TITLE
Recommendation to receive and file the Parking Citations Collection Process Audit Report; and request management to review the recommendations, develop strategies for implementation, and update the City Auditor as to the status of the recommendations within six months from the date of receipt and filing of this report.
DISCUSSION
The Office of the City Auditor (OCA) completed a review of the efficiency and effectiveness of the City's parking citations collection process and the reliability of its parking citation system.
When Parking Citations transferred to Commercial Services Bureau within Financial Management in October 2010, new management immediately recognized that significant system issues and limitations exist, which affects their ability to manage and collect outstanding citations. We commend Commercial Services management for their efforts as they attempt to implement incremental solutions. However, incremental improvements will never enable the City to adequately manage and perform all necessary collection efforts on parking citations. Management is considerably hampered by an antiquated software system, and as a result, the City currently has approximately $17.6 million in outstanding citations that are three years old or less.
While we understand City resources are limited at this time, it is important the City begins planning to provide Commercial Services with a new software system that possesses adequate functionality and reporting capabilities. Deferral of this issue will continue to result in lost revenue, which could be used to restore recently reduced General Fund services. We are requesting the City Council to provide the necessary resources to obtain new or upgraded software to safeguard annual revenue of $13 million with the potential for collecting much more.
Detailed information regarding the results discussed above is included in the attached report. We want to thank management for their cooperation and appreciate their efforts and initiative to make improvements within parking citation operations.
TIMING CONSIDERATIONS
City Council approval is requested on April 3, 2012.
FISCAL IMPACT
In FY11, Parking Citations collected over $13 million after processing approximately 345,000 citations. As of February 2012, unpaid citations three years old or less totaled approximately $17.6 million. Management's efforts to address the recommendations outlined in the report will assist in securing these additional potential revenues.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LAURA L. DOUD
CITY AUDITOR