Metro - File #: 2020-0421

• File #: 2020-0421
• Type: Informational Report
• Status: Filed
• File created: 6/16/2020
• In control: Finance, Budget and Audit Committee
• On agenda: 8/19/2020
• Final action: 8/19/2020
• Title: RECEIVE AND FILE Office of Inspector General (OIG) final reports on the Statutorily Mandated Audit of Miscellaneous Expenses for the Periods July 1, 2019 to September 30, 2019 and October 1, 2019 to December 31, 2019
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Audit, Guidelines, Informational Report, Law enforcement, Payment, Purchasing, Security, Testing

Date	Action By	Action	Result
8/19/2020	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
AUGUST 19, 2020

Subject
SUBJECT: AUDIT OF MISCELLANEOUS EXPENSES FOR THE PERIODS JULY 1, 2019 TO SEPTEMBER 30, 2019 AND OCTOBER 1, 2019 TO DECEMBER 31, 2019

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION
Title
RECEIVE AND FILE Office of Inspector General (OIG) final reports on the Statutorily Mandated Audit of Miscellaneous Expenses for the Periods July 1, 2019 to September 30, 2019 and October 1, 2019 to December 31, 2019

Issue
ISSUE

The Office of the Inspector General (OIG) performed an audit of Metro miscellaneous expense transactions processed from July 1, 2019 to September 30, 2019 and October 1, 2019 to December 31, 2019. These audits were performed pursuant to Public Utilities Code section 130051.28(b), which requires the OIG to report quarterly on the expenditures of the Los Angeles County Metropolitan Transportation Authority (Metro) including its Board of Directors for miscellaneous expenses, such as travel, meals, refreshments, and membership fees.

Background
BACKGROUND

All Metro expenditures are categorized into various expense accounts and recorded in Metro's Financial Information System (FIS). Metro employees have several options for seeking payment for miscellaneous expenses incurred, such as check requests, purchase cards, purchase orders, and travel & business expense (TBE) reports. Each option has its own policies, procedures, or guidelines.
The Accounting Department's Accounts Payable Section is responsible for the accurate and timely processing of payment for miscellaneous expenses.
These audits covered a review of Metro miscellaneous expenses for the period of July 1, 2019 to September 30, 2019 and October 1, 2019 to December 31, 2019. For the quarter ended September 30, 2019, miscellaneous expenses totaled $1,854,681 with 739 transactions wherein we selected 48 transactions totaling $393,886 for detail testing. For the quarter ended December 31, 2019, miscell...