Audit Reveals Problems In Utilities Department

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(Sacramento, CA)
Wednesday, June 25, 2008

Council members like Sandy Sheedy said they first want to know what happened to thousands of missing water meters valued at more than a million dollars.   

"Who is the responsible party? Who double checks? We have to have checks and balances everywhere. Was that the problem – there were no checks and balances?"

Sheedy’s question was directed at Marty Kolkin…who conducted an audit of the Utilities Department. His review also found that utilities employees failed to get competitive bids and had questionable expenses. 

"It is my opinion that the Department of Utilities needs to significantly increase management oversight of projects, inventory and debit card usage." 

Kolkin says there was no assigned accountability in the utilities department. The FBI is also investigating the department for an alleged scheme to sell scrap metal on the black market.

Meantime, Assistant City Manager Marty Hanneman says they’ve already put tighter controls on spending.

The city council postponed a vote on the proposed water rate hike until July 22nd.