Internal Audit News
Announcements from the Office of Internal Audit.
10-28-15 - 15-110 - Performance Audit - Citywide – Staffing Agency Vendor Contract Compliance - Adecco
Between FY 2010 and FY 2015, the City paid Adecco approximately $23.3 million to provide temporary staffing agency employees to help supplement the City’s workforce. As part of the contract, Adecco is required to comply with the terms that are detailed in the contract and RFB. However, based on the testing and review results of this audit there are several areas where Adecco is not following the contract and RFB terms. Adecco is not ensuring that the information on the invoices and periodic reports is always accurate. This has led to incorrect costs on invoices, and estimated over billings of $38,540. In addition, by not ensuring information on invoices and reports is accurate, Adecco hinders the City’s ability to perform proper reviews of the information. Adecco is not ensuring that approved request forms are received each time the City needs to obtain a staffing agency employee. This is a requirement that staffing agency vendors must follow when supplying staffing agency employees. Without verifying that appropriate City personnel have approved the acquisition of these employees it could cause unapproved costs to be incurred, and may ultimately require Adecco to refund the City for the unapproved costs. Finally, Adecco is not pulling staffing agency employees from positions after they have been at the City for more than two consecutive years. Adecco is also not making sure that employees who have worked at the City in any capacity for more than two consecutive years take at least a 90-day break before placing them at the City again. This could cause a potential liability for the City if staffing agency employees, who have been used at the City for a continuous two-year period, feel that they are due permanent City employee benefits. It is imperative that Adecco ensure all contract and RFB terms are being complied with, and that all information sent to the City is accurate and complete.
10-28-15 - 14-104 - Performance Audit - Common Cash Bank Reconciliations - Department of Finance and Administrative Services
DFAS should dedicate the additional resources needed to accomplish accurate and timely reconciliations. Accurate and timely bank account reconciliations are essential internal controls to ensure that cash records are complete and accurate, and that data entry errors, bank errors, and potential fraud are detected and resolved in a timely manner.DFAS must first develop a complete understanding of the processes and activities that affect Common Cash. Once the department fully understands how various transactions affect Common Cash, it can implement business process improvements to resolve the complex account structure. Process improvements should also ensure general ledger data is sufficient to facilitate the matching of book transactions to bank statement activity. Gaining a full understanding of all cash transactions, revising business processes, completing the revised monthly book-to-bank Common Cash reconciliation, and resolving reconciling differences will enable DFAS to improve internal control over Common Cash, address the deficiencies noted by the external auditors, and eliminate CAFR audit finding 08-16.
06-24-15 - 15-106 - Special Audit - Purchase and Tracking of Ammunition - Albuquerque Police Department
Formal policies and procedures pertaining to APD’s ammunition inventory are needed. Although APD has an extensive supply of ammunition, it has not established and implemented department-wide policies and procedures for purchasing, tracking, and managing ammunition inventory. Tracking the acquisition, storage, and distribution of inventory is critical to controlling cost, operational efficiency, and mission readiness. APD should reduce the number of locations with ammunition inventory to limit risk and increase accuracy of inventory tracking.
06-24-15 - 15-107 - Performance Audit - Citywide – Use and Management of Staffing Agency Employees
The City has increased its use of staffing agency employees by 72.5 percent over the past five years, however, there is not one City department that has overall responsibility of monitoring and managing the use of this service. Each department is responsible for managing its own use, which has contributed to inconsistencies and violations of the contracts, request for bid (RFB) terms, and policies and procedures (P&P). The City has designed and implemented internal controls over obtaining, using, and managing staffing agency employees. However, these internal controls, which are detailed in the vendor contracts, RFB documentation, and P&P, are not consistently distributed and communicated to the department personnel in charge of obtaining, using, and managing staffing agency employees. This has caused many departments to be unaware of rules, regulations, and P&P regarding staffing agency employees, and consequently, has been the root cause of the exceptions. The current contracts the City has for staffing agency employee services are overdue to be rebid. The City can ensure that it is paying the most competitive prices, and offering departments the best staffing agency employee services by rebidding these contracts.
05-05-15 – 14-107 – Special Audit – TASER International Body-Worn Camera Procurements – Albuquerque Police Department
The City has an opportunity to strengthen its controls over procurements and educate both City employees and vendors on the City’s purchasing and conflict of interest regulations. Educating employees and vendors should increase awareness and compliance with City regulations.