RTD CAGID ECO PASS Program Audit-March 2005

Crowv1

Informations

• Publié par: Orra
• Nombre de lectures: 10
• Langue: English

Extrait

City of Boulder

City of Boulder Central Area General Improvement

District (CAGID) – RTD 2005-1 ECO Pass

Program Audit

March 2005

Internal Audit Division

City Manager’s Office

Audit Report Summary

City of Boulder Central Area General Improvement District (CAGID) –

RTD 2005-1 ECO Pass Program Audit

Tests and observations were performed to:

•

Verify that the employee works for a CAGID employer.

•

Verify that the named employee has actually received the decal.

•

Confirm the accuracy of the Decal Distribution Report (DDR) used to track issuance of

decals and to report to RTD.

•

Confirm the total number of decals issued and decals on hand.

SUMMARY:

The auditor again recommends that the frequency of these audits be

decreased as there have been no material findings and processes appear to be working.

Process improvements planned include:

•

As part of the process, City of Boulder employees will review the Decal Distribution

Report (DDR) for missing names.

No changes were recommended for the following areas:

•

All CAGID employees issued ECO Passes who were examined in the sample selected

by RTD were found to be current employees of valid CAGID employers.

Guy E. Wiley, Internal Auditor

City of Boulder

City of Boulder

City of Boulder (CAGID) – RTD 2005-1 ECO PASS Program Audit

OVERVIEW

The City of Boulder’s Downtown Management Commission offers employers in Boulder’s

downtown Central Area General Improvement District (CAGID) ECO Passes to their

employees to enable free use of RTD busses to commute to work.

The City of Boulder

Downtown Management Commission funds this cost.

In contract negotiation for the 2004

contract, City of Boulder and RTD agreed that RTD would furnish City of Boulder with an

agreed upon number of ECO Pass Decals for issuance by City of Boulder directly to valid

CAGID employees.

ECO Passes had previously been mailed to CAGID employers directly

by RTD. In return, City of Boulder agreed to perform two independent audits per year of

internal controls over the decal issuance process and the inventory of decals remaining on

hand at the time of the audit.

These two audits are to be performed by the Internal Auditor.

Upon receipt on February 4, 2005, of the January 2005, Decal Distribution Report (DDR),

RTD randomly selected approximately 10% of the decals issued to employees at that date to

be tested by the Internal Auditor.

AUDIT SCOPE

Tests and observations were performed to:

•

Verify that the employee works for a CAGID employer.

•

Verify that the named employee has actually received the decal.

•

Confirm the accuracy of the Decal Distribution Report (DDR).

•

Confirm the total number of decals issued and decals on hand.

OBSERVATIONS

1.

Accuracy of data in the Decal Distribution Report

In the normal review process, seventy-five employer name or employee spelling or name

errors were identified by City of Boulder employees and corrected on the Decal Distribution

Report (DDR) before the audit was performed.

Another 13 employee name or spelling

errors were identified during the audit of the DDR from information on 2005 ECO Pass

Authorization forms.

Nine of the 13 errors were identified because the audit included

reviewing an employee roster, furnished by employers for use in the audit, which were not

available at time of input to the DDR by City of Boulder employees.

Handwritten

information on the authorization forms is frequently difficult to read.

The four remaining

errors were names missing from the DDR entry.

The auditor sorted the DDR3.05 by the

first name column and then by the last name column and identified three more missing name

DDR entries from DDR entries not in the audit sample provided by RTD.

Recommendation:

A simple sort of the DDR by first name and then by last name would identify any

missing name errors.

Recommend that step be done at least quarterly to ensure accuracy

of the DDR.

The error rate for misspellings of names is so low and the efficiency of the

current process in identifying and correcting these errors (90% in the audit sample) so

high that no additional action is recommended.

Response:

2.

Tests to assure decals are issued to current employees of valid CAGID employers.

Tests indicated that all decals included in the sample were issued to and received by current

employees of valid CAGID Employers.

Tests did identify seven instances where the

employer name on the DDR differed from the CAGID 2005 Master List.

In each instance,

research showed that the name on the DDR was correct and that the CAGID Master List

needs to be corrected.

This was verified by looking up the company name from the DDR

and the address from the CAGID 2005 Master List on the Colorado Secretary of State’s

Business Information Official Filings website.

Some of these instances were likely caused

by name changes of the business.

Recommendation:

City of Boulder should notify RTD of the correct employer names so

the CAGID 2005 Master List can be updated.

Response:

3.

DDR entries to Employers not on the CAGID 2005 Master List.

There were entries for 11 employees of 6 CAGID employers where the employers name was

not found on the CAGID 2005 Master List.

In each case, City of Boulder had already

notified RTD to add these employers to the CAGID 2005 Master List.

No Recommendation of response is required.

4.

Decal inventory controls.

The auditor performed a physical inventory of decals as of 3/30/05 and found no

discrepancies in inventory.

The inventory quantity, the total of decals received from RTD

and the number of decals issued to employees of CAGID employers is noted in the

following exhibit.

The total number of decals received from RTD agrees with the number

stated in the 2005 contract.

Thirty-six additional “replacement” decals have been received

and were observed in inventory.

There were no discrepancies noted in the decal inventory or the controls over that inventory.

No recommendation or response is required.

Number Series Accounted For

# of Decals

First 2005 Decal Issued per DDR

at 3/30/2005 (first number on

DDR verifired by auditor):

00100

Decals Issued and entered on

DDR at 3/30/05 (last number on

DDR verified by auditor):

02687

2588

Decals Issued but not yet

entered on DDR at 3/30/05

(Auditor examined 2005 ECO

PASS Employee Authorization

Forms):

02688 - 02941

254

Roll in use at Transportation

Resource Center:

02942 - 03099

158

Rolls in Safe:

03100 - 04099

1000

04100 - 05099

1000

05100 - 06099

1000

06100 - 07099

1000

07100 - 08099

1000

08100 - 08130

31

Decals Received from RTD per 2005 contract

8031

Replacement Decals Received

from RTD in 2005:

08132 - 08167

36

36

Total 2005 Decals Received from RTD at 3/30/05

8067

Physical Inventory of Decals

3/30/2005

Attachments:

Electronic copies of the auditor’s workpapers have been furnished to RTD

along with the audit report.