The handling of the fees people pay at Smith Point Park in Shirley has been lax, according to the county Comptroller, who singled out cash drawers that consistently had discrepancies.
“Cash is not adequately safeguarded at the park,” said Comptroller John Kennedy in a performance audit of the Parks Department. “Inadequate safeguarding of assets increases the risk of undetected theft.”
In a letter outlining his findings to Parks Commissioner John Giannott, the Comptroller Stated that the department failed to comply with Standard Operating Procedures with regard to depositing cash receipts within the required timeframe. “The procedures implemented to ensure the safeguarding of assets are inadequate, and there is inadequate oversight over the cash handling process of revenues,” the audit noted.
Kennedy recommended that the department have at least one employee always available to make daily safe deposits and implement procedures requiring park supervisors to regularly perform random observations and independent cash counts. “Failure to deposit funds within 24 hours increases the risk of theft and/or misappropriation of cash,” the audit stated.
Additionally, the combinations of the safes that contain the cash collected at the park were not changed regularly. “Inadequate safeguarding of assets increases the risk of undetected theft,” the report stressed.
The audit analysis revealed that there were 20 users with cash register variances and 14 users with bank deposit discrepancies during the audit period. “Furthermore, we noted the same three cashiers were responsible for the largest amount of both cash register variances (82 out of 197, or 42%) and deposit discrepancies (38 out of 60, or 63%).”
The audit went on: “Due to the continued occurrences of cash register variances and bank deposit discrepancies by the same cashiers throughout the audit period, it appears that corrective action was not taken by parks supervisors in a timely manner. Failure to take timely corrective action of discrepancies noted can potentially lead to an increase in the misappropriation of funds.”
Responding to the audit, Commissioner Giannott said the department will conform to the operating procedures outlined by the Comptroller. “Internal control over cash at the parks is important to us. We do have procedures in place to safeguard cash, and the park supervisors are trained in cash handling procedures,” Giannott said.
He confirmed that the department will “conduct an independent review of cashiers to identify which individuals have recurring errors and corrective action will be taken.” Reviews will occur on a continuous basis throughout the year, the Commissioner noted.
He went on to say, “We agree that cash drops should be made mid-shift, especially during peak times during the summer months, and have already implemented a procedure for this. We also agree that changes in full-time staff warrant a change in safe combinations and have already implemented this procedure. We will work with park supervisors to continue to ensure these practices are adhered to.”
In addition, the Commissioner said he will work to put procedures in place that will see the park supervisors performing random observations of toll booth attendants, an activity that will prove to be challenging due to limited staff, he noted. Giannott also reported that the department recently hired an auditor to perform independent cash counts at revenue-generating facilities.
According to the Commissioner, the department has also implemented a “Train the Trainer” model, where Park supervisors receive training in the first quarter of the year and then train the employees, including seasonal employees, at their locations.
An oceanfront park, Smith Point is one of the county’s most popular facilities. Parking costs $9 for residents and $18 for non-residents. It is one of eight county beaches and features a boardwalk, playgrounds, camping areas, and 4-wheel drive access to the outer beach.