FOAC accepts El Paso International Airport accounts payable audit, notes controls gaps

The Financial Oversight and Audit Committee unanimously accepted and voted to forward to City Council the internal audit of El Paso International Airport accounts payable (audit A2025-02), after staff described procedural weaknesses and corrective actions. The motion passed 3-0.

The audit, presented by Mondo Calderon, chief internal auditor for the City of El Paso, covered transactions from Sept. 1, 2023, through Aug. 31, 2024. Calderon said the review sought "to determine if transactions are processed in accordance with policy, determine if appropriate documentation supports the transactions, determine if transactions are reviewed and approved, determine if there are any unallowable purchases" and whether the airport "operates within budgetary limits" and maintains adequate internal controls.

Calderon told the committee auditors issued three findings. First, airport accounts-payable procedures were out of date, referenced obsolete job titles and still described a fuel card that the airport no longer uses; the airport uses a fob system instead. The audit recommended updating procedures to reflect current practice. Airport staff agreed to review and align the airport's accounts-payable procedures with the City of El Paso policy and to complete updated procedures within nine months.

Second, auditors identified 52 invoices paid between Nov. 13, 2023, and Nov. 7, 2024, for uniform-rental charges tied to a former employee, totaling $744.92. Tony Nevadas, aviation director, explained the airport had used rental programs because new hires sometimes left before purchased uniforms arrived, and "we met with a company that said we'll be able to issue those. We'll launder them for you, and we'll bring them." Nevadas said the airport is phasing out rentals and moving toward purchasing uniforms; he said turnaround for purchased, embroidered uniforms is now about one to two months, down from as long as eight months previously. The airport will require division managers to submit lists of authorized invoice approvers annually, with the first list due April 18, 2025.

Third, auditors found payment-timing and duplicate-payment issues. The audit reviewed a sample of invoices and found 11 of 30 (about 36.6%) in the sample were not paid within 30 days as required by the Texas Prompt Payment Act. Auditors also identified five duplicate payments (0.16% of the invoices analyzed); refunds totaling $1,586.68 had been obtained, while one duplicate payment of $147.50 had not been refunded as of the report date. Calderon said the airport began using monday.com on March 1, 2025, to upload and track invoices among divisions to help meet the 30-day requirement.

Committee members pressed staff on causes and remedies. Questions focused on why rentals had been used, how a former-employee rental billing ran for a year, procurement routes for uniforms and whether the city uses cooperative purchasing. Legal counsel and staff said recovery of refunds is a separate collection effort from the committee's vote to accept the audit; legal staff agreed to continue collection efforts and report back, but FOAC members did not tie refund collection to approval of the audit.

The audit conclusion stated the airport maintained documentation and approvals in many areas and operated within budget, but did not meet audit objectives related to updated procedures, consistent adherence to the city's 30-day payment requirement and controls to prevent duplicate or unauthorized payments. The committee accepted the auditor's request to forward the report to City Council for action.

The committee vote to accept and forward the airport accounts payable audit was recorded as 3 to 0 in favor.