audit_findings: 7

This data as json

rowid	source	report_number	finding_number	muni_id	state	entity_name	entity_type	entity_ext_id	place_geoid	match_method	auditor	report_title	audit_type	fiscal_year	period_start	period_end	published_date	finding_category	severity	questioned_cost	cost_basis	finding_title	finding_text	report_url	fetched_at
7	wa-sao	1020019	2016-001	4	WA	City of Seattle	City/Town	0433	5363000	geoid_place	Washington State Auditor's Office	Financial and Federal audit — City of Seattle	Financial and Federal	2016	2016-01-01	2016-12-31	2019-08-19	internal_controls				The City did not maintain adequate processes and controls within the Customer Care and Billings system to ensure proper security roles were maintained and provide reliable reporting	Background City management is responsible for designing and following internal controls that provide reasonable assurance regarding the reliability of financial reporting. A certified public accounting firm audited the fund financial statements of the City of Seattle City Light Department and provided its report to our Office. In accordance with auditing standards, we are responsible for reporting internal control deficiencies that affect the City’s financial reporting. Descrip tion of Condit ion The certified public accountant firm’s report identified the following significant deficiency in internal controls over financial reporting: “The financial internal control documentation associated with the CCB [Customer Care and Billings] implementation was incomplete as of the financial statement d ate. In addition, the D epartment’s internal audit personnel was involved in the design and rollout of the IT [Information Technology] security controls in the system. It was also noted that reliable billing system reports were not available in the new system and the processes and controls surrounding the billing/revenue adjustments was not consistently maintained during 2016.” Cause of Condition “The Department did not update previously provided internal control documentation during the pre- and post-implementation phases of the CCB implementation within the finance division.” Effec t of Conditi on “Internal audit personnel was also involved in several IT implementation roles of the system which decreases the reliance that can be placed on future work of the in ternal audit department related to security ov er the CCB system. In Washington State Auditor's Office addition, r eliable reporting tools were created with limited verification of accuracy during the implementation and billing system adjustments were not reviewed during the year.” Rec omm endations The certified public accountant firm recommended the following:  Document financial, physical and IT processes and controls associated with CCB.  Assign a new Security Administrator for CCB outside of the internal audit department.  Limit reliance on future internal audit work related to security over the CCB system.  Identify key roles and functions of IT personnel associated with the CCB system.  Create and verify accurate billing system reports surrounding revenues, accounts receivable, billing consumption and billing adjustments.  Implement and monitor a process for the review and approval of customer billing and accounts receivable adjustments. City’s Respo nse We appreciate the CPA firm’s observations and recommendations in regards to the recently implemented CCB billing system and agree that improvements can be made to enhance the areas noted above. Overall, we believe the implementation of the CCB billing system was successful and Department staff are determined to improve daily operations during 2017. Following is some of the work in progress: 1. Document financial, physical and IT processes and controls associated with CCB. Response: Work on internal controls documentation is in progress and th e goal is to complete by the end of 2 nd quarter 2017. The Department’s Business Technology Solutions team is the lead. 2. Assign a new Security Administrator for CCB outside the internal audit department. Response: Effective in late April 2017, the Department’s Business Technology Solutions has been assigned this responsibility. 3. Limit reliance on internal audit work surrounding the CCB system. Response: The Department’s Business Technology Solutions team has been assigned responsibility for these areas. Washington State Auditor's Office 4. Identify key roles and functions of IT personnel associated with the CCB system. Response: The Department’s Business Technology Solutions team has been assigned the lead to administer CCB billing system related items including identification of key roles and IT functions. 5. Create and verify accurate billing system reports surrounding revenues, accounts receivable, billing consumption and billing adjustments. Response: Work has been in progress since the start of 2017 to improve reporting from the CCB billing system and including for specific items identified. Work is being led by the Department’s Business Technology Solutions team and included end -users from the Department and Seattle Public Utilities. 6. Implement and monitor a process for the review and approval of customer billing and accounts receivable adjustments. Response: The Customer Care Division is in the process of re -evaluating review and approval of customer billing and accounts receivable adjustments . Revised procedures, related documentation, and implementation of these procedures is expected to be completed by June 2017. Audit or’s Rem arks We appreciate the City’s commitment to resolve the identified condition and thank City personnel for their cooperation and assistance during the audit. Appli cable Laws and Regulat ions Government Auditing Standards, December 2011 Revision, paragraph 4.23 states: 4.23 When performing GAGAS financial audits, auditors should communicate in the	https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1020019&isFinding=false&sp=false	2026-07-30 13:24:54