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Fresno finance staff report progress implementing Price Page internal-control recommendations
Summary
Assistant Controller Caleb Newfield told the City of Fresno's Finance & Audit Committee that the finance department has implemented most recommended internal-control improvements from a Price Page review covering accounts payable, utility billing and collections, and business tax and license.
Assistant Controller Caleb Newfield told the City of Fresno's Finance & Audit Committee that the finance department has implemented most recommended internal-control improvements from a Price Page & Company review completed in late 2023 and presented follow-up actions on accounts payable, utility billing and collections (UB&C), and business tax and license.
The recommendations were intended to strengthen segregation of duties, improve controls over payments and deposits, reduce duplicate payments, and enhance customer service and reporting. Newfield told the committee the department has updated standard operating procedures, instituted ongoing training, added key performance indicators, and implemented specific controls to address the report's findings.
On accounts payable, Newfield said the department has:
- Implemented new and updated standard operating procedures that clearly define accounts payable activities and roles. - Begun weekly internal training sessions for AP staff on procedures and new controls. - Transitioned vendor management responsibilities to the purchasing department to improve separation of duties. - Implemented a pre-payable-cycle control to identify duplicate payments, introduced in 2023. - Implemented workflow logic to prevent users from approving their own inputs; analysis of approval thresholds is ongoing.
Newfield said, "We have implemented new and updated standard operating procedures that further define policies and procedures within or for all activities within the accounts payable section." He added that staff monitor AP performance daily with reports that show average invoice age, invoice volumes by department and vendor, and other KPIs.
On utility billing and collections and business tax and license, Newfield said the department is:
- Updating and aligning standard operating procedures and onboarding/training materials. - Cross-training staff on the utility billing software to reduce key-person risk. - Creating new reports and KPIs to better identify delinquent accounts and target outreach. - Implementing daily deposit reconciliation and additional cash-handling controls; a dual-custody cash-handling policy was implemented in fall 2023. - Improving online application forms (an abbreviated form to expedite online account creation) and promoting electronic payment options; a targeted outreach campaign is planned in coordination with the Department of Public Utilities' marketing resources.
Newfield also noted technological improvements: an upgraded call-tracking system and collaboration with the Department of Public Utilities to explore options for more accurate automatic meter readings and potential cost-benefit upgrades for meter-reading technology.
On the whistleblower hotline recommended by Price Page, staff said they are still evaluating options and a timeline is not finalized. City leadership emphasized the need to design any hotline process so it channels non-financial, operational complaints to the correct department and avoids overburdening a small finance staff.
City management reported additional follow-up reviews are nearly complete for accounts receivable, grants management, payroll and treasury; staff additions to internal audit capacity were described as freeing up the team to continue work on other departmental audits.
Committee members asked about digital access and equity when promoting electronic bills and payments. Staff acknowledged a segment of the population prefers paper billing and said the city will continue to provide paper bills while pursuing targeted outreach to customers already using electronic services. No formal committee votes were taken on the control updates; the report was received for information and follow-up.
Ending: Chair Esparza and committee members thanked finance staff for the implementation work and asked staff to return with additional updates on remaining open items, including a proposed approach and timeline for the whistleblower hotline and the ongoing workflow-threshold analysis.
