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Energy audit finds billing errors and rates opportunities; estimated future savings near $179,000
Summary
An external vendor working with internal audit identified billing errors and inactive accounts; credits and corrections realized nearly $2,000 so far, and the vendor estimates closure and rate-change savings that project roughly $178,995.81 (to be validated by a 12‑month lookback).
The Virginia Beach City Public Schools Audit Committee was told that an energy audit conducted with external vendor Troy & Banks identified billing irregularities and rate-schedule opportunities that could reduce utilities costs across the division.
Karen told the committee Troy & Banks analyzed three years of Dominion Virginia Power and Virginia Natural Gas accounts, identifying several accounts with billing errors and a handful of accounts with no usage that could be closed. "Troy and Banks identified $962 worth of billing errors. When we submitted those billing errors to Dominion Power, they reran the accounts ... and they identified $2,200 worth of billing errors," Karen said. The division has already recognized net credits just under $2,000 in its favor.
The vendor also identified closure savings ($787,000) from accounts with no activity and projected estimated savings from rate changes of just over $175,000. Audit staff said a 12-month lookback will validate whether projected rate-change savings materialize; Troy & Banks will retain access to accounts to perform that validation and the audit is contingency-fee based.
Committee members asked for examples; auditors cited athletic-field accounts and marquee/scoreboard accounts as instances where alternate rate schedules or account closures produced savings. Auditors said, if projections hold, the total additional savings from rate changes and closures could be in the low six figures and the committee will receive a validated update after the lookback.
Audit staff said they will report back after the February lookback to confirm realized savings and will provide an update to the committee at a subsequent meeting.
