BIRMINGHAM, Ala. (WIAT) — Inadequate record keeping, lack of accountability and poor cost tracking are just some of the problems plaguing the Birmingham Water Works Board.
The Board calls the report appalling, and board members say they are disappointed they were not given the opportunity to review the report they requested before it was released.
The fraud-risk report was prepared by Michael Manson of Forensic CPAs.
He was hired in September of 2012 after several employees were fired amid allegations of an overtime pay scheme.
Mason’s report says the policies and procedures that address dishonest and unethical behavior are inadequate.
The report goes on to say “supervisors, managers and at least one assistant general manager have been instructed not to question overtime approved by an employee’s direct supervisor.”
As for proper account and cash handling procedures, Mason says “the person who opens the mail does not prepare a list of all checks and cash received.
Mason also says the company does not use a lockbox service for cash receipts, and customers that are involved in voided sales and refunds are not randomly contacted to verify the accuracy of the transaction.
Birmingham Water Works issued a response today saying “a number of the outlined issues illustrated in the assessment have already been corrected. Some will take a bit longer to address while others are merely opinion-driven.”
CBS42 has reached out to Michael Mason for a comment on his report and how it was released, but so far we have not received a response.
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