BCC: Unannounced Cash Count – Public Services and County Attorney – Dated May 18, 2021

Summary

5 findings

1. Finding 1mediumcash handling

   Safe left unsecured and unattended at Hudson Regional Library

   On January 29, 2021, auditors found the safe at Hudson Regional Library open and unattended, with the change fund drawer inside unsecured. Administrative Directive #45 requires safes to be locked immediately after use and never left unlocked. The error was discovered by auditors and immediately corrected by the manager on duty.

   Recommendation: Since compliance with policies and procedures is expected, no additional recommendation was provided beyond expected adherence.
   Management response: The staff member who failed to secure the safe was identified and disciplinary reviews were provided. Safe security policies were reiterated via email, in person, and in a staff meeting. Supervisors now monitor the safe multiple times throughout the day. Target implementation date: January 29 – February 15, 2021.
2. Finding 2mediumcash handling$20

   Change drawer short $20 at Animal Services Adoption Center

   During the February 2, 2021 cash count at the Animal Services Adoption Center, the change fund was short $20. Staff were aware of the shortage but could not identify when or how it occurred, and the Animal Services Director had not been formally informed prior to the IG bringing it to their attention on February 3, 2021. The shortage was suspected to have occurred on December 19, 2020 due to incorrect change given and improper closing verification. Documentation of the shortage and a timely police report could not be provided; an incident report was filed instead.

   Recommendation: Since compliance with policies and procedures is expected, no additional recommendation was provided beyond expected adherence to reporting requirements under Administrative Directives #45 and #53.
   Management response: Animal Services concurred with findings via memorandum AS21-0024. The $20 shortage was not located. Counseling and additional training on cash handling policies was provided to the customer service team and documented. A revised Cash Handling Policy including a cash receipting verification process was drafted for IG and Financial Services review. Target implementation date: March 10, 2021.
3. Finding 3lowcash handling

   Locked inaccessible drawer found inside Land O' Lakes Library safe

   On February 4, 2021, auditors discovered a locked drawer/compartment within the Land O' Lakes Library safe that could not be accessed because no key existed. The branch manager was unaware the drawer existed until auditors identified it. All safe compartments should be accessible at any time to ensure proper safeguarding of assets.

   Recommendation: Source or make a replacement key for the locked drawer, or remove and replace the lock.
   Management response: A work order for a locksmith was placed on February 6, 2021 and completed on February 10, 2021. The drawer was found to be empty. Two sets of keys are now kept in the Land O' Lakes Library lockbox. Target implementation date: Completed February 10, 2021.
4. Finding 4mediumcash handling

   Daily cash collections and unsealed deposit stored unsecured at Veterans Memorial Park

   During the January 29, 2021 unannounced cash count at Veterans Memorial Park, auditors found that day's cash collections and an unsealed deposit from the prior day were stored in an unlocked cabinet drawer inside an unlocked office. This violated the requirement to secure all cash and checks in a locked safe, filing cabinet, or cash box at all times.

   Recommendation: Revise policies and procedures to explicitly address storage and security of daily collections separate from the change fund during operations, and train staff on proper procedures for sealing and storing deposits until taken to the bank.
   Management response: Parks, Recreation, and Natural Resources acknowledged the existing Cash/Check Receipt Policy language was insufficient and committed to updating the policy to require all cash and checks to be locked in a safe, filing cabinet, or cash box at all times, including undeposited funds from prior days. Staff will be trained on the revised policy. Target implementation date: April 2021.
5. Observation 5mediumpolicy$750

   Undocumented cat trap rental program holding nine unprocessed customer checks

   On February 2, 2021, auditors found a binder inside the Animal Services Adoption Center safe containing nine customer checks totaling $750 associated with an informal cat trap rental program. The program lacked documented policies and procedures; some customers received traps without a contract or deposit, checks dated as far back as late 2019 had not been processed even though associated traps were reportedly not returned, and one check had no associated contract. The program was operating without formal approval or oversight.

   Recommendation: Forward all policies, procedures, requisite forms, and contracts for the cat trap rental program to the Department of Inspector General and Financial Services for review prior to reimplementing the program.
   Management response: Management concurred. The Cat Trap Rental Program was temporarily discontinued due to improper check handling, insufficient oversight, and lack of written policies. All checks were returned to issuers or shredded at their request, with two remaining checks sent by certified mail. A new Cat Trap Assistance Program policy covering both TNVR programs is being drafted to include inventory management, documentation of trap loss/destruction/repair, and tracking via Petpoint Shelter Management software. The draft policy will be submitted to the IG for review. Target implementation date: March 24, 2021.