An audit of Richmond's towing-services contract cites poor internal controls, including an inability of officials to verify all revenues due the city.
In a report released Tuesday, City Auditor Umesh V. Dalal said the contract with Seibert's Towing is not being administered because the responsibility is not assigned a particular department or individual.
As a result, he said, the vendor's compliance might not be assured, the receipt of all revenues due to the city might not be verified, and services might not be "furnished, received, invoiced and paid" in accordance with the contract.
Dalal's recommendations include designation of a contract administrator and procedures to ensure that police department citations are coded to allow reconciliation with towing revenues remitted to the city.
To improve customer service, the report also calls for the creation of a website that would allow people to verify that their vehicle has been towed and to get information on how to retrieve it.
As part of the audit, investigators said they looked into allegations that Seibert's had overcharged residents of the Fan District, but they found no instances of excess charges.
The contract, which was renewed this year, covers vehicle-towing from streets and other public property.
The audit looked at the period from July 2008 through February 2010 and does not address a recent situation in which Seibert's had been charging $95 per tow even though its contract listed the price at $65. Saying the higher rate was intended all along, the City Council voted last month to adopt the $95 rate retroactively to the contract's June 1 start date.
In a statement, Seibert's Towing said it is committed to adopting any procedural changes that might be sought by the city.
"Seibert's Towing works closely with the city finance department to ensure that all towing activity and funds are properly reconciled each month. All funds owed to the city from citation revenues are promptly paid twice a month," the statement said.
"There are periodic requests for services that are not adequately addressed under the scope of the contract. In these instances, a fair market rate is agreed upon with fleet services that is generally well below standard retail rates."
wjones@timesdispatch.com
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