Audit prompts changes at MLGW

Charitable program receives overhaul ONLINE

An internal audit report last year pointed out problems in a charitable program that Memphis Light, Gas and Water Division operates to benefit MIFA, and the utility has corrected the issues, MLGW president and CEO Jerry Collins Jr. said Thursday.

“It’s my understanding from staff that every audit recommendation has been implemented,” Collins said.

The June internal audit report focused on the Plus-1 program, in which MLGW customers contribute one dollar or more on their utility bill to aid the needy.

MLGW gives the money to Metropolitan Inter-faith Association, which distributes it to people who need help with their utility bills because of events such as serious illness or recent unemployment.

Customers donated $536,000 to the Plus-1 program from 2008 t hrough 2010, and revenue from employee donations and other sources brought the program’s total revenue during the period to about $816,000, according to the internal audit department.

The audit report by accountant Cassandra Stockard and senior auditor Anya Perry pointed out several issues:

Records showed that payments to MIFA were sometimes made months after the money arrived at MLGW, and that multiple months were paid at one time. Managers agreed they needed to make the payments faster.

No one area or person was assigned to monitor the program and no formalized procedures were in place. The utility later assigned its communications and public relations department to oversee the program.

The auditors recommended that each customer who donates should receive a receipt .

Collins pointed out a sec- Visit commercialappeal.com and click on the link with this story to view the entire audit report. tion of the internal audit report that says all donations that arrived through utility bills and payroll deductions were properly recorded and given to MIFA.

“And that should give customers confidence that the money’s going where it’s supposed to go,” Collins said.

To learn more about the program, visit plus1memphis.org or call MIFA at (901) 527-0208. — Daniel Connolly:

(901) 529-5296