Unannounced Audit of Petty Cash and Change Funds, July 2018

6 |  U n a n n o u n c e d A u d i t o f P e t t y C a s h a n d C h a n g e F u n d s  J u l y 2 0 1 8 1. Segregation of duties requirement Observation  Accounting Policies and Procedures, Chapter 9.5 Change Funds and Chapter 17.2 Petty Cash  state that “only the person designated the custodian is permitted access to the change fund,  unless the use of compensating controls are authorized by the Finance Department of the Clerk  of Circuit Court and County Comptroller.” A sample of 24 change and petty cash funds were  selected and an unannounced cash count was performed for each one. During the counts, it  was noted that 10 funds (42% of the sample tested) were accessible to individuals other than  the designated custodian. (See Appendix A: Segregation of Duties)  Management advised during the prior audit that to account for the department‐level  operational restrictions in various areas, compensating control procedures had been developed  and submitted to the Finance Department for approval. During the audit work, no evidence of  approval by the Finance Department for exemptions to Accounting Policies and Procedures was  provided.  Recommendation To ensure a proper segregation of duties, mandate compliance with the Accounting Policies and  Procedures, Chapters 9.5 and 17.2.  Management Response  To account for the department level operational challenges, procedures shall be submitted by  each eligible department for review and approval by the Clerk Finance Department. We are  currently waiting for the Clerk Finance Department to finalize a mechanism so that  Management can submit department level compensating controls for approval.