KPMG combined sector experience and technology insights to reshape integrity monitoring

KPMG had served as the city’s Integrity Monitor in previous crises and had the experience and the resources to manage large, multipart engagements. In addition, the firm had a strong background in the construction and healthcare sectors, and both would likely be major beneficiaries of the awarded contracts. Along with the right people and skills, KPMG came in with the right roadmap.

Organization: Attacking the problem

KPMG realized that it would need people to deal with the city agencies to get permissions to visit the sites holding the refugees. It would also need people to inspect the sites and interview the guests—“guests” is the term of art—many of whom spoke no English. The information they gathered would have to be segmented into standardized categories, where individual answers could be coded and analyzed. An analytics team, well versed in artificial intelligence (AI) and natural language processing, would be needed to develop the models that processed the data and provided reports.

KPMG quickly assembled project management teams, field teams, and analytic teams. Three project management officers (PMOs) dealt with city agencies, scheduling and tracking site visits. Site teams visited the guests where they were housed. On the analytics side, KPMG selected data scientists from its Lighthouse and tax evaluation teams. Approximately 15 people worked scraping data from contracts and invoices and developing programs to mine it.

Improvements: Not just identifying problems, but fixing them

From the site visits, KPMG learned that food waste was a significant problem. At some sites, up to 70 percent of the ordered food was thrown away. There was nothing wrong with it per se, but it was out of touch with the religious restrictions or dietary preferences of the new residents. This waste was not only an economic issue, but also a fire hazard: residents would smuggle hot plates and air fryers into the facility and try to do their own cooking. Indeed, contraband of all kinds remains an ongoing concern, and KPMG has recommended several measures, such as equipping security guards with scanning wands, to interdict weapons and drugs.

When KPMG brought the food waste issue to the attention of city agencies, the agencies acted. They ordered providers to reduce the amount of food they were buying and, going forward, to track the amount of food purchased and the amount thrown away. Now, with statistical data, the city could see the effects of better management. Between mid-2023 and March 2024, thanks in large part to the efforts of KPMG, the city has saved an estimated $15 million in food waste at the shelters alone.

In addition, the city surveyed the guests to find out exactly what type of food they preferred for breakfast, lunch, and dinner. Their preferences drive the city’s choice of vendors. If a given vendor can’t provide desirable foods based on survey results, then the city will find another. The wide number of ethnicities represented in the shelter population has often required the city to reach out to small, specialized providers. Every item in every purchase can be identified and tracked.