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HomeMy WebLinkAboutAudit Reports - Public - Materials Control Warehouse - Audit Follow-up - 9/17/2018 Date: September 17, 2018 To: Kevin R. Phelps, City Manager From: Candace MacLeod, City Auditor Subject: Audit Follow-up: Materials Control Warehouse An audit of the Materials Control Warehouse (MCW) was conducted by the City Auditor’s Office in 2014. The objective of the audit was to determine if adequate controls were established to ensure MCW inventory is accurately reported and safeguarded. Follow-up audits were conducted in January 2016 and February 2017 to determine whether actions were taken by management to reduce internal control risks. An additional follow-up was conducted in August 2018 to determine the status of the two remaining outstanding items. Both items remain open and an additional follow-up will be performed in FY20. Please contact me if you have any questions. Attachment cc: Michael D. Bailey, City Attorney Lisette Camacho, Assistant Director of Budget and Finance Tom Duensing, Assistant City Manager Jack Friedline, Assistant City Manager Craig Johnson, Director of Water Services Vicki Rios, Director of Budget and Finance Michelle Woytenko, Director of Public Works _____________________________________________________________________________________ City Auditor’s Office 1 Materials Control Warehouse Follow-up Recommendation Management Response February 2017 Management Response August 2018 Status 6.D Water Services should consider options for implementing a new inventory system in conjunction with Finance and Technology. Evaluation has been completed. Water Services is working in conjunction with Finance to include a warehouse inventory module in the new ERP system. The estimated implementation date is July 1, 2018. After evaluating SimpliCity with Budget and Finance, it was determined that the Munis product warehouse module was not cost- effective. Due to this, the MCW software was included in the contract for Lucity (WSD Asset Management Software) instead. The Lucity project is now underway and has an estimated completion date of January 1, 2020. Open 9.B Public Works should review City Manager Directive 17 and communicate the policy to employees. A future policy recommendation will be made by June 2017 in conjunction with other facilities/space policy needs. Field Operations continues to work with the City Manager’s Office in drafting policy recommendations in conjunction with other building asset and space planning needs. This item will be completed by June 30, 2019. Open