HomeMy WebLinkAboutItem #48 - Discussion ItemThe Parking Network, Inc TI
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February 21, 2001
Mr. Carlos Gimenez
City Manager
444 SW 2ad Avenue
Miami, FL 33130
BE: Audit Response
Dear Mr. Manager:
In preparation for the tomorrow's commission meeting, I have prepared the attached summary of
the update of the Parking Surcharge Audit. As we discussed, 1 will be prepared to present this
information and answer any questions the Commission may have.
We appreciate the opportunity better explain the program by which we operate. If you would
like me to add or expand on any of this information, please let me know.
Sincerely,
Fred Hredemeyer
Project Team Leader
The Parking Network, Inc.
Attachment: Audit Report Response
Cc: The Honorable Mayor Joe Carollo
Commissioner Tomas P. Regalado
Commissioner Arthur E. Teele, Jr.
Commissioner Johnny L. Winton
Commissioner Joe M. Sanchez
Commissioner Wilfredo Gort
Alejandro Vilarello, City Attorney
Victor Igwe, Office of internal Audits
Marva Wiley, Special Assistant to the City Manager
Robert Nachlinger, Assistant City Manager
Scott Simpson, Assistant Finance Director
Clyde Wilson, Principal, The Parking Network
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Audit Findings in Brief
Parking Network
1. Additional parking surcharge revenues due to the report
2. Inadequate monitoring of the operations and activities of parking facilities
Department of Finance
1. Lack of remote computer dial -in capability
Neighborhood Enhancement Team (NET)
2. Parking facilities operating without Occupational Licenses and Certificates -
of -Use.
Providing Parking Planning 8 Development Services Auditing Human Resources Management Systems 2
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Parking Network
1. Additional parking surcharge revenues due to the report
Page 5 of the Audit report explains that testing of the returns of 50 surcharge payers revealed that
8 of them owed $45,361.18 in additional surcharge due the City. The majority of the underpaid
amounts, $36,265, or 79% of the $45,361.18, came from one valet service. It is our opinion that
upon investigation, there will always be inaccurate remittance reports filed to the City. Our goal
is alleviate as much as this as possible with our training programs. Then, our systematic
approach will identify those who continue to file inaccurately.
Additionally, the auditor states that they checked 20 properties against our database and four that
2 of those properties were not found in our records. The Parking Network had identified one of
these properties but the other one was overlooked in our first field surveys.
2. Inadequate monitoring of the operations and activities of parking facilities.
Page 7 of the audit report states the following: "However, our review of the Property Listing
maintained by PNI disclosed that 77 (or 25 percent) of the 300 parking facilities listed have not
remitted any of the 20 percent parking surcharge fees collected since September 1, 1999.
The 77 properties to which the audit refers were all identified and catalogued by The Parking
Network. From June 2000 to November 2000 (prior to the completion of the City's Internal
Audit) The Parking Network collected a total of $953,281.54 from delinquent surcharge payers.
The majority of this, $652,999.39, came from 26 of these 77 properties identified by TPN
through field surveys. During the same period, an additional $300,281.905 was recovered from
properties that were paying at one time but had skipped payments or were otherwise in arrears.
Where necessary, TPN initiated contact with the owner/operator of each of the other facilities to
effect compliance with the surcharge. To date, we have recovered more than $1 million from
over 50 delinquent properties.
Department of Finance
3. Lack of remote computer dial -in capability
The Parking Network has adequately addressed the reporting the needs of the City's finance
department. The remote dial -in capability will be used when necessary.
Neighborhood Enhancement Team (NET)
4. Parking facilities operating without Occupational Licenses and Certificates -of -Use.
The Parking Network has met with the NET administrator to establish a system by which they
will notify NET when a property appears to be operating without a license.
Providing Parking Planning & Development Services Auditing Human Resources Management Systems 3
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Parking Network Accomplishments
e Prior to TPN's start there were 186 paying "accounts" in the City's
collection's report. TPN's database has reconciled these accounts to identify
payment streams for approximately 350 revenue -generating facilities.
e The Parking Network has collected over $1,000,000 from over 50 delinquent
surcharge properties. This amount is residual in that it will generate surcharge
revenue for as long the properties continue to operate.
e The Parking Network has conducted several training programs and educated
dozens of surcharge payers.
e The Parking Network has collected over $80,000 in penalties and interest.
e The Parking Network and Rachlin Cohen and Holtz have designed and
implemented test audit procedures to determine the accuracy of remittance
reports.
Providing Parking Planning a Development Services Auditing Human Resources Management Systems 4