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SHERIFF’S OFFICE-
INMATE SERVICES -
Evaluation of Internal Controls
Over Cash and Checking Accounts
Presented to the
Deschutes County Audit Committee
by the
Internal Audit Program
David Givans, CPA – County Internal Auditor
Report# 2003-3 Dated March 31, 2003 (Issued June 10, 2003)
Deschutes Count y,
Oregon
Report#2003-3 (Dated March 31, 2003)
SHERIFF’S OFFICE-INMATE SERVICES -
Evaluation of Internal Controls
Over Cash and Checking Accounts
TABLE OF CONTENTS:
EXECUTIVE SUMMARY………………………………………………………………….1-3
INTRODUCTION & BACKGROUND……………………………………………………..3-4
OBJECTIVES, SCOPE, AND METHODS ………………………………………………...4-5
AUDIT RESULTS
General Findings ……..………………………………………………………………….5-8
Jail Inmate Trust ………..……………………………………….……………………...8-11
Work Center Inmate Trust .…………………………………………………………....11-14
Bail Trust ………………….……………………………………………………………....14
RESPONSE FROM MANAGEMENT ……………………………………….……………..14
Report# 2003-3 (Dated March 31, 2003) Page 1
EXECUTIVE SUMMARY
Purpose
As requested by Count y management and Sheriff (and as approved by Deschutes County’s
Audit Co mmittee), an evaluat ion was conducted of the internal controls for cash, checking
and other assets at the Sheriff’s Office. This report covers inmate services, which includes the
Jail and Work Center. The purpose of the noted findings is to assist management and staff in
improving its internal control system.
Results in brief
The evaluation indicated a positive control environment. Staff were very acco mmodating and
have already implemented some suggested changes.
These findings are provided to assist management in improving its internal control systems.
Audit findings result from incidents of non-co mpliance with stated procedures and/or
departures from prudent operation. The findings are, by nature, subject ive. The inspect ion
did not review a sufficient number of items to project the findings over the ent ire populat ion.
The fo llowing findings are presented for management’s considerat ion.
The findings and an excerpt of the associated recommendation for the Jail and Work Center
include:
GENERAL
· Lack of sufficient written accounting po licies and procedures
Staff should document in writing all accounting policies and procedures.
· Sheriff’s Office does not direct ly receive its bank statements
The Sheriff’s Office should arrange to directly receive the bank statements and
associated support documents on all checking accounts it manages.
· Emplo yee duties require addit ional segregat ion
A supervising employee who does not handle cash or have accounting duties, should
receive and review the bank statements and review the associated bank
reconciliations.
· Addit io nal safeguards needed over mailed-in mo nies
Two employees should open mail, log monies and create receipts for monies received.
· Negotiable instruments received are not immediately endorsed for deposit
Staff should restrictively endorse all negotiable instruments as received.
· Access and use o f signature stamp not controlled
Checks should not be stamped if signers are available. Access to the signature stamp
should be restricted to a custodian(s) who is responsible for its use.
· Account ing effort is duplicated
Management should evaluate the current accounting systems to determine if it can
provide an ongoing balance and bank reconciliation function.
· Check stock is not properly controlled
All check stock should be accounted for in logs.
Report# 2003-3 (Dated March 31, 2003) Page 2
JAIL – INMATE TRUST
· Trust checking account is not routinely reconciled to inmate trust balances
Jail office staff should routinely reconcile inmate trust balances to the balances in the
checking account. All non-inmate trust monies received (commissions, other income,
etc.) or any excess should be deposited with County Finance.
· Ex-inmates stole funds fro m inmate trust account
Management should consider utilizing “positive pay” bank services to provide
additional security to the inmate trust checking accounts.
· Receipt for inmate cash not witnessed (limited incidents noted)
Inmate cash received should be properly witnessed and the receipts filed with the bank
deposits or with the inmate files.
· Some inmates upon release did not receive their trust balance (limited incidents noted)
Unpaid balances should be investigated and the inmates paid their trust balances.
· Numerous outstanding checks should have been remitted to Oregon’s Unclaimed Property
Program
Staff should develop a system for submitting outstanding checks to the State in a timely
manner.
· Sheriff’s Office incurs indigent inmates’ costs
Management should review options for collecting on amounts owed by inmates for
supplies and medical costs.
WORK CENTER – INMATE TRUST
· County revenues retained in Work Center
Work Center office staff should routinely reconcile inmate trust balances to the
balances in the checking account. All non-inmate trust monies received (commissions,
other income, etc.) or any excess should be deposited with County Finance.
· County expenditure made fro m inmate trust account (limited incidents noted)
All non-inmate trust account expenditures (i.e. County expenditures) should be made
through the normal Count expenditure process at the Sheriff’s Office.
· The Work Center has insufficient authorit y to have cash on hand
The Work Center should request authorization for an imprest cash fund.
· Work center staff have access to accounting and supporting documents
Access to accounting records and support should be restricted to appropriate
personnel.
· Lockbox securit y is inadequate
It is recommended that a new or modified lockbox be mounted to protect the contents.
Access should be restricted to one employee with the responsibility of preparing the
deposits.
· Deposits are not made in a timely manner
Staff should make efforts to ensure timely deposits in accordance with County policy.
BAIL TRUST
· Jail staff do not collect sufficient informat ion for certain bail receipts
The Sheriff’s Office should work with the Court clerks to identify how to respond to
these requirements.
Report# 2003-3 (Dated March 31, 2003) Page 3
Response from management
Management concurs with the observed findings and associated recommendations.
Implementation is in process.
INTRODUCTION
Audit Authorit y:
The audit of inmate services at the Jail and Work Center was conducted pursuant to the
direct ion of Count y management and the Sheriff. The Deschutes County Audit Committee
authorized the audit by its approved of the County’s internal audit workplan for fiscal year
2002/2003.
Introduction:
This audit was init iated in response to the County’s desire to review the internal controls over
its cash handling. The Sheriff’s Office is the first department scheduled for this type of audit.
The reports for the Sheriff’s Office are expected to be the first in a series of reports covering
County depart ments and their handling of cash. This report also includes Sheriff’s Office
management responses to these recommendations.
County government is responsible for using public assets and public funds in a prudent and
responsible manner. County managers in turn are responsible for developing and maintaining
procedures to protect public assets and promote efficient and effect ive services. These
procedures and the environment promoted by management are called internal controls.
Management is ult imately responsible for implement ing appropriate internal control systems.
An effect ive system o f internal controls:
· Safeguards assets fro m waste, fraud and inefficient use
· Promotes accuracy and reliabilit y in the account ing records
· Encourages and measures co mpliance wit h established practices
· Evaluates the efficiency of operations
Effect ive internal controls minimize the potential for errors and/or irregularit ies to occur. If
they do occur, effect ive internal controls detect such errors and/or irregularit ies in a t imely
manner during the normal course of business. For cash processes, effect ive internal controls
include:
1. Segregation of cash handling from record keeping duties.
2. Centralizat ion of cash receiving and account ing for all receipts of cash and checks
utilizing pre-numbered invo ices.
3. Depositing cash on a timely basis.
4. Recording expenditures, in a timely manner, supported by original receipts and the
proper approval authorit y.
5. Preparation of monthly bank reconciliat ion by an emplo yee not responsible for issuing
checks or having custody of cash. Review o f such bank reconciliat ion by an
appropriate supervisor.
Report# 2003-3 (Dated March 31, 2003) Page 4
6. Document ing internal control procedures and conducting rando m reviews of deposit,
reconciliat ions, and other documentation to establish that procedures are being
fo llo wed.
7. Reviewing revenues and expenditures to budget and/or expectation for reasonableness.
8. Promoting an attitude and environment that perpetuates effect ive internal controls.
Honest emplo yees deserve to work in an organizat ion that implements an effect ive internal
control system. Effective controls can prove their innocence in the event errors and/or
irregularit ies do occur.
OBJECTIVES, SCOPE and METHODS
Audit objectives:
The object ives of the audit were:
1. To evaluate the Sheriff’s Office internal control and procedures for cash, checking
accounts and other assets.
2. To evaluate compliance wit h Federal and State regulat ions and requirements.
If exist ing procedures were not documented in writing, the interview process ident ified
procedures and practices.
Audit procedures addressed key internal control issues. Opportunit ies for increased efficiency
were identified. Suggestions for improving internal control included eliminat ing duplicated
accounting efforts and segregat ion of duties.
Scope:
This report focuses on inmate services provided at the Jail and Work Center. Procedures for
handling checking, cash or other assets were reviewed. Comprehensive written accounting
procedures were not available for all operations; therefore, specific co mpliance with written
procedures was not evaluated.
There are three checking accounts utilized in these operations. These were ident ified as
fo llo ws:
· Jail – inmate trust
· Work Center – inmate trust
· Bail trust
The Jail and Work Center do not have authorized change or petty cash mo nies so these were
not reviewed. A recommendat ion does address the need for an authorized imprest cash fund at
the Work Center.
Methods:
The audit involved gaining an understanding o f the control environment as described by
management and staff during interviews. Relevant evidence was obtained through
observat ions, interviews, and analysis. This evaluation is, by nature, subject ive.
Report# 2003-3 (Dated March 31, 2003) Page 5
Effect ive internal control provides reasonable assurance of achieving the fo llowing
object ives:
1. Effect iveness and efficiency of operations.
2. Reliabilit y of reporting information
3. Compliance with applicable laws and regulat ions.
Audit procedures included:
· Interviews with appropriate personnel
· Walk-throughs with actual transact ions to see how these systems were being
performed
· Review of similar audit reports performed by other jurisdict ions
· Review of industry standards where applicable
· Data extraction and analyses
Internal control consists of five interrelated components:
· Control environment
· Risk assessment
· Control activit ies
· Informat ion and co mmunicat ion, and
· Monitoring
The audit was conducted in accordance with Government Auditing Standards issued by the
Comptroller General of the United States.
AUDIT RESULTS
Emplo yees of the Sheriff’s Office take their duties seriously. The high securit y invo lved in
the Sheriff’s facilit ies results in a high level of safeguarding of assets.
Management and staff appear diligent in their efforts to develop an environment supporting
internal controls. Jail and Work Center staff were open and professio nal and had a positive
attitude towards making improvements in the internal control system.
These findings are intended to assist management in evaluat ing its systems of internal control.
These reco mmendat ions and findings do not replace efforts to design an effective system of
internal control. The audit, by its nature, cannot discover all possible weaknesses. As such,
management should be vigilant for other improvements that can be made.
Audit findings result from incidents of non-co mpliance with stated procedures and/or
departures from prudent operation. The findings are, by nature, subject ive. The purpose of
these findings is to ident ify procedural recommendations. The evaluation did not review a
sufficient number of items to project the findings over the ent ire populat ion.
Report# 2003-3 (Dated March 31, 2003) Page 6
The fo llowing findings are presented for management’s considerat ion.
GENERAL FINDINGS
Lack of sufficient written accounting policies and procedures
There were insufficient or nonexistent written account ing policies and procedures over areas
of operation.
Communicat ion is an essent ial co mponent of internal controls. Written policies and
procedures are particularly effect ive for controls over account ing and financial matters. A
well-designed and maintained set of policies and procedures enhances accountabilit y and
consistency. The result ing documentation is also useful for training and cross-training
personnel.
The lack o f comprehensive written accounting procedures can lead to inadequately planned
controls, inadequate supervisio n, poor and inadequate training, and lack of adherence to stated
control procedures.
Staff should document in writ ing all account ing policies and procedures. The procedures
should emphasize the areas of monitoring, supervision and segregat ion of duties. These
policies and procedures should be available to all emplo yees and should detail the
responsibilit ies of each emplo yee.
Sheriff’s Office does not directly receive its bank statements
County Finance current ly receives most bank statements on CD. The Sheriff’s Office needs
these bank statements to reconcile the informat ion in it s accounting systems.
Bank statements and associated cancelled checks are a useful resource in managing the
activit y within a checking account.
Inadequate control and reconciliat ion o f checking account activit y can potentially allow
misappropriat ions to go undetected.
The Sheriff’s Office should arrange to direct ly receive the bank statements and associated
support documents for all accounts it manages. These can be provided direct ly to the Captain
supervising the Jail and Work Center.
Employee duties require additional segregation
Staff are responsible for accepting monies, preparing deposits, accounting for transactions and
reconciling bank statements.
Personnel should not be entrusted with all facets of handling a transact ion: custody,
authorizat ion, accounting and oversight.
Lack of appropriate segregation and oversight can lead to theft.
Report# 2003-3 (Dated March 31, 2003) Page 7
It is advisable for a supervising emplo yee, who does not handle cash or have account ing
duties, to receive the bank statements. The bank statement should be reviewed for unusual
items and handed over to the office assistant for reconciliat ion. After the reconciliat ion is
completed, it should be returned to the supervisor for review (init ialed) and filed.
Additional safeguards needed over mailed-in monies
One emplo yee current ly opens all mail. Mail may include mo nies for inmates. Receipts are
not always prepared.
Inmate monies received in the mail should be counted by two emplo yees and issued a receipt.
Deposit slips prepared should be reconciled to bank deposits.
Inadequate controls over received money could lead to theft.
Two emplo yees should open mail, log monies and create receipts for monies received. Both
emplo yees should init ial the log and the total fro m the log should be reconciled to the
prepared bank deposit. Adequate receipts should be maintained. Receipts should be mailed
or given to the inmate for all mo nies received.
Negotiable instruments received are not immediately endorsed for deposit.
Negotiable instruments received are not restrict ively endorsed on receipt.
All negotiable instruments should be restrict ively endorsed to avoid their theft.
Delay in endorsement could lead to misappropriation.
Staff should restrict ively endorse all negotiable instruments as received. An appropriate
endorsement stamp should be available at each location.
Access and use of signature stamp not controlled
Signature stamps are used in the Jail and Work Center to issue checks and are accessible by
most staff. The stamp is often used even when a signer is available.
A signature stamp removes proper supervisio n and authorit y unless mit igated by other
controls.
Lack of proper supervisio n could lead to misappropriat ion.
Checks should not be stamped if signers are available. Access to the signature stamp should
be restricted to a custodian(s) who is responsible for its use. Signers should init ial o ff on the
supporting documents. Bail checks should always be physically signed since they are issued
weekly.
Report# 2003-3 (Dated March 31, 2003) Page 8
Accounting effort is duplicated
Staff enter informat ion into the internal account ing systems and into a workstation account ing
systems (Microsoft Money).
Account ing systems should have sufficient funct ionalit y to provide informat ion on account
balances and allow reconciliat ion to bank statements.
Duplicat ing account ing effort is inefficient.
Staff utilize the workstation account ing system to reconcile the checking account activit y
since this is not possible with the internal account ing system.
Management should evaluate the current accounting systems to determine if it can provide an
ongoing balance and bank reconciliat ion funct ion. If the cost of adding this funct ionalit y is
prohibit ive, an updated computerized account ing system might be an acceptable cho ice.
Check stock is not properly controlled
A log was not maintained for the check stock in use and in storage.
Check stock should be controlled and monitored. A check stock log monitors the use of
check stock and can identify any missing checks.
Inadequate controls over check stock can potentially allow misappropriat ions to go
undetected.
All check stock should be accounted for in logs. The logs should indicate the check numbers
for all stock on hand and by locat ion. The logs should further ident ify check numbers that
have been used or have been vo ided. All vo ided checks should be recorded in a separate log,
defaced and kept in a file. Subsequent discussio ns with personnel indicate they have
implemented check stock logs for all checking accounts.
JAIL – INMATE TRUST
The Jail has a checking account to hold monies in “trust” for the inmates. The purpose of the
checking account is to safeguard inmate monies during their stay. These monies include cash
in possessio n at the time of arrest or as deposited by friends or family.
Deposited monies allow inmates to purchase commissary items, pay fees, and pay for services
during their stay. Inmates without money are allo wed only certain services and items. Inmate
charges can result in negat ive trust account balances. These negat ive balances represent
amounts owed to the Sheriff’s Office. Monies co llected from return inmates may be used to
offset their prior negative balances. Collect ion efforts are minimal.
Report# 2003-3 (Dated March 31, 2003) Page 9
Trust checking account is not routinely reconciled to inmate trust balances
The Jail’s inmate trust account should only have monies related to inmates. At the time of
review, the trust accounting indicated posit ive inmate trust balances of $6,497. However, its
checking account balance amounted to $13,788.
County inco me should be deposited with Count y Finance. County mo nies should not be
commingled with mo nies held in trust for inmates.
Having Count y inco me deposited and retained in this account reduces management oversight.
Monies in excess of those required for the trust may be prone to misappropriation.
The excess of nearly $7,300 in the checking account resulted from co mmissary co mmissio ns
and fees for hygiene and legal supplies co llected into the trust account. The current trust
accounting system bills inmates for services. The Jail receives a commission on the services
provided to inmates by an independent provider. This commissio n accrues wit hin the trust
accounting system unt il it is paid out.
Jail o ffice staff should routinely reconcile inmate trust balances to the balances in the
checking account. All non-inmate trust monies received (commissio ns, other inco me, etc.)
and any excess should be deposited with Count y Finance.
Ex-inmates stole funds from inmate trust account
Jail management identified two circumstances 2002 where ex-inmates ut ilized informat ion
fro m their release check to steal funds. The total amounts wired out of the account were
$960.
The Jail’s monitoring and reconciliat ion o f these accounts was sufficient to timely detect these
charges.
The County’s bank took responsibilit y for the unauthorized charges and replaced the missing
funds.
Current ident it y theft schemes can allow unauthorized charges to a bank account. Current
procedures to reconcile bank act ivit y can quickly ident ify improper charges.
Management should consider utilizing “posit ive pay” bank services to provide addit ional
securit y to the inmate trust checking accounts. “Posit ive pay” is a service provided by banks
where informat ion is submitted to the bank to only allow specific checks to clear. The County
is currently implementing this wit h its major bank accounts. This might require some
improvements in the current Jail information systems. “Posit ive pay” will st ill not control this
specific t ype of theft.
Receipt for inmate cash not witnessed
The Jail safeguards the cash in possessio n of inmates upon arrest. A receipt for inmate cash
was observed without init ials fro m two emplo yees. In addit ion, these receipts are not being
retained.
Report# 2003-3 (Dated March 31, 2003) Page 10
It is the current department policy to have the receipt of inmate cash evidenced by two
emplo yees.
Wit hout witnessed counts of cash, monies could be exposed to theft.
Inmate cash received should be properly wit nessed and the receipts filed wit h the bank
deposits or with the inmate files. These receipts should be monitored for compliance.
Some inmates upon release did not receive their trust balance
Twent y-seven inmates were ident ified that had not been paid their trust account balances
since June 2000. The total unpaid balances amounted to only $203.
Inmate trust account balances should be paid at the time of release.
Failure to pay the inmate upon release can result in extra staff t ime to locate the inmate and
make appropriate payment.
The missed payments appear to be due to computer or printer problems at the time of release.
Unpaid balances should be invest igated and the inmates paid their trust balances. Staff should
periodically review accounts for released inmates with positive inmate trust balances. The Jail
has init iated a system in which the checkout of an inmate will not occur without the payment
of their trust balance. The Jail has also implemented a report to review these outstanding
balances.
Numerous outstanding checks should have been remitted to Oregon’s Unclaimed
Property Program
The inmate trust account has a significant number of outstanding checks. Checks amount ing
to $3,242 are outstanding and should be remitted to the State (outstanding as of June 30,
2000). Of those outstanding checks, only five checks were over $50 and amounted in total to
$514.
Unclaimed checks older than two years are required to be submitted to the state’s unclaimed
property program. Those checks outstanding as of June 30, 2000 should have been remitted
by November 1, 2002.
Unclaimed checks are the property of past inmates. Failing to properly submit these to the
state could result in penalt ies.
Staff should develop a system for submitt ing outstanding checks to the State in a timely
manner. This should be done at least annually in accordance with the State deadline.
Report# 2003-3 (Dated March 31, 2003) Page 11
Sheriff’s Office incurs indigent inmates’ costs
In reviewing approximately 28 months o f inmate trust activit y, negat ive trust account
balances were ident ified amount ing to $8,740 for past inmates and $1,178 for current inmates.
These balances were spread over approximately 2000 inmates.
Negative balances represent a cost to the Sheriff’s Office for providing basic services to
most ly indigent inmates. Most of this cost comes from hygiene and legal supplies that are
mandated.
The cost of indigent inmates to the jail operations is not being reviewed and monitored.
Negative inmate trust account balances result from mandated services provided to indigent
inmates that are never repaid.
Management should review options for collecting on amounts owed by inmates for supplies
and medical costs. Appropriate legal documents may need to be signed by the inmate to aid
in this co llect ion.
WORK CENTER – INMATE TRUST
The Work Center has a checking account to hold mo nies in “trust” for the inmates. The
purpose of the checking account is to safeguard inmate monies during their stay. These
mo nies include cash in possessio n at the time of arrest and as deposited by friends or family.
Monies deposited allow inmates to purchase co mmissary items, pay fees, and pay for services
(laundry, vending, etc.) during their stay. Inmates are allowed to have a modest amount of
cash ($40) on their person when at the Work Center. Inmates without money are allowed
only certain services and items. Inmate charges can result in negat ive trust account balances.
These negat ive balances represent amounts owed to the Sheriff’s Office. Monies collected
fro m return inmates may be used to offset their prior negative balances. Collect ion efforts are
minimal.
The Work Center is a minimum-securit y facilit y separate from the jail. Sentenced inmates
meet ing certain criteria are transferred fro m the Jail to the Work Center and can part icipate in
the work release and/or treatment program. Work release participants pay $20 per day to
work away from the Work Center. Inmates not in the work release program part icipate in
work crews. Inmates are housed at the facilit y when they are not working.
County revenues retained at Work Center
The Work Center’s inmate trust account should only have monies related to inmates. At the
time of review, the trust accounting indicated positive inmate trust balances of $1,046.
However, the monies held in the checking account, cash register and safe were more than
$3,200 (of that total, approximately $1,200 was in cash).
County inco me should be deposited with Count y Finance. County mo nies should not be
commingled with mo nies held in trust for inmates.
Report# 2003-3 (Dated March 31, 2003) Page 12
Having Count y inco me deposited and retained in this account reduces management oversight.
Monies in excess of those required for the trust are prone to misappropriat ion.
The excess of approximately $2,100 resulted from commissio ns on vendor agreements and
recycling deposits.
Work Center office staff should routinely reconcile inmate trust balances to the balances in
the checking account. All non-inmate trust monies received (commissio ns, other inco me,
etc.) or any excess should be deposited with County Finance. Checks or cash directed to an
inmate’s trust account balance should be the only deposits made to the inmate trust account.
County expenditure made from inmate trust account
A disbursement fro m the trust was identified for a newspaper subscript ion. The disbursement
is not attributable to a specific inmate and, therefore, should not be disbursed from trust funds.
Non-inmate trust expenditures should go through the normal Count y expenditure process for
oversight and control.
Non-inmate expenses paid through the trust account could receive inadequate authorizat ion
and control. This kind of expenditure could potentially use monies that are rightfully the
inmates’.
All non-inmate trust account expenditures (i.e. Count y expenditures) should be made through
the normal Count y expenditure process at the Sheriff’s Office.
The Work Center has insufficient authority to have cash on hand
In order to have cash available for Work Center inmates, a cash register and safe are used to
ho ld inmate trust monies. The Work Center does not have authorit y to have a petty cash or
change fund. In addit ion, there are too many people with current access to the register and
safe.
Petty cash and change funds require specific procedures for their supervisio n. Amounts
retained for those purposes should represent an amount necessary to cover routine needs.
County po licy (P-011-98) requires authorization for a petty cash fund fro m the Board of
County Co mmissio ners.
Too much cash can lead to problems in safeguarding those assets.
The Work Center should request authorizat ion for an imprest cash fund. The fund would only
be used to access inmate trust monies (and not to be used to make Count y expenditures). The
fund would be reimbursed through inmate trust funds after sufficient documentation is
provided. As monies are disbursed fro m the imprest cash fund, they should be evidenced by a
receipt fro m the trust accounting system wit h the init ials of the inmate. A report summarizing
the cash disbursed to inmates can be provided by the account ing system.
Report# 2003-3 (Dated March 31, 2003) Page 13
It is reco mmended the Work Center discontinue holding excess cash in the safe. Access to
the safe is not properly limited and funds are not accessed frequent ly.
Access to the cash register should be limited to specific custodians and be used to hold only
imprest cash mo nies. Only one person should act as the imprest cash fund custodian at a time
and be charged with possessio n of the keys to the register. The amount of the register’s cash
and receipts at any t ime should equal the authorized imprest cash fund amount. The
authorized imprest fund amount should be verified at the beginning and end of each
custodian’s shift.
Work Center staff have access to accounting and supporting documents
Virtually all staff have access to the accounting support and the software used at the Work
Center. In addit ion, the office assistant has sufficient control to edit and remove entries.
Account ing systems and support should be properly secured. Access and authorit ies in the
Work Center accounting systems should be set to provide for proper supervision o f activit y.
Lack of appropriate oversight can lead to improper adjust ment of records that may cover the
trail o f a theft.
Access to accounting records and support should be restricted to appropriate personnel.
Similarly, the Work Center software programs should have appropriate authorizat ion levels to
restrict changes. Adjust ments to entries should require approval by supervisory personnel
after review of adequate support and documentation.
Lockbox security is inadequate
Most personnel in the Work Center have access to the lockbox. In addit ion, the design and
installat ion of the lockbox is not sufficient to protect the contents.
Receipts should be sufficient ly safeguarded unt il deposited.
Inadequate safeguards can lead to theft.
It is reco mmended that a new or modified lockbox be mounted to protect the contents.
Access should be restricted to one emplo yee wit h the responsibilit y o f preparing the deposits.
Deposits are not made in a timely manner
An analysis o f deposits indicated occurrences in which the time between receipt and deposit
was over a week.
Timely deposits reduce the opportunit y for problems to occur with accounting or with cash
securit y. County policy (P-199-075) requires deposits to be made within 24 hours.
Failure to deposit monies in a timely manner can result in misappropriat ion.
Report# 2003-3 (Dated March 31, 2003) Page 14
Staff should make efforts to ensure timely deposits in accordance with Count y policy.
BAIL TRUST
The Jail has a separate checking account to deposit bail mo nies. The bail mo nies are then paid
out to the applicable court on a weekly basis. Most bail mo nies for County inmates are
transacted at the Jail facilit y. The bail account represents a trust account handled on behalf o f
the various courts in the state. It is not a responsibilit y o f the Sheriff but an acco mmodation
for the various courts. The Sheriff does not receive a fee for this service.
Jail staff do not collect sufficient information for certain bail receipts
Most bail mo nies received are in cash. The Jail, occasio nally, receives large sums of cash for
bail. Addit ional informat ion reporting requirements exist for certain bail mo nies received in
cash.
The IRS and US Attorney should be notified if cash bail in excess of $10,000 is received.
This is a responsibilit y of the Court clerk. As agents for the clerk, the Sheriff’s Office is
responsible for obtaining information the clerk needs for reporting purposes. Additional
informat ion should be gathered fro m the bail payor for reportable transact ions. Addit io nal
informat ion would include the bail payor’s address, occupation, social securit y number, date
of birth, and type of ident ification used. Information returns are to be made within 15 days o f
receipt and are to be made by the applicable court clerk.
Failure to report required information could lead to Federal penalt ies.
The Sheriff’s Office should work with the Court clerks to ident ify how to respond to these
requirements. Since this is a responsibilit y o f the courts, if the Sheriff’s Office accepts
qualifying bail mo nies, it will need to gather relevant information for this reporting.
Accordingly, appropriate staff training will need to occur on these reporting standards and
forms improved to collect the informat ion. The Sheriff’s Office should also consider
appropriate charges for services it provides.
RESPONSE FROM MANAGEMENT
See comments provided at end of report provided by the Sheriff’s Office