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Audit Results <br />Internal controls over water cash receipts are inadequate to <br />prevent, detect, or deter fraudulent transactions. As a result, we <br />are unable to determine if cash receipts was complete. <br />The Department of Water Supply's (DWS) revised Cashier Procedures establishes internal <br />controls to ensure cash is safeguarded, accounted for, and properly recorded. Our audit <br />evaluated these internal controls of DWS's water cash receipts. We found that these internal <br />controls are generally inadequate and not operating according to best practice to prevent, <br />detect, or deter fraudulent transactions. (Figure 1) As a result, errors and irregularities may go <br />undetected by employees performing their normal assigned duties. Audit testing of internal <br />control procedures included the following risk area where we found no exceptions: <br />Summary of Internal Controls <br />Best Practice <br />Was it Performed? <br />Segregation of duties <br />No <br />Independent Monitoring <br />No <br />Written Policies and Procedures <br />No <br />Safeguarding of Assets <br />Yes <br />Figure 1 <br />• Adequate Safeguarding of Cash Receipts - Department of Water Supply's <br />management and staff have limited access to cash and only one employee has access <br />and uses one cash drawer. <br />While we found that cash receipts were adequately safeguarded, we did identify other areas <br />where DWS could enhance its controls to further strengthen compliance with best practices and <br />discourage theft or misappropriation. <br />DWS Cash Receipts Audit Results 18 <br />