COM 0109.001 2016-2018 - Laserfiche WebLink

Home

We commend the Highway Maintenance Division on the effectiveness of the controls that have been implemented. However, audit work did identify some other deficiencies in internal controls and non-compliance. Independent monitoring is inadequate When processing inventory additions, transfers, disposals, and adjustments, the clerk performs all the administrative functions to ensure inventory and inventory records are properly recorded in the inventory system. A physical check of items on hand should be compared to verify the accuracy of the records. (See background for more detail on what is the County's inventory process.) An independent, supervisory -level employee who does not have custody, authorization, or reconciliation responsibilities should perform preventative, detective, or monitoring activities. Because of insufficient training and lack of clear Countywide guidance, adequate independent monitoring was not performed resulting in discrepancies that went undetected and unresolved. Specifically, we observed the following: • Year-end inventory records are not Department of Public Works management should perform additional monitoring of physical inventory to ensure records are accurate and complete. adequately monitored or supervised to ensure that discrepancies are resolved timely and inventory and inventory records are accurate. Highway Maintenance administration and the various baseyards do not consistently verify the accuracy and completeness of their inventory control records (e.g., beginning balances, purchases, and adjustments, etc.) to their physical inventory on hand at year-end. Highway Maintenance administration and baseyards should consistently compare physical inventory and inventory records for accuracy and omissions at year-end or more frequently if necessary. Adequately monitoring the annual inventory count would ensure inventory and inventory records are accurate and complete. Inventory disposals are not reconciled to inventory records. Highway Maintenance administration does not consistently monitor or supervise inventory disposals to the inventory records system. The Highway Maintenance administration should consistently review all disposals timely. • Inventory usage is not independently monitored. While most Highway Maintenance employees are aware of how much inventory is required to complete a job, they do not consistently account or reconcile their inventory items used to existing inventory balances. • Inventory in/out logs are not independently monitored. The Inventory Policies and Procedures manual requires County agencies with a central storeroom to record and maintain adequate physical handling of materials, tool, and supplies inventory. Each agency must maintain internal "control cards" (in/out logs) for items moving in (purchases) DPW Highway Maintenance Division Inventory Management: Audit Results 111