Accounts receivable (atlanta fire rescue department and department of parks and recreation) - December 2017
Accounts Receivable (Atlanta Fire Rescue Department and Department of Parks and Recreation)
Released December 2017
Download the Full Report here
Download the Report Highlights here
We undertook this audit because reconciling accounting records to receivables is a key control to detect errors, irregularities, and potential fraud. We became aware of revenue systems outside of the city's Oracle Financial system. We focused on systems in use by the departments of Parks and Recreation and Atlanta Fire Rescue because the departments are responsible for both billing and collecting and we identified risks during preliminary assessments.
Released December 2017
Download the Full Report here
Download the Report Highlights here
We undertook this audit because reconciling accounting records to receivables is a key control to detect errors, irregularities, and potential fraud. We became aware of revenue systems outside of the city's Oracle Financial system. We focused on systems in use by the departments of Parks and Recreation and Atlanta Fire Rescue because the departments are responsible for both billing and collecting and we identified risks during preliminary assessments.
We found:
- Atlanta Fire Rescue did not report all bills issued for collections to the chief financial officer, as required by city code
- Not all receivables were recorded on the city's books, increasing potential for error or fraud
- As of September 2015, receivables in Atlanta Fire Rescue totaled $137,000, with most more than 90 days past due
- Control weaknesses in Atlanta Fire Rescue could affect data accuracy and increase fraud risk
- Department of Parks and Recreation did report bills issued for collections to the chief financial officer
- Participants were allowed to attend programs for which they were not enrolled and therefore may not have been billed
- As of September 2015, receivables in Parks and Recreation totaled $334,000, with most more than 90 days past due
- Neither of the billing and collection systems used in these departments complied with city password policy nor had the departments systematically reviewed user access