INTERNAL AUDIT REPORT 2011-09

KincaidOutdoorCenterCashControls ParksandRecreationDepartment July 12,20II

OF ANCHORAGE MUNICIPALITY Internal Audit Department 632 W 6th Avenue,Suite600 P . O .B ox 1 9 6 6 5 0 Anchorage,Alaska 99519-6650 http://www.muni.org/audit

OFFICE OF THE INTERNAL AUDITOR PeterRaiskums,CIA, CFE, CGFM Director Phone: (907) 343-4438 Fax: (907) 343-4370 E-Mail: [email protected]

OF AIVCHORAGE M UNICIPALITY Phone:907-343-4438 Fax:907-343-4370

Auditor Officeof the Internal 632W. 6tnAve..Suite600 Mayor Dan Sullivan

July 12,20L1,

Honorable Mayor and Members of the Assembly: I am pleasedto presentInternal Audit Report 2011-09,Kincaid Outdoor Center Cash Controls, Parks and Recreation Department for your review. A brief summary of the report is presented below. In accordancewith the 201lAudit Plan, we have completedan audit of the Kincaid Outdoor Center CashControls. The objective ofthis audit was to determineifthe Kincaid OutdoorCenterhadproper cashcontrols in place and ifthese controls were in compliancewith Municipal Policy andProcedure 24-1, Collecting,Securing,Depositing and Reporting Cash.Our audit included a surprisecashcount and a review of cashconfrols.h addition, we selecteda sampleof cashreceiptsandreviewedbackup documentationfor complianceand accuracy.Finally, we reviewedpermit andclassdocumentationto determine if the Kincaid Outdoor Center had properly accountedfor revenue. Basedon our review, we determinedthat cashconfrol proceduresat the Kincaid OutdoorCenterwere generally satisfactory and revenue was properly accounted for. However, the safe key and combination were not properly securedand a $100 changefund was short SZZ. There was one finding in connection with this audit. Managementwas responsiveto the finding and recommendation.

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PeterRaiskums,CIA, CFE Director, Internal Audit

OF AITICHORAGE M UNICIPALITY Phone:907-343-4438 Fax: 907-343-4370

Auditor Officeof the Internal 632w. 6'nAve.,Suite600 Mayor Dan Sullivan

July12,20Lt

Internal Audit Report 2011-09 Kincaid Outdoor Center Cash Controls Parks and Recreation Department Introduction. The Parks and RecreationDepartrnent(Department) overseesthe activities of the Kincaid Outdoor Center (Center) locatedin Kincaid Park (Park). The Center and adjacentgrounds can be rented for a variety of servicesincluding picnics, parties,weddings, receptions,barbeques, meetings and sporting events.Rental feesvary dependingon the rented area,duration ofuse, number ofpeople, equipmentused and whether alcohol is served.

The Park consistsof 1,400acresof park land with about 37 miles of trails to run, bike, walk, hike or ski. Many programs and events areheld throughout the year at the Park and feesmay be chargedfor senricessuch as park use, equipmentrental, and insbuctional programs.

Obiective and Scope. The objective of this audit was to determineif the Center had proper cash controls in place and if these controls were in compliance with Municipal Policy and Procedure (P&P) 24-I, Collecting,Securing,Depositing and Reporting Cash.Ornaudit includeda styprisecash coturt and a review of cashconfiols. h addition, we selecteda sampleof cashreceiptsand reviewed backup documentation for compliance and accuracy. Finally, we reviewed permit and class documentation to determine if the Center had properly accountedfor revenue.

The audit was conducted in accordancewith generally acceptedgovenrment auditing standards, except for the requirementof an externalquality confol review, and accordingly, included testsof accorurting records and such other auditing procedures as we considered necessary in the circumstances.The audit was requestedby the Administration.

Overall Evaluation. Cashconffol proceduresat the Centerwere generallysatisfactoryand revenue was properly accountedfor. However, the safekey and combinationwere not properly securedand a $100 changefund was short $22.

InternalAudit Report201l-09 Kincaid OutdoorCenterCashControls ParksandRecreationDepartment J uly12,201I

FII\IDINGS AI\D RECOMMENDATIONS 1.

Cash Control ProceduresNot Alwavs in Compliance With P&P 24-1.

a.

Findins. Cashcontrol proceduresat the Centerdid not alwayscomply with P&P 24l. Non-compliance with applicable policies and proceduresmay weaken the cash conhol environmentand may result in possibleirregularities.Specifically,we found the following:

Safe Key and Combination Not Secured - The safekey and combination were not properly secured.Specifically, the safe key was found in a basket sitting on top of a microwave oven, which was abovethe safe.The key was attachedto a large key ring that said "Safe Key'' on it. In addition, the safe combinationwas found in an unlockedbox mountedon awall abovethe safe. According to Centerstaffthe safekeywas left in the basketovernight andthe box was never locked.

Change Fund Not Safeguarded - During a follow-up surprisecash count we found that a $ 100changefund, recentlyplacedin the safe,was short $22. Staff were unableto explain why the changefund was short $22. b.

Recommendation. The Department'sDirector shouldensgrethat cashcontols at the Centercomply with P&P 24-1.

c.

Management Comments. Managementstated,"Managementconcursandhastaken immediate stepsto correct deficiencies,redefine roles of staff, and requirementsto meetP&P 24-l;'

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InternalAudit Report201l-09 Kincaid OutdoorCenterCashControls Padc ud Recreationnepartrnent July l2,20ll

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Evaluation ofManasementComments.Management conrments werereqponsive to

ilr*-***randrecommendation. DiscussionWith ResnonsibleOIIiciaIs. The resultsof this auditwerediscussedwith appropriate Mnnicipalofficialson June3,201t. Audit Staff: Jayi Schin

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