Number
001488
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. GORDON
Title
Substitute resolution authorizing an audit of the Department of Public Works.
Analysis
This resolution authorizes the City Comptroller to perform, in cooperation with a private auditing contractor, an audit of Department of Public Works operations and financial controls. The audit shall be funded by the City Comptroller's professional services account. A final report of the audit findings shall be submitted to the Common Council no later than September 5, 2001.
Body
Whereas, Under the adopted 2001 City Budget, the Department of Public Works has the 2nd-largest full-time equivalent staff and the 2nd-largest budget of any City of Milwaukee department; and
Whereas, Services provided by the Department of Public Works and its various divisions affect the quality of life of every Milwaukee resident on a daily basis; and
Whereas, Because of the relative size of the Department of Public Works, the Department's financial and operational performance and efficiency can have a substantial impact on the financial health of the City; and
Whereas, The Department of Public Works uses reimbursable accounts to charge for services rendered to or on behalf of other City departments; and
Whereas, When the amounts charged to these reimbursable accounts exceed the funds that City departments have available to pay for Department of Public Works services, a problem of "unbilled reimbursables" or "overspending" results, and the City may have to borrow money to pay its bills; and
Whereas, The City's independent auditor, KPMG Peat Marwick LLP, is currently preparing a report analyzing the City's use of reimbursable accounts and the extent of the "unbilled reimbursables" problem; and
Whereas, The amount of "overspending" by the Department of Public Works through reimbursable accounts will be further known when the City's 2000 financial books are closed in March, 2001; and
Wh...
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