AUDITOR’S REPORT FACILITIES AND PROPERTY MAINTENANCE ... · RE: Facilities and Property...

AUDITOR’S REPORT

FACILITIES AND PROPERTY MAINTENANCE

HEATING, VENTILATION, AND AIR CONDITIONING

PROCEDURES

February 9, 2018

Michael Post, C.P.A., M.B.A.

Harris County Auditor

Gary Gray, C.P.A. First Assistant County Auditor

1001 Preston, Suite 800 Houston, Texas 77002-1817

(832) 927-4600

Fax (713) 755-8932 Help Line (832) 927-4558

1

MICHAEL POST , C.P.A., M.B.A.

HARRIS COUNTY AUDITOR

February 9, 2018

Mr. John R. Blount, County Engineer

Office of County Engineer

1001 Preston, 5th Floor

Houston, TX 77002

RE: Facilities and Property Maintenance Heating, Ventilation, and Air Conditioning

Procedures

At the request of your office, and with the change in officials for the Facilities and Property

Maintenance Division (the Office), the Auditor’s Office - Audit Services Department performed

procedures for the Office as described in our combined engagement and scope letter dated May

10, 2017.

Our procedures were limited to the items identified below:

Documented the controls over the Heating, Ventilation, and Air Conditioning

(HVAC) process including the purchasing, tracking, maintenance, use and disposition

of HVAC equipment, parts, and Freon and selectively tested to determine the design

and operating effectiveness of these controls.

Selectively tested to determine whether HVAC equipment, parts and Freon existed

and were recorded in accordance with County and/or internal policy.

The engagement process included providing you with a combined engagement and scope letter

and conducting an entrance and exit conference with your personnel. The purpose of the letter

and conferences was to explain the process, identify areas of concern, describe the procedures to

be performed, discuss any applicable issues identified during the engagement, and solicit

suggestions for resolving any applicable issues. A draft report was provided to you and your

personnel for review.

The work performed required our staff to exercise professional judgment in completing the scope

procedures. As the procedures were not a detailed inspection of all transactions or property,

there is a risk that fraud, errors, or omissions were not detected during this engagement. The

official therefore, retains the responsibility for the accuracy and completeness of their financial

records and property and for ensuring sufficient controls are in place to detect and prevent fraud,

errors, and omissions.

Mr. John R. Blount, County Engineer

Office of County Engineer

2

The enclosed Auditor’s Report presents the significant issues and recommendations identified

during our procedures. We appreciate the time and attention provided by you and your staff

during this engagement.

Sincerely,

Michael Post

County Auditor

cc: District Judges

County Judge Ed Emmett

Commissioners:

R. Jack Cagle

Rodney Ellis

Jack Morman

Steve Radack

Kim Ogg

Vince Ryan

William J. Jackson

3

TABLE OF CONTENTS

RESULTS .......................................................................................................................................4

ISSUES AND RECOMMENDATIONS ......................................................................................5

Overarching Standard Operating Policies and Procedures ...................................................5

HVAC Tracking System ............................................................................................................6

Monitoring of Freon Usage ........................................................................................................7

HVAC Tools ................................................................................................................................9

HVAC Purchases ......................................................................................................................10

Purchasing - Authorized Personnel Listing ...........................................................................11

Validation and Monitoring of Parts Purchased ....................................................................12

Disposition of HVAC Units and Equipment ..........................................................................13

Freon Purchased for Precincts ................................................................................................14

Purchase Requisition Approval Authorities ..........................................................................15

FPM Tools .................................................................................................................................16

Technician Inventory Logs ......................................................................................................17

4

RESULTS

Based upon the procedures performed, the Office’s internal controls over the HVAC process

including the purchasing, tracking, maintenance, use, and disposition of HVAC equipment, parts,

and Freon need improvement.

These matters are discussed in more detail in the following Issues and Recommendations

section of this report.

ISSUES AND RECOMMENDATIONS

5

ISSUE S AND RECO MMENDATION S

Overarching Standard Operating Policies and Procedures ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Subject

Background In accordance with the 2017 Government Finance Officers Association (GFOA), Best Practices

for the Internal Control Environment, management should develop organizational structure and

ensure staff accountability by requiring written procedures for important government processes

and determine how often policies and procedures need to be reviewed, reaffirmed, and updated. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Background

Issue The Office does not have formal written HVAC policies and procedures to guide personnel in

completing tasks consistently across the different regions as well as the Mechanical, Electrical

and Plumbing Shop (MEP Shop).

Not developing formal written HVAC policies and procedures to guide personnel in completing

tasks consistently across the different regions has resulted in each region performing tasks

differently. Lack of written policies and procedures and lack of standardization could lead to

confusion, errors, misappropriation of assets, unauthorized purchases, and financial loss to the

County. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Finding

Recommendations Office Management should establish a timeline for approval and implementation of formal

written HVAC policies and procedures to govern its processes across all regions and require all

staff to read these policies and sign indicating their understanding of these policies. Office

Management should also review, reaffirm, or update these policies on an annual basis. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Recom

Management Response We agree that a policy is needed. One of the major operational changes FPM is implementing

since falling under the Harris County Engineering Department, is the formalization of Standard

Operating Procedures for many topics. FPM will do the same for this topic by developing and

implementing a formalized process to standardize the common procedures concerning HVAC.

We will focus on the tasks that are generally formatted the same throughout each system, such

as the handling of refrigerant and tools. We estimate this document to be complete within 9

months; to include the research for industry best practices, development, drafting and the

approval process. ##AP7F99D2CB323B48E2ADBB31F670246847##Mresp


6

HVAC Tracking System ##IS659EAFD5421B47A886F161A75C8F77A8##Subject

Background In accordance with best practices, management should have an overarching system to properly

track and monitor 100% of all HVAC equipment including, but not limited to, the in-service

date, applicable warranties, required maintenance, maintenance cost, useful life, past repairs,

purchase price, location, description, estimated replacement cost and any other information that

could be used for developing a progressive HVAC budget.

Tririga is the Office’s Equipment and Maintenance tracking system. ##IS659EAFD5421B47A886F161A75C8F77A8##Background

Issue The Office’s system for tracking and monitoring HVAC equipment does not include a

comprehensive listing of all HVAC equipment and key information.

Not using the system to properly track and monitor 100% of all HVAC equipment and

maintenance could lead to errors, misappropriation of assets, and financial loss to the County. ##IS659EAFD5421B47A886F161A75C8F77A8##Finding

Recommendations Office Management should evaluate whether their current HVAC tracking system meets the

needs of the Office. If determined to be sufficient, Office Management should ensure that 100%

of HVAC equipment is recorded accurately in their HVAC tracking system. This should include

documenting the in service date, applicable warranties, required maintenance, maintenance cost,

useful life, past repairs, purchase price, location, description, estimated replacement cost and

any other information that could be used for developing a progressive HVAC budget. ##IS659EAFD5421B47A886F161A75C8F77A8##Recom

Management Response FPM is pleased that the new upgrades to Tririga are moving along quickly and we will soon

have a tool capable of tracking all HVAC systems for all facilities, if funded through

implementation and completion. FPM management agrees that the current means of tracking is

insufficient and we are excited to see the efficiency and completeness that this new tool brings

to our capabilities. We expect this system to be operational in the fall of 2018. ##AP81B544D1BD6F43BF88EBA7E985EAB5A9##Mresp


7

Monitoring of Freon Usage ##IS2E41622B41ED413483E45444D610E317##Subject

Background Pursuant to the County's Accounting Procedures Manual A.1-3, Inventory Internal Control

Guidelines, special safeguards for expensive material and material susceptible to personal use

should be in place and operating properly. In addition, inventory in remote locations should be

counted, and a reconciliation and investigation of differences between the inventory records and

physical inventory should be performed. ##IS2E41622B41ED413483E45444D610E317##Background

Issue The Office does not have sufficient controls in place to ensure Freon is properly inventoried,

tracked and monitored. Freon logs from the MEP Shop did not match and/or reconcile to the

actual Freon physically located at the regions. As a result, 6,218.75 pounds of Freon were not

properly inventoried. The disposition of the 6,218.75 pounds of Freon not properly inventoried

is as follows:

4,501.45 lbs. was not inventoried

46.8 lbs. could not be located

1,656 lbs. was located but not assigned to the technician that was in possession of the

Freon

12 lbs. exceeded assigned amount for the technicians

2.5 lbs. was recorded as used but was physically verified in possession of a technician ##IS2E41622B41ED413483E45444D610E317##Finding

Recommendations Office Management should implement controls to properly inventory, track and monitor Freon

on a perpetual basis. This should include but not be limited to the following:

1. Periodically perform a 100% inventory of all Freon across all locations and update the

inventory log accordingly.

2. Periodic audits of the distribution, usage and documentation of Freon issued and used by

each technician.

3. Weigh Freon and have dual agreement and signoff on the amount of Freon remaining in

the bottle whenever Freon is transferred between technicians or the MEP Shop.

4. Office Management should periodically review documentation pertaining to Freon

tracking for reasonableness. ##IS2E41622B41ED413483E45444D610E317##Recom

Management Response We agree and do consider this a very important topic to address. We have already implemented

changes to improve our methods of monitoring Freon. In addition, FPM will research best

practices within the industry, and will develop an efficient and effective means of maintaining

accountability of refrigerant. Moving forward, FPM will turn in all reclaimed Freon straight to

the vendor for proper disposal and credit. FPM will develop and implement a formalized

process to standardize the common procedures concerning Freon. We estimate the Standard


8

Operating Procedures to be complete within 9 months; to include the research for industry best

practices, development, drafting and the approval process. ##AP801744C7D8834A38921F8558EF9F14D8##Mresp


9

HVAC Tools ##IS20B80C0225EF49A59566CF3B8C5CDADB##Subject

Background Pursuant to the County's Accounting Procedures Manual A.1-3, Inventory Internal Control

Guidelines, special safeguards for expensive material and material susceptible to personal use

should be in place and operating properly. In addition, inventory in remote locations should be

counted, and a reconciliation and investigation of differences between the inventory records and

physical inventory should be performed. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Background

Issue The Office does not have sufficient controls in place to ensure HVAC tools are properly

inventoried, tracked and monitored. As a result, 306 of 2,111 (14.5%) HVAC tools selected for

testing could not be physically located on the vehicles they were assigned to at the time of

inspection. Also, an additional 351 HVAC tools that were physically located were not recorded

on the inventory listing. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Finding

Recommendations Office Management should attempt to locate the missing HVAC tools, and steps should be

taken to identify and address the root cause of these missing tools. If they are unable to locate

the missing tools, they should determine whether County Auditor's Form 3351, County Property

Deletion/Indemnification Request Form, should be submitted to the County's Purchasing

Services Department to obtain Commissioners Court approval to remove the HVAC tools from

their departmental records.

In addition, Office Management should perform an inventory of all HVAC tools and update

their departmental records with sufficient information for effective tracking and monitoring of

HVAC tools to comply with the County's Accounting Procedures. This could be done in

conjunction with the annual inventory required by the County’s Purchasing Rules and

Procedures Manual section 11.2.1, Inventory Responsibilities by Department.

Finally, Office Management should consider implementing unannounced inventory counts to

reconcile HVAC tools to departmental records. Differences should be investigated and

communicated to management. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Recom

Management Response We agree and FPM will develop and implement a formalized process to standardize the

common procedures concerning HVAC tools. We estimate this document to be complete

within 9 months to include the research for industry best practices, development, drafting and

the approval process. FPM will also conduct an inventory of HVAC tools, capture all serial

numbers possible, and take the necessary steps to correct the inventory records with Purchasing.

##AP2C7A8E3E5F0843A992586C893F900143##Mresp


10

HVAC Purchases ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Subject

Background The Office issues blanket purchase orders (PO) for HVAC tools, parts, and equipment. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Background

Issue The Office’s controls surrounding the purchase of HVAC tools, parts, and equipment should be

strengthened. Technicians can purchase HVAC tools, parts and equipment from vendors

without approval. According to Management, their internal policy requires technicians to notify

the supervisor or manager before making a purchase, however the technicians can physically

purchase tools, parts, and equipment without approval as long as they know the PO number.

The administrative assistant does review all purchases made for each work task but may not be

as qualified for this review as a supervisor or manager.

In addition, a County Attorney’s Office Special Investigator was allowed to make an

unauthorized purchase of a ladder after being supplied with the blanket PO number as part of a

test coordinated between the Public Infrastructure Coordination Department, County Attorney’s

Office, and the Auditor’s Office. Office Management did detect the unauthorized purchase

subsequent to our test, however, an unauthorized employee was able to make the purchase just

knowing the PO number.

Inadequate controls surrounding the purchase of HVAC equipment can lead to unauthorized

purchases, misappropriation of funds and financial loss to the County. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Finding

Recommendations Office Management should perform research to determine the reasonableness of implementing

controls requiring the technicians to provide the vendor written approval obtained from their

supervisor or manager prior to all HVAC purchases from vendors. Alternatively, Office

Management could consider requiring a supervisor or manager to call in a verbal approval

directly to the vendor prior to the purchase. In addition, consideration should be given to

centralizing the purchasing of parts and equipment similar to the current process for purchasing

tools.

If a preventative control is not reasonable, Office Management should consider strengthening

their current detective control by requiring a supervisor or manager to approve all HVAC parts

and equipment for each work task order instead of the administrative assistant. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Recom

Management Response We agree and FPM will strengthen our control of ordering and delivery by increasing the

safeguards within the approval process. We will also verify the correct authorization list is in

the possession of the various vendors we work with on a regular basis. Additionally, we will

schedule quarterly review of authorized purchasing lists and inform vendors accordingly. ##APBD455ACA1AB84D239C2B32B93301FC46##Mresp


11

Purchasing - Authorized Personnel Listing ##IS424905F06FD949039E921DA8346CACB6##Subject

Background In accordance with best practices, any master listing of authorized employees, signatures, and or

PIN numbers should be updated on a continuous basis as applicable. This includes removing

terminated employees from the authorized master listing as soon as possible upon termination. ##IS424905F06FD949039E921DA8346CACB6##Background

Issue The Office’s internal controls for updating the authorized master listing of County personnel

authorized to purchase tools, parts, and equipment at vendor locations needs improvement.

Two former employees at the Region 3 location were still on the authorized master listing to

make purchases as of May 25, 2017. One employee’s last day of employment was April 29,

2016 (391 days) and the other employee’s last day of employment was May 12, 2017 (13 days).

However, neither of these employees made purchases subsequent to their last day of

employment, and both employees were subsequently removed from the authorized master

listing.

In addition, there was a vendor that did not have a list of authorized personnel.

Not monitoring or updating the authorized master listing of County employees authorized to

purchase tools, parts, and equipment at vendor locations could lead to unauthorized purchases

made and financial loss to the County. ##IS424905F06FD949039E921DA8346CACB6##Finding

Recommendations Office Management should consider implementing controls to ensure that the listing of all

current personnel authorized to purchase tools, parts and equipment is actively monitored and

all necessary changes are updated and communicated to active vendors as soon as possible

including the removal of terminated employees.

In addition, Office Management should ensure that all vendors have a copy of the authorized

master listing of County personnel authorized to purchase tools, parts, and equipment at their

respective location. ##IS424905F06FD949039E921DA8346CACB6##Recom

Management Response We agree and FPM will strengthen our control of order and delivery, and will verify the correct

authorization list is in the position of the various vendors we work with on a regular basis.

##AP6F93DD137499496A9F5257F2B0D8E431##Mresp


12

Validation and Monitoring of Parts Purchased ##ISED401C431C1B44878730586C19B3ECA9##Subject

Background In accordance with best practices, an independent person should, on a sample basis, validate

parts and equipment purchased for a work task to the actual parts and equipment used for that

specific work task. ##ISED401C431C1B44878730586C19B3ECA9##Background

Issue The Office does not have an independent person selecting a sample of HVAC related work task

locations to physically validate that parts and equipment purchased for a respective work task

were actually used on that job.

Not having controls in place to ensure parts and equipment purchased for work tasks are used

on that respective job could result in the misappropriation of assets and financial loss to the

County. ##ISED401C431C1B44878730586C19B3ECA9##Finding

Recommendations Office Management should consider implementing controls requiring an independent employee

to select a sample of parts and equipment purchased for HVAC related work tasks and validate

that the parts or equipment were used on that specific work task. All variances should be

communicated to Office Management and discussed for resolution. ##ISED401C431C1B44878730586C19B3ECA9##Recom

Management Response FPM agrees that this process could benefit from an additional review. We will implement a

random sampling inspection for managers to conduct. FPM will develop and implement a

formalized process to standardize the common procedures concerning parts. Additionally, we

estimate the standard operating procedures to be complete within 9 months; to include the

research for industry best practices, development, drafting and the approval process. ##AP920C689955AF4187BFCC974829E2258A##Mresp


13

Disposition of HVAC Units and Equipment ##IS23475E6A34A24D92A8B67715DB0E5169##Subject

Background On April 22, 2014, Commissioners Court approved a contract for Harris County to sell scrap

metal to the South Post Oak Recycling Center (Recycling Vendor).

Currently, upon receiving HVAC parts and equipment from the County, the Recycling Vendor

issues a receipt to the individual submitting the parts or equipment. The receipt contains

information such as the time and date of sale, the name of the person selling the items, the types

of metal sold, and the total weight for each type of metal sold. ##IS23475E6A34A24D92A8B67715DB0E5169##Background

Issue The Office does not have internal controls in place to monitor the disposition of HVAC parts

and equipment. Specifically, the Office does not verify that HVAC parts and equipment

removed from service are taken to the Recycling Vendor. In addition, receipts provided by the

Recycling Vendor are not required to be submitted to Office Management for reconciliation to

parts and equipment removed from service or taken to the Recycling Vendor.

Not having controls for monitoring the disposition of HVAC parts and equipment can lead to

misappropriation of assets and financial loss to the County. ##IS23475E6A34A24D92A8B67715DB0E5169##Finding

Recommendations Office Management should implement controls to monitor the disposition of HVAC parts and

equipment by requiring personnel to submit identification of HVAC parts and equipment

disposed of and receipts from the Recycling Vendor with identifying information to Office

Management, along with the associated work tasks. In addition, management should utilize

their system to record and track all HVAC parts and equipment in need of disposal for each

work task as mentioned in Issue, “HVAC Tracking System”, and compare that log to the receipts

received from the Recycling Vendor to ensure all required items have been delivered to the

Recycling Vendor. ##IS23475E6A34A24D92A8B67715DB0E5169##Recom

Management Response We agree and FPM is pleased that the new upgrades to Tririga are moving along quickly and we

will soon have a tool capable of tracking all HVAC parts and equipment for all facilities, if

funded through implementation and completion. FPM management agrees that the current

means of tracking is insufficient and we are excited to see the efficiency and completeness that

this new tool brings to our capabilities. We expect this system to be operational in the fall of

2018 ##AP22D346C1BBFA462E8A1915EAE798E3CD##Mresp


14

Freon Purchased for Precincts ##IS559F852A20914A8C898FCC22C762FF4F##Subject

Background Per discussions with Office Management, the Office is reimbursed for Freon purchased on

behalf of the Precincts through a bill back process and the Freon is required to be left at the

Precinct for which the Freon was purchased. ##IS559F852A20914A8C898FCC22C762FF4F##Background

Issue Freon purchased directly for Precincts is not consistently left on site at the respective Precinct

for which it was purchased as required by management. Based on our physical observation of

vehicles, a technician had 32 pounds of 407C Freon that was purchased for a Precinct but was

not left at that Precinct.

Not leaving Freon purchased for Precincts on site could result in misappropriation of Freon

and/or financial loss to the County. ##IS559F852A20914A8C898FCC22C762FF4F##Finding

Recommendation Office Management should implement controls to ensure technicians leave Freon purchased for

Precincts at the respective Precinct. These controls could include requiring the administrative

assistant to call the Precinct to confirm they have possession of the Freon once the work task

order is completed. ##IS559F852A20914A8C898FCC22C762FF4F##Recom

Management Response We agree and FPM will modify the Standard Operating Procedures for this topic to only charge

the Precinct for what is used. Any remaining refrigerant will be tracked and turned in

accordingly. FPM will develop and implement a formalized process to standardize the common

procedures concerning Precinct Freon. We estimate the Standard Operating Procedures to be

complete within 9 months; to include the research for industry best practices, development,

drafting and the approval process. ##AP53BBDF03224846AD9E0951F6FE1FA810##Mresp


15

Purchase Requisition Approval Authorities ##IS901CCFD973A544CEB4724C98A2CC24DA##Subject

Background Per discussions with Office Management, all purchase requisitions should be approved by the

Maintenance Administrator. Approval of the purchase requisition is to be obtained through the

TriRiga system and noted on the purchase requisition summary report for reference.

Pursuant to the 2017 GFOA, Best Practices for the Internal Control Environment, management

should develop organizational structures and ensure staff accountability by identifying

responsibilities for workflow approvals in their systems. ##IS901CCFD973A544CEB4724C98A2CC24DA##Background

Issue Although management’s intent is to have the Maintenance Administrator approve all purchase

requisitions, the workflow within the TriRiga System does not require the Maintenance

Administrator to approve all purchase requisitions. As a result, there was one instance where an

HVAC invoice’s related purchase requisition was not approved by the Maintenance

Administrator as required by internal policy. The purchase requisition was approved by the

region manager who reports to the Maintenance Administrator. ##IS901CCFD973A544CEB4724C98A2CC24DA##Finding

Recommendations The Maintenance Administrator should perform a review to determine the reasonableness of the

purchase requisition and make a determination as to whether the purchase requisition should

have been approved.

Office Management should review the TriRiga system workflow process with regards to HVAC

purchase requisitions to determine whether they want to require approval by the Maintenance

Administrator specifically within the workflow of the TriRiga System before the purchase

requisition can be submitted for creation of a purchase order. If determined that they want this

approval they should implement a system restriction in the TriRiga System requiring this

approval by the Maintenance Administrator before a purchase order can be created. ##IS901CCFD973A544CEB4724C98A2CC24DA##Recom

Management Response FPM is pleased that the new upgrades to Tririga are moving along quickly and with the updates

to the system we will have the most current industry standard for review and approval of

purchases of this type, if funded through implementation and completion. FPM management

agrees and we are excited to see the efficiency and completeness that this new tool brings to our

capabilities. We expect this system to be operational in the fall of 2018. ##AP611710677C9C4BA0BFA9020E8C9E44D6##Mresp


16

FPM Tools ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Subject

Background Per discussion with Office Management, all tools purchased are to be shipped to the Lockwood

tool shop and processed by the Asset Management Clerk. Once received, the Asset Management

Clerk is required to initial the invoice verifying the receipt of the tools and send the initialed

invoice to the FPM Fiscal Services Department for verification of receipt prior to payment. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Background

Issue Internal controls for approving HVAC tool invoices prior to payment need improvement.

Thirteen out of 15 (86.6%) HVAC tool invoices tested were not initialed by the Asset

Management Clerk verifying the receipt of the tools prior to authorization for payment by the

Office’s FPM Fiscal Services Department as required by management. In addition, the Asset

Management Clerk is not retaining the packing slips for items received. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Finding

Recommendation Office Management should develop controls to ensure all invoices are signed and checked off as

items are received and all other shipping documents are signed and retained. All evidence

supporting receipt of the invoice items should be emailed to the Office’s FPM Fiscal Services

Department for authorization of payment. The Office’s Fiscal Services Department should not

authorize payment on any invoice for which supporting documentation evidencing receipt of the

invoice items has not been received. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Recom

Management Response Property accountability is a very important topic that FPM takes seriously, and we will improve

this process by instituting random sampling of inventory log sheets to ensure staff is conducting

the changes as needed. FPM will develop and implement a formalized process to standardize

the common procedures concerning tools. We estimate the Standard Operating Procedures to

be complete within 9 months; to include the research for industry best practices, development,

drafting and the approval process.

##APC4C5B0153E1D4A7394D9F5663B6D6B7A##Mresp


17

Technician Inventory Logs ##IS00A00109868B4D9080FD00BB08B17256##Subject

Background Per discussions with Office Management, the Asset Management Clerk should require

technicians to sign a new personal inventory log sheet when they receive new tools. ##IS00A00109868B4D9080FD00BB08B17256##Background

Issue The Asset Management Clerk is not consistently requiring technicians to sign a new personal

inventory log sheet when they pick up new tools from the tool shop as required by management.

Twelve of 15 (80%) invoices tested did not have an updated personal inventory log sheet signed

by the technician on the date the tools were received.

Not requiring technicians to sign a new personal inventory log sheet when they pick up new

tools impairs the Office's ability to properly track tools for each technician which could result in

misappropriation of assets and financial loss to the County. ##IS00A00109868B4D9080FD00BB08B17256##Finding

Recommendation Office Management should develop controls to ensure technicians sign a new personal

inventory log sheet when they pick up new tools from the tool shop. Additionally, Management

should establish a monitoring function to ensure controls are being consistently followed. ##IS00A00109868B4D9080FD00BB08B17256##Recom

Management Response Property accountability is a very important topic that FPM takes seriously, and we will improve

this process by instituting random sampling of inventory log sheets to ensure staff is conducting

the changes as needed. FPM will develop and implement a formalized process to standardize

the common procedures concerning logs. We estimate the Standard Operating Procedures to be

complete within 9 months; to include the research for industry best practices, development,

drafting and the approval process.

##AP07CE15BD9B17416FB7208DCD3263917E##Mresp

AUDITOR’S REPORT FACILITIES AND PROPERTY MAINTENANCE ... · RE: Facilities and Property...

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Transcript of AUDITOR’S REPORT FACILITIES AND PROPERTY MAINTENANCE ... · RE: Facilities and Property...