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Do Mass Transit's policies and procedures conform to best practices? <br />Were policies & <br />Was the actual practice <br />Expected Procedure <br />procedures complete? <br />performed? <br />Administrative <br />Baseyard <br />Administrative <br />Baseyard <br />Office <br />Office <br />1. Independent review and <br />Inadequate <br />No <br />Nc <br />No <br />monitoring <br />2. Segregation of duties <br />Inadequate <br />No <br />No <br />No <br />3. Physical security procedures <br />Inadequate <br />No <br />No <br />No <br />4. Timely deposit of receipts <br />voe <br />No <br />No <br />No <br />5. Checks endorsed immediately <br />No <br />N/A <br />No <br />N/A <br />6. Timely reconciliation of cash <br />No <br />No <br />receipts to applicable ledgers <br />7. Receipts are consecutive and <br />pre-numbered (including <br />No <br />N/A <br />N/A <br />voids) <br />8. Taxi coupons, bus tickets, and <br />bus passes are consecutive <br />N/A <br />N/A <br />and pre-numbered <br />9. Account for cash as it is <br />received (Timely recognition of <br />Yes <br />revenue) <br />10. Reconciliation of total checks <br />No <br />N/A <br />N/A <br />and cash and over/shorts <br />11. Fraud reporting <br />No <br />Source: Data compiled by the Office of the Legislative Auditor <br />Table 2 <br />Specifically we found: <br />Independent review and monitoring. Existing procedures only address the verification <br />of the deposit information. Mass Transit has not addressed numerous review and <br />monitoring opportunities. Policies and procedures should require a thorough review <br />performed by an independent person to ensure accuracy, completeness, and <br />timeliness of receipts and bus fares. <br />2. Segregation of duties. Existing procedures do not address separating any of the <br />physical custody of the cash, depositing, or cash reconciliation functions. Current <br />employee assignment allows everyone to collect and receipt cash, including the <br />employee who is responsible for the approval, review, and monitoring. Policies and <br />Mass Transit Cash Handling Audit Results 121 <br />