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TO: FROM: DATE:
FLORIDA
CITY AUDITOR'S OFFICE
Mayor and Council Mem~er Margaret Krym, City Audit September 23, 2014
SUBJECT: Report- Evaluation of Internal Controls - Fuel and Parts Acquisition, Monitoring, Disbursement and Usage
Internal control is an integral component of an entity's management and is intended to provide reasonable assurance that the objectives of the entity are being achieved. It is not one isolated activity, but a series of actions in a process. An effective internal control system must be intentional, planned and managed.
We engaged Clifton Larson Allen LLC to perform an Agreed-Upon Procedures Assessment of the controls intended to provide assurance that data regarding the acquisition and usage of Fuel and Parts in the City's Fleet Division is accurate and complete. Their narrative report is on pages one through eight.
Their results and conclusions begin on page five. Detailed descriptions of the processes along with descriptions of 65 controls and 45 recommendations to strengthen and improve these controls are included as follows:
Fuel Acquisition, Monitoring, Disbursement and Usage Parts Acquisition, Monitoring, Disbursement and Usage
Total recommendations
Number of recommendations
26 19 45
Pages 9 - 31 35- 50
We have discussed each of the 45 recommendations with Management and their responses, along with a responsible party and a forecast completion timeline are provided on the control assessment documents.
The Audit Office will list these 45 recommendations in our follow up action register and will revisit them in six months to two years as dictated by Management's response. We will also be removing the 13 follow up action items from the 2011 Fuel Management Audit as these have been superseded by the new 45 recommendations.
Should you have any questions regarding this report I will be happy to respond.
C: John Szerlag, City Manager Michael llczyszyn, Interim Assistant City Manager Dolores Menendez, City Attorney Rebecca van Deutekom, City Clerk Steve Neff, Public Works Director Victoria Bateman, Financial Services Director John Maclean, ITS Director Paul Koch, Fleet Manager Audit Committee
P 0 Box 150027 815 Nicholas Pkwy.
Cape Coral, FL 33915-0027 Phone 239-242-3383 Fax 239-242-3384
CITY OF CAPE CORAL PUBLIC WORKS DEPARTMENT
TO: Margaret Krym, City Auditor
FROM: Steve Neff, Public Works Directo~~
DATE: September 22, 2014
SUBJECT: Fuel and Parts Acquisition Monitoring, Disbursement and Usage Audit Report
The City Manager and his staff appreciate the thorough review of the fueling and parts management portions of the Fleet and related Finance/Accounting processes. The City's fairly recent hiring of a very experienced Fleet Manager coupled with acquisition of quality fleet/fuel management software is moving the City forward towards its goal of becoming one of the top fleets in the United States.
There are many challenges in taking the Fleet Division to that goal, and staff is committed to address them all. The matrix included in the report provides the City Manager's staff responses and proposed actions/timelines for specific audit items.
SN/bw:(Fleetauditreportmemo)
C: John Szerlag , City Manager Michael llczyszyn, Interim Assistant City Manager Victoria Bateman, Financial Services Director Paul Koch, Fleet Manager
CITY OF CAPE CORAL
EVALUATION OF INTERNAL CONTROLS FUEL AND PARTS ACQUISITION, MONITORING, DISBURSEMENT AND USAGE
FINAL REPORT JULY 31, 2014
Page
COVER LETTER i
I. FUEL AND PARTS MANAGEMENT OVERVIEW 1
II. METHODOLOGY 4
III. SUMMARY OF RESULTS 5
IV. FUEL ACQUISITION, DISBURSEMENT AND USAGE INTERNAL CONTROL DOCUMENTATION, INCLUDING MANAGEMENT RESPONSE
9
V. FUEL MANAGEMENT FLOWCHARTS 32
FLOWCHART A: FUEL ORDERING, RECEIVING AND PREPARATION FOR PAYMENT 33
FLOWCHART B: FUEL COST ALLOCATION AND INVENTORY RECONCILIATION 34
VI. PARTS ACQUISITION, DISBURSEMENT AND USAGE INTERNAL CONTROL DOCUMENTATION, INCLUDING MANAGEMENT RESPONSE
35
VII. PARTS MANAGEMENT FLOWCHARTS 51
FLOWCHART C: PARTS ORDERING 52
FLOWCHART D: PARTS RECEIVING 53
FLOWCHART E: PARTS INVOICE PROCESSING 54
FLOWCHART F: PARTS COST ALLOCATION 55
i
July 31, 2014 Ms. Margaret L. Krym, City Auditor City Auditor’s Office City of Cape Coral 1015 Cultural Park Boulevard Cape Coral, Florida 33990 Dear Ms. Krym: As requested by the City of Cape Coral (the City), we have completed our engagement to review the internal controls associated with the City’s fuel and parts acquisition, disbursement, monitoring, and usage processes. Specifically we carried out an assessment in the following areas:
1. Controls capturing transaction data for the acquisition and disbursement of fuel from source transactions to the accurate recording of that data in the general ledger.
2. Controls capturing transaction data for the acquisition and disbursement of fleet parts inventories from source transactions to the accurate capture of that data in the general ledger.
3. Controls that provide assurance that the fuel usage database information is accurate and reliable including fuel usage by vehicle and by driver, miles per gallon per vehicle, department, time period, mileage odometer information, etc.
4. Controls providing assurance that the fleet inventory parts usage database information is accurate and reliable including services provided by vehicle, department, time period, and maintenance type and costs per vehicle.
5. Controls ensuring accurate tracking and safeguarding of fuel during its movement from one location to another by City staff in tanker trucks.
6. Controls governing the use of fuel in non‐vehicle equipment.
7. Controls utilized by Management to monitor the efficient, effective and economical use of fuel including:
a. Reconciliation of the fuel inventory amounts in the fleet management applications to the financial accounting inventory amounts,
b. Review of utilization reports with anomaly reporting and trend analysis,
c. Review of maintenance and fuel costs per vehicle compared to vehicle age,
d. Inspection and recalibration of fuel pumps.
ii
The purpose of this consulting engagement was to –
Review the data flow processes and internal controls in the City’s fleet management and provide an assessment as to their strengths and or vulnerabilities post‐installation of the new fuel management application, GasBoy.
Document the processes as they currently exist through detailed flowcharts, including documentation of key control points (manual controls and application controls).
Review and assess key risks previously identified, and determine the effectiveness and level of mitigation with updated actions.
Prepare control descriptions and an internal control assessment tool.
In total, we identified and documented 65 controls (39 for fuel, 26 for parts management) within six sub‐processes, and made 45 recommendations to improve controls, (26 for fuel, 19 for parts management). As requested by the City, our study did not include testing of internal controls. Our report is intended solely for management of the City of Cape Coral, and is not intended for any purpose other than to assist you with the items mentioned above. Consequently, our report is limited for your information and use only and should not be used by anyone else. In addition, our report is based on circumstances that were current prior December 2013, and we have no responsibility to update our report for events and circumstances that occurred after that date.
Respectfully submitted,
CliftonLarsonAllen LLP Jennifer Leary, CPA Partner 704‐998‐5283 [email protected]
1
I. FUEL AND PARTS MANAGEMENT OVERVIEW The City’s Fleet Management Division (herein referred to as “Fleet”) manages repair and maintenance of a fleet of approximately 850 vehicles and seven non‐vehicle equipment items (i.e., generators). In 2013, the City purchased approximately $2.3 million in fuel and $900 thousand in parts and tires (collectively referred to by the City as “equipment” or “parts”) to satisfy the operational needs of its fleet, broken down as follows:
Fiscal Year 2013 Fuel and Equipment Expenses Equipment Fuel
Parts $ 632,642.07 Tires 281,245.24 Total $ 913,887.31
Unleaded $ 1,592,281.35 Diesel 499,157.15 Dyed diesel 237,342.88 Total $ 2,328,781.38
Fuel acquisition, distribution and inventory management Fuel inventory in the City’s storage tanks and its distribution to City vehicles is primarily controlled through GasBoy, an automated system that keeps track of unleaded, diesel and dyed diesel fuel delivered by the fuel vendors. GasBoy also tracks the fuel dispensed at the gas stations and the fuel transferred internally from the storage tanks to fire station fuel pumps or to off‐road vehicles, such as golf carts, and generators using the City’s three tanker trucks. Fuel dispensed to gas containers (gas cans), which have no GasBoy equipment, is controlled by assigning an asset number to groups of gas cans designated to specific user departments. GasBoy operates through a combination of a data (odometer) reader and a fuel ring mounted around the fuel inlet, both installed in the vehicle, along with the employee’s ID badge, programmed in the GasBoy system to allow the employee to dispense fuel. Storage tanks and gas stations are also equipped with GasBoy devices to allow tracking of fuel transactions. City vehicles 2006 and newer (770 or about 90% of the total vehicles) are equipped with both data readers and gas rings. Since fuel consumption of vehicles 2005 and older is lower and to reduce equipment cost, those vehicles are only equipped with a fuel ring and their odometer data is captured through the driver’s manual entry of the mileage in the GasBoy controller located at the pump. Fuel is only dispensed when the employee swipes the ID badge and the mileage is entered. Fuel consumption by vehicle or non‐vehicle equipment is captured through FASTER Asset Solutions (FASTER), the City’s asset management system that tracks all parts and labor used in every vehicle. Each vehicle has an asset number assigned in FASTER, and asset numbers are associated to the City department that owns the asset. GasBoy and FASTER are integrated through an automatic interface (installed in November 2013) that allows daily uploads into FASTER, of GasBoy records of fuel distributed from the pumps and tanker trucks. FASTER does not interface with the City’s financial management system, JD Edwards (JDE). As a result, there are certain manual processes in place to facilitate the accounting of parts and fuel transactions. For recordkeeping, inventory reconciliations, and cost allocation purposes, fuel purchase invoices are
2
manually entered in GasBoy and recorded to the general ledger only after the invoice and order are duly reconciled. Since the City’s fleet management is an internal service fund operation (not general fund), all the expenses related to vehicle maintenance and repair (parts and labor) have to be allocated (charged back) to the department that owns the vehicle (user department). On a monthly basis the Accounting Department extracts data from GasBoy on fuel consumption and Fleet extracts a fuel consumption report from FASTER, detailed by vehicle and user department. The two reports are reconciled and Accounting charges fuel consumption back to user departments. Charges of parts and labor are processed through manual postings to the departments’ respective general ledger expense accounts in JDE. The City is allowed to request a reimbursement for state and federal excise taxes paid on purchases of diesel and unleaded fuels. Monthly, Accounting gathers state tax information from GasBoy and FASTER records, completes of the Local Government User of Diesel Fuel Tax Return form, and submits to the Florida Department of Revenue for the tax refund. The following graphic represents the flow of data between GasBoy, FASTER and JD Edwards (JDE).
Storage tank/ pump stations
Vendor fuel delivery
Tanker Trucks
(a)
Fire Stations’ fuel pumps
Individual vehicles, gas cells & golf
carts
Non GasBoy monitored equipment
Automatic credit to GasBoy inventory.
Automatic transfers/pass throughs within GasBoy inventory
Automatic debits to GasBoy inventory at tank, pump or vehicle level
Automatic credit to JDE inventory by receipt of PO by fuel type
Manual credit to user departments and debit to JDE inventory at pump/tank level
GasBoy realm (core fuel inventory system)
Fuel Management Data Flow Diagram
Faster realm
JDE realm
Interface/User dept.
disbursement detail
General ledger, tank/pump inventory
- Gas cans
Cost allocationVendor payment
Legend:
Interface
Notes:(a) Incoming tanker truck fuel (either vendor or transfers from existing stock) is not yet being recorded in GasBoy. Disbursements are recorded as a manual log.
3
Parts acquisition and distribution Except for fluids, City policy is to order parts as needed and to not carry inventory of parts. The City has elected to use NAPA Auto Supply as the contractual third‐party priority vendor with the purpose of reducing City administrative effort and time delays associated with procuring parts, while maximizing the advantages of volume discounts and contract pricing. NAPA has an On‐Site Store at the City’s Fleet facilities manned by a full‐time NAPA employee. NAPA stocks frequently used products in this warehouse or orders from its external warehouse as needed. NAPA also has the authority to procure parts that NAPA does not stock, including specialty parts, on the City’s behalf. In this case, NAPA researches vendors and prices, consults with City personnel as needed, and selects the most beneficial option for the City. A price mark‐up is added on non‐NAPA stocked purchases. In certain occasions, Fleet procures outside the NAPA arrangement, especially when the purchase is through state contract where the City benefits from discounts when it orders directly. Parts’ acquisition and disbursement is also supported by FASTER, which uses a Work Order (WO) system to track all parts and labor associated to vehicle (asset) repair and maintenance. WOs can only be created for a valid asset number and NAPA can only place purchase orders in its system with an existing FASTER WO. The NAPA and FASTER systems are integrated through an interface that allows daily uploads of NAPA procurement transactions. Daily, NAPA invoices are reconciled to the interface report before they are entered into JDE. The following graphic represents the flow of data between GasBoy, FASTER and JDE.
Parts Management Data Flow Diagram
FASTER realm
NAPA purchases
NAPA system realm
Direct City purchases
Work Order system used to capture and track parts usage by vehicle
Manual requisition
Manual receipt
NAPA/FASTER interface
JDE realm
General ledger/ cost allocation
Manual receiptManual receipt
JDE Purchase Order
Cost allocation &Vendor payment
Manual interface
4
II. METHODOLOGY Our first step was to interview key individuals to document our understanding of fuel and parts management practices, and to identify related sub‐processes. Individuals interviewed included – Public Works Director Finance Department Manager Fleet Superintendent Finance Department Accountant Fleet Account Coordinator Accounts Payable Supervisor Fleet Service Writer Information Technology Services Director Fleet Mechanics (2) Information Technology ICT Manager NAPA In‐House Representative
The next step in our assessment consisted of evaluating fuel and parts acquisition and disbursement activities by organizing them into sub‐processes. For each sub‐process we flowcharted the relevant steps as carried out by incumbent parties. The flowcharts within the six sub‐processes listed below are included under report Sections V and VII, pages 22 and 34. Fuel Management
A. Fuel ordering, receiving and preparation for payment B. Fuel cost allocation and inventory reconciliation
Parts Management
C. Parts ordering D. Parts receiving E. Parts invoice processing F. Parts cost allocation
For each identified internal control, we then described the control activity and made recommendations to strengthen the design and implementation of the controls wherever pertinent. In total, we identified and documented 65 controls (39 for fuel, 26 for parts) within the six sub‐processes listed above. Internal Control Documentation details are found under report Sections IV and VI, pages 22 and 34 on pages 8 and 25, respectively.
This space left blank intentionally.
5
III. SUMMARY OF RESULTS We determined that the City, with the exception of the deficiencies and recommendations noted below and within our control matrices, maintains reasonable level of controls for – Capturing transaction data for the acquisition and disbursement of fuel and parts from source
transactions to the accurate recording of that data in the general ledger,
Governing the use of fuel and parts and ensuring that usage information is accurate and reliable, and
Allocating (charging back) fuel and parts costs to user departments. While controls are in place, the City needs to take certain measures to strengthen these controls and ensure that they function as they were designed. Our engagement yielded a total of 45 recommendations to improve controls, 26 for fuel management and 19 for parts management; these recommendations are included in the Internal Control Documentation tools, Sections IV and VI (pages 22 and 34) of this report. We believe that two of the recommendations resulting from this evaluation are particularly critical to ensuring that acquisition and transaction data is captured accurately and completely, guaranteeing data integrity, and preventing loss. Recommendation 5 addresses the criticality of entering transactions into the various systems on a timely basis; Recommendation 6 addresses rules necessary for performing reconciliations of fuel purchases, fuel paid and fuel inventory periodically to facilitate the resolution of discrepancies among the existing systems. It is of concern that no significant progress has been achieved on these recommendations since the draft report was discussed with Management in January 2014. Additionally, we believe that implementing these recommendations for stronger internal controls will be instrumental in realizing Management’s goal to achieve the 100 Best Fleets in North America recognition in 2015. Following is a summary of what we believe are the most relevant observations and recommendations, which we have organized in the areas of tools, rules and people. TOOLS Acquisition, disbursement and usage of both fuel and parts is supported by a robust, multi‐application system, that has the capacity to capture all instances of disbursement of fuel and parts to vehicles and to generate management reports necessary to monitor and control the activity. As a whole, the system is designed to allow management the ability to assure stakeholders that the City is receiving all of the fuel and parts for which it is paying, and to account for their usage at any given point. However, there are certain elements that hinder the system’s full utilization, the most notable being incomplete system parameters and lack of management reports. Incomplete system parameters There is not a single list of assets or a formal procedure to concurrently update asset information
within the three databases. While JDE is the system of asset records, independent asset databases exist in both FASTER and GasBoy. Since the three systems are not integrated, assets have to be
6
added or removed through independent processes. To improve, the City needs to reconcile the databases, eliminate any discrepancies and develop an all encompassing procedure going forward.
Vehicle parameters are not completely established in GasBoy or in FASTER. Consequently, fuel consumption is being monitored at a summary level of total fuel disbursed; detailed consumption by vehicle is not monitored. So far, vehicles have been programmed only with basic information such as asset number, user department, make and model. Detailed usage parameters such as vehicle fuel capacity, designated driver, type of fuel, maximum fuel disbursement amount, average usage, etc. have not yet been programmed. Until this information is available, the City cannot control fuel consumption at a detailed level. Fleet expects to have a complete record of all vehicles by the end of 2013. The City should assign a high priority to this task.
For Vehicles 2005 and older, which do not have a data reader and mileage is entered manually at
the GasBoy’s pump console, Fleet has yet to add a feature to force the manual entry. Until this is done, employees can get fuel without entering the mileage. The City should also assign a high priority to this task.
While the tanker trucks are equipped with GasBoy equipment, this system was not fully functional
at the time of this project and Accounting was having difficulty gathering fuel transfer data. Management is currently working on correcting these issues. This task should also be designated as high priority.
Absence of fuel and parts management reports While there are sufficient mechanisms to capture acquisition and disbursement data, currently no reports are being prepared to monitor and control the efficient, effective and economical use of fuel and parts. Without standard periodic reports on utilization, anomalies and trend analysis, it is difficult to assure that the fuel and parts inventory and usage database information is accurate and reliable. Incomplete system vehicle parameters and absence of data analysis staff were cited as the primary causes, and management plans to produce detailed consumption reports in the near future. As soon as possible and once asset information is complete, the City should develop standard monitoring and usage reports to address fuel usage by vehicle and by driver, miles per gallon per vehicle and by department; maintenance type and parts’ costs per vehicle, department, and time period, among others. Reports should also address internal transfers, generators’ fuel usage, golf carts fuel usage, and fuel usage in portable gas containers. Vehicles with unusual readings should be flagged for follow up. Additionally, the City should develop metrics that assess fuel and parts management performance such as fuel cost per vehicle compared to vehicle age. RULES Overall, the City is lacking documented procedures, including time completion standards and performance measures, to guide the activity of those involved in fuel and parts management, and ensure that tasks are completed timely and accurately. Timely reconciliation of data and timely entry of records are important areas where formal procedures and standards are needed.
7
Rules for timely reconciliations of data There is a need to establish procedures for data reconciliations. Since fuel and parts management are supported by multiple systems that are not fully integrated, reconciliation consists of a multi‐step process between the purchases, disbursements, and inventory, and is essential. Reconciliation of the databases and interface reports is needed to assure transactions are accurately recorded. Reconciliations occur at various times at various points, for example: Work orders for one day’s activity have to be reconciled with the NAPA/FASTER interface report,
prior to the entry of the invoice into JDE to verify that transactions are entered accurately and completely to FASTER.
Fleet reconciles the GasBoy/FASTER interface file to the FASTER database daily to ensure that all transactions are imported accurately and completely to FASTER.
Monthly, Fleet reconciles a summary extract from GasBoy prepared by Accounting to the FASTER total disbursements for the month, prior to posting transaction in the general ledger.
Monthly, Accounting reconciles the total available volumes available in GasBoy to the total volume available in JDE for deliveries, disbursements and transfers. Fleet then reconciles the GasBoy information to FASTER records.
Monthly, Fleet reconciles a FASTER billing summary report prepared by Accounting of parts and labor by department and by asset to FASTER totals for the month, prior to posting transaction in the general ledger.
Rules for timely entry of records Currently, reconciliations are not fully effective primarily due to delays with entering records, the extent of manual entries into the systems, and apparent staff limitations. Timely entry is essential to obtaining all possible revenue from tax reimbursement and from discounts for prompt payment of parts’ invoices. Timely entry is also key for accurate cost allocations. If all information is not promptly entered into GasBoy, FASTER and JDE, the City cannot fully account for how much fuel was delivered and who used it and for what purpose at any given point. The City needs to develop timeliness standards for entering records in the pertinent systems, for example:
‐ Create PO in JDE the day of the delivery. ‐ Receive POs in JDE and in GasBoy at least twice per week. ‐ Enter invoices in JDE twice per week. ‐ Have all monthly transactions in the system by the 5th of the following month. ‐ Fleet agrees the inventory in FASTER with the inventory in JDE by the 5th of the following
month. Rules for monitoring NAPA procurements NAPA has the authority to procure parts that NAPA does not stock on the City’s behalf. In this case, NAPA researches vendors and prices, selecting the option that most benefits the City, and adding a mark up to the third party vendor price. The City can improve cost effectiveness by implementing periodic analyses of non‐NAPA stocked items, and by requesting NAPA to stock additional parts to avoid mark‐up
8
costs. Additionally, the City can improve NAPA’s selection process by giving NAPA access to asset repair and part usage history. The City should also work with NAPA to develop a procedure to track warranties and ensure that the City maximizes their use. PEOPLE The organizational structure and staffing level of Fleet may not be adequate to support the magnitude and complexity of the City’s fuel operation, or to achieve the Fleet goals that the City has established. In addition to the Fleet Manager, the Fleet’s fuel management/administration team consists of one Fleet Superintendent who splits time with fleet services duties, and one Account Coordinator. There are two mechanics temporarily assigned to fuel operational duties and internal fuel distribution. Currently, there is no dedicated staff that is specifically trained to analyze and manage fuel operations. The City should benchmark current Fleet staffing levels against comparable jurisdictions. As needed, increase number of staff or provide training to existing staff in order to meet the demands of City’s fuel operation. In the future, the City should evaluate the cost‐effectiveness of doing the internal transfers in‐house versus outsourcing all or part of that activity to the fuel vendors.
This space left blank intentionally.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
9
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
GEN
ERAL
Man
agem
ent R
espo
nse:
Th
e fle
et m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng
addi
tiona
l sta
ff as
nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es o
utlin
ed in
this
do
cum
ent.
1TheCityhas
documentedpolicies
andproceduresforall
fuelmanagemen
tprocesses.
TheCity’sAdministrativeRegulation(AR)#24,Cityw
ide
FuelManagemen
t,describes
thepolicyandprocedures
governingtheuse
anddistributionoffuelbyCity
vehiclesandeq
uipmen
t.
However,A
R#24isoutdated
asitdoes
notaddress
the
new
fuelmanagem
entsystem
s,GasBoyanditsinterface
withFA
STER
,theCity’sassetmanagem
entsystem
.Also,
certainspecificfuelmanagem
entproceduresarenot
form
allydocumen
ted,asnotedbelow.
Recommendation1
(a)UpdateAR#24(Cityw
ideFuelM
anagemen
t)to
reflectcurrentfuelmanagem
entprocedures.
Includeadditionalproceduresas
recommendedinthisstudy.
(b)Proceduresshouldaddressthetimelyentryof
transactionsinallsystemsthat
supportfuel
managem
entthrough
specifictimestandards.
SeeRecommen
dation5.
(a) T
he c
ityw
ide
fuel
man
agem
ent o
pera
tion
is
curr
ently
bei
ng d
ivid
ed in
to (3
) sep
arat
e op
erat
ions
. (1)
City
wid
e ve
hicl
e/eq
uipm
ent
refu
elin
g. O
pera
tiona
l con
trol
is u
nder
Fle
et
Man
agem
ent.
(2) R
efue
ling
oper
atio
ns fo
r Wat
er T
reat
men
t Pl
ants
and
bac
kup
gene
rato
rs. O
pera
tiona
l con
trol
is
und
er th
e W
ater
Dep
artm
ent.
(3) T
he re
fuel
ing
of st
andb
y ge
nera
tors
loca
ted
at
city
faci
litie
s. O
pera
tiona
l con
trol
is u
nder
Fac
ility
Mai
nten
ance
. AR
#24
is b
eing
upd
ated
to re
flect
thes
e ch
ange
s.
Fleet Manager
A
2TheCitylocatesfuel
atthelowest
reasonablecostand
theCityordersfuelin
theam
ountsneeded
tooptimizethose
costs.
TheCityhas
contractswithtw
ovendorsthat
supplyfuel
intransportquantity
deliveries,atunitpricesbased
on
theData
Transm
issionNetwork
(DTN
)FastRacksAverage
Pricesontheday
ofthedeliveryplusamarkup.
Fuelordersneedto
beplacedinsuch
way
that
the
quantities
ordered
andthenumber
ofdeliveriesremains
withincontractparam
eters;otherwise,theCitycanincur
additionalcosts.Fleetpersonneldesignated
as“Fuel
Managers”
obtainGasBoyfuelreadings
ofthesix
storage
tanks,andrecommen
dthefuelorder
amountby
fueltype.Th
eFleetSuperintenden
treview
sthe
recommendedorder
andadjuststo
meetfuelvendor
contractstipulations.
Recommendation2
Trackandperiodicallyanalyzefuelordersthat
exceed
edcontractstipulationinterm
sofnumber
ofallowed
weeklydeliveries.Based
ontheresults,
refineorderingproceduresto
elim
inateexcess
deliveriesandcostsinthefuture,orrenegotiate
contractrates.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l re
view
s and
will
wor
k w
ith IT
to fi
naliz
e th
e au
tom
ated
pro
cess
.
Fleet Manager
C
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
10
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
3TheCitytakes
advantage
of
availablediscountsas
describedinthe
vendorfuelcontracts.
Curren
tfuelvendorcontractsdonotprovideany
discountsforeven
tssuch
asearlypaymen
ts.
None.
4Thereisadeq
uate
segregationofduties
forfuelordering,
receivingand
paymen
t.
Segregationofduties
fororderingisnotoptimalfor
placingfuelordersandreceivingtheordersintheCity’s
financialmanagem
entsystem
,JDEdwards(JDE),
because
theFleetSuperintendentcurren
tlycompletes
both
tasks.Additionally,theFleet
Superintenden
tisalso
incharge
ofapprovingthedeliveryorder.
Paymen
tisproperlysegregated
totheAccountsPayable
Dep
artm
ent(AP).
Stafflim
itationswerecitedas
theprimaryreasonfor
inadeq
uatesegregationoftheseduties.
Recommendation3
Leverage
newFleetManager
andtheAccount
Coordinatorforbettersegregationofapproval,
orderingandreceivingduties.
Com
plet
ed
Fleet Manager / Purchasing Manager
Completed
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
11
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
5Fuelmanagemen
tand
operationsis
supported
byan
adeq
uate
organizational
structure
andnumber
ofstaff.
Theorganizationalstructure
andstaffinglevelm
aynot
beadequateto
supportthemagnitudeandcomplexity
oftheCity’sfueloperation.Thefollowingissues
were
noted:
Inadditionto
theFleet
Manager,theFleet
Dep
artm
ent’sfuelmanagem
ent/administrationteam
consistsofoneFleetSuperintenden
twhosplitstime
withfleetservices
duties,andoneAccount
Coordinator.Curren
tly,there
isnoded
icated
fuel
managem
entandanalysispersonnel.
Therearetw
omechanicscurren
tlyassigned
tosupportfueloperationalduties,such
asobtaining
storage
tankfuelreadings
andrecommen
dingfuel
order
amounts;they
arealso
incharge
ofthe
internaldistributionoffuelusingthetankertrucks.
Thisassignmen
tappearsto
take
attentionfrom
their
core
mechanicduties
andpotentiallycreatesa
backlog.
Recommendation4
(a)Ben
chmarkthestaffing(typeandnumber)
levelsthat
supportfueloperationsagainst
comparablejurisdictions.Asneeded
,increase
number
ofstaffortrainexistingstaffinorder
tomeetthedem
andsofCity’sfueloperation.
(b)Inthelongterm
,theCityshouldevaluatethe
cost
effectiven
essofdoingtheinternal
transfersin
house
versusoutsourcingthat
duty
tothefuelvendorswhile
leavingroom
forself
distributionincasesofemergency.
(a) T
he F
leet
Div
isio
n ha
s pla
ns to
recl
assi
fy a
w
elde
r fab
rica
tor p
ositi
on in
to a
fuel
tech
pos
ition
.
(b) C
ompl
eted
. Fue
l is d
eliv
ered
to ta
nks b
y fu
el
vend
or.
Fleet Manager Fleet Manager
Completed
6Fuelordering,
transfersand
disbursem
entsare
centralized
.
Fuelordering,transfersanddisbursementsare
centralized
city
wideundertheFleetManagem
ent
Dep
artm
entas
supported
bytheGasBoysystem
.No
fuelpurchases
aremadewithcred
itcards,unlessthe
purchaseisassociated
withtravel.Thissettingfosters
accountability
andpromoteseconomiesofscale.
None.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
12
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
FINANCIALDATA
INTEGRITYANDRELIABILITY
7Computerized
system
sareinplace
toautomatically
capture
fuelinventory
dataandminim
ize
human
error.
Fuelmanagemen
tissupported
byGasBoy,aweb
based
inventory
managem
entsystem
forfuelvolume(gallons).
GasBoycapturesdataonfuelinfluxanddisbursem
ents
through
electroniceq
uipmen
tinstalledonCityfuel
tanks,veh
iclesandequipmen
t.Mostvehicles(about92%)areeq
uipped
withafuelring
andadatareader
(odometerreader),that
operatein
conjunctionwiththeem
ployeeID
badge,program
med
inGasBoyto
allowandcontrolfueldisbursem
ent.For
vehicles2005andolder,odometer
readingiscaptured
bythedrivermanuallyen
teringthemileageinaGasBoy
controllerlocatedat
thepumpandfuelisnotdisbursed
ifthemileageisnoten
tered.Storage
tanks
arealso
equipped
withafuelringplusaGasBoyautomatictank
gauge
console,w
hichprintsinventory
amounts
containedinthetanks.Theonlytw
ofuelactivity
centers
noteq
uipped
withGasBoyinstrumentsarethetw
odyed
dieselstorage
tanks
(FST1andFST2)locatedat
theFleet
compound,thestorage
tanklocatedat
theCitymarina,
andtheCity’sgenerators,allofwhicharemanually
“sticked
”(seealso
IC#19).
TheCityalso
usesFA
STER
aweb
based
asset
managem
entsystem
that
tracks
fuelconsumption,
automotive
partsandlaborbyvehicle/asset.G
asBoyand
FASTER
areintegratedthrough
acomputerinterfacethat
allowsdailyuploadsofGasBoyrecordsinto
FASTER
of
fueldistributedfrom
thepumpsandtankertrucksto
the
vehicles/assets.
None.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
13
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
8Manualprocesses,
especially
relatedto
interfaces
betw
een
theexistingsystem
s,arelim
ited
.When
necessary,thereare
sufficientchecks
and
balancesto
ensure
integrityoffinancial
andoperatingdata.
Thethreesystem
ssupportingfueloperations–GasBoy,
FASTER
andJDE,arenotfully
integratedandtherefore,
thereissomenecessary
duplicationandinform
ation
that
has
tobeen
teredmanually.However,
managem
enthas
putinto
place
compensatingcontrols
toen
sure
dataintegrityan
dthat
thethreedatabases
reconcileas
described
inIC#17and#34,below.
Specifically:
Fuelpurchaseorders(POs)arecreatedmanuallyin
JDEbecause
thefuelhas
tobechargedat
theprice
ontheday
ofthedelivery,nottheprice
ontheday
thedeliveryorder
was
placed(seealso
IC#17).
JDEdoes
notinterfacewithGasBoytherefore,fuel
transactionsareextractedfrom
GasBoyandmanual
postings
ofdeb
itsto
thebusinessunitsandcred
its
tothefuelinventory
aresubsequentlymadeinJDE
(seealso
IC#31).
Since
GasBoydeliverieshaveto
beassociated
with
JDEpurchaseordersto
enablereconciliations,PO
inform
ationhas
tobedoubleen
teredinto
both
JDE
andGasBoy.POinform
ationisen
teredinGasBoy
againstdelivery
orders,created
inGasBoy(seealso
IC#17).
None.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
14
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
9Transactiondatafor
theacquisitionand
disbursem
entoffuel
iscapturedinthe
City’sgeneralledger
accuratelyand
completely.
While
thefinancialmanagem
entsystem
,JDE,does
not
interfacewithGasBoyorwithFA
STER
,managem
enthas
established
checks
andbalancesto
ensure
integrityof
financialdataandaccuracy
ofthegeneralledger.
Specifically,acquisitionsarerecorded
inJDEwhenthe
fuelorder
isreceived
;disbursem
entsarerecorded
inJDE
viamonthlymanualpostings
inthegeneralledgerof
dataextractedfrom
GasBoybutonlyafterithas
been
reconciledwithFA
STER
records.
Curren
tlythere
isan
issueinthat
thePOsarenotinJDE
intimeforwhen
theFleetSuperintenden
tshouldenter
those
POsto
GasBoy.To
getby,theFleet
SuperintendentandITSagreed
totemporarilyassign
the
invoicenumberto
GasBoydeliveriesandsubsequen
tly
replace
withthePOnumberswhen
available.
Recommendation5
(a)Im
mediately,m
akethetimelyen
tryof
transactionsinto
thesystem
sapriority.
Developproceduresincludingtimestandards
toen
sure
that
alltransactionsarepromptly
recorded
inthesystem
s.Forexam
ple:
CreatePOinJDEtheday
ofthedelivery.
ReceivePOsinJDEandinGasBoyat
leasttw
iceweekly.
EnterinvoicesinJDEtw
iceper
week.
Haveallm
onthlytransactionsinthe
system
bythe5thofthefollowing
month.
Fleetagrees
theinventory
inFA
STER
withtheinventory
inJDEbythe5thof
thefollowingmonth.
Auditorconsidersthisrecommen
dationis
criticalinen
suringthat
acquisitionand
transactiondataiscapturedaccuratelyand
completely.
(b)Consider
aprocedure
totimestam
ptransactionsto
monitortimelydataen
try.
(c)To
reduce
therisksrelatedto
theam
ountof
manualentries,managem
entshouldwork
toiden
tifywaysto
automateorinterfacethese
entriesto
avoidtheinefficien
cyandrisk
of
errorsresultingfrom
duplicativemanualen
try.
Flee
t res
pons
e:(a
, b, &
c) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls
and
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l re
view
s and
will
wor
k w
ith IT
to fi
naliz
e th
e au
tom
ated
pro
cess
.
ITS
resp
onse
:(b
) Bo
th J
DE
and
Gas
Boy
time-
stam
p tr
ansa
ctio
ns. W
e pr
ovid
ed F
leet
with
a n
ew
Custo
m Q
uery
repo
rt on
Jul
y 23
, 201
4 –
the
“Fue
l O
rder
/Del
iver
y Au
dit R
epor
t” th
at th
at d
ispl
ays
days
diff
eren
ce b
etw
een
Requ
est &
Del
iver
y Dat
es;
betw
een
Del
iver
y and
Gas
Boy P
O E
ntry
; and
be
twee
n D
eliv
ery D
ate a
nd JD
E Re
ceip
t Dat
e.
(c) W
e m
et w
ith A
ccou
ntin
g an
d Fl
eet o
n 5/
29/2
014
to th
orou
ghly
disc
uss o
ptio
ns fo
r in
tegr
atio
n be
twee
n G
asBo
y an
d JD
E. T
here
is n
o be
nefit
in p
ursu
ing
this
at t
his t
ime.
We
are
wor
king
w
ith F
aste
r to
upgr
ade
to th
e ve
rsio
n 6.
2.26
by
the
end
of A
ugus
t.. W
e w
ere
advi
sed
by th
e Fa
ster
CEO
on
7/2
8/20
14 th
at th
e “T
anks
” m
odul
e, h
eret
ofor
e pr
omis
ed fo
r rel
ease
6.3
, is i
ndef
inite
ly d
elay
ed.
The
Tank
s mod
ule
is a
n in
tegr
al fe
atur
e of
the
Clie
nt S
erve
r ver
sion
but
was
dro
pped
in th
eir n
ew
web
pro
duct
.
ITS ITS Fleet Manager
10/15/2014 6/15/2014 C A
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
15
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
10
Fuelinventories
are
periodicallyverified
bycomparing
amountsto
financial
andoperational
recordsto
ensure
integrityofthedata
andpreventloss.
Aprocessisinplace
toperiodicallyreconciletheGasboy
andFA
STER
fuelinventory
databases
tothefinance
database(JDE).D
ifferencesarepromptlyinvestigated
andresolved
.
Reconciliationsofdatawithinthethreesystem
soffuel
purchases,fuelpaidandfuelinventory
arecompleted
everymonth
through
amultistep
processinvolvingthe
threesystem
s.After
themonthlycostallocationis
completed(seeIC
#31),theAccountingDep
artm
ent
agrees
thetotalvolumeavailableinGasBoyto
thetotal
volumeavailableinJDEfordeliveries,disbursem
ents
andtransfers.
Thisinform
ationisthen
submittedto
Fleetto
agreeto
thetotalgallonsdisbursed
inFA
STER
.
AsofJune30,2014,theAccountingDep
artm
ent
continues
toberesponsibleforthereconciliationofall
thedata,andFleethas
notbegunto
perform
the
reconciliationsofthefueldisbursed
inFA
STER
.
Recommendation6
(a)Especially
untilthefuelm
anagem
ent
proceduresconsolidate,perform
reconciliationsweeklyorbiweeklyto
facilitate
theresolutionofdiscrep
ancies
anddevelop
confiden
ceintheprocess.
(b)Ensure
that
reconciliationsoffuelpurchases,
fuelpaidandfuelinventory
arecarriedout
timelyandaccuratelybydeveloping
proceduresforen
tryandvalidationofdata
withinthesystem
s,such
aschecklists.
Auditorconsidersthisrecommen
dationis
criticalinen
suringdataintegrityand
preventingloss.Fleet
shouldstartperform
ing
thereconciliationsoftheFA
STER
disbursem
entsim
med
iately.
(a &
b) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as
nece
ssar
y pe
r CM
’s p
ropo
sed
Budg
et in
ord
er
to m
eet t
he a
mbi
tious
goa
ls a
nd o
bjec
tives
ou
tline
d in
this
doc
umen
t.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l re
view
s and
will
wor
k w
ith IT
to fi
naliz
e th
e au
tom
ated
pro
cess
.
Fleet Manager
C A
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
16
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
11
Proceduresarein
place
toreviewthe
GasBoy/
FASTER
interfacedaily
transm
issionfilesto
verifythat
thedata
was
transm
itted
accurately.
FleetreceivedandstartedusingtheGasBoy/FA
STER
interfacemoduleonNovember
13,2013.A
tpresent,the
Inform
ationTechnology
Services
departm
ent(ITS)isin
theprocessofassistingFleet
withvalidatingthat
transactionsarecomingovercorrectly,anddetermining
ifanyadditionalstandardprocedures/controls
needto
beim
plemen
tedto
ensure
accuracy.
AsofJune30,2014,ITS
isnolongerperform
ingthisrole
andFleet
isfully
responsibleforvalidatingaccuracy
of
transactionscomingovertheGasBoy/FA
STER
interface.
However,ITS
iswritingcertainreportsfortheFleet
Manager
tosupportthisprocess.
Recommendation7
Asneeded
,andincoordinationwithITS,develop
form
alproceduresformanaginginterface
transm
issionlogs,alongwithadescriptionof
commonerrorsandcourseofactionwhen
anomaliesaredetected
,includingnotificationto
theFleetManager.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in
orde
r to
mee
t the
am
bitio
us g
oals
and
ob
ject
ives
out
lined
in th
is d
ocum
ent.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l re
view
s and
will
wor
k w
ith IT
to fi
naliz
e th
e au
tom
ated
pro
cess
.
Fleet Manager
C B
12
Policiesand
proceduresarein
place
toperiodically
inspectandcalibrate
tankandvehicle
monitoring
equipmen
tcapturing
fuelinventory
data.
Inspectionandcalibrationwas
doneat
thetimethenew
equipmen
twas
dep
loyedinJuly2013andwillbedone
onayearlybasis,every
August.
Recommendation8
Documen
tannualinspectionandcalibrationof
tankandvehiclemonitoringeq
uipmen
tthrough
awritten
procedure.
Agre
e
Fleet Manager
B
13
Allaccessportsfor
undergroundstorage
tanks,backup
generatorsand
outsidegasolinetanks
areproperlylocked
.
Outsidestorage
tanks
havefencesaroundthem
,butare
generallynotlocked
.Storage
tanks
atEverestarelocked
andaCityidentificationbadge
isneededto
accessthem
.FleetServices
tanks
areinafencedinareathat
islocked
afternorm
albusinesshours.Large
backupgeneratorsat
CityHall,Em
ergency
OperationsCen
ter(EOC)andPolice
areinsecure
areasandlocked
.
None.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
17
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
14
EmployeeID
badges
arepromptly
activatedor
deactivated
from
the
GasBoysystem
for
new
andterm
inated
employees.
While
aprocessisinplace
toactivate
ordeactivatenew
orterm
inatedem
ployees
from
GasBoy,itisnotform
ally
documented.
Recommendation9
(a)IncoordinationwiththeHuman
Resources
Dep
artm
ent,expandtheStatusChangeform
toincludeFleet
authorizationandfuelusage
param
eters.Similarly,fleetmattersshouldbe
included
inem
ployeeexitprocedures.
(b)Periodically,produce
areportofallCity
employees
withfuelacquisitionrightsand
distribute
toCitydepartm
entsto
validate
and/oriden
tifyem
ployees
that
shouldno
longerhavefuelacquisitionrights.
(a &
b) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as
nece
ssar
y pe
r CM
’s p
ropo
sed
Budg
et in
ord
er
to m
eet t
he a
mbi
tious
goa
ls a
nd o
bjec
tives
ou
tline
d in
this
doc
umen
t.
Fleet Manager
C
15
Thecity
has
established
administratorrights
forem
ergency
situationsto
override
thestandard
disbursem
entprocess
usingemployeeID
badges.Policiesexist
tocontrolthis
process.
While
thereareadministratorrightsestablished
for
emergency
situations,there
arenospecificdocumen
ted
policiesthat
describetheiruse.
Recommendation10
Form
alizepoliciesandproceduresto
use
administratorrightsforem
ergency
situationsto
overridethestandarddisbursem
entprocess.
Agre
e
Fleet Manager
B
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
18
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
16
Aninternaltraining
program
onfuel
managem
entand
updates
tothesystem
isinplace
and
provided
tonewor
existingem
ployees
asneeded.
Curren
tlythere
isnotan
internaltrainingprogram
on
fuelmanagemen
tandupdates
tothesystem
inplace.
Recommendation11
Developan
internaltrainingprogram
onfuel
managem
entandupdates
andprovideitto
new
orexistingem
ployees
asneeded.
This
will
be
deve
lope
d on
ce th
e fu
el te
ch is
in p
lace
an
d tr
aine
d.
Fleet Manager
C
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
19
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
FUEL
ORDER
INGANDVEN
DORDELIVER
Y
17
Purchaseordersare
createdaccurately
andtimely.
ThereisablanketPOinplace
foreach
fuelvendor
againstwhichindividualPOsarecreatedas
vendorfuel
deliveriesaremadeper
theCity’srequest.
ThePOassociated
toeachdeliveryorderiscreatedin
JDEafterthefuelisdelivered
because
fuelprice
fluctuates
dailyandthePOispricedaccordingto
the
price
thedateofthedelivery.
Daily,A
ccountsPayablereceives
from
thefuelven
dor
andsubmitsto
theFleetAccountCoordinatortheData
Transm
issionNetwork
(DTN
)FastRacksAveragePrices.
TheAccountCoordinatorusesthisinform
ationto
manuallycomplete
anExcelPricingWorksheetto
generatetheprice
fortheorder
delivered
.Subsequently,
theAccountCoordinatorcreatesthePOinJDEby
manuallyen
teringtheorderam
ountandprice.
Theprice
calculationmadebytheAccountCoordinator
isvalidated
bytheFleet
Superintendentbefore
receiving
thePOinJDE.
POinform
ationisalso
enteredinGasBoyinorder
toassociatePOsinJDEandinGasBoyandto
allowmonthly
reconciliationsbetween
thesystem
s.
SeeRecommen
dation5,above.
Recommendation12
Continueto
retrieve
theDTN
FastRacks
Average
pricesinform
ationandconsider
shiftingthisduty
from
APto
theFleetAccountCoordinator.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es o
utlin
ed in
th
is d
ocum
ent.
Purchasing Manager
B
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
20
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
18
Fuelvendordeliveries
areverified
toen
sure
that
theam
ount
ordered
istheam
ount
received
.
Ven
dorsdeliver
fueldirectlyto
storage
tanks
(whichare
also
pumpstations),tocertaingeneratorsandto
the
City’sthreetankertrucks.Upondelivery,thedesignated
“FuelManagers”
comparevendordeliveryreceiptto
GasBoyautomatictankgauge
consolereceipt.
Additionally,priorto
receivingtheorderinJDEtheFleet
SuperintendentreconcilesPOinform
ationwithdelivery
receipt(seealso
IC#29).
Recommendation13
Consider
developingaprocedure
toform
alizethe
comparisonofthevendor’sdeliveryreceiptsto
aGasBoyreceiptperform
edbythe“Fuel
Managers”,andto
reportanydiscrepancies
overa
pre
established
variationthreshold.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in
orde
r to
mee
t the
am
bitio
us g
oals
and
ob
ject
ives
out
lined
in th
is d
ocum
ent.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l re
view
s and
will
wor
k w
ith IT
to fi
naliz
e th
e au
tom
ated
pro
cess
.
Fleet Manager
C A
19
Proceduresarein
place
tomanually
“stick”(ormeasure)
before
andaftereach
deliveryto
ensure
the
deliveryam
ountis
withinthe3%
difference
allowed
dueto
temperature.
Thetw
odyeddieselstorage
tanks
(FST1andFST2)
locatedat
theFleetcompoundandthestorage
tank
locatedat
theCitymarinaaremanually“sticked
”because
they
arenoteq
uipped
withGasBoyreaders.
Fleetplansto
installreadersinFST1
andFST2
inthenear
future;themarinafuelingactivity
willlikelyendinMarch
2014.Citygeneratorsarealso
manually“sticked
”since
they
arenoteq
uipped
withdatareaders.
Recommendation14
Rep
lace
manual“sticking”
procedure
with
automated
readings
wherever
itiseconomically
pertinent.
The
(7) v
ehic
le/e
quip
men
t ref
uelin
g ta
nks w
ithin
th
e ci
ty a
lrea
dy h
ave
auto
mat
ed ta
nk g
augi
ng
equi
pmen
t.
Fleet Manager
Today
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
21
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
FUEL
DISBURSEMEN
TANDTR
ACKING
20
TheCitycanaccount
fortheusage
ofall
fuel.
Exceptforthetw
odyedfueltanks
locatedintheFleet
compoundandonefueltanklocatedat
themarina,all
storage
tanks,transfer
trucks,gaspumps,gascells,and
vehicles(includingboatsandgolfcarts)areeq
uipped
withGasBoyeq
uipmen
tthat
continuallycollectsfuel
acquisitionanddisbursem
entactivity.W
hile
thetanker
trucksareequippedwithGasBoyeq
uipmen
t,thissystem
was
notfully
functionalat
thetimeofthisprojectand
Accountingwas
havingdifficultygatheringfueltransfer
data.Managemen
twas
workingoncorrectingtheissues.
When
ever
thereisGasBoyeq
uipmentoffline,uponlog
onthedesignated
managercanseeawarningflashing
onandoffinform
ingthat
astationisoffline.
Aslongas
theinform
ationispromptlyen
teredinto
JDE
andGasBoy,theCityhas
theability
toaccountforhow
much
fuelwas
delivered
andwhouseditandforwhat
purpose
atanygivenpoint.
SeeRecommen
dation5,above.
SeeRecommen
dation17(a)below.)
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
22
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
21
Adeq
uatecontrols
existto
govern
the
use
offuelinvehicles
andallinstancesof
disbursem
entto
vehiclesarerecorded
.
Onlyvehicles,assets(i.e.,storage
tanks,gen
erators),and
employees
program
med
inGasBoycanacquirefueland
thesystem
automaticallyrecordseveryinstance
of
disbursem
ent.
Exceptforvehicles2005andolder,fuelis
onlydispen
sedwiththeexactcombinationofthevehicle
datareader,fuelring,andtheem
ployee’sID
badge,all
program
med
inGasBoyto
allowtheem
ployeeto
dispen
sefuel.Datafor2005andolder
vehiclesis
capturedbythedrivermanuallyenteringthemileagein
theGasBoycontroller.
However,w
hile
therearesufficientandreliable
mechanismsto
capture
disbursem
entdata,thereareno
clearlydefined
managem
entreportsto
allowcontinuous
monitoringandcontroloffuelusage.
Recommendation15
(a)Assoonas
possible,developstanding
managem
entreports(based
ondefined
metrics)to
allowadeq
uatemonitoring,tren
danalysis,andcontroloffuelusage.
(b)Establishmechanisms,tren
danalysis,and
metrics
tomonitortheaccuracy
ofthemileage
manuallyen
teredbythedriverforvehicles
2005andolder.
(a &
b) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as
nece
ssar
y pe
r CM
’s p
ropo
sed
Budg
et in
ord
er
to m
eet t
he a
mbi
tious
goa
ls a
nd o
bjec
tives
ou
tline
d in
this
doc
umen
t.
Fleet Manager
C
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
23
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
22
TheCitymonitors
FASTER
dataonfuel
consumptionper
vehicleto
ensure
consumptionstays
withinreasonable
levelsandreduce
the
risk
ofloss.
Curren
tly,fuelconsumptionismonitoredat
asummary
leveloftotalfueldisbursed;d
etailedconsumptionby
vehicleisnotmonitored.Sofarvehicleshavebeen
program
med
inFA
STER
onlywithbasicinform
ationsuch
asassetnumber,userdep
artm
ent,makeandmodel.
Detailedusage
param
eterssuch
asvehiclefuelcapacity,
designateddriver,typeoffuel,m
axim
um
fuel
disbursem
entam
ount,averageusage,etc.havenotyet
beenprogram
med
.
Fleetexpectsto
haveacomplete
record
ofallveh
iclesby
theen
dofthecalendar
year.U
ntilthisiscompleted,
inform
ationto
optimallycontrolfuelconsumption
cannotbegenerated
.Fleetisalso
intheprocessof
manuallyaddingafeature
toeveryvehicle(2005and
older)that
does
nothaveadatareader
that
forces
the
manualentryofthemileage.Untilthisisdone,
employees
cangetfuelwithoutenteringthemileage.
Managemen
tplansto
produce
detailedconsumption
reportsinthenearfuture.
Recommendation16
Assoonas
possible,program
FASTER
with
complete
assetinform
ationto
allowad
equate
monitoringandcontroloffuelusage.M
onitoring
reportsshouldaddressinternaltransfers(seeIC
#23),generators’fuelusage
(seeIC
#25),golfcarts
fuelusage
(seeIC
#26),andportablegas
containers(seeIC
#27).
Inform
ationto
bemonitoredcanincludefuel
usage
byvehicleandbydriver,milespergallon
per
vehicle,“user”dep
artm
ent,timeperiod,
odometer
inform
ation;fuelcostper
vehicle
compared
tovehicleage.
Veh
icleswithunusual
readings
shouldbeflaggedforfollow.
The
Flee
t Div
isio
n is
cur
rent
ly e
valu
atin
g th
e pr
oces
s. Fu
ll im
plem
enta
tion
shou
ld ta
ke p
lace
w
ithin
the
next
12
mon
ths.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es o
utlin
ed in
th
is d
ocum
ent.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es
outli
ned
in th
is d
ocum
ent.
Fleet Manager
C C B
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
24
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
23
Controlsexistto
accuratelytrackfuel
duringinternal
transfersintanker
trucks.
TheCityusesthetankertrucks(oneforeach
typeof
fuel)to
internallytransfer
fuelfrom
thestorage
tanks
tothepumpslocatedat
each
fire
station(5),to
certain
generators,andto
thegolfcourseto
replenishthegolf
cars.Monthly,A
ccountingagrees
thetransfersas
part
ofthetotalreconciliationoftotalvolumeavailablein
GasBoyandJDE.
While
thetankertrucksareeq
uippedwithGasBoy
equipmen
t,thissystem
was
notfully
functionalat
the
timeofthisprojectandAccountingwas
havingdifficulty
gatheringfueltransfer
data.Managem
entwas
working
oncorrectingtheissues.
Recommendation17
(a)Resolvetheissues
relatedto
tankertruck
GasBoyeq
uipmen
tas
soonas
possible.
(b)Developstandardreportsto
continually
monitorinternalfueltransfers.
Com
plet
ed
Fleet Manager
24
GPStracking(orother
features)isinplace
fortheinternal
distributiontrucks.
Trackingdatais
continually
monitored.
TheCitydoes
notuse
GPStrackingfortheinternal
distributiontrucks.
None.
25
Adeq
uatecontrols
existto
govern
the
use
offuelinnon
vehicleeq
uipmen
t,such
asgenerators.
Gen
eratorsareeq
uippedwithGasBoy
Recommendation18
Developstandardreportsto
continuallymonitor
fuelused,andrelatedtrends/metrics,inCity
generators.
Faci
litie
s Man
agem
ent r
espo
nse:
All
City
ge
nera
tors
are
exe
rcis
ed re
gula
rly
and
fuel
leve
ls
are
reco
rded
mon
thly
.
FacilitiesManagement
05/21/2014
26
TheCitytracks
individualgolfcart
fuelusage.
Golfcartfuelusage
istrackedthrough
gasrings
installed
ineverygolfcart.
Recommendation19
Developstandardreportsto
continuallymonitor
fuelused,andrelatedtrends/metrics,inCitygolf
carts.
Flee
t will
revi
ew th
e fe
asib
ility
of t
his r
eque
st. G
olf
cart
s and
oth
er sm
all e
quip
men
t are
com
mon
ly
equi
pped
with
pla
stic
fuel
tank
s. It
is v
ery
diffi
cult
to m
ount
the
Gas
Boy
fuel
ring
to th
is ty
pe o
f eq
uipm
ent.
Fleet Manager
B
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
25
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
27
Recordsforfuel
dispen
sedthrough
portablecontainers
(gas
cans)are
maintainedand
disbursem
entcontrols
areadeq
uate.
Each
operatingdep
artm
entisassigned
threedifferent
assetnumbers,oneforeachfueltype.Multipleportable
containers(gas
cans)aregrouped
together
andassigned
oneassetnumber.Theindividualfillingthecontainers
musttypeintheassetnumber
intheGasBoycontroller
locatedat
thepumpbefore
itwilldispen
sefuel. There
isarestrictiononthetotalgallonsdispen
sedandthefuel
typedispen
sedbased
ontheassetnumber.
While
dataonthetotalgallonsdispen
sedistracked
withinthesystem
,therearenostandingreportsto
continuallytrackthisinform
ation.
Recommendation20
Improve
controlsondisbursem
entsto
gascansby
developingstandardmonitoringreportsforthese
assets.Set
alim
itto
thenumber
ofgallonsan
“asset”canuse
inamonth/w
eek/day
forthe
averageconsumptionusage.U
sehistoricdata
analyses
tomakethisdeterm
ination.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es
outli
ned
in th
is d
ocum
ent.
Fleet Manager
B
28
TheCitymaintainsa
singlelistofassets,
andthereisa
consisten
tprocessfor
addingassetsto
the
existingdatabases.
While
JDEisthesystem
ofrecord
forCityassets,
indep
endentassetdatabases
also
existinboth
FASTER
andGasBoy.Since
thethreesystem
sarenotintegrated
,assetshaveto
beadded
orremovedthrough
indep
endentprocesses.
TheFinance
Accountantisresponsibleforaddingand
retiringassetsfrom
JDE.
TheFleet
Superintenden
tis
responsibleforaddingandretiringassetsfrom
FASTER
andGasBoyuponnotificationfrom
theFinance
Accountant.
Theassetsinthethreedatabases
havenotbeen
reconciledsince
FASTER
’sinceptioninOctober
2012.
Accordingto
staff,discrep
ancies
existbetweenthethree
databases.
Recommendation21
(a)Utilizeadataanalysistoolsuch
asIDEA
toiden
tifydiscrep
ancies
betweentheJDE,
FASTER
andGasBoyassetdatabases.U
seresultsto
correctdatabases,oraddress
reconciliationdiscrepancies.
(b)Developaform
alprocedure
toconcurrently
inputnew
assetsandremove
oldassetsfrom
GasBoyandFA
STER
immediatelyafterthey
are
updatedinJDEto
ensure
thedatabases
maintainthesameinform
ation.
(a) F
leet
is c
urre
ntly
con
duct
ing
a ha
nds-
on re
view
of
eve
ry a
sset
with
in th
e ci
ty.
(b.)
This
pro
cess
will
be
deve
lope
d af
ter t
he
adm
inis
trat
ive
secr
etar
y po
sitio
n is
fille
d.
Fleet Manager
B B
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
26
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
VEN
DORPAYMEN
TPROCESSING
29
Purchasepricesand
quantities
received
areverified
before
paymen
tisapproved.
Priorto
receivingthedeliveryinJDEandinGasBoy,the
FleetSuperintendentverifies
theprice
established
by
thevendorbyreview
ingthePOpricingsheetcreatedby
theAccountCoordinatorusingDTN
FastRacks
prices.
FleetSuperintendentalso
verifies
amountsordered
and
received
bycomparingthePOwiththevendorand
GasBoyreceipts.
None.
30
Inform
ationrequired
toprocessinvoices
iscomplete,accurate
andauthorized.
Priorto
enteringinvoices
into
JDE,theAccount
Coordinatorperform
sathreeway
match
ofinvoice,PO
anddeliveryreceipts.Additionally,A
Pspotchecks
invoicetransactionslookingbyfordifferencesbetween
what
was
received
andinvoiced
priorto
postingthe
payablesto
thegeneralledger.
None.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
27
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
FUEL
COST
ALLOCATION
31
Proceduresarein
place
toen
sure
that
fuelcostsare
accuratelyandtimely
allocated(charged
back)to
user
dep
artm
ents.
Monthly,theAccountingDep
artm
entextracts
consolidated
disbursem
entvolumeinform
ationfrom
GasBoyandsummarizes
theinform
ationbybusiness
unit(userdepartm
ents).To
talsarethenposted
manuallyto
JDEbutonlyaftertheFleetSuperintendent
confirm
sthat
theam
ountsarethesameas
FASTER
’stotaldisbursem
entsforthemonth.PostinginJDE
consistsofdebitsto
bebusinessunitsandcreditsto
the
inventory
oftotalgallonsusedforthemonth.
JDEcalculatescostbased
ontheweightedaverageofall
thefueldeliveriespaidduringthemonth,inform
ation
that
iscapturedwhen
thedeliveryisreceived
inJDE.
Thekeyto
timelyandaccurate
fuelcostallocationisto
ensure
that
Fleetreceives
fuelpromptlyinJDE,andthat
invoices
arealso
promptlyprocessed
andsubmittedto
AP.
SeeRecommen
dation5,above.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
28
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
32
Fuelpurchases
are
periodically
reconciledto
the
costsallocatedto
user
dep
artm
ents.
Differencespromptly
researched
and
clarified.
Fleetmanagemen
tisdecentralizedandfuelmonitoring
practices
may
notbeconsisten
tam
onguser
dep
artm
ents.Curren
tly,departm
entsdonothaveaccess
toFA
STER
;also,therearenostandingperiodicreports
availableto
userdep
artm
entsto
monitorfuelusage
data
such
asfuelusage
byvehicleandbydriver,fuelusage
tren
ds,comparisonto
previousyears,andcost
comparisons.
Dep
artm
entsdoreceivemonthlycostallocation
inform
ation;however,since
dep
artm
entsdonothave
accessto
FASTER
,they
donothavethemeansto
comparetheallocationsmadebyAccountingto
FASTER
records.
Recommendation22
Provideuserdep
artm
entsview
ingaccess
toFA
STER
.Developstandingutilizationand
exceptionreportsanddevelopform
alprocedures
foruserdep
artm
entsto
accessthose
reportsand
review
keydatato
iden
tifyanomalies,anddiscuss
relevantfindings
withFleet.Th
iswillallowFleet
customersto
track,monitorandmanagefuelcosts
bylookingat
reportsthat
showutilization,fuel
consumption,billingrecordsandwork
orders.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es
outli
ned
in th
is d
ocum
ent. .
Fleet Manager
C
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
29
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
33
Taxreim
bursem
ent
returnsforcityvehicle
consumptionare
prepared
and
submittedtimelyto
Florida'sDep
artm
ent
ofReven
ueinatimely
manner.
Onamonthlybasis,theCityshouldrequesta
reim
bursementfrom
theStateofFloridaontaxespaid
forpurchases
ofdieselandunleaded
fuel.
Toobtainallpossiblerevenue,allfuelprocuremen
tsneedto
beincludedinthemonthlyfueltaxreturn.To
achieve
this,allfueltransactionsforthemonth
needto
beinJDEandGasBoynolaterthan
thefirstweekofthe
followingmonth.O
therwise,an
amendedreturn
has
tobefiled,w
hichcausesinefficien
cy.Accordingto
AccountsPayableManager,taxreim
bursem
ent
reportingwas
beh
indas
ofNovember
26andthestate
has
contactedtheCitytw
iceto
followup.
SeeRecommen
dation5,above.
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
30
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
DATA
BASE
ANDSYSTEM
SECURITY
34
Changesto
the
GasBoysystem
databases
are
properlyauthorized.
TheCity’sInform
ationTechnology
Services
(ITS)
dep
artm
enthas
aform
alprocedure
(Procedure
No.IT
SS04)to
govern
changesto
databases
andapplications.
AllchangesmustberequestedinadocumentedRequest
forChange
form
,followthemultilevelapprovalprocess,
andbemanaged
bytheChange
Advisory
Board.
Changesto
GasBoyaregoverned
bythispolicy.
Ofnote
isthat
therewere
certainissues
withthe
selectionandim
plemen
tationofGasBoywhereb
ytheprocesswas
notsupported
byareview
committeeoraclear/defined
evaluationand
selectionprocess.Additionally,w
hile
ITS
participated
inthedraftingofthesystem
requirem
ents,ITS
had
limited
involvem
entinthe
evaluationandselectionoftheapplication.
Recommendation23
Goingforw
ard,sen
iorCitymanagem
entshould
ensure
that
softwareselectionand
implemen
tationbedirectedbyareview
committeeoraform
alselectionprocessthat
involves
keystakeh
olders,includingITS,startingat
theearlystages.Such
processshouldinclude
form
altrackingofrisksandissues
throughoutthe
entire
process.
Agre
e
35
Proper
mechanisms
areinplace
for
establishingGasBoy
system
users.
TheCityhas
aform
alprocedure
(Procedure
No.IT
DS5.3
01)to
govern
useraccessrights.A
nITSNew
User/Change
UserProfileform
isrequired
tobe
completedbythehiringdepartm
entandsubmittedto
ITSforthesetupofthenetw
ork
andapplicationaccess.
AdministrationofGasBoyusers’does
notfollowthis
policybecause
theFleetDep
artm
entan
dnotITSis
establishingGasBoyusers.
Recommendation24
Transfer
GasBoyuseraccountadministration
responsibility
from
Fleet
toITS.
ITS
Resp
onse
: We
impl
emen
ted
the
late
st v
ersi
on o
f G
asBo
y –
vers
ion
6.4.
46 –
in J
une.
Thi
s is A
ctiv
e D
irec
tory
com
plia
nt. T
his h
as n
ow e
nabl
ed u
s to
build
AD
gro
ups f
or th
e us
er b
ase
defin
ing
wha
t th
ey c
an d
o in
the
syst
em. S
yste
m a
dmin
istr
atio
n is
now
hand
led
by F
leet
send
ing
requ
ests
to th
e IT
S H
elp
Des
k .
ITS
6/20/2014
IV.
FUEL
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTER
NALCONTROLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
PriorityDefinition
s:A=With
in6mon
ths
B=With
in1year
C=With
in2years
31
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Managem
entResponse
ResponsibleParty
ForecastCompletion
36
Anestablished
back
upprocessisinplace
forthedatabases
topreventunwanted
lossofinform
ation
dueto
deletionor
corruptionofdata.
TheCityhas
aform
alprocedure
(Procedure
No.IT
DS11.5
001)to
govern
dataandprogram
backups.
Incremen
talbackupsareperform
eddaily,andafull
backupisperform
edweekly.Copiesofthefullbackup
arestoredinan
offsite
storage
facility.
Backupsof
GasBoydatabases
aregoverned
bythispolicy.
None.
37
Appropriate
mechanismsarein
place
toen
sure
the
integrityofGasBoy
historicaldata.
TheCity’scurren
toffboardingpolicyrequires
applicationadministratorsto
remove
theuser’saccess
rightsfrom
thesystem
,notto
deletetheiraccount;
therefore,retainingthehistoricaldataassociated
witha
user.
GasBoyisgoverned
bythispolicy.
Recommendation25
Continueto
work
inconjunctionwithITSon
maxim
izingtheuse
ofcontrolm
echanisms
availableinGasBoyto
ensure
theintegrityof
historicaldata.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es o
utlin
ed in
th
is d
ocum
ent.
Fleet Manager
C/
38
Accessto
GasBoyis
controlledthrough
theuse
ofauser
nam
eandpassw
ord.
GasBoy’spassw
ord
configurationsarepredefined
within
theapplication.TheCityhas
theability
tochange
or
altertheseconfigurationsandthecurren
tconfigurations
alignwiththeCity’sPassw
ord
Policy(PolicyNo.ITDS5.3
02).
None.
39
TheCityhas
maintenance
contractsfortheir
fuelmanagemen
tsystem
sto
ensure
continuityofvendor
supportandreceive
future
upgrades
asthey
become
available.
TheCityhas
anannualmaintenance
contractthat
covers
vendorsupport;clausesregardingfuture
upgrades
however
arenoteviden
twithinthecontract.
Recommendation26
Totheextentpractical,ensure
theGasBoy
contractaddresses
availability
andupdateof
future
upgrades
toconfirm
supportand
functionalityareupto
date.
ITS
resp
onse
:The
Gilb
arco
/Gas
Boy
mai
nten
ance
ar
rang
emen
t pro
vide
s rel
ease
of a
ll G
asBo
y re
leas
es. W
e ju
st u
pgra
ded
to th
e AD
com
plia
nt
vers
ion.
ITS
5/21/2014
32
V. FUEL MANAGEMENT FLOWCHARTS
FLOWCHART A: FUEL ORDERING, RECEIVING AND PREPARATION FOR PAYMENT FLOWCHART B: FUEL COST ALLOCATION AND INVENTORY RECONCILIATION
Flowchart A: Fuel Ordering, Receiving and Preparation for Payment
Accounts PayableFleet Account Coordinator
Fleet SuperintendentDesignated Fuel
Manager
Prepares fuel order in Excel or
GasBoy based on GasBoy tank
inventory readings
Reviews order, adjusting to
ensure it meets contract stipulation
Creates delivery order in GasBoy
Receives delivery order email
Obtains vendor delivery receipt for every storage tank
that is filled and retrieves Veeder Root (GasBoy)
receipts available
Receives delivery in JDE against PO
Compares vendor delivery receipt to GasBoy receipt
Performs 3-way match of invoice, PO and delivery
receipt
Enters invoice in JDE to enable
payment
Reviews JV report and related
documentation for proper fund coding
and overall accuracy
Resolves any discrepancies with
Fleet
AP Supervisor spot checks JV
report transactions for differences
between what was received and
invoiced
AP Supervisor approves payment
by posting transaction (JV) to
AP in the JDE general ledger
End
Submits receipts to Fleet
Superintendent
Submits GasBoy email delivery
order to vendor, copy to Account Coordinator and
others
Upon vendor
fuel delivery
Enters PO information in
GasBoy against delivery order (2)
Reconciles delivery receipts
with PO information and validates price
calculation
Upon invoice receipt
Creates PO in JDE (2)
Calculates fuel order cost using
the Pricing Worksheet (Excel) and the daily DTN FastRack Average
Prices
Prints and saves PO, delivery order, Pricing worksheet daily pricing info in a file
Resolves any discrepancies
Saves PO and receipts in a file
a
a
Resolves any discrepancies
Produces Journal Voucher (JV)
report in JDE and submits to AP with
support
Payment process
1. Update AR #24 to reflect current fuel management procedures. Critically, procedures should address the timely entry of transactions in all systems that support fuel management through the implementation of specific time entry standards.
2. Track and periodically analyze fuel orders that exceeded contract stipulation in terms of number of allowed weekly deliveries. 3. Leverage new Fleet Manager and the Account Coordinator for better segregation of approval, ordering and receiving duties. 4. Benchmark the Fleet staffing levels against comparable jurisdictions. Evaluate cost-effectiveness of in-house fuel transfer operation.12(a) Develop a procedure that addresses prompt creation of POs in JDE and their entry into GasBoy12(b) Shift the responsibility of accessing to the DTN FastRacks Average prices information form AP to the Fleet Account Coordinator.13. Formalize the comparison of the vendor's delivery receipts to Veeder Root (GasBoy)21. Identify discrepancies between the JDE, FASTER and GasBoy asset databases and correct databases based on results.
1 4 22
Selected recommendations for improvement as presented in Exhibit A.1, Fuel Management Internal Control Documentation
Start
13
2
3
12b
12a
12a
33
Flowchart B: Fuel Cost Allocations and Inventory Reconciliations
Business UnitsFleet SuperintendentFinance Dept.
Accounting ManagerFinance Dept.
Accountant
Obtains GasBoy monthly export on fuel disbursement
detail
Summarizes by business unit and
fuel type and exports into Excel
Prepares summary journal
entry
Post debits and credits to the JDE
general ledger
Agrees the total monthly volume
available in GasBoy to the total volume available in JDE
Compare fuel cost allocation to
FASTER records for the month
End
Verifies that all fuel for the month has been received
in both GasBoy and JDE
Agrees summary information to FASTER total
disbursements for the month
Checks JDE fuel levels to make sure they are
sufficient to accept fuel credit
(disbursement)
Submits GasBoy/JDE reconciliation to Fleet Spdt. and
Fleet Manager
Agrees the total gallons in GasBoy/
JDE to the total gallons disbursed
in FASTER
Acknowledges receipt
Sends monthly cost allocation report to Fleet
Spdt. and Mngr.
End
Reconciliation
Cost Allocation
Start
Start
Start
Receives GasBoy/FASTER interface
report
Validates correctness of
transactions and investigates
discrepancies
6. Especially until the fuel management procedures consolidate, perform reconciliations weekly or bi-weekly.7. As needed, develop procedures for managing interface transmission logs with description of common errors and resolution actions.15. As soon as possible, develop detailed management reports to allow adequate monitoring and control of fuel usage.16. As soon as possible, program FASTER with complete asset information to allow adequate monitoring and control of fuel usage. 17. Resolve the issues related to tanker truck GasBoy equipment. Develop standard reports to continually monitor internal fuel transfers.22. Provide user departments viewing access to FASTER to allow validation of fuel usage and costs.
Selected recommendations for improvement as presented in Exhibit A.1, Fuel Management Internal Control Documentation
Provides sign-off (email) confirming
reconciliation
Sends monthly report to business
units’ Account Coordinators
Verifies physical inventory, verifies all
transactions in GasBoy, and gives okay to
Finance to reconcile
End
34
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
35
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
GEN
ERAL
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd o
bjec
tives
ou
tline
d in
this
doc
umen
t.
1TheCityhas
documented
policiesand
proceduresforall
partsmanagemen
trelatedprocesses.
Nowritten
policiesandproceduresexistregarding
partsmanagemen
t.Recommendation1
Developform
alpoliciesan
dproceduresforparts
managem
entto
covertopicssuch
as:
Fleetstaffrolesandresponsibilities
Partsselectionandauthorization
Partandsupplierquality
Orderingandreceipt
Timelyprocessingoftransactionsinto
the
pertinentsystem
s
Part
s sel
ectio
n, p
art a
nd su
pplie
r qua
lity
and
orde
ring
an
d re
ceip
t are
bei
ng h
andl
ed th
roug
h th
e ci
ty's
outs
ourc
ed re
pair
par
ts v
endo
r. Th
e cu
rren
t NAP
A co
ntra
ct e
xpir
es in
Dec
embe
r of 2
014.
The
flee
t div
isio
n is
cur
rent
ly w
orki
ng o
n a
new
RFP
for t
he c
ity's
repa
ir
part
s ope
ratio
n.
Fleet Manager
C
2Partsorderingis
centralized
.PartsorderingiscentralizedintheFleetDep
artm
ent.
Thispolicyfostersaccountability
andpromotes
economiesofscale.
Atpresenthowever,thereisnomechanism
tostopor
preventuserdep
artm
entsfrom
orderingpartsand
services
directlyandnotthrough
Fleet.W
hen
this
happen
s,norecord
iscreatedofrepaircosts,
negativelyim
pactingfleetmanagem
ent,
standardizationandcosts.
Recommendation2
Developapolicythat
addresses
centralized
procuremen
tofpartsintheFleetDep
artm
ent,
anddesignates
Fleetas
thesingleauthorized
dep
artm
entto
purchaseparts.Continually
communicateto
userdep
artm
entsthe
importance
ofprocuringonlythrough
Fleet.
Agre
e
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
36
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
3TheCitylocates
partsat
thelowest
reasonablecost.
TheCityhas
apartssupplycontractwithNAPAwho
operates
anOnSite
Store
andprovides
personnelto
man
thestore.N
APAstocksitemsas
requestedbythe
Cityanddeliversfrom
NAPAwareh
ousesoffsite
when
item
sarenotstocked
onsite.
TheCitypurchases
allpartsfrom
NAPAexceptfor
occasionalinstanceswheretheCityobtainsabetter
price
withdirectpurchasesfrom
vendors(i.e.,state
contracts).
NAPAhas
theauthority
toprocure
partsthat
NAPA
does
notstock,includingspecialtyparts,ontheCity’s
beh
alf.Inthiscase,N
APAresearches
vendorsand
prices,selectingtheoptionthat
mostbenefitstheCity.
NAPAaddsamarkupto
thethirdparty
vendorprices
when
itprovides
thisservice.
While
sourcingthrough
asinglevendoren
sures
contractuallycontrolledcostsandfavorseconomiesof
scale,thereisnotaform
alprocedure
toreview
NAPA’sselectionofthirdparty
vendorsinthose
cases
whereNAPAdoes
notstock
apart.
Critically,theNAPAsystem
does
notcarryasset
inform
ationandtherefore
theNAPArepresentative
does
nothavetheinform
ationneed
edto
makethe
bestrecommen
dationto
theCitybased
onrepairand
partsusage
history.A
dditionally,andas
aresultofthis
limitation,theCityisnotableto
take
fulladvantage
of
existingwarranties.
Recommendation3
(a)Developaprocedure
tomonitorand
periodicallyanalyzetheprocurementactivity
ofnonNAPAstocked
items.
Thebasiscan
beacertainthresholdam
ount,typeofpart,
etc.Wherever
practical,requestNAPAto
stock
additionalpartsto
avoidmarkup
costs.
(b)IncoordinationwithITS,developthemeans
toprovidetheNAPArepresentative
access
toassetrepairandpartusage
history.
(c)IncoordinationwithNAPA,developa
procedure
totack
warranties
andensure
that
theCitymaxim
izes
theiruse.
The
city
’s re
pair
par
ts c
ontr
act w
ith N
APA
expi
res i
n D
ecem
ber o
f 201
4. T
he n
ew c
ontr
act w
ill a
ddre
ss so
me
of th
ese
issu
es
Com
plet
e- N
apa
curr
ently
has
acc
ess t
o Fa
ster
.
The
city
’s re
pair
par
ts c
ontr
act w
ith N
APA
expi
res i
n D
ecem
ber o
f 201
4. T
he n
ew c
ontr
act w
ill a
ddre
ss so
me
of th
ese
issu
es.
Fleet Manager Fleet Manager Fleet Manager
C C C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
37
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
4Costofparts
received
are
validated
toen
sure
compliance
with
curren
tcontract.
Accordingto
theNAPAcontract,pricingsetbyNAPAis
tobereview
edwiththeCityandupdated
everysix
months(M
ay1standNovember
1stofeachyear).Th
eCity’sreview
processhowever,isnoteviden
t.Curren
tly,thereview
islim
ited
totheAccount
Coordinator’scomparisontheam
ountchargedand
parttypeontheFA
STER
Work
Order
(WO)withwhat
NAPAeven
tuallycharged(seeIC#17).
Recommendation4
ConductNAPAprice
evaluationseverysix
monthsas
described
intheNAPAcontract,to
ensure
theCityisgettingthebestpossibleprices
andservice.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
The
city
’s re
pair
par
ts c
ontr
act w
ith N
APA
expi
res i
n D
ecem
ber o
f 201
4. T
he n
ew c
ontr
act w
ill a
ddre
ss so
me
of th
ese
issu
es.
Fleet Manager
C
5Partsinventory
managem
entis
supported
byclear
policies.
TheFleetdep
artm
ent’sgeneralruleisto
order
parts
ondem
and,andnotkeep
inventory,excep
tforfluids.
Thisrulehowever,isnotform
allydocumen
ted.Also,
theCityisconsideringtheelim
inationoffluid
inventories.
Recommendation5
Developapolicyto
address
zero
inventories
of
parts,aswellasinventory
practices
forfluids.
The
city
’s re
pair
par
ts c
ontr
act w
ith N
APA
expi
res i
n D
ecem
ber o
f 201
4. T
he n
ew c
ontr
act w
ill a
ddre
ss so
me
of th
ese
issu
es.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
38
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
FINANCIALDATA
INTEGRITYANDRELIABILITY
6Computerized
system
sareinplace
toaccurately
capture
parts
acquisitionand
disbursem
entdata
intheCity’sgeneral
ledger.
TheCityusestheFA
STER
AssetSolutions(FASTER
)computersoftwareto
supportfleetmaintenance
and
repair.Th
esystem
usesaWOsystem
totrackallparts
andlaborassociated
tovehicle/asset
repairand
maintenance.Purchaseorders(POs)canonlybe
createdintheNAPAsystem
withaFA
STER
WO.N
APA
provides
aninterfacebetweentheNAPAsystem
and
FASTER
totransfer
thepartsorderingtransactionson
adailybasis.
FASTER
isconfiguredto
trackallpartsandlaborused
ineveryvehicle.Eachvehiclehas
anassetnumber
assigned
inFA
STER
,andassetnumbersareassociated
totheCitydepartm
entthat
ownstheasset.WOscan
onlybecreatedforavalid
assetnumber.
FASTER
does
notinterfacewiththeCity’sfinancial
managem
entsystem
,JDEd
wards(JDE),andthus,
accountinginform
ationismanuallyen
teredinJDE
(seeIC#7).
Controlsareinplace
toen
sure
accuracy
ofacquisition
anddisbursem
entdata.Timelinessofdataen
try
however,needsto
bestrengthen
edto
ensure
accurate
reportingas
wellassavings
(discountsfor
promptpaymen
t,taxrefunds,etc.)
Recommendation6
Makethetimelyen
tryoftransactionsinto
FASTER
andJDEapriority.D
evelopprocedures
includingtimestandardsto
ensure
that
all
transactionsarepromptlyrecorded
inthe
system
s.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
The
city
’s re
pair
par
ts c
ontr
act w
ith N
APA
expi
res i
n D
ecem
ber o
f 201
4. T
he n
ew c
ontr
act w
ill a
ddre
ss so
me
of th
ese
issu
es.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
39
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
7Manualprocesses,
especially
relatedto
interfaces
betw
een
theexisting
system
s,are
limited.When
necessary,thereare
sufficientchecks
andbalancesto
ensure
integrityof
thedata.
Thecurren
tprocessfortransferringparts’accounting
andusage
inform
ationfrom
FASTER
toJDEismanual.
JDEdoes
notinterfacewithFA
STER
,nordoes
itallow
multipleinvoices
tobeuploaded
inonebatch.TheCity
processes
NAPAinvoices
bycombiningallinvoices
for
each
day
asregistered
byFA
STER
,anden
teringadaily
lumpsum
invoiceinto
JDE,alongwithasinglePDFfile
oftheinvoicesattached
tothesummary.SeeIC
#17
and#20.
SeeRecommen
dation6,above.
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
40
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
8Proceduresarein
place
toreviewthe
interface’sdaily
transm
issionfiles(s)
toverifythat
the
datawas
transm
itted
accurately.
FASTER
’s“PaulBunyon”moduleprovides
logs
which
includeanyNAPA/FASTER
interfacetransm
ission
errorsas
wellasother
logginginform
ation.At
present,ITSisgettingthetransm
issionem
ailsand
review
ingthelogs.H
owever,ITS
willbetransitioning
thisroleto
thenew
FleetAccountCoordinatorwithin
theshortterm
.
AsofJune30,2014,ITS
transitioned
the
responsibility
ofreview
ingthetransm
issionerror
logs
toFleet.Additionally,Fleet
has
written
specificproceduresto
resolveNAPA/FASTER
interfaceissues
uponreceiptoferrornotification
emails.
Recommendation7
IncoordinationwithITS,developform
alproceduresformanaginginterfacetransm
ission
logs,alongwithadescriptionofcommonerrors
andcourseofactionwhenanomaliesare
detected,includingnotificationto
theFleet
Manager.
Cus
tom
repo
rts w
ill b
e ne
eded
to a
id in
mee
t thi
s re
quir
emen
t. Th
e fle
et d
ivis
ion
will
als
o ne
ed
addi
tiona
l sta
ffing
to p
erfo
rm th
is ta
sk.
ITS
resp
onse
7/29
/201
4: IT
S w
ill b
e m
eetin
g w
ith F
leet
Man
agem
ent
on 7
/30/
2014
to p
ropo
se th
at F
leet
pri
oriti
ze a
list
of
cust
om re
port
s nee
ded
whi
ch w
ill b
e bu
ilt b
y IT
S ut
ilizi
ng M
icro
soft
SQL
Rep
ortin
g Se
rvic
es –
whi
ch is
Fa
ster
’s n
ew st
anda
rd (v
ersu
s Cry
stal
Rep
orts
)
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
41
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
PARTS
DISBURSEMEN
TANDUSA
GETR
ACKING
9Costofparts,usage
tren
ds,previous
year
comparisons,
andother
essential
datatrackedby
vehicleare
consisten
tlyand
routinely
monitored.V
ehicles
withunusuallyhigh
costsareflaggedfor
followupto
reduce
therisk
offraud.
While
FASTER
has
sufficientreportingcapability,
curren
tly,there
arenostandardreportsto
continually
monitordata,usage
tren
ds,prioryear
comparisons,or
costcomparisonsneither
attheFleetdep
artm
ent
levelnorat
theuserdep
artm
entlevel.
Fleetmanagemen
tisdecentralizedandmonitoring
practices
may
notbeconsisten
tam
onguser
dep
artm
ents.Curren
tly,departm
entsdonothave
accessto
FASTER
;also,there
arenostandingperiodic
reportsavailableto
userdep
artm
entsto
monitorparts
usage
data,usage
tren
ds,comparisonto
previous
years,andcostcomparisons.
Recommendation8
(a)Developstandardutilizationandexception
reportsanddevelopform
alproceduresand
foruserdep
artm
entsto
accessthose
reports
andreview
keydatato
identifyanomalies.
Userdepartm
entsshoulddiscussrelevant
findings
withFleet.
(b)Inthefuture,consider
thepossibility
ofa
centralized
fleetmanagemen
toperationas
ameansto
increase
control,standardizationof
procedures,andsavings.
a) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as n
eces
sary
per
CM
’s
prop
osed
Bud
get i
n or
der t
o m
eet t
he a
mbi
tious
goa
ls
and
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
b) T
his r
ecom
men
datio
n is
cur
rent
ly u
nder
way
.
Fleet Manager Fleet Manager
C C
PARTS
ORDER
INGANDREC
EIVING
10
Partsselection
policiesare
adeq
uate.
Techniciansdecidewhichpartsareneeded
forthe
repairbased
ontheirdiagnosticresults.Technicians
consultwiththeFleet
Supervisoronlywhen
the
Techniciandeemstherepaircoststo
betoohighorit
isan
older
vehicle,m
arkedforretiremen
t;otherwise,
thereisnoapprovaloftheselectionsmadebythe
Techniciansbefore
theorderisplacedwithNAPA.
OnlySupervisorscanaccess
repaircosthistory
toassistwhen
consulted
andmakerepairdecisions.
Recommendation9
Strengthenthepartsselectionprocessbyhaving
Techniciansaccesshistory
repairandparts’data
asnecessary
(i.e.,afteracertainpartcost
threshold).
Form
alizeaprocedure
fortheFleet
Supervisorto
review
theTechnician’sdiagnostic
reportpriorto
placingpartordersbased
ona
predefined
dollarorquantity
threshold.
Can
be
acco
mpl
ishe
d w
hen
fleet
has
the
abili
ty to
de
velo
p cu
stom
repo
rts.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s ne
cess
ary
per C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet
the
ambi
tious
goa
ls a
nd o
bjec
tives
out
lined
in th
is
docu
men
t.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
42
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
11
Orderingoftires
andother
items
that
areinstalledon
multiplevehiclesis
supported
by
adeq
uate
procedures.
Curren
tly,Fleet
isnotableto
use
FASTER
toautomaticallytracktire
usage
byvehicle.Tires
are
ordered
inbatches
andindividualvehicleusage
isrecorded
inFA
STER
manually.
Recommendation10
Developaprocedure
forFA
STER
toautomaticallycapture
usage
oftiresbyvehicle.
Can
be
acco
mpl
ishe
d w
hen
fleet
as t
he a
bilit
y to
dev
elop
cu
stom
repo
rts.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry
per C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he
ambi
tious
goa
ls a
nd o
bjec
tives
out
lined
in th
is
docu
men
t.
Fleet Manager
C
12
Purchaseordersare
createdaccurately
andtimely.
Themajority
ofpurchaserequisitionsarecreated
withintheNAPAsystem
astheTechnicianscomplete
vehiclerepairs.TheCitycreatesPOsdirectlyonly
occasionally,inwhichcase
thePOprocessfollowsthe
regularapprovalw
orkflowas
supported
byJDE.
Once
thePOissubmittedto
thevendor,theAccount
Coordinatorcommunicates
withtheServiceWriter
whothenupdates
therelatedFA
STER
WOwiththePO
inform
ation.
ForNAPAprocuremen
ts,theFA
STER
WOrepresents
theCity’srequisition.Thepartisreceived
inFA
STER
when
theTechnicianreceives
theorder
anupdates
theWOinFA
STER
.
Recommendation11
Form
alizeproceduresforprocessingnonNAPA
procuremen
ts.Includeaprocedure
toplace
acopyofthenonNAPAPOinashared
drive
sotheServiceWritercanaccessitto
cross
check
withthepackingslipuponreceipt.
Proceduresshouldalso
includetimestandards
forreceivingnonNAPAprocurementsin
FASTER
.
The
curr
ent N
APA
cont
ract
exp
ires
in D
ecem
ber o
f 20
14. T
he fl
eet d
ivis
ion
is c
urre
ntly
wor
king
on
a ne
w
RFP
for t
he c
ity's
repa
ir p
arts
ope
ratio
n. T
he n
ew
cont
ract
will
add
ress
som
e of
thes
e is
sues
. Th
e fle
et m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as n
eces
sary
per
CM
’s p
ropo
sed
Budg
et in
ord
er to
mee
t the
am
bitio
us g
oals
and
ob
ject
ives
out
lined
in th
is d
ocum
ent.
Fleet Manager
C
13
Ordersareonly
placedintheNAPA
system
againstan
existingFA
STER
WO.
UponreceiptofaWO,theNAPArepresentative
verifies
that
WOcontainsallnecessary
inform
ation
includingassetnumber,techniciannumber,andpart
number(s).Atthat
point,theWOinform
ationis
enteredinto
theNAPAsystem
andtheorder
isprocessed
.
Recommendation12
Consider
replacingthemanualsubmittalof
WO’sto
NAPAwithautomatictransfersofWO
datafrom
FASTER
totheNAPAsystem
.This
couldim
prove
theaccuracy
ofthedataen
tered
into
theNAPAsystem
byelim
inatinghuman
key
punch
errors.
This
will
do
very
littl
e to
cor
rect
hum
an k
ey-p
unch
er
rors
. Som
eone
will
be
man
ually
ent
erin
g th
e da
ta in
to
FAST
ER b
efor
e th
e da
ta is
tran
sfer
red.
W
ill c
ontin
ue to
eva
luat
e.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
43
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
14
Purchase
requisitionsare
placedonlyfor
existingvendors
andtheCity
maintainsan
upto
datelistofall
possibleapproved
vendors.
NAPAprocesses
themajority
oftheCity’sparts’
procuremen
ts.TheCityonlyordersdirectly,usingthe
JDEPOprocessoccasionally.JDEdoes
notallow
employees
tocreate
arequisitionwithoutavendor
number.Newvendorsareinstructed
toform
ally
register
asanew
vendorthrough
theProcuremen
tDep
artm
ent.Editsto
themastervendorlistis
appropriatelyrestricted
totheProcuremen
tDep
artm
ent.
None.
15
Aprocessisinplace
toen
sure
that
parts
arereceived,
logged
,and
disbursed
correctly
totheTechnicians.
TheNAPApartorder
isreceived
inFA
STER
when
the
Technicianupdates
andcompletestheWOonce
the
partisinstalledandrepairhas
concluded
.While
the
Technicianssign
theNAPAinvoices
acknowledging
receiptofthepart,theprocessinnotdocumentedina
form
alpolicyorprocedure.
When
theServiceWriterreceives
nonNAPAparts,the
ServiceWriterinspectsthegoodsandmatches
topackingslip,stampsslipwithareceiptstamp.Then
the
ServiceWritermanuallyreceives
thepartinFA
STER
by
updatingtheWO,andsubmitspackingslipto
Account
Coordinatorto
processtherelatedinvoice.
This
processhowever,isnotdocumen
ted.
SeeRecommen
dations1and12,above.
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
44
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
16
Thereisadeq
uate
segregationof
duties
forparts
ordering,receiving
andpaymen
t.
Partsmanagemen
tforpartsordering,receivingand
paymen
tareproperlysegregated
.Req
uisitionofparts
isperform
edbytheTechnicianresponsibleforthe
repairthrough
aFA
STER
WO.TheNAPA
representative
placestheorder;w
hen
theproductis
received
,theTechniciansings
thereceipt,and
receives
inFA
STER
through
theupdateoftheWO.
Paymen
tisperform
edbyAccounting.
Rolesandresponsibilities
however,are
notform
ally
documented.
Recommendation13
Documen
tpartsmanagemen
troles,
responsibilities
andsegregationofduties
through
awritten
policy.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
45
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
VEN
DORPAYMEN
TPROCESSING
17
Allparts
related
invoices
arecross
checked
inorder
toverifythat
theCity
isreceivingallof
thepartsforwhich
itispaying.
Onanightlybasis,theNAPAsystem
willautomatically
sendafileto
FASTER
withallpartsthat
were
purchased
duringtheday,alongwiththe
correspondingWOinform
ation.Thefileis
automaticallysavedinashared
drive.
TheAccountsPayable(AP)Manager
retrievesthefile
andsubmitsto
theFleetAccountCoordinatorwho
then
cross
checks
allinvoices
inthereport,w
iththe
physicalinvoices
NAPAreceived
from
theNAPA
representative,aswellasthetotals.Th
en,the
AccountCoordinatoren
tersinJDEthelumpsum
total
oftheinvoicesforeach
day.FornonNAPAinvoices,
theAccountCoordinatorperform
sathreeway
match
ofinvoice,POanddeliveryreceiptspriorto
entering
into
JDE.
NAPAgrantsadiscountwhen
invoices
arepaidwithin
30daysbutperconversationwithAP,theCitymay
not
befully
benefittingfrom
thesediscounts.A
Palso
notedthat
theprocessforcorrectinginvoice
discrep
ancies
isnotefficien
twhichcausesalagwith
managing,trackingandclosingtheadjustmen
tsinJDE,
andultim
atelyim
pactsthemonthlyaccounting
process.
Onaweeklybasis,theAccountCoordinatorcreatesa
JournalVoucher
(JV)reportinJDEandsubmitsitto
AccountsPayable(AP),alongwithinvoices
andthe
dailyNAPAinterfacereports.
Recommendation14
(a)Developaprocedure
toen
sure
that
reconciliationofinvoices
withtheNAPA
interfacereportbecompleteddaily.Timely
entryisneeded
because
ofthelargevolume
ofinvoices
processed
daily.
(b)IncoordinationwithAP,developa
procedure
tocorrectinvoicediscrepancies
efficien
tlyandeffectively.
(c)IncoordinationwithAP,m
onitorwhether
NAPA’sdiscountforpromptpaymen
tis
beingrealized
.Establishagoalto
maxim
ize
allpossiblediscounts.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
The
Flee
t Div
isio
n is
initi
atin
g pe
riod
ic m
anua
l rev
iew
s an
d w
ill w
ork
with
IT to
fina
lize
the
auto
mat
ed p
roce
ss.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
46
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
18
Inform
ation
required
toprocess
invoices
iscomplete,accurate
andauthorized
priorto
postingto
thegeneralledger.
APClerksreview
theparts’JDEJV
reportforproper
codingandoverallaccuracy.Priorto
postingthe
payablesto
thegeneralledger,theAPSupervisorspot
checksinvoicetransactionslookingfordifferences
betweenwhat
was
receivedandinvoiced.
Akeystep
inthisarea
istheQA(qualityassurance)
carriedoutbytheFleet
ServiceWriterwhomonitors
completedwork
ordersinFA
STER
andproceed
sto
closingWOs,aftermakingsure
that
allven
dorrepairs
orservices
arecompletedandthat
allven
dorinvoices
tieto
thework
order.
Recommendation15
Form
alizetheWOcompletionqualityassurance
(QA)process
tomakesure
WOsareclosed
promptly.
The
fleet
div
isio
n w
ill n
eed
addi
tiona
l sta
ffing
to
perf
orm
this
task
. Rol
e of
a F
leet
Dat
a An
alys
t.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
47
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
PARTS
COST
ALLOCATION
19
TheCitymaintainsa
singlelistofvalid
assetnumbers,and
thereisaconsisten
tprocessforadding
assetsto
the
databases.
While
FASTER
istheofficialsystem
ofassetrecord
for
fleetmanagemen
t,assetnumbersalso
haveto
be
maintainedinJDE,theofficialsystem
ofassetrecord
forfinancialreportingbecause
thesetw
osystem
sdo
notinterface.
However,a
processforupdatingassets
inthetw
osystem
sisnotclearlydefined
andper
conversationswithstaff,theassetinform
ationwithin
thedatabases
may
notcurren
tlymatch.A
ssetsmay
existinonesystem
butnotinanother,w
hichcan
cause
inconsisten
treporting.
JDEandFA
STER
have
notbeen
reconciledsince
FASTER
’sinceptionin2012.
Recommendation16
(1)Utilizeadataanalysistoolsuch
asIDEA
toiden
tifydiscrep
ancies
betweenJDEan
dFA
STER
assetdatabases.U
seresultsto
make
correctionsas
needed.
(2)Developaform
alprocedure
toconcurrently
inputnew
assetsandremove
oldassetsfrom
FASTER
immed
iatelyafterthey
areupdated
inJDEto
ensure
thedatabases
maintainthe
sameinform
ation.
The
Flee
t Div
isio
n is
cur
rent
ly e
valu
atin
g th
e pr
oces
s. Fu
ll im
plem
enta
tion
shou
ld ta
ke p
lace
with
in th
e ne
xt
12 m
onth
s.
Flee
t adm
inis
trat
ive
secr
etar
y ro
le. E
mpl
oyee
has
bee
n hi
red
rece
ntly
trai
ning
und
erw
ay.
Fleet Manager Fleet Manager
B B
20
Proceduresarein
place
toen
sure
that
costofpartsare
properlyallocated
(chargedback)to
userdep
artm
ents.
Costallocationistheresponsibility
oftheAccounting
dep
artm
ent.
Onamonthlybasis,A
ccountingobtainsa
FASTER
summaryreportofpartsandlaborbyasset
andbydep
artm
ent.Accountingthen
prepares
adetailedbillingreportandsubmitsto
theFleet
Superintendentto
review
andapprove.Once
approved,A
ccountingprepares
journalen
triesforthe
dep
artm
entsandthen
theFinance
Dep
artm
ent
Manager
approvesthejournalen
triesbypostingthem
tothegeneralledger.
Recommendation17
EstablishatimestandardforAccounting’s
preparationofthebillingreportas
wellasforits
review
andapprovalbyFleet.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t.
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
48
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
21
Userdepartm
ents
validatethe
monthlyparts’cost
allocationby
reconcilingto
their
records.Differences
promptly
researched
and
clarified.
Accountingprepares
asummarymonthlycost
allocationreportandsubmitsto
Fleet,whointurn
provides
detailtouserdep
artm
entsforreview
and
reconciliationto
theirrecords.Curren
tlyhowever,
dep
artm
entsonlyreceiveapaper
copyoftheWOat
thetimeofservice,they
donothaveaccessto
FASTER
tofacilitatereview,andthereisnotaform
alprocess
fortheuserdep
artm
entsto
reconcilepartscost
allocationsto
theirWOrecords.
Recommendation18
(a)Provideuserdep
artm
entsview
ingaccess
toFA
STER
inorderto
obtaindetailed
inform
ationonthecostofthepartsan
dservices
perform
edontheirvehicles.
Developstandingutilizationandexception
reportsanddevelopform
alproceduresand
foruserdep
artm
entsto
accessthose
reports
andreview
keydatato
identifyanomalies,
anddiscussrelevantfindings
withFleet.
(b)Consider
developingaform
alprocedure
for
userdep
artm
entsto
reconcilecharge
backs
totheoriginalwork
orders.
(a &
b) T
he fl
eet m
anag
emen
t div
isio
n w
ill b
e re
stru
ctur
ing
and
addi
ng a
dditi
onal
staf
f as n
eces
sary
pe
r CM
’s p
ropo
sed
Budg
et in
ord
er to
mee
t the
am
bitio
us g
oals
and
obj
ectiv
es o
utlin
ed in
this
do
cum
ent.
Vi
ewin
g ac
cess
to F
aste
r will
do
very
littl
e to
mee
t thi
s re
quir
emen
t. C
usto
m re
port
s will
nee
d to
be
deve
lope
d to
mee
t thi
s req
uire
men
t.
The
fleet
man
agem
ent d
ivis
ion
will
be
rest
ruct
urin
g an
d ad
ding
add
ition
al st
aff a
s nec
essa
ry p
er C
M’s
pro
pose
d Bu
dget
in o
rder
to m
eet t
he a
mbi
tious
goa
ls a
nd
obje
ctiv
es o
utlin
ed in
this
doc
umen
t..
Fleet Manager
C
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
49
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
DATA
BASE
ANDSYSTEM
SECURITY
22
Changesto
the
FASTER
databases
areproperly
authorized.
TheCity’sInform
ationTechnology
Services
(ITS)
dep
artm
enthas
aform
alprocedure
(Procedure
No.IT
SS04)to
govern
changesto
databases
and
applications.Allchangesmustberequestedina
documentedReq
uestforChange
form
,followthe
multilevelapprovalprocess,andbemanaged
bythe
Change
Advisory
Board.Changesto
FASTER
are
governed
bythispolicy.
None.
23
Proper
mechanisms
areinplace
for
establishingFA
STER
users.
TheCityhas
aform
alprocedure
(Procedure
No.IT
DS5.3
01)to
govern
useraccessrights.A
nITSNew
User/Change
UserProfileform
isrequired
tobe
completedbythehiringdepartm
entandsubmittedto
ITSforthesetupofthenetw
ork
andapplication
access.A
nelectronicEm
ployeeSeparation/Transfer
Notice
form
isusedwhen
anem
ployeetransfers
dep
artm
entsorseparates
form
theCity.Human
Resources
andITSwillreceivean
electroniccopyof
thisform
from
theincumbentManagerandtake
the
appropriateaction.AdministrationofFA
STER
users’is
governed
bythispolicy.
None.
24
Anestablished
back
upprocessisin
place
forFA
STER
databases
topreventunwanted
lossofinform
ation
dueto
deletionor
corruptionofdata.
TheCityhas
aform
alprocedure
(Procedure
No.IT
DS11.5
001)to
govern
dataandprogram
backups.
Incremen
talbackupsareperform
eddaily,andafull
backupisperform
edweekly.Copiesofthefullbackup
arestoredinan
offsite
storage
facility.
Backupsof
FASTER
databases
isgoverned
bythispolicy.
None.
VI.
PARTS
ACQUISITION,D
ISBURSEMEN
TANDUSA
GEINTERNALCONTR
OLDOCUMEN
TATION,INCLU
DINGMANAGEM
ENTRESPONSE
Priority
Definitions:
A=Within6months
B=Within1year
C=Within2years
50
No.
ExistingControl
(InternalControl
Objective)
Description
RecommendationforIm
provement
Man
agem
entR
espo
nse
ResponsibleParty
ForecastCompletion
25
Appropriate
mechanismsarein
place
toen
sure
the
integrityand
preservationof
FASTER
historical
data.
TheCity’scurren
tpolicyforoffboardingrequires
applicationadministratorsto
remove
theuser’saccess
rightsfrom
thesystem
,notto
deletetheiraccount;
therefore,retainingthehistoricaldataassociated
with
auser.
FASTER
isgoverned
bythispolicy.
None.
26
Accessto
FASTER
iscontrolledthrough
theuse
ofauser
nam
eand
passw
ord.
FASTER
’spassw
ord
configurationsarepredefined
withintheapplication.TheCitydoes
nothavethe
ability
tochange
oraltertheseconfigurations.Th
ecurren
tconfigurationsdonotalignwiththeCity’s
Passw
ord
Policy(PolicyNo.ITDS5.3
02).
Recommendation19
TheCityshouldwork
withtheFA
STER
vendor
toim
plementpassw
ord
requirem
entsthat
align
withtheCity’spassw
ord
policy.
ITS
resp
onse
We
are
wor
king
with
Fas
ter t
o up
grad
e to
the
vers
ion
6.2.
26 b
y th
e en
d of
Aug
ust..
. W
e sh
ould
ther
efor
e be
ab
le to
reso
lve
this
issu
e fo
r Fas
ter w
hen
we
upgr
ade
the
end
in e
arly
Sep
tem
ber 2
014.
Gas
Boy
has j
ust i
ssue
d th
eir f
irst
AD
com
plia
nt v
ersi
on.
We
have
com
plet
ed th
e up
grad
e to
this
ver
sion
and
will
be
wor
king
with
Fle
et to
con
vert
all
acce
ss to
use
AD
via
lo
gin.
ITS
July 2014
Thisspace
leftblankintentionally.
51
VII. PARTS MANAGEMENT FLOWCHARTS
FLOWCHART C: PARTS ORDERING FLOWCHART D: PARTS RECEIVING FLOWCHART E: PARTS INVOICE PROCESSING FLOWCHART F: PARTS COST ALLOCATION
Flowchart C: Parts Ordering
Acct. Coordinator/Fleet Spdt.
In-House Supplier (NAPA)
TechnicianFleet
SupervisorService Writer
Receives from customer “Vehicle/
Small Engine Service Request” for vehicle to be
repaired
Start
Retrieves FASTER work
queue and assigns the WO to
Technicians
Creates a Work Order (WO) in
FASTER for the vehicle to be
repaired. Logs the vehicle mileage
Performs diagnostic testing
of vehicle and enter notes for
repairs required
Are parts required?
End (*)
Performs repair, documents labor
in the WO
Logs into FASTER and retrieves WO
(*) Controls for the accurate processing of labor costs were not part of this evaluation.
Creates parts request for the
repair in the WO
Prints WO and walks it over to “in-
house” parts supplier (NAPA)
Locates part within NAPA or with a non-NAPA vendor
NAPA places order (8)
Prepares purchase
requisition with support
Obtains Superintendent
approval
Creates PO in JDE
Creates order in NAPA system
To B,Flowchart
D
Submits PO to vendor
To A, Flowchart
D
a
a
No Yes
No
Yes
1 2 5 13 16 19
1. Develop formal policies and procedures for parts acquisition, disbursement and usage.2. Develop policy to designate Fleet as the single authorized department to purchase parts.3. Analyze NAPA procurements of non-NAPA stocked items. Provide NAPA access to repair history. Maximize the use of parts warranties.4. Evaluate NAPA prices as established in NAPA contract.5. Develop policy to address zero inventory of parts.9. Strengthen the parts selection process by vetting Technician’s selection based on pre-defined criteria.12. Replace manual submittal of work orders with automated transfers.13. Document parts personnel roles and responsibilities through written policies.16. Identify and correct discrepancies between the JDE, FASTER and GasBoy asset databases.19. Work with FASTER vendor to implement password requirements that align with City password policy.
Selected recommendations for improvement as presented in Exhibit B.1, Parts Management Internal Control Documentation
9
3 4
12
52
Flowchart D: Parts Receiving and Preparation for Payment
Service WriterTechnicianIn-House Supplier
(NAPA)
QA Process
Submits invoices in batches to
Account Coordinator 2-3 times per week
Submits packing slip to Account Coordinator.
To D,Flowchart
E
FASTER generates an
automatic email that notifies user department that vehicle is ready
To D,Flowchart
E
Obtains part
All costs tie to the WO?
B
No
End
Daily, identifies completed WOs in
FASTER
Follows up on pending notes such as vendor
repairs, and vendor invoices
To C,Flowchart
E
Yes
Scan invoice and packing slip, and
receives purchase in FASTER by updating WO
Closes the FASTER WO
Start
A
Supplies part and obtains Technician
signature acknowledging
receipt
Installs part on vehicle
Receives non-NAPA ordered
shipment, inspects goods and matches to
packing slip. Stamps packing
slip with ReceiptStamp (date, PO,receiver signature)
Customer picks up vehicle along with the printed copy of
the WO
Charges the part to WO in the
NAPA system and produces NAPA
invoice (1)
Receives part order in FASTER and completes
WO
10 11
15
6
6
6. Establish the timely entry of transactions into FASTER and JDE as a priority.10. Develop procedure to automatically capture tires’ usage by vehicle.11. Formalize procedures for processing non-NAPA procurements, including time standards for timely entry into the systems. Ensure Service Writer has a access to non-NAPA purchase orders to facilitate receipt.15. Formalize the work order completion quality assurance process.
Selected recommendations for improvement as presented in Exhibit B.1, Parts Management Internal Control Documentation
53
Flowchart E: Parts Invoice Processing
Fleet Account CoordinatorAccounts Payable
ClerkAccounts Payable Supervisor
Creates a single PDF file of all invoices and
uploads to JDE
Resolves any discrepancies with
Fleet
AP Supervisor approves payment
by posting transaction (JV) to
AP in the JDE general ledger
Weekly, produces Journal Voucher (JV) report from
JDE and submits to AP along with
interface report and individual invoices
Payment process
D
AP Supervisor spot checks transactions
Resolves discrepancies with
NAPA In-House Supplier
Reviews JV report and related
documentation for proper fund coding
and overall accuracy
Enters invoice into JDE, along with scan of invoice,
PO and slip
Totals the invoices and compares to interface report
total
Receives all NAPA invoices for the day’s activity
C
Enters the lump sum total of the
invoices for each day in JDE
Daily, retrieves NAPA/FASTER
interface file from share drive;
converts from cvs to Excel; and cross-
checks individual NAPA invoices to interface report
Receives further clarification for non-NAPA interface and
other 3rd party invoices third-party
vendors from Service Writer
Performs three-way match of
invoice, PO and packing slip
7
14
6
14
6. Establish the timely entry of transactions into FASTER and JDE as a priority.7. Develop procedures for managing NAPA/FASTER interface transmission logs.14. Develop a procedure to formalize daily reconciliation of NAPA invoices to NAPA/FASTER interface reports. Develop procedures to effectively correct invoice discrepancies. Continually monitor whether prompt payment discounts are being realized.
Selected recommendations for improvement as presented in Exhibit B.1, Parts Management Internal Control Documentation
Compares daily NAPA upload to
FASTER
54
Flowchart F: Parts Cost Allocations
Business UnitsFleet SuperintendentFinance Dept.
ManagerFinance Dept.
Accountant
Post debits and credits to the JDE
general ledger
Compare parts cost allocation to FASTER records
for the month
Start
Submits to Fleet to review and
approve
End
Resolves discrepancies
Prepares and distributes monthly billing summary to
Fleet
Prepares journal entry to bill
departments
Monthly, obtains FASTER account summary report that shows labor
and parts by asset and by department
Prepares detailed billing by asset
and by department
Agrees summary information to
FASTER totals for the month
Provides sign-off (email) confirming
reconciliation
8. Develop standard utilization and exception reports to facilitate user department monitoring of usage and costs.18. Provide FASTER viewing access to user departments. Consider formalizing the user department review of the cost allocations (charge backs).
8 18
Selected recommendations for improvement as presented in Exhibit B.1, Parts Management Internal Control Documentation
Reviews monthly report and provides to
business units
55