Risk Matrix
Municipal Water System
Accounts Receivable

"A" = Actual Control "P" = Proposed Control

    CONTROLS                                                                                    
THREATS C-01 Fixed monthly charges are programmed in the computer. C-02 Consumption information is obtained from field reads which are input into handheld computers and are pre-programmed to assure all meters are read monthly. C-03 New accounts and customers are entered into the computer. C-04 Each of the four billing cycles is prepared in the same week of month. C-05 Bills are calculated by the computer. C-06 Trial and final billing runs are generated before bills are printed. C-07 All delinquent bills including utility tax are referred to the Finance Department for collection. C-08 Water rates and charges are taken from City Council Ordinance and programmed into the billing computer. C-09 Test bills are generated to validate the accuracy of the calculations and rates. C-10 Only the consultant under contract with MWS has the knowledge to change the rates. C-11 If an invoice was lost, and the customer did not notify the SJMWS the next month's bill would carry an unpaid balance as well as the current charges for the total due. C-12 MWS requests a specific mail date on the service form. C-13 MWS follows up actual mail date of invoices. C-14 If an error was made in inputting the address, the bill would be returned and a corrected bill issued. C-15 Manual adjustments are reviewed by the supervisor. C-16 Adjustments are made within three days of receiving approval by the supervisor. C-17 All adjustments must be reviewed and approved. C-18 Only limited staff have the knowledge to make changes. C-19 The customer account will show a credit balance if overpayment occurs. C-20 If underpayment occurs, the account will show an unpaid balance that will be added to the next month's charge for a total due. C-21 A report could be generated identifying accounts which had a payment posted the day the information was lost or stolen. C-22 MWS facility is equipped with a security alarm. C-23 Posted receipts and computer backup tapes are kept in a fireproof safe. C-24 All payments are deposited the day received or the next business day. C-25 MWS terminates service to customer after allowed delinquency period has expired. C-26 MWS refers non-paying, closed accounts to Finance-Treasury for follow-up and collection. C-27 Invoices are automatically posted by the computer after the final billings are generated. C-28 Account Clerk and Supervisor review a trial billing report prior to final billing and posting of invoices to the system. C-29 Payments and invoices must balance or the batch will not be recorded by the computer. C-30 Customer would notify SJMWS about the error. C-31 A bar coding system is used to post full payments. C-32 The supervisor reviews and reconciles posting of payments prior to updating the system. C-33 All payments are posted the day received. C-34 Adjustments are made within three days of receiving approval. C-35 All adjustments are reviewed and approved by the supervisor. C-36 All activities in the computer are saved on tape which is stored in a fireproof safe. C-37 All invoices and bank deposit slips are saved and stored in a separate building. C-38 The daily report is verified by comparing totals on the report with the totals by payments received and invoices posted. C-39 MWS and the Finance Department review to insure that the amount deposited is balanced to the recorded payment/collection. C-40 The data input into FMS is from the daily balanced totals. C-41 The software and hardware supplier can provide new hardware and/ or additional copies of the software. C-42 The daily backup tapes, the software tapes, and any other necessary software are kept in a fireproof safe. C-43 A list of all adjustments is kept by the office manager. C-44 Development fees were reviewed and approved by the City Attorney before being adopted by the City Council.
T-01 Billable item is not billed. A A A                                                                                  
T-02 Billable item is not billed promptly.       A                                                                                
T-03 Billing is in error.         A A                                                                            
T-04 SJMWS does not charge the appropriate or correct penalties and interest as set forth in the Code Sections 4.68.090, 4.68.140, and 4.68.150 for delinquent taxes and service charge payments.             A                                                                          
T-05 The basis for calculating water rates is in error.               A A A                                                                    
T-06 Invoice is not mailed.                     A                                                                  
T-07 Invoice is not mailed promptly.                       A A                                                              
T-08 Invoice is mailed to wrong address.                           A                                                            
T-09 Invoice adjustment is in error.                             A                                                          
T-10 Invoice adjustment is not made promptly.                               A                                                        
T-11 Invoice adjustment is not properly authorized.                                 A A                                                    
T-12 Payment is in error.                                     A A                                                
T-13 Payment is lost due to theft or fire.                                         A A A                                          
T-14 Payment/collection is not deposited promptly.                                               A                                        
T-15 Delinquent invoice is not collected promptly.                                                 A A                                    
T-16 Write-off is not properly authorized.                                                   A                                    
T-17 Invoice is not posted.                                                     A                                  
T-18 Invoice is posted in error.                                                       A                                
T-19 Invoice is not posted promptly.                                                     A                                  
T-20 Payment is not posted.                                                         A A                            
T-21 Payment is posted in error.                                                         A A A A                        
T-22 Payment is not posted promplty.                                                                 A                      
T-23 Adjustment is not posted.                                                           A       A                    
T-24 Adjustment is posted in error.                                                                     A                  
T-25 Adjustment is not posted promptly.                                                           A       A                    
T-26 Accounting record is lost or damaged due to fire or theft.                                                                       A A              
T-27 Report is in error.                                                                           A            
T-28 Recorded payment/collection differs from amount deposited.                                                                             A          
T-29 Detailed record differs from the general ledger.                                                                               A        
T-30 Computer hardware, software, and files, are lost due to theft, fire, and other unforseen events.                                           A                                     A A    
T-31 Entry to computer file is unauthorized.                                 A A                                                 A  
T-32 MWS does not comply with the State government code sections under 66000 (AB1600) regarding fees charged for development projects.                                                                                       A

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