Internal Controls for the Treasury Office

Transcription

1 8:30 10:10am May 9, 2018 Room th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Ed Hankins, MBA, CPA, CMA Director, Treasury Office, Regional Municipality of York Andrew Durket Treasurer, St. Louis County Anne P. Harty, CPA Chief Financial Officer, City of Rock Hill Internal Controls for the Treasury Office #GFOA2018

2 Introductions Topic Speakers Highlighting Internal Controls Specifically for Treasury Operations Providing Overview and Specific Information Related to Internal Controls and Treasury Office Presenting multi-faceted reasons for Internal Controls Take-aways: Inspire you to review and update your policies and procedures or develop new ones! Andrew Durket, CTP, Treasurer, St. Louis County, MO Anne Harty, Chief Financial Officer, City of Rock Hill, SC 2

3 WHY THIS IS SO IMPORTANT Ex-Buncombe manager, son indicted: Embezzlement, wire fraud among charges (Citizentimes.com; April 5, 2018) With Beaufort schools audit coming up, another SC school employee admits to kickbacks (islandpacket.com; January 16, 2018) Last of 4 indicted in $2.3M Wake County Register of Deeds embezzlement case turns self in (cbs17.com; December 14, 2017) Dixon, Illinois Embezzlement Case Yields Lessons for Municipal Administrators (Infraguardmagazine.com; July 30, 2015) 17-Year Term for Official in Tax Scam (NYTimes.com; June 30, 2009) 3

4 General Topics: Internal Controls Importance of Policies and Procedures Importance of Employee Education Deterring Bad Behavior Internal External Phishing Vendor information manipulation Straight up Fraud Rating Agencies and Financial Policies 4

5 General Topics: Internal Controls Segregation of Duties Actions established through policies and procedures that help ensure that management s directives to mitigate risks to the achievement are carried out Identify and document your business processes Identify areas of weakness Segregate those duties, or identify alternative checks and balances 5

6 Internal Controls: Receivables Accepting Receivables Treasury Office Off Campus Sites Kiosks Web Site 6

7 Internal Controls: Receivables Types of Receivables Currency Checks Payment Cards ACH Payments Other 7

8 Case Study: St. Louis County Cash Acceptance From US Treasury s Website on Legal Tender Status: There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. Here in Missouri: Silver a legal tender. The silver coins of the United States are hereby declared a legal tender, at their par value, fixed by the laws of the United States, and shall be receivable in payment of all debts, public or private, hereafter contracted in the state of Missouri; provided, however, that no person shall have the right to pay, upon any one debt, dimes and half dimes to an amount exceeding ten dollars, or of twenty and twenty-five cent 8 pieces exceeding twenty dollars.

9 Case Study: St. Louis County Counterfeit Currency Bank Suggested Procedures Vs Police Suggested Procedures Anything that is passed as posing for currency, that is not currency, constitutes a crime. 9

10 Internal Controls: Payables Cash/Petty Cash Checks Using Technology Electronic Payments Purchasing Cards Approval Limits and Process Other 10

11 Treasury and Other Offices The importance of Relationships & Communication With Management Between Accounting and Other Departments With External Auditors With IT 11

12 Ensuring Internal Controls Work Management support and commitment Adoption of policies and procedures Clearly communicate responsibilities Monitoring List of duties for each person Organizational Flow Chart Test your controls Hold employees accountable 12

13 112 th Annual Conference May 6-9, 2018 St. Louis, Missouri Speaker Contact Information: Ed Hankins Andrew Durket Anne P. Harty Questions: Speakers will take questions and comments. This session is being recorded, please utilize the microphone in the aisle to ask all questions. Provide Feedback: Please take a few minutes to provide your feedback at Discuss/Comment: Join the discussion at #GFOA2018 Contact GFOA: To contact GFOA about session topics please research@gfoa.org #GFOA2018