UPDATE ON INTERNAL
CONTROL REVIEW
Accounts Payable and Collections
(Utilities, Billing, and Collections and
Business Tax and License)
2 OVERVIEW
➢ Update on Accounts Payable & Disbursements
➢ Update on Collections: Utilities, Billing, & Collections (UBC) and Business Tax & License (BTL)
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Accounts Payable & Disbursements 3
➢ Item 1 - Policy and Procedures Recommendation – Implemented • Standard Operating Procedures and other written documentation have been developed, defining policies and procedures for all functions within the Accounts Payable section.
➢ Item 2 - Additional Training Resources Recommendation – Implemented • Internal staff receive on-going training on all new and existing processes/procedures. ➢ Item 3 - Whistleblower Hotline Recommendation – Ongoing Exploration General Reporting & Operations
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Accounts Payable & Disbursements
4 ➢ Item 1 - In-Person Check Pick-ups Recommendation – Implemented • All employees must now be pre-authorized (CF-100 Form) and this approval is granted by department directors. In addition, adequate reasoning must be provided as to why a pick-up is needed. An employee badge and signature is required upon pick-up.
➢ Item 2 - Vendor Creation Recommendation – Implemented • Process of Vendor Management has been transitioned to Purchasing Department for vetting of new and existing vendors.
➢ Item 3 - User Access Controls and Workflow Roles In Tyler Munis Recommendation – In Progress • Have developed formal process for establishing user system access. Continuing to analyze and assess user roles to ensure consistency across the system.
➢ Item 4 - Duplicate Payment Check Recommendation – Implemented • Process implemented to ensure no duplicate payments are processed prior to each payable cycle. ➢ Item 5 - Timeliness and Communication Between Departments Recommendation – Implemented (Ongoing) • Implemented continuous department communications related to important process timelines.
Working to develop formal process documentation that reiterates the expectations for invoice submission.
Control Activities
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Accounts Payable & Disbursements 5
➢ Item 1 - Workflow Logic Recommendation - Implemented
• Workflow restricts an individual from directly approving their own inputs in the financial system. ➢ Item 2 - Workflow Approval Thresholds Recommendation – In Progress • Analysis is on-going to determine the potential impact to any recommended changes. ➢ Item 3 - Control Monitoring Recommendation – Implemented • Implemented key metrics that are assessed daily to monitor activities such as, invoice age, volume by department, and # of invoices outstanding by vendor. Controls implemented to review check register prior to each payable cycle and, auditing is conducted after each cycle by a staff member that is independent from the Accounts Payable section. ➢ Item 4 - Internal Training & Process Resources Recommendation – Implemented (Ongoing) • Training videos have been published and are available for City-wide staff to provide training on essential Accounts Payable processes.
Other Comments
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Collections: Utilities, Billing, & Collections (UBC) and Business Tax & License (BTL) 6
➢ Item 1 - Policy and Procedures Recommendation – In Progress • Existing standard operating procedures and other written documentation have been evaluated and are being refined to ensure alignment with current processes. ➢ Item 2 - Enhancement of Staff Training for UBC Recommendation – In Progress • Training and on-boarding materials are currently being updated to ensure continuity for staff processes.
➢ Item 3 - Central Square (Naviline) Software Recommendation – Implemented (Ongoing) • Additional staff member has been hired and cross trained. The development of documentation and cross training to ensure purposeful redundancy so no key-person dependencies exist when troubleshooting the system.
➢ Item 4 - Identifying Customers who are Past Due on Billings Recommendation – Implemented • Created new report that is more effective in identifying delinquent accounts.
General Reporting & Operations
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 ➢ Item 1 - Internal Control Monitoring Recommendation- Implemented (Ongoing) • Internal controls continue to be reviewed and evaluated for monitoring activity and key metrics ➢ Item 2 - Business Tax & License- Various Items Recommendation • Continue to review, question, and investigate variances that may result in deposits not being fully reconciled – Implemented
• Have two employees involved in the mail-opening process and/or build control to mitigate potential for manipulation/misuse of payments received – Implemented • Ensure information on shared drive is backed up as this folder can be manipulated by multiple employees – Implemented
• Create additional controls to ensure that changes to business accounts are appropriate – Ongoing
➢ Item 3 - Cash Handling and Collections Recommendation – Implemented • Dual custody and dual count of cash and a formal policy for cash handling has been developed; in addition to additional monitoring controls.
Collections: Utilities, Billing, & Collections (UBC) and Business Tax & License (BTL) 7
Control Activities
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Collections: Utilities, Billing, & Collections (UBC) and Business Tax & License (BTL) 8
➢ Item 1 - Online Applications (UBC) Recommendation – Implemented • Utilizing an abbreviated form to expedite review of online applications. ➢ Item 2 - Promotion of Electronic Payments for UBC Recommendation – Ongoing • Continuing to promote electronic options, including training where necessary. ➢ Item 3 - Automatic Meter Reading (AMR) Analysis Recommendation – Implemented (Ongoing) • Working in collaboration with DPU to explore options for more accurate and timely meter readings.
➢ Item 4 - Call Tracking Review for Customer Service Clerks – Implemented • System has been upgraded and now provides better detail in assessing service levels.
Other Comments
F I N A N CE & A U D I T C O M M I T T E E M E E T I N GM A R C H 2 6 , 2 0 2 5 Update on existing audits9
F I N A N CE & A U D I T C O M M I T T E E M E E T I N G ➢ Internal Control Review
• Accounts Receivable, Grants, Payroll, and Treasury
➢ PARCS Department
➢ Airport Department
M A R C H 2 6 , 2 0 2 5
10 F I N A N CE & A U D I T C O M M I T T E E M E E T I N G Questions
M A R C H 2 6 , 2 0 2 5