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

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Ms. Bonnie S. Dims, CGA.P Page 2 August 17, 2017 • Is currently exploring the PUBS G/L interface for additional reports to utilize in the monthly reconciliation between bank, PUBS and the GL by the Assistant Waterworks Controller. • Will implement regular monitoring of DWS' internal control system in accordance with policies and procedures and industry best practices and update as necessary. 3. Cash receipts in the billing system PUBS are not reconciled to the P,eneral led er. DWS currently reconciles daily cash receipts Journals to daily bank deposits. A monthly report of cash receipts is used to post the cash receipts to the GL which is reconciled to the monthly bank statement. DWS has also implemented monthly reconciliations of PUBS cash receipts Journals to bank deposits by an Accountant outside of the cash receipting process. DWS will be utilizing a report from PUBS to capture all the cash receipts Journals processed for the month. Cash receipts j ournals in the PUB S report will be matched against the bank deposits to ensure all payment collections were deposited and recorded. The PUBS G/L interface is being explored for additional reports to utilize in the monthly reconciliation between bank, PUBS and the GL by the Assistant Waterworks Controller. 4. Manual receipts posted to PUBS are _not reviewed _for accuracy and the correct posting period. DWS will be revising our procedures to address this finding. 5. The bank reconciliation is not independently reviewed. The Assistant Waterworks Controller has completed reviews of the bank reconciliations prepared by the Waterworks Controller dating back to July 2016. Effective July 1, 2017, the responsibility for bank reconciliations has been shifted to the Assistant Waterworks Controller. 6. _Surprise cash counts are not performed at all offices. Beginning June 20171, surprise cash counts were scheduled for all offices for the current fiscal year which will be performed unannounced at each district Office. A schedule will be prepared annually going forward. 7. Written policies and procedures. Current policies and procedures are being reviewed and revisions will be made to incorporate recommendations and include more details throughout the cash receipts process. In summary, DWS will be implementing all of the recommendations made by the Legislative Auditor. Sincerely yours, WMP Keith K. Okamoto,P. . Manager -Chief Engineer CG:dmj DWS Cash Receipts Management's Response 119