HomeMy WebLinkAbout1819-8 Road Follow-up-Cash Handling report (7-2019)Follow-up Road Department – Cash Handling #18/19-8 July 2019
Follow-up Report
Road Department – Cash Handling
To request this information in an alternate format, please call (541) 330-4674 or send email to David.Givans@Deschutes.org
Deschutes County,
Oregon
David Givans, CPA, CIA
County Internal Auditor
1300 NW Wall St
Bend, OR 97703
Audit committee:
Daryl Parrish, Chair - Public member
Tom Linhares - Public member
Scott Reich - Public member
Stan Turel – Public member
Patti Adair, County Commissioner
Nancy Blankenship, County Clerk
James Lewis, Property Manager
Follow-up Road Department – Cash Handling #18/19-8 July 2019
TABLE OF
CONTENTS:
HIGHLIGHTS
1. INTRODUCTION
1.1. Background on Audit …………..……………………………………………………………. 1
1.2. Objectives and Scope ……………….………………………………….…………………… 1
1.3. Methodology …………………………………….………………………………………….…… 1
2. FOLLOW-UP RESULTS …………………….………..…………………………………………… 2
APPENDIX I – Updated workplan (status as of July 2019) ................................. 3-5
Follow-up Road Department – Cash Handling #18/19-8 July 2019
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1.
Introduction
1.1 BACKGROUND ON AUDIT
Audit Authority:
The Deschutes County Audit Committee has suggested that follow-ups occur within nine months of the
reports. The Audit Committee’s would like to make sure departments satisfactorily address
recommendations.
1.2 OBJECTIVES and SCOPE
“Audit
objectives” define
the goals of the
audit.
Objectives:
The objective was to follow-up on recommendations.
Scope:
The follow-up included six (6) recommendations from the internal audit report on Road Department –
Cash Handling (#18/19-6, issued in March 2019). The original internal audit report should be referenced
for the full text of recommendations and associated discussion. The follow-up reflects the status as of
July 2019. This follow-up was done in advance of the nine months since the department had completed
all of the recommendations.
1.3 METHODOLOGY
The follow-up report was developed from information provided by the Road Department. In cases
where recommendations have not been implemented, comments were sought for the reasons why and
the timing for addressing these. The follow-ups are, by nature, subjective. In determining the status of
recommendations that were followed up, we relied on assertions provided by those involved and did not
attempt to independently verify those assertions.
The updates received are included in Appendix I.
Since no substantive audit work was performed, Government Auditing Standards issued by the
Comptroller General of the United States were not followed.
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2. Follow-up Results
Figure I -
How were
recommendations
implemented?
The follow-up included six (6) recommendations agreed to by the Road Department. The Road
Department agreed with all of the recommendations. Figure I provides an overview of the
implementation status of the recommendations. The details of the updated workplan are provided in
Appendix I. With this follow-up, one hundred percent (100%) of the recommendations have been
completed.
The Road Department should be congratulated on having so quickly addressed the outstanding
recommendations.
A detailed listing of all of the recommendations followed up on and their status is included at the end of
the report in Appendix I. In interpreting the status, the County Internal Auditor may sometimes raise or
lower the status provided by the department based on the communication(s) received from the
department.
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APPENDIX Appendix I – Updated workplan for Reports #18/19-6 (status as of July 2019)
Rec
# Recommendations Completed Underway Planned Estimated
or Actual
Date of
Completion Updated Follow-up comments
1 It is recommended change monies be used
as when opening a cash register with a
specified custodian; monies counted out at
the beginning of the day; and monies
recounted at the closing of the day.
X Apr-19 Cash box has been switched out to a locking
cash box, monies will be counted each day that
the cash box is used. Cash box is not opened
every day, will be reconciled when pulled to use,
and reconciled at end of work day before placed
back into vault.
2 It is recommended the department have a
locking change box with a specified
custodian.
X Apr-19 Locking cash box and locking box for checks
received for deposit will be in place for cash
handling.
3 It is recommended for the safekeeping of
prepared deposits that they be placed in a
tamperproof bag overnight or if they will be
handled by another person.
X Apr-19 Initiated using a reusable locking cash bag.
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Rec
# Recommendations Completed Underway Planned Estimated
or Actual
Date of
Completion Updated Follow-up comments
4 It is recommended the Road department
deposit the recording fees for the Clerk’s
Office and then communicate the transfer
of funds for the associated service using the
Clerk’s Office provided transfer form.
X Apr-19 Department will receive check, prepare a receipt
for cash and deposit funds with the
department’s daily deposit. Funds will be
transferred to the Clerk’s Office through a
transfer form provided by Clerk’s Office.
We have received the Inter Fund Transfer form.
We rarely receive monies on behalf of Clerk's
office. We are prepared to process check
through MUNIS financial system and deposit,
then transfer monies - no checks for Clerk's
office are on hand at this time.
5 It is recommended for the Road
Department’s written procedures to be
updated to reflect the current procedures
and necessary controls. In addition, these
procedures should include necessary
safeguards over billed customers.
X Apr-19 Updated the Cash Handling policy from 2007.
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Rec
# Recommendations Completed Underway Planned Estimated
or Actual
Date of
Completion Updated Follow-up comments
6 It is recommended for the department and
County Finance to close-out the Road
Department checking account.
X Apr-19 The checking account closed, on April 4, 2019, all
blank unused checks/deposit forms were
destroyed and witnessed. Notification sent to
Finance that all steps completed to close this
account.
{End of Report}