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Agenda Item
ASR
Control 19-000864 |
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MEETING DATE: |
09/24/19 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Auditor-Controller
(Approved) |
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Department contact
person(s): |
Salvador Lopez (714) 834-2470 |
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JC Squires (714) 834-5521 |
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Subject: Cash Difference Fund,
Overage Fund & Cash Loss Fiscal Year 2018-19
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ceo CONCUR |
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Clerk of the Board |
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Concur |
No Legal Objection |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 09/25/2018
#4 |
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RECOMMENDED ACTION(S):
Receive and file the Auditor-Controller Annual Reports of County Cash Difference Funds, County Cash Losses and County Overage Funds for FY 2018-19.
SUMMARY:
For FY 2018-19, the Auditor-Controller presents the Annual Reports of County Cash Difference Funds, County Cash Losses and County Overage Funds.
BACKGROUND INFORMATION:
Pursuant to Government Code Sections 29380.1 and 29390.1, the County Board of Supervisors (Board) authorized the Auditor-Controller (Board Resolution 83-354 dated March 8, 1983, and amended by Board Resolution 88-767 dated May 24, 1988) to replenish cash difference funds, transfer money in the overage funds, and replenish cash losses of $300 or less. The $300 cash loss limit was increased to $2,500 (Board Resolution 05-033 dated February 15, 2005) with an additional quarterly reporting requirement for losses exceeding $1,000 as dictated in the County Accounting Procedure C-3 for cash losses. Additionally, pursuant to Government Code Section 29370.1 (Board Resolution 99-135 dated April 6, 1999), the Board authorized the Auditor-Controller to establish, increase, reduce or discontinue cash difference funds.
Cash difference funds are used to reimburse cash shortages of County funds. Cash shortages are deficits occurring from employee mishandling of cash receipts or disbursements. Cash difference funds are also used to increase an underpayment received on an account by the Treasurer-Tax Collector or any officer of $20 or $10, respectively.
The Board directed the Auditor-Controller to file a report annually identifying all officers' cash difference funds and new funds established during that fiscal year, indicating the dollar amount of each fund. A listing of cash difference funds as of June 30, 2019, is attached.
Cash losses are losses or deficits occurring due to thefts or mysterious disappearances, and are reported to local law enforcement agencies as well as CEO/Risk Management. Cash losses are replenished after review by the Auditor-Controller, and when appropriate, by the District Attorney. Cash losses cannot be replenished by cash difference funds.
To obtain relief of accountability for cash losses, County Accounting Procedure C-3 requires departments to provide a letter to the Auditor-Controller. It is the Auditor-Controller’s responsibility to review cash losses to ensure departments have provided sufficient required information regarding the loss, have reported the loss to the appropriate authorities, have performed an internal investigation to determine if the loss is due to employee fraud or gross negligence, and have taken appropriate corrective action. The Internal Audit Department reviews the Relief of Accountability letters and makes a recommendation to the Auditor-Controller on whether relief of accountability should be granted and the loss reimbursed when the losses are over $1,000. The Internal Audit Department also assesses the adequacy of related internal controls for departments with individual cash losses of over $1,000. Cash losses over $2,500 are submitted to the District Attorney’s Office for review and evaluation.
For FY 2018-19, there were no cash losses requiring audit by the Internal Audit Department.
The Board also directed the Auditor-Controller to file a report annually accounting for all such replenishments made during the year. Listings of cash difference and cash loss replenishments made during FY 2018-19 are found on Attachment A and Attachment B, respectively. The amounts reported on these attachments may be cumulative totals of multiple replenishments.
The cash overage fund receives funds when an amount paid to any county officer exceeds the amount due to the County for any account and such excess does not exceed $10. Government Code Section 29380.1 requires the Auditor-Controller to file a report annually accounting for cash overages transferred to the County General Fund.
Prior Board Action:
On September 25, 2018, the Board received and filed the Auditor-Controller Annual Reports of County Cash Difference Funds, County Cash Losses and County Overage Funds for FY 2017-18.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
Internal Audit
ATTACHMENT(S):
Attachment A - Annual Report of County Cash Difference
Funds & Activity
Attachment B - Annual Report of County Cash Losses
Attachment C - Annual Report of County Overage Funds
Attachment D - California Government Code Sections 29370-29390.1 and California
Revenue and Taxation Code Section 2611.4
Attachment E - Board of Supervisors Resolutions 83-354, 88-767, 99-135, and
05-033