2017-02 Performance Audit Report: Cash Handling at County of Hawai'i's Department of Water Supply

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We conducted this performance audit in accordance with general accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Our conclusions on the effectiveness of these controls are detailed within this report. We thank the Department of Water Supply's staff for their assistance and cooperation during this audit. Management generally agreed with the comments and recommendations in this report. Their complete response to this audit can be found on page 18: Management Comments. Commendations & Noteworthy Accomplishments We are pleased to report that the Department of Water Supply (DWS) has taken a proactive role in strengthening certain controls we identified as weaknesses during the course of the audit. Additionally, we appreciate the cooperation exhibited by DWS and their willingness to implement many of our recommendations. For instance, DWS has asserted they have: established procedures to include a more proactive supervisory review process for any adjustments within the cash receipts process; • prepared adjustment reports through the cash receipting system (PUBS) to reconcile cash receipts and monitor adjustments; conducted surprise cash counts at all established payment collection locations quarterly; and started reviewing and revising current written procedures to be more comprehensive throughout the cash receipts process. We will follow up at the appropriate time to determine whether and to what extent all recommendations have been implemented. DWS Cash Receipts Audit Objective, Scope &Methodology 13