Unannounced Audit of Petty Cash and Change Funds, July 2019

3 | U n a n n o u n c e d A u d i t o f P e t t y C a s h a n d C h a n g e F u n d s J u l y 2 0 1 9 Background and Objectives The Clerk of the Circuit Court and County Comptroller’s Internal Audit Department and Office of the Inspector General has completed an unannounced audit of the County’s petty cash and change fund. The audit was planned and conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards) . Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The purpose of the audit was to review internal controls, evaluate compliance with applicable policies and procedures, and reconcile petty cash and change funds. Background Internal Audit completed an unannounced audit of the County’s petty cash and change funds in July 2018, identifying five opportunities for improvement. In that audit, a sample of 24 of the 48 petty cash and change funds totaling $13,023 in existence at that time was tested for compliance with the Accounting Policies and Procedures, Chapter 17.2 Petty Cash and Chapter 9.5 Change Funds . Chapter 17.2 Petty Cash provides the policy for establishing and making purchases from a petty cash fund. The document indicates that petty cash funds are established for the purpose of handling cash expenditures of a minor nature and are limited to purchases of $100 or less. Chapter 9.5 Change Funds indicates that change funds are established for the purpose of making change where money is collected during transactions of County business. Unannounced cash counts and cash control evaluations are continuous audits performed by the Internal Audit Department. Accordingly, an unannounced cash count was completed in February 2019, which included 25 of the 49 petty cash and change funds totaling $12,573 as of September 30, 2018, located within various departments throughout the County.