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Valerie T.Poindexter -y o Bonnie S.Nims,CGRP <br /> Chair&Presiding Officer o�N "�: 4r% °. Legislative Auditor <br /> Council District 1 <br /> Business Address <br /> • <br /> OF <br /> ,•aTQTF._ -47'; •- / 120 Pauahi Street <br /> ,.,,.,.. <br /> Suite 309 <br /> Hilo,Hawai`i 96720 <br /> Gunk .afPaftat t <br /> OFFICE OF THE LEGISLATIVE AUDITOR , <br /> 25 Aupuni Street Hilo,Hawai`i 96720 * (808)961-8386 * Fax(808)961-8905 �, C : <br /> website:http:%hawaiicounty.gov e-mail:puhliclao(i9co.hawaii.hi.us CQ <br /> April 30, 2018 d Q-( <br /> —rin <br /> C) <br /> 1;›*The Honorable Valerie T. Poindexter, Council Chairperson and <br /> Members of the Hawai`i County Council <br /> Hawaii County Council <br /> 25 Aupuni Street <br /> Hilo, Hawai`i 96720 <br /> Dear Chair Poindexter and Council Members, <br /> In accordance with Hawai`i County Charter Section 3-18(d)(2), attached is the Office of the <br /> Legislative Auditor's report of our audit of cash handling at the Hawai`i County Mass Transit <br /> Agency(Mass Transit). The purpose of the audit was to determine if cash handling internal <br /> controls at Mass Transit are adequate and effective to ensure that revenue is properly controlled <br /> and deposits are timely and accurate. We evaluated if these internal controls followed best <br /> practices and identified areas for improvement. <br /> In fiscal year 2016-2017, Mass Transit receipted approximately $1.2 million in bus fares and <br /> shared ride taxi coupons (taxi coupons). Management of such a significant revenue stream <br /> makes it important for Mass Transit to have sound controls to safeguard revenue. As described <br /> in the attached report, Mass Transit needs to develop stronger cash handling internal controls to <br /> ensure that revenue is properly controlled and deposits are timely and accurate. Specifically, <br /> Mass Transit needs to update the bus cash handling system and increase the priority of cash <br /> handling internal controls. These internal controls include physically securing their assets, <br /> segregating incompatible duties, implementing monitoring and oversight procedures, updating <br /> and enforcing policies and procedures, and providing training. We also found Mass Transit <br /> needs to improve their control over manual cash receipts and their purchase order sales process. <br /> Through stronger internal controls and monitoring, Mass Transit will be able to improve its <br /> collection, safeguarding, and accounting for its transportation revenue. Our report lists several <br /> related recommendations. <br /> Comm. No. CO-® <br /> Ref. To: <br /> Hawai'i County is an Equal Opportunity Provider and Employer Ref. Date APR 3 0 2013 <br />