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2017-02 Performance Audit Report: Cash Handling at County of Hawai'i's Department of Water Supply
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2017-02 Performance Audit Report: Cash Handling at County of Hawai'i's Department of Water Supply
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• Cash receipts in the billing system (PUBS) are not reconciled to the general <br />ledger. <br />Daily cash receipts are posted to PUBS while month-end cash receipt entries are <br />manually posted to the general ledger system. Currently, a reconciliation is performed <br />between the two systems, but does not include adjustments to PUBS. <br />A revenue report is produced prior to the end of the business day. This report is used to <br />post to the general ledger and to perform the current reconciliation. As mentioned above, <br />there is no reconciliation of the adjustments recorded in the cash receipting system <br />(PUBS) to the approved debit/credit memo. This results in a revenue report that may not <br />include adjustments. <br />Because the reconciliation is performed from a potentially incomplete revenue report, we <br />could not ensure that all cash collected was deposited and posted. Since duties are not <br />adequately segregated as discussed above, this reconciliation is crucial to ensure all <br />revenue is collected and deposited in a timely manner. <br />• Manual receipts posted to PUBS are not reviewed for accuracy and the correct <br />posting period. <br />Manual receipts are used for non -water cash receipts (i.e., credit deposits, installation <br />charges, facilities charge, rent, and reimbursements). While the cash for these receipts <br />is deposited daily, the cashiers only enter the manual receipts into PUBS weekly. In <br />addition, the manual receipts postings are not reviewed against the physical manual <br />receipts or daily deposit for accuracy. <br />• The bank reconciliation is not independently reviewed. <br />Since the Waterworks Controller has access to the deposits, full computer access to <br />cash receipting and the general ledger systems, as well as performs the bank <br />reconciliation, someone independent of the cash receipting process should review the <br />bank reconciliation for errors or inconsistencies. <br />Surprise cash counts are not performed at all offices. <br />In Hilo, only "unofficial" cash counts are conducted by the supervisor, which only <br />includes counting the daily beginning balance of the cash drawer. During our audit <br />period, no cash counts are performed at any locations. Only beginning in July of 2016, <br />did the Water Service Program Supervisor begin performing surprise quarterly cash <br />counts in both Kona and Waimea. This cash count reconciles cash on hand to a PUBS <br />check balance report. <br />DWS Cash Receipts Audit Results Ill <br />
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