HomeMy WebLinkAboutAudit Reports - Public - Utility Billings and Collections - Audit Follow-up - 10/26/2018
Date: October 26, 2018
To: Kevin R. Phelps, City Manager
From: Candace MacLeod, City Auditor
Subject: Audit Follow-up: Utility Billings & Collections
A utility billings and collections audit was performed by an external consultant, REDW
LLC., under the supervision of the City Auditor’s Office in 2017. The purpose of the audit
was to evaluate the effectiveness of the City of Glendale’s utility billings and collections
processes and determine compliance with applicable ordinances, policies, and
procedures. A follow-up was conducted in February 2018 to review the actions taken
by management to address the five audit recommendations, indicating that one
finding remained open.
An additional follow-up was conducted in October 2018. The follow-up determined that
procedures and management reports were developed to monitor account
adjustments processed by staff.
Attachment
cc: Chris Anaradian, Assistant City Manager
Michael D. Bailey, City Attorney
Lisette Camacho, Assistant Director of Budget and Finance
Tom Duensing, Assistant City Manager
Vicki Rios, Director of Budget and Finance
_____________________________________________________________________________________
City Auditor’s Office 1 Utility Billings & Collections Follow-up
Audit
Recommendation
Management
Response February
2018
Management
Response October
2018 Status
2. Budget and Finance
should implement
controls to ensure that
unauthorized
adjustments to
customer accounts
would be caught. This
may include
periodically running
adjustment reports
and evaluating the
users and amounts,
and following up on
any abnormal activity.
Additionally, Budget
and Finance should
train individuals
responsible for
performing
adjustments on the
documentation
required and the
authorization levels
needed for
performing
adjustments.
In August 2017, the
Budget and Finance
Department
developed procedures
for ensuring all
adjustments are
reviewed and
approved by
supervisors.
Additionally, Budget
and Finance
employees responsible
for performing
adjustments received
training on Procedure
503 and authority
levels on February 9,
2017, March 15, 2017,
and November 30,
2017.
Budget and Finance is
working with IT to
develop a report and
will draft procedures to
ensure employees
have not exceeded
their authorized dollar
threshold by February
28, 2018.
The Adjustment audit
report was
completed in
February 2018 and
written procedures
were developed in
September 2018.
Closed