is the better off and more beloved that
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will be for whatever that is worth. >> i probably i don't know if i follow that analogy i think having i mean this diagram shows yes. the operation center of the institution that is where all the programming exhibitions, etc. are done and the majority of expenses being coming through and are being paid i don't think though it is - this is a structure that kind of only special to the institution i don't know if you have the same analogies for the similar structure. >> no, i think what is good. >> what i'm trying. >> no, i'm trying to say not something that is done for this particular institution but, yeah - a i'm a new director it is
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something that is done to operate assumed in the best way possibly and makes that flexible and dynamic and gives them the ability to operate in an environment. >> how does that work no frankfurt. >> frankford the city is paid a stipend by the other institution throughout the city is one the board is a city official so there was a separation but the institution i used to run in frankford one of the separate institutions. >> that was associated with one another. >> it was me running 3 of them
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with separate contracts. >> colleagues, any questions anything you want to add ms. moore. >> anybody here from supervisor breed. >> thank you. and welcome to san francisco you started a couple of months ago i wanted to make a few comments that is complicated as supervisor peskin knows i used to run the african-american agricultural complex he started as a executive director but paid under the san francisco arts commission they had challenges and intersection for the arts i was the fiscal year sponsor so it was complicated hard to explain my job was a oversee a budget to raise money but
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technically a city employee and improving expenses through a nonprofit agency because - a lot of i mean public oversight public money involved a lot of process a lot of challenges, but fortunately, we were able to be creative and establishing and setting up a new nonprofit and during the period e developing a nonprofit to oversee the facility very complicated, very frustrating process but ultimately that was 20 to protect the institution in the best interests of the institution i think that oftentimes in the aortas because of the public and private partnership that needs to exist in order to develop the financing necessary to manage those institutions they can be
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complicated and this particular structure is probably one of the most complicated structures that exists as it relates to the relationships with the city i think that what i ultimately want to say is there is never a one-size-fits-all some things work better for one institution and may not for another i think this is a good structure and it works for the institution great if there are improvements that what about made to assure transparency to city funds that would be helpful but ultimately i know that this is an incredible museum and has incredible support and has been a great community partner growing up in san francisco when
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i was a kid you know there were field trips to the defendant young one of the most boring trips as a kid chase interesting after the rebuild especially is that when the de young opened when i was the director of african-american complex that was a lot of outreach from de young to small institutions to invite us in to actually pay our artists to be part of the grand opposite and the performances that continued that fire hydrants with the de young bringing in the community and making that more interesting and making like art especially like things that are exciting for a young kid to have a better
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relationship with the next generation of artists has been remarkable initiative and fun and actually, my favorite institutions in san francisco and we over the years have done so many great things with the dei did not know with the artists have be paid - to be able to borrow fixtures with our smaller institutions was something i do truly appreciate that under mr. buchanan i don't think is a great director and the folks at the museum renee and others have
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been wonderful to the community and the past and i truly appreciate that and hope under our leadership that relationship will continue and with that, i'll say if there is any recommendations or discussion improving the governance structure that can be better proposed we are definitely open to that this is very complicated fortunately, i kind of understand it i'm familiar with that but for the average person sometimes that definitely can get just a little bit confusing and note make sense but ultimately i think that it is important to continue the work of the museum and also to make sure that the public is completely aware of how public dollars you know are being spent and there is full transparency in any process as it relates to
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that and people understand the other parts as it relates to the city dollars specifically a desire to do this i think the corporations i know that nonprofit are required to do anyway that that would be helpful but this is my $0.02 separately but more importantly i want to thank you for being here and i want to thank the museum and it's many members of the board of trustees for their continued advocacy and continued fundraising efforts to make sure that is one of the most treasured and best my name is producing some of the best exhibits i've ever seen you know i mean just the east san lauren and all the creative cool exhibits but really remarkable so i hope that under our
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leadership will continue in that direction thank you. >> thank you supervisor president london breed for those remarks and then before we hear from a representative of the controller's office do you know is there any written agreements between if i mfam and co-fam as researching how the city charter development in 1996 some changes to sections 5 point one 05 of the charter that says the board may enter into agreements with a not for profit or other legal to maintain the funds for museum support there's a word missing
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there but. >> i think right the understanding of that but it is part of whole governance process and all the processes we have right now in kind of have been the work we kind of fortified and put this into more deeper the different responsibilities of board and the cross collaboration between the board so what you see we've hired a non-positive hired as part of the progress started already before i came here is that the management consultants look at this different governance structure and improved some of the - not so much the mechanics but more or less to make that more transparent.
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>> that whole process they each as part of this whole infrastructure taking reviewed a 2012 performance government audit & oversight and city support actually for all the museums this was done simultaneously for the asian and fine arts museums and the war merrily and the academy of conceives have you seen that i mean. >> no. >> so i have a number of finding one findings at least back then this then there was a conclusion the fine arts didn't have sufficient processes maybe gotten better in a number of years and a series of recommendations has to do with are governors around term limits
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as far as i'm concerned, were never adopted and responses from the institution at a time some of them as a thank you but no, thank you some say good idea we'll do it but interesting to have a followup. >> i have to view it i haven't i've been really busy he looked at the current status on the institution i understand it completely understand the past and it is very relevant document but haven't reviewed it i have to assume the recommendations have been followed kind of there has been a process if 2000 to foreperson follow that if anything is not there i'll certainly make is one the duties to look at that. >> i would not assume anything
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thank you director ohio line i'm delighted you're on board and concur with the comments of supervisor president london breed and look forward to helping you do what you need to do to secure the fund and continue to make that institution it is and with that, i believe someone from the controller's office if you come up and tell us about the status of our ongoing audit that is kind of what got us here in the in the first place. >> thank you. >> thank you. >> hi, i'm kate the audit manager with the controller's office on the audit efforts the fine art museum and the status is basically, we're planning to issue tomorrow so at the next meeting we'll have to present our results any preliminary words you want to share. >> unfortunately, we can't until we get the report. >> the suspense is killing us.
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>> anyone wish to comment that wants to testify sienna motion to continue this through the chair and continue to visit but and we'll be at the helpful as we can we'll continue this item through the chair and we're adjourned

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