2010-01-AU Limited Scope Performance Audit of Department of Water Supply's Internal Controls for Cash Handling and Financial IT Systems

Home

CHAPTER 4: CASH HANDLING SYSTEMS operational requirements and ethical expectations. Effective communication of clearly defined policies and procedures by management enables members of the organization to understand their role in the organization's internal control system. Continuous monitoring of its internal control system further ensures that policies and procedures and control mechanisms remain relevant and effective in managing risk and supporting management objectives. The Department of Water Supply Finance Division The DWS Finance Division consists of a Waterworks Controller and an Assistant Waterworks Controller, who provide oversight over three branches: Customer Service, Management Accounting, and Support Services (or Computer Service). The primary focus of the cash handling portion of this performance audit is on the Customer Service Branch. [See Chapter 3 Attachments: DWS Finance Division Organization Chart and Customer Service Branch Position Organization Chart.] Cash collection occurs in the Hilo office and the Waimea and Kona District offices. At the Hilo office, Cashiers I and II handle all transactions relating to walk -in and mail -in cash and check payments, with the Customer Service Supervisor and the Assistant Customer Service Supervisor only assisting with processing of payments when short- staffed. At the Hilo office, all mail -in payments are received by the Administrative Services Branch Receptionist, who sorts regular mail from water bill payments and forwards water bill payments to the Cashiers for processing. Mail -in payments received at the Waimea and Kona District offices are forwarded through a bonded courier service to the Hilo office for processing. At the Waimea and Kona District offices, Customer Services Representatives I and 11 perform cashiering duties for walk -in payments in addition to customer service duties (such as processing applications for new water meter sign -up, researching customer complaints, and handling water leakage reports). The Waimea District office is staffed with two Customer Service Representatives, and a Clerk Meter Reader who serves as an alternate cashier. The Kona District office is staffed with three Customer Service Representatives, and a Clerk Meter Reader who serves as an alternate cashier. 24