BCC: Change and Petty Cash Fund Audit – Dated June 2, 2020
Summary
The Pasco County Clerk & Comptroller's Department of Inspector General conducted an unannounced audit (Report No. 2020-03) of change and petty cash funds authorized by the BCC and issued to departments within the Public Services Branch. Unannounced cash counts were performed on January 29–30, 2020, covering 19 drawers across Animal Services, Libraries, Parks and Recreation, and the Destination Management Organization.
The IG confirmed that all funds existed and reconciled to supporting documentation, control forms were current, and funds were properly recorded in the general ledger. However, 5 findings were identified — 2 compliance issues, 2 control issues, and 1 observation — related to improper check endorsement, unsecured cash, unreported overages, an unreimbursed petty cash fund, and an unsigned credit card receipt.
All findings were discussed with management, who provided corrective action plans including staff training, policy updates, and procedural revisions. Several issues were addressed by management prior to issuance of the final report.
5 findings
- Finding 1mediumcash handling
Animal Services checks not endorsed per Administrative Directive 25
On January 30, 2020, at the Animal Services Administration Building, 14 receipted checks were found not endorsed in accordance with Administrative Directive #25. The directive requires all checks to be immediately endorsed for 'deposit only,' depicting the Board of County Commissioners and the bank account for deposit. The checks lacked the required restrictive endorsement at the time of the audit.
Management response: Pasco County Animal Services acknowledged the issue and stated they would retrain all staff on the Internal Controls Money Handling Procedure. Quarterly money handling trainings and random internal audits by division supervisors were planned, with the updated policy redistributed to all PCAS team members on 2/25/2020. - Finding 2mediumcash handling
Change fund at J. Ben Harrill Recreation Complex left unsecured
On January 30, 2020, the change fund at J. Ben Harrill Recreation Complex was found maintained in an unlocked cash box, which was stored in an unlocked file cabinet in an unlocked back office. Administrative Directive #45 requires security safes to be locked at all times and personnel to close and lock the safe immediately before leaving the area. No recommendation was provided for compliance findings.
Management response: Management stated the filing cabinet and/or safe would always remain locked per policy and Administrative Directive #45, that disciplinary action would be taken on the employee, and that the staff member would receive Cash Handling Procedure Training on March 12, 2020, effective immediately. - Finding 3mediumcash handling
South Holiday Library failed to report cash drawer overage
During the January 30, 2020 audit, a cash drawer at South Holiday Library was found to be over by $0.10, confirmed and signed off by both the lead auditor and branch manager. However, the overage was not reported on the end-of-day 'Library Services Cash Receipts Summary' provided to General Ledger. This is a recurring issue, as a prior audit (#2019-01) also documented an unreported shortage at the same branch.
Recommendation: Update existing policies and procedures, and train staff to ensure that any overage or shortage discovered throughout the day is reported upon discovery, and also reported at end of business regardless of whether it nets to zero at day-end reconciliation.Management response: Libraries acknowledged their Money and Banking Policy lacked clarity on immediate reporting, and committed to updating the Cash Receipts Summary Form to include an Over/Short Detail section and updating the Money and Banking Policy. Training was planned for all branches with a target completion date of April 30, 2020. - Finding 4mediumcash handling$280
DMO petty cash fund unreimbursed with stale prior-year receipts
On January 30, 2020, two petty cash receipts at the Destination Management Organization (DMO) dated July and August 2019 (the prior fiscal year) totaling $280.00 had not been submitted for reimbursement. As a result, these expenditures were not recorded in the accounting system in the proper fiscal year. The existing policy's minimum balance threshold of $200.00 was too low and did not specify a required timeframe for reimbursement requests.
Recommendation: Implement a policy requiring the petty cash fund to be replenished once the balance reaches $300.00 or receipts reach 30 days old, whichever occurs first. Reassess whether the current fund amount of $500.00 remains appropriate.Management response: DMO agreed to update Petty Cash Procedures to require replenishment once the balance depletes to $300.00 or outstanding receipts reach 30 days old. DMO also committed to reassessing the $500.00 fund amount, with procedure updates to be completed by April 1, 2020 and fund amount reviewed by October 1, 2020. - Observation 5lowpolicy$23
Unsigned credit card receipt found at Land O' Lakes Library
On January 29, 2020, an unsigned credit card receipt in the amount of $22.75, dated January 10, was found stored in the safe at the Land O' Lakes Library. Branch staff were unaware of procedures for handling unsigned receipts. The credit card charge had been included in a deposit submitted to Financial Services, and management was attempting to contact the cardholder.
Recommendation: Continue attempting to obtain the customer's signature. Revise the existing standard operating procedure to provide guidance for handling unforeseen circumstances in which a receipt was not signed.Management response: Libraries noted that signature requirements are already outlined in the Libraries Electronic Payment Procedures (December 2015). Fiscal Services was notified on the date of the audit and instructed staff to follow the existing procedure. The Electronic Payment Procedure will be revised to include guidance for unforeseen circumstances, with implementation targeted by April 30, 2020.