COM 0448.000 2016-2018 - Laserfiche WebLink

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Report Highlights August 25, 2017 Cash Handling at the County of Hawai`i's Department of Water Supply Background What did we find? The County of Hawaii Incomplete and inaccurate policies and procedures over the Department of Water Supply's water receipts cash handling process resulted in significant mission is to provide safe and internal controls weaknesses. These weaknesses include dependable drinking water at a inadequate segregation of incompatible duties and insufficient reasonable cost. Money is spent independent review and monitoring. to maintain water quality and a accounting procedures or control activities and those who dependable system. Due to these weaknesses, we could not determine if all cash identify potential areas for received was deposited. We did not identify any instances of In fiscal year 2015-2016, water fraud or misappropriations during our testing. receipts/sales totaled over cash receipting activities to ensure that revenue is approximately $47 million for Management has generally agreed with the comments and the Hilo, Waimea, Kona, and recommendations in this report. Their complete response to this Ka'u offices. audit can be found on page 18: Management Comments. What was the purpose of this audit? The recommendations identify improvements for management to increase internal controls for water receipts cash handling. Our This performance audit was audit report offers recommendations designed to address these undertaken to evaluate if the issues through: program's internal controls were adequate to reduce the • Segregating incompatible duties among those who perform risk of fraud and mishandling of accounting procedures or control activities and those who water receipt revenue and to have access to the cash. identify potential areas for • Implementing adequate ongoing monitoring of the design improvement. and operating effectiveness of the internal control system over cash receipting activities to ensure that revenue is The audit also looked at water complete. receipt transactions to ensure that receipts were deposited Updating, strengthening, and enforcing cash handling timely and intact. policies and procedures according to best practices; and • Providing initial and on-going cash handling and internal We initiated the audit, as we controls training for all employees who handle cash believe cash receipts are an receipts. inherently high-risk process. These recommendations should be considered for all cash receipting locations. This audit was conducted in accordance with general accepted government auditing standards.