Water Works Board moving in the right direction
by Jesse J. Lewis, Sr.
In 2012, the Water Works Board approved and authorized an agreement with Mike Mason’s company, Forensic CPA, LLC. Mike Mason was charged with the responsibility of reviewing various internal control systems so the Water Works Board could take full advantage of opportunities for improvement and provide litigation support regarding issues associated with a pending lawsuit from former fire hydrant crews.
The Board was so disturbed by the report that they instructed the chief staff members to go through the report to point out any inaccuracies in the report. At a special call meeting last Friday, held at the Water Works Board office, a presentation was given by senior management wherein they discussed the report in its entirety. They also pointed out that many of the items under discussion had already been resolved, or put a policy in place to resolve them.
For example:
2008 Cashier’s Deposit Shortage: One cashier was short by $1,993.09 after balancing cash register. Management adhered to the policy on shortage and overage in cashiering operation. Management terminated employee and recovered 50 percent of the loss from former employee. Executive Committee reviewed report and resolution had been prorated in the July 10, 2009 minutes.
2008 Education Assistance Program Report (EAP): Several deficiencies were identified related to the revised EAP policy and procedures including:(a) incorrect dollar amount issued on one employee’s 1099;(b) employees that resign or leave the company are required to reimburse BWW for any tuition costs incurred in last two years of employment. One employee did not reimburse after separation of employment; one employee exceeded BWW lifetime balance; six employees exceeded IRS limit and one employee reimbursed for non-qualifying expenses. The Executive Committee reviewed findings and it had been resolved in the July 10, 2009 minutes. In addition the operating procedure was revised to include an exit interview of each employee, updating lifetime rebalances and review worksheet accuracies, established a checklist on all qualifying costs and revised the tuition reimbursement policy.
2008 Reason for Overtime in Meter Shop: Meter Shop Department gave several reasons for their overtime. Findings had been resolved in the July 10, 2009 minutes.
2008 Travel Reimbursement Audit Report: Travel Policy requires all employees to complete a reimbursement form within 30 days of returning from a trip. Several employees did not comply with written travel policy and procedure and management did not take corrective action in a timely manner. Accounting failed to reconcile ledger balance to outstanding travel advances on a monthly basis and accounting reimbursed employees for disallowed expenses. The Accounting Department corrected the deficiencies by completing travel expense reports within 30 days, reconciled outstanding travel advances to general ledger balance and vendor files must be signed in/out by proper employee. The Executive Committee reviewed the findings and the resolution had been reported in the July 10, 2009 minutes.
2008 Payroll Overtime: Identified that BWW spent over the budgeted payroll overtime amount; inadequate monitoring of overtime costs, and to find ways to reduce overtime. Dept. managers were disciplined for failure to monitor overtime hours and costs; reorganized to improve labor hours and implemented an automated time and attendance system to track overtime better. The Executive committee reviewed findings and the resolution was reported in the May 7, 2010 minutes.
According to the General Manager, Mac Underwood, his plans are to obtain advice from an independent auditing firm to review Mike Mason’s report and the senior management’s report. This should confirm the accuracy of the report.
The Water Works Board believes in transparency and they are in the process of meeting with every group that is presently being served and answering all questions and concerns as they relate to the Birmingham Water Works credibility and accountability.
email: jjlewis@birminghamtimes.com
