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What do vy,&ecommend? <br />Segregation of Duties <br />We recommend that Department of Water Supply management separate incompatible <br />duties. One individual should not be in charge of all of these cash handling elements: <br />physical custody of cash, depositing cash, recording/adjusting transactions in the <br />system, and reconciling the bank statements. If duties cannot be sufficiently segregated, <br />mitigating controls, such as removing administrator computer access rights to the cash <br />receipting system and/or a lower level of detailed supervisory review could be <br />implemented. <br />Implementing Monitoring and Oversight <br />We recommend the Department of Water Supply management perform ongoing <br />monitoring of their internal control system as part of the normal course of operations. <br />Ongoing monitoring includes regular management and supervisory activities, daily <br />reconciliation of adjustments and cash receipts, and other routine actions. <br />We further recommend that the Department of Water Supply Finance and Customer <br />Service Branch implement an independent verification process by an employee outside <br />the cash handling process to review: <br />the daily cash receipts reconciliation and bank reconciliation; <br />cash receipts in the Public Utility Billing System (PUBS) that are <br />reconciled to the general ledger; and <br />manual receipts posted in PUBS for accuracy. <br />We further recommend that the Department of Water Supply Finance and Customer <br />Service Branch reconcile all adjustments in PUBS to an approved debit/credit memo. <br />We further recommend that the Department of Water Supply Customer Service Branch <br />conduct surprise cash counts at all cash receipting locations. <br />Update and Enforce Policies and Procedures <br />We recommend the Department of Water Supply management clarify and enforce <br />internal controls in County policy and procedures to ensure consistency throughout the <br />department and with industry best practices including but not limited to: <br />• Provide clear guidance on independent review and monitoring procedures. <br />These procedures may include: <br />✓ reconciling adjustments in PUBS with approved debit/credit memos; <br />DWS Cash Receipts Audit Recommendations 116 <br />