Report on Cash-Handling

Transcription

1 Report on Cash-Handling Policies and Procedures September 18, 2017

2 Presentation Overview Purpose of Report Overview of County Cash Collections County Management Actions Regarding: Register of Deeds (ROD) Office County-wide Cash Handling Updates on actions since Aug. 4 Cash-Handling Report issued 2

3 Purpose of Report On Aug. 4, 2017, County Management provided a report to the Board to share: Information regarding actions taken with respect to the Register of Deeds Office theft Efforts taken and planned regarding cash-handling procedures county-wide Today, we will review the report and provide an update to the board on current status. 3

4 4 Cash Handling Cash collections FY 2017: $390 million in cash and checks collected at over 85 cash collection locations throughout the county. 80% (approximately $1 billion) of county revenues are received via electronic funds transfers. Cash policies 2010: Cash management policy and procedures were updated. Apply to all areas of cash collection. Process has been decentralized. Cash audits Dec July 2017: County s internal audit performed cash reviews at 13 sites with no significant findings. Annual External Audits : All annual audits have resulted in an unqualified, clean opinion. No management letters (findings by auditors) were issued.

5 External Audits Auditor s responsibility: Expressing opinions on the financial statements Evaluating appropriateness of accounting policies Management s responsibility: Maintaining internal controls Preparing and presenting accurate financial statements 5

6 County Actions Regarding ROD Theft Jan. 30, 2017 County Manager made aware of financial discrepancies in ROD Office Feb. 21, 2017 Internal Audit witnessed and controlled cashiering function for ROD Office s daily activities Feb. 1, 2017 County Manager and County Attorney consulted with District Attorney Feb. 22, 2017 Differences between cash deposits and system activity ceased except for typical overages, shortages Feb. 2, 2017 ROD Riddick informed of need to proceed with an internal audit, which started Feb. 3, 2017 May 17, 2017 County engages external auditors to review work of Internal Audit to substantiate amount for insurance claim 6

7 ROD Office Procedure Changes By Internal Audit By ROD Office By Finance Recommends numerous changes on cash-handling procedures to ROD Office Effective Feb. 3, 2017, verified daily deposits for material discrepancies between ROD cash deposited and ROD system totals No material differences noted beginning in February New ROD Charles Gilliam supported and continued process implemented by Internal Audit Additional initiatives include: Annual Internal Control audit on the ROD Office accounts Information systems audit Implementing processes to accept credit cards for vital records Modified supporting documentation for cash deposits Overages or shortages of more than $10 require written documentation MOU to formally document county s responsibility for oversight and review of ROD financial transactions 7

8 Cash-Handling Improvements More standards, more focus, more training Policy Review Payment Methods Oversight Established a fraud, waste and abuse policy All employees, elected and appointed officials should be aware of the potential for fraud, waste and abuse, and report suspected fraud, waste or abuse of county assets Efforts have been underway to increase the use of credit and debit cards June 2016: County hired its first Payment Card Industry Compliance Officer to increase implementation efforts throughout the county Designated Treasury Contacts for each county department Work closely with Finance to strengthen cashhandling procedures throughout the county Provide in-person training for cashiers and their immediate supervisors 8

9 Updates Training Audit Planning Insurance Claim All department /agency heads have attested to their responsibility for cash handling 20 Treasury Contacts and 739 cashiers and immediate supervisors have received in-person training and attested to their responsibility for complying with county policies Working with External Audit to conduct the following: Comprehensive Cash Collection Site Audit ROD Office Audit ROD System Audit Internal Audit developing a plan for periodic, on-going review of all cash collection sites Completed audit work to determine estimated amount of loss Between June 2008 and February 2017, ROD cash deposits were $2.3 million less than recorded in the ROD system reports 9

10 10 Questions