2016-01 Performance Audit Report: Cash Handling at County of Hawai'i's Department of Parks and Recreation

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We compared P&R's cash receipting policies and procedures, as well as current practices, to expected control procedures and found several deficiencies. (Figure 2) Comparison of industry best practices to the Department of Park and Recreation's policies and procedures Were Policies & Actual Practice Expected Practice Procedures Complete? Performed? Hilo Kona Hilo Kona Independent review and monitoring Segregation of duties Timely deposit of receipts (within 24 Insufficient hours of receipt) Timely reconciliation to applicable ledgers Physical security procedures Insufficient Insufficient Permit numbers being consecutive Insufficient Insufficient and pre -numbered (including voids) Account for cash as it is received Insufficient Insufficient (Timely recognition of revenue) Checks endorsed immediately Insufficient Reconciliation of total checks and Insufficient Insufficient cash Fraud reporting Figure 2 Policies were incomplete We compared the P&R written policies and procedures to industry best practices and identified several deficiencies: Independent review and monitoring. Existing procedures do not require any independent review during the cash handling process. Policies and procedures should require a thorough review performed by an independent person to ensure accuracy, completeness, and timeliness. Segregation of duties. Existing procedures do not address separating any of the cash collection, depositing, or cash reconciliation functions. Policies and procedures should require that a different person be involved in recording, collecting, authorization, and reconciling functions. Cash Handling for Facility Use Permits: Audit Results 110