Water & Wastewater Audit
During our normal review process, we obtained the water and sewer bills for a 138-bed hospital located outside of Atlanta, GA. Once the billing data was received, our team began to analyze the information in order to determine whether the hospital was being billed correctly.
After we investigated the associated rates, the billings tiers, and the utility’s billing process, questions arose as to the amounts reported on the bills. In short, the charged amounts didn’t reconcile with the results of our calculations.
Upon further review and conversation with the utility, it was discovered that a register for one of the meters was misconfigured. This misconfiguration caused the water volume to be double counted each billing period. Water use was also erroneously increased due to a faulty meter repair that had previously taken place by the utility. Another account was being charged fixed fees for a six-inch (6”) meter when the meter was actually only four inches (4”). Lastly, Chelepis identified an issue with how the sewer rates were being applied and passed through on the hospital’s sewer bill.
Some of these billing errors went undetected for five years while others went as far back as seven. In light of our review, the utility agreed to provide a check to the hospital in the amount of approximately $209,000 to account for their historic over-billing. Going forward, the hospital’s sewer charges were reduced by over $63,000 per year.
Needless to say, the CFO for this hospital was very happy with the results of our review; especially since no time was required on behalf of the CFO’s team, normal operations were maintained throughout the process, and no capital outlays were needed.