City of Independence, Missouri

City announces Independence Power and Light Financial and Management Audit results

Members of the City’s Finance and Audit Committee heard an overview of the Independence Power and Light (IPL) Financial and Management Audit on July 12. This assessment was conducted at the request of City Manager Zach Walker and will be utilized as a management tool to help the new City leadership shape the future of IPL.

 

“There is no question IPL is in a period of transition as we convert from coal to natural gas and expand the solar farm,” City Manager Zach Walker said. “IPL has done and continues to do an excellent job and they have the national recognition to prove it. But, to ensure the continued growth of this service, we must identify ways to improve operations going forward.”

 

The audit report, which will be available in its entirety in coming weeks, includes 28 recommendations. Those that were highlighted during the meeting included:

  • Conduct a rate study to address the current financial challenges including negative cash flow and negative net income.
  • Complete software enhancements to provide improved inventory controls and management systems, and to facilitate meter reading scheduling.
  • Complete a New Generation Master Plan evaluating the future of power generation within the City.
  • Evaluate the existing staffing structure to better meet current mission and operation needs.
  • Update personnel policies and procedures to meet staff needs and the desire for a high-performing culture.

 

City management has reviewed findings with the consultant, Management Partners and Michael Bell Management Consulting (MBMC), and has already implemented a management matrix for the 28 recommendations with regular updates on the status of each corresponding project planned.

 

“It is important to note that as we move forward with these recommendations, the citizens of this City and customers of IPL are our core concern,” Walker said. “We are working to ensure our City utilities are an effective, efficient service for all of our customers. The steps we take as a result of this assessment will not be done lightly and we are confident they will result in a strong future for IPL, City employees and the customers.”