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indicates that the permit must be the pre -numbered carbon copy permit distributed <br />by the Department of Finance. <br />Currently, the Clerks at Hilo and Kona create a manual permit using a computer <br />template, assigns the permit a number, and then prints out copies for all parties. As a <br />result, in Hilo, there was an error of 90 "missing" waived inter -departmental permits. <br />These permits were listed on the deposit record but no documentation to verify that <br />the permits existed, were waived, or were voids <br />To ensure that all funds received were receipted and deposited, procedures should <br />require using pre -numbered receipts and an independent review of consecutiveness. <br />Account for cash as it is received. Both Hilo and Kona's current policy require logging <br />permit information and totaling the amount collected in the daily deposit and at the <br />end of day. In Hilo, there were two instances where permits were completed and <br />checks were collected, but they were not recorded or deposited until the next day. <br />Procedures should require accounting for cash upon receipt to eliminate the risk of <br />errors or theft. <br />Reconciliation of total checks and cash. Both Hilo and Kona's current policy require <br />reconciliation of cash and check totals. In Hilo, check and cash breakdown is not <br />verified, only the total from the deposit is reconciled with the treasury receipt total. <br />In Kona, cash and check composition is not verified and copies of checks are not <br />sent to the Hilo office with the permit documents to verify that the cash and check <br />composition is accurate. Procedures should clarify the process of reconciling the <br />cash and check composition on the log to the actual deposit/bank processed deposit <br />slip. <br />There were 10 instances at Kona where check copies were not provided. We were <br />unable to determine when the check was written, the cash and check composition, <br />and if the check was written to the County Director of Finance. Verifying cash and <br />check composition is important to complete the deposit reconciliation and detect <br />fraud. <br />By identifying gaps in policies and procedures, management can identify where effective <br />controls needed to be placed, where to provide sufficient detail for new and existing procedures <br />and to clarify unclear procedures so that they were easier to follow. <br />Cash Handling for Facility Use Permits: Audit Results 112 <br />