Cash and Internal Controls Audits, Countywide FY 2021-22 Cash Shortages and Overages

COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS AGENDA ITEM TRANSMITTAL (1) DEPARTMENT (2) MEETING DATE (3) CONTACT/PHONE Auditor-Controller- 9/13/2022 Kari Lekvold 805-781-4846 Treasurer-Tax Collector (4) SUBJECT Submittal of the Annual Cash Shortages and Overages Report and the Departmental Bank Accounts and Cash Funds Listings for the fiscal year ended June 30, 2022. All Districts. (5) RECOMMENDED ACTION It is recommended that the Board receive, review, and file the FY 2021-22 Cash Shortages and Overages Report and the Department Bank Accounts and Cash Fund Listings. (6) FUNDING SOURCE(S) (7) CURRENT YEAR FINANCIAL (8) ANNUAL FINANCIAL (9) BUDGETED? N/A IMPACT IMPACT Yes $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 N/A { } 4/5th's Vote Required { X } N/A (14) LOCATION MAP (15) BUSINESS IMPACT STATEMENT? (16) AGENDA ITEM HISTORY N/A No { } N/A Date _________8/10/21_______ (17) ADMINISTRATIVE OFFICE REVIEW Zachary A. Lute (18) SUPERVISOR DISTRICT(S) All Districts Page 1 of 4 COUNTY OF SAN LUIS OBISPO TO: Board of Supervisors FROM: James W. Hamilton, CPA, Auditor-Controller-Treasurer-Tax Collector DATE: September 13, 2022 SUBJECT: Submittal of the Annual Cash Shortages and Overages Report and the Departmental Bank Accounts and Cash Funds Listings for the fiscal year ended June 30, 2022. All Districts. RECOMMENDATION It is recommended the Board receive, review, and file the FY 2021-22 Cash Shortages and Overages Report and the Department Bank Accounts and Cash Fund Listings. DISCUSSION The Board of Supervisors, Resolution Number 84-40 dated January 24, 1984, directs the County Auditor-Controller to perform certain functions of the Board pertaining to the approval of cash shortages, reporting of cash shortages and overages; and the establishment and discontinuance of cash funds including cash difference funds and revolving funds. The resolution also directs the County Auditor-Controller to make an annual report to the Board concerning the above matters. This report is rendered in accordance with the provisions of Government Code Section 29370.1 and Board of Supervisors' Resolution Number 84-40. The shortages listed have been reviewed and approved by the County Auditor-Controller-Treasurer-Tax Collector’s (ACTTC) Office. Approval of cumulative cash shortage replenishments during the 2021-22 fiscal year were as follows: Department Shortages Agricultural Commissioner $ 5.80 Animal Services 106.28 Auditor-Controller-Treasurer-Tax Collector 1,673.84 Golf 497.46 Library 35.00 Public Health 16.00 Regional Parks 310.94 Total Shortages $ 2,645.32 Page 2 of 4 Cash shortages primarily result from routine cash handling errors. Tax-Collector shortages are primarily from mail- in payments and department policy allows for the acceptance of shortages of up to $10 in order to avoid processing delays. Routine cash overages during the 2021-22 fiscal year were as follows: Department Overages Agricultural Commissioner $ 0.02 Airports 3,135.96 Animal Services 171.65 Auditor-Controller-Treasurer-Tax Collector 1,140.42 Clerk-Recorder 2,166.23 District Attorney 9.09 Golf 45.48 Library 1.47 Probation 990.20 Public Health 15.00 Regional Parks 223.11 Total Overages $ 7,898.63 All cash overages were determined to be routine in nature. Cash overages to the Clerk-Recorder and the Tax- Collector are primarily from mail-in payments. Probation reported overages of $990.20 which is primarily due to overpayments of less than $10 on court-ordered debts. In these instances, department policy allows for acceptance of overages of up to $10 per transaction in order to avoid processing delays. In addition, Airports reported overages of $3,135.96 for FY 2021-22. This is primarily due to the inability of parking kiosks to give change. In addition to the cash overages and shortages, we are submitting complete listings of approved Departmental Bank Accounts and Cash Funds as of June 30, 2022, as required by Resolution Number 84-40. OTHER AGENCY INVOLVEMENT/IMPACT All County departments with imprest funds and/or bank accounts participate in the review of funds and the compilation of our report. FINANCIAL CONSIDERATIONS FY 2021-22 total cash shortages amounted to $2,645.32. The shortages were replenished from department budgets. Routine cash overages amounted to $7,898.63. RESULTS ACTTC unannounced cash counts, policies on cash shortages and overages, and annual reports help minimize cash handling errors, enhance accountability, and contribute to the County’s vision of a well-governed community. Page 3 of 4 ATTACHMENTS 1. County of San Luis Obispo Departmental Bank Accounts 6/30/22 2. County of San Luis Obispo Cash Funds Summary 6/30/2022 Page 4 of 4 ATTACHMENT 1 COUNTY OF SAN LUIS OBISPO Departmental Bank Accounts 6/30/2022 Resolution/ Department Bank Name & Branch Account Purpose Authorized Amount Resolution Number Authorization Date Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Public Administrator Fiduciary Account N/A 83-267 11-Jul-83 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Public Administrator Trust Account N/A 83-267 11-Jul-83 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Public Administrator Revolving Account $ 5 ,000 78-317 05-Jun-78 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Treasury Depository N/A 78-317 05-Jun-78 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Treasury Credit Card Depository N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector USB Bank Securities Custody Account N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Electronic Funds Transfer N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Social Services Direct Deposit N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Deferred Compensation N/A N/A 23-Jul-02 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Electronic Benefits Transfer N/A N/A 28-Aug-01 Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. U.S. Govt Loans Treas Account N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Flexible Spending Acct N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Elec Credit Card Payment Acct N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector MUFG Union Bank, N.A. Controlled Disbursement Account N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector Pacific Western Bank Treasury Depository (Cash and Check Concentration) N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector Pacific Premier Bank PIMMA N/A N/A 20-Jul-12 Auditor-Controller-Treasurer-Tax Collector Pacific Western Bank PIMMA N/A N/A 10-Sep-12 Auditor-Controller-Treasurer-Tax Collector Five Star Bank PIMMA N/A N/A 14-Dec-16 Auditor-Controller-Treasurer-Tax Collector Five Star Bank Insured Cash Sweep Account N/A N/A N/A Child Support Services Union Bank State of California SDU Transfer Account Transfer Acct. Auditor 2-Jan-07 District Attorney Union Bank Victim's Assistance Fund $ 1 ,000 Auditor 28-Oct-87 District Attorney Union Bank Crime Detection and Civil Action $ 5 ,000 80-407 10-Nov-80 Health Department Union Bank Public Guardian Revolving Account $ 1 ,500 Auditor 14-Apr-88 Health Department Union Bank Public Guardian Conservatorship Estates Trust Account 83-267 11-Jul-83 Health Department Union Bank Public Guardian Conservatorship Trust Account Auditor 14-Apr-88 Health Department Union Bank Public Guardian Clearing Account Trust Account N/A 23-Mar-11 Health Department Union Bank Public Guardian Representative Payees Trust Account N/A 05-Mar-13 Health Department Union Bank ACTS Assistance Fund $ 7 50 Auditor 15-Feb-90 Risk Management JP Morgan Chase General Liability Payments Revolving Account $ 2 00,000 2004-238 20-Jul-04 Risk Management Union Bank Workers Compensation Payments Revolving Account $ 3 00,000 Auditor Jun-15 Sheriff-Coroner Union Bank of California Custody Release (not an imprest acct) Auditor 03-Oct-08 Sheriff-Coroner Union Bank Civil Division Revolving Account $ 6 ,000 Auditor 30-Apr-99 Sheriff-Coroner Union Bank GovPay Credit Card Transfer (not an imprest acct) Auditor 01-Jul-11 Social Services Union Bank Immediate Need Assistance Revolving Fund - W $ 50,000 Auditor 03-Oct-89 Social Services Union Bank Immediate Need Services Revolving Fund - G $ 50,000 Auditor 17-Oct-90 Total $ 619,250 Page 1 of 1 ATTACHMENT 2 COUNTY OF SAN LUIS OBISPO Cash Funds Summary Report 6/30/2022 Department Amount Fund Purpose Administrative Office $ 100 Change Fund Agricultural Commissioner $ 675 Change Fund & Petty Cash Airports $ 100 Change Fund Animal Services $ 850 Change Fund & Petty Cash Assessor $ 150 Change Fund & Petty Cash Auditor-Controller-Treasurer-Tax Collector $ 1,650 Change Fund, Petty Cash, & Shortage Reimbursement Fund Child Support Services $ 200 Change Fund & Petty Cash Clerk-Recorder $ 950 Change Fund & Petty Cash District Attorney $ 200 Change Fund & Petty Cash Health Agency $ 3,350 Change Fund & Petty Cash Information Technology $ 1,000 Petty Cash Law Library $ 100 Change Fund Library $ 1,160 Change Fund & Petty Cash Parks and Recreation $ 6,175 Change Fund Planning and Building $ 450 Change Fund & Petty Cash Probation $ 1,200 Change Fund & Petty Cash Public Works $ 400 Change Fund & Petty Cash Sheriff-Coroner $ 10,050 Change Fund, Petty Cash, & Investigative Fund Social Services $ 250 Petty Cash Veteran's Services $ 100 Petty Cash Total $ 29,110 Page 1 of 1