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

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County of Hawaii Department of Finance, Accounting Manual Part I (June 7, 1999) requires departments and agencies to maintain internal controls: General This section charges departments and agencies with the responsibility to maintain an adequate system of internal controls and with the further responsibility to see that the internal control continues to function effectively as designed... Internal Control 1. Objective. The objective of internal control is to provide reasonable assurances as to the safeguarding of assets against loss from unauthorized use or disposition and as to the reliability of financial reports for preparing financial statements and maintaining accountability for assets... Required Features. Any system of internal control should include, as a minimum, the following elements: 1. Systems of authorizations, approvals, and recording procedures adequate to provide reasonable accounting control over assets, liabilities, revenues, and expenditures. 2. Separation of duties concerned with record keeping and accounting reports from those concerned with operations or asset custody. 3. Physical controls over assets. 4. Personnel whose qualifications are commensurate with their responsibilities and duties. 5. Continuing internal review by management to determine: a. Prescribed policies, rules and regulations are being carried out. b. Changes in operations have not made the procedures inefficient or obsolete. c. Effective corrective measures are being taken promptly when deficiencies are discovered. County of Hawaii Department of Finance, Memorandum 17-06 (May 31, 2017) reminds departments that cash and treasury receipts are required within two working days: ... Please take time now to catch up on delinquent deposits and delinquent treasury receipts. As a reminder all cash is to be deposited within two working days. For those of you using night deposit boxes or who have payments automatically deposited into the County's bank account, your treasury receipts are also required within two working days ... Mass Transit's Cash Handling Procedures (November 1, 2016) states: 1. All office staff will be assigned individual cash boxes, each with a $30.00 kitty for the sale of bus passes, bus tickets, shared ride taxi coupons, paratransit coupons and items pertaining to licensed taxi companies, or any other items with a cash value. Cash Mass Transit Cash Handling Audit Criteria 140