Auditor News

Articles 1 to 10 of 35
E-Verify Compliance During FY 2019-20, Audit No. 2102
Based on their submitted records, the selected city contractors and their selected subcontractors generally used the federal E-Verify program to confirm the employment eligibility of their employees working on city contracts. State law requires the City to randomly verify that its service contractors and their subcontractors use the program.
City Court Minimum Accounting Standards, Report No. 2104
This report details the agreed-upon procedures required by the Arizona Supreme Court Administrative Office of the Courts and the results of each procedure. The City Auditor, a certified public accountant independent of the City Court, conducted this 3-year review covering calendar years 2018 through 2020.
Code Enforcement Operations, Audit No. 2108
Code Enforcement’s performance measures are not appropriately designed to measure program effectiveness, and activity levels are not managed effectively. As well, the program has a high management and administrative staff to field staff ratio, and it has not been working effectively to collect unpaid amounts due, manage system access and calculate performance measures.
Scottsdale Transit Program’s National Transit Database Financial Data Review, Report No. 2110
This report is an attestation rather than a financial or performance audit. An attestation report comprises the results of agreed-upon procedures performed on the city’s Transit program data submitted to the National Transit Database (NTD). The Federal Transit Administration required this report as part of its assessment of whether the City’s submitted data complied with the NTD Uniform System of Accounts.
Ambulance Services Contract, Audit No. 2009
This audit was conducted to assess management controls over and contract administration of the City's contracted ambulance services. This contract provides Basic Life Support (BLS) services and patient transportation to the hospital from the Scottsdale Fire Department's emergency calls. The contractor’s Priority 1 response time compliance was not being documented as required. During the audit, the department and contractor researched enough calls to demonstrate compliance for the months that had appeared noncompliant. The department should retain original dispatch files, reevaluate its BLS transport policy, and improve contract administration, billing and data controls.
Police Technology Services, Audit No. 2003
More formalized roles and responsibilities between the Police Technology Services Division and the City’s Information Technology department would help strengthen technology controls. As well, the existing continuity of operations plan could be updated and expanded, including incident response policies and procedures. Additionally, controls related to access and change management could be improved.
Fleet Operations, Audit No. 2008
Fleet Operations can improve its replacement rate methodology and the accuracy and consistency of its application. As well, about 42% of replacement fees were not correctly or consistently calculated. Further, cost savings or avoidance may be achieved by reducing low-use vehicles and ensuring timely preventative maintenance.
E-Verify Compliance 2018-19, Audit No. 2002
Based on the records submitted by the five selected contractors and 11 subcontractors, auditors found that the selected companies generally comply with the State requirement to use the Federal E-Verify program to confirm the employment eligibility of their employees working on City contracts.
Airport Terminal Area Redevelopment Construction Contract, Audit No. 2004
During development of the Guaranteed Maximum Price (GMP), supporting details for proposed general conditions costs were not obtained and reviewed, and cost negotiations were not documented. As well, additional controls for monitoring and verifying construction costs should be adopted. Supporting documentation showed the Construction Manager at Risk (CMAR) billed approximately $379,000 more than its subcontractor costs, including change orders. As well, Aviation’s contract administration records retention practices should be expanded.
Scottsdale’s Museum of the West Contract, Audit No. 2006
While generally effective, contract administration can be improved. Specifically, the City continued to make utility payments for the museum’s administrative building, totaling about $77,000 for 5½ years. Also, responsibility for certain maintenance items can be clarified, and reporting requirements can be met more completely and timely.
Facilities Management Contract Administration, Audit No. 2005
Facilities Management annually allocates about $3 million to contract certain services, such as custodial and specialized services. The audit determined that Facilities Management had not ensured payments matched the contracted prices, overpaying one tested contractor by about $164,000 from July 2017 through November 2019. Also, contractor performance was not effectively monitored and performance problems effectively addressed. Further, relevant documents were not consistently retained in contract files, and the files regularly reviewed for completeness and accuracy.
Police Special Revenues, Audit No. 1907
As of July 1, 2019, Police Department special program balances totaled more than $680,000, with an additional $4 million held by a county and a state agency. RICO community grants appear to be donations, and other RICO program aspects can be better managed. Also, the department’s Cadet program maintained a bank account outside of the City treasury, and controls over revenues, expenses and records retention were not adequate. Further, the department’s controls over donations, cash handling and expenditure approvals can be improved.
Warehouse Operations, Audit No. 2010
Warehouse can improve recordkeeping and inventory controls for its Stores operation. Also, surplus property policies and procedures are not consistently followed and can be improved. Further, surplus property transfers between City departments should be prioritized and efficiently promoted.
Landfill Recycling Cost Review, Audit No. 1917
City management requested this audit to validate financial information related to the City’s current recycling contract as the recycling subcontractor wants to renegotiate the contract terms. The audit found the recycling facility financial analysis and accounting data included some unsupported and questionable costs. Further, the subcontractor contributed a higher percentage of rejected recyclables, which increases its processing costs.
Revenue Recovery, Audit No. 1911
Revenue Recovery can improve efforts to identify and collect delinquent accounts. For example, an accounts receivable aging analysis is not used, and documented collection efforts were inconsistent and often untimely. As well, program management and oversight could be improved, including effective collection and activity data tracking.
Infrastructure Condition Assessment, Audit No. 1905
This audit evaluated and recommends improvements in the management processes and controls relating to condition assessments of City infrastructure. The reviewed infrastructure assessments included bridges, parking garages, sidewalks, streetlights, parking lots, and stormwater drainage assets.
Fleet Parts Operation, Audit No. 1912
This audit was conducted to assess management controls over and cost­effectiveness of Fleet's parts inventory operation.
Scottsdale Transit Program’s National Transit Database Financial Data Review, Report 1916
This agreed-upon procedures review is required as an independent review of the Transit program’s conformance with uniform reporting standards for data submitted to the National Transit Database (NTD) program.
ActiveNet Application Controls, Audit No. 1904
The audit of ActiveNet Application Controls was performed to evaluate the effectiveness of the system’s application controls, including management of its cloud-related risks.
Biennial Certified Audit of Land Use Assumptions, Infrastructure Improvements Plan and Development Impact Fees, Report No. 1903
A biennial certified audit of the City’s land use assumptions, infrastructure improvements plan and development impact fees. The City’s applicable activity relates to its Water and Wastewater utilities.
Cash Handling Controls and Accountability, Audit Report No. 1906
This audit was performed to review cash handling processes for effectiveness and compliance with Administrative Regulation 268 Cash Handling at selected locations.
Benefits Administration, Audit No. 1913
Current procurement practices for benefit-related agreements did not follow the City’s Procurement Code and lacked transparency and documentation. Also, some agreements do not fully address protection of personally identifiable information and protected health information, and contract administration can be improved.
Utility Billing, Audit No. 1910
While most Utility Billing transactions were properly authorized and applied correctly, we found a small number of errors that indicate a more thorough management review is needed. As well, billing system access should be reduced or adequately monitored.
Fire & Life Safety Inspections, Audit No. 1908
Departmental goals for inspecting target properties on an annual basis and other properties on a triennial basis are not being met. According to Fire & Life Safety, the division completes approximately 48% of annual target inspections per year. Program performance can be improved through more effective information management and performance measures.
Southwest Gas Franchise Agreement, Audit No. 1909
Some revenue types were excluded from the franchise fee calculation, including ancillary revenues and certain customer accounts. Auditors also found a small percentage of inaccuracies in the franchisee's jurisdiction coding in three tested zip codes. Capital Expenditures Fund fee reimbursements to Southwest Gas were adequately supported, and these fee reimbursements reduced the combined Arizona region's rate base expenses, though direct benefits to jurisdictions vary.
E-Verify Compliance During FY 2017/18, Audit No. 1902
Five City contractors and seven of their identified subcontractors that performed work for the City during FY 2017/18 were selected for testing. Based on the records they submitted, the tested contractors and subcontractors appear to be currently complying with the requirement.
Selected JOC Construction Contracts, Audit No. 1804
Job order contract (JOC) proposal evaluation phase cost controls can be improved through guidelines for evaluating and negotiating job order costs, monitoring subcontractor selection requirements, and ensuring required reviews and approvals occur and are documented. As well, effective project delivery phase cost controls can be improved through better monitoring of subcontractor use and costs and ensuring the required performance and payment bond coverage. Further, specific records retention guidance can improve the efficiency and consistency of contract administration.
Police On-Body Cameras, Audit No. 1808
The audit found that technology access controls can be improved, such as ensuring the least privilege access principle is followed. In addition, On-Body Camera (OBC)-related policy enforcement can be improved. Videos are not consistently tagged and categorized, some documentation was not consistently retained, and supervisors did not have access to system reports for efficient reviews. As well, SPD can improve its OBC program policies and procedures to enhance its policies for greater transparency and clarity.
Intelligent Transportation Systems, Audit No. 1803
Risks surrounding ITS have not been adequately identified, evaluated and managed. Additionally, few policies and procedures have been formalized, and vendor service agreements have not been properly maintained and managed. Overall, strategic planning and additional performance data may help ITS more effectively plan for future improvements.
Development Agreements, Audit No. 1809
The Planning and Development Services department did not have formal procedures to track development agreement requirements, and written guidance was not available. Records retention periods for some development agreement-related records were not identified, and user access to the CDS was granted on a case-by-case basis rather than by role or function.
Miscellaneous Expenses, Audit No. 1805
Management control over Small Tools & Equipment purchases can be improved, and about 20% of the expenses should be recorded in different accounts. Additionally, Office Supply costs and the related contract can be better managed.
E-Verify Compliance During FY 2016/17, Audit No. 1802
The six selected City contractors and five of their subcontractors currently appear to comply with the State requirement to use the Federal E-Verify program to confirm employment eligibility of their employees working on City contracts.
Scottsdale Arts Contract, Audit No. 1807
The audit found that Scottsdale Arts underspent approximately $202,000 of purpose-restricted City funding, art maintenance funds have not increased in proportion to new art acquired, Scottsdale Arts is not progressing in efforts to become more independent of City funding, and contract oversight of program management and public transparency can be improved.
Independent Review of Scottsdale City Court's Compliance with Minimum Accounting Standards, Report No. 1811
This independent review is required by the Arizona Supreme Court, Administrative Office of the Courts, triennially. This agreed-upon procedures report is intended solely for the information and use of the Administrative Office of the Courts in evaluating the City Court’s compliance with its minimum accounting standards.
WestWorld Marketing & Concession Contracts - Audit No. 1806
The audit found that a more fully developed marketing plan may help improve marketing effectiveness. Concession revenues were generally reported in accordance with terms, but exceptions were not documented and some terms are unclear. Further, several aspects of contract administration should be improved.

Contact Information

City of Scottsdale - City Auditor
7447 E. Indian School Road, Suite 205
Scottsdale, AZ 85251
P: 480-312-7756
F: 480-312-2634

Hours: Monday - Friday, 8 a.m. to 5 p.m.