Cash and Internal Controls Audits, Farm Advisor November 2013 Cash and Internal Controls

COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS AGENDA ITEM TRANSMITTAL (1) DEPARTMENT (2) MEETING DATE (3) CONTACT/PHONE Auditor -Controller - 3/18/2014 Kerry Bailey 788-2979 Treasurer -Tax Collector (4) SUBJECT Submittal of a cash procedures and intemal control rel.iew of the I; arm Adl.isor's Office conducted on November 20, 2013. (All Districts) (5) RECOMMENDED ACTION It is recommended that the Board receive, rel.iew, and file the Farm Adl.isor's Office cash procedures rel.iew. (6) FUNDING (7) CURRENT YEAR (8) ANNUAL FINANCIAL (9) BUDGETED? SOURCE(S) FINANCIAL IMPACT IMPACT Yes N/A $0.00 $0.00 (10) AGENDA PLACEMENT {X} Consent { } Presentation { } Hearing (Time Est._) { } Board Business (Time Est._) (11) EXECUTED DOCUMENTS {} Resolutions { } Contracts { } Ordinances {X} N/A (12) OUTLINE AGREEMENT REQUISITION NUMBER (OAR) (13) BUDGET ADJUSTMENT REQUIRED? BAR ID Number: N/A { j_4 /5 Vote Required {X} N/A (14) LOCATION MAP (15) BUSINESS IMPACT STATEMENT? (16) AGENDA ITEM HISTORY N/A No { } N/A Date: October 25 2Q j j (17) ADMINISTRATIVE OFFICE REVIEW :Nikki ]. s climiat (18) SUPERVISOR DISTRICT(S) All Districts - Page 1 of 2 CountyofSan Luis Obispo TO: Board of Supei"\Asors FROM: James P. Erb, Auditor - Controller -Treasurer -Tax Collector DATE: 3/18/2014 SUBJECT: Submittal of a cash procedures and internal control rel.iew of the Farm Advisor's Office conducted on November 20, 2013. (All Districts) RECOMMENDATION It is recommended that the Board receive, rel.iew, and file the Farm Advisor's Cash Office Procedures Rel.iew. DISCUSSION Cash handling can be an area wlnerable to mistakes or misappropriation. The Auditor-Controller has developed policies to minimize the risk associated with use of change funds and petty cash as well as cash receipts. Additionally, County computers are wlnerable to abuse, and County Information Technology has developed policies to minimize the risk associated with misuse of County computing assets. The objective of our rel.iew was to determine compliance with the County Auditor-Controller's Cash Handling Policy, to establish accountability for the cash on hand at the time of the count, and to determine compliance with the County IT Acceptable Use Policy Acknowledgement signature requirements. We determined all cash funds and cash receipts on hand, in all material respects, to be in balance at the time of our count, and that the Farm Adl.isor's Office is in general compliance with the Cash Handling Policy. Also, Farm Adl.isor employees signed the Information Technology Acceptable Use Policy Acknowledgement form in a timely manner. OTHER AGENCY INVOLVEMENT/IMPACT None. FINANCIAL CONSIDERATIONS There is no additional cost to the County for conducting unannounced cash rel.iews. Periodic unannounced cash rel.iews are a post of the Auditor-Controller-Treasury-Tax Collector's compliance with Government Code 26881 and 26883. RESULTS The Auditor-Controller-Treasurer-Tax Collector's program of periodic unannounced reliews of cash procedures and other internal controls helps maintain and improve internal controls and procedures for cash handling by County staff and contributes to the County's l.ision of a well-governed community. ATTACHMENTS 1. Farm Adl.isor Final Report November 20, 2013 Page 2 of 2 COUNTY OF SAN LUIS OBISPO JAMES P. ERB, CPA Audltor·Controller AUDITOR • CONTROLLER • TREASURER • TAX COLLECTOR Treasurer-Tax Collector POST OFFICE BOX 1149 James W. Hamilton, CPA SAN LUIS OBISPO, CA 93406-1149 Assistant (80S) 781 -S831 • FAX (805) 781 -5362 http://sloacttc.com f TO: MARY BIANCHI, COUNTY DIRECTOR AND HORICULTURE FARM ADVISOR COLLECT~Ro FROM: JAMES P. ERB, CPA, AUDITOR-CONTROLLER-TREASURER-TAX i (;l 1 DATE: MARCH 5, 2014 SUBJECT: CASH PROCEDURES REVIEW OF FARM ADVISOR CONDUCTED ON NOVEMBER 20, 2013. Purpose The purpose of our review was to determine compliance with the County Auditor-Controller's Cash Handling Policy and to establish accountability for the cash on hand at the time of the count, and to determine compliance with the County IT Acceptable Use Policy Acknowledgement signature requirements. Scope Our review included physically counting all cash on hand for November 20, 2013 and reconciling the amount to the department's accountability figures. We examined cash receipts and compared the amounts to the corresponding receipt totals and to the subsequent deposit. Our review also included an evaluation of internal controls over cash receipts. Our evaluation of internal controls was limited to inquiries of departmental staffand direct observations. Additionally we tested for compliance with the County of San Luis Obispo Information Security Program's requirement that employees annually sign the Acceptable Use Policy Acknowledgement form. Results We determined all cash funds and cash receipts on hand, in all material respects, to be in balance at the time of our count, the department Is in general compliance with the Cash Handling Policy, and the employees signed the Information Technology Acceptable Use Policy Acknowledgement form in a timely manner. We appreciate the courteous attitude of your staff and the cooperation we received during the course of our review. Page 1 of 1