Memorandum

City of Lawrence

City Auditor

 

TO:

Members of the City Commission

 

FROM:

Michael Eglinski, City Auditor

 

CC:

David L. Corliss, City Manager

 

Date:

October 1, 2009

 

RE:

City Auditor Update on Solid Waste Performance Audit Scope

 

 

I completed the planning work for a performance audit of Solid Waste.  This memo provides some background on solid waste services and identifies three general audit issues that I plan to address in the audit work.  I am presenting the information to the City Commission to clarify the direction of the project and provide an opportunity to answer any questions about the work.

 

Concurrent with the solid waste performance audit, I am working on a preliminary review of the Police Department’s administrative bureau, and reviewing a sample of purchase card transactions.

 

Solid Waste Background

The city provides a wide range of solid waste services to residential and commercial customers.  Services include collecting waste from residences and commercial properties, collecting yard waste, providing drop off recycling, collecting recycling from commercial customers, and offering household and small generator hazardous waste services.  The city bills residential and commercial customers for the services.

 

Residential customers express high satisfaction with trash and yard waste services.  In the 2007 citizen survey, most of the respondents (82 percent) were satisfied or very satisfied with trash and yard waste services.

 

Management reports a relatively high level of recycling, with a 35 percent recycling rate in 2007.

 

Over the last six years, solid waste expenses grew faster than revenues.  In 2008, expenses were about $750,000 more than revenues.

 

 

2003

2004

2005

2006

2007

2008

Revenue

7,886,564

8,103,517

8,350,141

8,823,585

8,997,834

9,281,014

Expense

7,218,375

7,817,606

8,395,807

9,146,491

9,593,230

10,048,229

 

The city uses a “task incentive” for some of the solid waste services.  Under the approach, employees can end their day when they’ve completed their assigned work even if that results in a work day of less than 8 hours.  Those workers’ pay is based on a full 8-hour day.

 

Audit issues