Working for a safe, affordable, vibrant, innovative, and interconnected city.
Learn More
Seattle.gov Home Page
Seattle.gov This Department
Follow UsTwitterFacebookFlickrpodcastCouncil Connections blogRSS feeds
Seattle City Council Home Page

Visit Individual
Councilmember Pages

Seattle City Council
   Home    Contact Us Council Calendar News & Updates Committees & Agendas Current Issues Council Live Research City Laws  About Us 
Council Blogs
& Social Media Links
Meeting Agenda Archive
Meeting Video Archive
 

Current Issues
Past Issues
Audit Committee
OPA Review Board (OPARB)
Boards, Panels & Commissions
Seattle Transportation Benefit District
Customer Service Bureau
 

About Us/
Frequently Asked Questions
Contact Us
Visiting City Hall
Access to City Hall for Individuals with Disabilities
 

Full Council Action Summary
Work Program
2012 Action Plan
2011 Annual Report
Council Visitors'
Sign in Sheets
Legislative Records
 

LIVE! Council Meetings
Seattle Channel
City Inside/Out
Audio Podcast

Council News Release


FOR IMMEDIATE RELEASE:   
9/7/2012  12:20:00 PM
FOR MORE INFORMATION CONTACT:
Monica Ghosh, Councilmember Godden's office: 206-684-8807; Dana Robinson Slote, (206) 615-0061

Councilmember Jean Godden


Council Committee receives report on March 2012 Seattle Public Utilities fraud
Report details steps taken to protect the City and ratepayers


Seattle The Seattle City Council's Libraries, Utilities and Center (LUC) Committee this morning received a report from the City Auditor and Seattle Public Utilities (SPU) on the steps taken to protect the utility from fraud and theft.

"The findings identified by the Auditor and other assessment efforts taken by SPU will go a long way toward improving internal controls. I'm pleased with SPU's rapid response to the fraud and the steps they have taken to get their financial house in order. I will continue to monitor their progress and ensure that ratepayer dollars are secure," said Councilmember Jean Godden, LUC Committee Chair.

In March 2012, a former SPU employee was arrested for allegedly stealing over $1 million in customer payments related to water main extension projects. At that time, the LUC Committee requested that the City Auditor provide an independent review of internal process breakdowns that allowed the fraud to go undetected. The Committee also directed SPU to take immediate action to address lax procedures that were exploited.

Through the work of the City Attorney's office, the $1 million loss will likely be fully recovered.

In the audit report released today, the City Auditor identified three main areas of internal control weaknesses: lack of segregation of duties; lack of appropriate management oversight of financial transactions; and unauthorized system access.

SPU has already started to fix internal processes identified by the Auditor. The City Auditor will monitor SPU's progress on audit recommendations and has identified other areas of potential risk and recommendations.

The Council will continue to monitor SPU's activities, ensuring it is doing everything possible to protect ratepayer funds and operate a strong and transparent department.

Seattle City Council meetings are cablecast and Webcast live on Seattle Channel 21 and on the City Council's website. Copies of legislation, Council meeting calendar, and archives of news releases can be found on the City Council website. Follow the Council on Twitter and on Facebook.

Contact us



   
City of Seattle LogoSeattle City Hall
600 Fourth Ave. 2nd Floor
Seattle, WA 98104
Visiting City Hall

Access to City Hall for Individuals with Disabilities
Mailing Address:
PO Box 34025
Seattle, WA 98124-4025
Phone: 206-684-8888
Fax: 206-684-8587
TTY/TDD: 206-233-0025
Listen Line: 206-684-8566

Non -English Language Information