WASHOE COUNTY Integrity Communication Service

Transcription

1 WASHOE COUNTY Integrity Communication Service DATE: August 24, 2017 TO: FROM: STAFF REPORT BOARD MEETING DATE: September 26, 2017 Board of County Commissioners Alison Gordon Internal Audit , THROUGH: John Slaughter, County Manager SUBJECT: Acknowledge Receipt of Annual Report from the Internal Audit Division for FY (All Commissioner Districts) CM/ACM Finance DA Risk Mgt. HR Other SUMMARY Section of the Washoe County Code requires the Internal Auditor to submit an annual report to the Board of County Commissioners each fiscal year indicating audits completed, major findings, correction actions taken, and significant findings that have not been fully addressed. Strategic Objective supported by this item: Stewardship of Our Community PREVIOUS ACTION No previous action has been taken on this Board item. BACKGROUND The following audit reports were submitted to the Board of County Commissioners during FY The status of the recommendations was made with input from each department; and is reported with the findings in the attached spreadsheet. 1. Travel Expense Audit December 13, Cash Controls Audit originally issued May 9, 2017 but revised and reissued August 8, 2017 FISCAL IMPACT No fiscal impact. RECOMMENDATION The Board of County Commissioners to acknowledge receipt of annual report from the Internal Audit Division for FY AGENDA ITEM #

2 Washoe County Commission Meeting September 26, 2017 Page 2 of 2 POSSIBLE MOTION Move to acknowledge receipt of annual report from the Internal Audit Division for FY ag Attachment

3 Travel Expense 1.1 N/A N/A N/A 2.1 County employees are not always complying with County Code Travel Regulations. County management should stress inte importance of complying with County Code Travel Regulations. Travel Code. One of these revisions are made County management can stress the importance of compliance with County Travel Code. 2.2 County employees are not always submitting travel claim 30 days after traveling. County management should remind employees that travel expense claims are due 30 days after returning from travel, particularly in instances where a travel advance is given. Implemented - A small sample of travel advances and subsequent reimbursement forms were reviewed. All travel expense claims reviewed were submitted 30 after returning from travel. 2.3 County employees are incorrectly allocating incidental costs as part of meal per diem reimbursements. County departments should ensure employee travel claims comply with per diem and incidental cost requirements. Not Implemented - A small sample of recent travel claims were reviewed. County employees still are not always complying with per diem and incidental cost requirements. 3.1 Thirteen percent of travel reimbursement claims tested reconciling travel advances were late. County department should track all advances on a trip log. 3.2 Travel advances were given that were less than the $40 specified by County Code. County departments and the comptroller's Office should ensure all cash advance dollar amounts are in accordance with County Code. 3.3 See 3.2 above No travel advances should be given less than $ The cost of department staff time to prepare and approved advance requests, Comptroller staff time to process the request and the payment, and the cost of the check more than likely exceeds the amount being County management should consider increasing the $40 limit to advanced. ensure costs of issuing advance checks are covered. Travel Code. One of these revisions will increase the minimum to $100.

4 The current ProCard policies and procedures prohibit the use of a ProCard to pay for travel expenses, except for emergency travel as authorized in County Travel Code. One of these revisions will allow Code and approved by the BCC or County departments should comply with policies and procedures ProCards to be used to pay for certain travel 4.1 department head. related to the use of ProCards for travel. expenses such as airfare. 4.2 See 4.1 above County management should provide guidance to the Comptroller's Office Purchasing Division on what types of travel expenses should be acceptable for ProCards. Travel Code. One of these revisions will allow ProCards to be used to pay for certain travel expenses such as airfare. 4.3 See 4.1 above Once guidance is received, County ProCard policies and procedures related to travel should be revised accordingly. See Status 4.2 above 4.4 See 4.1 above County departments should be notified of any changes to the ProCard policies and procedures related to travel. See Status 4.2 above 2017 Cash Controls 1a.1 Petty cash fund request and reimbursement requests are not always correctly completed and do not always include requestor and supervisory signatures. Ensure petty cash documents, including reimbursement request, are complete and accurate at Social Services. 1a.2 No system is set up to track who issued petty cash or the date it was issued. Use the SAP petty cash program to administrer the petty cash fund for both Social Services and Senior Services. 1a.3 The victim fund inappropriately included employee donations for the annual holiday event and reimbursements from staff for items such as employee travel advances. Use the SAP petty cash program to prepare replensishment requests for both Social Services and Senior Services. 1a.4 Petty cash is not always reconciled monthly. Reconcile the petty cash fund at least monthly for both Social Services and Senior Services. 1a.5 Senior Services was periodically using the petty cash fund to advance monies pertaining to "Angel" fund expenses. Reimburse the general fund for all "Angel" fund expenses where petty cash was used.

5 1a.6 See 1a.5 above. Discontinue using petty cash funds as a loan to the "Angel" fund at Senior Services. 1.b.1 Alternatuve Sentencing, Senior Services and Social Services do not have procedures in place to perform periodic surprise cash counts. Alternative Sentencing, Senior Services and Social Services should develop and implement a procedure to perform periodic surprise cash counts. Partially Implemented - Alternative Sentencing has implemented a policy to perform periodic surprise cash count in its cash handling polices. Both Senior Services and Social Services report being in the process of implementing such a policy. 1.c.1 The Alternative Sentencing Department needs to update its current policies and procedures for cash handling. Alternative Sentencing needs to ensure its policies and procedures include clarification of the process for providing receipts for mail in payments, adding information about credit cards being swiped by the probationer, the performance of periodic surprise cash counts, handling void receipts, and updating the procedures to show payments are entered directly into the Scotia system. Implemented Once these issues were discussed with Alternative Sentencing staff, the policies and procedures are updated to address the issues identified. 1.c.2 The Health District has cash handling policies and procedures in place. However these policies and procedures do not have a section on the controls that should be followed for voiding cash receipt payments. The Health District needs to ensure procedures are documented and in place for voiding cash receipts. Partially Implemented The Health District is working towards adding a section in their policies and procedures to address voiding cash receipts. 1.c.3 Senior Services current procedures only address how torequest replenishment monies using SAP and do not include day-today administration of the petty cash fund or Senior Services needs to complete policies and procedures for preparing a replenishment request. the day to day administration of petty cash. Partially Implemented Senior Services reports it is in the process of revising its policies and procedures pertaining to petty cash. 1.c.4 The Sheriff's Office Civil and Records divisions have policies and procedures in place. However, these policies and procedures do not include a section on the process of voiding cash receipt payments. The Sheriff's Office should ensure procedures to avoid cash receipts are documented. Implemented The Sheriff's Office reports the written policies and procedures have been updated to include the procedures followed for voiding cash receipt payments.

6 1.c.5 Social Services current procedures do not include using SAP to account for additions and and disbursements to the petty cash fund, using SAP to reconcile the petty cash fund and request replenishment's, and require the petty cash fund to be reconciled at least monthly. Social Services needs to revise the written procedures to include using SAP to account for additions and disbursements to the petty cash fund, using SAP to reconcile the fund and request for punishments, and require the petty cash fund to be reconciled at least monthly. Partially Implemented Social Services reports it is in the process of revising its policies and procedures pertaining to petty cash Currently, the Davis Creek Campground only accepts cash payments for its camping fees and uses a manual process to account for these fees. An automated camping fee kiosk would accept debit/credit cards and reduce the risk of loss or theft while carrying cash. The Community Services Department should purchase an automated camping fee kiosk for Davis Creek Campground. County staff are having difficulties County staff should analyze their Accela priorities and should recording cash receipts in the Accela system consider moving any cash handling issues to a higher priority. Not Implemented The Community Services Department requested funding for an automated camping fee kiosk as part of it's FY2018 budget request. However, this funding request was not approved. Partially Implemented County staff, including the Internal Auditor, Technology Services, Community Services and the Health District, and an independent contractor have been working diligently to get the Accela system financial process is working. 3.2 Departments are having difficulties tracking customer overpayments in Accela. Because of this situation, certain departments are informing customers if they are writing a check they must pay the exact amount. However, one department issued a permit and held the business owners incorrect check until a check for the correct amount was brought in. County departments should not issue permits without receiving and recording a payment in the Accela system. See status 3.1 above.