Follow-Up of Sarasota County Area Transit (SCAT) Bus Pass Inventory and Revenue, December 2017

Open/Partially completed Conditions and Pending Corrective Action Three (3) of the seven (7) conditions indentified in the original report were partially addressed, but require additional management attention. 1. Policies and Procedures for performing, reconciling, and tracking physical inventories of bus passes Current Status, Follow-Up Audit dated July 2017: SCAT management has developed written procedures for inventory management. They include processes for recording the addition of new inventory, the removal of inventory, and the returning of inventory; however, do not provide guidance on recording the location to which removed inventory is distributed. Additionally, while the procedures state that specific SCAT personnel are responsible for recording the addition of new or return of unused inventory in the computer database, those individuals advised that they do not have access to the electronic record. Audit testing detected the following areas of non-compliance with the written procedures: x The manual logging sheet developed and used to record inventory removal: o Lacks evidence of the required dual control (two signatures) for the removal of inventory in 12 of 132 records, and, o Does not include logging activity for the period March 10, 2017, through April 13, 2017. x Physical inventories and reconciliation to the records: o Are not conducted monthly, as required by SCAT policies and procedures (SCAT management advised that physical inventories were conducted August 19, 2016, November 16, 2016, January 23, 2017, and March 17, 2017), o Are not consistently supported with retention of results (documentation for November and January inventories and reconciliation not retained), and, o Did not account for an entire box of pre-encoded inventory (1,000 tickets valued at $50,000.) Upon review of system logging reports, it was determined that 899 of the 1,000 tickets have been used; however, sales records were identified for only 434 of the 1,000 tickets. Additionally, the sales records appear to be unreliable due to 14 ticket numbers being listed twice in the sales records. 10 | F o l l o w - u p o f S C A T B u s P a s s I n v e n t o r y a n d R e v e n u e D e c e m b e r 2 0 1 7