FAR EASTERN UNIVERSITY
Institute of Accounts, Business & Finance
Canayon, Angelie Rose T.
Puno, Michelle Ann J.
Royong, Precious B.
Rubio, Ephraim Jomel P.
Tulio, Ayn Carla M.
TOPIC OR SECTION:
Account Receivable: Cashier’s Office
An audit of the Cashier’s Office was conducted for the period January 1, 2013 through December 31, 2013. The objectives of the audit were to examine and evaluate the following: • Adequacy and effectiveness of departmental controls
• Compliance with policies and procedures
• Reliability and integrity of reported information
• Safeguarding of assets
• Economical and efficient use of resources
Payments are received in the Cashier’s Office for tuition and various student fees and are posted to the accounting systems. The Cashier’s Office also receipts payments through FRS for University departments receiving revenues and ensures proper allocation to the accounting systems. Payments are received via mail, phone and delivered in person to cashier windows. Forms of payments are currency, cashier check, money order, business check, personal check and credit card.
IV. ISSUES AND RECOMMENDATION
A. Statement of Condition: The University does not have procedures in place to control the numerical sequence of receipts issued by the Cashier’s Office. Two of the five initial receipts that we pulled were reported to be unused by the Cashier’s Office. University personnel could not explain why gaps existed in the range of receipt numbers or what happened to the missing receipts. Also, the systems allows a receipt to be keyed and printed out without ever being entered into the system which means that a receipt could be produced and the amount not show up on the system produced reports. Our audit disclosed one receipt that did not appear to be entered into the system. Also, our audit disclosed two receipts that appeared to be entered into the University’s system twice. Criteria: Good internal controls require that all receipts be accounted for and reconciled to the amount recorded in the University’s general ledger. Effect of Condition: Receipts could be issued and the funds could be misappropriated. Cause of Condition: Failure to account for the numerical sequence of all receipts: Recommendation: We recommend that a system be put in place for the numerical sequence of all receipts. Receipts should be used in numerical sequence and any voided receipts should be retained. A programming change should be made to ensure that a receipt cannot be printed until it is entered into the system. B. Statement of Condition: Dual control is not maintained over the safe where cash is stored, when not in the cashier station. Locks on individual cashier drawers, within the safe, are not secure. Criteria: Good internal control requires that dual control is maintained over cash stored in the safe and that sole control is maintained over individual cash drawers at all times. Effect of Condition: Cash could be inappropriately accessed and stolen. Poor controls result in an inability to maintain accountability for cash. Cause of Condition: The safe is secured by a four-number combination. At least three individuals have the entire combination which compromises dual control. Further, locks on the individual cashier drawers within the safe are worn and can easily be accessed with another key or device. Recommendation: The safe combination should be changed and the combination split among the various employees within the Cashier’s Office. The locks on individual cashier drawers within the safe should be replaced.
C. Statement of Condition: During peak periods or during the absence of one of the three primary cashiers, the Head Cashier opens a cashier window. The Head Cashier uses the same cashier number as the cashier whose window she is operating. However, she does use a personal log-on and her...
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