KAILUA-KONA, Hawaii (AP) - An audit has found the cash handling controls of the Big Island’s Mass Transit Agency to be inadequate and ineffective, leaving the auditors unable to determine if money had been lost or misappropriated.
The audit report sent to the county council this week makes 30 recommendations to tighten controls over the approximately $1.2 million of mostly cash that flows through the agency each year, West Hawaii Today reported Friday.
“Cash handling internal controls at Mass Transit are inadequate and ineffective to ensure that revenue is properly controlled and deposits are timely and accurate,” auditors said in the report. “As a result, we are unable to determine if cash receipts were complete.”
A surprise money count at the agency was conducted in January, according to the report by Legislative Auditor Bonnie Nims. The auditors found nearly $30,000 in bus fare revenue, some of which had been left at the agency since July.
Some of the money was left unsecured on a break room table and in an unlocked safe. The report noted that the cash is secured overnight, but it was left unattended during the day.
The auditors also were unable to compare the cash the agency received with the number of passenger trips because not all the trips were recorded.
Despite the agency’s shortcomings, the report noted that it has taken steps to strengthen certain controls identified as problematic by auditors.
Mass Transit Administrator Maria Aranguiz, who took the job in February, said the agency is addressing many of the audit’s recommendations.
“Although the MTA acknowledges that its internal controls could be improved, it has already begun to revise the procedures followed by its staff,” Aranguiz said. “The MTA will continue to assess its current policies and make the necessary changes.”
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Information from: West Hawaii Today, http://www.westhawaiitoday.com
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