ACF 653 A recent
City of AB City report indicated
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A recent City of ABCity report indicated that there would be a
record number of homeless over the next few years, so the city decided that it
was important to make shelters available. Accordingly, contracts were
signed with 2 hotels in the downtown area over a 3-year period. The
hotels committed to have rooms available in the 2 coldest months of the year
and the city agreed to pay for the rooms at a rate of $40 per night. The
hotel rooms were intended for homeless families. At the same time, local
churches got together and arranged to have volunteers staff the churches and
provide hot meals so that the churches could be used as shelters by single
individuals. The result was that the hotel rooms were not used, and over
the period of three years, the city paid almost $850,000 for empty rooms. This
was publicized in the local newspaper and the City Manager has asked you to
provide her with a report for her reference. Of particular importance,
she would like your recommendations on ensuring benchmarks and an alternative
approach for use in future years.
Required:
As an Internal Auditor with ABCity and using a Case Solution
Format (Problem Statement, Issues, Alternatives & Analysis of Alternatives,
Recommendations & Conclusions), write a brief report to the City Manager
(hint, you will want to take note of the text’s reference to the
“Effectiveness” aspect of an internal auditors’ work)
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