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, 2023.
RECOMMENDATION
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Accept and file the NVWMA Internal Audit Report for the quarter ended December 31, 2023.
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EXECUTIVE SUMMARY
The Auditor-Controller Internal Audit Division has completed the quarterly monitoring report for the quarter ended December 31, 2023 as requested by the Napa-Vallejo Waste Management Authority (Authority). The report is attached for your review.
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 2023-24.
The engagement was conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (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 (Central Collections) collection measures for any accounts receivable over 90 days past due if the balance due exceeds $250.
3. Report cash (shortage) / overage 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, 2023.
In addition, Treasurer-Tax Collector’s collection measures and efforts appear reasonable with Accounts Receivables exceeding 90 days decreasing from $11,216 in the previous quarter to $4,435 this quarter.
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 $982 for the quarter due to customer disputes, a returned check, refunds, and billing adjustments.
Please see the attached report for additional details.