Cash and Internal Controls Audits, Countywide FY 2023-24 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- 9/10/2024 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, 2024. (5) RECOMMENDED ACTION It is recommended that the Board receive, review, and file the FY 2023-24 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 { } 4/5th's Vote Required { X } N/A (14) LOCATION MAP (15) BUSINESS IMPACT STATEMENT? (16) AGENDA ITEM HISTORY N/A N/A { } N/A Date ___8/22/2023_________ (17) ADMINISTRATIVE OFFICE REVIEW Zachary A. Lute (18) SUPERVISOR DISTRICT(S) Page 1 of 3 COUNTY OF SAN LUIS OBISPO TO: Board of Supervisors FROM: James W. Hamilton, CPA, Auditor-Controller-Treasurer-Tax Collector DATE: September 10, 2024 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, 2024. RECOMMENDATION It is recommended that the Board receive, review, and file the FY 2023-24 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, authorized the County Auditor- Controller to take on certain functions traditionally managed by the Board of Supervisors to improve the efficiency and maintain controls over cash funds. The Auditor-Controller is authorized to manage the replenishment of cash fund shortages, the transfer of overages, and can establish, adjust, or discontinue 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 2023-24 fiscal year were as follows: Department Shortages Agricultural Commissioner $ 0.60 Animal Services 5.00 Assessor 20.00 Auditor-Controller-Treasurer-Tax Collector 1,457.49 Golf 268.47 Library 197.74 Probation 4.13 Regional Parks 527.25 Total Shortages $ 2,480.68 Cash shortages primarily result from routine cash handling errors. Cash shortages to the Auditor-Controller- Treasurer-Tax Collector are primarily from mail-in payments. Department policy allows for the acceptance of shortages of up to $10 to avoid processing delays. Page 2 of 3 Routine cash overages during the 2023-24 fiscal year were as follows: Department Overages Agricultural Commissioner $ 0.05 Airports 299.00 Animal Services 16.02 Auditor-Controller-Treasurer-Tax Collector 1,399.49 Clerk-Recorder 1,701.95 District Attorney 2.43 Golf 103.69 Library 89.01 Planning 3.96 Probation 774.69 Public Health 10.13 Regional Parks 535.75 Sheriff-Coroner 0.30 Total Overages $ 4,936.47 Cash overages to the Clerk-Recorder and the Auditor-Controller-Treasurer-Tax-Collector are primarily from mail-in payments. In these instances, department policy allows for acceptance of overages of up to $10 per transaction to avoid processing delays. 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, 2024, 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 2023-24 total cash shortages amounted to $2,480.68. The shortages were replenished from department budgets. Routine cash overages amounted to $4,936.47. 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. ATTACHMENTS 1 County of San Luis Obispo Departmental Bank Accounts 6/30/2024 2 County of San Luis Obispo Cash Funds Summary 6/30/2024 Page 3 of 3 ATTACHMENT 1 COUNTY OF SAN LUIS OBISPO Departmental Bank Accounts 6/30/2024 Resolution/ Department Bank Name & Branch Account Purpose Authorized Amount Resolution Number Authorization Date Auditor-Controller-Treasurer-Tax Collector US Bank Public Administrator Fiduciary Account N/A 83-267 11-Jul-83 Auditor-Controller-Treasurer-Tax Collector US Bank Public Administrator Trust Account N/A 83-267 11-Jul-83 Auditor-Controller-Treasurer-Tax Collector US Bank Public Administrator Revolving Account $ 5,000 78-317 05-Jun-78 Auditor-Controller-Treasurer-Tax Collector US Bank Treasury Depository N/A 78-317 05-Jun-78 Auditor-Controller-Treasurer-Tax Collector US Bank 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 US Bank Electronic Funds Transfer N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector US Bank Social Services Direct Deposit N/A N/A Treasurer Auditor-Controller-Treasurer-Tax Collector US Bank Deferred Compensation N/A N/A 23-Jul-02 Auditor-Controller-Treasurer-Tax Collector US Bank Electronic Benefits Transfer N/A N/A 28-Aug-01 Auditor-Controller-Treasurer-Tax Collector US Bank U.S. Govt Loans Treas Account N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector US Bank Flexible Spending Acct N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector US Bank Elec Credit Card Payment Acct N/A N/A N/A Auditor-Controller-Treasurer-Tax Collector US Bank 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 US Bank State of California SDU Transfer Account Transfer Acct. Auditor 2-Jan-07 District Attorney US Bank Victim's Assistance Fund $ 1,000 Auditor 28-Oct-87 District Attorney US Bank Crime Detection and Civil Action $ 5,000 80-407 10-Nov-80 Health Department US Bank Public Guardian Revolving Account $ 1,500 Auditor 14-Apr-88 Health Department US Bank Public Guardian Conservatorship Estates Trust Account 83-267 11-Jul-83 Health Department US Bank Public Guardian Conservatorship Trust Account Auditor 14-Apr-88 Health Department US Bank Public Guardian Clearing Account Trust Account N/A 23-Mar-11 Health Department US Bank Public Guardian Representative Payees Trust Account N/A 05-Mar-13 Health Department US Bank ACTS Assistance Fund $ 750 Auditor 15-Feb-90 Risk Management US Bank General Liability Payments Revolving Account $ 200,000 2004-238 20-Jul-04 Risk Management US Bank Workers Compensation Payments Revolving Account $ 410,000 2004-124 27-Apr-04 Sheriff-Coroner US Bank Custody Release (not an imprest acct) Auditor 03-Oct-08 Sheriff-Coroner US Bank Civil Division Revolving Account $ 6,000 Auditor 30-Apr-99 Social Services US Bank Immediate Need Assistance Revolving Fund - W $ 50,000 Auditor 03-Oct-89 Social Services US Bank Immediate Need Services Revolving Fund - G $ 50,000 Auditor 17-Oct-90 Total $ 729,250 Page 1 of 1 ATTACHMENT 2 COUNTY OF SAN LUIS OBISPO Cash Funds Summary Report 6/30/2024 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 (a) Change Fund & Petty Cash Information Technology $ 1,000 Petty Cash Law Library $ 100 Change Fund Library $ 1,340 Change Fund & Petty Cash Parks and Recreation $ 7,325 Change Fund Probation $ 800 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 $ 29,190 (a) The Health Agency could not verify $50 of the funds. The department is actively investigating its whereabouts as of August 5, 2024. Page 1 of 1