TITLE
Recommendation to receive and file the Parks, Recreation and Marine Revenue Collection Audit Report; and request City Manager to review the recommendations, develop strategies for implementation, and update the City Auditor as to the status of the recommendations within six months from the date of receipt and filing of this report.
DISCUSSION
The Office of the City Auditor (OCA) completed a review of internal controls over revenue collection at several Department of Parks, Recreation & Marine (Department) locations. The Department processes $6.6 million in revenue throughout 34 sites.
While the Department provides a wide range of recreational services that generate revenues, the administrative structure that calculates, collects and safeguards these revenues was never thoroughly developed or managed. As a result, the City has lost funds due to misappropriation and inconsistency in the collection of fees. Over the past year, the Department's new management has recognized the need to address the internal control issues surrounding revenue collection and have begun efforts to make corrections and/or changes at individual sites. However, after assessing the control issues at several Department locations, the OCA believes this approach will not substantially lower the risk to adequately safeguard revenue.
Instead, the OCA recommends management develop a Department-wide plan to ensure the design of a strong and secure revenue collection system which will meet the growing demands for Department services. This plan should focus on centralizing the revenue collection process, increase the use of technology, and develop detailed cash handling training.
This comprehensive approach to address internal controls over revenue collection is a large undertaking and may require outside consulting assistance to complete within a reasonable time period. While we understand City resources are limited at this time, it is important the City provide the Department the necess...
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