CITY OF FRESNO
Credit Card and Reimbursement Transactions Assessment
For the Period of March 2, 2017 through March 31, 2022
November 17, 2023
1 Executive Summary
Macias Gini & O’Connell LLP (MGO) was engaged by the City of Fresno (City) to assess compliance by all City employees and elected and appointed officials with City’s Administrative Orders (AOs) for City credit card transactions and employee/official reimbursement payments for the period of March 2, 2017 through March 31, 2022; and compare questioned costs to MGO’s contract amount. In conducting the assessment, w e reviewed the supporting documentation for 17, 859 credit card transactions totaling $3,961,812 and 5,395 reimbursement payment transactions totaling $1,811,174.
MGO identified the following observations:
Credit card transactions:
• Supporting documentation, such as receipts and invoices, for 92 transactions ($15,338) was not maintained as required by AO 1-9.
• Supporting documentation for 367 transactions ($76,352) was not sufficient to determine the goods or services purchased, and/or the official business for which the goods/services were purchased as required by AO 1-9.
• Approximately 1,000 transactions ($93,000) represented food purchases a t restaurants or delivery/take-out food orders for meetings held by certain departments; however, the business purpose of the meeting was not always documented.
Rei
mbursement payments:
• The majority (98%) of travel-related expense transactions were itemized on Form 57 “Travel Request and Claim for Reimbursement” as required by AO 1-4. • Supporting documentation, such as receipts and invoices, for 44 transactions ($6,737) was not maintained as required by AO 1-4.
• All telework reimbursement requests were submitted on a Form 57. However, 94% of reimbursement requests for non-travel related expenses, representing $725,780, were not itemized on Form 57 as required by AO 1-4.
Do
cumentation exceptions to contract value as requested by the Request for Proposal:
• Based on the results, 4,232 (18%) of the transactions reviewed did not appear to have adequate support in a ccordance with the City’s AOs. These exceptions represented $ 950,629, which exceeds MGO’s contract of $69,788.
MGO identified the following recommendations:
Credit card transactions
• Consider requiring City credit card holders to complete and submit a form similar to the Form 57 or a transaction log detailing the expenditures with their bank statements , receipts, and invoices.
• Strengthen review and reconciliation procedures to verify receipts, invoices, or a missing receipt form are submitted for all City credit card transactions. • Consider revising AO 1-9 to address meals within the City of Fresno and align with AO 1-4.
Rei
mbursement payments:
• Only pay reimbursement requests that are adequately detailed on a Form 57 and signed by the Department Director or other authorized person(s) or modify the AO to allow for other reimbursement forms.
• Strengthen review and reconciliation procedures to verify receipts, invoices, or missing receipt forms are submitted for all applicable expenses that exceed $25 in a reimbursement request.
See t
he Detailed Results section for more information on the observations and recommendations.
2 Objectives
The objectives of the engagement were to assess:
1. Credit card transactions for all City employees and elected and appointed officials who have been issued a City credit card for compliance with the City’s Administrative Order (AO) 1-4 (Expenses on City Business) and AO 1-9 (Credit Card Use Policy).
2. Reimbursement requests and payments (non-credit card expenditures) for all City employees who have requested reimbursement for expenses more than $100 through the normal reimbursement policies of the City’s Administrative Order manual, including AO 1-4.
3. Reimbursement requests and payments (non-credit card expenditures) for all elected and appointed officials (including elected and appointed officials) who have requested reimbursement for expenses through the normal reimbursement policies of the City’s Administrative Order manual, including AO 1-4.
Scope and Methodology
The scope of the engagement was to assess credit card transactions and reimbursement payments that occurred in March 2, 2017 through March 31, 2022.
The methodology included the following procedures:
• Obtained and reviewed the City’s AO 1-4 (Expenses on City B usiness) and AO 1-9 (Credit Card Use Policy).
• Identified criteria from AOs for testing.
• Obtained the population of credit card transactions for the scope of the assessment from the City’s Finance Department.
• Obtained credit card files, includ ing bank statements and supporting documentations (such as receipts and invoices) from the City.
• Tested the supporting documentation for compliance with AOs for all credit card transactions in the scope period.
• Obtained the population of reimbursements to City employees and elected and appointed officials for the scope of the assessment from the City’s Finance Department. • Obtained the City’s accounts payable files for fiscal years 2017 through 2022. • Tested the supporting documentation for compliance with the City’s AOs for all reimbursements in the scope period.
Disclaimer: This consulting engagement was conducted in accordance with the Statements on Standards for Consulting Services issued by the American Institute of Certified Public Accountants (AICP A). The results reported do not constitute an examination made in accordance with attestation standards, the objective of which would be to express an opinion or conclusion; respectively, we do not express such an opinion. Furthermore, we do not express an opinion or representation related to the accuracy or completeness of the information provided by management. The sufficiency of these procedures is solely the responsibility of the City. We make no representation regarding the sufficiency of the procedures performed to disclose all significant matters or reveal erro rs in the underlying information, instances of fraud, or illegal acts, if any. We have no obligation to update our report or to revise the information contained herein to reflect events and transactions occurring subsequent to the date of this report. This report is intended solely for the information of the City’ s management and is not intended to be, and should not be, used by anyone other than this specified party.
3 Detailed Results
Section 1 – Credit Card Transactions
MGO reviewed the credit card transactions for March 2, 2017 through March 31, 2022, and identified the following observations.
Credit Card Transactions
Items # Items $ Amount
Transactions 17,859 $ 3,961,812
Monthly Statements 2,986
Employees 134
Credit Card Transactions by City Division
Division # Transactions $ Amount
Airports Division 298 $ 67,403
City Attorney's Office Division 1,757 270,901
City Clerk's Office Division 200 47,626
City Manager Division 301 41,615
Council District 1 Division 865 124,235
Council District 2 Division 811 76,257
Council District 3 Division 740 121,247
Council District 4 Division 533 78,380
Council District 5 Division 620 101,063
Council District 6 Division 25 4,682
Council District 7 Division 709 106,653
Development Admin. Division 63 11,970
Economic Development Division 236 40,728
Facilities Management 94 18,933
Finance Division 90 23,524
Fire Admin. Division 379 95,450
Fire Prevention & Investigation Division 203 54,484
Fire Support Services Division 145 33,252
Fire Suppress & Emergency Response 151 29,214
Fire Training Division 764 181,171
HR Admin. Division 190 49,295
Information Services Admin. Division 682 120,258
Investigative Services Division 479 76,723
Office Of The Mayor Division 314 42,204
Other Grants Division 8 3,618
Parking Division 583 139,962
Parks & Recreation Admin. Division 177 46,512
Patrol Division 427 70,875
Planning Division 322 70,477
4 Credit Card Transactions by City Division
Division # Transactions $ Amount
Police Dept. - Administrative Support Division 1,459 391,782 Police Dept. - Office of the Chief Division 79 18,475
Police Dept. - Support Division 813 153,769
Police Dept. Training 1,737 702,874
Public Utilities Admin. Division 228 87,440
Public Works Division 168 57,209
Recreation Division 528 92,693
Solid Waste Management Division 43 6,614
Training & Support Services 21 3,607
Transportation Admin. Division 347 180,070
Transportation Operation Division 50 29,371
Wastewater Management Division 96 42,851
Water Division 124 46,345
Total 17,859 $ 3,961,812
Observation 1 – Supporting documentation was not always provided The City did not maintain supporting documentation, such as receipts and invoices, for 92 credit card transactions, as required by AO 1-9, Credit Card Use Policy, policy 3, All authorized users of City credit cards shall submit documentation detailing the goods or services purchased, the cost of the goods or services, the date of the purchase, and the official business for which it was purchased.
AO 1-9, section 3.a.v. also states,
Card Holder Responsibilities: Obtain all sales slips, register receipts, and/or credit card slips and provide same to the Finance Department for reconciliation and approval of transactions.
Due to missing receipts and invoices, MGO was unable to determine if the expenditures in the following table were allowable per AO 1-9.
Credit Card Transactions by Division
Transactions without Supporting Documentation
Division # Transactions $ Amount
City Attorney's Office Division 3 $ 399
City Clerk 2 791
Council District 1 Division 15 1,995
Council District 2 Division 8 1,163
Council District 3 Division 21 2,612
Council District 4 Division 5 568
Council District 5 Division 6 1,883
Council District 7 Division 18 1,989
Development Admin. Division 6 1,131
Fire Prevention & Investigation Division 1 325
5 Credit Card Transactions by Division
Transactions without Supporting Documentation
Division # Transactions $ Amount
Fire Suppress & Emergency Response 1 545
Solid Waste Management Division 3 1,606
Water Division 3 331
Total 92 $ 15,338
Observation 2 – Supporting documentation was not always sufficient Not all credit card transactions had sufficient supporting documentation that detailed the goods or services purchased, and/or the official business purpose for which the goods/services were purchased as required by AO 1-9. For example:
• Meals charged within the City of Fresno did not detail who attended the meal and the purpose of the meal (i.e., meeting), as required by AO 1-4.
• The purchase of gift cards.
• Charges to Venmo and Square.
• Amazon purchases.
• Charges for travel did not detail the purpose of the travel or how the travel related to the City business.
AO 1-9 does not require credit card users to complete and submit a transaction log or form with their receipts and bank statements. Requiring a transaction log or form be completed and submitted would improve the accountability of the card holder and support completeness of documentation. Due to the lack of sufficient supporting documentation, MGO was unable to determine if the expenditures in the following table were allowable per AO 1-9.
Credit Card Transactions by Division
Transactions without Sufficient Supporting Documentation Division # Transactions $ Amount
Airports Division 3 $ 1,016
City Attorney's Office Division 32 3,328
City Clerk's Office Division 8 338
City Manager Division 13 1,890
Council District 1 Division 7 1,913
Council District 2 Division 4 539
Council District 3 Division 20 1,036
Council District 4 Division 44 2,994
Council District 5 Division 1 150
Council District 6 Division 1 (30)
Council District 7 Division 6 420
Development Admin. Division 1 34
Economic Development Division 18 2,013
Finance Division 16 3,589
6 Credit Card Transactions by Division
Transactions without Sufficient Supporting Documentation Division # Transactions $ Amount
Fire Admin. Division 2 193
Fire Prevention & Investigation Division 2 790
Fire Support Services Division 29 3,549
Fire Suppress & Emergency Response 2 104
Fire Training Division 19 6,368
HR Admin. Division 17 2,176
Information Services Admin. Division 3 5,201
Investigative Services Division 7 269
Office Of The Mayor Division 15 682
Parking Division 11 4,187
Patrol Division 1 259
Police Dept. - Administrative Support Division 9 8,839
Police Dept. - Office of the Chief Division 1 2,058
Police Dept. - Support Division 18 489
Police Dept. Training 25 18,999
Public Utilities Admin. Division 10 (505)
Public Works Division 6 2,057
Solid Waste Management Division 2 80
Transportation Admin. Division 14 1,327
Total 367 $ 76,352
Observation 3 – Regular department meetings at restaurants or with food ordered Certain departments regularly held meetings with food purchases at restaurants or delivery/take-out food orders for which City credit cards were used ; however, the business purpose of the meeting was not consistently documented. AO 1-9 does not specifically address meals purchased within the City of Fresno.
However, AO 1-4, Expenses on City Business, states in section 6.F.iii subsistence, No reimbursement shall be paid for meals served during in-town meetings scheduled by City staff unless it is necessary to schedule such meetings between 6:00am and 8:00am, 12:00pm and 1:00pm, or 5:00pm and 7:00pm. Reimbursement for meal expenses incurred in connection with City business (other than expenses incurred for travel, conferences, or meals served during in -town meetings scheduled by City staff) shall only be made for meal expenses incurred in connection with City business for which the employee’ s or elected official’ s attendance is necessary, and which must be scheduled before 7:00am, between 12:00pm and 1:00pm, or which ends after 8:00pm.
The table on the following page depicts an estimate of the meals by division where the supporting documentation did not describe the business purpose of the meal or had a general description of staff meeting.
7 Credit Card Transactions
Estimated Meals by Division
Division # Transactions $ Amount
Airports Division 5 $ 534
City Attorney's Office Division 180 18,941
City Clerk's Office Division 9 5,492
City Manager Division 59 4,150
Council District 1 Division 73 6,504
Council District 2 Division 164 12,035
Council District 3 Division 98 9,337
Council District 4 Division 26 1,997
Council District 5 Division 79 4,862
Council District 7 Division 94 10,697
Development Admin. Division 45 1,911
Economic Development Division 13 845
Fire Admin. Division 3 121
Fire Prevention & Investigating Division 1 98
Fire Suppress & Emergency Response Division 2 121
Fire Training Division 8 1,160
HR Admin. Division 6 463
Information Services Admin. Division 2 231
Office Of The Mayor Division 145 7,457
Parking Division 9 716
Parks & Recreation Admin. Division 5 830
Patrol Division 4 261
Planning Division 7 504
Police Dept. - Administrative Support Division 2 85
Public Utilities Admin. Division 5 975
Public Works Division 3 160
Recreation Division 12 1,063
Solid Waste Management Division 3 377
Transportation Admin. Division 4 587
Water Division 1 131
Total 1,067 $ 92,645
Recommendations:
The City should:
• Consider requiring City credit card holders to complete and submit a form similar to the Form 57 or a transaction log detailing the expenditures with their bank statements, receipts, and invoices. • Strengthen review and reconciliation procedures to verify receipts, invoices, or a missing receipt form are submitted for all credit card transactions.
• Consider revising AO 1-9 to address meals within the City of Fresno and align with AO 1-4.
8 Section 2 – Reimbursement Payments
MGO reviewed the reimbursement payments for March 2, 2017 through March 31, 2022, and identified the following observations.
Reimbursement Payments
Items # Items $ Amount
Reimbursement Requests 5,395 $ 1,811,174
Employees 1,590
Reimbursement Payments by Division
Division # Transactions $ Amount
After School Recreation Division 199 $ 41,022
After School, Recreation & Community Services Division 16 5,718 Airports Division 260 151,700
Airports Projects Admin. 37 16,298
Budget Division 16 2,727
Building & Safety Services Division 71 20,103
Business License/UB&C Division 6 776
Capital Management Division 63 20,760
City Attorney's Office Division 181 64,273
City Clerk's Office Division 10 5,980
City Manager Division 7 4,226
Code Enforcement Division 20 6,198
Communications Services Division 37 8,712
Computer Services Division 33 17,441
Council District 1 Division 25 6,805
Council District 2 Division 31 12,898
Council District 3 Division 66 18,631
Council District 4 Division 26 6,974
Council District 5 Division 42 11,629
Council District 6 Division 7 1,726
Council District 7 Division 15 4,623
Development Admin. Division 30 9,458
Development Department 1 521
Economic Development Division 55 16,696
Engineering Services Division 55 15,372
Facilities Management Division 18 9,723
Federal Grants Division 6 1,575
Finance Division 89 35,891
Fire Admin. Division 6 1,166
Fire Prevention & Investigation Division 63 27,302
Fire Support Services Division 102 31,863
Fire Suppress & Emergency Response 880 223,383
9 Reimbursement Payments by Division
Division # Transactions $ Amount
Fire Training Division 92 25,380
Fleet Equip. Acquisition Division 27 4,684
Fleet Mgmt. Oper. Equip. Division 105 28,657
General City Purpose 10 5,634
Housing & Community Dev. Division 8 1,928
HR Admin. Division 10 2,210
HR Classify and Compensation 1 250
HUD 19 5,026
Human Resources Division 8 1,336
Information Services Admin. Division 11 4,765
Investigative Services Division 493 143,460
Labor Relations Division 6 918
Landscape Maintenance 8 2,261
Local Business Initiatives 21 11,569
Local Law Enforcement Block Grant 1 636
Neighborhood Services Division 2 447
Office of Independent Review 28 7,116
Office Of The Mayor Division 27 8,206
Other Grants Division 1 332
Parking Division 12 5,876
Parks & Recreation Admin. Division 27 17,649
Parks Division 25 8,780
Patrol Division 361 134,153
Planning Division 31 11,233
Police Dept. - Administrative Support Division 149 48,331 Police Dept. - Office of the Chief Division 45 43,031
Police Dept. - Support Division 208 70,758
Public Safety Fleet Maint. Division 32 13,272
Public Utilities Admin. Division 60 17,054
Public Works Admin. Division 36 14,987
Public Works Capital 1 144
Recreation Division 192 45,166
Risk Management Division 6 2,758
Sewer Maintenance Division 2 231
Solid Waste Management Division 18 5,940
Sustainable Fresno 23 7,765
Systems Applications Division 1 835
Systems Arch. & Appl. Division 6 5,841
Traffic Eng. & Parking Division 9 5,763
Traffic Sig. & Streetlights Division 1 2,576
10 Reimbursement Payments by Division
Division # Transactions $ Amount
Training & Support Services 22 6,413
Transportation Admin. Division 63 38,095
Transportation Capital Division 20 6,855
Transportation Handy Ride Division 3 594
Transportation Maint. Division 177 86,018
Transportation Operation Division 118 39,115
Transportation Planning Division 12 7,529
Utility Billing and Collection 6 2,919
Wastewater Management Division 238 47,718
Water Division 139 56,497
Workers Compensation Division 1 293
Total 5,395 $ 1,811,174
Observation 1 – Form 57 submitted for travel-related reimbursements The majority (98%) of travel-related expenses were itemized on a Form 57, “Travel Request and Claim for Reimbursement,” as required by AO 1-4, Expenses on City Business, section 6.A, No reimbursement shall be provided for travel or expenses until: i. Such travel or expenses have been authorized as set forth under the Policy above, and Finance Form 57 “Travel Request and Claim for Reimbursement” has been properly prepared, approved, and submitted to the Finance Division.
Travel Related Reimbursement Payments
Form 57
Submitted # Transactions $ Amount
Yes 2,555 $ 1,019,100
No 53 33,777
Total 2,608 $ 1,052,877
Travel Related Reimbursement Payments by Division
No Form 57
Division # Transactions $ Amount
Airports Division 22 $ 15,648
Airports Projects Admin. 2 1,775
Capital Management Division 1 961
City Attorney's Office Division 3 1,458
Council District 2 Division 1 654
Facilities Management Division 1 1,039
Fire Training Division 1 386
Fleet Mgmt. Oper. Equip. Division 1 103
HR Classify and Compensation Division 1 250
Office Of The Mayor Division 3 1,521
Patrol Division 3 607
Police Dept. - Administrative Support Division 1 210
11 Travel Related Reimbursement Payments by Division
No Form 57
Division # Transactions $ Amount
Police Dept. - Office of the Chief Division 3 1,903
Police Dept. - Support Division 1 305
Recreation Division 1 322
Solid Waste Management Division 1 1,641
Transportation Admin. Division 2 2,214
Transportation Operation Division 3 1,428
Transportation Planning Division 2 1,352
Total 53 $ 33,777
Observation 2 – Supporting documentation was not always provided for non-travel related expenses Supporting documentation, such as receipts and invoices, was not consistently submitted as required by AO 1-4, section 6.C,
A receipt must be obtained for all single expenditures that exceed $25 and be submitted along with other receipts to substantiate expense reports.”
There were 40 reimbursements for “reserve stipends” for a total of $ 6,000 that had no supporting documentation. MGO was unable to determine if an additional four expenditures totaling $737 were allowable per AO 1-4 due to no supporting documentation.
Reimbursement Payments without Supporting Documentation Division Expense Type # Transactions $ Amount
Budget Division Other 1 $ 102
Patrol Division Reserve Stipend 5 750
Other 1 185
Police Dept. - Support Division Reserve Stipend 2 300
Solid Waste Management Division Other 1 150
Transportation Admin. Division Other 1 300
Transportation Operation Division Reserve Stipend 26 3,900 Wastewater Management Division Reserve Stipend 7 1,050
Total 44 $ 6,737
12 Observation 3 – No Form 57 for non-travel related reimbursements All telework reimbursement requests were submitted on a Form 57. However, t he majority (94%) of reimbursement requests for non-travel related expenses were not itemized on Form 57 as required by AO 1-4, section 6.F.x,
Other expenses will be reimbursed, provided that it can be demonstrated that they were necessary for successful completion of the City’ s business, are itemized in detail on a Form 57, and approved by the Department Director.
Non-Travel Related Reimbursement Payments
Form 57
Submitted
Reimbursement
Requests $ Amount
Yes 178 $ 32,517
No 2,609 725,780
Total 2,787 $ 758,297
Some reimbursement requests used alternative forms, such as a mileage form (in City), petty cash voucher form, safety boot voucher, accounts payable form, DOT examination reimbursement form, or a memo from Council. The following table depicts the number of reimbursement requests that did not submit Form 57, but did submit an alternative form.
Non-Travel Related Reimbursement Payments
Alternative Form Used
Reimbursement
Requests $ Amount
Accounts payable form 26 $ 6,689
Check request or request for
reimbursement 55 15,208
DOT exam reimbursement 31 4,187
Memo from Council 134 40,949
Mileage (in City) 578 119,659
Petty cash voucher 99 35,370
Total 923 $ 222,062
The following table de tails the most common types of non -travel expenses that reimbursement was requested for by division.
Examples of Non-travel Related Expenses by Division
Division
Certification Mileage
(in City) Uniform Other (meals,
supplies, etc.)
#
Trans.
$
Amount
#
Trans. $ Amount
#
Trans. $ Amount
#
Trans. $ Amount
After School Recreation
$ 155 $ 25,582
$ 15 $ 4,460
After School, Recreation &
Community Services Division
16 5,718
Airports Division 2 500 2 308 41 11,681
Airports Projects Admin.
8 2,637
Budget Division
16 2,727
Building & Safety Services
Division 3 1,360
16 3,391
13 Examples of Non-travel Related Expenses by Division
Division
Certification Mileage
(in City) Uniform Other (meals,
supplies, etc.)
#
Trans.
$
Amount
#
Trans. $ Amount
#
Trans. $ Amount
#
Trans. $ Amount
Capital Management Division 1 240 54 14,799 1 125 2 2,602 City Attorney's Office Division
25 6,087 3 368 75 26,047
City Clerk's Office Division
1 1,695
Code Enforcement Division
2 238 8 1,959
Communications Services
Division
33 5,994
Computer Services Division 4 1,178 1 208
1 169
Council District 1 Division
21 5,497
Council District 2 Division
28 10,384
Council District 3 Division
13 2,409
38 10,357
Council District 4 Division
8 1,309
9 2,385
Council District 5 Division
14 2,245
Council District 6 Division
6 1,233
Council District 7 Division
6 730
Development Admin. Division
8 4,066
Development Department
1 521
Economic Development
Division
8 2,143
Engineering Services Division
24 4,205
7 3,373
Facilities Management
4 2,423
Federal Grants
1 140
Finance Division
17 6,451
Fire Admin. Division
2 400 1 144
Fire Prevention & Investigation
Division
2 235 30 16,960 2 505
Fire Support Services Division 15 2,078 3 373 26 5,006 6 2,730 Fire Suppress & Emergency
Response
6 1,151 626 122,605 25 10,944
Fire Training Division
47 9,164 4 1,506
Fleet Equip. Acquisition
Division 11 1,639
5 802
Fleet Mgmt. Oper. Equip.
Division 52 7,413
6 803 23 10,632
General City Purpose
10 5,634
Housing & Community Dev.
Division
5 1,119
HR Admin. Division 1 122
4 524
HUD 1 395
1 556
Human Resources Division 1 181 1 109
3 626
14 Examples of Non-travel Related Expenses by Division
Division
Certification Mileage
(in City) Uniform Other (meals,
supplies, etc.)
#
Trans.
$
Amount
#
Trans. $ Amount
#
Trans. $ Amount
#
Trans. $ Amount
Information Services Admin.
Division
2 563
2 959
Investigative Services Division
7 1,432
31 13,623
Labor Relations Division
1 108 1 110
Landscape Maintenance
1 244
Local Business Initiatives
3 602
Office of Independent Review
26 5,127
Office Of The Mayor Division
13 3,439
Other Grants
1 332
Parking Division
7 2,285
Parks & Rec Admin. Division
4 510
7 12,029
Parks Division
1 302
3 696
Patrol Division
2 429 4 656 61 54,539
Planning Division
11 4,954
Police Dept. - Administrative
Support Division
1 108 15 11,965
Police Dept. - Office of the
Chief Division
15 3,961
12 33,318
Police Dept. - Support Division
31 13,674
Public Safety Fleet Maint.
Division 8 1,128
5 1,623
Public Utilities Admin.
Division 1 115 17 3,874
5 4,776
Public Works Admin. Division 2 1,099 2 215
11 4,649
Recreation Division
163 34,606
10 3,445
Risk Management Division
1 102
Sewer Maintenance Division
2 231
Solid Waste Management
Division
1 151 5 893
Sustainable Fresno
1 148
6 1,972
Systems Arch. & Appl.
Division
1 384
Traffic Eng. & Parking Division
2 651
2 1,833
Training & Support Services
11 2,110 2 455
Transportation Admin. Division
1 177
13 13,920
Transportation Capital Division
15 3,196
Transportation Handy Ride
Division 1 165
Transportation Maint. Division 63 11,215
10 2,728
15 Examples of Non-travel Related Expenses by Division
Division
Certification Mileage
(in City) Uniform Other (meals,
supplies, etc.)
#
Trans.
$
Amount
#
Trans. $ Amount
#
Trans. $ Amount
#
Trans. $ Amount
Transportation Operation
Division 3 409 1 136 1 200 44 10,983
Transportation Planning
Division 1 725
5 3,702
Utility Billing and Collection
1 2,285
Wastewater Management
Division 136 26,269
10 1,350 39 6,357
Water Division 64 12,055 2 795 4 642 20 6,669
Total 370 $ 68,286 578 $119,660 778 $161,302 845 $369,455
Recommendations
The City should:
• Only pay reimbursement requests that are adequately detailed on a Form 57 and signed by the Department Director or other authorized person(s) or modify the AO to allow for other reimbursement forms.
• Strengthen review and reconciliation procedures to verify receipts, invoices, or missing receipt forms are submitted for all applicable expenses that exceed $25 in a reimbursement request.
Section 3 – Comparative Analysis
Based on the results from sections 1 and 2 above, 4,232 (18%) of the transactions reviewed did not appear to have adequate support in accordance with the City’s AOs. These exceptions represented $950,629, which exceeds MGO’s contract of $69,788. The table below provides a summarized comparison by type of exception.
Section/Observation # Transactions $ Amount
MGO Contract
Amount
Charges not consistent with City policy
1 – 1 – No support 92 $ 15,338
1 – 2 – Insufficient support 367 76,352
1 – 3 – No purpose of meal 1,067 92,645
2 – 1 – No Form 57 for travel 53 33,777
2 – 2 – No support 44 6,737
2 – 3 – No Form 57 for non-travel 2,609 725,780
Total 4,232 $ 950,629 $ 69,788
Charges consistent with City policy
Credit card transactions 16,333 $ 3,777,477
Reimbursement payments 2,689 1,044,880
Total 19,022 $ 4,822,357 $ 69,788