Summit County Executive Office Department of Sanitary Sewer Services 1 st Audit Follow-up General Report

Transcription

1 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Prepared Fr: Russell M. Pry Audit Cmmittee Apprved by Audit Cmmittee June 30, 2016 Summit Cunty Internal Audit Department 175 Suth Main Street Akrn, Ohi Lisa L. Skapura, Directr Meredith Merry, Assistant Directr Jn Keenan, Auditr-in-Charge Brittney Quinn, Staff Auditr Taylr Laduceur, Staff Auditr

2 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Auditrs: Lisa Skapura, Directr; Meredith Merry, Assistant Directr; Jn Keenan, Auditr-in-Charge; Brittney Quinn and Taylr Laduceur, Staff Auditrs. Objectives and Methdlgy: T determine if management has implemented their management actin plans as stated in the previusly issued audit reprts. Fllw-up audits are nt required t be cnducted under GAO Yellw Bk Standards. Due t the nature f this engagement (e.g., fllwing up n issues nted in the prir audit reprts with limited planning/assessment f risk and n new issues identified), this audit fllw-up was nt cnducted in accrdance with generally accepted gvernment auditing standards. Scpe: An verview and evaluatin f plicies, prcesses, and prcedures implemented by the department/agency because f management actins stated in the management actin plans during the prir audit prcess. Testing Prcedures: The fllwing were the majr audit steps perfrmed: 1. Review the prir audit final reprts t gain an understanding f IAD issues, recmmendatins, and subsequent management actin plans cmpleted by the audited department/agency. 2. Review the wrk papers frm the prir audit. 3. Review any departmental/agency respnse dcumentatin prvided t IAD with management actin plan respnses fllwing the prir audit. 4. Identify management actins thrugh discussins/interviews with apprpriate departmental persnnel t gain an understanding f the updates/actins taken. 5. Review applicable supprt t evaluate management actins. 6. Determine implementatin status f management actin plans. 7. Cmplete the audit fllw-up reprt nting the status f previusly nted management actins. Summary: Of the nineteen (19) issues and the crrespnding management actin plans nted in the prir audit reprt which required fllw-up actin, the Department f Sanitary Sewer Services (DOSSS) fully implemented eight (8), partially implemented six (6), and did nt implement three (3) management actin plans. Tw (2) issues/management actin plans were n lnger applicable. It is nted that the six (6) management actin plans deemed partially implemented were due t errrs with emplyee sign-ffs. The remainder f the management actin plan was fully implemented. Based n the abve-nted infrmatin, IAD believes the DOSSS has made a psitive effrt twards implementing the management actin plans as stated in respnse t the issues identified in the preliminary audit and n further fllw up is needed. *It is nted that the Department f Envirnmental Services (DOES) was renamed Department f Sanitary Sewer Services (DOSSS) between the audit and fllw-up. Page 2 f 7

3 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Listed belw is a summary f the issues nted in the audit fllw-up reprt and their status. Each issue number is in reference t the previusly-issued audit reprt: MANAGEMENT ACTION PLANS FULLY IMPLEMENTED: Issue 4 - Upn review f the Billing Department plicies and prcedures and discussin with the Utility Billing Clerk, IAD nted n supervisry review f the mnthly penalty free accunt reprt. Upn review f the Billing Department plicies and prcedures and detail testing f the mnthly penalty free accunt reprt, IAD nted n issues. Issue 6 - Upn detail testing f the petty cash reimbursement frms, IAD nted ne (1) f three (3) instances where the Senir Administratr did nt sign the petty cash reimbursement frm fr a reimbursement exceeding $10.00, per the current petty cash prcess. Upn detail testing f the petty cash reimbursement frms, IAD nted n issues. Issue 7 - Upn discussin with the Envirnmental Engineer Supervisr, IAD nted DOES is nt billing the extra strength surcharge t an industrial user releasing extra strength wastewater t the Fishcreek Plant, in accrdance with Cdified Ordinance , due t minimal sampling f the user s wastewater by DOES. Upn review f the Billing Industrial Users Plicy and detail testing f industrial users releasing extra strength wastewater t the Fishcreek Plant, IAD nted n issues. Issue 8 - Upn review f fees charged in the Central Cash system and invices paid by DOES fr water meter readings, IAD nted the amunt billed t DOES (by the City f Cleveland) per meter reading/accunt is nt cnsistent with the amunt billed back t DOES custmers (difference f $0.86 per meter reading). It is nted that DOES utilizes these water meter readings t generate sewer bills. Upn review and detail testing f fees charged in the Central Cash system and invices paid by DOSSS fr water meter readings, IAD nted n issues. Issue 10 - Upn review and detail testing f sewer maintenance fees, IAD nted tw (2) f tw (2) instances where a prperty with mre than ne hundred (100) feet f (abutting) frntage was charged incrrectly, in accrdance with Cdified Ordinance (difference ttaling $219.91). Upn discussin with the Directr, IAD nted these exceptins are due t utdated data frm a Legacy data cnversin. Upn detail testing f sewer maintenance fees fr prperties with mre than ne hundred (100) feet f (abutting) frntage, IAD nted n issues. Issue 11 - Upn review f the Fixed Asset Management and Cntrl Plicy and discussin with the DOES Directr, IAD nted that a tracking mechanism is nt in place fr nn-it assets, valued under $15,000. Upn review f the Asset Inventry and Tracking Plicy and Prcedure, IAD nted n issues. Issue 14 - Upn detail testing f cntracts, IAD nted the fllwing instances where an Unreslved Findings fr Recvery Certified Search Frm was nt utilized befre awarding the cntract t the vendr, in accrdance with DOES plicies and prcedures: Tw (2) ut f three (3) cnstructin cntracts One (1) ut f tw (2) prfessinal service cntracts Page 3 f 7

4 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Upn detail testing f cntracts fr Unreslved Findings fr Recvery Certified Search Frms, IAD nted n issues. Issue 16 - Upn review f prfessinal licensure, IAD nted nine (9) ut f sixty-six (66) emplyees wh d nt have the apprpriate certificatin/license, as required by their respective jb descriptin. Upn detail testing f prfessinal licensure, IAD nted n issues. MANAGEMENT ACTION PLANS PARTIALLY IMPLEMENTED: Issue 1 - Upn review f DOES P&P fr cmpleteness and accuracy, IAD nted the fllwing: DOES Plicy and Prcedure Manual IAD nted insufficient evidence f review and apprval within the last tw (2) years fr the fllwing plicies: Electrnic Data Remval Internet Use Mnitring and Filtering Jb Psting Emplyee Departure/Exit Plicy Hazard Cmmunicatin Pwered Industrial Equipment/Frk Truck Emplyee Hiring Prcedure QA Lab Operatins Manual Manual has nt been updated and there are n signs f review within the last tw (2) years. Outdated Organizatin Chart included in the manual. Staff sign-ffs d nt exist fr the manual. Upn detail testing, IAD nted management revised and apprved the utdated plicies frm the Plicy and Prcedure Manual. Additinally, IAD nted management revised and apprved the QA Lab Operatins Manual and remved the utdated rganizatin chart. Hwever, IAD nted tw (2) ut f thirteen (13) instances where an emplyee plicy acknwledgement frm was nt btained. Issue 2 - Upn review f DOES plicies and prcedures, n written r insufficient plicies and prcedures were nted fr the fllwing areas: Payrll (internal prcedures) Cash Overage/Shrtage Cntract Administratin Asset and Inventry Tracking Upn review, IAD nted the fur (4) plicies were created; hwever, IAD nted tw (2) ut f thirteen (13) instances where an emplyee plicy acknwledgement frm was nt btained. Issue 3 - Upn review f the Recrds Retentin Schedule (RC-2) fr DOES, IAD nted the fllwing recrds were nt included: Page 4 f 7

5 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Paper leave frms Time Clck Adjustment frms Upn discussin, IAD nted paper leave frms and time clck adjustment frms are maintained by the Summit Cunty Human Resurces Department and they are respnsible fr the recrd retentin f thse dcuments. Additinally, IAD nted that DOSSS created a new RC-2 plicy; hwever, IAD nted tw (2) ut f thirteen (13) instances where an emplyee RC-2 acknwledgement frm was nt btained. Issue 5 - Upn cmparisn f the petty cash plicies and the current petty cash reimbursement prcess, per DOES emplyees, IAD nted a discrepancy in the prcess fr petty cash reimbursements exceeding $10.00 (e.g., reimbursements ver $10 require Senir Administratr apprval vs. reimbursement frm petty cash will nt exceed $10). Upn discussin with the Directr, IAD nted the current petty cash reimbursement plicy has nt been disseminated t emplyees. Upn detail testing f the petty cash reimbursement prcess, IAD nted n issues; hwever, IAD nted tw (2) ut f thirteen (13) instances where an emplyee plicy acknwledgement frm was nt btained. Issue 9 - Upn review and detail testing f bulk service agreements and billings, IAD nted tw (2) f three (3) instances where billing was incrrect due t insufficient and/r incnsistent supprting dcumentatin (e.g., maintenance fees, perating csts). Upn detail testing f bulk service agreements, IAD nted n issues regarding sewage dispsal fees; hwever, IAD nted ne (1) instance where the maintenance fee was incrrect and tw (2) instances where the perating (phne) csts were incrrect. Additinally, IAD nted that the review f the bulk service agreements is nt dcumented. Issue 18 - During detail testing f payrll deductins fr emplyees with a designated vehicle, IAD nted thirty-five (35) ut f ne hundred nineteen (119) instances where the prper deductin was nt made in Krns, ttaling ne hundred sixty-nine dllars ($169). Upn discussin, IAD nted the Cmmuting Valuatin Rule Plicy was re-issued t emplyees, and a peridic review f CVR frms is ccurring; hwever, n dcumentatin f the review is maintained. Additinally, upn detail testing, IAD nted twenty-seven (27) ut f fifty-fur (54) instances where the emplyee did nt receive the apprpriate payrll deductin in Krns, resulting in a ttal f ne hundred and sixty-eight ($168) dllars nt prperly deducted. MANAGEMENT ACTION PLANS NOT IMPLEMENTED: Issue 12 - Upn discussin with the DOES Directr, IAD nted that DOES dispses assets (e.g. scrap metal t the scrap yard) withut btaining an Executive Order. Per Cunty Cdified , a department f the Cunty may, with the apprval f the Executive, dispse f prperty nt needed fr public use withut cnducting a public auctin r sealed bids prvided the department shws gd cause as t why a public auctin r sealed bid is nt warranted t dispse f surplus equipment. Upn discussin, IAD nted DOSSS is nt btaining Executive Orders fr dispsal f scrap metal remved at the jb sites (e.g., sewer pipes, etc.). Issue 17 - During detail testing, IAD nted seven (7) ut f thirteen (13) instances where an emplyee s perfrmance evaluatin had nt been cmpleted within the past twelve (12) mnths. It is nted that fur (4) f the seven (7) exceptins were unclassified emplyees. Per Cdified Ordinance , perfrmance evaluatins shuld be administered n an annual basis fr all emplyees. Page 5 f 7

6 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Upn detail testing f perfrmance evaluatins, IAD nted fur (4) ut f thirteen (13) instances where a 2015 perfrmance evaluatin was nt perfrmed. Issue 19 - Upn detail testing f EPA mnitring reprts and discussin with the Administrative Assistant, IAD nted the prcess fr reprting parameters (e.g., water temperature, ph levels, flw rate, etc.) t the EPA invlves manually entering data int the Electrnic Discharge Mnitring Reprt (EDMR) spreadsheet, creating the ptential fr data entry errrs. Additinally, IAD recnciled the EDMR spreadsheet t supprting dcumentatin and nted the fllwing issues: Tw (2) ut f fur hundred and sixty-five (465) instances where the daily parameters were entered n the EPA reprt fr the incrrect day, resulting in all ther days reprting t be ff ne (1) day. One (1) ut f fur hundred and sixty-five (465) instances where a daily parameter culd nt be verified per the supprting dcumentatin. One (1) ut f fur hundred and sixty-five (465) instances where the ph level parameter was calculated incrrectly. Upn detail testing f EPA mnitring reprts, IAD nted six (6) instances where the Ohi EPA Daily Discharge Mnitring Reprt did nt agree t the Daily Reads Sheet. MANAGEMENT ACTION PLANS NOT APPLICABLE: Issue 13 - Per discussin with DOES persnnel, the IT asset inventry listing is nt up-t-date. Additinally, during detail testing f asset inventry, IAD nted the fllwing: IT Assets Ten (10) f frty-five (45) instances where the asset was incrrectly recrded, when agreeing assets listed n the cmputer hardware reprt t the physical asset. One (1) f ten (10) instances where an asset was nt listed n the IT Asset Equipment Listing, but lcated at DOES. Upn further inquiry, IAD nted this is due t the inventry listing nt being updated. Dispsed Assets Twelve (12) f twelve (12) instances where a receipt was nt btained upn dispsal f the asset. It is nted that all exceptins were a result f ne dispsal t a recycling center. Fur (4) f sixteen (16) assets marked as dispsed n the IT asset inventry reprt, but per the Infrmatin Systems Develpment Manager, have nt been dispsed f and culd nt be lcated at DOES. Upn discussin with persnnel, IAD nted IT services have been cnslidated with the Summit Cunty Office f Infrmatin Technlgy Department; therefre, detail testing was nt perfrmed. Issue 15 - Upn detail testing f cnstructin cntracts, IAD nted tw (2) ut f three (3) instances where the bid advertisement was nt published fr tw (2) weeks prir t the bid pening date. Per ORC , ntice shall be published nce a week fr nt less than tw (2) cnsecutive weeks preceding the day f the pening f bids in a newspaper f general circulatin within the cunty fr any purchase, lease, lease with ptin r agreement t purchase r cnstructin cntract in excess f fifty thusand dllars ($50,000). Page 6 f 7

7 Summit Cunty Executive Office Department f Sanitary Sewer Services 1 st Audit Fllw-up General Reprt Upn discussin, IAD nted the Department f Finance and Budget is advertising bids n behalf f DOSSS; therefre, detail testing was nt perfrmed. Page 7 f 7