2018-01 Performance Audit Report: Cash Handling at County of Hawai'i's Mass Transit Agency

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The County of Hawai"i Mass Transit Agency's cash handling process inadequately addresses internal controls, leaving gaps in existing policy including safeguarding of assets and management oversight. The audit recommends that Mass Transit immediately address the internal control weaknesses revealed through our site visits and develop a more proactive cash handling oversight program. The following recommendations address each of these areas. 1. Update the bus cash handling system 1.1 We recommend Mass Transit management equip each County bus and van with an updated electronic fare box to collect passenger fares and track ridership. 1.2 We further recommend Mass Transit pre -number bus tickets. As mentioned in recommendation 3.1 and 5.2 respectively, these tickets should be adequately secured and monitored for consecutiveness and completeness. 1.3 We further recommend Mass Transit remove or alter the perforated stub at the top of the bus ticket sheets to ensure passengers pay the full fare. 2. Cash handling internal controls should be a priority 2.1 We recommend Mass Transit management prioritize cash handling internal controls. Management should be responsible for an effective internal control system and internal controls increase the likelihood that the organization will achieve their objectives 3. Safeguard assets 3.1 We recommend Mass Transit management ensure physical security over manual receipts, cash, and cash equivalents (e.g., bus tickets, bus passes, taxi coupons). 3.2 We further recommend Mass Transit management ensure deposits are made timely, both for contracted bus services and cash received by Mass Transit. Ideally, deposits should be made within 24 hours, but at least within two business days. 3.3 We further recommend Mass Transit staff restrictively endorse checks immediately upon receipt. Mass Transit Cash Handling Audit Recommendations 124