2019 June 28 - Follow Up Report: Cash Handling at County of Hawai'i's Department of Parks and Recreation Follow-Up

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Report Highlights June 28, 2019 Cash Handling at Department of Parks & Recreation Follow -Up Original Audit Background There are inherent risks associated with the implementation of the cash handling processes. If no internal controls exist, or if they exist but are not enforced, the risks related to the process increases, thereby increasing the risk exposure to the County. The Office of the Legislative Auditor determined that a thorough -4 examination of facility use permits cash handling policies, procedures, and processes was warranted. What we recommended The audit identified improvements for management to increase internal controls for facility use permits cash handling including: • Segregating incompatible duties among those who perform accounting procedures and those who handle cash. • Implementing ongoing monitoring of the internal control system over cash receipting activities to ensure that revenue is complete. • Updating, strengthening, and enforcing cash handling policies and procedures; and • Providing initial and on-going cash handling and internal controls training for all employees who handle revenue. Follow -Up Audit L - Background In June of 2016, the Office of the Legislative Auditor concluded an audit of cash handling of facility use permits at the Department of Parks and Recreation (P&R) and issued five recommendations. Management has generally agreed with the comments and status of recommendations in this report. Objective To determine if the Department of Parks and Recreation implemented our 2016 cash handling audit recommendations. What we found We tested five recommendations and found that management took action as follows: Implemented In Progress Segregation of 1 0 Duties Monitoring and _ 0 Oversight Policies and 0 1 Procedures Training 1 0 This audit was conducted in accordance with generally accepted government auditing standards.