OCA Audit Reports

Issued: December 2007

SUMMARY

The City of Austin grants a franchise agreement to Texas Gas Service (TGS) to operate a natural gas distribution system within the City. According to the agreement, TGS pays the City a gas franchise fee of five percent for every customer located within the corporate limits of the City of Austin. For this audit, we tested whether TGS is remitting this fee for all customers in Austin.

Based on our analysis we concluded that TGS remits a gas franchise fee to the City of Austin for the vast majority of customers located within Austin city limits. However, we identified a small number of miscoded records that resulted in incorrect payments of approximately $11,000 and a net of approximately $2,000 due the City.

We have issued one recommendation that addresses the need for the City to collaborate with TGS to correct the miscoded records identified during this audit and recover the additional fee due to the City associated with the miscoded records.

Download the entire text of our Texas Gas Service Franchise Fee audit report (Size: 269 KB) in Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU07121, by submitting this audit report request form.

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