City of Hartford Department of Public Works Equipment Services Division Accounts and Operations Audit
2
module and FuelMaster systems and related policies and procedures. We would also like to note that DPW management took action to address a number of the recommendations in our prior report, however, improvements are still required in various areas as noted in the details of this report. Scope The scope of our audit included various tests of operations, activity and transactions performed primarily during fiscal year ending June 30, 2014. The following audit procedures were performed:
Reviews and evaluations of policies, procedures and related internal operating and accounting controls;
Examinations of parts inventory;
Reviews and tests of the process for auctioning surplus vehicles and equipment;
Reviews and tests of work orders and related process; and,
Reviews and tests of FuelMaster transactions.
II. Detail Findings
Parts Inventory Parts for vehicle and equipment repairs are either purchased to be used for specific immediate repair requirements or to be maintained on hand in stockrooms for future repair needs. ESD uses the Inventory module of MUNIS to account for and control part inventories. At the time of our review, the inventory included over 13,230 parts under 3,809 separate part numbers with a total cost of approximately $357,000. Various tests of 20 parts with a cost of more than $48,500 and reviews of related operations disclosed the following: 1.
Policies and procedures relating to the management and oversight of parts purchased for repair work and those maintained in inventory were not documented. We recommend that DPW management document policies and procedures relating to purchased parts and related inventory. This should include, but not be limited to, purchasing levels and limits, control over parts from purchase to use, accounting for the parts in MUNIS and performing periodic physical counts of the inventory on-hand. 2.
The cost of one part was incorrectly recorded in MUNIS as $5,180 instead of $5.18. In addition, although the part was used, it was not accounted for as relieved from the Inventory module. As a result, the inventory was overstated by $5,180. ESD management informed us that this was the result of an oversight. We recommend that DPW management take action to ensure that all parts are accounted for properly in the future. 3.
Thirteen of the parts with an extended cost of $27,694 were either obsolete or overstocked because they had not been used in 12 to 60 months. As a result of our analysis and discussions with ESD management, we jointly estimated that as much as $100,000, or about 30%, of the