Cash Handling Audit Report Draft 5

i Table of Contents The Revenue Division’s Cash Controls Report Number 2007-01 EXECUTIVE SUMMARY iii PRELIMINARY Introduction 1 Objective 1 Audit Scope 1 Citywide Ramifcation 2 CONCLUSIONS 1. REVENUE DIVISION’S CASH COLLECTION AND HANDLING 3 1A. Increase Fixed Accountability for Cash and Credit Receipts 3 1A-1. Cash and Credit Card Activity Not Closed on a Daily Basis 3 1A-2. Reconciliations 1A-2a. Daily Receipts, Bank Deposits, and the General Ledger are Not Reconciled by the Revenue Division 4 1A-2b. Inadequate Separation of Duties for Cash Counts and Reconciliation to the Daily Receipts Report 5 1A-3. Increase Safeguards Over Cash 5 1A-4. Greater Use of Technology to Increase Productivity 6 1B. Petty Cash Review 6 1B-1. Purpose and Usages of Petty Cash Not Defined in the City’s Administrative Policy Instructions 6 1B-2. Labor Intensive Process for Petty Cash Reimbursements 7 1B-3. Discontinue Outdated Petty Cash Practices 1B-3a. Cashing of Employee’s Personal Checks 9 1B-3b. Petty Cash “Cash Advances” for Employees 9 1B-4. Other Petty Cash Concerns 1B-4a. Missing Approval for Monthly Bus Passes Reimbursed through Petty Cash Vouchers in Excess of $100 10 1B-4b. Inadequate Separation of Duties for Approving and Receiving Petty Cash Reimbursements ...