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SACRAMENTO, Calif. (KTXL) — The Sacramento City Auditor’s office released a new report on the city’s Office of Cannabis Management finding areas needed for improvement as the cannabis industry continues to grow.

Sacramento City Auditor Jorge Oseguera told FOX40 his office found two ways to improve the department.

“This particular piece really targeted our education, policy making and outreach efforts,” Oseguera explained. “Enhance their policy making process and ensure new policies are effective at addressing identified issues.”

Osegeuera says the Office of Cannabis Management has only used less than 1% of the $750,000 allotted to them for community outreach.

“Get off the ground a more robust program to target those that are at risk and better educate our adolescence and youth,” Oseguera advised.

While Sacramento City Cannabis Manager Davina Smith told FOX40 she agreed to most of the auditor’s findings, she says her department does not agree with the recommendation of having a formalized approach when it comes to policy making.

“Unfortunately, with the size of our staff, we have two people devoting about 20% of their time to policy work,” Smith explained. “We just don’t have the staffing right now at this point to make it into a formal process.”

Oseguera says the department should make it a priority.

“From my perspective, I think it’s time well spent and if the resources aren’t available, then perhaps we should be considering whether some resources should be made available,” Oseguera said.

And when it comes to the large amount of money that has not been used, Smith says the pandemic delayed the department’s plan to use it.

Smith says she’s looking forward to kicking off the community outreach initiatives soon.

So far, Smith says her department has taken most of the advice from the auditor’s office and have already implemented positive changes.

“It is a lot of work. I think we’ve done a lot of work and I think the auditor has acknowledged that,” Smith said.

The auditor’s report will be presented to the Budget and Audit Committee this week and forwarded to city council for approval.