COM 0988.000 2020-2022 - Laserfiche WebLink

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Condition and Cause Independent verification was not being performed. Effect of the Condition The lack of independent verification over the cash handling process made fraud detection and variances difficult to detect. Recommendation 3 "We further recommend that the Department of Water Supply Finance and Customer Service Branch implement an independent verification process by an employee outside the cash handling process to review: • the daily cash receipts reconciliation and bank reconciliation; • cash receipts in the Public Utility Billing System (PUBS) that are reconciled to the general ledger, and • manual receipts posted in PUBS for accuracy." Department Action To meet this recommendation, DWS no longer uses manual receipts since they upgraded to the Northstar CIS system in January 2020. Independent reviewers outside the cash handling process: • Re-verifies cash receipts and compares transactions itemized by tender (cash, credit card, and checks) • Reconciles daily and monthly transactions against Northstar and the general ledger • Reconciles daily bank transactions • Investigates variances Audit Activity To verify status, we conducted site visits to observe monitoring practices, corroborated with staff, reviewed itemized calculator tape totals, and found no exceptions. Independent reviewers outside the cash receipting process at various locations reviewed transactions for accuracy and reconciled cash receipts and bank transactions to Northstar and the general ledger. Status: Implemented Status of Recommendations 1 10