The change fund custodians listed on the Petty Cash Report are not the same as the employees currently using the change funds.



Similar documents
A REPORT TO THE CITIZENS OF SALT LAKE COUNTY. BEN McADAMS, MAYOR. An Audit of the Key Controls of. Fleet Management.

A REPORT TO THE CITIZENS OF SALT LAKE COUNTY. BEN McADAMS, MAYOR. An Audit of the Key Controls of. Salt Lake County Fitness Center.

Internal Control Guidelines

The policy and procedural guidelines contained in this handbook are designed to:

POLICY & PROCEDURE DOCUMENT NUMBER: DIVISION: Finance & Administration. TITLE: Cash Operations Policy and Procedures. DATE: July 15, 2011


COUNTY OF TRINITY CASH HANDLING PROCEDURES

Walton County Clerk of the Court s Office Fixed Asset Review. Martha Ingle Clerk of the Courts

The Practice of Internal Controls

House of Assembly. Inventory Management Policy

Cash Handling Questionnaire

February Dear President Lynch-Bailey and Members of the Board of Trustees:

Internal Controls and Political Committees

INTERNAL CONTROL QUESTIONNAIRE OFFICE OF INTERNAL AUDIT UNIVERSITY OF THE VIRGIN ISLANDS

Woodward County Emergency Medical Service District

Chapter 7 Internal Control, Managing Cash, and Making Ethical Judgments 503

4-H H Club Treasurer s Record Book

1. Storeroom supplies -- For items stocked in the Palmer storeroom, use the Requisition for Supplies Form.

SEMINOLE COUNTY DEPARTMENT OF PUBLIC SAFETY FIRE/RESCUE DIVISION EMERGENCY MEDICAL SERVICES BILLING AND COLLECTIONS AUDIT MAY 1999

1.0 PURPOSE AND SCOPE RESPONSIBILITIES DEFINITIONS PROCEDURE REFERENCES APPROVALS...

Fraud Awareness and Prevention Program Report

Checks and Balances Internal Controls. West Virginia State Auditor s Office Chief Inspector Division

This policy applies to all employees who hold or use petty cash funds, including the security, disbursement, reimbursement and use of these funds.

UW-EXTENSION BUSINESS SERVICES POLICY AND PROCEDURE DOCUMENT (BSPPD) #18 CAPITAL EQUIPMENT

TOWN OF CARLYLE POLICY MANUAL

ASSOCIATED STUDENTS, INCORPORATED CALIFORNIA STATE UNIVERSITY, LONG BEACH DATE REVISED: 04/10/2013

PURCHASING CARD POLICY AND PROCEDURES

Performance Audit. Non-Real Estate Capital Asset Management. Durham County Internal Audit Department

Department of Human Services Client Trust Fund 7290 Trust Accounting System Procedures

FINANCE COMMITTEE PROCEDURES. Audit Process. Cash Handling

WESTERN NEVADA COLLEGE GRANTS AND CONTRACTS Internal Audit Report July 1, 2010 through September 30, 2011

Boiling Spring Lakes ABC Board Performance Audit Report

Cash, Petty Cash, Change Funds, and Credit Cards

Nassau County Office of the Comptroller

Management and Set up for Cash and Credit Card Handling Procedures

BANK ACCOUNTS SUPPLEMENTAL INFORMATION School District of Okaloosa County. I. General Provisions

ADMINISTRATIVE PRACTICE LETTER

Asset Management Training. Revised

Consider Becoming an Illinois Reading Council Officer!

AUDIT REPORT PERFORMANCE AUDIT OF COMPUTER EQUIPMENT INVENTORY DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET. February 2014

Burleson Independent School District

125 Park Avenue, Third Floor (212) (800) New York, NY (212) (fax) Agency. Contact.

Association of Self-Insured Employers of Queensland Inc

A U D I T R E P O R T. Audit of Child Support Contract CD336

1.0 PURPOSE AND SCOPE... 2

LEVEL SECTION NUMBER DATE 1 FIN SUBJECT: Equipment Receipt, Control, Inventory, and Disposal

Petty Cash Procedure No.: 2007 PR1

Fl ori d a Departm e nt of E d ucati on Office of Early Learning. Program Guidance Tangible Personal Property

OFFICE OF THE STATE COMPTROLLER

UCLA Policy 360: Internal Control Guidelines for Campus Departments

5:31-7 Appendix B LOCAL AUTHORITIES - ACCOUNTING AND AUDITING IF ANY ARE NOT APPLICABLE, INSERT N/A AS YOUR ANSWER. FIRE DISTRICT YEAR UNDER AUDIT

c. Name of Accounts. All accounts of the Association, shall be in the Association s name.

Arizona State Real Estate Department

THE SCHOOL DISTRICT OF CHESTER COUNTY 109 HINTON STREET CHESTER, SOUTH CAROLINA 29706

February 14, Dear Mr. John Renner and Members of the Board of Fire Commissioners:

ORDER AMENDING ACCOUNTING SYSTEM RULES FOR CIRCUIT COURTS

To the Rector, Wardens and Vestry of (Church Name; Church Address; City and Zip)

2. Is the mail log prepared by someone who does not participate in any other aspects of the revenue receipts process?

SUMMARY OF CORRECTIVE ACTION FOR SEGREGATION OF DUTIES AUDIT ISSUES

DEKALB COUNTY, GEORGIA

UGA Cooperative Extension Service Credit Card Machine Policy

Follow-up Audit Vital Registry and Health Statistics Program

October 21, Ms. Joan A. Cusack Chairwoman NYS Crime Victims Board 845 Central Avenue, Room 107 Albany, New York

Collections, Contributions, and Accounts Receivable Policies

MANAGEMENT AUDIT REPORT ACCOUNTS PAYABLE

Internal Control Guide & Resources

Office of the Chief Internal Auditor. Audit Report. Lap Top Inventory Audit

COUNTY AND DISTRICT INITIATIVE & REFERENDUM PETITIONS

Internal Audit. Audit of the Inventory Control Framework

CORPORATE CREDIT CARD POLICY & PROCEDURE. To regulate the use of Shire of Dowerin Council Credit Cards held by Council employees.

SKAGIT COUNTY CASH COLLECTION POLICIES

CASH: PETTY CASH DISBURSEMENTS C ACCOUNTING MANUAL Page 1 CASH: PETTY CASH DISBURSEMENTS. Contents. II. Establishment of Petty Cash Funds 2

ULSTER COUNTY COMPTROLLER S OFFICE Elliott Auerbach, Comptroller

Research Subject Incentive Payment Procedures. University Financial Services. Business Requirements. 1. Stakeholders & Business Units

State of New York Office of the State Comptroller Division of Management Audit and State Financial Services

STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 110 STATE STREET ALBANY, NEW YORK February 25, 2011

Pitt County Schools Individual School Accounting. Internal Controls and Responsibilities Fiscal Year

Within the context of this policy, the following definitions apply: A. Fixed Assets A resource that meets all the following criteria:

Federal Standards for Inventory Management Systems

Summary of Significant Revisions to the Accounting Procedures Manual For the Public Schools in the State of West Virginia

CASH HANDLING & DEPOSIT GUIDE TEXAS STATE UNIVERSITY STUDENT BUSINESS SERVICES

Fees, Grants, Revenue Contracts - Department Responsibility for Cost Recovery B-29 1 of 6

The Commonwealth of Massachusetts

Oklahoma Workers Compensation Commission

Prince Hall Grand Chapter, Order of the Eastern Star, Rite of Adoption, Hawaii and its Jurisdictions Inc. Basic Audit Procedures for All Chapters

Municipal Court Audit Report

TOPIC NO TOPIC PETTY CASH December 2008 Table of Contents

Southeastern Louisiana University University of Louisiana System

Steve March Multnomah County Auditor

ACCOUNTING POLICY AND PROCEDURE MANUAL

U.S. Administration - Effective Control of Property at University

MODEL FINANCIAL POLICY FOR SCHOOL SUPPORT ORGANIZATIONS (PROCEDURES MANUAL)

7.50 PURCHASING POLICY ON ITEMS UNDER $10, PURCHASING POLICY ON ITEMS OF $10,000 OR MORE 7.60 USE OF PHYSICAL FACILITIES BY OUTSIDE GROUPS

MANAGER, CAPITAL DISTRICT

PALM BAY EDUCATION GROUP, INC. AND SCHOOLS

DATE ISSUED: 12/23/ of 5 LDU CI1(REGULATION)-X

Control Matters. Computer Auditing. (Relevant to ATE Paper 8 Auditing) David Chow, FCCA, FCPA, CPA (Practising)

Citywide Social Media Usage Follow-up Report

MEMORANDUM INTERNAL CONTROL REQUIREMENTS FOR NON-PROFITS

Implementation Date: Revised: 4/2005 TABLE OF CONTENTS INTRODUCTION 2 ESTABLISHING CASH COLLECTION DEPARTMENT APPROVAL 3

Transcription:

Salt Lake County Auditor s Office Craig B. Sorensen, AUDITOR David L. Beck Chief Deputy Sherrie Swensen Salt Lake County Clerk 2001 South State Street #S2200 Salt Lake City, Utah 84190 Dear Sherrie, Salt Lake County Government Center 2001 S. State Street Suite N2200 Salt Lake City Utah 84190-1100 Tel (801) 468-3381 Fax (801-468-3296 The Audit Division recently completed a review of fixed and controlled assets and of cash collection, receipting, and depositing functions in the Clerk s Office. Additionally, we examined the office s petty cash and change funds. Many of the recommendations in our previous audit have been implemented and we noted an overall improvement in cash handling activities. We found internal controls to be generally adequate. However, during our review we noted some cash handling procedures which could be improved. In addition, some improvements regarding fixed and controlled assets are needed. We found that: The change fund custodians listed on the Petty Cash Report are not the same as the employees currently using the change funds. Voided transactions and refunds in the Elections Division are not handled properly. There is not a current employee inventory list of controlled assets for each employee. There is not a current organization list of controlled assets. Regular annual inventories of fixed and controlled assets are not performed. Some fixed assets are not tagged with County fixed asset tags. Fixed asset tags for nontaggable items are not kept in a card file.

Page 2 The change fund custodians listed on the Petty Cash Report are not the same as the employees currently using the change funds. The Clerk s Office has four separate change funds listed on the Petty Cash Report. The custodians listed on three of the funds do not reflect the current person using that fund. The current change fund custodians are to be listed with the Auditor s Office. MPF Form 2, Request for Change, should be completed and sent to the Auditor s Office when there are custodian changes. We recommend that the Clerk s Office complete a change request form to update the change fund custodians. Voided transactions and refunds in the Elections Division are not handled properly. The handling of voided transactions could be improved in the Elections Division. Voided receipts are not always signed by the person reviewing the void. Without a signature, we cannot be sure if someone is reviewing and approving voids. Countywide Policy #1062, Management of Public Funds, requires that the voided receipt be signed by a supervisor or designee not involved in the transaction. In addition, refunds to customers were not signed by the person receiving the refund. RECOMMENDATIONS: 1. We recommend that voided transactions be signed by a supervisor or designee not involved in the transactions. 2. We recommend that a signature from the person receiving the refund be included with the refund documentation. There is not a current employee inventory list of controlled assets for each employee or a current organization list of controlled assets. The Clerk s Office has not completed the controlled asset inventory forms as described in Countywide Policy #1125, Safeguarding Property/Assets. Specifically, there is not an employee inventory form for each employee as required by Policy #1125. We reviewed the office employee files and found in some employees files a list of durable items which were assigned to them. However, the lists were not current (they were dated January 20, 1995). Furthermore, the lists contained not only controlled assets but supplies and small items of equipment costing less than $100 as well.

Page 3 The advantage of using the Controlled Asset Inventory Form-Employee is that it fixes accountability for equipment by requiring employees to sign the form indicating their acceptance of responsibility for the items they have been assigned. In addition to the employee inventory form, there is not a current organization inventory form of controlled assets for property not readily assignable to an individual employee. The Clerk s Office has an outdated list of items (prepared in 1997) which are items not on fixed asset list. However, there are items on the list which have been surplussed. Additionally, items which have been purchased and are currently in use in the office are not on the list. According to Countywide Policy #1125, The Property Manager shall maintain records to manage controlled assets using the following forms and procedures: Controlled Assets Inventory Form-Employee and Controlled Assets Inventory Form-Organization. Controlled asset forms are to be utilized on a decentralized basis by the organization; they will not be maintained centrally by the Auditor as is done under the fixed asset system. These forms are maintained by, or under the supervision of the Property Manager, and should be available for review or audit by the Auditor s Office upon request. The controlled assets lists should be dynamic documents. They should be continually updated as new items are purchased or items are surplussed. The lists are a management tool. Having the lists will not prevent theft, but will help management discover the occurrence of theft or missing items. Procedures and controls should be in place in the Clerk s Office to keep the inventory lists of controlled assets current. The Clerk s Office has recently designated a new property manager. The property manager did not have a copy of the policy and was not aware of the forms which are to be used for controlled assets. RECOMMENDATIONS: 1. We recommend that the Clerk s Office property manager ensure the timely updating of the controlled assets list. 2. We recommend the Clerk s Office use the forms shown as Exhibits 3 and 4 of Countywide Policy #1125 for their records of controlled assets. Regular annual inventories of fixed and controlled assets are not performed. The Auditor s Office Fixed Asset Group performed a cleanup inventory of fixed assets in the Clerk s Office

Page 4 in April 1995. The Clerk s Office did not complete another inventory of fixed assets until January 1999. According to Countywide Policy #1125, physical inventories of fixed and controlled assets are to be conducted at least annually. After each annual inventory is complete, a form should be submitted to the Auditor s Office confirming the accuracy and completeness of the listing of fixed assets (the 0801 Report). When annual inventories are not conducted, there is no way to determine if all assets are properly managed and protected. We recommend that the Clerk s Office conduct a physical inventory of fixed and controlled assets at least annually. Some fixed assets are not tagged with County asset tags. When an organization purchases fixed assets, the Auditor s Office sends fixed asset tags for the new assets. The organization is expected to follow the established tagging procedures and promptly tag the fixed assets upon receipt of the tags. The Clerk s Office purchased four card readers in September 1999. The card readers are listed on the Fixed Asset Inventory By Organization (0801 Report), but the County property tags have not been affixed to the items. When tagging procedures are not properly completed, there is no accountability for the items and they may be at risk of being lost or stolen. We recommend that the Clerk s Office follow appropriate procedures for tagging of property items which are fixed assets, and that all fixed assets purchased by the Clerk s Office be properly tagged. Fixed asset tags for nontaggable items are not kept in a card file. The Clerk s Office has several software items listed on their fixed assets inventory report. Because it is difficult to affix the fixed asset tag to software, the tags have been misplaced. The property manager should set up a card file in consultation with the Fixed Assets Group of the Auditor s Office for assets which are not taggable. Another item on the fixed asset list which does not lend itself to the usual tagging procedure is the vote recorder. The vote recorders are listed on the fixed asset list as one item costing $370,466. Actually, there are approximately 3,000 vote recorders which are separate units. They are used during elections for voters to punch their ballot cards. Because it would be arduous to tag each item, the fixed asset tag for the vote recorders should also be kept in the card file.

Page 5 We recommend that a card file be established and controlled by the property manager. Fixed asset tags which cannot be reasonably attached to an item should be stored in the card file and be available for review by the Auditor s Office upon request. We appreciate the cooperation we received at the Clerk s Office and the efforts of you and your staff to implement our audit recommendations. We hope our work will be of benefit to you. If you have any questions, please contact me. Sincerely, David L. Beck Chief Deputy