Audit Finds Billing & Collection Issues At Baltimore City Department Of Public Works
BALTIMORE (WJZ) -- The Baltimore City Department of Public Works (DPW) is struggling with billing and collections issues—in part due to a lack of processes in place, according to a new audit report.
City Auditor Josh Pasch revealed the extent of the oversight issue in the Biennial Performance Audit for the Department of Public Works, which he presented at the Board of Estimates meeting on Wednesday.
Auditors focused on fiscal years 2019 and 2020. Their findings provide a snapshot assessment of whether DPW had adequately addressed water billing risks or followed up on recommendations that were included in previous audits.
The audit, based on interviews with key members of the DPW and the Baltimore City Information Technology department, reviewed policies and procedures concerning the water billing process, and evaluated DPW's risk assessment capabilities.
Auditors determined the city does not take proactive measures to increase water revenue collections, and that there are no processes in place to collect from delinquent accounts, among other issues outlined in the report.
For example, DPW could not show how much it had billed customers during the fiscal period covered in the audit report. But revenue collections were more clear, allowing auditors to see that DPW collected $177 million in fiscal year 2019 and $212 million in fiscal year 2020.
"We need accurate information from DPW in order to eliminate mistakes in the billing process, collect revenue on time and target egregiously delinquent accounts," Comptroller Bill Henry said.
The report recommends that DPW "collect its data more accurately and share those statistics" with city officials so that they can "consider ways to maximize revenue collection."
"We cannot properly run our city if there isn't a clear understanding of who oversees collecting revenue and how it is done," Henry said. "It's especially important to have this information moving forward as we implement the Water Accountability and Equity Act."
Investigators noted that their assessment was only the initial phase of the comprehensive water billing review.
"While we're trying not to charge more than our lower-income residents can afford, it's important that we actually collect what we're due from those who can," Henry said.
The Department of Audits reviewed DPW's information technology, water meter shop and customer service support division, too. It has offered performance recommendations for each sector.
This is the fourth of seven performance audits that are part of the 2021 Biennial Audit plan approved by the Biennial Audits Commission.