OCA Reports

Issued: September 2009

This report presents the results of Austin Energy’s Customer Information System (CIS) Billing Audit. This audit was approved by the City Council as part of our office’s FY 09 Service Plan. The purpose of this audit was to determine whether customers are properly billed for all utility services provided and to follow up on high-risk recommendations related to the non-metered fee audits performed by our office in 2004.

We found that, overall, Austin Energy (AE) bills customers correctly for metered utility services, which include charges for electricity, water, wastewater, and garbage, and represent the vast majority of utility charges billed through CIS. Further, we found that AE, Solid Waste Services (SWS), and the Watershed Protection Department (WPD) have significantly improved the administration of the non-metered fees since our 2004 audits; however, controls over the administration of non-metered fees could be strengthened.

From our analysis of a sample of CIS accounts, we conclude that some inconsistencies and inaccuracies in the administration of the non-metered fees still exist, though they are not as significant as those found in the 2004 audits. After analyzing the sample of accounts selected, we found patterns of errors in certain types of accounts. Specifically, we found that the City often assesses the non-metered fees in error on residential accounts for newly built homes, which are still in the name of the builders. Additionally, we found that the City assessed the non-metered fees inconsistently for premises located along Lake Austin below the 504.9’contour line.

We also observed some organizational disconnects among departments and divisions and a lack of documentation of billing processes resulting in inefficiencies. For example, AE, SWS, and WPD do not always have clearly defined expectations of each entity’s roles and responsibilities in the billing process. Further, AE lacks shared criteria and clearly defined policies regarding the imposition of certain fees and charges among divisions within AE, which may result in customers being treated inconsistently. Finally, our experience while conducting this audit and working with AE divisions revealed a lack of communication and a lack of clearly defined billing policies and procedures.

We have issued 9 recommendations to improve efficiency and to ensure complete, accurate, and timely billing of all utility customers. AE agreed to implement all 9 recommendations.

Finally, as a result of this audit, we identified one issue for further study. The process for assessing the Transportation User Fee (TUF) and the Drainage User Fee (DUF) on commercial accounts may not ensure that all eligible accounts are assessed these fees accurately and in a timely manner.

Download the entire text of our Customer Information System (CIS) Billing Auditin Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU09104, by submitting this audit report request form.

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