Audit Report on the Administration Of The Department Of Consumer Affairs Imprest Fund

AUDIT REPORT IN BRIEF

We performed an audit on the Department of Consumer Affairs’ (Department) compliance with Comptroller’s Directives, Procurement Policy Board rules, and other City guidelines governing the administration of imprest funds. Imprest funds are agency-controlled checking accounts that can be used for small purchases and petty cash transactions. In Fiscal Year 2009, the Department made 537 imprest fund payments totaling $40,569.20. Additionally, in Fiscal Year 2009, the Department replenished the imprest fund account by $27,249.44 for 346 reimbursements processed.

Audit Findings and Conclusions

The Department did not properly administer imprest funds in accordance with the guidelines governing imprest fund administration. Specifically, miscellaneous funds were improperly deposited in the imprest fund account; payments were made that were ineligible as imprest fund expenses; duplicate payments were processed for reimbursement; required monthly reconciliations of petty cash counts and bank accounts were not conducted; there was inadequate documentation to substantiate payments; sales tax was improperly paid; and one check exceeded the threshold amount for imprest fund payments.

Audit Recommendations

This report makes a total of 12 recommendations. The major recommendations are that the Department should ensure that:

• All deposits from sources other than imprest fund reimbursements are deposited in the general fund and not in the imprest fund.
• Monthly reimbursement vouchers are processed for imprest fund expenses.
• Imprest fund expenditures are not used for personal service costs, consultant fees, monthly expenditures, and other proscribed expenses.
• All processed payments and supporting documentation are stamped showing amount paid, check number and check date.
• Monthly petty cash counts and bank reconciliations are performed.
• Comptroller’s Directive requirements are complied with for maintaining a list of checks and for aging and following up outstanding checks.
• All documentation to substantiate payments is contained in Department files.