Austin audit
-
Upload
kxanwebteam -
Category
Documents
-
view
216 -
download
0
Transcript of Austin audit
-
7/25/2019 Austin audit
1/15
CityAuditor
CorrieStokes
CIA,CGAP,CFE
DeputyCityAuditor
JasonHadavi
CPA,CFE
AReporttothe
AustinCityCouncil
Mayor
SteveAdler
MayorPro
Tem
KathieTovo
CouncilMembers
OraHouston
DeliaGarza
SabinoRenteria
GregorioCasar
AnnKitchen
DonZimmerman
LesliePool
EllenTroxclair
SheriGallo
CityofAustin
Officeofthe
City
Auditor
ThreeYearFollowupAudit
January2016
REPORTSUMMARY
Weconfirmedthat10of15recommendations,reportedasimplemented,
werefullyimplemented.Additionally,wefoundthatmanagementdidnot
implementallrecommendationsinatimelymanner.
AUDITREPORT
-
7/25/2019 Austin audit
2/15
AUDITNUMBER:AU16102
DATE ISSUED:January 27, 2016
TABLEOFCONTENTS
BACKGROUND...............................................................................................................................
1
OBJECTIVE,SCOPE,ANDMETHODOLOGY.......................................................................................2
WHATWEFOUND..........................................................................................................................3
Appendices
AppendixA: ManagementResponse.................................................................................................... 8
AppendixB: OriginalAuditReportSummary&Recommendations................................................... 10
GOVERNMENTAUDITING
STANDARDS
COMPLIANCE
WeconductedthisperformanceauditinaccordancewithGenerallyAcceptedGovernmentAuditing
Standards.Thosestandardsrequirethatweplanandperformtheaudittoobtainsufficient,
appropriateevidencetoprovideareasonablebasisforourfindingsandconclusionsbasedonour
auditobjectives.Webelievethattheevidenceobtainedprovidesareasonablebasisforourfindings
andconclusionsbasedonourauditobjectives.
AUDITTEAM
OlgaOvcharenko,
CGAP,
CICA,
CRMA,
Quality
Assurance
Coordinator
KathieHarrison,CGAP,CFE,CICA,AuditorinCharge
JoJoCruz,CICA,CRMA
AndrewKeegan,CIA,CGAP
CarolineKirschner,Auditor
NehaSharma,CIA,CPA,CISA
KarlStephenson,CGAP,CICA
OfficeoftheCityAuditor
phone:(512)974
2805
email:[email protected]
website:http://www.austintexas.gov/auditor
Copiesofourauditreportsareavailableathttp://www.austintexas.gov/page/archiveauditorreports
Printedonrecycledpaper
Alternateformatsavailableuponrequest
-
7/25/2019 Austin audit
3/15
BACKGROUND
Aspartoftheauditprocess,weprovidedrecommendationstoCity
managementto
address
risks
identified
during
audits.
From
fiscal
year
2013
fiscalyear2015,wemade91recommendations.
AccordingtotheCityCouncilapprovedpolicyandrelatedresolution,theCit
Managerisresponsibleforestablishingaprocesstoensuretimely
implementationofauditrecommendations,includingcreatingactionplanst
addressrecommendationsandperiodicallyreportingthestatustoCouncil.
OBJECTIVEANDSCOPE
Theobjectiveoftheauditwastosummarizeimplementationtrendsfor
recommendationsissuedbyourofficeandtofollowuponhighrisk
recommendationsfrom
the
past
three
years
of
OCA
audits.
The
audit
scope
included15of53recommendationsreportedasimplementedfromfiscalyear
2013tofiscalyear2015.
WHATWEFOUND
Wereviewedauditfindings,recommendations,andthestatusof
recommendationsreporttodeterminewhichrecommendationsreportedas
implementedshouldbetested. Basedonouranalysis,weselected15highrisk
recommendationsfrom6auditreportsissuedwithinourscopeperiod:
AustinTravisCountyEmergencyMedicalServices
CemeterySales
&
Administration
ContractDevelopment&Approval
InformationTechnology&Planning
ParklandDedication
WaterBillingProcess
Weconfirmedthat10of15recommendationsreportedasimplementedwere
fullyimplementedand4recommendationsrequirefurtherwork,and
managementnolongeragreeswith1recommendation. Wealsofoundthat
managementdidnotimplementallrecommendationsinatimelymanner.On
average,ittookdepartments5monthslongerthanestimated.
Severalfactorsthatwebelievemayhavecontributedtodepartmentsnotfully
implementingrecommendationsandnotimplementingrecommendationsina
timelymannerwere:
unclearortechnicalrecommendations;
differingexpectationsforwhatimplementedmeant;
staffturnoverindepartments;and
limitedtestingofreportedimplementation.
Wemadechangestoourprocessin2015tohelpaddresssomeoftheabove
concerns.
January2016
ReportHighlights
WhyWeDidThisAudit
Thisfollowupauditwas
conductedaspartofthe
Officeof
the
City
Auditors
(OCA)FY2016Strategic
AuditPlan. Weconducted
thisauditbecauseprevious
auditworkindicatedthat
whilerecommendations
werereportedas
implementedsomeaudit
findingswerenotbeingfully
addressed.
THREEYEARFOLLOWUPAUDIT
Formoreinformationonthisorany
ofourreports,email
-
7/25/2019 Austin audit
4/15
OfficeoftheCityAuditor 1 ThreeYearFollowUpAudit,January2016
BACKGROUND
TheCityofAustinCharterstatesthattheOfficeoftheCityAuditor(OCA)isresponsibleforassistingthe
CityCouncilinestablishingaccountabilityandimprovingservicedeliverythroughfinancialand
performanceauditsfollowinggovernmentauditingstandards.
Aspartoftheauditprocess,theOCAprovidesrecommendationstoCitymanagementtoaddressrisks
identifiedduringaudits.
Fromfiscalyear2013tofiscalyear2015,wemade91recommendations.
TheOCAoffersauditeddepartmentstheopportunitytoconcurornotconcurwithour
recommendationsandprovideawrittenresponsetotheauditfindingsandrecommendationspriorto
presentingtheauditreportforacceptancebytheCityCouncilsAuditandFinanceCommittee(AFC). In
thescopeperiod,managementconcurredwith86of91recommendationsissued,partiallyconcurred
with4of91,anddisagreedwith1of911.
SOURCE:
OCA
analysis
of
recommendation
implementation
process,
January
2016
1TheLawDepartmentdisagreedwiththeauditrecommendationintheContractDevelopmentandApproval
Audit.However,theAuditandFinanceCommitteerequestedthattheLawDepartmentimprovetheprocessduring
thepresentationofthisaudit.
-
7/25/2019 Austin audit
5/15
OfficeoftheCityAuditor 2 ThreeYearFollowUpAudit,January2016
Auditreportsissuedfromfiscalyears2013to2015includedfindingsrelatedtoavarietyofoutcome
areaswithmostreportsaddressingoneormoreofthethemeslistedinExhibit2.
SOURCE:OCAanalysisofrecommendationcategoryforOCAoutputsforthreeyearscope,January2016
OBJECTIVE,
SCOPE,
AND
METHODOLOGY
ThisThreeYearFollowupAuditwasconductedaspartoftheOfficeoftheCityAuditors(OCA)Fiscal
Year2016AnnualAuditPlan,aspresentedtotheCityCouncilAuditandFinanceCommittee.Lastyear,
weconductedourfirstmultiyearfollowupprojectthatfocusedonselectedhighriskrecommendations
issuedovertheprior5years.Thisapproachexpandedthenumberofrecommendationswewereableto
review.Thisyearwecontinuedthatapproachfocusingontheprior3years.
Objective
Theobjectiveofthisfollowupauditwastosummarizeimplementationtrendsforrecommendations
issuedbytheOCAandtofollowuponhighriskrecommendationsfromthepast3yearsofOCAaudits.
Scope
Theauditscopeincludedfiscalyear2013tofiscalyear2015.
Methodology
Toaccomplishourauditobjectives,weperformedthefollowingsteps:
analyzedOCAoutputs,findings,andrecommendationswithinthescopeperiod;
reviewedtheControllersOfficestatusreportstodeterminetheimplementationstatusreportedby
management;
assessedrelevantrecommendationsfromthepastthreeyearsandselected15toevaluatefurther2;
utilizinginformationcontainedinauditreports,theControllersOfficestatusreports,andauditstaff
feedback;and
testedselected
recommendations
to
confirm
implementation.
2Theserecommendationswereoriginallydirectedto:AustinEnergy,AustinTravisCountyEmergencyMedical
Services,CommunicationsandTechnologyManagement,LawDepartment,OfficeoftheMedicalDirector,and
ParksandRecreationDepartment.
-
7/25/2019 Austin audit
6/15
OfficeoftheCityAuditor 3 ThreeYearFollowUpAudit,January2016
WHATWEFOUND
Finding1: Wedeterminedthat10of15recommendationswerefullyimplemented,while4
recommendationsreportedasimplementedrequirefurtherworkbymanagement.
Weselected15recommendationsreportedasimplementedthatwecategorizedashighriskfrom6
audits.Weconfirmedthat10of15recommendationsreported,asimplemented,werefully
implemented, 4recommendationsrequirefurtherworkbymanagement,andmanagementnolonger
agreeswith1recommendation.
TheParklandDedicationAuditwasissuedMay2013and
contained3recommendations. WeverifiedthattheParks
andRecreationDepartment(PARD)fullyimplementedall3
recommendationswith1ofthembeingfullyimplemented
duringthisfollowupaudit.
PARDhasmadeimprovementsrelatedtomanagementof
ParklandDedication(PLD)informationandfunds. For
example,PARDpopulatedaninternaldatabasewith
collection,expenditure,andhistoricalPLDinformation;
implementedaprocesstocalculateandreviewPLDfee
assessments;andcreatedawebsitetomakePLD
informationreadilyavailabletodevelopersandthepublic.
Inaddition,PARDplanstoaddanewinteractive
PLDmaptotheirwebsiteinthefirsthalfof2016.
TheContractDevelopmentandApprovalAudit
wasissuedinMarch2014andcontained1
recommendation. AlthoughtheLawDepartment
didnotconcurwiththisrecommendation,the
AuditandFinanceCommitteerequestedthatthe
LawDepartmentmakeimprovementsrelatedto
thedevelopmentandapprovalofcontracts.
WeconfirmedthattheLawDepartment
implementedthese
improvements
based
on
a
reviewofrandomlysampledcontractsfromfour
departments3. Wefoundthatthecontracttemplates,changestohighriskclauses,andindividual
contractswerereviewedbytheLawDepartment. WealsofoundthattheLawDepartment
communicatedthedepartmentsresponsibilitiesfordevelopingcontracts.
3CapitalContractingOffice,EconomicDevelopmentDepartment,NeighborhoodHousingandCommunity
Development,andPurchasingOffice
-
7/25/2019 Austin audit
7/15
OfficeoftheCityAuditor 4 ThreeYearFollowUpAudit,January2016
TheAustinTravisCountyEmergencyMedical
Services(ATCEMS)OutcomesAuditwasissued
inSeptember2013andcontained4
recommendations. Thefirst2recommendations
weredirectedtoATCEMSandweverifiedthat
theywerefullyimplementedby:
developingastrategic
plan
that
addresses
increasesinservicedemandsduringthis
followupaudit;and
solicitinginputfromaworkgroupofkey
stakeholdersandanexternalcontractorand
rollingoutimprovementstothefield
employeeworkscheduleinJanuary2016.
Thethirdrecommendationwasdirectedtothe
MedicalDirectorandweconfirmedthatthis
recommendationwasfullyimplementedwith
assistancefromATCEMS.Specifically,thetwodepartmentsworkedtogethertocontactcomparable
citiesandconsultwiththeTravisCountyMedicalSocietyonpolicyoptions,impact,andalignmentwithorganizationalstrategicplans. Basedonthisinformation,theformerMedicalDirectorrevisedclinical
guidelinesfortransportingpatientstothehospitaloftheirchoice.
ThetemporaryMedicalDirectordisagreedwiththefourthrecommendation. Hepointedoutthatthe
processtoreviewhighrisk/lowfrequencyevents,suchasheartattacks,arealreadyreviewed.
However,hethoughtthereviewoflowrisk/highfrequencyevents,suchassprains,wouldnotbean
appropriateprocessoreffectiveuseofresourcesthatarefocusedonreviewingeventsthatimpact
patientoutcome. TheOfficeoftheMedicalDirectormanagementalsonotedthatthelowrisk/high
frequencyeventsrarelyhaveanimpactonpatientoutcomes.Inthecaseswheretheydidimpact
outcomes,thesecasesfellintotheroutineclinicaleventreviewprocessconductedbyATCEMSeverysix
months.
TheInformationTechnologyGovernance&PlanningAudit
wasissuedinOctober2013with3recommendations.We
tested2recommendationsreported,asimplemented,and
verifiedthatneitherrecommendationhasbeenfully
implemented. CommunicationandTechnology
Management(CTM)hasdevelopedseveraldocuments
outlininggoalsandinitiatives,aswellasacommunication
plan
and
brand
strategy
to
improve
communications
and
clarifyrolesandresponsibilities.
Additionalworkisneededtofullyimplementboth
recommendations,including:
identifyingstrategies,initiatives,andmeasuresforall
keygoalsandmonitoringtheimplementationtocompletion;and
expandingexistingcommunicationdocumentstoeffectivelyaddressthecommunicationgap
identifiedduringtheaudit,aswellasthefollowupsurveyconductedbyCTM.
-
7/25/2019 Austin audit
8/15
OfficeoftheCityAuditor 5 ThreeYearFollowUpAudit,January2016
TheWaterBillingProcessAuditwasissuedin
September2014with5recommendations. We
testedthestatusof4recommendationsreported
asimplemented. WeverifiedthatAustinEnergy
fullyimplemented3recommendationsby
developing,implementing,andmonitoringnew
processesrelated
to
accuracy
of
meter
reads,
communicationofidentifiedwaterleaks,and
changestokeydatafields.
Wedeterminedthat1recommendationhasnot
beenfullyimplemented. Whilenewprocedures
havebeendevelopedandareinuse,Austin
Energyhasnotyetmonitoredtoconfirmthat
theseproceduresarebeingfollowedandthatthe
changesresultedinaddressingidentifiedissues.
TheCemeterySales&AdministrationAuditwas
issuedinNovember2014with2
recommendations. Wetestedthestatusof1
recommendation,reportedasimplemented,and
foundthatithasnotbeenfullyimplemented.
WenotedthattheParksandRecreation
Departmenthasdevelopedamonitoringand
oversightstructureby:
revisingstaffrolesandresponsibilities;
creatingstandardoperatingprocedureswith
anemphasisonreviewandoversight;
revisingformsandreports;and
conductingpre andpostmonumentsetting
/resettinginspections.
However,additionalworkisneededtoensureadministrativeandoversightresponsibilitiesare
successfullyexecuted,includingfillingthreevacantpositionsintheCemeteryOperationsGroupand
ensuringadequate
supervision
is
consistently
provided.
-
7/25/2019 Austin audit
9/15
OfficeoftheCityAuditor 6 ThreeYearFollowUpAudit,January2016
Finding2: Managementdidnotimplementallrecommendationsinatimelymanner.
Wenotedthat,onaverage,departmentsestimatedthatitwouldtakethemaround5monthstoaddress
recommendations.Theproposedtimelinesrangedfrom0months(recommendationsreportedtobe
implementedduringtheaudit)to2yearstoaddresstheissue.
WereviewedreportsissuedbytheControllersOfficewithmanagementreportedstatusofthe
recommendationsto
analyze
the
timeliness
of
implementation.
The
latest
available
reports
addressed
74recommendationsfromourscopeperiod. Ofthose74recommendations,53recommendationswere
reportedasimplementedand21werereportedasnotyetimplementedbymanagement.
Ofthe53recommendationsreportedas
implemented,77%oftherecommendationswere
reportedasimplementedwithinoneyearofthe
originalestimateddateandonly10%were
reportedasimplementedwhenoriginallyplanned.
Theanalysisofthereportshowsthatittookabout5monthslonger,on
average,thanexpectedtoimplementourrecommendations. For7
recommendations,the
lag
was
over
ayear.
Ofthe21thatwerenotyetreportedasimplemented,3werefromFY2013,
11fromFY2014,and7fromFY2015. Additionally,wesawthat7
recommendationsissuedinFY2009toFY2013werereportedasstillunderwayin2015.
NotaddressingtheissuesidentifiedinauditsinatimelymannerleavestheCityexposedtorisks
identifiedinthoseaudits.
Observations:
Accordingto
aCity
Council
approved
policy
and
related
resolution,
the
City
Manager
is
responsible
for
establishingaprocesstoensuretimelyimplementationofauditrecommendations,includingcreating
actionplanstoaddressrecommendationsandperiodicallyreportingthestatustoCouncil.
InconductingthisworkandtheFiveYearFollowUpprojectinDecember2014,weidentifiedseveral
factorsthatwebelievehavecontributedtothegapsweareseeingintermsofimplementationstatus
andtimingoftheimplementation. Specifically,wenotedthat:
recommendationsmayhavebeentootechnicaland/orunclear;
managementmaynothaveenoughdetailedinformationregardingtheconditionsthatour
recommendationsareintendedtoaddress;
staffresponsibleforimplementingrecommendationsmaynotbeinvolvedindevelopingtheaction
plan;
expectationsregardingwhatconstitutesanimplementedrecommendationvary;and
implementationofrecommendationsmaylosemomentumwithstaffturnover.
Beginningincalendaryear2015,ourofficeinitiatedthefollowingstrategiesthatmayaddresssomeof
thefactorsnotedabove:
routinelycommunicatingfindingsearlierintheauditprocess;
incorporatingmoreinputfrommanagementintorecommendationdevelopment;
-
7/25/2019 Austin audit
10/15
OfficeoftheCityAuditor 7 ThreeYearFollowUpAudit,January2016
consistentlyprovidingalongerperiodformanagementtoreviewauditfindingsanddeveloptheir
response;and
reviewingmanagementresponsespriortoreportissuancetodeterminewhetherplannedstrategies
willaddressauditrecommendations.
Inaddition,followingthisproject,weplantoinitiateaninternalprojecttoimproveclarityofaudit
recommendations.
Wewill
continue
to
monitor
the
strategies
above
to
determine
whether
more
effortsareneededtoensureourrecommendationsareimplementedtimelyandfully.
-
7/25/2019 Austin audit
11/15
APPENDIXA
OfficeoftheCityAuditor 8 ThreeYearFollowUpAudit,January2016
MANAGEMENTRESPONSE
-
7/25/2019 Austin audit
12/15
APPENDIXA
OfficeoftheCityAuditor 9 ThreeYearFollowUpAudit,January2016
-
7/25/2019 Austin audit
13/15
APPENDIXB
OfficeoftheCityAuditor 10 ThreeYearFollowUpAudit,January2016
ORIGINALAUDITREPORTSUMMARIES&RECOMMENDATIONS
ParklandDedication,May2013
TheParksandRecreationDepartment(PARD)generallycomplieswiththeParklandDedication(PLD)
Ordinance,exceptthatfeesfromdevelopersarenotexpendedwithinfiveyearsofreceipt. While
expendituresof
PLD
funds
on
park
improvements
during
FY
2012
were
for
appropriate
purposes
and
withinanallowabledistance,weidentifiedotherareaswhereefficiencyandeffectivenesscanbe
improved. Forexample,PARDdoesnotalwayscorrectlycalculatefeeassessmentamountsandwas
unabletolocatesomesupportingdocumentation. Inaddition,PLDinformationwasnotreadily
availabletoPLDfeepayersorthepublic.
Recommendation1:ThePARDDirectorshouldensurethedepartmentexpendsPLDfunds
withinthefiveyearperioddefinedbythePLDOrdinanceanddevelopprocedurestoobtainfive
yearextensionsforexceptions.
Recommendation2:ThePARDDirectorshouldreview,revise,andimplementaprocessfor
calculatingand
reviewing
PLD
fee
assessments
to
ensure
accuracy.
Recommendation3:ThePARDDirectorshoulddevelopandimplementaplantomakePLD
information,includinginformationonthecollection,expenditure,andavailabilityofPLDfunds,
readilyavailabletodevelopersandthepublic.PARDswebsitemaybeonevehicleformaking
theinformationreadilyavailable.
AustinTravisCountyEmergencyMedicalServices(ATCEMS)Outcomes,September2013
ATCEMSprovidesqualitypatientcare;however,hasnotestablishedalongtermplanonhowit
wouldprovideservicesasdemandincreases. ATCEMSemployeesreportedthattheyexperience
fatigue,it
is
getting
worse,
and
it
impacts
the
quality
of
their
work.
In
addition,
ATCEMS
medics
transportlowprioritypatientstofacilitiesbasedonpatientpreference,whichincreasesoperational
costsandmayleadtoperiodswhenunitsareunavailableforhigherprioritycalls. ATCEMSalsodoes
nothaveaformalprocesstoassesslowpriorityincidents.
Recommendation1:TheATCEMSDirectorshoulddevelop,document,andcommunicatea
sustainablelongtermactionplanthataddressesincreasesinservicedemandsandensuresthe
organizationachievesitsstrategicgoalsandobjectives. Inaddition,theATCEMSDirectorshould
reviewandrevisetheplanannuallytoassureitrecognizeschangingdemandsandalignswith
theCitysImagineAustinplan.
Recommendation2:
The
ATCEMS
Director
should
establish
agroup
with
representatives,
includingtheOfficeoftheMedicalDirector,humanresources,theATCEMSemployee
associationliaisons,andotherkeystakeholderstodevelopaplantoaddressemployeefatigue.
Thisplanshouldevaluatethehybridshiftoptionandthetotalworkhoursperweek,withregard
tosafetyandeffectiveness.
-
7/25/2019 Austin audit
14/15
APPENDIXB
OfficeoftheCityAuditor 11 ThreeYearFollowUpAudit,January2016
Recommendation3:TheMedicalDirectorshouldworkwithstakeholders,includingATCEMS
management,toreviewandrevisepolicieslaidoutinthecurrentclinicalguidelinesand
OperationsManualfortransportinglowprioritypatientstothefacilityoftheirchoice. The
MedicalDirectorshouldensurethepolicyconsiderstheefficientandeffectiveuseofits
resources,whilecontinuingtomeetdesiredpatientoutcomes.
Recommendation4:TheMedicalDirectorshoulddevelop,implement,andmonitorguidelines
governingtheformalreviewoflowpriority/highfrequencyincidents,includinghowtoassess
thequalityofpatientcareprovidedintheseinstances.
InformationTechnology(IT)GovernanceandPlanning,October2013
TheCityhasimplementedanITGovernancestructuretooverseeITdecisionmakingand
communicationprocesses. However,itdoesnothaveaneffectivecommunicationprocessinplace
foritsstrategicinitiativestoensurethatdepartmentshaveenoughinformationforthemto
understandtheirrolesandresponsibilities,anditisnotclearwhohasoperationalresponsibilityfor
implementingthe
IT
governance
initiatives.
In
addition,
the
City
has
only
partially
implemented
IT
strategicplanningandservicedeliveryinitiatives,andithasnotputintoactionasufficientlydetailed
tacticaloperatingplan. Withoutfullimplementation,theCitycannotensuresuccessful
implementationofITgovernanceandplanning.
Recommendation1:TheCIOshouldcontinuetodevelop,implement,andmonitoracitywideIT
StrategicPlanthatlaysoutaspecificvisionorvaluesandgoalsthatarecommontostrategic
plans. Italsoshouldpresentspecificgoalswithdetailedstrategies,initiatives,andmeasuresfor
ensuringthattheCityachievesthegoals.
Recommendation3:TheCIOshouldalsodevelopacitywideriskmanagementplanthatincludes
detailedsteps
to
mitigate
IT
risks
on
an
ongoing
basis.
ContractDevelopmentandApproval,March2014
ThereislimitedevidencethatallCitycontractsarereviewedbyLaw,asrequiredbyCityCharter,
resultingincontractsthatmayincreasetheCitysrisk. Additionally,contractclausesdesignedto
safeguardtheCitysinterestsarenotconsistentlyincludedinallcontractdocuments,andtheredoes
notappeartobeanestablishedreviewprocessforcontracttemplates.
Recommendation1:TheCityAttorneyshouldworkwiththePurchasingOfficetodevelop,
implement,communicate,andmonitoraprocesstoensurethat:
a) contract
templates
used
by
City
departments
are
followed
or
changes
to
the
templates
arereviewedandapprovedbytheLawDepartment;and
b) allcontracttemplatesusedbyCitydepartmentsareperiodicallyreviewedforcompleteness
andcompliancewithlaws,regulations,andcontractingbestpractices.
Audit&FinanceCommitteeRecommendationtoManagement
TheLawDepartmentshouldworkwiththePurchasingOffice,EconomicDevelopment
-
7/25/2019 Austin audit
15/15
APPENDIXB
OfficeoftheCityAuditor 12 ThreeYearFollowUpAudit,January2016
Department,ContractManagementDepartment,NeighborhoodHousingandCommunity
Development,andotherdepartmentsthatdevelopcontractstocreatealistofhighriskclauses
thatshouldnotbedeviatedfromwithoutlegalreview. TheLawDepartmentshouldworkwith
contractingdepartmentstoensurethatalldeviationsfromthosehighriskclausesarereviewed
priortotheexecutionofthecontractandthisreviewshouldbedocumentedandincludea
reasonfor
the
deviation.
Any
modification
to
the
template
itself
requires
legal
review.
WaterBillingProcess,September2014
AustinEnergy(AE)hasaprocesstocomparecurrentwaterreadstohistoricalwaterusage,butthis
processdoesnotdetermineifwaterreadsareaccurate.Approximately91%ofreadsarebilledto
customerswithoutreviewbyAEbillingstaff,andeventhisreviewmaynotensurecustomerbillsare
accurate. Additionally,systemcontrolsdonotpreventchangestokeydatafieldsandAEdoesnot
regularlyreviewthesechanges.Lastly,AustinWaterUtilityistakingstepstoimproveperformance
relatedtomaintenanceandtestingoflargewatermeters,butdoesnotproactivelyaddressissues
relatedtosmallmeters.
Recommendation1:AEManagementshoulddevelop,implement,andmonitoraprocessto
measure,evaluate,andimprovetheaccuracyofmeterreads,includingthosethatfallwithinthe
expectedrangecalculatedbyCC&B.
Recommendation3:AEManagementshouldimprovereviewprocessestoensureallsystem
flaggedreadsarethoroughlyreviewedpriortobillinganddocumentinpolicyhowrereads
shouldbeorderedaswellasacceptabledeviationstotheprescribedpolicy.
Recommendation4:AEManagementshouldalsodevelop,implement,andmonitoraprocess
thatensuresthetimelyidentificationandcommunicationofpotentialwaterleakstorelevant
stakeholders.
Recommendation5:AEManagementshoulddevelop,implement,andmonitoraprocessthat
ensureschangestokeydatafieldsarerecorded,authorized,andmonitored.
CemeterySalesandAdministration,November2014
WefoundagenerallackofoversightofsalesandrevenuecollectionbytheCemeteryOperations
Group. Thisresultedinerrorsandinaccuraciesintheprocessingofburialspacesales,inthe
recordingoffinancialtransactions,andimpropercashhandlingpractices. Inaddition,weidentified
asignificantviolationoftheCityscashhandlingpolicy.
Recommendation1:
PARD
should
provide
an
adequate
monitoring
and
oversight
structure
for
theCemeteryOperationsGrouptoensuresalesandadministrativeresponsibilitiesare
successfullyexecuted.