Unannounced Audit of Petty Cash and Change Funds, July 2019

8 | 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 3. Procedures for Copier and Printing Machines Observation Libraries and Historical Resources policies and procedures require that each fund be split into shifts, that a specific amount of change be stored in the copier and printing machine, and that the remaining balance be stored in the safe to make change for the shifts, as needed. The auditor determined that each change fund is not being counted daily at each location. Funds stored in the copier and printing machines are not completely emptied and counted daily. Instead, on a daily basis staff restores the balance in the copier and printing machine to the required balance and relies on system generated reports that state how much money should still be in the machine. Additionally, the portion of the change fund that is stored in the safe to make change for the shifts, is typically only counted on a monthly basis. Without a full count of the change fund each day, there would be no way to guarantee that the entire change fund is being accounted for. Recommendation To ensure that all cash overages and shortages are identified as they occur, the entire change fund should be counted and reconciled on a daily basis. This includes all funds stored in the copier and printing machines and all funds stored in the safes. Management Response Follow up discussions have occurred with the management teams and staff regarding change funds stored in safes. We will continue to communicate the requirement to count all change funds stored in the safes on a daily basis in order to achieve and maintain ongoing compliance with policies and procedures. Follow up discussions have occurred with the Library System management team regarding change funds stored in the copiers. Management accepts the level of risk associated with these findings, which we have assessed as minimal. To account for the operational challenges associated with the installation of the new copier and printing machines, we are working with Libraries to establish approved department level procedures which will be signed off on by the County Administrator and act as compensating controls.