A City Council auditor’s report of the cash-handling policies of the city’s Animal Care and Protective Services Division turned up several significant issues, including almost $20,000 in cash and $3,500 in checks that are missing.
The report, released Monday, stemmed from delays in processing credit card receipts brought to the auditor’s office attention.
The delays and independent research were enough for the auditor’s office to conduct a surprise cash count on April 7, 2015. The day after, the employee in charge of processing deposits left city employment.
That twist was enough for a full audit, which spanned Aug. 31, 2013 through April 13, 2015.
A search of the employee’s office found almost $21,000 in checks and money orders that hadn’t been deposited.
City policy requires daily cash and check deposits, which the division now does, according to audit responses. The report showed the average length of time between collection and deposit was more than 11 days.
The employee who left can’t be pegged with all of the blame, said Council Auditor Kirk Sherman. Instead, there were myriad cash handling issues within the department that could have contributed. That includes employees sharing cash registers and not generally following the city’s cash-handling policies.
The auditor’s office recommends ACPS attempt to locate and deposit any revenue not deposited and determine whether any legal and/or disciplinary action is warranted for current or former employees.
There also was a payment issue where two vendors were paid twice, totaling almost $6,000. It was rectified by the vendors, who returned it or were credited.
“The city would have lost these funds if it was not for the honesty and good business practice of the vendors,” according to the report.
Also, the review found employees weren’t adhering to the city’s purchase code on numerous occasions. In one data point, 17 transactions totaling almost $88,000 were considered unauthorized because employees worked directly with vendors without approval and ended up making unauthorized purchases.
Sherman said his office took the lead on this case after working with the Office of Inspector General and State Attorney’s Office.
Lisa Green, director of investigations for the inspector general’s office, said the office has been awaiting the auditor’s report and will now review it to determine whether to open an investigation.
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