FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION

Transcription

1 FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION INTERNAL AUDIT SECTION REPORT # A-0910DEP Commonwealth Boulevard Mail Station 41 Tallahassee, FL

2 TABLE OF CONTENTS TABLE OF CONTENTS... i SCOPE AND OBJECTIVES... 1 METHODOLOGY... 1 RESULTS AT A GLANCE... 2 BACKGROUND... 3 RESULTS... 3 CONCLUSION... 4 FINDING AND RECOMMENDATION... 5 DIVISION RESPONSE... 8 i

3 SCOPE AND OBJECTIVES The scope of this audit included select activities at during the fiscal period of July 1, 2008 through February 28, The objectives were to determine: 1. The accuracy of reported revenue. 2. Whether the park is in compliance with applicable laws, rules and internal procedures in the areas of cash collection and control and use of the Purchasing Card (P-Card). METHODOLOGY This audit was conducted under the authority of Section , Florida Statutes (F.S.) and was a component of the Office of Inspector General's annual audit plan. The audit was conducted according to the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors. This audit included tests of Park records and procedures for revenue accuracy, purchase card and overall compliance for the months of November 2008 and February 2010 as well as other select transactions in January 2010 for Purchasing Cards tests. We also conducted interviews of appropriate personnel as determined necessary under the circumstances. Specifically, our procedures included the following. Review of applicable Florida Statutes (FS), Florida Administrative Code (FAC), DEP Directives, the Operations Manual and DEP Purchasing Card Guidelines. A site visit to the Park on June 1-2, We met with the Park Manager and a Park Service Specialist and conducted an interview with the Park s Administrative Assistant who oversees cash collection and compliance for the Park. We obtained records and made observations of cash handling operations at the Park. A review and comparison of daily check-out sheets completed by operators at the end of each shift, weekly reports prepared by Park administrative employees and submitted to the Bureau of Finance & Accounting and monthly reports prepared by the Bureau of Finance & Accounting. A review of documentation for voids/refunds, Point of Sale (POS) totals and credit card charges. The reports were tested for accuracy and consistency. A review of Purchasing Card records. Page 1 of 9

4 RESULTS AT A GLANCE Revenue for was reported accurately with a margin of error of less than 1%. is in compliance with Purchasing Cards rules and procedures. is not fully in compliance in the area of cash collection and control. Improvement is needed in the areas of documenting daily cashbox overages and shortages, following proper procedures for documenting refunds and verifying change funds. We recommend that the Park ensure that staff is following the Park Operations Manual in regards to monitoring and documenting cash collection and controls. Details below. Page 2 of 9

5 BACKGROUND is an 11,500-acre park located just south of Stuart, Florida. It was named for a Quaker merchant whose vessel shipwrecked nearby in Prior to becoming a State Park in 1950, the area was known as Camp Murphy, a top-secret radar training school. Florida s first federally designated Wild and Scenic River, The Loxahatchee, runs through the park. Rangerguided boat tours, as well as canoe, kayak and motorboat rentals are available year-round. The Park offers two full-facility campgrounds, a youth/group primitive campground and a picnic area with a playground and pavilions available for renting. There are also bicycle, hiking and horse trails throughout the park and cabins available to rent. The Park also features the Elsa Kimbell Environmental Education and Research center which houses the Park s classrooms, research lab, visitor center and Park Office. Revenue is collected by the Park in one location, the Ranger Station at the front entrance gate. Revenue is derived from: Entrance Fees - $4.00 individual / $6.00 vehicle Camping Fees - $26.00/night Pavilion Rentals - $60.00-$100.00/day Annual Park Passes - $60.00 individual / $ family In addition to the revenue collected on site, like many other parks throughout the state, Jonathan Dickinson State Park uses Reserve America to process reservations and payments for campsite rentals. Additionally, a contracted concessionaire collects fees for cabin, canoe, kayak and motorboat rentals, as well as for guided boat tours. Park reported revenues of $264, for fiscal year and $171, as of February 28, 2010 for fiscal year , according to the Monthly Revenue reports provided by the Bureau of Finance and Accounting. Park Revenues RESULTS The following table outlines park revenues for the months tested. Month Revenue November 2008 $24, February 2010 $37, Total $61, Revenue for the sampled months totaled $61, which represented 14% of the parks total annual revenue ($435,733.70). Page 3 of 9

6 Accuracy During the sample period, daily and weekly reports were consistent with the monthly report total with a margin of error of less than 1%. The daily revenue reports were supported by daily credit card terminal totals, bank deposits and daily cash register totals. On the November 2008 Monthly Revenue Report, prepared by the Bureau of Finance & Accounting, an adjustment for $2, appeared to have been posted incorrectly (subtracted from total revenue, rather than added). We verified with the Bureau of Finance & Accounting that this was the case and received a printout of the corrected adjustment made in the following month, December Compliance: Over/Short Forms were not completed and submitted to the District 100% (18/18) of times when an operator was out of balance greater than 1% or $10 Refund documentation was missing required information 84% (61/73) of refund occurrences There was no evidence of the change fund being verified 29% (57/199) of shifts worked We noted five (5) occurrences of more than one operator functioning under one login Purchasing Card Review: The month of January 2010 and other select transactions within the population were judgmentally selected for audit testing to determine whether; Purchases made were within the cardholder s limits or if required, proper approval was obtained Purchases made were for eligible items and/or services Purchases were made, reviewed and reconciled by 3 different individuals Sales tax was paid on purchases Purchases were accompanied by appropriate documentation (i.e. Signed receipt, invoice, P-card form) Based on the tests listed above the Park is in compliance with applicable laws, rules and internal procedures regarding the use of Purchasing Cards. CONCLUSION Based on our review, the park reported revenues accurately with a margin of error of less than 1%. Weekly Revenue Reports were supported by Daily Checkout Sheets, cash register tapes, credit card terminal reports and bank deposits. In addition, the Park is in compliance with applicable laws, rules and internal procedures regarding the use of Purchasing Cards. Specifically: Purchases made were within the cardholder s limits Purchases made were for eligible items and/or services Purchases were made, reviewed and reconciled by 3 different individuals Sales tax was not paid on purchases Page 4 of 9

7 Purchases were accompanied by appropriate documentation (i.e. Signed receipt, invoice, P-card form) However, the Park is not fully in compliance with all applicable laws, rules and internal procedures in the areas of cash collection and control. Improvement is needed in the areas of properly documenting refunds and cashbox outages, as well as change fund verification and other operational tasks such as cash register operators logging in and out as required at shift changes. Our finding and recommendations are discussed in the remainder of this report. FINDING AND RECOMMENDATION Finding: is not in compliance with certain applicable internal procedures in the areas of cash collection and control. We found control weaknesses in the following areas: A. Following proper procedures for cashbox overages/shortages B. Properly documenting all refunds C. Verifying and documenting the Park change funds D. Properly logging in and out at shift changes Criteria According to the Operations Manual, Chapter 5, Section 6 Shift Changes, It is the responsibility of the employee going off-duty to complete the daily shift check-out sheet. The shift employee shall record the ending numbers for pre-numbered forms/documents, calculate the number of forms/documents which are sold/used during the shift, count and record the daily receipts and count the change fund. The evening shift employee will verify the day shift's daily check-out sheet, change fund and deposit, and initial the daily check-out sheet in addition to the signature of the day shift employee. If another employee is on duty along with the evening shift employee, they will verify all items listed above for the evening shift and co-sign the shift check-out sheet. Otherwise, this will be verified at the beginning of the next day's business and co-signed then. All overages or shortages, the greater of 1% or $10.00, occurring during a single shift, will be documented by means of a "Report of Revenue Overages/Shortages", FPS A-021, to be completed by the shift operator for which the discrepancy occurred, and verified by park management. It will be the responsibility of park management to be aware of, and investigate any inordinate number of overages or shortages occurring during an individual employee's shift, and take the necessary corrective action. A copy of this report will be forwarded to the appropriate District Office. Further, according to Chapter 5, Section 14 Refunds, All refunds must be documented with the required information and employee signature The required information is as follows: a) Original receipt (i.e., register tape or camper registration, etc.) b) Description of refund (i.e., day use or two nights primitive camping, etc.) Page 5 of 9

8 c) Reason for refund if obtained d) Total amount of refund e) Employee signature f) Visitor signature g) Date/Time requested Condition During the sampled months: Over/Short Forms were not completed and submitted to the District 100% (18/18) of times when an operator was out of balance greater than 1% or $10 Refund documentation missing required information 84% (61/73) of refund occurrences There was no documentation of the change fund being verified 29% (57/199) of shifts worked We found five (5) occurrences of more than one operator functioning under one login Possible Causes The lack of consistent documentation of overages/shortages may have occurred due to the Manager/Administrative Assistant being aware or researching the discrepancies, but not providing written documentation by completing the required form FPS A-021. Missing documentation on refunds may have been due to busy seasons/times of day at the Park causing the employee/customer to overlook the signature requirements or cancellations taken over the phone or no shows. Change fund verifications may be taking place, however not being documented sufficiently on Daily Checkout Sheets. Operators may not be logging in and out as required as a result of heavy traffic through the park during certain hours/seasons. Additionally, Park management s daily priority may not have been in the area of cash collection and control thereby leading to an inconsistent manner in which policies and procedures were followed. Effect Although it is acknowledged that this is a large park with heavy traffic and a large volume of transactions during peak periods, these internal control weaknesses could ultimately expose the Park to the risk of loss and/or theft. Recommendation: We recommend Park management ensure that staff members follow all applicable laws, rules and internal procedures in the areas of cash collection and control, including the Operations Manual. Specifically: Ensure that overage/shortage forms are completed and submitted to the District when discrepancies exceed established thresholds and address repetitive and/or material discrepancies appropriately. Refunds should be properly documented and include all required information, including signatures. If a signature cannot be obtained from a customer, this should be noted on the refund documentation along with an explanation. The change fund should be verified at every shift change and documented accordingly. Page 6 of 9

9 Staff members should operate cash registers under their individual login and be responsible for signing in and out properly at all shift changes. To promote accountability, integrity and efficiency in state government, the OIG completes audits and reviews of agency programs, activities, and functions. Our audit was conducted under the authority of section , F.S., and in accordance with the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors, and Principles and Standards for Offices of Inspector General, published by the Association of Inspectors General. The audit was conducted by Katie Parrish and supervised by Valerie Peacock. Please address inquiries regarding this report to the OIG s Audit Director by telephone at (850) Copies of final reports may be viewed and downloaded via the internet at Copies may also be obtained by telephone (850) , by fax (850) , in person or by mail at Department of Environmental Protection, Office of Inspector General, 3900 Commonwealth Boulevard, Mail Station #41, Tallahassee, FL Joseph Aita, Director of Auditing Douglas A. Darling, Inspector General Page 7 of 9

10 September 21, 2010 DIVISION RESPONSE TO: FROM: SUBJECT: Joseph Aita, Director of Audits Office of the Inspector General Donald Forgione, Director Division of Recreation & Parks Division Response to Audit of This memorandum will serve as the Division s response to the audit recommendations in Preliminary Audit Report Number A-0910DEP-121, during the period of July 1, 2008 through February 28, The audit noted the following finding and recommendations: Audit Finding: is not in compliance with certain applicable internal procedures in the areas of cash collection and control. We find control weaknesses in the following areas: A. Following proper procedures for cashbox overage/shortages B. Properly documenting all refunds C. Verifying and documenting the Park change funds D. Properly logging in and out at shift changes Audit Recommendation: We recommend Park management ensure that staff members follow all applicable laws, rules and internal procedures in the areas of cash collection and control, including the Division of Recreation and Parks Operations Manual. Specifically: >Ensure that overage/shortage forms are completed and submitted to the District when discrepancies exceed established thresholds and address repetitive and/or material discrepancies appropriately. >Refunds should be properly documented and include all required information, including signatures. If a signature cannot be obtained from a customer, this should be noted on the refund documentation along with an explanation. >The change fund should be verified at every shift change and documented according. >Staff members should operate cash registers under their individual login and be responsible for signing in and out properly at all shift changes. Page 8 of 9

11 Division Response: >Overage and Shortage forms will be completed on all discrepancies exceeding the division standard. If corrective action is taken to fix daily totals it will be documented on the Overage/Shortage Report. Follow-up conducted by administrative staff to ensure compliance and copy of discrepancies provided to person making the mistake with the supervisor copied for utilization in the annual performance evaluation. >Refund documentation will be completed and additional justification noted on the paperwork if customer signature, etc is missing. Follow-up will be conducted by administrative staff to ensure compliance and a copy of the discrepancies will be provided to the person making the mistake with the supervisor copied for utilization in the annual performance evaluation. A review of our Division refund procedures ensured they are more than adequate if all refunds are documented as stated in the procedures. >Change fund verification will be conducted at the beginning and end of shift and operator initials will be place on the daily worksheet reflecting verification. Follow-up conducted by the administrative staff to ensure compliance with a copy of discrepancies provided to the person making the mistake with the supervisor copied for utilization in the annual performance evaluation. The Park Manager has already initiated the steps noted above to ensure compliance with the audit recommendation points noted. The Division appreciates the thorough internal audit by the Office and the Inspector General and will utilize the audit recommendation to improve our internal control over revenue. DF/dh cc: Valerie Peacock Scott Robinson Steve Dana Paul Rice Kevin Jones Mark Nelson Robert Wilhelm Matt Mitchell Page 9 of 9