Follow-Up Audit of Sarasota County Area Transit (SCAT) Bus Operations Cash Handling, December 2017

9 |  A u d i t o f S C A T B u s O p e r a t i o n s C a s h H a n d l i n g  N o v e m b e r 2 0 1 6 4. Departmental Policy and Procedures for reconciliation  Observation  It was observed that the policy and procedure for reconciling the physical cash count to the GFI  system report is not approved by the department director. The draft document includes an  acceptable 7% variance; however, management could not provide justification as to why this is  an acceptable variance. Additionally, the document does not include what to do if the variance  is larger than the acceptable amount.  Accounting Policies and Procedures, 9.2, Business Center Receipt, Balance, and Deposit of Cash,  procedures for Business Center, number 12, states that business centers are to, “Verify the  amount posted to IFAS agrees to the pink copy of the Banks Deposit Slip and to the Receipt for  Deposit of County Funds. Notify the Finance Department immediately of any discrepancies.”  Management advised that their processes do not include verification that the amount posted to  the general ledger agrees with the retained copies of the bank deposit slip and the RFDCF.  Recommendation To ensure safeguarding of the County's assets, the policy and procedure for reconciliation  processes should be reviewed and approved by the departmental director.  As the draft  document is being reviewed, management should document the basis for the 7% variance  standard. Additionally, procedures should include verification of deposits to the general ledger,  in accordance with Accounting Policies and Procedures, 9.2 Business Center Receipts, Balance,  and Deposit of Cash .    Management Response  An SOP has been revised, and approved by the department director, to reflect a 3% variance as  determined acceptable by management; also included in SOP is action to be taken when  variance is larger than the acceptable percentage.  Fiscal Manager will verify that amounts posted to GL accounts, by the Finance Department, are  consistent with Bank Deposit Slip and Receipt for Deposit of County Funds.  Verification of  allocation between fixed and express routes service will also be examined to ensure they are  posted to correct general ledger account. Expected date of implementation is November 30,  2016.