{"database": "mytown-research", "table": "audit_findings", "rows": [[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 \u2014 City of Seattle", "Financial and Federal", 2016, "2016-01-01", "2016-12-31", "2019-08-19", "internal_controls", null, null, null, "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 \nCity management is responsible for designing and following internal controls \nthat provide reasonable assurance regarding the reliability of financial reporting. \nA certified public accounting firm audited the fund financial statements of the \nCity of Seattle City Light Department and provided its report to our Office. \nIn accordance with auditing standards, we are responsible for reporting internal \ncontrol deficiencies that affect the City\u2019s financial reporting. \nDescrip tion of Condit ion \nThe certified public accountant firm\u2019s report identified the following significant \ndeficiency in internal controls over financial reporting: \n\u201cThe financial internal control documentation associated with the CCB \n[Customer Care and Billings] implementation was incomplete as of the financial \nstatement d ate. In addition, the D epartment\u2019s internal audit personnel was \ninvolved in the design and rollout of the IT [Information Technology] security \ncontrols in the system. It was also noted that reliable billing system reports were \nnot available in the new system and the processes and controls surrounding the \nbilling/revenue adjustments was not consistently maintained during 2016.\u201d \nCause of Condition \n\u201cThe Department did not update previously provided internal control \ndocumentation during the pre- and post-implementation phases of the CCB \nimplementation within the finance division.\u201d \nEffec t of Conditi on \n\u201cInternal audit personnel was also involved in several IT implementation roles \nof the system which decreases the reliance that can be placed on future work of \nthe in ternal audit department related to security ov er the CCB system. In \n \n \nWashington State Auditor's Office \naddition, r eliable reporting tools were created with limited verification of \naccuracy during the implementation and billing system adjustments were not \nreviewed during the year.\u201d \nRec omm endations \nThe certified public accountant firm recommended the following: \n\uf0b7 Document financial, physical and IT processes and controls associated with \nCCB. \n\uf0b7 Assign a new Security Administrator for CCB outside of the internal audit \ndepartment. \n\uf0b7 Limit reliance on future internal audit work related to security over the CCB \nsystem. \n\uf0b7 Identify key roles and functions of IT personnel associated with the CCB \nsystem. \n\uf0b7 Create and verify accurate billing system reports surrounding revenues, \naccounts receivable, billing consumption and billing adjustments. \n\uf0b7 Implement and monitor a process for the review and approval of customer \nbilling and accounts receivable adjustments. \nCity\u2019s Respo nse \nWe appreciate the CPA firm\u2019s observations and recommendations in regards to \nthe recently implemented CCB billing system and agree that improvements can \nbe made to enhance the areas noted above. Overall, we believe the \nimplementation of the CCB billing system was successful and Department staff \nare determined to improve daily operations during 2017. Following is some of \nthe work in progress: \n1. Document financial, physical and IT processes and controls associated \nwith CCB. Response: Work on internal controls documentation is in \nprogress and th e goal is to complete by the end of 2 nd quarter 2017. The \nDepartment\u2019s Business Technology Solutions team is the lead. \n2. Assign a new Security Administrator for CCB outside the internal audit \ndepartment. Response: Effective in late April 2017, the Department\u2019s \nBusiness Technology Solutions has been assigned this responsibility. \n3. Limit reliance on internal audit work surrounding the CCB system. \nResponse: The Department\u2019s Business Technology Solutions team has been \nassigned responsibility for these areas.\nWashington State Auditor's Office \n4. Identify key roles and functions of IT personnel associated with the \nCCB system. Response: The Department\u2019s Business Technology \nSolutions team has been assigned the lead to administer CCB billing \nsystem related items including identification of key roles and IT \nfunctions. \n5. Create and verify accurate billing system reports surrounding \nrevenues, accounts receivable, billing consumption and billing \nadjustments. Response: Work has been in progress since the start of \n2017 to improve reporting from the CCB billing system and including \nfor specific items identified. Work is being led by the Department\u2019s \nBusiness Technology Solutions team and included end -users from the \nDepartment and Seattle Public Utilities. \n6. Implement and monitor a process for the review and approval of \ncustomer billing and accounts receivable adjustments. Response: The \nCustomer Care Division is in the process of re -evaluating review and \napproval of customer billing and accounts receivable adjustments . \nRevised procedures, related documentation, and implementation of \nthese procedures is expected to be completed by June 2017. \nAudit or\u2019s Rem arks \nWe appreciate the City\u2019s commitment to resolve the identified condition and \nthank City personnel for their cooperation and assistance during the audit. \nAppli cable Laws and Regulat ions \nGovernment Auditing Standards, December 2011 Revision, paragraph 4.23 \nstates: \n4.23 When performing GAGAS financial audits, \nauditors should communicate in the", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1020019&isFinding=false&sp=false", "2026-07-30 13:24:54"]], "columns": ["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"], "primary_keys": ["rowid"], "primary_key_values": ["7"], "units": {}, "query_ms": 10.009249002905563, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}