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Office of the City Auditor, San Jose California
City of Oklahoma City, Oklahoma
Large Shop:
Office of the City Auditor, San Jose California
An Audit of the Pretreatment Source Control Program The panel selected the report submitted by the Office of the City Auditor of the City of San Jose which was a performance audit on the City of San Jose’s Environmental Services Department (Department), entitled An Audit of the Pretreatment Source Control Program (Program). The panel found the evidence presented in the report compelling and indisputable. Further, very complex information was presented clearly so that the reader could easily understand the findings.The audit revealed that the Department was conducting inspections far in excess of federal regulations and that the excessive inspections were not contributing to the Program’s effectiveness, and were not value-added. The report allowed the Department to introduce efficiencies in staffing, vehicle assignment, and enforcement of local pretreatment regulations.
The Department found the audit report and its charts and graphs so compelling that they submitted to City Council a proposal to reduce Program staffing from 33 positions to 12, and to reduce Program costs by $1,942,332 by implementing the recommendations.The audit produced this dramatic change because of the innovative and collaborative approach used throughout the audit. After seeing the report summarized in the ALGA Local Government Auditing Quarterly, the Government Audit Training Institute of the Graduate School USDA contacted the City Auditor to ask for permission to use it as a case study for one of its classes. The Government Audit Training Institute was impressed with the audit and regarded it as a model for incorporating both efficiency and effectiveness in performance auditing. The Institute also planned to incorporate the report’s charts and graphs into its training classes as examples of effective presentations.
Medium-size Shop:
City of Oklahoma City, Oklahoma
Sales Tax Revenues.
The panel selected the report, Sales Tax Revenues, submitted by the City of Oklahoma City’s Office of the City Auditor. The audit evaluated the adequacy of procedures established by the City’s management for administering, collecting and enforcing City sales tax revenue. Comprehensive audit procedures were used to conduct the review and meet the challenges encountered by the audit team in reviewing this previously unaudited area.Despite the challenges facing the audit team (which included legislative restrictions regarding access to relevant information and litigation regarding the misapplication of statute by the Tax Commission), its persistent efforts resulted in a successful evaluation of the adequacy of procedures stablished by the City’s management for administering, collecting and enforcing City sales tax revenue.The significant impact of this audit included recovery of $2.6 million dollars by the City (with the cooperative effort of the Oklahoma Tax Commission). As well, the audit’s findings resulted in a State Supreme Court ruling regarding a statute being misapplied by the Oklahoma Tax Commission, and ultimately in positive changes for Oklahoma City and all local governments (approximately 500) in the state. As a result, local governments are realizing over $9 million of additional sales tax revenue annually due to the Supreme Court decision.The results of the audit are clearly and concisely written in a report that was well received by the City.In response to the audit, the City has made changes and is continuing to make changes to the collection and enforcement processes that will enhance local government sales tax collections.
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Auditing Awards