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

Open Conditions and Pending Corrective Action Three (3) of the seven (7) conditions indentified in the original report remain open and continue to require management attention. 4. Policies and Procedures for third party agencies selling bus passes on consignment Current Status, Follow-Up Audit dated July 2017: SCAT has developed and implemented procedures for third party agencies selling bus passes on consignment. However, the procedures did not address the: x approval process for third party agencies for consignment of bus passes, x payment terms with each third party in writing, and x chain of custody when passes are provided. SCAT management advised that there are currently five agencies that have been provided bus passes for sale on a consignment basis. There are no written consignment agreements with any of the agencies to document payment terms and no chain of custody documents or sufficient records to track what inventory has been made available for sale for each location. One location has not been invoiced or made a payment since May 2016. Original Audit Observation, Report dated September 2016: SCAT provides bus passes to third party agencies throughout the county for sale to citizens. The auditor was provided a list of eight third party agencies that are provided bus passes on a consignment basis. Payment by these eight entities is not made to SCAT until after the bus passes are sold. There is no policy or procedure for these consignment-type sales, nor is there consistency in how the payment from these eight third parties is handled. No written agreements between SCAT and the third parties exist and revenue is not recorded until payment is received. Additionally, it was noted that when delivery is made to a third party agency, there is no documentation of the chain of custody for the bus passes. The following was detected during the audit: x One third party contacts SCAT approximately once a year to inform SCAT that they have accumulated a specific dollar amount for bus pass sales. Since there are no records maintained by SCAT to determine the amount due, an invoice is generated for the amount the third party provides. 5 | 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