After an initial audit found that the Department of Public Safety’s poor accounting practices led to the unexplained loss of tens of thousands of dollars, the department has now earned a more positive follow-up report.
The recent Oregon University System review acknowledges progress and states that DPS’s accounting practices are improving, but the audit division of OUS plans to conduct another review sometime later this year. University officials said that progress is still being made to improve the business side of DPS.
In 2005, the OUS Internal Audit Division found that DPS had poor accounting practices and discovered that office staff wasn’t properly trained. In previous years, DPS lost tens of thousands of dollars in cash, checks and credit cards, but the loss can’t be explained. An auditor couldn’t determine whether the decrease was caused by theft, loss or simply more OUS employees choosing payroll deductions to pay for parking permits.
According to a Feb. 28 memorandum from IAD Director Patricia Snopkowski to Frances Dyke, vice president of finance and administration, a University employee was caught stealing coins from a parking meter in December 2006. It’s unknown if the alleged theft is related to the money loss reported in the audit. Dyke wasn’t available for comment on Thursday.
Dyke requested the original audit because she had concerns about cash-handling operations and wanted to “determine if a financial loss occurred,” according to a 2005 memo. She ordered the audit after the University’s Business Affairs Office informed her there had not been a regular deposit from DPS.
The OUS audit division concluded that DPS cash handling controls were “unsatisfactory,” but found the University has “adequately addressed” IAD’s recommendation to strengthen internal controls, according to the recent memo.
After the 2005 audit, the University’s human resources department and Laura Hubbard, associate vice president for finance and administration, implemented a plan to address internal controls, analyze DPS front desk operations and cash handling procedures.
Hubbard said that Business Affairs and the human resources department worked closely with DPS to address the issues raised in the audit, especially internal controls.
“When we have good internal controls, we can assure ourselves, the public and students that we are using our resources efficiently,” Hubbard said.
Hubbard said DPS is hiring temporary employees to handle business transactions.
“That makes it difficult because you’re always training people, and by the time they learn what they’re doing, they leave,” Hubbard said.
She said the University hired a permanent DPS business manager, Jennifer Creighton, and implemented more checks and balances when handling cash. Creighton resigned as ASUO Accounting Coordinator in 2005 as it became public that the ASUO Executive had concerns about Creighton’s hiring of relatives for ASUO positions.
Hubbard also added that more than one person in charge of cash handling prevents any suspicious activity.
“Whenever you’re handling cash, or the equivalent of cash, you need to make sure that as you go through the process, not one person is handling the entire transaction,” she said.
Hubbard said that Business Affairs staff trained DPS office staff in cash handling procedures and purchased new cash registers. She said DPS also restricted computer access to certain programs.
Hubbard said DPS will continue to make improvements.
“We have implemented some improvements. A lot of progress has been made, but some work needs to be done,” she said.
Creighton, who started her job in July 2006, said that DPS staff has worked hard to make changes. She said DPS may offer more Internet services in the future, including paying for parking permits and citations online with a credit card. She added that there is no specific date for the changes.
The IAD memo recommended:
? Continue segregation and supervisory review of cash operations
? Ensure physical controllers of cash work with the Business Affairs Office to limit cash on hand and obtain adequate receipts.
? Create and maintain an inventory of keys and meters.
? Perform an overall analysis of access to campus buildings.
? Perform an evaluation of the business purpose and efficient practice of key deposits.
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