Pago Pago, AMERICAN SAMOA —  A surprise cash count at the Registrar’s office conducted by the Territorial Audit Office back in August this year found one minor discrepancy in the cash count. However, there are “deficiencies” and “weaknesses” in accounting at the office, according to a 14-page report.

The report says that Auditor counted  $1,152.00 consisting of currency and checks.

 “This amount represents total cash receipts of $1,140.00 and a surplus of $12.

 “The surplus was identified as a customer change not uplifted because there was no denomination to make a change.”

The Auditors suggest that the Territorial Registrar request a Petty Cash and or Change Fund (for cash transactions) from Treasury to accommodate immediate needs of the office.

 “Since the office is a smaller one, the dollar amount shall be at a minimum of either $50 or $100.

“We found that funds were accounted appropriately. “However, we noted weaknesses in accounting for collections and internal controls that require improvements which are discussed in the Findings and Recommendations section of the report.”

The Audit report states that they found out that the office has no written cash handling policies and procedures, as has also been noted during surprise cash counts at other government offices.

“We recommend for the Territorial Registrar to establish and maintain written procedures outlining individual steps in the cash handling process.

 “These procedures should be reviewed at least annually to ensure procedures are current. It is important that all personnel shall have a clear understanding of management expectations regarding cash handling processes.

 “Such procedures and policies should address, among other things, specific personnel is allowed to handle cash and alternate if cashier is ill or on leave.

“Specific personnel allowed to physically taking cash deposits to Revenue division; cash receipts must be issued in strict numerical sequence and funds and receipts are kept in secure locations.”

There should also be safety measures in cashiering areas.

 “Access to cashiering area must be limited to only those staff directly involved and all funds must be kept secure at all times.

 “We noted from observations that the fund custodian workstation is located in an open area which is accessible to unauthorized personnel.

 “Funds must never be left unattended. If the custodian leaves her/his workstation for any reason, regardless of how brief all funds must be appropriately secured in a locked place.”

The auditors cited the ASG Treasury Cash Receipts Policy and Procedures Manual on Cash Collections Will Be Adequately Safeguarded is that during the day, all cash collections will be kept in locked drawers, cash boxes or cash registers.

 “If a safe is available, all cash kept overnight will be placed in the safe.

 “The cash handling areas must be secured from entry by unauthorized persons.”

The Auditors again cited the ASG Treasury Cash Receipts Policy and Procedures Manual, on Cash Receipting Duties being adequately segregated.

 “In general, cash handling duties should be segregated from recording and reconciling duties.

 “The person who collects cash and issues receipts should not be responsible for reconciling daily receipts and preparing the deposit.

The Auditor recommended that separation of duties is a core internal control and an essential component of an effective risk management.

Also there is no secure cash device such as a cash register or vault to store cash collections overnight.

 “In general, all funds must be kept in a fire-resistant storage device (example, safe) that is equipped with at least one locking device and that cannot be easily removed from the premises.

Also the results of review from the selected sample of transmittal letters and cash receipts for the period from June 10, 2022 to September 2, 2022, reveals that deposits are not prepared and submitted on time.

 “One deposit shows that funds were withheld for almost a month, which is considered unsatisfactorily.

 “In the event that small amounts cannot be remitted to the ASG Treasury Revenue Division, a request shall be sent to the Treasurer asking for a required threshold amount before a deposit is prepared.

 “It is a must that the request is approved and received before acting to withhold any funds.”

The Auditors further noted that all deposits should be made daily and intact — no cash should be retained or expended.

 “The Office of Territorial Registrar should comply with existing policies and procedures to deposit cash collection in a daily basis.

“The audit was limited to the review of controls over cash handling and processing of daily cash receipts. Accordingly, we expressed no views on the overall controls in other areas of operations within the department in which a more detailed review is warranted.”