Office of the City Manager INFORMATION CALENDAR October 28, 2008 To: Honorable Mayor and Members of the City Council From: Phil Kamlarz, City Manager Submitted by: Claudette Ford, Director, Public Works Subject: Audit Update: Purchase Order Audit – Select Public Works Divisions at the Corporation Yard (CF12-05) INTRODUCTION The City Auditor conducted a performance audit of purchases made using purchase orders (POs) during FY 2004 in the Equipment Maintenance and Streets & Utilities Divisions of Public Works, which are located at the City’s Corporation Yard. The audit was conducted to determine whether purchasing and payment activities in these Divisions of Public Works were in compliance with written policies and procedures, and had an adequate internal control structure. The Auditor’s report was submitted to Council on March 15, 2005. The full audit, including the text of all findings and recommendations, can be found on the City’s website at: http://www.cityofberkeley.info/uploadedFiles/Auditor/Level_3_-_General/PurchasingFinalRpt71.pdf. An update on the recommendations was provided to the Council on December 6, 2005, and this audit was also included as part of the Citywide Response to Outstanding Audit Recommendations, submitted to Council on May 16, 2006. The original audit report contains 23 audit recommendations, and three were not fully implemented before now. Two outstanding recommendations are the responsibility of the Finance Department ...