Friday, July 22, 2011

PMUA Audit, Severance Pay Invite Scrutiny

A PMUA audit report for the year ending Dec. 31, 2010 appeared in the Courier News Wednesday, with eight recommendations in categories of billing and collections, accounting and financial reporting and administrative policy.

Auditors only point things out, usually in a very circumspect way. For example, the tone the report takes on travel and business reimbursements just calls for "continued efforts" to make sure employees adhere to guidelines and policies approved by the board of commissioners (some of whom have run up fairly substantial tabs themselves, according to DumpPMUA findings).

Meanwhile, as reported by Dan, DumpPMUA has made public the first severance payment of $275,000 to departed PMUA Executive Director Eric Watson and Deputy Director Dave Ervin. Many questions remain on that issue, including how the payment relates to their contracts and why the resolution leaves open a further payout.

Here are the audit recommendations:

It is recommended that:

Purchasing and Accounts Payable

1. A review be made of all time and material contracts to ensure vendor invoices provided for payment are sufficiently detailed in accordance with approved contract terms.

2. Procedures be implemented to reconcile monthly vendor invoices for gasoline purchases to individual gas receipt tickets received by Authority personnel.

Billing and Collections

3. A review be made of all solid waste container service contracts to ensure updated contract addendum be prepared and filed to reflect current services being provided at the current approved rates and fees.

Accounting and Financial Reporting

4. The Authority's Solid Waste Bond Trustee transfer the excess funds in the General Fund Account into the Revenue Bond Service Fund Account in accordance with the requirements of the bond resolution.

5. The Authority review the requirements under its office space lease agreement to have a year end reconciliation prepared of the escalations and related costs for the year.

6. Greater care be taken in accounting for compensated absences on personnel records and calculations be reviewed to ensure they agree to approved employment contracts.

Administrative Policy

7. Approved sewer rates and fees be formally memorialized in the sewer and solid waste rules and regulations.

8. Continued efforts be made to ensure employee travel and business reimbursements be made in accordance with the business travel and reimbursement guidelines and policies approved by the Board.

The City Council has just approved formation of a task force to look into PMUA operations and report back to the governing body in four months. This somewhat drastic move regarding an autonomous authority is the result of the failure of PMUA officials to meet with the council after several requests in 2010. Perhaps these audit findings and the severance pay questions give more urgency to the council's need to know more about what's going on with the authority, as it serves almost all city households' solid waste and sewer service needs (some have opted out of PMUA solid waste pickup with the help of DumpPMUA).

--Bernice

3 comments:

  1. Yes Bernice our efforts have always been to have others really look at the PMUA and its operations to see whether "dumping" them is the only way to deal with them. One thing I have been very proud of is that the information we put out is always based on truth and can be obtained by anyone under OPRA. Many individuals, some in our local government, have accused us of having political interests and motives which is ridiculous. We have been exposing the PMUA for years now and have been very careful not to endorse any political candidate.

    The bottom line is that anyone who looks closely at the operations of the PMUA and honestly considers what has been done and is being done will come to same conclusion we have. The PMUA is nothing more than a shell for hooking up friends and family with perks. It is infuriating to think that people who claim to care about this City turn a blind eye to this agency. Our hard earned money could be providing for the many needs of this city and not just for the wants of a few people in higher positions at the PMUA who do not want to pay their own way. We will continue our work undaunted and expose the waste and audacity of people who need to stop thinking they are entitled to handouts. Thanks for writing about this important issue! Ari Charles

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  2. Just stop paying! If they don't pick up the garbage, dump it on the steps of city hall. Someone strong needs to show up as a leader and start a tax strike! If you get enough people together it will make a huge statement and have a powerful effect.
    Blah blah blah gets you nowhere.
    Ball up people!

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  3. @12:26PM We wish we could, but they have lien power and know how to use it. You cannot shame the shameless!

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