Association of Local Government Auditors

SMALL SHOP WINNERS (1 to 5 auditors)

• Gold - Metro, Portland (OR)
  Oregon Zoo Capital Construction: Metro's readiness to construct 2008 bond projects
  The audit report is very strong, with good visuals, very persuasive findings, a strong response from management, and an innovative methodology. With a $125 million bond issue at heart, the potential for impact is significant. The clear, well-written, and focused nature of the report persuaded the Metro Deputy Chief Operating Officer to state that the findings were "dead-on." The recommendations focused on specific ways to ensure better stewardship and accountability. The report was clearly communicated using simple language and was nicely laid out with plenty of white space and good graphics to illustrate trends and to show conditions. The audit was innovative in that it started at the beginning of a multiyear construction period in order to address concerns early and presented the findings using a "case study" approach.
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• Silver - Office of Internal Audit, Pinal County (AZ)
  Pinal County Parks, Recreation and Fairgrounds
  The report evaluated internal controls over Fairground operations. The potential for impact is significant because the audit covered a broad range of areas within Fairground operations. Audit work identified noncompliance with County policy, potential liability issues, and numerous internal control weaknesses. The report included a large number of control-oriented recommendations focused on improving operations and accountability, and management agreed with all of them. The report was also very readable - the structure was easy to follow and the findings were well-written and clearly described the issues.
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• Bronze - Office of the City Auditor, City of Palo Alto (CA)
  Review of Telephone Rates and Charges
  Inspired by an ALGA Listserv posting, this audit provided compelling and well-supported evidence that the City of Palo Alto was significantly overpaying for land line telephone services. The audit found that long distance charges were significantly higher than comparable jurisdictions and the recommendations resulted in over $235,000 in on-going annual cost savings, reducing land line costs by 40 percent. The report had an immediate impact. Shortly after the audit was published, the City of Palo Alto strengthened oversight of its telephone system, completed a telecommunication needs assessment, and initiated a new contract for telecommunication services. The report was very well written and was presented in a succinct, memo-style format with key evidence highlighted in easy-to-follow tables and captions.
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MEDIUM SHOP WINNERS (6 to 15 auditors)

• Gold - Long Beach (CA)
  Towing Operations Cash Handling Procedures
  The report is an example of a standard, basic audit area, but done in an innovative manner, including reviewing video surveillance. The audit reviewed cash handling procedures of a Towing Operation which is part of the city's Fleet Services Bureau of the Department of Public Works. The report revealed numerous control weaknesses in an operation handling on average $68,000 in cash per week. Findings included a lack of data integrity and lack of separation of duties, resulting in a significant risk of fraud. Testing and audit evidence supported the conclusions, which were effectively tied to audit recommendations. The report also included internal control and segregation of duties graphics, which were excellent visual aids to the reader. Management concurred with the recommendations and many were implemented even before the report was issued.
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• Silver - Office of the City Auditor, City of San Jose (CA)
  Audit of Pensionable Earnings and Time Reporting
  The City of San Jose, Office of the City Auditor's report Audit of Pensionable Earnings and Time Reporting effectively showed how small changes or errors in pension calculations can have a large financial impact over time. The report contained strong analysis and persuasive conclusions. The communication style of the report was clear and concise. Audit recommendations focused on cost savings and process improvements, and were prioritized to focus efforts on the areas of greatest impact.
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• Bronze - Department of Audit, Milwaukee County (WI)
  A Tale of Two Systems: Three Decades of Declining Resources Leave Milwaukee County Parks Reflecting the Best and Worst of Times
  The report focused on an area that was significant to the community. The Parks system infrastructure represented a significant portion of the government's face to the citizen. The report effectively compared the past to the present and gave the reader a good sense of the evolution of the issue. Financials used in the comparisons quantified a soft subject that is usually measured qualitatively. Through the use of excellent communication tools, such as a good use of analogies and pictures, management was persuaded to adopt an assessment and prioritization process for the Milwaukee County Parks system infrastructure that will make a big difference for this locality as it attempts to maximize resources.
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LARGE SHOP WINNERS (16 or more auditors)

• Gold - City and County of San Francisco (CA)
  Office of Contract Administration:·Office Depot Did Not Comply With Its Contract and Has Overcharged the City at Least $5.75 Million
  The audit focused on the validity of Office Depot's billings, contract compliance and the City's administration of the contract. Audit results showed that Office Depot had overcharged the City at least $5.75 million, more than 30 percent of total Office Depot billings. At a time when San Francisco faces one of the worst financial crises since the 1930's, the audit provides hope and movement towards more effective and efficient government. The audit spurred increased awareness and systemic changes to contract administration and the increase of preventive and detective controls.
  
  Though several municipalities have audited their Office Depot contracts, San Francisco's methodology and use of Audit Command Language (ACL) to conduct comprehensive transaction testing on more than half a million records yielded the largest reported recovery amount to date. Office Depot took an aggressive approach in responding to the audit. As a result, the auditor performed extensive follow-up testing that further supported and strengthened the audit conclusions. Judges thought the report was concise and easy to read, providing a significant fiscal impact to the City.
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• Silver - Office of the Controller, City of Philadelphia (PA)
  Review of New Water Billing System
  In 2008, the City's 30-year-old water billing system was replaced with a commercial, off-the-shelf utility billing system. With over one-half million customers that generate more than $400 million a year in water and sewer charges, it was critical that the new system be accurate, reliable and capable of meeting the City's needs. The audit focused on the billing and collection effort of the new system and whether adequate safeguards and controls had been put in place.
  
  The audit revealed a $9 million reduction in revenue collections under the new system and significant control weaknesses within the billing and financial reporting functions that contributed to a $5.7 million financial reporting error. The report contained twenty-four recommendations agreed to by the Revenue Commissioner. Many of the recommendations were corrected immediately as they were brought to his attention.
  
  Judges commented that the report was concise and persuasive. The report was short, only nine pages, and provided specific examples that reflected the potential impact of the internal control weaknesses.
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