Audit Division

Audit Summary

 

Department of Conservation and Natural Resources

Division of Water Resources

LA02-16

 

Results in Brief

 

            The Division of Water Resources has taken strong action to correct problems noted in our prior audit and to improve its financial administration practices.  As a result, transactions were carried out in accordance with applicable state laws, regulations, and policies.  However, the Division can strengthen its financial administration by improving the deposit process.  The current process does not provide adequate safeguards.  As a result, there is an increased risk of loss or unauthorized use of the stateís assets.

Principal Findings

 

                    The Divisionís deposit process does not adequately safeguard cash collections.  When cash is received, it is receipted and recorded by Division personnel and transferred to the Department of Conservation and Natural Resources Directorís Office for deposit.  As a result, at least five employees handle cash before it is deposited.  In addition, cash is originally placed in a safe and then stored in a locked filing cabinet pending deposit.  (page 5)

 

 


Department of Conservation and Natural Resources

Division of Water Resources

 

Agency Response

to Audit Recommendations

 

Recommendation

Number

 

Accepted

 

Rejected

 

 

 

 

 

1

Reduce the number of employees involved in the deposit process.

X

 

 

 

 

 

 

 

2

Revise cash receipting procedures to have Division personnel prepare deposits rather than the Directorís Office.

X

 

 

 

 

 

 

 

 

      TOTALS

2

 

0