WP Audit of Parking Services

#2001.00

This audit program is designed to determine if adequate process and security controls are in
place for the cash handling and initial purchase and distribution of University parking
Description passes and that the ticketing and appeals process controls are adequate.

Revision Info This program was last reviewed/updated on

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Step Audit Procedure By
BACKGROUND & PLANNING
1. Obtain adequate background information on the audit
area such as:

General ledger account listing

Audit reports from other audit and/or compliance
groups
Productivity and performance measurement
reports/stats
Financial reports/statements
Policies & Procedures
List of information technology applications utilized
List of laws and regulations
Obtain listing of Purchase Card (PCard) holders from
Administrator and an additional list from Regions
Bank
Obtain complete employee listing

2. Review policies and procedures for completeness

verifying they at a minimum address compliance with
laws and regulations.

3. Examine productivity and performance measures for

trends to assist in the developing audit scope.

4. Review financial reports/statements for unusual

trends/fluctuations.

INFORMATION SYSTEMS
The following represents general information systems testwork to be performed if warranted
based on the risk posed by individual systems.
5. Determine and list the primary information systems
utilized within the operations. Consider performing the
following testing based on the risk.

Assess backup procedures for system failure

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Step Audit Procedure By
6. Review the process for granting and terminating user
access. Perform detailed testing to determine if access is
terminated timely.
7. On a sample basis, test specific user access to determine
if access is commensurate with job functions.
Additionally, determine if access promotes adequate
segregation of duties.
8. Perform testing where necessary to determine if system
data is adequately backed up.
9. Determine the nature and extent of system interfaces.
Review (perform testing of) interfaces to determine if
data is accurate, complete and timely. Also consider
whether there is a process to address interface errors.
10. Determine the effectiveness of basic application controls.
Consider the following:

Does the system

Promote the use of strong passwords

Contain an appropriate audit trail
Contain adequate input validation controls
SPACE PLANNING
11. Obtain copies of processes, policies and guidelines from
Parking Operations website and include any relevant
information in the planning section and process
documentation.

12. Determine if there is a process in place to forecast

enrollment goals / campus expansion / against current
parking accommodations.

13. Evaluate the established parking rates and determine if

they are optimal to fund future costs of the new facilities
and deferred maintenance.

14. Determine what the current parking capacity is to

include by Designated, Premium, Handicapped, Vendor
and any others

15. Determine whether Parking has adequate procedures to

monitor compliance for the number and location of
disabled parking spaces as defined in the Americans
with Disabilities Act.

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16. Determine whether Parking has an accurate inventory of

reserved spaces and whether revenues are complete for
all assigned spaces.
Diagrams of Parking Lots with spaces
Parking Spaces Summary

17. Determine the process for capitalizing parking structures,

depreciation of the garages, surface lots, vehicles and
technology infrastructure.
STAFFING AND STAFF PLANNING
18. Gain an understanding of the staffing and staff planning
policies and procedures including:

Capacity planning
Scheduling
Qualifications
Insurance
Background Checks, etc

19. Obtain a listing of all current employees and staffing

requirements for each shift and assess adequacy.

20. Perform detailed testing of employees and ensure

adequate due diligence was performed on employees
prior to hire. Depending on the job function consider the
following:

Document if background checks are conducted on all

employees
Drivers license verification for student /staff if
applicable
Determine if driving record is reviewed for
employees using UNF vehicles to include golf carts
Document if cash handlers are bonded

21. Verify completion of training for individuals using golf

carts

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TRANSPORTATION EQUIPMENT / OTHER

22. Determine how many and what types of vehicles are

maintained for the parking services department

23. Annotate the process for:

Signing in / out parking services vehicles
Scheduled maintenance on parking services
vehicles
Fuel consumption verification

24. Perform an inventory count of parking services

transportation equipment (i.e. golf carts, cars, trucks, etc)
and ensure items listed in general ledger exist.

25. Review sign in/out logs. Evaluate the method used to

account for vehicle usage. For example, for motor
vehicles, review mileage logged consumption for
excessive usage.

26. Review maintenance records to ensure vehicles receive

timely service at reasonable prices from approved
service providers.

27. Review fuel consumption for reasonableness. Determine

if purchases are reasonable for the size and type of
vehicle.

28. Determine the nature and extent of other relevant

parking services equipment (i.e. handheld ticket
scanners, boots, etc).

Perform testing to similar to that detailed above to

Determine if equipment is adequately protected
(review security)
Determine if equipment on the books actually
exists (i.e. inventory count)
Ensure equipment is adequately maintained

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PERMIT INVENTORY CONTROL

29. Determine and describe type of permits (i.e. daily,

vendor, temp, semester, etc), where they are stored, and
inventory control/replenishment process.

30. As necessary, perform detailed testing of permit

inventory for each type of permit. Include objectives
covering:

Permit security
Accountability (i.e. sign in/out process where
applicable)
Reconciliation

PERMIT DISTRIBUTION

31. Obtain an understanding of the different types of

distribution methods and parking pass types. Describe
the various methods and based on risk, design audit tests
to address each. Inquire about and consider the
following:

Drive up windows
Walk up windows
Online purchases
Self service terminals

Cash purchases
Credit card via walk up
Credit card via internet
Check and money order purchases

32. Physically walk around the parking lots and select a

sample of Premium, Designated and Reserved, by
recording the plate numbers and permit numbers. Vouch
to the student application and employee application
forms or supporting documentation, and to the computer
system records. Further ensure the permits are valid for
the particular parking lot.

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Step Audit Procedure By
PERMIT DISTRIBUTION Walk up/Drive up Windows

33. Observe walk up/drive up window procedures and note

any process deficiencies.

34. Assess the security of the area including:

Opening and closing procedures

Security cameras and panic buttons
Security of sensitive documents (i.e. credit card
receipts, customer information, etc)

35. Depending on risk, perform a cash drawer audit of select

operators.

36. Trace a sample of receipts to department settlement

records and deposit records. Ensure deposits are
accurate and timely. Also ensure deposits are
constructed in a manner that allows transactions to be
traced and/or reconstructed if necessary.

37. Review procedures for checking in/out physical parking

permits. If necessary, perform detailed testing.

Self Service Terminals

38. Gain an understanding of and document self service

terminal operations. Consider the following:

Location of terminals (i.e. obtain map if available)

Accepted payment methods (i.e. cash, credit card,
etc)
Terminal security
Cash withdrawal
Terminal maintenance

39. Physically observe/review select locations to determine

if terminals are:

Easily accessible
In conspicuous locations
Adequately locked/secured

40. Evaluate reload/replenishment process (i.e. money,

paper, etc).
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If managed by a third party, review contractual

agreement and ensure adherence to agreement by review
pick up logs and deposits.

If managed internally

Evaluate replenishment schedule and ensure it is

adequate based on activity. If ad hoc, evaluate
notification process (i.e. automated terminal
notification) and ensure management follows up
timely.
Directly observe the process and notate security
practices.
Trace deposits and withdrawals to appropriate
ledgers, banks, etc.

Registered Guests and Vendors

41. Gain an understanding of and document the process for

distributing passes to registered guests and vendors. For
the purposes of this program, a registered guest is
defined guest of a department in which the department
will pay for the pass.

42. Depending on risk a volume, select a sample of guest

passes and perform testing determine if:

Funds were collected

Pass was for a valid guest
Pass was appropriate approved by department
personnel

Special Events

43. Obtain an understanding of and document the processes BHE 2500.00

associated with special event parking services. Consider 2500.01
the following: 2500.02

Parking expense funded by on campus department

Parking expense funded by event participant
Special staffing
Pass distribution (i.e. special passes, different
pricing, etc)

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Step Audit Procedure By
44. Perform detailed testing of special event parking and
determine if:

Appropriate amounts are charged

Amounts are collected and deposited in a timely
fashion
Reconciliations are timely and accurate

PARKING ENFORCEMENT CITATIONS

45. Obtain an understanding of and document the processes

associated with distributing parking violation citations.
Spend time directly observing personnel performing this
function (i.e. ride along side enforcement agents).
Consider the following:

There may be a variety of processes (i.e. personnel

on foot, in golf carts or bicycles, in motor vehicles).
Consider shadowing each different process.
Ticket pad or electronic ticket distribution devices
Time keeping controls
Designated patrol areas (i.e. are they covering their
assigned area, it the area adequate, etc)
Ability to void transactions

a) If ticket pads are utilized, review the controls for

checking out pads (i.e. ensure workers sign out
pads prior to starting a shift and sign in at the end of
the shift).

b) If an electronic ticketing device is utilized, ensure

personnel devices are checked in/out appropriately.

Ensure devices have appropriate access controls (i.e.

authentication via username/password, id, etc).

c) Determine if individuals can void transactions in the

field. If so, determine the circumstances in which
this can happen and evaluate the appropriateness of
the process (i.e. can personnel void transactions for
friends, be paid off, etc).

46. Obtain a listing of citations distributed for a specified

time period. Perform the following detailed tests:

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Step Audit Procedure By
Review the listing for citation number sequence
gaps. Investigate any gaps.
Ensure relevant information is captured (i.e. vin
number, plate number, make, model, color, etc)
Ensure reason code or other explanation is included
Determine the outcome for situations in which agents
habitually neglected to obtain sufficient information
(i.e. how are agents reprimanded and how the issues
are resolved).

PARKING ENFORCEMENT COLLECTIONS & ACCOUNTS RECEIVABLE

47. Obtain an understanding of the collections and accounts

receivable processes. Document the processes.
Consider the following processes:

Collection efforts (i.e. letters, phone, etc)

Quality of customer correspondence, contact, etc (i.e.
accuracy of information, timing, frequency, etc)
Collection methods (i.e. locations, accepted funds,
etc)
Write offs and aging
Collection agency utilization

48. Obtain the accounts receivable listing and/or aging

schedule.

Test the schedule for accuracy

Test outstanding items against the organizations
write off policy.
If applicable, obtain an understanding of why items
violate the policy.

49. Evaluate the customer correspondence between Parking

Services and the customer. Test customer
correspondence (i.e. letters, email, etc) and review/trace
to source system to determine:

Customer information is accurate

Calculate amounts are correct
Correspondence is timely

50. Collection Points

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51. Obtain a listing of write offs for the previous 3 years up
to the most recent activity. Determine if activity is
consistent with the write off policy. Obtain
documentation demonstrating write off justification and
approval.

52. Determine the extent of accounts receivable adjustment

activity (i.e. deferred payment plans, promissory notes,
outstanding balance adjustments, etc).

a. Obtain a listing of this type of activity and evaluate

to determine if transactions:

Were adequately approved

Are reasonable
Are in compliance with policies governing this type
of activity

53. Obtain an understanding of and document the processes

associated with freezing and/or placing a hold on
customer accounts. Consider the following:

At what point is the hold placed

Is the methodology consistent
How is the freeze notice communicated
Who has the authority to override and is this
authority commensurate with job function

54. Obtain a listing of all outstanding (unpaid) tickets.

Obtain a listing of outstanding tickets with current
account holds.

a. Determine if current account holds are consistent

with company policy.
b. Determine if there are outstanding items eligible for
holds, without current holds. Examine the reason.
c. Determine if account holds were adequately
approved.

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PARKING ENFORCEMENT BOOTING AND TOWING

55. Gain an understanding of and document the processes

associated with applying boots to vehicles. Interview
relevant personnel and attempt to observe the process.

56. Obtain a listing of all boots applied during the current.

This includes boots currently on vehicles as well as those
that have been removed.

a. For boots currently on vehicles, use the listing

supplied by Parking Services to locate the vehicle.
Ensure the vehicle and boot exists in the listed
location.

b. For boots that have been removed, review

documentation to ensure removal was appropriate.
For example:

-Boot removal should be accompanied by payment

of outstanding balance. Therefore, trace payment.

-If payment was voided or reduced, determine

reason and evaluate for reasonableness and
compliance with organizational policy.

-Ensure boot removal authorization is conducted by

an authorized individual.

57. Obtain an understanding of and document the processes

associated with the towing of vehicles. Consider the
following:

Agreements with towing companies

Fees and payments to tow companies
Criteria for initiating a tow
Communication with vehicle owner prior to towing
Post tow communications

58. Obtain a listing of vehicles towed within previous 12

months and a tow watch list. If there is no watch list
determine how the organization determines when a
vehicle will be towed. Test for the following:

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a. Determine if adequate notice was provided to vehicle
owner.
b. Determine if vehicle owners are provided sufficient
information as it relates to the retrieval of vehicles.
c. Determine if the required fees (due us) are paid prior
to the release of the vehicle.

PARKING APPEALS AND VOIDS

59. Gain an understanding of and document the appeals

process. Consider the following:

Method of appeal
Decision makers involved
Method for compiling and tracking appeals
Evaluation process
Communication with vehicle owner

60. If the appeals process is contained within a committee

structure, review the committee by laws, policies, etc.
Determine if the committee composition is adequate (i.e.
consistent with policy and/or promotes good controls).
Attend a committee meeting and note observations.

If the appeals process is not a committee, evaluate the

structure and ensure appeal authority flows through and
individual with the knowledge and ability to make sound
decisions.

61. Obtain a listing of all appeals (pending, denied, and

accepted) for a predetermined time frame (i.e. 12
months, 24 months, etc). Perform the following tests:

a. Determine if appeals are addressed in a timely

fashion.
b. Determine if the review process is fair and equitable.
c. Ensure proper approvals are included with accepted
denied and accepted appeals.

62. Gain an understanding of and document the void

process.

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Step Audit Procedure By
63. Obtain a listing of all voids for a predetermined time
period (i.e. prior 3, 6, 12 months, etc). Perform detailed
testing to determine if:

Voids are approved by adequate personnel

Supporting documentation substantiates void
Voids are accurately accounted for in the system
Controls and processes provide adequate segregation
of duties (i.e. person initiating citation does not void
transaction)

PROPERTY MAINTENANCE

64. Discuss property maintenance to determine

requirements, daily, weekly and monthly activities and
scheduling.

THIRD PARTY PROVIDERS

65. Determine what third parties are involved in the parking
services function to include property maintenance and
repair.

INSURANCE

66. Determine the Insurance requirements for both the

vehicles and employees

BUSINESS CONTINUITY PLANNING

67. If necessary, obtain and review the departments
business continuity plan. Determine if the plan
identifies, at minimum:

Critical Business Processes

Applications & Systems
Process Dependencies
Process Recovery Procedures
Recovery Site Information
Contact Lists Including
o Employee Contact Information
o Department Notifications
o Vendor Notification
o Other Emergency Contact Numbers (Local EMS,
Fire, Police, Etc)
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68. Determine if the plan is tested regularly. Obtain and

review the most recent testing documentation.

WRAP UP
69. Notate all issues on the issue log.

70. Submit work papers for review.

71. Clear review notes.

72. Prepare draft report.

73. Prepare final report.

74. Return original client documentation.

75. File work papers (manual and/or electronic).

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