COM 0109.001 2016-2018 - Laserfiche WebLink

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• four baseyards had inadequate perimeter fencing (e.g., disrepair and incomplete fencing); • three baseyards had inadequate window security; and • no security cameras or authorized personnel signs have been posted at any of the baseyards. Staff said they were not familiar with the Inventory Procedures Manual or knowledgeable of resolving inventory discrepancies timely. We found staff did not receive sufficient training to adequately safeguard equipment or implemented compensating controls. As a result, fraud detection is difficult and management may not timely detect and correct errors and discrepancies. Written inventory policies and procedures are inadequate and not consistently followed or enforced The County's Inventory Procedures Manual has not been updated in 17 years to reflect actual processes in inventory tasks. To ensure policies and procedures are current; the County should perform regular review and update of established policies and procedures. The Government Accountability Office (GAO) establishes best practices for achieving consistent and accurate physical counts of inventory, including the regular review, and update of established policies and procedures. The development of written policies and procedures are an effective way to maintain strong internal controls and should clearly delineate the control activities performed throughout various inventory processes. This will help in the orientation of staff responsible for managing the County's inventory, including new and temporary assigned employees; promote operational continuity in the event of staff turnover, and to ensure compliance with applicable laws and regulations. Each department and agency at the County of Hawai"i is responsible for creating and maintaining their own internal control policies and procedures using the Department of Finance's Accounting Manual as a basis for establishing an adequate system of internal controls. The Department of Public Works Highway Maintenance Policies and procedures should be clarified and on-going training provided so employees can be held accountable. Division follows the County's Inventory Procedures Manual (January 1983). In addition, the Division created their own policy and procedure on borrowing any inventory items to ensure they continuously track their entire inventory but could not demonstrate they followed or enforced written policies and procedures. The Finance Property Management Division disseminates the Inventory Procedures Manual, inventory -reporting instructions through memorandums, provides reminder emails, verbally communicates instructions, offers training sessions and assistance to departments throughout the year, and conducts physical inventory counts when a property custodian (typically the department head) leaves office. The Inventory Procedures Manual (January 1983) is available on the DPW Highway Maintenance Division Inventory Management: Audit Results 120