that the folks and businesses that the police provide extra duty services to are
paying our invoices in a timely manner and they looked at the Accounts Receivable
as of April 1, 2025. Regardless of the status of vendor payment, whether the service
person pays them or not, the city is paying the Police Officers. The expense is ours
and then we wait to be paid in 20 or 30 days. He stated what they determined is that
is 4125, there were 12 customers in the accounts receivable and the total amount
owed to the city, including penalty was over $106,000. Now, after reviewing the aged
Accounts Receivable on the outstanding balance, the Police determined that four
customers could be written off. The last activity for these Accounts Receivable
customers ranged from 2009 to 2020. He stated that this is old stuff that should
have been made to go away a while ago. He stated maybe the business closed or
moved or something like that. The balance to the accounts are really more timely.
Why they might be delinquent, it is nothing outrageous. He stated our
recommendation is that the Police Administration should review the Accounts
Receivable at a more frequent basis and a process should established by the Police
and administration to review those accounts and they agreed that would happen.
One of the things you look for as part of this audit is contracts being the city and the
businesses to authorize the service, to determine what the rate of pay would be, and
to specify what the payment terms are, and penalty if payment is late. He stated that
they reviewed 29 of these agreements and noted that none of the contracts could be
located in either Eden or Munis, nor were they forwarded to the Controller's office as
required. He stated that they feel that all contracts from written obligations should
be properly entered into the Contract Module. He stated and what we learned is
that this arrangement also involves the FOP and officers make arrangements with
the FOP to be considered to do this kind of work and it is the FOP that goes out and
it is more the contracting agent in this relationship with businesses and other people
that want the extra duty services and that's alright or it may be alright, but once
again, it is the city that ends up holding the bag if somebody does not pay or pays
late. They also note that these agreements are not signed by the mayor and it is our
interpretation that he is really the only one that could bind the city to a contract. He
stated that they noted of these 29 agreements, they vary in working terms. He
stated that six of the 29 had late terms and others did not address. None of the
agreements addressed late payments. Whatever agreements are used in the future,
they should certainly be standardized to address that. He stated that they advised
having the Solicitor's office weigh in on that. He stated that he had some
discussions with the administration and the Police Department and they added a
note to their responses to this and it reads as such: after reviewing the above
contract weaknesses approvals, the Police administration recognizes the city's
interest needs to be better protected. A future meeting will need to be scheduled
with the Police Administration, the FOP, the Controller's office, and the Solicitor's
office to review this process. He stated he is hoping that parties can come to some
agreement to give everyone flexibility, but do a much better job of protecting our
core interests. He stated our interest here. He pointed out at the same time and
this is not something that they audited, but something they questioned as a result of
this audit is that they have two very very good academies: Fire and Police. He
stated while they hired and have many of their own candidates there who we hire.
