2022-04 Department of Water Supply Cash Handling Follow-up

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Chapter 1 Introduction Objective Did the Department of Water Supply implement the 2017 cash handling audit recommendations? Scope The prior audit evaluated DWS' Hilo Office cash handling from November 2015 to December 2015 and May 2016 to June 2016. The Waimea, Kona, and Kau Offices were not included in the original scope because all work was reviewed, and final cash receipting system reports were posted through the Hilo Office. The follow-up audit evaluated cash handling practices from July 2022 to August 2022 at the Hilo, Waimea, and Kona Offices. The Kau Office no longer receipts cash and, therefore, was not in scope. The audit engagement began in August 2020. Subsequently, the audit was suspended in October 2020 due to implementing the Northstar CIS system (customer service and billing system) and resumed in July 2022. This follow-up audit was limited to reviewing and reporting on the implementation of outstanding audit recommendations. We did not consider new or previous issues that did not relate to our original recommendations. Methodologv To verify the Department of Water Supply implemented the 2017 cash handling recommendations, we: • Corroborated information with appropriate staff to follow up on the responses to audit recommendations • Reviewed applicable laws and other relevant governance • Performed tests of internal controls and transactions over the cash handling process • Conducted site visits to verify monitoring and oversight practices • Was mindful of potential fraud, waste, and abuse during the audit • Noted exceptions and identified areas for improvement Introduction 5