FY 2012 Audit Reports
To view a summary of any of the following audit reports, click on the report name.
Audit of Electric Utility Reserves (#1201)
Taking into consideration prior activity and events and applicable industry guidance, we found current City policy provides for establishment of reasonable and appropriate reserves for electric utility operations. In recent years, available reserves have been within (or at some points very near) the lower end of the targeted reserve levels established by City policy and levels suggested by industry guidance. Planned uses of reserves in the FY 2012 will, however, place reserves below those levels. Increases in reserve levels over the last decade are attributable to investment earnings and transfers of operating surpluses from electric utility operations, as provided by City policy. Uses of electric reserves over the last decade have been authorized and in accordance with policy provisions. Those uses included (1) temporary provision of working capital to allow the electric utility to timely pay expenses and obligations, (2) repair and other costs related to emergency events, (3) temporary funding of margin calls on hedged deals executed in connection with the acquisition of natural gas used in the generation of electricity, and (4) direct and indirect rate stabilization. Available reserve funds include "operating reserve funds" and "undesignated electric utility repair, replacement, and improvement (RRI) funds". Accounting for electric utility reserve funds and related activity has generally been appropriate and correct.
Audit of Compliance with the City's MBE Program Policy and Federal DBE Policy for Selected Capital Construction Projects (#1202)
The MBE Office expressed concern that a prime contractor may have misrepresented the extent of use of minority business enterprise subcontractors on at least one City capital construction project during the bidding phase, construction phase, and final reporting phase. In response to the City Manager's request, we conducted an audit of selected capital construction projects (21 completed and 3 in progress) involving five prime contractors to determine the extent of noncompliance with the City's Minority Business Enterprise (MBE) Program policy and federal Disadvantaged Business Enterprise (DBE) Program regulations. Based on our testing, we concluded that four of the five prime contractors incurred violations.
Audit Follow-up on Tallahassee Police Department Property and Evidence Function (#1203)
Eight of the 15 action plan steps established to address issues identified in audit report #1116 have been successfully completed or resolved as of September 30, 2011. The remaining seven action plan steps are due to be completed in the future.
Audit of Selected Departments Performing Accounts Receivable Functions (#1204)
We conducted a citywide audit of non-utility accounts receivable (A/R) processes. Our objectives were to obtain an understanding of and evaluate internal controls related to non-utility accounts receivable and collection processes and to identify any billing functions that were not being conducted according to City policies and accounts receivable not reported on the City's financial statements. We also evaluated the internal control environment related to those billing and reporting activities.
While there were overall adequate internal controls in the DMA A/R Section related to processing of billings, we provided recommendations to DMA A/R to further enhance their operations and improve the City's A/R policy.
Final Audit Follow-Up of Gaines Street Revitalization Project (#1205)
Seven of the eight action plan steps established to address the issues identified in our audit of the Gaines Street Revitalization Project (report #1111) have been completed and/or resolved. Because of appropriate actions taken to date in regard to the one remaining action plan step, responsibility for ensuring finalization of that step is being turned over to City management.
Audit Follow-Up of Citywide Disbursements 2009 (#1206)
This report addresses the status of the one action plan step remaining to be completed for issues identified in our initial audit report #1013, Citywide Disbursements 2009. That remaining action plan step pertains to the Treasurer-Clerk's development, and presentation to the City Commission, of a proposed policy addressing participation in the City's health insurance program by certain classes of terminated employees, retirees, and family members of deceased retirees.
Audit Follow-Up of Water Infrastructure (#1207)
As of February 8, 2012, Underground Utilities has completed 28 of the 33 action plan steps due for completion as of September 30, 2011. Because of significant actions completed and/or management determinations, responsibility for ensuring completion of one more of those 33 steps has been turned over to Underground Utilities management. Actions are on-going to complete the other four steps. An additional nine action plan steps are due for completion subsequent to September 30, 2011.
Audit of the Treasurer-Clerk's Revenue Office (#1208)
Overall, the Revenue Office and other applicable City departments and offices have implemented controls and processes that assure revenue and receipts collected by the Revenue Office are properly processed, recorded, and deposited. A few risks were identified for which improvements and enhancements are needed to provide additional assurances.
Audit of Parks, Recreation, and Neighborhood Affairs' Contract with Warner Sports Promotions, Inc. (#1209)
The City has contracted with Warner Sports Promotions, Inc., to perform soccer management services, including scheduling and billing for field rentals and managing soccer and soccer-related activities at the Meadows Soccer Complex, since 1993. The current contract, entered into in 1999, expanded services to also include scheduling and billing of soccer activities at Tom Brown Park. Our audit supported the view that the City's soccer program has grown and strengthened over a number of years largely due to the leadership, dedication, and work of Warner Sports Promotions and other leading soccer organizations in the community. This audit report provided accomplishments, issues, and recommendations that should be considered by City management in making decisions. Going forward, the City needs to 1) revisit its policies related to prioritization of soccer field usage and seek ways to accommodate as many users as possible; 2) track costs to have sufficient information to set fees and monitor cost recovery efforts; and 3) reassess whether scheduling, billing, and managing soccer operations could be performed in-house, contracted with a provider that does not rent soccer fields, or contracted with a company that manages the program and is allowed to also rent fields. All issues where an outside contractor may have a conflict of interest should be thoroughly addressed.
Audit of Active Directory (#1210)
The City's Information System Services department is responsible for managing the City's computer network. For the most part ISS manages the City network's Active Directory in an adequate manner. We also concluded the policies and the implementation of Active Directory were reasonable and provided adequate security over the City's computer network. We did however identify risks that should be addressed to further increase the security of the City's network.
Audit Follow-Up of Compliance with the City's MBE Program Policy and Federal DBE Policy for Selected Capital Construction Projects (#1211)
This is the first follow-up on the Audit of Compliance with the City's MBE Program Policy and Federal DBE Policy for Selected Capital Construction Projects (Report #1202, issued February 6, 2012). Three of eight action plan steps were due as of March 31, 2012. Economic & Community Development (ECD) management reports that significant progress has been made toward revising the Minority Business Enterprise (MBE) program, but as of May 31, 2012, none of the three action plan steps due have been completed. The completion date for each of the three action steps due was amended to be October 1, 2012.
Audit Follow-Up for Electric Utility Reserves (#1212)
Two of the five action plan steps established to address issues identified in our audit of the Electric Utility Reserves have been completed and actions initiated to complete the other three steps.
Audit of City Parking Contracts (#1213)
Overall, City parking contracts were properly and adequately managed and administered by the City's contractor; revenues were properly collected, accounted for, and paid by the contractor to the City; and the City's monitoring and oversight efforts over the contractual operations and activities were appropriate and adequate. Issues were identified that indicated the need for enhancements in processes to further improve contract administration and management.
Audit Follow-Up of Selected Departments Performing Accounts Receivable Functions (#1214)
This is the first follow up on the Audit of Selected Departments Performing Accounts Receivable Functions (Report #1204 issued February 15, 2012). Forty-one of 53 action plan steps were due as of March 31, 2012. As of March 31, 2012, 26 (63%) of the steps due have been completed; actions are on-going to complete 14 steps; and one has not been started.
Audit Follow-Up of the City's Vendor Incentive Programs (#1215)
This is the first follow up on the Audit of the City's Vendor Incentive Programs (Report #1110 issued May 6, 2011). Sixteen of 18 action plan steps were due March 31, 2012. As of March 31, 2012, eight (50%) of the steps due have been completed, and actions are on-going to complete the other eight steps.
Final Audit Follow-Up on Tallahassee Police Department Property and Evidence Function (#1216)
Twelve of the fifteen action plan steps established to address issues identified in audit report #1116 have been successfully completed or resolved as of March 31, 2012. Management subsequently decided implementation of one of the three remaining action plan steps will not be cost beneficial to the City. The other two action plan steps (one of which is not due to be completed until FY 2013) were turned over to management for final resolution and completion.
Audit of Impact of Local Business Certification Pilot Program (#1217)
This audit was conducted in accordance with the Local Business Certification (LBC) Pilot Program requirement for the City Auditor "to analyze any effects on competition that have arisen due to the implementation of the LBC Pilot Program during the pilot period." There were four objectives for this audit. Our analysis revealed that during the LBC Pilot Program period, the City awarded more contracts as well as increased the overall procurement opportunities for local businesses within the four county region. Also, our analysis of City purchases showed that during the LBC Pilot Program the City increased its local business purchases.
Audit of Selected Departments' Leave and Attendance Processes and Transactions (#1218)
The recorded leave and attendance transactions tested were materially accurate; however, there were several instances of noncompliance, most of which had no monetary impact.
Assistance and Guidance Report on Administration and Processing of Leave and Attendance (#1219)
This guidance report is intended to assist management demonstrate accountability and compliance over recording and processing of leave and attendance transactions.
Audit of Red Light Camera Program (#1220)
The purpose of this audit was to evaluate the red light camera program. We have concluded that the City’s red light camera program has succeeded in reducing the number of red light violations at intersections where cameras have been installed. However, we did not conclude on the programs impact on accidents at those intersections. We also noted that program revenues have covered program expenses but have not met budgeted expectations, and there have been no instances of noncompliance with the contract for the system or applicable State laws.