AUDIT COMMITTEE SUMMARY
February 16, 2021
Audit of Public Works Department Equipment Inventory Management
Report Issued January 7, 2021
Audit Objective
Determine if Public Works is adequately managing equipment inventory to include purchasing, warehousing, and usage.
Background
The Public Works Department provides infrastructure maintenance services such as pothole repairs, traffic signal and traffic sign maintenance, ensures proper storm water drainage, and street markings. They also plan maintenance through the establishment of a 5-year rolling Infrastructure Management Program (IMP) adopted each year. To facilitate this work, Pubic Works manages a stock of equipment, supplies, and materials for use by Public Works employees. Equipment is held primarily at the Northwest Service Center (NWSC) and the Southwest Service Center (SWSC).
Equipment is supplied for Storm Water Operations, Signs and Traffic Operations, Pothole Patrol, Vegetation, Tunnels, and other Public Works divisions. Types of equipment, supplies, and materials includes quick-set concrete, batteries, adapters, cables, poles, paint, sign materials, wood, clothing such as vests and boots, chainsaws, and shovels. Inventory is managed and controlled via excel spreadsheets and is a shared responsibility between Public Works Divisions.
Purchases occur to replenish inventory and to purchase items needed in the field. Purchases primarily occur via annual contracts. Management of contracts is a shared responsibility between Public Works and COSA's Procurement Division. Public Works has approximately $1.2 million of inventory in stock.
Scope and Methodology
The audit scope was FY2018 through FY2020 and included equipment, supplies, and materials below the capital asset threshold. We verified that catalog prices in COSA's procurement management system matched contract prices. We reviewed for the appropriate management of P-Card purchases. Additionally, we reviewed for appropriate segregation of duti...
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