Niles to upgrade its system for data

The city says it’s not a new issue, but new software will resolve the problem.

By Jordan Cohen

NILES — The state auditor says the city doesn’t know how many vehicles or computers it has.

That’s because the city lacks an accounting system to identify what capital assets it has and which it has unloaded, according to a recent state audit.

The audit calls this lack of an accurate inventory a “significant deficiency.”

“The capital-asset listing for the water, sewer and electric utilities has not been updated since 1996,” the report said.

Steve Faulkner, auditor’s spokesman, said: “Capital assets consist of all equipment from desks and chairs to computers to vehicles that are purchased by the city. [It] includes such items as pumps in a water department or parts for transformers for the electric-utility department.”

Although the audit of the city was conducted for 2007 and just released, it’s not the first time the state auditor has questioned Niles’ internal controls, according to city Auditor Charles Nader.

“They’ve mentioned this before, and they will again when they release their 2008 audit and 2009 audits,” Nader said, “However, we have told them we are taking steps to fix this.”

Nader said the city’s $2 million computerization and wireless improvements will include software that will cover all capital-assets inventory. City officials previously said they hoped to have the software online within a year.

Several department heads say they were never told to maintain a master list of all capital assets and were not questioned about inventory during the state audit.

“No one ever said a word to me about it when they were here,” said James Newbrough Jr., light-department superintendent. “The only thing they asked me was for copies of contracts that went through the Board of Control.”

Newbrough said that one of his warehouse personnel keeps track of his stock.

“I have a pretty good idea of all the material I have because I have to keep the right stock for an emergency,” Newbrough said. “I’m sure the inventory issue will be addressed.”

Randy Fabrizio, superintendent of the water department and waste-treatment plant, said that he, too, was never asked to maintain a master list but is well aware of department equipment and property.

“We have an inventory of vehicles, and anything that we need above $500 is submitted to the Board of Control,” Fabrizio said. “Whatever they ask us to do, we’ll do.”

The state auditor’s report mentions Niles’ plans for computerization of its inventory and indicated that moves were under way to contact an appraisal firm for a complete re-evaluation of inventory and assets.

Mayor Ralph Infante said city officials have periodically discussed hiring an appraisal firm for three years.

“I’ve been talking with the city auditor about that,” Infante said. “It’s just a question of finding the right company at the right price. The state audit did not contain any findings for recovery against the city.”