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Internal audit reports inventory improvements and retirement‑plan review; procedures set for trash hauler procurement
Summary
Fayetteville’s internal audit found no major issues in a retirement‑savings‑plan reconciliation, reported inventory‑count improvements after procedural changes, and supported new procedures for recycling and trash contract review; auditors plan follow‑up counts and reports.
Speaker 7, the city’s internal auditor, reported that a retirement‑savings‑plan review and reconciliation is complete and that HR is reviewing the draft report; no issues were identified to date.
Speaker 7 described operational work across departments: development of procedures for reviewing contract haulers in the recycling and trash collection division, assistance on implementation of a new fueling system for fleet operations and a planned preliminary fuel inventory count, and a completed water/sewer inventory test count. The internal audit found a previous overall variance of -3.06% at final counts; after instituting biweekly counts of high‑value parts and manager recounts, the variance dropped to about 0.5%.
Speaker 7 explained inventory procedures used to reduce discrepancies, including separating zero‑quantity items for manager verification, conducting blind counts across teams to prevent expectation bias, and performing manager recounts for items with large discrepancies. Speaker 7 said the internal audit will continue follow‑up counts and intends to present a formal retirement‑plan report at the next meeting after HR review.
Board members asked about obsolescence, storage of rarely used items (for example, unused sewer pipe stock), and the trade‑offs of overnight warehouse staffing to reduce theft or night‑time removal; Speaker 7 noted cost concerns about overnight staff and emphasized procedural controls instead.
Next steps: internal audit will present the finalized retirement‑plan report and continue scheduled physical inventory counts, manager recounts, and follow‑up on surplus or obsolete items.
