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

5. Mail receipts Current Status, Follow-Up Audit dated July 2017: While onsite, at the SCAT Administration building on June 14, 2017, the auditor observed ten (10) checks totaling $94,721.54 secured in a locked box in a locked file cabinet, as required. However, eight (8) of the checks were dated from May 15, 2017 through June 13, 2017, one check was dated March 14, 2017, and one check dated December 8, 2015 (which was the same check noted in the original audit). Accounting Policies and Procedures, Chapter 9.2 Business Center Receipt, Balance, and Deposit of Cash , requires daily deposits of cash and checks, as well as checks to be stamped “For Deposit Only” when they are received. The checks observed were not deposited timely and none of the checks were stamped, as required. Original Audit Observation, Report dated September 2016: The Clerk of the Court and County Comptroller Accounting Policies and Procedures, Chapter 9.2 Business Center Receipt, Balance, and Deposit of Cash states the following: x “Management is responsible for ensuring cash and checks are deposited daily.” x “Stamp all checks received with the For Deposit Only Stamp. Notify Clerk Finance Department when requesting a stamp for the first time or if a replacement stamp is needed.” While onsite at the SCAT Administration building on June 1, 2016, the auditor observed eleven (11) checks totaling $39,126.84 secured in a locked box in a locked file cabinet. Ten (10) of the checks were dated from May 2, 2016 through May 18, 2016, with one $40.00 check dated December 8, 2015. The Fiscal Specialist advised that they were working with the payee to determine the purpose of the $40.00 payment before processing. None of the checks were stamped “For Deposit Only”, which is required by Accounting Policies and Procedures, Chapter 9.2 Business Center Receipt, Balance, and Deposit of Cash . Currently, mail is retrieved daily under dual control from the onsite locked mail box. SCAT management advised that if mail cannot be processed immediately, it is secured under dual control, meaning that one individual has a key to the file cabinet and another individual has a key to the locked box. Since the Financial Specialist records mail receipts, prepares the deposit, and distributes the bus pass inventory, dual control is in place as a mitigating control for processing of mail receipts. SCAT has an appropriate staff member assigned dual control responsibilities; however, the auditor was advised that there is a recurring issue with the availability of that individual to perform this task due to other responsibilities. As SCAT employees do not process mail receipts without dual control, the absence of a reliable dual 7 | 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