10C Action 2007 0604 - Laserfiche WebLink

Home

EXHIBIT 4 ACFD Review of Internal Control Procedures March 21, 2007 Page 2 of3 Purchasing Activities The review of purchase activities looked at general purchases, use of credit cards, overall authorization and check disbursement process, as well as the Department's compliance with existing policies. In accordance with the Department's Financial Policies and Procedures, "(i)f approved by the County Auditor's Office, all payments and checks to vendors are issued and mailed by the County Auditor-Controllers Office. The Fire Department issues NO checks or payments to any vendor." (See attached: Administrative Volume I, Section III - Purchasing, Page 13). Adequate controls for purchases requests, authorization, processing, and reconciliation appear to be in place and are appropriately independent. The four primary methods for which a purchase may be made include an authorized purchase order, personal service contract, credit card, or petty cash. In the Department's Administrative Volume I, a written procedure also exists for each purchase type shown below: Purchase Type: Purchase Order: $ Amount < $1 OOk one-time and recurring >$100k aggregate < $25k Approver GSA & Department Board of Supervisors HR Service Agency, County Counsel, and GSA Purchasing Board of Supervisors Personal Svc Contract: Credit Card Petty Cash > $25k $3k maximum single < $50 single For all routine purchases, Department purchasing staff will submit requests and justification to the County GSA andlor Auditor's Office for processing. Authorization is independent with these two agencies and is required before the Department can proceed with a purchase. The County- Auditor-Controller's Office will process payment only upon receipt of original invoice and confirmation of delivery from an original packing slip or delivery receipt. During a specific inquiry regarding previous Chief McCammons use of two Blackberry phones, Chief Gilbert provided verbal confirmation that McCammon's Department paid phone had been shut-off and that his second phone was never an expenditure of the Department. Ms. McCammon's use ofa Blackerry was unknown and has never been paid by or part of the Alameda County Fire Department system. Independent Oversight Independent oversight involved looking at role of the Auditor-Controller, and the frequency and type of internal audits that take place, and the requirement of an independent financial audit. Although the Department had an independent fmancial audit performed for the year ended June 30,2003, the requirement for an annual financial audit of the Department is not required as it falls under the umbrella of the County's annual independent audit process. Audits for FY's