Quarter 2 - Massachusetts Water Resources Authority

INTERNAL & CONTRACT AUDIT PROGRAM2 nd Quarter FY13HighlightsChelsea Physical SecurityA final report addressing physical security at the Chelsea facility was issued December 31st. A total of 31recommendations were made to strengthen controls. Management addressed issues as they wereidentified.As a result, 19 of the recommendations were implemented prior to the issuance of the report. Therecommendations included an upgrade to the Guard 1 software to enable the tracking and reporting onsecurity rounds, clarifying the written protocol for responding to alarms, maintaining a current restrictedemployee/former employee list, updating the access lists to restricted areas, instituting the use of logbooks intwo storage rooms, enhancing the security over stored MIS equipment, and replacing locks and physicallyhardening doors and windows in certain parts of the facility.Status of Open Audit Recommendations(26 recommendations closed in the 2nd quarter)The Internal Audit Department follows up on open recommendations on a continuous basis. All pendingrecommendations have target implementation dates. When a recommendation has not been acted on in 48months the appropriateness of the recommendation is re-evaluated during a subsequent audit. On closedassignments 98% of recommendations have been implemented.Report Title (date)Boston Water & Sewer Commission CSO Financial AssistanceAgreement (9/18/09)RecommendationsPendingImplementationClosedRecommendations1 2Construction Change Order Pricing (12/31/09)* 3 2Warehouse Practices (9/30/10) 2 8Facility Card Access Controls (2/22/11) 3 17DITP Data Center Access Controls (10/14/11) 5 17Review of Fleet Services Activities (1/9/12) 2 3Chelsea Facility Physical Security (12/31/12) 12 19Total Recommendations 28 68*Recommendations involve an updated construction manual with a target completion of 3/29/13.Audit SavingsThe Internal Audit Department’s target is to achieve at least $1 million in cost savings each year. Costsavings vary each year based upon many factors. In some cases, cost savings for one year may be theresult of work in prior years.Savings FY09 FY10 FY11 FY12 FY13 (2Q) TOTALConsultants $316,633 $194,238 $520,176 $259,245 $230,964 $1,521,256Contractors & $1,262,088 $599,835 $3,129,538 $435,760 $160,313 $5,587,534VendorsInternal Audits $438,027 $206,282 $152,478 $407,350 $141,827 $1,345,964Total $2,016,748 $1,000,355 $3,802,192 $1,102,355 $533,104 $8,454,75439