Audit Area: Cash Management
Audit IssueThere were two of five instances in which returned payments were not recorded in the Banner system in a timely manner. There were three of five instances where the returned payment did not result in a return check fee being applied to the student’s account as required by the Tuition and Fee Schedule approved by the Board of Regents. Although the risk is similar, the Internal Auditor was made aware that payments made through the online payment service provider (Touchnet) are not subject to a fee if returned for insufficient funds.
Audit RecommendationReturned payments should be recorded on the student’s account immediately. This should be done to ensure student account balances are current and accurate for management analysis. Appropriate personnel should consider applying a return check fee for returned payments which originated online with our third party service provider (Touchnet). A policy which would prohibit persons to pay with checks that have been identified as repeat offenders regarding returned payments should be explored.
Management’s ResponseManagement concurred with and planned to implement the audit recommendation noted.
Current StatusIn process.
Implementation DateThe corrective action was to be implemented on 2/15/16.
Indicator of Implementation / ProgressA sample of three returned payments was reviewed to ensure they were reversed in the Banner financial system in a timely manner and to verify the appropriate fee was applied to the student. All three returned payments were reversed in the Banner system in a timely manner. However, each of the three returned payments resulted in either no fee being applied to the student’s account (Touchnet) or an inappropriate fee was charged to the student.
Audit IssueThe daily reconciliation of the cashier’s register is not performed in the presence of two individuals. There were instances in which the Cashier Check-Out Forms were not reviewed or approved by the Cashier Supervisor as evidenced by way of a signature and date. There were instances in which the Cashier Check-Out and Deposit Recap Forms were not fully completed.
Audit RecommendationThe daily reconciliation of cashier’s register should be performed in the presence of two persons (dual control) at the end of each work day. Any differences identified between the Cashier Check-Out Forms and cashier detail reports should be researched and resolved. The preparer should sign and date the reconciliation upon completion. The reconciliation should be subject to a formal review, evidenced by way of the reviewer’s signature and the date of review.
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