AUDIT COMMITTEE SUMMARY
October 16, 2018
Follow-Up Audit of Finance Utility Reporting Requirements
Report Issued September 26, 2018
Audit Objective
Determine if the recommendations made in the prior audit of the Utility Reporting Requirements have been effectively implemented.
Background
In August 2016, the Office of the City Auditor completed an audit of the Finance Department Utility Reporting Requirements. The objective of the audit was to determine if required reporting and payments from City owned utilities are received, monitored, and accurate.
The Office of the City Auditor concluded that Finance has a standard reporting process in place which includes conducting a monthly variance/trend analysis of revenue payments due to the City. However, the following improvements were recommended in the prior audit. Perform reconciliations of SAWS generated monthly payment statements to financial reports and supporting documentation and perform annual and monthly reviews to verify the accuracy of City utility accounts to ensure that all facilities are owned or leased by the City, the rate categories are accurate, and usage amounts are reasonable.
Audit Scope and Methodology
The audit scope was limited to the recommendations and corrective action plans made in the original report for the time frame from March 2018 to May 2018.
Audit Conclusions
We determined that Finance has successfully implemented adequate controls to address prior audit recommendations.
There were two recommendations from the prior audit and both have been implemented. Finance now reconciles the monthly payment from SAWS with supporting documentation. Additionally, Finance performs a monthly utility account review to confirm that facilities are owned or leased by the City, and to identify any significant variances in usage.
As we had no findings, we made no recommendations.