Prosper Portland 2022 Audit Status Report

Information

We are tracking three audit reports and 11 recommendations within Prosper Portland.

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Elected-in-charge: Mayor Ted Wheeler
Bureau or Office Director: Kimberly Branam

We are tracking three reports and 11 recommendations

The audits assessed property management practices, urban renewal in the Lents neighborhood, and pandemic relief grants for small business. Prosper Portland has implemented eight recommendations, and three are in process.

Histogram showing Prosper 2022 recommendation statuses.

Highlight from Last Year

We recommended that Prosper Portland use lessons-learned from the emergency grant program to create procedures that will ensure staff follow program standards when implementing grant programs. Prosper adopted a new grant program management procedure that includes director approval of program guidelines and deviations from them. The procedure also requires periodic analysis of the demographics of grant recipients to ensure the intent of awards are met.

To Do

We recommended that Prosper Portland begin to periodically measure economic results for the goals they have set, update goals as needed, and report progress to the public. Prosper is spending down the remainder of Lents urban renewal funds and is unlikely to make changes to goals and projects funded. The Covid-19 pandemic affected Prosper Portland’s plans. Prosper intended to hire a contractor this fiscal year to provide regular updates on economic indicators at the city and neighborhood level, but now intends to shift this work to Prosper staff. Prosper’s Board of Commissioners received an update on development plans for the Bakery Block and 92nd & Harold in December 2021. Prosper has not reported updated progress against economic goals.

Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes

Report published November 28, 2017 | Follow-up report | Contact E lizabeth Pape

Our 2017 audit of Prosper Portland found that without income goals or equity plans, the agency had limited ability to rely on property management as a major source of income or overcome a legacy of gentrification and displacement. We recommended that Prosper Portland create financial and strategic goals for each property, document equity considerations, perform risk assessments, and adequately monitor third-party operated properties. After the audit, Prosper Portland improved fiscal management by documenting strategic purposes for each property, conducting risk assessments, and requiring more detailed contract provisions. It also documented equity assessments for each property. It performed a competitive solicitation for an operator of the Inn at the Convention Center and was in the process of upgrading parking and renegotiating an operating agreement at Union Station.

On this audit there were seven recommendations implemented, and two in process.

A bar graph showing seven recommendations have been implemented and two are in process.

Lents Urban Renewal: 20 years of investment with minimal evaluation

Report published February 12, 2020| Follow-up report | Contact Minh Dan Vuong

Our 2020 audit found that Prosper Portland's and the Housing Bureau's investments in Lents had mixed results when compared against the City's ambitious goals. Prosper Portland had not comprehensively assessed or reported how its investments, totaling more than $200 million since 2001, changed Lents.

On this audit there was one recommendation in process.

A bar graph showing one recommendation is in process.

Prosper Portland Emergency Grants: Standards needed to ensure program integrity

Report published May 12, 2021 | Follow-up | Contact Elizabeth Pape

Prosper Portland's Small Business Relief Fund provided a lifeline during the early days of the pandemic. Staff successfully delivered dollars to struggling businesses but, in haste, short-changed program integrity. We made recommendations for building a stronger program for the next time disaster strikes.

On this audit there was one recommendation implemented.

Bar chart showing 2022 recommendation status.

In Process Recommendation Details

Icon of a hourglass on a blue background.

We recommended renegotiating the operating agreement for Union Station to include reporting requirements and a compensation structure. Prosper Portland delayed signing a new agreement with the City until finalizing a new lease with Amtrak. The new lease may change the scope of work for the City if Amtrak becomes responsible for security. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended upgrading the parking control system at Station Place Garage. Prosper Portland solicited proposals to upgrade the system in November 2019 and anticipated installation by June 2020. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended that Prosper Portland begin to periodically measure economic results for the goals they set, update goals as needed, and report progress to the public. Prosper Portland took steps to improve reporting, but the pandemic put some work on hold. In the past year, the bureau took some steps to meet our audit recommendation but stressed that they do not expect their programs to affect broad economic results. Prosper postponed the reevaluation of goals and economic analysis to prioritize emergency relief to businesses due to the Covid-19 pandemic. Prosper is now seeking a contractor to begin in Fiscal Year 2021-22 to provide regular updates on economic indicators at the city and neighborhood level. The agency plans to engage with Lents stakeholders in summer 2021 to determine future priorities. Prosper and Housing published a Lents Five Year Action Plan Close-Out Report and presented it to various groups before the shutdown began in 2020. (Lents Urban Renewal: 20 years of investment with minimal evaluation)

Implemented Recommendation Details

Icon of a white check mark on a blue background.

We recommended developing strategic purposes for each property and income goals as outlined in the draft business plan. Prosper Portland’s Board approved property plans for real estate in September 2019. The plans include strategic purposes and income goals. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended amending the financial investment policy to require the committee to regularly review all real estate holdings for potential financial return, even those without pending decisions. Prosper Portland’s Board directed the financial investment committee to review the financial performance of properties at least twice per year. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended performing and documenting risk assessments for each income generating property. Prosper Portland conducted market risk analysis on 10 of its income-generating properties and determined all to be low risk except for one medium-risk property. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended competitively soliciting an operator for the Inn at the Convention Center if Prosper Portland decided to continue ownership. Prosper Portland solicited proposals for an operator for the Inn at the Convention Center in the Fall of 2018. The Agency reviewed three proposals and selected the operator it considered to provide the most value. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended developing contract provisions related to budgeting, reporting, and protecting physical assets that reflect the level of risk. Prosper Portland is amending contracts to add these provisions, including a new parking management contract and a draft property management contract. Existing contracts have not been amended, but contracts drafted since March 2018 have included the provisions. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended creating a monitoring program for each income generating property tailored to contract provisions. Prosper Portland has begun to monitor properties in compliance with contract provisions. Adoption of a new module in its asset management system in March 2020 will allow it to monitor properties more closely and routinely. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended documenting equity assessments for each property in the portfolio. Prosper Portland conducted equity assessments and provided documentation. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)

We recommended that Prosper Portland use lessons-learned from the emergency grant program to create procedures that will ensure staff follow program standards when implementing grant programs. Prosper adopted a new grant program management procedure that includes director approval of program guidelines and deviations from them. The procedure also requires periodic analysis of the demographics of grant recipients to ensure the intent of awards are met. (Prosper Portland Emergency Grants: Standards needed to ensure program integrity)

Data Notes

At the end of every audit report, we issue a series of recommendations intended to make programs work even better. This report includes the status of Bureau recommendations since 2018, which was the beginning of our new follow-up process. We prepared it with a few audiences in mind:

City Council can use it to identify bureaus that may need additional resources or support in order to implement recommendations.
Bureau directors can use it to assess bureau performance and to determine if any changes in policy or procedure are necessary.
Bureau management and staff can use it to track recommendation status across audits to develop work plans and priorities.
General public can use it to monitor the status of recommendations related to topics of interest and to compare performance across bureaus.

This report includes recommendation status as of December 31, 2022.

Translated reports

Most reports are available in four languages: Spanish, Vietnamese, Chinese, and Russian. We are translating new reports as they’re released, but older reports may not be available in a language other than English. If you would like to request a translated version of a report, please contact KC Jones.

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