Audit returns $14K in savings for city
Published 12:10 am Monday, May 12, 2014
NATCHEZ — An audit of the City of Natchez’s utility bills by an independent company recently found more than $14,000 in savings for the city.
Natchez Information Technology Director Ed Bowser reported to the Natchez Board of Aldermen last month that an audit revealed multiple vendors overcharged the city on bills.
The company that conducted the audit, Spiller Consulting based in North Carolina, was able to get approximately $14,600 back from the vendors for the city. Spiller Consulting’s fee is half of what they got back for the city, approximately $7,300.
The majority of the money the city was overcharged was for state and federal taxes that Bowser said vendors did not know the city was exempt from paying.
Spiller Consulting audited the city’s gas, electric and phone bills.
Bowser said he is not familiar with utility company tariffs and tax laws, so it was helpful to work with experts during the audit.
“They know the laws and what to look for,” he said. “A lot of times when new services are activated, mistakes can happen in billing, and we may not catch them. We were very happy to have them to look at that.”
The discovery in the audit that the city was paying taxes from which it was exempt will result in future savings, Bowser said.
If the city adds services in the future, Bowser said it would be a good idea to conduct another audit.
“We just want to make sure the city’s money is being spent wisely,” he said.
Ward 3 Alderwoman Sarah Smith, chair of the city’s utilities committee, said the audit is projected to save the city $22,700 over the next three years.
The audit, Smith said, gave the city a tool to find extra savings that may have otherwise been overlooked.
“It is always a good idea to stay on top of utilities billing to make sure we are being billed correctly and are taking advantage of tax breaks government entities are entitled to receive,” Smith said.