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CHAPTER 4: CASH HANDLING SYSTEMS <br />RECOMMENDATION When a risk is identified, management should promptly evaluate <br />potential financial and operational impacts, and if warranted, <br />assess possible control processes and procedures to sufficiently <br />reduce risk to an acceptable level as well as assess the costs of <br />implementing preventive and detective controls. In determining <br />whether control costs outweigh identified risks, management <br />should consider all — not just financial - risks and impacts. If it fails <br />to implement at least basic controls to address areas of identified <br />risk, management may communicate to employees that it is not <br />concerned with achieving objectives or safeguarding assets. <br />With respect to the mail -in customer payment process, DWS <br />management needs to review and evaluate all current processes <br />to ensure adherence of actual operations to written policies and <br />procedures; evaluate whether current written policies and <br />procedures are effective and efficient; identify any unaddressed <br />operational and financial risks; and determine what controls are <br />necessary to provide sufficient monitoring and oversight. This <br />monitoring and oversight function should be performed by <br />personnel who do not have access or authority to receive or post <br />mail -in payments to customer accounts or prepare bank deposits. <br />Criteria. Audit Plan — Government Auditing Standards. <br />Controls over the safeguarding of assets and resources <br />include policies and procedures that the audited entity has <br />implemented to reasonably prevent or promptly detect <br />unauthorized acquisition, use, or disposition of assets and <br />resources. " <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 />Recommendation... Depositing of Funds for Services: <br />o Remote cash and cheque collection points should be <br />established where appropriate customer service benefits are <br />evident. Documented internal controls need to be established <br />with such collection points. The ultimate remittance or deposit <br />of such collection receipts should be documented and <br />systematically performed by the applicable officials..." <br />W <br />