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

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Response: The audit report cites specific concerns with the duties of the County Transportation Specialist (Specialist). The report states that the Specialist "maintains the master Word document far some in-house receipts" but this is limited to receipts used by the independent contractor that sells MTA tickets and passes for which the cash receipts are maintained by the contractor on a daily basis. The report states that the Specialist performs aver -the -counter safes " but this is only done as a last resort if no other staff is available to service the customer, which is due to the relatively small staff size of the MTA. The report states that the Specialist "reviews end -of -dory tush receipts and reconciles lu the treasury receipt " but her role is primarily as a secondary reviewer because the initial review and reconciling of receipts at the end of the day is the responsibility of the Account Clerk. If the MTA finds that it is short-staffed on a particular day, the Specialist may be the initial reviewer but there is always a secondary reviewer as a mitigating control. S. Implement monitoring and oversight 5.1 We recommend Mass Transit management perforin ongoing monitoring of their internal control system as part of the normal course of operations. Ongoing monitoring. includes regular management and supervisory activities, daily reconciliation of cash receipts, and other routine actions. Response: The MTA has begun to review and revise its existing practices and implement improvements based on need and viability. 5.2 We further recommend Mass Transit management specifically implement ongoing monitoring procedures of the cash handling process including both comparisons and reconciliations. For example, someone independent of the cash handling process should review and/or reconcile: o the consecutiveness and completeness of manual cash receipts, paratransit coupons, taxi coupons. bus passes, and bus tickets (once pre -numbered) o voided cash receipts o revenue receipted and deposited to the general ledger o outstanding accounts receivable balances from tickets, coupons and passes purchased with a purchase order o bus trip sheets (ridership) to cash collected and deposited o recorded over/shorts for patterns or irregularities o recorded cash to check composition for irregularities o completeness of bus trip sheets to ensure all trip sheets and related cash receipts are received and deposited a taxi reimbursements receipts and deposits Response: Certain points above are already being addressed by the MTA including monitoring over/shorts and the trip sheets and others are being considered by the MTA in relation to the feasibility of implementation. Mass Transit Agency— Cash Handling Management's Response Page 4 Mass Transit Cash Receipts Management's Response 132