BCC: Unannounced Cash Verification - Dated June 25, 2024
Summary
The Pasco County Clerk & Comptroller's Department of Inspector General conducted an unannounced audit of 20 BCC change funds between April 12 and April 25, 2024. The audit tested whether change funds existed in the correct amounts, were properly secured, accurately recorded in the general ledger, and supported by up-to-date control forms on file with Financial Services. Testing was limited to newly established funds, recently reopened funds, or funds with prior concerns.
Of the 20 funds tested, the audit identified two opportunities for improvement: one fund carried an immaterial cash overage that was inaccurately reported on daily closeout documentation, and one fund was reopened using an outdated control form that was never filed with the General Ledger Division. All other funds and safes were found to be properly secured, and all control form amounts agreed to the Munis financial accounting system. A scope limitation prevented inspection of one safe because authorized staff were unavailable at the time of the visit.
2 findings
- Observation 1lowcash handling
Cash Overage Inaccurately Reported on Daily Closeout Documentation
During the unannounced count on April 23, 2024, the IG identified a cash overage in change fund CF-82 at the Wiregrass Ranch Sports Complex. The overage amount reported on the department's daily closeout documentation did not agree with the overage amount identified by the IG, indicating a deficiency in the process for reporting and recording cash overages and shortages. The discrepancy was immaterial in dollar terms but reflects a weakness in daily cash accounting controls.
Recommendation: Review the Countywide Inbound Financial Transactions Policy (#400-17) with all staff that handle cash at this location; and examine the process for reporting overages and shortages to identify how the overage was inaccurately reported.Management response: Parks, Recreation, and Natural Resources (PRNR) acknowledged the finding and committed to conducting a comprehensive review of Policy #400-17 with all cash-handling staff at Wiregrass Ranch Sports Complex, including the Food and Beverage Director, Operations Manager, and Accountant I, by June 12, 2024. PRNR also committed to examining existing overage/shortage reporting processes and implementing corrective measures including revised documentation procedures, additional training, and strengthened oversight controls, with responsibility assigned to the Food and Beverage Director or designee. - Observation 2lowpolicy
Outdated Control Form Used; Updated Form Not Filed with General Ledger
When a change fund was reopened, an outdated version of the BCC Change Fund Control Form was used instead of the current March 2023 revision. As a result, the updated control form was not on file with the Financial Services General Ledger Division. The department indicated it was unaware that a revised form had been issued, as the updated version had not been distributed to BCC Fiscal Teams or posted to the County intranet.
Recommendation: Update departmental cash handling procedures to provide guidance for submitting new or updated control forms to General Ledger in a timely manner; update Inbound Financial Transaction Policy (#400-17) to specify a time frame for submitting updated control forms to General Ledger; and ensure the most recent revision of the BCC control form template is always used.Management response: PRNR obtained the updated control form from the Clerk & Comptroller's Office on May 24, 2024, and provided it to Public Services Fiscal to update the Team Pasco intranet and remove the outdated form. PRNR also advised its Accountant I to submit all control forms to General Ledger within 5 business days of receipt. Management reported the corrective action as completed as of May 24, 2024.