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CHAPTER 4: CASH HANDLING SYSTEMS <br />duties and independent reconciliation of customer payments to <br />decrease the risks of misappropriation or fraud. <br />RECOMMENDATION DWS management needs to analyze its current processes and <br />implement sufficient control procedures to ensure that mail -in <br />payments are posted, deposited, and reconciled in a timely <br />manner. This process analysis could include a reevaluation of <br />preventive and detective controls discussed in its revised <br />procedures dated October 20, 2009, DWS Checks and Cash <br />Receipts Control — Recommendations for Change, which included <br />purchasing of a lock box service and scanning of all incoming mail <br />envelopes. Upon determination of the most cost - effective control <br />procedure or combination of control procedures, the Finance <br />Division needs to promptly implement them to ensure greater <br />accountability and security of customer monies. <br />Criteria: Internal Control Criteria — COSO Component No. 2: <br />"Risk Assessment — Every entity faces a variety of risks from <br />external and internal sources that must be assessed... Risk <br />assessment is the identification and analysis of relevant risks to <br />the achievement of management objectives, forming a basis for <br />determining how risks should be managed." <br />Criteria: Internal Control Criteria — GFOA Cash Receipts Policy: <br />"Internal controls: All aspects of cash receipts shall be subject to <br />proper internal controls with standard controls documented and <br />followed by revenue generating departments: <br />• Segregation of duties — authorization, recording, custodian <br />functions, and reconciliation. <br />• Daily processing — daily cash /collection total reconciled to <br />subsequent deposit. <br />• Timely depositing of funds received ... <br />• Reconciliation to the general ledger and other supporting <br />accounting ledgers shall be performed in a timely manner." <br />26 <br />