AUDITOR’S REPORT
FACILITIES AND PROPERTY MAINTENANCE
HEATING, VENTILATION, AND AIR CONDITIONING
PROCEDURES
February 9, 2018
Michael Post, C.P.A., M.B.A.
Harris County Auditor
Gary Gray, C.P.A. First Assistant County Auditor
1001 Preston, Suite 800 Houston, Texas 77002-1817
(832) 927-4600
Fax (713) 755-8932 Help Line (832) 927-4558
1
MICHAEL POST , C.P.A., M.B.A.
HARRIS COUNTY AUDITOR
February 9, 2018
Mr. John R. Blount, County Engineer
Office of County Engineer
1001 Preston, 5th Floor
Houston, TX 77002
RE: Facilities and Property Maintenance Heating, Ventilation, and Air Conditioning
Procedures
At the request of your office, and with the change in officials for the Facilities and Property
Maintenance Division (the Office), the Auditor’s Office - Audit Services Department performed
procedures for the Office as described in our combined engagement and scope letter dated May
10, 2017.
Our procedures were limited to the items identified below:
Documented the controls over the Heating, Ventilation, and Air Conditioning
(HVAC) process including the purchasing, tracking, maintenance, use and disposition
of HVAC equipment, parts, and Freon and selectively tested to determine the design
and operating effectiveness of these controls.
Selectively tested to determine whether HVAC equipment, parts and Freon existed
and were recorded in accordance with County and/or internal policy.
The engagement process included providing you with a combined engagement and scope letter
and conducting an entrance and exit conference with your personnel. The purpose of the letter
and conferences was to explain the process, identify areas of concern, describe the procedures to
be performed, discuss any applicable issues identified during the engagement, and solicit
suggestions for resolving any applicable issues. A draft report was provided to you and your
personnel for review.
The work performed required our staff to exercise professional judgment in completing the scope
procedures. As the procedures were not a detailed inspection of all transactions or property,
there is a risk that fraud, errors, or omissions were not detected during this engagement. The
official therefore, retains the responsibility for the accuracy and completeness of their financial
records and property and for ensuring sufficient controls are in place to detect and prevent fraud,
errors, and omissions.
Mr. John R. Blount, County Engineer
Office of County Engineer
2
The enclosed Auditor’s Report presents the significant issues and recommendations identified
during our procedures. We appreciate the time and attention provided by you and your staff
during this engagement.
Sincerely,
Michael Post
County Auditor
cc: District Judges
County Judge Ed Emmett
Commissioners:
R. Jack Cagle
Rodney Ellis
Jack Morman
Steve Radack
Kim Ogg
Vince Ryan
William J. Jackson
3
TABLE OF CONTENTS
RESULTS .......................................................................................................................................4
ISSUES AND RECOMMENDATIONS ......................................................................................5
Overarching Standard Operating Policies and Procedures ...................................................5
HVAC Tracking System ............................................................................................................6
Monitoring of Freon Usage ........................................................................................................7
HVAC Tools ................................................................................................................................9
HVAC Purchases ......................................................................................................................10
Purchasing - Authorized Personnel Listing ...........................................................................11
Validation and Monitoring of Parts Purchased ....................................................................12
Disposition of HVAC Units and Equipment ..........................................................................13
Freon Purchased for Precincts ................................................................................................14
Purchase Requisition Approval Authorities ..........................................................................15
FPM Tools .................................................................................................................................16
Technician Inventory Logs ......................................................................................................17
4
RESULTS
Based upon the procedures performed, the Office’s internal controls over the HVAC process
including the purchasing, tracking, maintenance, use, and disposition of HVAC equipment, parts,
and Freon need improvement.
These matters are discussed in more detail in the following Issues and Recommendations
section of this report.
ISSUES AND RECOMMENDATIONS
5
ISSUE S AND RECO MMENDATION S
Overarching Standard Operating Policies and Procedures ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Subject
Background In accordance with the 2017 Government Finance Officers Association (GFOA), Best Practices
for the Internal Control Environment, management should develop organizational structure and
ensure staff accountability by requiring written procedures for important government processes
and determine how often policies and procedures need to be reviewed, reaffirmed, and updated. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Background
Issue The Office does not have formal written HVAC policies and procedures to guide personnel in
completing tasks consistently across the different regions as well as the Mechanical, Electrical
and Plumbing Shop (MEP Shop).
Not developing formal written HVAC policies and procedures to guide personnel in completing
tasks consistently across the different regions has resulted in each region performing tasks
differently. Lack of written policies and procedures and lack of standardization could lead to
confusion, errors, misappropriation of assets, unauthorized purchases, and financial loss to the
County. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Finding
Recommendations Office Management should establish a timeline for approval and implementation of formal
written HVAC policies and procedures to govern its processes across all regions and require all
staff to read these policies and sign indicating their understanding of these policies. Office
Management should also review, reaffirm, or update these policies on an annual basis. ##ISE1BB4E6EA07848D7B6C2FF7CABF95289##Recom
Management Response We agree that a policy is needed. One of the major operational changes FPM is implementing
since falling under the Harris County Engineering Department, is the formalization of Standard
Operating Procedures for many topics. FPM will do the same for this topic by developing and
implementing a formalized process to standardize the common procedures concerning HVAC.
We will focus on the tasks that are generally formatted the same throughout each system, such
as the handling of refrigerant and tools. We estimate this document to be complete within 9
months; to include the research for industry best practices, development, drafting and the
approval process. ##AP7F99D2CB323B48E2ADBB31F670246847##Mresp
ISSUES AND RECOMMENDATIONS
6
HVAC Tracking System ##IS659EAFD5421B47A886F161A75C8F77A8##Subject
Background In accordance with best practices, management should have an overarching system to properly
track and monitor 100% of all HVAC equipment including, but not limited to, the in-service
date, applicable warranties, required maintenance, maintenance cost, useful life, past repairs,
purchase price, location, description, estimated replacement cost and any other information that
could be used for developing a progressive HVAC budget.
Tririga is the Office’s Equipment and Maintenance tracking system. ##IS659EAFD5421B47A886F161A75C8F77A8##Background
Issue The Office’s system for tracking and monitoring HVAC equipment does not include a
comprehensive listing of all HVAC equipment and key information.
Not using the system to properly track and monitor 100% of all HVAC equipment and
maintenance could lead to errors, misappropriation of assets, and financial loss to the County. ##IS659EAFD5421B47A886F161A75C8F77A8##Finding
Recommendations Office Management should evaluate whether their current HVAC tracking system meets the
needs of the Office. If determined to be sufficient, Office Management should ensure that 100%
of HVAC equipment is recorded accurately in their HVAC tracking system. This should include
documenting the in service date, applicable warranties, required maintenance, maintenance cost,
useful life, past repairs, purchase price, location, description, estimated replacement cost and
any other information that could be used for developing a progressive HVAC budget. ##IS659EAFD5421B47A886F161A75C8F77A8##Recom
Management Response FPM is pleased that the new upgrades to Tririga are moving along quickly and we will soon
have a tool capable of tracking all HVAC systems for all facilities, if funded through
implementation and completion. FPM management agrees that the current means of tracking is
insufficient and we are excited to see the efficiency and completeness that this new tool brings
to our capabilities. We expect this system to be operational in the fall of 2018. ##AP81B544D1BD6F43BF88EBA7E985EAB5A9##Mresp
ISSUES AND RECOMMENDATIONS
7
Monitoring of Freon Usage ##IS2E41622B41ED413483E45444D610E317##Subject
Background Pursuant to the County's Accounting Procedures Manual A.1-3, Inventory Internal Control
Guidelines, special safeguards for expensive material and material susceptible to personal use
should be in place and operating properly. In addition, inventory in remote locations should be
counted, and a reconciliation and investigation of differences between the inventory records and
physical inventory should be performed. ##IS2E41622B41ED413483E45444D610E317##Background
Issue The Office does not have sufficient controls in place to ensure Freon is properly inventoried,
tracked and monitored. Freon logs from the MEP Shop did not match and/or reconcile to the
actual Freon physically located at the regions. As a result, 6,218.75 pounds of Freon were not
properly inventoried. The disposition of the 6,218.75 pounds of Freon not properly inventoried
is as follows:
4,501.45 lbs. was not inventoried
46.8 lbs. could not be located
1,656 lbs. was located but not assigned to the technician that was in possession of the
Freon
12 lbs. exceeded assigned amount for the technicians
2.5 lbs. was recorded as used but was physically verified in possession of a technician ##IS2E41622B41ED413483E45444D610E317##Finding
Recommendations Office Management should implement controls to properly inventory, track and monitor Freon
on a perpetual basis. This should include but not be limited to the following:
1. Periodically perform a 100% inventory of all Freon across all locations and update the
inventory log accordingly.
2. Periodic audits of the distribution, usage and documentation of Freon issued and used by
each technician.
3. Weigh Freon and have dual agreement and signoff on the amount of Freon remaining in
the bottle whenever Freon is transferred between technicians or the MEP Shop.
4. Office Management should periodically review documentation pertaining to Freon
tracking for reasonableness. ##IS2E41622B41ED413483E45444D610E317##Recom
Management Response We agree and do consider this a very important topic to address. We have already implemented
changes to improve our methods of monitoring Freon. In addition, FPM will research best
practices within the industry, and will develop an efficient and effective means of maintaining
accountability of refrigerant. Moving forward, FPM will turn in all reclaimed Freon straight to
the vendor for proper disposal and credit. FPM will develop and implement a formalized
process to standardize the common procedures concerning Freon. We estimate the Standard
ISSUES AND RECOMMENDATIONS
8
Operating Procedures to be complete within 9 months; to include the research for industry best
practices, development, drafting and the approval process. ##AP801744C7D8834A38921F8558EF9F14D8##Mresp
ISSUES AND RECOMMENDATIONS
9
HVAC Tools ##IS20B80C0225EF49A59566CF3B8C5CDADB##Subject
Background Pursuant to the County's Accounting Procedures Manual A.1-3, Inventory Internal Control
Guidelines, special safeguards for expensive material and material susceptible to personal use
should be in place and operating properly. In addition, inventory in remote locations should be
counted, and a reconciliation and investigation of differences between the inventory records and
physical inventory should be performed. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Background
Issue The Office does not have sufficient controls in place to ensure HVAC tools are properly
inventoried, tracked and monitored. As a result, 306 of 2,111 (14.5%) HVAC tools selected for
testing could not be physically located on the vehicles they were assigned to at the time of
inspection. Also, an additional 351 HVAC tools that were physically located were not recorded
on the inventory listing. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Finding
Recommendations Office Management should attempt to locate the missing HVAC tools, and steps should be
taken to identify and address the root cause of these missing tools. If they are unable to locate
the missing tools, they should determine whether County Auditor's Form 3351, County Property
Deletion/Indemnification Request Form, should be submitted to the County's Purchasing
Services Department to obtain Commissioners Court approval to remove the HVAC tools from
their departmental records.
In addition, Office Management should perform an inventory of all HVAC tools and update
their departmental records with sufficient information for effective tracking and monitoring of
HVAC tools to comply with the County's Accounting Procedures. This could be done in
conjunction with the annual inventory required by the County’s Purchasing Rules and
Procedures Manual section 11.2.1, Inventory Responsibilities by Department.
Finally, Office Management should consider implementing unannounced inventory counts to
reconcile HVAC tools to departmental records. Differences should be investigated and
communicated to management. ##IS20B80C0225EF49A59566CF3B8C5CDADB##Recom
Management Response We agree and FPM will develop and implement a formalized process to standardize the
common procedures concerning HVAC tools. We estimate this document to be complete
within 9 months to include the research for industry best practices, development, drafting and
the approval process. FPM will also conduct an inventory of HVAC tools, capture all serial
numbers possible, and take the necessary steps to correct the inventory records with Purchasing.
##AP2C7A8E3E5F0843A992586C893F900143##Mresp
ISSUES AND RECOMMENDATIONS
10
HVAC Purchases ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Subject
Background The Office issues blanket purchase orders (PO) for HVAC tools, parts, and equipment. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Background
Issue The Office’s controls surrounding the purchase of HVAC tools, parts, and equipment should be
strengthened. Technicians can purchase HVAC tools, parts and equipment from vendors
without approval. According to Management, their internal policy requires technicians to notify
the supervisor or manager before making a purchase, however the technicians can physically
purchase tools, parts, and equipment without approval as long as they know the PO number.
The administrative assistant does review all purchases made for each work task but may not be
as qualified for this review as a supervisor or manager.
In addition, a County Attorney’s Office Special Investigator was allowed to make an
unauthorized purchase of a ladder after being supplied with the blanket PO number as part of a
test coordinated between the Public Infrastructure Coordination Department, County Attorney’s
Office, and the Auditor’s Office. Office Management did detect the unauthorized purchase
subsequent to our test, however, an unauthorized employee was able to make the purchase just
knowing the PO number.
Inadequate controls surrounding the purchase of HVAC equipment can lead to unauthorized
purchases, misappropriation of funds and financial loss to the County. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Finding
Recommendations Office Management should perform research to determine the reasonableness of implementing
controls requiring the technicians to provide the vendor written approval obtained from their
supervisor or manager prior to all HVAC purchases from vendors. Alternatively, Office
Management could consider requiring a supervisor or manager to call in a verbal approval
directly to the vendor prior to the purchase. In addition, consideration should be given to
centralizing the purchasing of parts and equipment similar to the current process for purchasing
tools.
If a preventative control is not reasonable, Office Management should consider strengthening
their current detective control by requiring a supervisor or manager to approve all HVAC parts
and equipment for each work task order instead of the administrative assistant. ##ISDA0C184BD74E46E583A3984B4E8AEE4D##Recom
Management Response We agree and FPM will strengthen our control of ordering and delivery by increasing the
safeguards within the approval process. We will also verify the correct authorization list is in
the possession of the various vendors we work with on a regular basis. Additionally, we will
schedule quarterly review of authorized purchasing lists and inform vendors accordingly. ##APBD455ACA1AB84D239C2B32B93301FC46##Mresp
ISSUES AND RECOMMENDATIONS
11
Purchasing - Authorized Personnel Listing ##IS424905F06FD949039E921DA8346CACB6##Subject
Background In accordance with best practices, any master listing of authorized employees, signatures, and or
PIN numbers should be updated on a continuous basis as applicable. This includes removing
terminated employees from the authorized master listing as soon as possible upon termination. ##IS424905F06FD949039E921DA8346CACB6##Background
Issue The Office’s internal controls for updating the authorized master listing of County personnel
authorized to purchase tools, parts, and equipment at vendor locations needs improvement.
Two former employees at the Region 3 location were still on the authorized master listing to
make purchases as of May 25, 2017. One employee’s last day of employment was April 29,
2016 (391 days) and the other employee’s last day of employment was May 12, 2017 (13 days).
However, neither of these employees made purchases subsequent to their last day of
employment, and both employees were subsequently removed from the authorized master
listing.
In addition, there was a vendor that did not have a list of authorized personnel.
Not monitoring or updating the authorized master listing of County employees authorized to
purchase tools, parts, and equipment at vendor locations could lead to unauthorized purchases
made and financial loss to the County. ##IS424905F06FD949039E921DA8346CACB6##Finding
Recommendations Office Management should consider implementing controls to ensure that the listing of all
current personnel authorized to purchase tools, parts and equipment is actively monitored and
all necessary changes are updated and communicated to active vendors as soon as possible
including the removal of terminated employees.
In addition, Office Management should ensure that all vendors have a copy of the authorized
master listing of County personnel authorized to purchase tools, parts, and equipment at their
respective location. ##IS424905F06FD949039E921DA8346CACB6##Recom
Management Response We agree and FPM will strengthen our control of order and delivery, and will verify the correct
authorization list is in the position of the various vendors we work with on a regular basis.
##AP6F93DD137499496A9F5257F2B0D8E431##Mresp
ISSUES AND RECOMMENDATIONS
12
Validation and Monitoring of Parts Purchased ##ISED401C431C1B44878730586C19B3ECA9##Subject
Background In accordance with best practices, an independent person should, on a sample basis, validate
parts and equipment purchased for a work task to the actual parts and equipment used for that
specific work task. ##ISED401C431C1B44878730586C19B3ECA9##Background
Issue The Office does not have an independent person selecting a sample of HVAC related work task
locations to physically validate that parts and equipment purchased for a respective work task
were actually used on that job.
Not having controls in place to ensure parts and equipment purchased for work tasks are used
on that respective job could result in the misappropriation of assets and financial loss to the
County. ##ISED401C431C1B44878730586C19B3ECA9##Finding
Recommendations Office Management should consider implementing controls requiring an independent employee
to select a sample of parts and equipment purchased for HVAC related work tasks and validate
that the parts or equipment were used on that specific work task. All variances should be
communicated to Office Management and discussed for resolution. ##ISED401C431C1B44878730586C19B3ECA9##Recom
Management Response FPM agrees that this process could benefit from an additional review. We will implement a
random sampling inspection for managers to conduct. FPM will develop and implement a
formalized process to standardize the common procedures concerning parts. Additionally, we
estimate the standard operating procedures to be complete within 9 months; to include the
research for industry best practices, development, drafting and the approval process. ##AP920C689955AF4187BFCC974829E2258A##Mresp
ISSUES AND RECOMMENDATIONS
13
Disposition of HVAC Units and Equipment ##IS23475E6A34A24D92A8B67715DB0E5169##Subject
Background On April 22, 2014, Commissioners Court approved a contract for Harris County to sell scrap
metal to the South Post Oak Recycling Center (Recycling Vendor).
Currently, upon receiving HVAC parts and equipment from the County, the Recycling Vendor
issues a receipt to the individual submitting the parts or equipment. The receipt contains
information such as the time and date of sale, the name of the person selling the items, the types
of metal sold, and the total weight for each type of metal sold. ##IS23475E6A34A24D92A8B67715DB0E5169##Background
Issue The Office does not have internal controls in place to monitor the disposition of HVAC parts
and equipment. Specifically, the Office does not verify that HVAC parts and equipment
removed from service are taken to the Recycling Vendor. In addition, receipts provided by the
Recycling Vendor are not required to be submitted to Office Management for reconciliation to
parts and equipment removed from service or taken to the Recycling Vendor.
Not having controls for monitoring the disposition of HVAC parts and equipment can lead to
misappropriation of assets and financial loss to the County. ##IS23475E6A34A24D92A8B67715DB0E5169##Finding
Recommendations Office Management should implement controls to monitor the disposition of HVAC parts and
equipment by requiring personnel to submit identification of HVAC parts and equipment
disposed of and receipts from the Recycling Vendor with identifying information to Office
Management, along with the associated work tasks. In addition, management should utilize
their system to record and track all HVAC parts and equipment in need of disposal for each
work task as mentioned in Issue, “HVAC Tracking System”, and compare that log to the receipts
received from the Recycling Vendor to ensure all required items have been delivered to the
Recycling Vendor. ##IS23475E6A34A24D92A8B67715DB0E5169##Recom
Management Response We agree and FPM is pleased that the new upgrades to Tririga are moving along quickly and we
will soon have a tool capable of tracking all HVAC parts and equipment for all facilities, if
funded through implementation and completion. FPM management agrees that the current
means of tracking is insufficient and we are excited to see the efficiency and completeness that
this new tool brings to our capabilities. We expect this system to be operational in the fall of
2018 ##AP22D346C1BBFA462E8A1915EAE798E3CD##Mresp
ISSUES AND RECOMMENDATIONS
14
Freon Purchased for Precincts ##IS559F852A20914A8C898FCC22C762FF4F##Subject
Background Per discussions with Office Management, the Office is reimbursed for Freon purchased on
behalf of the Precincts through a bill back process and the Freon is required to be left at the
Precinct for which the Freon was purchased. ##IS559F852A20914A8C898FCC22C762FF4F##Background
Issue Freon purchased directly for Precincts is not consistently left on site at the respective Precinct
for which it was purchased as required by management. Based on our physical observation of
vehicles, a technician had 32 pounds of 407C Freon that was purchased for a Precinct but was
not left at that Precinct.
Not leaving Freon purchased for Precincts on site could result in misappropriation of Freon
and/or financial loss to the County. ##IS559F852A20914A8C898FCC22C762FF4F##Finding
Recommendation Office Management should implement controls to ensure technicians leave Freon purchased for
Precincts at the respective Precinct. These controls could include requiring the administrative
assistant to call the Precinct to confirm they have possession of the Freon once the work task
order is completed. ##IS559F852A20914A8C898FCC22C762FF4F##Recom
Management Response We agree and FPM will modify the Standard Operating Procedures for this topic to only charge
the Precinct for what is used. Any remaining refrigerant will be tracked and turned in
accordingly. FPM will develop and implement a formalized process to standardize the common
procedures concerning Precinct Freon. We estimate the Standard Operating Procedures to be
complete within 9 months; to include the research for industry best practices, development,
drafting and the approval process. ##AP53BBDF03224846AD9E0951F6FE1FA810##Mresp
ISSUES AND RECOMMENDATIONS
15
Purchase Requisition Approval Authorities ##IS901CCFD973A544CEB4724C98A2CC24DA##Subject
Background Per discussions with Office Management, all purchase requisitions should be approved by the
Maintenance Administrator. Approval of the purchase requisition is to be obtained through the
TriRiga system and noted on the purchase requisition summary report for reference.
Pursuant to the 2017 GFOA, Best Practices for the Internal Control Environment, management
should develop organizational structures and ensure staff accountability by identifying
responsibilities for workflow approvals in their systems. ##IS901CCFD973A544CEB4724C98A2CC24DA##Background
Issue Although management’s intent is to have the Maintenance Administrator approve all purchase
requisitions, the workflow within the TriRiga System does not require the Maintenance
Administrator to approve all purchase requisitions. As a result, there was one instance where an
HVAC invoice’s related purchase requisition was not approved by the Maintenance
Administrator as required by internal policy. The purchase requisition was approved by the
region manager who reports to the Maintenance Administrator. ##IS901CCFD973A544CEB4724C98A2CC24DA##Finding
Recommendations The Maintenance Administrator should perform a review to determine the reasonableness of the
purchase requisition and make a determination as to whether the purchase requisition should
have been approved.
Office Management should review the TriRiga system workflow process with regards to HVAC
purchase requisitions to determine whether they want to require approval by the Maintenance
Administrator specifically within the workflow of the TriRiga System before the purchase
requisition can be submitted for creation of a purchase order. If determined that they want this
approval they should implement a system restriction in the TriRiga System requiring this
approval by the Maintenance Administrator before a purchase order can be created. ##IS901CCFD973A544CEB4724C98A2CC24DA##Recom
Management Response FPM is pleased that the new upgrades to Tririga are moving along quickly and with the updates
to the system we will have the most current industry standard for review and approval of
purchases of this type, if funded through implementation and completion. FPM management
agrees and we are excited to see the efficiency and completeness that this new tool brings to our
capabilities. We expect this system to be operational in the fall of 2018. ##AP611710677C9C4BA0BFA9020E8C9E44D6##Mresp
ISSUES AND RECOMMENDATIONS
16
FPM Tools ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Subject
Background Per discussion with Office Management, all tools purchased are to be shipped to the Lockwood
tool shop and processed by the Asset Management Clerk. Once received, the Asset Management
Clerk is required to initial the invoice verifying the receipt of the tools and send the initialed
invoice to the FPM Fiscal Services Department for verification of receipt prior to payment. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Background
Issue Internal controls for approving HVAC tool invoices prior to payment need improvement.
Thirteen out of 15 (86.6%) HVAC tool invoices tested were not initialed by the Asset
Management Clerk verifying the receipt of the tools prior to authorization for payment by the
Office’s FPM Fiscal Services Department as required by management. In addition, the Asset
Management Clerk is not retaining the packing slips for items received. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Finding
Recommendation Office Management should develop controls to ensure all invoices are signed and checked off as
items are received and all other shipping documents are signed and retained. All evidence
supporting receipt of the invoice items should be emailed to the Office’s FPM Fiscal Services
Department for authorization of payment. The Office’s Fiscal Services Department should not
authorize payment on any invoice for which supporting documentation evidencing receipt of the
invoice items has not been received. ##ISB58B96C4FD0A4E2A85B0C7793E8B2BD9##Recom
Management Response Property accountability is a very important topic that FPM takes seriously, and we will improve
this process by instituting random sampling of inventory log sheets to ensure staff is conducting
the changes as needed. FPM will develop and implement a formalized process to standardize
the common procedures concerning tools. We estimate the Standard Operating Procedures to
be complete within 9 months; to include the research for industry best practices, development,
drafting and the approval process.
##APC4C5B0153E1D4A7394D9F5663B6D6B7A##Mresp
ISSUES AND RECOMMENDATIONS
17
Technician Inventory Logs ##IS00A00109868B4D9080FD00BB08B17256##Subject
Background Per discussions with Office Management, the Asset Management Clerk should require
technicians to sign a new personal inventory log sheet when they receive new tools. ##IS00A00109868B4D9080FD00BB08B17256##Background
Issue The Asset Management Clerk is not consistently requiring technicians to sign a new personal
inventory log sheet when they pick up new tools from the tool shop as required by management.
Twelve of 15 (80%) invoices tested did not have an updated personal inventory log sheet signed
by the technician on the date the tools were received.
Not requiring technicians to sign a new personal inventory log sheet when they pick up new
tools impairs the Office's ability to properly track tools for each technician which could result in
misappropriation of assets and financial loss to the County. ##IS00A00109868B4D9080FD00BB08B17256##Finding
Recommendation Office Management should develop controls to ensure technicians sign a new personal
inventory log sheet when they pick up new tools from the tool shop. Additionally, Management
should establish a monitoring function to ensure controls are being consistently followed. ##IS00A00109868B4D9080FD00BB08B17256##Recom
Management Response Property accountability is a very important topic that FPM takes seriously, and we will improve
this process by instituting random sampling of inventory log sheets to ensure staff is conducting
the changes as needed. FPM will develop and implement a formalized process to standardize
the common procedures concerning logs. We estimate the Standard Operating Procedures to be
complete within 9 months; to include the research for industry best practices, development,
drafting and the approval process.
##AP07CE15BD9B17416FB7208DCD3263917E##Mresp