TO: Honorable Board of Directors
FROM: Christopher Celsi, Executive Director
REPORT BY: Tracy Schulze, Auditor-Controller
SUBJECT: Napa-Vallejo Waste Management Authority - Internal Audit Report for the Quarter Ended December 31, 2024
RECOMMENDATION
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Executive Director requests acceptance of Napa-Vallejo Waste Management Authority - Internal Audit Report for the quarter ended December 31, 2024.
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EXECUTIVE SUMMARY
Staff recommends acceptance of the Quarterly Monitoring Internal Audit Report for Napa-Vallejo Waste Management Authority for the quarter ended December 31, 2024.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The Authority has engaged Napa County Auditor-Controller’s Office to perform a quarterly monitoring over internal controls during fiscal year 2024-25. The engagement was conducted in conformance with the Global Internal Audit Standards (Standards) established by the Institute of Internal Auditors. These Standards require that we identify, analyze, evaluate, and document sufficient information and evidence to achieve our objectives, and that the internal audit activity be independent, objective, and perform engagements with proficiency and due professional care.
The primary objectives of this engagement were to:
1. Determine if internal controls over fees, collections, manual (hand tags) tickets, void and replacement tickets were adequately designed and implemented.
2. Report Treasurer-Tax Collector’s collection measures for any accounts receivable over 90 days past due if the balance due exceeds $250.
3. Report cash overage / (shortage) from cash/check and credit card transactions.
Based on our review, internal controls over revenue and accounts receivable appears to be adequately designed and implemented as of December 31, 2024.
The Treasurer-Tax Collector’s collection measures and efforts appears reasonable. Accounts Receivable exceeding 90 days with a balance of more than $250 is currently at $21,729. The total in Accounts Receivable is comprised of five non-franchise haulers and is largely due to one customer. (Exhibit B)
A reconciliation of all cash and credit card transactions between Northern’s cash reports and Treasury’s journal entries found a net cash shortage of $13 for the quarter. (Exhibit A)
Please see the attached report for additional details.