City of Charlotte, North Carolina
Charlotte Douglas International Airport
Turn Over Review
Parking Revenue and
Purchasing
Table of Contents
Transmittal Letter .................................................................................................................................... 1
Background ....................................................................................................................................... 2 – 3
Objectives and Approach .................................................................................................................. 4 – 5
Observation Matrix .......................................................................................................................... 6 – 17
•
•
Parking Revenue
Purchasing
Process Maps ................................................................................................................................ 18 - 35
McGladrey LLP
4725 Piedmont Row Drive
Suite 300
Charlotte, North Carolina 28210-4280
O 704.367.6250
www.mcgladrey.com
June 11, 2014
City of Charlotte, North Carolina
th
600 East 4 Street
Charlotte, NC 28202
Pursuant to the approved engagement letter dated October 28, 2013 with the City of Charlotte, North
Carolina (the “City”), we hereby present the Turn Over Review of the Charlotte Douglas International
Airport (the “Airport”), an enterprise fund of the City. Fieldwork commenced December 2013 and was
completed February 2014. From the completion of the fieldwork through present, we have been working
and collaborating with the Aviation Department and City Management regarding their remediation plan of
the identified observations. This review targeted the following high-risk core areas identified by
management:
• Parking Revenue
• Purchasing
Our report is organized in the following sections:
Background
This provides an overview of operations and the core high-risk
focus areas as identified by management for this Turn Over
Review.
Objectives and Approach
The Turn Over Review objectives and focus are expanded
upon in this section as well as a review of the various aspects
of our approach.
Observation Matrix
This section gives a description of the observations noted
during our review, recommended actions as well as
management’s responses and action plans.
Process Maps
This section provides process maps depicting the best practice
flow of the identified processes.
This engagement was conducted for the limited purpose described in the Objectives section of this report
and was not designed to identify fraud, including fraud involving employees, management, those charged
with governance, or external entities. Given these limitations, during our engagement we did not identify
any such fraud. However, such fraud may exist that has not been identified.
We would like to thank all those involved from the City and the Aviation department in assisting us with
this Turn Over Review.
Respectfully Submitted,
McGladrey
1
Background
Background
This Turn Over Review focused on the following 2 high-risk core areas identified by Management:
Parking Revenue
The Airport contracts with EJ Service Inc. d/b/a Customer Driven (“CD”) Staffing to provide outsourced
personnel responsible for cashier, lot attendant, customer service, traffic director, taxi, license plate
inventory, commercial lane assistance, training, and clerical functions. The Aviation department
maintains an in-house Parking Operations division to monitor parking services and operations. To
facilitate management of parking operations, the Scheidt & Bachmann parking revenue control system
was procured and implement in FY 2011. This system can track tickets dispensed, calculate parking fees
due upon exit, and record other related parking activity including individual parking transaction details.
The following chart reflects current capacity and fees assessed at each parking facility available at the
Airport:
Parking Facilities / Services
Location
Fee
Daily
$10 per day
Daily North
$10 per day
Hourly
Under
Construction
Long Term 1
$5 per day
Long Term 2
$5 per day
Long Term 3
$5 per day
Long Term 4
$5 per day
Business Valet
$14 per day
Curbside Valet – (cars are parked
$28 per day
in the hourly facility and other
locations based on demand)
Total Capacity
Capacity
6,008
1,190
3,324
2,758
890
3.656
2,719
20,545
*Fees are effective February 17, 2014
Payment methods accepted are cash, credit card, and traveler’s check. Credit card only lanes are
available in all parking facilities. Cashier exit lanes are available in the Long Term 1, Long Term 2, and
Daily facilities. Additionally there are 6 Pay & Go machines available for customers to pay their parking
ticket prior to exiting and take advantage of prepaid lanes upon driving out of the lot. Cashiers also
accept payment through the form of a promissory note if customers are unable to pay.
Parking revenue amounted to $42.5M and $38.5M for fiscal years 2013 and 2012, respectively.
Purchasing
The purchasing function involves the procurement of commodities, materials, supplies, equipment, and
services at a reasonable cost. Their goal is the promotion of the best interest of the Airport through
intelligent action and fair dealings, resulting in obtaining maximum savings for the Airport. Such goals are
not limited to those actions requiring competitive action, but include those small purchases that can be
simplified and performed more cost effectively through knowledgeable and sound decisions utilizing
current market information and innovative buying methods, matched with meeting the Airport’s
requirements.
The Aviation department’s purchasing team consists of 2 employees: the Purchasing Manager and
Contract Administration specialist. The duties and responsibilities of the team include: review and
approval of solicitation documents, contract execution assistance, and purchase requisitions. The City’s
Business Support Services/Procurement Division (“BSS/PD”) is responsible for administering the citywide
procurement process, including vendor management, review of requisition requests, and processing
purchase orders.
2
Background - continued
Purchasing - continued
Purchases are either made on a contract, purchase order, or as a direct payment. Effective February
2014, the Aviation department began utilizing procurement cards.
The statutory requirements governing the purchasing function include North Carolina General Statutes
(G.S. 143-129 and 143-131), which require competitive bidding for contracts for the purchase of
apparatus, supplies, materials, and equipment, and construction and repair contracts. The level of bid
solicitation procedures, formal or informal, depends on the dollar value and type of contract. There are
also several exceptions to the statutory bidding requirements for certain types of purchases. For
contracts that do require competitive bidding, the bidding thresholds are set by G.S. 143-129, as
amended by special legislation approved by the General Assembly applicable to the City of Charlotte
(S.L.1993-712 and 1995-273). This authority represents an exception to the overall formal bidding
thresholds set by North Carolina General Statutes. The City’s bidding thresholds are as follows:
Competitive Bidding Thresholds
Contracts for the purchase
of apparatus, supplies,
materials, or equipment
Construction and repair
contracts
Formal bidding
$100,000 or above
$500,000 or above
Informal bidding
$10,000 to less than $100,000
$30,000 to less than $500,000
Competitive bidding not required
Less than $10,000
Less than $30,000
In addition to the requirements above, the Local Government Budget and Fiscal Control Act (G.S. 159-7
through 159-42) includes requirements for the contracting process. This Act requires that all contracts,
including purchase orders, that obligate budgeted funds, must be preaudited under G.S. 159-28(a), as
certified by the finance officer in writing. There are also statutory requirements specific to construction
contracts (G.S. 143-128). The City Charter contains requirements for purchases and contracts. The City
has issued a Citywide Procurement Policy and Citywide Procurement Process and Procedure Manual to
establish uniform methods and strengthen internal controls over the procurement process. The below
table includes the contract award authority requirements and required procurement methods set forth in
the Procurement Policy.
Dollar Threshold
$0 - $9,999
$10,000 - $49,999
$50,000 - $99,999
$100,000 or more
Contract Award Authority
Method of Procurement
Award Authority
Procurement card or 1 quote
Key Business Executive Designee
Informal solicitation process
Key Business Executive or City Mgr. Designee
Informal solicitation process
City Manager or Assistant City Manager
Formal solicitation process
City Council
The following table reflects statistical data from the 2013 fiscal year:
Description
Approximate number of purchase requisitions issued
Approximate number of purchase orders issued
Dollar value of purchase orders issued
Approximate number of purchases by direct payments
Dollar value of purchases by direct payment
Active contracts as of 6/30/13
Dollar value of active contracts as of 6/30/13
644
635
$15,831,263
1,318
$18,236,549
130
$162,942,105
3
Objectives and Approach
Objectives and Approach
Objectives
The overall objective of the Turn Over Review was to gain an understanding of the processes,
procedures and the control environment of the high-risk core areas identified by management. We
performed a high level analysis and review, and made recommendations for improvement where
considered necessary.
Approach
Our audit approach consisted of the following phases:
Understanding and Documentation of the Process
This phase of our review consisted primarily of inspection and inquiry in an effort to obtain a foundational
understanding of the high-risk core areas. We met with representatives from the Aviation department and
the City to discuss the scope and objectives of the Turn Over Review, obtained preliminary data, and
established working arrangements. We also obtained copies of reports and other documents deemed
necessary. We then conducted facilitated sessions and interviews with representatives from the Aviation
department and City within the high-risk core areas identified by management. We documented our
understanding of the high-risk core areas in a process map/flowchart, where applicable, which was
subsequently validated by the parties noted above.
Process and Control Review
During this phase we assessed whether the controls are properly designed and made recommendations
on how to improve internal controls where deficiencies were identified. The following procedures were
conducted as a part of this phase of our review:
•
•
•
Control design gap identification, where applicable;
Identification of opportunities for new/modified controls for process improvement and/or efficiency
gains; and
Development of recommendations for additional or improved controls.
Compliance and Controls Review
Our procedures included the following:
Parking Revenue
We performed a high-level review of the process design and policies and procedures as they relate to the
management of parking operations and monitoring, including parking management company as follows:
•
•
•
Interviewed personnel from the Aviation department including the Parking Operations division on
the parking revenue process;
Interviewed a representative from the parking system vendor to obtain an understanding of
additional system functionalities available; and
Selected a sample of daily reconciliation procedures, reports reviewed and other supporting
documentation (for example: deposit slips, system generated reports, exception tickets) to
perform a walkthrough of parking collections and transactions.
4
Objectives and Approach - continued
Approach - continued
Compliance and Controls Review - continued
Purchasing
We performed a review of the process design and operating effectiveness as it related to just the
procurement of goods/services (purchase request to award).
•
•
•
•
•
•
•
Conducted interviews and walkthroughs with the respective process owners to obtain an
understanding of the purchasing and vendor creation and management processes;
Obtained and reviewed the purchasing and contract files for a sample of purchases from FY 2013
and FY 2014;
Verified completeness of the purchasing and contract files for the sample above;
Tested the above sample for compliance with statutes, policies and procedures governing the
bid/quote, vendor selection, and other purchasing process aspects;
Selected a sample of change orders related to the contracts for the purchases above, tested for
compliance with applicable policies and procedures;
Selected a sample of direct payments to test for compliance for applicable policies and
procedures; and
Reviewed security access reports in the area of purchasing and vendor management for
appropriate segregation of duties and access levels.
For each of the high-risk core areas, we identified instances of non-compliance and issued proposed
recommendations for remediation.
Reporting
For each of the high-risk core areas reviewed, we identified observations and recommendations for
improvement where considered necessary. The observation matrix section provides the detail of the
observations identified and recommendations for remediation. We have assigned relative risk factors to
each observation identified. This is the evaluation of the severity of the concern and the potential impact
on operations. There are many areas of risk to consider including financial, operational, and/or
compliance as well as public perception or ‘brand’ risk when determining the relative risk rating. Items are
rated as High, Moderate, or Low.
•
•
•
High Risk Items are considered to be of immediate concern and could cause significant
operational issues if not addressed in a timely manner.
Moderate Risk Items may also cause operational issues and do not require immediate attention,
but should be addressed as soon as possible.
Low Risk Items could escalate into operational issues, but can be addressed through the normal
course of conducting business.
We have reviewed the results with the City’s Finance Director, Deputy Finance Director, Aviation Director,
Aviation Finance Director and other members of the City and the Aviation department’s management.
Included within the observation matrix is Management Response with the targeted implementation date
for remediation of recommended action items. We recommend that follow-up procedures be performed
for those observations where the remediation target dates have been reached, and ample time has
passed under the new process/control to verify and report the implementation status of the
recommendations to the previously reported observations. Follow-up is meant to validate, on a sample
basis, the effectiveness of the remediated controls of the previously reported observations.
5
Observation Matrix
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue
Rating
High
Observation
Recommendation
Management’s Response
We noted the agreement between the Airport and
Scheidt & Bachmann and between the Airport and EJ
Services Inc., d/b/a Customer Driven (“CD”) Staffing
contain ambiguous provisions that may not meet Airport
expectations.
We recommend that the Aviation
department, in conjunction with Airport
Counsel, review these agreements and
determine if modifications are needed to
protect the Airport when instances of nonperformance arise. Determination would
include
modifying
the
contracts
retroactively and/or on a go forward basis.
Response:
Aviation agrees with
Observation
and
Recommendation.
Aviation is currently advertising a request
for proposals for an operating and
maintenance contract related to the
airport’s parking revenue control system.
The contract awarded to the successful
proposer will include provision for the
recovery damages resulting from lost
revenue
due
to
contractor
nonperformance. Furthermore, Aviation has
entered into a Management Agreement
with a new Parking Management
Operator SP+ effective April 1, 2014. The
contract
with
SP+
requires
the
performance of LPIs on a daily basis.
Aviation Parking will monitor and ensure
compliance with the LPI requirement.
1. Vendor Contract
•
•
The agreement with Scheidt & Bachmann currently
does not specify any measures for a penalty or
chargeback to be remitted to the Airport if the
system does not operate as intended. Through
inquiry, we noted that the Scheidt Bachmann
system went down in October 2013 resulting in an
estimated loss of revenue totaling approximately
$12,824. When the system reached the onemillionth transaction, it caused the database to reset
which resulted in this shutdown.
Section 2.1.2 of the EJ Services Inc. agreement
currently states “Contractor shall provide personnel
to inventory the vehicles parked from time to time in
the Facilities.” While the License Plate Inventory
(“LPI”) report was available for the dates we
selected for our waltkthrough, the agreement does
not specifically state LPIs must be performed daily,
which is the current practice.
Responsible Party: Aviation Finance;
Aviation Legal and Aviation Parking
ECD: June 30, 2014
Vendor contracts should be appropriate to protect the
Airport when instances of non-performance arise.
6
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue - continued
Rating
Moderate
Observation
2. Nonrevenue Parking
Recommendation
Access Cards
Access Cards
Access Cards are issued mainly to city, county and FAA
officials, limousine companies, and airline management
after approval by the Aviation Director’s office.
Currently, there are 590 issued access cards; however,
a listing of access cards issued and expiration dates is
not reviewed on a regular basis, or at all.
A listing of access cards issued and
outstanding should be periodically
reviewed, at least annually, to account
for all cards issued.
Gate Reset
We recommend parking operations
perform the following:
• Review all access to the parking
system machines on a regular
basis and determine if the
individuals
with
access
are
appropriate; and
• Review exception reports of the
daily gate resets and manual
vends, including by whom these
were made by.
We noted that CD Staffing personnel have the ability to
access the parking system machines to reset machines
or manually vend the gate (by key access) if necessary,
resulting in a segregation of duties conflict.
Failure to review a listing of outstanding access cards
issued and gate resets can result in inappropriate and /
or excessive access card usage and gate reset,
resulting in loss of revenues for the Airport.
Gate Reset
Management’s Response
Response:
Access Cards
Aviation partially agrees with Observation.
Parking Access cards are issued to City,
County, Federal and FAA officials as well as
all
limousine
companies
and
tenant
management. Access cards provided access
to the former hourly parking garages which
have since been demolished. Subsequent to
the demolition of the hourly parking garages,
Aviation Operations – Parking has terminated
all Access Cards. Upon completion of the new
hourly parking garage in November 2014,
Aviation Operations – Parking will issue
access cards to individuals and companies
approved by the Aviation Director. Aviation
Operations – Parking will review and audit the
authorized access card list on at least an
annual basis and will terminate any
unauthorized access cards.
Gate Reset
A review of personnel with access to parking
revenue system machines has been
conducted to determine access is appropriate.
Effective April 1, 2014 the new Parking
Management Operator will be changed and
issuance of access will be monitored closely
and reviewed monthly. Reports of gate resets
and manual openings are maintained. These
reports are being reviewed by management
on a daily basis.
Responsible Party: Parking Operations
ECD: June 30, 2014
7
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue - continued
Rating
Moderate
Observation
3. Financial Reporting and Monitoring
Recommendation
Daily Reconciliations
Daily Reconciliations
During our walkthrough of 3 daily cash reconciliations,
we noted the following:
We recommend that the
Parking
Operations division ensure Cashier’s
provide documentation and support for all
cancelled tickets and coupons issued.
•
•
•
For 1 coupon issued, documentation / support was
not submitted as part of the cashier report
documentation.
Cash received by CD staffing personnel in the PDR
(parking dispatch room) personnel for customers
that have lost or unreadable tickets and were exiting
through a non-cashier manned booth, is not always
fully documented on the Cashier Payment Dispatch
Log.
Total revenue per the Parking Worksheet and the
total revenue noted on the Parking Summary Report
differed by $25. The Parking Summary Report is
provided daily to Aviation Management. Note: This
particular days’ reconciliation was performed by a
backup individual as the parking administrator was
out.
Further, we recommend all reconciliations
performed by backup personnel are
reviewed for accuracy.
We recommend consideration be given to
have fully functional cashier terminal
available for use in the PDR to enable all
transactions to be recorded in the system
and eliminate the need for a manual
Cashier Payment Dispatch Log.
Management’s Response
Response:
Daily Reconciliations
Council approved a contract for a Parking
Management Operator to operate the
airport’s public parking lots and garages.
The parking management contract will be
effective April 1, 2014. In connection with
the effective date of the new parking
management contract, Aviation will
ensure
cashiers
will
provide
documentation and back-up for all
cancelled tickets and coupons issued. All
daily reconciliations will be reviewed by
parking operations management for
accuracy.
Scheidt and Bachmann
terminal in the PDR is a central cashier
station which is a fully functional cashier
terminal. Scheidt and Bachmann will
perform training on the terminal for
personnel operating the terminal.
Monitoring
Through our inquiries and observations, we noted that:
• Trending and analysis is currently performed on an
ad-hoc basis by use of excel worksheets manually
entered from system reports.
8
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue - continued
Rating
Moderate
Observation
3. Financial Reporting and Monitoring – continued
Recommendation
Monitoring – continued
Monitoring
Additional reporting available in the Scheidt &
Bachmann revenue system is not currently being utilized
for trending, statistical review, and analysis purposes.
Specifically, the Scheidt & Bachmann system reporting
not currently being used include the following:
• Events Journal report is currently being used by the
PDR; however, it is not reviewed by the Parking
Operations division. This report details all gate
events / vends and should be reviewed and
reconciled to transactions / collections on a periodic
basis.
• Occupancy Statistics (minimum and maximum
number of parkers by date and by lot and
occupancy percentage).
• Attendance Time (quantity of tickets by length of
stay and total fee; this report can be sorted by
payment types as well and for access cards).
• Parking Ticket Analysis (number of tickets issued
and collected by date and lot; also calculates the
ticket inventory and unaccounted tickets).
• Exit Comparison (displays the exit counts on a
particular date to the same date in the prior year
and the variance).
• Lag Ticket (time between customers payment at a
Pay on Foot station and exiting the parking lot).
• Cashier Daily Revenue Summary (revenues by
Cashier, broken down by lot and by gate).
• Parking System Transaction Analysis (breakdown of
gross ticket revenue by lot with transaction analysis
including total number of credit cards vs. cash
payments and statistics for average cash and
average credit transaction fee amount).
We recommend Aviation Management and
Parking Operations division identify
trending and analysis of most value and
use to them and review the reporting
modules available in the Scheidt &
Bachmann revenue system to determine
the reports of most need, including
frequency of review. The identification of
the potential use of system generated
reports available should include reports to
replace the manual excel worksheets
utilized for monitoring needs.
Additionally, we recommend Parking
Operations receive follow-up/refresher
training from Scheidt & Bachmann for
more in-depth knowledge of the system
capabilities and reporting/reconciliations
available to them.
This will enhance
Parking Operations knowledge of the
system.
Management’s Response
Monitoring
Aviation agrees with the Observation and
Recommendation.
Aviation
acknowledges the canned report package
purchased by the Airport from Scheidt
and Bachmann does not include access
to several recommended reports. S&B
system reporting capabilities are being reexamined
in
connection
with
Observations to develop increased
availability.
The
new
Parking
Management vendor has extensive
knowledge of the Scheidt and Bachmann
system and the ability to review identified
reports. S&B will be contacted as
necessary to provide additional training as
needed.
Responsible Party: Parking Operations
ECD: December 31, 2014
After Parking Operations has received
additional training on the Scheidt &
Bachmann system, they should consider
the cost/benefit of upgrades to the
system/reporting functionality, if needed.
9
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue - continued
Rating
Moderate
Observation
3. Financial Reporting and Monitoring – continued
Recommendation
Management’s Response
Monitoring – continued
Other reports noted in the system that are not used
include: distribution turnover, summary turnover, sum
report events, noon count occupancy, overnight
vehicles, device activity, peak occupancy, ticket type,
ticket pulls, and occupancy by company.
We noted that several reports that are reviewed on
occasion but not on a regular basis. These include:
• Monthly Transaction by Rate Increment (number of
transactions by rate increment breakdown)
• Cashier Performance (transaction details by cashier
including average ticket value, over/under
variances, and insufficient funds).
• Manually Processed Tickets (can be run for
cancelled, lost, or unreadable tickets and broken
down by cashier. Currently, this report is used on a
regular basis for cancelled tickets only).
• Unreadable Tickets (details number of unreadable
ticket transactions, by cashier).
• Lost Ticket Transactions (non LPR) (details the
number of lost ticket transactions, by cashier).
Accurate information is critical to facilitate effective
monitoring, as this is a means to timely detect errors
and misappropriation of funds.
10
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue - continued
Rating
Moderate
Observation
4. Policies and Procedures
Through our inquiries and observations, we noted that
documented policies and procedures governing the
parking operations management processes were not
completed or formalized.
Proper documentation, approval, and communications
of policies and procedures are key tools to ensure
expectations are met and provide critical succession
planning.
Without standardized policies and procedures errors
could occur and not be detected in a reasonable time
period.
Recommendation
Management’s Response
We recommend that Parking Operations
update and/or create policies and
procedures to reflect current practices. As
this is developed and / or revised, the
following should be considered:
Response:
Aviation agrees with
Observation and Recommendation. In
connection with the beginning of service
by the new Parking Management
Operator on April 1, 2014, Aviation
Parking will review, update and create
policies and procedures to reflect current
practices. Documentation as referenced
will be stored on Airport’s departmental
share drive.
•
•
Policies and procedures be formally
reviewed and approved by Aviation
management; and
Updated policies and procedures
should be made as needed and
version
control
incorporated
to
facilitate use of most up to date
documents.
Responsible Party: Parking Operations
ECD: June 30, 2014
11
City of Charlotte, North Carolina
Turn Over Review
Parking Revenue – continued
Rating
Low
Observation
5. Insufficient Funds
Through our inquiries, we noted that there are
insufficient funds transactions (ISF) dating back to
December 2011 that have not been collected totaling
$31,537. The monitoring process is manual in nature.
ISF transactions should be written off as uncollectible
after a reasonable period of time. Additionally, the
Scheidt Bachmann system does not currently record ISF
transactions that have been paid as such in order to
calculate from the system the outstanding balance due.
Low
Recommendation
Management’s Response
We recommend that a timeframe for ISF
transactions to be written off as
uncollectible be developed.
Response:
All insufficient fund
transactions prior to January 2013 have
been written off as uncollectible.
The Aviation department should consider
working with Scheidt & Bachmann to
implement ISF outstanding balance
calculation capabilities as part of the
system functionality.
As noted in recommendation #3, After
Parking Operations has received additional
training on the Scheidt & Bachmann
system; they should consider the
cost/benefit
of
upgrades
to
the
system/reporting functionality, if needed.
The Scheidt and Bachmann ISF report
deducts the amount of the collected ISF
however does not remove the billing
information. Parking Operations, Aviation
Finance, and Scheidt Bachmann will
participate in the development of
improved reporting capability.
Responsible Party: Parking Operations
ECD: December 31, 2014
6. Cashier Booth Security Cameras
Although, there are security cameras located in the safe
room, cash room, and hallway where the door into the
PDR is located, there are none in the cashier booths.
The lack of security cameras in cashier booths
increases the risk of misappropriation of assets and
unauthorized complementary parking. Security cameras
also serve as a preventative control against theft and
robbery, as well as a beneficial tool for investigatory use
in the event of a crime.
We recommend that the Aviation
department
consider
implementing
additional security cameras inside of
cashier booths.
Response: Aviation agrees to review
practicality of adding security cameras to
cashier booths as they are relocated to
new exit plazas.
In booth security cameras will assist in the
prevention of misappropriation of assets
and unauthorized complementary parking.
Responsible Party:
Parking Operations
Aviation Finance,
ECD: December 31, 2014
12
City of Charlotte, North Carolina
Turn Over Review
Procurement
Rating
High
Observation
7. Vendor Master File Review
The GEAC system is utilized to pay vendors and the Compass
system vendor database is utilized by City departments to identify
potential vendors for solicitations. The City’s Procurement
division “owns” vendor additions/changes/deletions within
Compass and the City’s Central Finance department “owns”
vendor additions/changes/deletions within GEAC.
The Aviation department made payments to 814 vendors during
FY 2013 and FY 2014 (as of November 2013). We noted the
following during our review:
•
•
•
The vendor master files (GEAC or Compass) are not
reviewed on a periodic basis to identify erroneous
information,
potential
duplicate
vendors,
outdated
information, and inactive vendors.
Vendor activity reports showing changes made to the vendor
masterfile in GEAC or Compass are not periodically reviewed
to verify the accuracy and authorization of the changes.
Duplicate vendors are present in the GEAC system vendor
master file, based on our review of the disbursement
population received.
The vendor master files should be monitored and reviewed on an
ongoing basis to ensure protection of the integrity of the files. In
addition, the risk of unauthorized disbursements is increased by
the presence of inactive vendors in the GEAC system active
vendor file.
To facilitate the efficient identification of potential vendors for
solicitations, the database information should be accurate,
complete, and up to date.
Duplicate vendors could lead to inefficiencies, possible delay in
payment of invoices and duplicate payments, which may go
undetected.
Most importantly, duplicate vendors create
opportunities for fraud.
Recommendation
Management’s Response
We recommend that the City’s
Central Finance department and
the City’s Procurement division, in
conjunction with respective City
departments/divisions, perform an
annual review of the vendor
master file to mitigate the risk of
unnecessary multiple vendors.
Procedures should include the
following:
Response: Aviation agrees with the
recommendation and will assist City
Finance
and
City
Procurement
Management with review of the vendor
master file.
The City is currently
undergoing a review of all vendors
currently in Compass and GEAC to
confirm accurate information prior to
exporting into Munis and prior to go-live.
As such, the vendor masterfile will be
cleaned up as part of the conversions to
Munis. In addition to the conversion to
Munis a new process for vendor
authenticity will
be
implemented.
Aviation is actively participating in these
efforts.
•
•
•
•
Inactivate
and/or
purge
vendors with no activity within
a defined timeframe;
Identify and correct duplicate
vendor records;
Compare
vendor
names/
addresses
to
employee
names/addresses; and
Verify that vendor information
is complete, up to date, and
accurate.
Responsible Party: Aviation Finance
ECD: In conjunction with the Munis golive date
We recommend that reports
showing
vendor
information
changes in the master files be
periodically reviewed to identify
unauthorized
or
erroneous
changes.
Ideally, these reviews should be
performed by personnel who are
independent of the vendor creation
and modification functions.
13
City of Charlotte, North Carolina
Turn Over Review
Procurement - continued
Rating
High
Observation
8. Purchase Approval and Documentation
Recommendation
Purchases via Purchase Order
Purchases via Purchase Order
Of our sample of 25 purchases, we noted the following
exceptions during our testing of compliance with purchasing
policies and procedures:
We recommend purchasing policies
and procedures be followed as
directed.
•
Purchasing
files
should
be
periodically independently reviewed
to monitor compliance with policies
and
procedures
and
identify
deficiencies for follow up.
The
review should include verifying
compliance
with
all
laws,
regulations,
policies,
and
procedures and ensuring that the
file
information
sufficiently
documents
the
basis
for
procurement decisions made.
•
•
•
Departmental approval of the purchase order was not
documented for 3 purchases: Coffey’s Body Shop, Inc.,
Carolina Veterinary Specialist, and First Advantage
Background Svc. Approval of all 3 purchases by the Key
Business Executive designee is required by the Citywide
Procurement Policy, Section 5.
A copy of the quote was not maintained on file for 1
purchase made under a purchase order (Carolina Veterinary
Specialist). We were therefore unable to verify that a quote
was obtained as required by the City Procurement Policy
and Procedures Manual, Section 6.2.2.2.
Evidence of the Technology Proposal Evaluation Team
review or approval was on not file for 1 technology purchase
(parking revenue system - Scheidt & Bachmann), as
required by the Citywide Procurement Policy, Section 6.4.
Evidence of the date and time the proposals received for 1
RFP was not on file (Otis Elevator Company, Inc.). We
were therefore unable to test the timing of receipt of
proposals or that they were time stamped when received, as
required by the City Procurement Policy and Procedures
Manual, Section 6.1.2.1.F.
Management’s Response
Response:
Purchases via Purchase Order
Aviation
agrees
with
the
recommendation to follow purchasing
policies and procedure as directed.
Purchasing
files
are
periodically
reviewed by the City’s Internal Audit
Department.
Responsible Party: Aviation Finance
ECD: Effective Immediately
The rollout of the new ERP system
(MUNIS) will enhance the current
control structure.
Expenditures that do not go through the proper purchasing
process and are not fully documented could result in
overspending of the budget, misappropriation of funds and
failure to comply with all laws, regulations, policies, and
procedures.
14
City of Charlotte, North Carolina
Turn Over Review
Procurement - continued
Rating
High
Observation
Recommendation
Management’s Response
8. Purchase Approval and Documentation - continued
Direct Payments
Per City of Charlotte Accounts Payable Policy code number FIN
6:
• Policy 1: A purchase order or contract is required for
purchases of goods and services over $10,000.
• Responsibilities 2: Key Business Units are responsible for
requesting the City Manager’s approval for direct payments
between $10,000 and $100,000. Otherwise, Finance will
pay direct pay invoices between $10,000 and $50,000 that
have been approved by the Key Business Executive (“KBE”)
or Deputy KBE, and report these violations periodically to
the City Manager’s Office.
Direct Payments
Response:
Although the direct payments were
approved by the KBE or Deputy
KBE, the proper process should
have included submission of a
modified or new purchase order
prior to receipt of goods or services
and invoice presentation.
Direct Payments
See above.
Responsible Party: Aviation Finance
Aviation
agrees
with
the
recommendation to follow purchasing
policies and procedures as directed.
Direct payments will no longer be
allowed as part of the conversion to
Munis.
ECD: In conjunction with the Munis golive date
We noted 2 disbursements made by direct pay in our sample for
which the related purchase order limit was fully met prior to the
disbursement.
• A $15,000 disbursement for a purchase in our sample was
paid via direct pay (Hatch Mott McDonald) and had an
associated purchase order of $99,420, for which the
purchase order expenditure limit had been met.
• A $10,775 disbursement for a purchase in our sample was
paid via direct pay (Dell Marketing) and had an associated
purchase order of $24,750, for which the purchase order
expenditure limit had been met.
Direct payments increase the risk of erroneous or unauthorized
payments as they do not require the monitoring or document
matching controls associated with payments made under
contracts or purchase orders.
15
City of Charlotte, North Carolina
Turn Over Review
Procurement - continued
Rating
Moderate
Observation
9. Use of Contract vs Purchase Order
Contract vs Purchase Order
Currently, purchase orders can be utilized in lieu of contracts.
This process is based on historical practice and the policies and
procedures do not provide guidance in this area.
Purchase orders represent contracts with more general nonspecific terms and conditions. Purchases of moderate to higher
risk, spend amount and frequency are typically executed using
contracts instead of purchase orders. Best practice is to utilize a
contract for the procurement of services or deliverable goods
when it is prudent to detail specific negotiated terms and
conditions.
Recommendation
Contract vs Purchase Order
We recommend that the policies and
procedures be updated to include
guidance on when a purchase order may
be used to execute a purchase, and
when a contract is needed to sufficiently
define and document the agreement
terms.
A hard and fast rule may not be
appropriate, but the guidelines should
include consideration of the following:
•
In our sample, there was a purchase order for the installation of
an automatic aircraft docking system for 49 gates, in the amount
of $2M, but without an associated contract.
To fully protect the City’s interest in the procurement of a
good/service, the document utilized to bind the seller and buyer
should be appropriate based on the level of risk, spend amount
and frequency specific to the nature of the purchase.
•
•
•
•
Management’s Response
Response:
Contract vs Purchase Order
Aviation
agrees
with
the
recommendation.
The new
Citywide
Procurement
Policy
recommends the use of a contract
to define and document terms and
conditions (in addition to those on
the purchase order) when spend
is greater than $10,000.00 for
goods and services.
Nature of good/service to be
purchased;
Spend amount;
Term and frequency of procurement;
Risk involved with purchase; and
Level of detail needed to define the
terms and conditions.
If a purchase order is going to be utilized
on purchases of moderate–high risk,
spend amount and frequency, the
purchase order terms and conditions
should be updated as needed to
appropriately protect the City (for
example: right to audit clause, specific
terms of delivery of service/good).
16
City of Charlotte, North Carolina
Turn Over Review
Procurement - continued
Rating
Moderate
Observation
Management’s Response
9. Use Contract vs Purchase Order - continued
Contract Review
During the contract execution process, the contract document
is not locked into a “read-only” format after the legal
department's final review. The current process around
contract review is not consistent in that the final contract
document is not required to be reviewed by Airport Counsel.
Failure to maintain version control of the final contract
document could lead to unauthorized changes in terms.
Also, the Aviation legal team should review the final version
of each significant or non-standard contract to ensure the
City’s interests are properly protected by adequate and
complete terms and conditions.
Moderate
Recommendation
Contract Review
We recommend that the contract
execution process be updated as
follows:
•
•
Airport Counsel should perform
final review and sign off of all
significant contracts, over an
established dollar threshold, and
any contracts drafted using nonstandard terms and conditions;
and
Version control of the final contract
document should be systematically
protected by converting the final
legal-approved contract into a
format that does not allow edits.
Contract Review
Response: Aviation agrees with the
recommendation to have the Aviation
Legal Department maintain version
control and the conversion to the final
legal-approved contract into a format
that does not allow edits.
Responsible Party: Aviation Finance
ECD: In conjunction with the Munis golive date
10. Segregation of Duties and User Access
Effective segregation of duties and user access helps detect
errors in a timely manner, deters improper activity, improves
operational efficiency, and enhances communication among
functions.
We noted that there is an employee with inappropriate
access to requisition a purchase in the GEAC system.
Effective access controls assist in preventing errors and
fraud.
Also, system access should be reviewed to ensure that there
is adequate coverage for important functions in cases of
absences, high volume of transactions, or turnover.
We recommend that any unnecessary
access levels be deleted.
Response: Aviation agrees with the
recommendation.
GEAC will be
replaced by the City’s new ERP system.
The Aviation Department will coordinate
with the City’s information technology
team to perform periodic reviews of
system access profiles and functions
and delete profiles as necessary.
Responsible Party: Aviation Finance
ECD: In conjunction with the Munis golive date
17
Process Maps
City of Charlotte, North Carolina
Process Map
Parking Revenue
Parking Operations – Long Term Lots 1, 2 and Daily Lot
Page 1 of 11
Parking
Customer
Scheidt
Parking Lot/ Cashier (CD Bachmann
Garage Gate Staffing)
Parking
System
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Ticket Fee
due is
calculated
and
displayed
Gate vend is recorded
Sign stating call
this # if you do not
receive a receipt
and camera’s of
cash collections
Page 2
& 7A
Transaction details
and gate vends are
recorded
Money is collected
from customer
(cash or credit
card)
(Note 1, 2, 4 & 7)
Page 7B
Page 4B
Gate issues ticket
(with a magstrip
and time stamp)
Gate vends
Page 11
Customer
arrives at
airport to park
Page 4A
Customer returns
to airport to pick
up car
Enters ticket into
system (Note 3)
Remit payment
Customer exits
parking lot/garage
End
Start
Note 1: Coupons are issued on a limited basis for tow truck or jump start companies and vendors such as Duke Energy entering the
garage to fix the lights. The cashier runs the transaction through as if payment was collected from the customer and then signs off on the
ticket and retains it in the envelope with the cash and credit card slips to be submitted to parking operations.
Note 2: If a customer cannot pay the fee due (i.e. lost wallet, etc), the customer fills out an “unpaid form” (basically an IOU).
Process
Step
Legend:
Manual
Automated
Control
Control
Note 3: If a customer has a lost or mutilated ticket, the cashier will look up the length of time the customer had parked based on the
license plate inventory data and enter date into parking system to calculate fee due. This will be recorded in the system as a Lost Ticket
and documented by the cashier with the ticket retained and submitted to parking operations. This is the only type of transaction where the
Cashier can override the system to enter in a time for a ticket.
Note 4: Credit card charge-back’s can occur due to the transaction not going through on the first try in the parking system and resulting in
a double charge on the customer’s credit card. Per Susan Taylor, Airport Operations, this happens less than 1% of the time.
Note 5: There are 2 daily lots: Daily and Daily North. Both of these lots do not remain open at all times. Once one of the lots fills up then
the other lot is opened for parking.
Note 6: Transactions are approximately 80% Credit Card, 20% Cash.
Note 7: Non-cashier manned payment booth lanes are also available for exit in these lots. See Process Map on Page 3 for the payment
booth exit process overview.
18
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – Cash Handling
Page 2 of 11
Cash Room
Armored Car
Supervisor /
Cash Room
Service
Parking
Personnel
(Dunbar)
Operations
Cashier (CD
Staffing)
Scheidt
Bachmann
Parking
System
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Settlement Report
(Note 4)
All collections are
recorded
Beginning of Shift:
Cashier counts and
signs for the cash
bank amount ($300)
Page 1
Cash bank is
counted out ($300)
and provided to
Cashier at the
beginning of each
shift
End of Shift:
Cashier is escorted by
another contracted
employee to turn in
monies collected.
(Note 1)
Cameras record
activity in the cash
room, safe room,
and hallway to the
PDR room
(Note 7)
Count monies:
Cashier counts,
then Cash Room
personnel counts
(the $300
beginning balance
is set aside for
next shift)
Sign-off on
Cashier Report
Place monies in the
safe room located in
the parking
department
(Note 3)
Completes
Cashier Report
Form (Note 2)
Start
Pick up deposit
and remit to the
bank
(Note 3)
Cash Room Supervisor
counts the cash every
morning. Parking
Operations (Susan) spot
checks the cash count a few
times a week also. (Note 5)
Note 1: During busy seasons such as Thanksgiving and Christmas,
Parking Operations may send personnel out to the cashier booth to
collect cash during the shift rather than waiting for the cashier to drop
all cash at the end of their shift.
Note 4: The individual settlement reports for each cashier show collections
broken down by cash and credit cards. It also shows the total count and
amount of unreadable tickets, lost tickets, access cards used, ISFs, and
cancellations.
Note 2: Any transactions done by the PDR room manually without a
customer ticket (i.e. customer lost ticket, mutilated ticket etc.) are not
recorded in the system and must be added to the Cashier's report
manually in order to balance.
Note 5: The Accounting Clerk periodically counts cash on hand also.
Note 3: The only individuals with a key to the safe room are the
armored car company and the cash room shift supervisors.
Cashier Reports and are
submitted to Parking
Operations daily (along
with exception and
validation tickets attached)
Process
Step
Page 6
Page 5
Legend:
Manual
Automated
Control
Control
Note 6: Per the Agreement between the City of Charlotte and CD Staffing, CD
Staffing is responsible for all funds and collections until they are received by the
City (i.e. deposited into the City’s bank account and audited for accuracy).
Note 7: There are security cameras located in the safe room, cash room, and
hallway where the door into the PDR is located.
19
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue - continued
Parking Operations – Long Term Lots 3, 4 and Daily North Lot
Page 3 of 11
Ticket Fee
due is
calculated
Gate vend is recorded
Parking
Customer
Parking Lot/
Garage Gate
Payment
Booth
Scheidt
Bachmann
Parking
System
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Customer feeds
ticket into payment
booth
Fee Due is
displayed
Transaction details
are recorded
Money is collected
from customer
(credit card only)
(Note 1 & 2)
Gate issues ticket
(with a magstrip
and time stamp)
Customer
arrives at airport
to park
Page 7
Gate vends
Page 4
Customer returns
to airport to pick
up car
Page 11
Remit payment
Customer exits
parking lot/garage
End
Start
Note 1: Credit card charge-back’s can occur due to the transaction not going through
on the first try in the parking system and resulting in a double charge on the customer’s
credit card. Per Susan Taylor, Airport Operations, this happens less than 1% of the
time.
Process
Step
Legend:
Manual
Automated
Control
Control
Note 2: Cashier’s are not present at the Long Term 3, 4 or Daily North lots. If a
customer parks in one of these lots and can only pay in cash upon exit, an employee
from the control room will have to collect the cash. Another individual will be logged
into the control room to document this collection in the system. A Cash Payment
Dispatch Log is also maintained to document these collections.
Note 3: There are 2 daily lots: Daily and Daily North. Both of these lots do not remain
open at all times. Once one of the lots fills up then the other lot is opened for parking.
20
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue - continued
Parking Operations – License Plate Inventory
Page 4 of 11
City of Charlotte, North Carolina: Charlotte Douglas International Airport
End of 1st Shift
Parking
Operations
End of 2nd Shift
Scheidt
Bachmann
Parking System
Report of counts
received at the
end of the first
shift, daily
Store LPI data
CD Staffing
Personnel
Parking Lot /
Garage Gate
End of 3rd Shift
Count cars parked in each
lot and record license plates
by parking location (Note 1)
Store LPI data
Count cars parked in each
lot and record license plates
by parking location (Note 1)
Store LPI data
Count cars parked in each
lot and record license plates
by parking location (Note 1)
Page 1
& 3A
Note 1: A handheld device is used to capture the license plates, location,
and counts.
Enter license plate for
each customer as a check
for reasonableness of
ticket fee and to help
prevent fraud by
customers (Note 2)
Page 1B
Process
Step
Legend:
Manual
Automated
Control
Control
Note 2: License Plate Inventory can and should be used by Cashiers to
validate the length of time a customer parked upon checkout. Currently, it
is only used for customers with a lost or mutilated ticket.
21
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – Reconciliation Process
Page 5 of 11
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Various
Personnel
Parking
Operations
Cashier
(CD Staffing)
Scheidt
Bachmann
Parking System
Daily
Settlement Report –
total amount by
payment type
Page 2
Review and
reconcile Cashier’s
Report to the
reports from Scheidt
Bachman and to
deposit slip
(Note 2)
Agree validations to
actual validated
tickets and create
Coupon Report
Follow up/
research any
issues/
exceptions/
shortages noted
(Note 1)
Reports to track
statistics by
Cashier are
reviewed weekly
(Note 3)
Page 6
Note 1: If Parking Operations determines a Cashier was short the amount of collections they submitted, CD Staffing will be charged for the
shortage (typically any shortages noted are only by a few dollars).
Note 2: The Parking System does not currently provide zero fee transactions on the reconciliation report runs; therefore, this will always result
in an adjustment when reconciling to the Cashier Reports and Daily Reports from the system. Zero Fee Transactions include voids, coupons,
or complementary time in the lot – up to 10 minutes, i.e. someone just driving through a lot.
Provide daily parking
“worksheet” (includes
revenue and transaction
breakdown by lot and exit
lane) (Note 4)
Provide daily the Parking
Summary report (includes
the total revenue for the
day broken down by cash,
cc, adjustment, coupons
and any cashier over/
under) (Note 5)
Receives reports
and reviews
Receives reports
and reviews
End
Process
Step
Legend:
Manual
Automated
Control
Control
Note 3: Currently, cashier performance reports including breakdown of unreadable tickets, voids and lost ticket transactions are only run on
occasion by cashier if a pattern is noted. These should be run on a weekly basis in order to detect any potential patterns or issues more
timely.
Note 4: These reports are provided daily to the Assistant Aviation Director – Operations, the Airport Operations Manager – Landside, and the
Assistant Parking & Business Operations Manager.
Note 5: These reports are provided daily to the Finance Director, the Assistant Aviation Director – Operations, the Airport Operations Manager
– Landside, and the Assistant Parking & Business Operations Manager.
22
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – General Ledger Reporting
Page 6 of 11
Page 5
Receive daily parking
reports and deposit
slip from parking
operations
Financial
Reporting Dpt.
Bank Account
– City of
Charlotte
iNovah
Accounting
Clerk
Parking
Operations
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Note 1: There are 3 parking GL accounts: Public
Parking, Business Valet, and Curbside Valet.
Enter daily
revenues by lot
into Access
database
Page 7
Upload batch to
the General
Ledger
(each afternoon)
Record Batch #
from iNovah entry
into Access
database for
tracking purposes
Obtain bank
deposit receipts
from Citizens Bank
online
Agree GL entry
amount to bank
deposit amount
per bank account
Entry
recorded
daily in GL
(Note 1)
Page 2
Deposit
amount
recorded
Page 7
Cut check for
credit card tip
amounts to Valet
Parking Company
Manual entries are
recorded as needed for
cc chargeback’s,
incorrect deposit amount,
counterfeits, etc.
Reconcile bank
statements to
monthly credit card
reports
Process
Step
Legend:
Manual
Automated
Control
Control
23
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – Reconciliation Process
Page 7 of 11
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Ad-Hoc
Page 1B
&3
Page 1A
&3
Page 1B
Create a report to
track all unpaid
customer IOU
forms (Note 1)
Send out letters to
customers with
outstanding
balances due
Review monthly ISF
collections / duplication
charges
(Note 3)
Trending /
statistical reports
are utilized and
analyzed
(Note 2)
Report detailing
count of
unreadable and
lost tickets
Review reports on
an ad-hoc basis
for
reasonableness
Credit Card
Collections
Statement
ISF transactions
are written off after
a certain amount
of time
Finance
Director /
Aviation
Director
General
Ledger
Credit Card
Settlement
Statements
Parking
Operations
Scheidt
Bachmann
Parking System
Monthly
Page 6
General Ledger
Revenue Data
for parking
accounts
Review revenue data on a
period basis for trending,
metrics, and/or cash flow
analysis
Trending /
statistical reports
are utilized and
analyzed
(Note 2)
End
Note 1:Parking Operations, began tracking customer IOUs in December 2011; however,
she did not begin actively attempting to collect the balances until December 2012.
Note 3: ISF transaction
documentation is filed
alphabetically in Accounting.
Process
Step
Legend:
Manual
Automated
Control
Control
Note 2: Minimal trending analysis is performed of parking related data. Daily revenue by
lots is compared to month-to date figures, occupancy levels are reviewed daily, and
coupons/lost tickets are reviewed daily.
24
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – Access Cards
Page 8 of 11
No
Approve request?
Scheidt
Access Card
Bachmann
Holder
Parking System
(Note 1)
Parking
Operations
Aviation Director
City of Charlotte, North Carolina: Charlotte Douglas International Airport
No card
issued
Yes
Create Access
Card
(Note 2)
Request Parking
Access Card
Start
End
Review listing of
outstanding
Access Card
holders on a
regular basis
Obtain Access
Card
Use Access Card
to enter/exit lots
without paying
Note 1: Access Card holders may include City officials, County officials, FAA
officials, limousine and airline management companies (previously for access to
hourly lot). Currently there are 591 access cards issued and outstanding.
Entry/Exit gate
counts are recorded
separately in the
system for Access
Card users
Process
Step
Legend:
Manual
Automated
Control
Control
Gap
Note 2: Generally Access Cards are valid for 1 year; however, Parking Operations
can set a difference expiration date if needed.
Note 3: Certain companies located in the airport purchase parking access cards
for their employees; however, this program has been suspended while the hourly
lot is under construction.
Note 4: The badging office has a portable machine that can be used to validate
parking for specific vendors and special visitors of the airport. These validations
are automatically recorded in the Schiedt Bachman system.
25
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – CD Staffing
Page 9 of 11
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Billing
Scheidt
Bachmann
Parking System
Other Functions
Machine Resets
Page
10A
Airport
Operations
Manager
End
Review monthly
invoice for
accuracy and
reasonableness
Note 3
Parking
Administrator
CD Staffing
Gate Vends and is
recorded in the
PDR room
Note 5
Submit invoice to
Finance for
payment
Review access to
machines on a
period basis
Review and
approve
timecards, weekly
End
Submit monthly
invoice
Note 2
Start
Start
Note 1: CD Staffing currently has 171 personnel working at the Charlotte Airport. The agreement
with CD Staffing provides for cashiers, cash room personnel, parking spotters, customer service
representatives, supervisors, taxi dispatchers, LPI inventory, and ticket machine restock
personnel functions.
Reset parking
system machines
(if a malfunction
occurs)
Supervisor / Customer
Service Rep: Use
manual key to open
machine and vend gate
(if a malfunction occurs)
Page
10A
Process
Step
Stock machine
with ticket
inventory
Note 4
Legend:
Manual
Automated
Control
Control
Note 2: Monthly invoices include, in detail, the number of hours worked at each respective
position and personnel performing such work.
Note 3: The Airport Operations Manager – Landside, Bob Topel, is the Contract Administrator
over the agreement with CD Staffing.
Note 4: CD Staffing personnel check machines for ticket stock levels, pickup used tickets from the
machines and sort through and dispose of used tickets nightly.
26
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – PDR Room
Page 10 of 11
Start
Issue with the gate
vending
Airport
Operations
Cashier /
Customer
PDR Room
Personnel
Scheidt
Bachmann
Parking System
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Gate vends
Start
Log maintained for
PDR room
manned gate
vends
Access system
and vend gate
Low ticket stock
Receive notification
from the system when
ticket stock is low for a
particular machine
Page 9A
Contact PDR room
via phone
Page 9A
Review Parking
Dispatch Open
Gate Log, Daily
Reconcile all gate
vend counts to
transactions in
Schiedt Bachman
and collections
End
Process
Step
Legend:
Manual
Automated
Control
Control
27
Gap
City of Charlotte, North Carolina
Process Map
Parking Revenue – continued
Parking Operations – Pay on Foot
Page 11 of 11
Scheidt
Bachmann
Parking System
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Customer
Pay on Foot
Station
Process prepaid
ticket and vend
gate
Calculate parking
fees due
Note 1
Page 1
&3
Enter ticket into
POF machine
Process Payment
Remit payment to
POF machine
(credit card only)
Ticket evidencing
payment
Customer has 30
minutes to exit
parking lot once
ticket has been paid
at POF station
Drive up to
prepaid exit lane
and enter prepaid
ticket into machine
Exit Lot
End
Note 1: There are a total of 6 Pay on Foot
Stations. Two are located outside the
terminal and four are located in the daily lot.
Process
Step
Legend:
Manual
Automated
Control
Control
28
Gap
City of Charlotte, North Carolina
Process Map
Purchasing
Purchasing – Purchase Orders between $1 to $49,999
Page 1 of 1
Legal: Review and
approve final
(read only)
solicitation
document
Will a PO or
Contract be used?
Draft solicitation
document, i.e.,
ITB, RFP
Draft solicitation
document using
Legal-approved
templates
No
Yes
PO
Contract
Contract
Complete and
submit ‘Contract
Procurement
Request Form’
Do solicitation
terms match Legalapproved template?
Aviation Director or
Deputy Director:
Approve PPR
Complete and submit
Pre-Purchase
Requisition (PPR) in
CLTConnect system;
Attach proposal or
bid response
Send, receive
and evaluate
solicitation
documents
Aviation
Budget
Aviation Contract Process
Owner
Aviation Legal /
Aviation
Executive
City of Charlotte, North Carolina: Charlotte Douglas International Airport
City Procurement
Management
Aviation
Purchasing
Verify available
funds
Assist in review of
solicitation
document if
requested by
Legal
Approve use of PO
as best
procurement
method
Process
Step
Legend:
Manual
Automated
Control
Control
Gap
Create requisition in
GEAC system
Edit PPR in
CLTConnect for
requisition and PO
numbers
Create PO in GEAC
system and provide
approved PO to
vendor
29
END
City of Charlotte, North Carolina
Process Map
Purchasing – continued
Purchasing – Purchase Orders between $50,000 to $99,999
Page 1 of 1
City Manager:
Approve purchase
and sign ‘City
Manager Memo’
Legal: Review and
approve final
(read-only)
solicitation
document
Draft solicitation
document, i.e.,
ITB, RFP
Will a PO or Contract
be used?
Contract
PO
Complete and
submit ‘Contract
Procurement
Request Form’
Draft solicitation
document using
Legal-approved
templates
No
Yes
Do solicitation
terms match
Legal-approved
template?
Contract
Aviation Director or
Deputy Director:
Approve PPR
Complete ‘City
Manager Memo’
Send, receive and
evaluate
solicitation
documents
Aviation
Budget
Aviation Contract Process
Owner
Aviation Legal &
Exec. / City
Manager’s Office
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Verify available
funds
Aviation
Purchasing
City
Procurement
Management
Complete and submit
Pre-Purchase
Requisition (PPR) in
CLTConnect system;
Attach ‘City Manager
Memo’ and proposal
or bid response
Assist in review of
solicitation
document if
requested by
Legal
Approve use of PO
as best
procurement
method
Process
Step
Legend:
Manual
Automated
Control
Control
Gap
Create requisition
in GEAC system
Edit PPR in
CLTConnect for
requisition and PO
numbers
END
Create PO in GEAC
system and provide
approved PO to vendor
30
City of Charlotte, North Carolina
Process Map
Purchasing - continued
Purchasing – Purchase Orders over $100,000
Page 1 of 1
City
Aviation
Procurement
Purchasing
Management
Aviation
Budget
Aviation Contract Process
Aviation Legal
Owner
City Council /
Aviation
Exec.
City of Charlotte, North Carolina: Charlotte Douglas International Airport
City Council:
Approve contract
award / PO
Legal: Review and
approve final
(read-only)
solicitation
document
Legal / Regulatory:
Establish or waive
CBI/DBE goal
requirement
Will a PO or
Contract be
used?
Contract
PO
Complete and submit:
Charlotte Business
Inclusion (CBI) or
Disadvantaged
Business Enterprise
(DBE) Estimate Form’
to Legal; ‘Request for
Council Action” to
Budget; and “Contract
Procurement Request
Form” to Purchasing
Contract
Aviation Director or
Deputy Director:
Approve PPR
Draft solicitation
document, i.e.,
ITB, RFP
Draft solicitation
document using
Legal-approved
templates
Edit/finalize
‘Request for
Council Action’
No
Do
solicitation terms
match Legalapproved
template?
Post, receive and
evaluate
solicitation
documents
Yes
Complete and submit
Pre-Purchase
Requisition (PPR) in
CLTConnect system;
Attach approved
‘Request for Council
Action’, and proposal
or bid response
Confirm ‘Request
for Council Action’
date
Verify available
funds
Assist in review of
solicitation
document if
requested by
Legal
Approve use of PO
as best
procurement
method
Process
Step
Legend:
Manual
Automated
Control
Control
Gap
Create requisition
in GEAC system
Edit PPR in
CLTConnect for
requisition and PO
numbers
Create PO in
GEAC system and
provide approved
PO to vendor
31
END
City of Charlotte, North Carolina
Process Map
Purchasing – continued
Purchasing – Contracts between $1 to $49,999
Page 1 of 1
City Finance
Aviation Legal /
Aviation
Executive
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Legal: Draft
contract
NOTE: Contract package includes:
Contract Processing Data Sheet
Contract Procurement Request Form
Contract Encumbrance Form
Insurance certificate (if applicable)
Performance/payment bond (if
applicable)
2 vendor signed contracts
Legal: Review
draft solicitation
document and
contract
Legal: Review and
approve final
contract and return
a read-only copy
Aviation Director:
Sign ‘Contract
Encumbrance
Form’ and contract
Complete financial
pre-audit and sign
certification
statement on
contract
Will a PO or
Contract be
used?
PO
Draft solicitation
document, i.e.,
ITB, RFP
Contract
Submit ‘Contract
Procurement
Request Form’
Draft contract and
solicitation
document using
approved
templates
No
Yes
Do contract terms
match Legal
approved template?
PO
Aviation
Purchasing
Aviation Contract Process
Owner
START
Ensure correct
contract form is
used
Send, receive and
evaluate
solicitation
documents
Send approved
contract to vendor
for signature
Edit contract
Complete
‘Contract
Processing Data
Sheet’
Assign contract
number
Forward contract,
‘Contract Procurement
Request Form’ and
‘Contract Processing
Data Sheet’ to Records
Aviation
Budget
END
Process
Step
Legend:
Manual
Automated
Control
Control
Verify available
funds and
complete ‘Contract
Encumbrance
Form’
Gap
32
City of Charlotte, North Carolina
Process Map
Purchasing - continued
Purchasing – Contracts between $50,000 to $99,999
Page 1 of 1
City Finance
Aviation Legal &
Exec. / City
Manager’s Office
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Legal: Draft
contract
NOTE: Contract package includes:
City Manager Memo
Contract Processing Data Sheet
Contract Procurement Request Form
Contract Encumbrance Form
Insurance certificate (if applicable)
Performance/payment bond (if
applicable)
2 vendor signed contracts
Legal: Review
draft solicitation
document and
contract
Legal: Review and
approve final
contract and return
a read-only copy
Aviation Director:
Sign ‘Contract
Encumbrance
Form’ and ‘City
Manager Memo’
Deputy City
Manager: Sign
contract
Complete
financial pre-audit
and sign
certification
statement on
contract
Draft solicitation
document, i.e.,
ITB, RFP
Will a PO or
Contract be used?
PO
Aviation Budget
Contract
Do contract
terms match
Legal approved
template?
Ensure correct
contract form is
used
Process
Step
Legend:
Manual
Automated
Control
Control
Draft contract and
solicitation
document using
approved
templates
No
Submit ‘Contract
Procurement
Request Form’
PO
Aviation
Purchasing
Aviation Contract Process
Owner
START
Send, receive and
evaluate
solicitation
documents
Yes
Edit contract
Send approved
contract to vendor
for signature
Complete ‘City
Manager Memo’
and ‘Contract
Processing Data
Sheet’
Assign contract
number
Verify available
funds and
complete ‘Contract
Encumbrance
Form’
Forward contract,
‘Contract Procurement
Request Form’ and
‘Contract Processing
Data Sheet’ to Records
END
Gap
33
City of Charlotte, North Carolina
Process Map
Purchasing - continued
Purchasing – Contracts over $100,000
Page 1 of 1
NOTE: Contract package includes:
Approved (stamped) Council Action
Contract Processing Data Sheet
Contract Procurement Request Form
Encumbrance Form
Insurance certificate (if applicable)
Performance/payment bond (if applicable)
2 vendor signed contracts
Approve contract
award
Legal / Regulatory:
Determine Disadvantaged
Business Enterprise and
Charlotte Business Inclusion
goals (or waiver)
Legal: Review and
approve final
contract and return
a read-only copy
Legal: Review
draft solicitation
document and
contract
Legal: Draft
contract
Aviation Director:
Sign ‘Contract
Encumbrance
Form’ and contract
City Finance
Aviation Legal /
Aviation
City Council
Executive
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Complete financial
pre-audit and sign
certification
statement on
contract
Aviation Contract
Process Owner
START
Will a PO or
Contract be
used?
PO
Submit: ‘CBI/DBE
Estimate Form’ to
Legal; ‘Request for
Council
Action” to
Contract
Budget; and “Contract
Procurement Request
Form” to Purchasing
Aviation
Purchasing
Draft contract and
solicitation
document using
approved
templates
Post, receive and
evaluate
solicitation
documents
No
Do contract terms match
Legal approved template?
PO
Aviation
Budget
Draft solicitation
document, i.e.,
ITB, RFP
Edit contract and
‘Request for
Council Action’
Yes
Ensure correct
contract form is
used
Confirm ‘Request
for Council Action’
date
Process
Step
Complete
‘Contract
Processing Data
Form’ and attach
stamped ‘Request
for Council Action’
Assign contract
number
Legend:
Manual
Automated
Control
Control
Forward contract,
‘Contract
Procurement
Request Form’
and ‘Contract
Processing Data
Sheet’ to Records
Verify available
funds and
complete ‘Contract
Encumbrance
Form’
END
Gap
34
City of Charlotte, North Carolina
Process Map
Purchasing - continued
Purchasing – Vendor Management
Page 1 of 1
START
Request new
vendor
City Finance
Department
Process Owner
City of Charlotte, North Carolina: Charlotte Douglas International Airport
Obtain vendor
information from
Compass system,
W-9
Enter vendor
information in
GEAC system
Enter vendor
additions/changes/
deletions in GEAC
Vendor Activity
Report received
and reviewed on a
periodic sample
basis
Annually review
vendor master file
to identify needed
changes or
deletions
Vendors
Yes
Yes
City Shared
Services –
Procurement
Management
Is PO or invoice
payment needed?
END
No
Self
registration?
No
Aviation
Purchasing
Department
Enter selfregistration
information in
Compass system
Submit the Vendor
Set Up Form
Enter vendor
information in
Compass system
Perform due
diligence on
identified vendors
Submit W-9
If identified, enter
vendor additions/
changes/deletions
in Compass
Vendor Activity
Report received
and reviewed on a
periodic sample
basis
Process
Step
Annually review
vendor master file
to identify needed
changes or
deletions
Legend:
Manual
Automated
Control
Control
35
Gap
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