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Segregation of duties requirement
.
Observation
Accounting Policies and Procedures Chapter 9.5
Change Funds
state that “
only the person
designated the custodian is permitted access to the change fund, unless compensating controls
are established per Office of Financial Management (OFM) approved department level
procedures and authorized by the Finance Department of the Clerk of Circuit Court & County
Comptroller.
” A sample of 24 change and petty cash funds were selected and an unannounced
cash count was performed. During the count, it was noted that five (5) funds were accessible to
individuals other than the designated custodian. See Appendix A: Segregation of Duties.
Management advised during the prior audit that compensating controls would be developed
and presented to the Comptroller for review and approval. Management has implemented
compensating controls via standard operating procedures for change funds and the procedures
have been submitted to the Finance Department, however, they have not been authorized by
the Finance Department as of the completion of this audit.
Recommendation
To ensure a proper segregation of duties, mandate compliance with the Accounting Policies and
Procedures, Chapters 9.5.
Management Response
To account for the department-level operational restrictions in various areas, compensating
control procedures have been developed and presented to the Finance Department. We are
currently awaiting their review and approval.
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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
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