AUSTIN, TEXAS - The City of Austin released the results of an external audit of the Fleet Services department's internal control review procedures. Conducted by Padgett Stratemann & Co. LLP, it was submitted to the City on July 31 and released earlier this month, according to The Austin Chronicle.
Improvements were suggested for internal controls; inventory management; purchasing, billing, and accounts payable and receivable; information technology controls; and general accounting functions.
To improve internal controls, auditors recommended prioritizing the filling of open operational and financial management positions, updating the Policies and Procedures Manual, developing an internal review process, and improving the budget process and financial reporting.
Recommendations to inventory management include review of parts inventory policy, better inventory security, consistency in dealing with scrap and unused parts, and surprise inventory test counts. The report recommended monitoring fuel station maintenance vendors for fulfillment of contracted inspection and maintenance procedures, ensuring the correct amount of fuel delivery, and enhanced fuel monitoring, including logging fuel card use and installing video recording devices at sites. It also suggested a revised tire scrapping process.
Purchasing recommendations include providing improved verification of pricing against contract prices and enhancing the contract monitoring process. One recommendation in billing is a revision of payment process for toll invoices.
The report stated that fleet management should develop a process for an annual review of employees with access to the information technology network. Finally, it recommended that the department ensure correct timesheets and consistent overtime policies.
Fleet Services agreed or partially agreed with the recommendations and some have already been completed.