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

6 | A u d i t 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 S e p t e m b e r 2 0 1 6 1. Policies and Procedures for performing, reconciling, and tracking physical inventories of bus passes Observation Certain bus passes procured by SCAT are received encoded with value already added (Single Ride, Regional Card, Express Pass, Liberty Pass, 30-Day Pass). The remaining inventory is encoded by SCAT as needed. During the audit, it was noted that there are no policies and procedures in place for performing and tracking physical inventories. As a result, physical inventories and reconciliation to records were not being performed. Additionally, inventory records were not being updated for the removal and addition of bus passes. SCAT performed a physical inventory of all bus passes in September 2015 at the time the department was centralizing the storage of inventory. Results of the inventory were documented and records were manually updated whenever passes were removed or added through January 2016. Inventory records have not been updated since that time, nor has a physical inventory been performed. Recommendation To ensure safeguarding of county assets, SCAT should perform and document a physical inventory of bus passes immediately. Additionally, policies and procedures should be developed and implemented to provide guidelines on inventory management, including but are not limited to, the frequency of performing physical inventories, who is responsible for reconciling to the inventory records, and processes for updating inventory records for the removal and addition of bus passes. Management Response Physical Inventory conducted 8/16/16 by the following SCAT staff: Fiscal Manager Marketing, Outreach, & Customer Service Administrative Assistant Follow up Inventory conducted 8/19/16 by the following SCAT staff: Fiscal Manager IT Professional Follow up Inventory was conducted to compare IT professional’s spreadsheet, developed to track pass inventory, to actual inventory in pass cabinet.