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1、INTERNAL AUDIT REPORTStockton City CouncilMayorGary A. PodestoVice-MayorGloria C. NomuraCouncil MembersSteve BestolaridesRichard F. Nickerson, MDLeslie Baranco MartinFrank “Larry” RuhstallerGary S. GiovanettiCity Auditor F. Michael TaylorOFFICE OF THE CITY AUDITORAudit ReportSYSTEM EVALUATION: GOLF
2、COURSE CASH RECEIPTSMay 2004Stockton, CaliforniaMay 18, 2004Stockton City CouncilAUDIT SUMMARY SYSTEM EVALUATION: GOLF COURSE CASH RECEIPTSIn accordance with our 2002-2003 audit plan, we have completed an audit of Golf Course Cash Receipts. Our audit was conducted in accordance with Generally Accept
3、ed Government Auditing Standards.The objective of our work was to determine whether the Citys golf course cash handling practices were in accordance with the Citys policies and procedures, and effective in assuring that golf course cash receipts were adequately protected. In addition, we examined cu
4、rrent practices involving cash handling operations at each golf course to assess whether the Citys assets were properly safeguarded. The results of our audit were communicated to management.Our conclusions were based on conditions noted during the examination of golf course operations, interviews wi
5、th City staff, and review of selected transactions. We conclude that serious weaknesses existed in the way golf course transactions and funds were handled, recorded and deposited. Because of these weaknesses, we believe the City has experienced financial losses. Parks and Recreation has taken signif
6、icant steps in addressing the weaknesses noted. Conditions still needing attention include; oversight of money handling, control over gift certificates and golf passes, inadequate chain of custody over cash, noncompliance with Council fee schedule, inadequate safeguarding of cash, ineffective use of
7、 surveillance equipment, failure to obtain cash handling training for employees, and lack of written policies and procedures. We reported the above conditions to management and will perform follow-up procedures on implementation of managements corrective action plans.Although some losses have been q
8、uantified, overall control weaknesses make it impossible to calculate how much additional revenue should have been recorded and deposited.We would like to express our appreciation to the Parks and Recreation Department for their cooperation during the course of our audit, and to Administrative Servi
9、ces Department staff for bringing their concerns to our attention./Original signed by/Original signed byF. MICHAEL TAYLOR, CIAFRANK DEMATTOS, CPA, CIA CITY AUDITORSENIOR DEPUTY CITY AUDITORFMT:FBD:mgemc:Mark Lewis, Esq., City ManagerJayne Williams, Interim City AttorneyKatherine Gong Meissner, City
10、ClerkJohnny Ford, Deputy City ManagerPamela Sloan, Parks and Recreation DirectorMark Herder, Chief of PoliceMark Moses, Administrative Services OfficerMacias, Gini & Company, LLPThe RecordTABLE OF CONTENTSSystem Evaluation: Golf Course Cash Receipts PageAudit SummaryAudit ReportBackground . . . . .
11、. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Objective and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Audit Results. . . . . . . . . . . . . . . .
12、 . . . . . . . . . . . . . . . . . . . . . . . . . 3SYSTEM EVALUATION: GOLF COURSE CASH RECEIPTSWe have completed an audit of the Parks and Recreation Golf Course Cash Receipts as part of the 2002-2003 Audit Plan. Our audit was performed in accordance with Generally Accepted Government Auditing Stan
13、dards.BACKGROUNDThe City operates two 18 hole championship golf courses, and two 9 hole courses at three locations in the City; Swenson Park, Van Buskirk, and Lyons. Golf courses are operated by the City, and are intended to be self sufficient, generating revenue from green fees, golf lessons, drivi
14、ng range balls, golf cart rentals and the sale of golf merchandise. For the fiscal years 2002 and 2003, the Citys golf courses reported annual gross revenue of $2.31 and $2.49 million, respectively. Over the years, the City Auditors Office has conducted a number of assignments related to operations
15、of the Citys golf courses. On May 11, 2001, the Office of the City Auditor issued an audit report evaluating cash handling and internal controls. The audit findings reported to the City Council included: Cash receipts were not being deposited daily Courses did not accept credit card or debit card payments The need to establish limits on the amount of cash in the cash register, and Receipts not b
