Comptroller audit finds weaknesses in controls for DPW parking structures; department accepts recommendations

The City of Milwaukee Comptroller’s Office presented an internal audit on March 20 that found weaknesses in internal controls for Department of Public Works-managed parking structures and recommended seven corrective actions. Department staff accepted the findings and described steps to improve monitoring and reconciliation.

Auditors from the comptroller’s office told the Public Works Committee the review covered revenue activity from Jan. 1 through June 30, 2024, and analyzed about $3.1 million in revenue tied to five city-owned structures operated by outside contractors. Anna Gutierrez, an auditor on the engagement, summarized the conclusion: "the controls were not adequately designed or operating effectively during the scoping period." The audit identified late or missing contractor deliverables, gaps in procedures and limitations that prevented independent validation of some monthly revenue remittances.

Key findings highlighted by the audit included: - ABM (a contracted operator) did not submit required annual operating plans and annual performance reports on the contractor schedule; DPW received monthly activity reports but not the formal annual documentation called for in the contract. - Deer District LLC submitted an annual budget and two monthly split-revenue payments late during a personnel transition. - DPW lacked a documented set of procedures for daily operations and maintenance oversight of parking structures; ABM similarly did not provide detailed written operating guidelines for customer service, rates, technology, security and maintenance. - There was insufficient documentary evidence to independently confirm monthly prepaid…