Audit finds gaps in Glendale Fire Prevention Bureau billing, recommends system and oversight fixes

Principal internal auditor Natalie Menami Valdivia presented the audit committee with the Fire Prevention Bureau revenue recovery audit part 1 for the quarter ended Dec. 31, 2025, saying the review identified 10 opportunities for improvement across administrative oversight, billing and collections, regulatory compliance and systems. The audit covered EMC revenue activity from July 1, 2024, through June 30, 2025.

The auditor told the committee that the EMC’s primary revenue sources are permit issuance and inspection fees and that the hazardous disposal fund had 2025 budgeted revenue of about $2,500,000, expenses of $2,000,000 and a projected 2025 ending balance of $4,800,000. The audit team identified instances of unbilled work and missing fees, including 21 missing required fees and 46 inspections recorded in the digital health system that were not invoiced. "We identified 10 opportunities for improvement," Valdivia said. "Key reports had not been identified and reconciliations were not being performed to detect unbilled services or misstated accounts receivable." (Natalie Menami Valdivia, principal internal auditor.)

The report flagged an accounts-receivable balance of roughly $601,000, of which about $269,000 (around 45%) was aged more than three years. The audit recommended establishing formal referral procedures to collections, reviewing the 214 accounts on the aging report, prioritizing the roughly 100 accounts aged over three years for collectability, and initiating write-offs where appropriate. The audit also found inconsistent late-fee practices for off-cycle accounts and recommended standardizing penalty timelines and monitoring compliance with payment plans.

On regulatory compliance the audit observed an average of about 469 days for unresolved Class 1 violations and recommended a fee structure for Class 1 violations to recover oversight costs and encourage timely hazard resolution. The review also noted a seven-year lapse in a successor contract with La Cañada Flintridge for household hazardous waste services; although a new contract executed in August 2025 exists, the audit recommended a formal cost-recovery analysis for the $50–$55 per-vehicle rate.

Valdivia said systems and infrastructure are fragmented across five platforms — InterGov, NorthStar, Digital Health Department, the California Environmental Reporting System and Munis — creating manual reconciliation work and limiting online payment options. The audit recommended a feasibility study to centralize inspection, billing and reporting and to evaluate a secure online payment gateway.

Committee members pressed for who would perform reconciliations and whether departments had sufficient staffing to implement recommendations. Fire Marshal Jovan Diaz and Chief Brooks (who were introduced during the presentation) described a mix of civilian staff who track revenues and ongoing coordination with Glendale Water and Power for billing. Valdivia emphasized the audit function will follow up quarterly; several priority-1 items have anticipated completion dates of March 31, 2026. "We will go through quarterly follow-ups and adjust time frames if departments cannot complete them," Valdivia said. (Natalie Menami Valdivia.)

The audit presentation concluded with committee discussion of adding items to future risk assessments and work plans — including the possibility of reintroducing a CDBG review — and with staff committing to quarterly follow-up on outstanding items and status reporting to the committee.

Next steps: internal audit will continue quarterly follow-ups and departments are expected to implement the recommendations with many priority items targeted for completion by March 31, 2026.