VIRGINIA BEACH, VA – A new audit report from the City of Virginia Beach, Va. found that the City’s fleet garages need better security and oversight. The City’s public works division concurred with the auditor’s findings and has already implemented a number of the recommended changes. The audit found no cases of fraud.
The auditor found a number of weaknesses in inventory control processes, specifically in that all seven individuals who work with parts inventory handle all related duties and have access to all related records.
The auditor recommended public works segregate the opening and closing of work orders to prevent a single individual from opening a work order, charging for equipment, and closing the order, with no one else involved. Public works concurred with the recommendation and implemented changes, and related recommendations, in Oct. 2011.
A related set of recommendations said that garage facilities should have cameras and a swipe card system, installed in the main garage and at other facilities in order to better monitor inventory. Public works has already implemented the camera installation at one facility and said the rest of the cameras would be installed within 45 days of the audit report being issued and the swipe card system installed within 60 days.
Another recommendation was for the City auditor’s office to annually observe and test the process for counting physical inventory, to ensure independent verification of the process, and public works concurred.
Other recommendations include better monitoring of special parts ordering and code purchase orders and related invoices to identify specialized uses of parts (boats, a helicopter, and parts at a different location). Public works had already begun better monitoring at the time this report was issued and implemented the account coding changes in late December, 2011.