Frequently Asked Questions
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Audit FAQs
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Audit FAQs
A contract was signed with SL-serco on Oct. 31, 2024.
Headquartered in Minneapolis, MN, SL-serco has offered utility consulting for over 60 years. They specialize in field troubleshooting, data analysis, project management, and industry training for water, electric, and gas utilities.
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Audit FAQs
A representative from independent contractor SL-serco Inc. will travel to Billings and begin examining residential meters on Wednesday, Nov. 6, 2024.
The firm randomly selected residential customers they would like to visit to conduct an electronic review of the home’s water meter and began scheduling appointments on Nov. 1, 2024.
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Audit FAQs
The following is a list of tasks agreed to by the City and SL-Serco.
CONSULTANT RESPONSIBILITIES:
•Communicate the impact of client requests for adjustments to service
•Perform project status and compliance reporting monthly.
•Determine if the measurement of water consumption was converted appropriately and billed accurately in accordance with data stored in Neptune 360.
•Determine if the last meter reading in the legacy system was imported correctly into VertexOne.
•Determine if customers were billed according to approved rate schedules.
•Determine if prorations between fiscal years and tiers was calculated accurately.
•Determine if the billing data from VertexOne was correctly reflected on the bill image.
•Determine if wastewater charges were calculated correctly.
•Determine if storm and garbage fees were billed correctly based on the abnormal billing periods. Verify proration if applicable.
•Verify that billing cycles and periods were maintained correctly (i.e., no double billing for same or overlapping periods).
•Verify that automatic payments for customers on autopay match what was billed (i.e., no extra debits have been taken).
•Review the CITY’S decision-making process and public communication related to the bills in question. Document where CONSULTANT observes opportunities for process and communication improvements.
•Review summary bill process and multi-account holders online access compared to the industry best practice.
•Report findings to staff and council including a description of the processes used throughout the review and a presentation at a public council meeting.
CITY RESPONSIBILITIES:
•Tracking and payment of invoices within 30-day terms.
•Provide feedback as needed throughout the project as well as at the end.
•Provide data from current and past billing systems as needed.
•Provide access to the Neptune Advanced Metering System.
•Assist with access to meter locations.
•Make staff available to discuss billing processes, fees, rates, etc.
•Review data and findings as the Audit proceeds, as needed.
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Audit FAQs
SL-serco will select accounts at random to thoroughly examine every detail of the billing process.
The number of meters and accounts examined will be determined by the firm to provide the necessary statistically valid data needed for the audit.
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Audit FAQs
The firm will select accounts at random. This allows the firm to create statistically valid data needed for the audit.
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Audit FAQs
Findings will be available once the entire audit is complete. Upon completion, a representative of SL-serco will present the audit results to the Billings City Council during a public meeting.
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Audit FAQs
The price of the audit service is $33,000.
The City also decided to proceed with additional meter testing, which will cost an estimated $42,500. This optional step brings the audit’s total to $75,500.
During the additional meter testing, residential water meters will be randomly selected, and with the property owner’s approval, will be physically removed and tested for accuracy.
SL-serco will hire a third party to conduct the water meter testing and will compile the results into a secondary report.
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Audit FAQs
Since the firm selection process began, residents have been understandably concerned about who will pay for the audit’s cost.
At this moment, the payment will come from utility finances. If the audit reveals that another entity is responsible for any errors, the city will pursue a remedy.
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Audit FAQs
City administration will update our community on SL-serco’s progress via social media and the City website. Although the results won’t be shared until the report is complete, we will announce when the firm reaches significant audit milestones.
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Audit FAQs
During the firm selection process, the City researched several agencies and requested additional information from three finalists. SL-serco was selected because they can analyze everything from meter to bill, whereas other companies specialized in a subset of the desired audit.