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3.
Year-end audits by management not completed
.
Observation
Accounting Policies and Procedures Chapter 9.5
Change Funds
and Chapter 17.2
Petty Cash
recommend that management should perform quarterly reconciliations to ensure custodians’
report cash overages or shortages. They also require that management perform an audit at the
fiscal year-end. The auditor determined that management of two (2) of the twenty-four (24)
petty cash and change funds in our sample did not complete the required audit at fiscal year-
end. One (1) of the two (2) funds had an audit completed by management, but it was not
performed within a reasonable time period.
Recommendation
Ensure that management complies with Accounting Policies and Procedures pertaining to the
required petty cash and change fund audits.
Management Response
Follow-up discussions have occurred with the staff and management teams where current
adherence to policies and procedures were not followed.
OFM is updating the online cash management training to ensure that supervisor and
management expectations are clear and covered properly. Updates to the online training to be
completed by June 1, 2017.
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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
M a y 2 0 1 7