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

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3.3 We further recommend Mass Transit staff restrictively endorse checks immediately upon receipt. Response: The MTA has directed staff to ensure compliance with recommended practice. 3.4 We further recommend Mass Transit management change lock or safe combinations once an employee who had access leaves the organization or is reassigned to another position. Response: The MTA is reviewing and updating all existing procedures, to ensure compliance with this and that similar recommendations are fully addressed. 3.5 We further recommend Mass Transit management implement a cash receipt log for all incoming revenue including bus fares from contracted bus service providers. Response. The MTA has already begun to implement various logs to track the receipt of monies from the contracted providers. 3.6 We further recommend Mass Transit management assess the security camera locations, regularly monitor, and limit access to the screen and recordings. Response: The MTA has already incorporated all practical measures to ensure compliance with this recommendation, i.e. limited access to authorized staff to the data room and screen and recordings. 3.7 We further recommend Mass Transit staff empty fare boxes frequently to ensure the automatic locking mechanism works. Response: Although the MTA acknowledges that improvements are needed regarding the frequency of the emptying of fare boxes, the audit report's statement that ..when the account Clerk is unavailable or absent from work no one empties the bus's./are boxes, sometime for several days" does not provide a correct portrayal of the situation. To the extent possible, other MTA staff members have always supported the Account Clerk when she is unable to empty the fare boxes. Additional changes have been made and alternative options are being considered to further the MTA's efforts. 4. Segregate incompatible duties 4.1 We recommend that Mass Transit management separate incompatible duties. One individual should not be in charge of all of the cash handling elements: physical custody of cash, depositing cash, recording/adjusting transactions in the system, and reconciling the revenue accounts. if duties cannot be sufficiently segregated, mitigating controls, such as independent monitoring could be implemented. Mass Transit Agency — Cash Handling Management's Response Page 3 Mass Transit Cash Receipts Management's Response 131