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01-07-2016 - 15-505 - Vendor Audit - B & Y Pest Control, Inc. – Vendor Report

B&Y overcharged the City a calculated $13,692 on the invoices for services during the 18-month audit period. Invoicing errors were difficult to detect because B&Y did not include all the required information and itemization on its invoices. In addition, B&Y did not consistently record all the information required by the New Mexico Department of Agriculture.

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Executive Summary

The Office of Internal Audit (OIA) conducted a citywide vendor audit of B&Y Pest Control, Inc. (B&Y). Vendor audits are included in OIA’s fiscal year (FY) 2015 audit plan and B&Y was selected for audit. In the midst of the audit, B&Y’s contract with the City of Albuquerque (City) expired and the Department of Finance and Administrative Services did not renew the contract. As the audit was already underway and the City had received multiple complaints from various City departments pertaining to B&Y’s services and billings, OIA continued and completed the audit. Some of the departments’ complaints against B&Y Pest Control involved inaccurate billings, unperformed services, and falsified records. The City paid B&Y more than $105,000 for pest control services during the 18-month audit period.

Findings

The audit found that B&Y did not fully comply with contract requirements. Specifically, B&Y:

  • Inaccurately billed the City on multiple instances;
  • Did not include all the required information on invoices; and
  • Did not always include all information required by the New Mexico Department of Agriculture on service records.


Recommendations

B&Y Pest Control should:

  • Refund the City $13,692 for overbillings,
  • Itemize its invoices as required in the Vendor Handbook, and
  • Fully comply with all applicable federal, state and local laws, rules and regulations.

B&Y disagrees that the organization overbilled the City, and believes the discrepancies were the result of deficient City practices. B&Y will be implementing a system that will correct the information deficiencies noted in the audit.