Audit finds $164,000 in duplicate GP&L warehouse payments; recommends data controls and tiered reviews

Audit staff presented findings from a review of the Garland Power & Light (GP&L) warehouse service agreement, which covered vendor operations from Oct. 2024 through May 2026. Auditor Jevan said data analysis of invoice and payment records identified "3 duplicate payments totaling $164,000," two of which occurred during a financial-system transition and one during the warehouse transition; management worked with the vendor and recovered the full amount via refunds.

The audit team found the vendor had supplied about $8.5 million in materials under the arrangement and that 92% of requested items were issued within 30 days. Auditors and committee members discussed the vendormarkup: pricing is tied to the vendor's average cost with an 18.5% margin in the selling price. Auditors recommended stronger system controls to detect invoice duplicates and a risk-based, tiered approval process so low-cost items receive streamlined review while high-cost or unusual purchases get additional scrutiny. Management concurred and is implementing a vendor invoice database and Workday alerts with implementation dates in October 2026.

Committee members asked whether the 92% fulfillment rate could be compared to the prior internal warehouse arrangement; auditors said the available test period applied only to the vendor era and precluded a direct historical comparison. Auditors also recommended periodic review of underlying vendor cost information and warranty tracking to ensure the city isn't paying for items covered by warranty.