HomeMy WebLinkAbout2015 - Audit Report - LPD Lansing Police Department Special Operations Cash Audit rept 2015 yPN S I CITY OF LANSING
INTERNAL AUDITOR
124 W MICHIGAN AVE FL 10
LANSING MI 48933-1605
(517)483-4159
I P� Fax (517)483-7630
cHIO
AUDIT REPORT
DATE: February 19, 2015
TO: City Council, City Clerk, Ma oi Bernero
FROM: Jim DeLine, Internal Auditor
RE: LPD Special Operation dit
Per City Charter, "The Internal Auditor shall make a full report to the City Council of
each individual audit and file a copy with the Mayor and City Clerk." To that end, this
report is being sent for your review and to be placed on file.
Background / Research
It is my intention to periodically conduct cash audits at City government locations where
cash transactions and petty cash boxes exist. While many of these audits occur
unannounced, due to the confidential nature of the Special Operations Section location
and the periodic cash audits conducted there by the Finance Department, it was
decided to piggy-back on their cash audit scheduled for November 25, 2014. For
unexplained reasons, LPD cancelled that visit. Attempts to reschedule were not
successful until I met with Captain Darin Southworth, Lt. Tom Fabus and Sgt. Ellery
Sosebee on January 20, 2015 to discuss both the cash audit and a procedural audit of
LPD evidence handling. At that meeting, I was informed that I could now expect full
cooperation from LPD personnel. No explanation of the delay was offered.
I arrived at the Special Operations Section the morning of January 29, 2015 and was
given a tour and overview of the section by Lt. Fabus. At approximately 10:30 a.m. he
removed two cash boxes from a safe, one for transactions charged to the City of
Lansing general fund and one for transactions charged to a forfeiture fund.
With Lt. Fabus in the room, I proceeded to count the cash, review and tabulate receipts,
and review and tabulate "paid outs" to officers. (Undercover personnel are allowed to
maintain cash on their person for various duty-related transactions.)
Analysis
Both cash boxes balanced "to the penny" for cash, paid outs and receipts. See
Attachment A for my handwritten Cash Count Sheets and correlating verification via
Excel sheets. FYI - The paid out amount is duplicated in the receipts.
Page 1 of 2
When I inquired what account general fund expenses were charged to, I was informed
101.343240.741820, an evidence account. I believe a miscellaneous account be, in
some cases, more appropriate (like for a car wash). I would also question whether the
general fund is appropriate for any Special Operations expenses.
Upon returning to the office on January 29, 1 emailed Sheila Wheeler, in the Finance
Department who works closely with the Special Operations supervisors to schedule a
meeting to discuss the separation of paid outs and receipts. No response was received.
I emailed again on February 9, 2015, requesting she meet with me and, again, no
response was received. I called Finance Director, Angela Bennett, on February 11,
2015 with my questions and she suggested I contact the LPD Budget Control
Supervisor reference my question of general fund vs. forfeiture fund, and that
Accounting Manager, Randy Endsley, would be contacting me reference the seeming
duplication of paid outs . Not having heard from him by Friday, February 13, 2015, 1
visited him in his office. He quickly was able to address my question.
Recommendations
While confidential informants (Cis) used by officers in Special Operations are required
to sign receipts for any money given them, some employees of local businesses were
not. Lt. Fabus anticipated that I would recommend they be required to do so and has
already written a procedure to that affect.
I have emailed the LPD Budget Control Supervisor recommending he review items
charged to the general fund and provide clarity to the SOS Secretary as to appropriate
accounts to charge. See attachment B.
It is also recommended that when scheduled audits and / or meetings with the Internal
Auditor are cancelled, an explanation be given. When emails and requests from the
Internal Auditor are received, they should be answered on a timely basis.
Lt. Fabus is to be commended for the cooperation shown during the January 29, 2015
cash audit. He not only complied with the cash audit being conducted, but went out of
his way to provide background as to the functions of the section and its procedures. He
supplied extensive written procedures used by undercover officers regarding cash
handling. Those documents are retained in the office of the Internal Auditor but are
being kept confidential per the lieutenant's request.
Page 2 of 2
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CITY OF LANSING
Internal Audit
CASH COUNT SHEET
Department: (�i
Location:
Date: "t Time: AM/PM
Currency Quanity Total
$1.00 X
$2.00 X =
$5.00 X j.100) F- _ —
$10.00 X =
$20.00 X —
$50.00 X 3 =
$100.00 X Z� _ — �°—
Sub total currency----------------------------------------------------- J �—
Coins
$0.01 X + rolls $0.50/Roll =
$0.05 X + rolls $2.00/Roll =
$0.10 X + rolls $5.00/Roll =
$0.25 X + rolls $10.00/Roll =
$0.50 X + rolls $20.00/Roll =
$1.00 X + rolls =
Sub total Coins ------ --------------------------------------------------
Checks-------------------------�-------- -------------------------------------------- U
Paid outs---------------------- J "`� - 1
Recipts -----------------------------------� J �'S
Summary: �- I C
J
Currency--------------- - �-�------------------ I
Coins------------------ - -- ---------------------- I �r
Checks----------------- --- ------------------------
Paidouts------------- — -------------------
Total-------------------� - r--1 -! -------------------------------------------------- S I
Less: Receipts------ - - - -----------------------------------------------
Subto al-- --------------- - ----- ------------------------------------------------- T
Less: etty ash Fund---------------------------------------------------------- t
Overhort) --------------------------------------------------------- ----- U co �J
Auditor —�^ Department Rep. Z'v
Attachment A — Page 1 of 6
Recap of expenditures from Imprest Cash that have not been Reimbursed
Date PE Item Amount
l-
w
av -
N Scx�
0 00
500 • 00
300 = 00
1 00 - 00
500 00
500 = 01
500 ° 00
00 = 0c)
300 . 00
300 - 00
00 : t)0 ,
.300 .,oo
500 00
Side 2 of 2
Attachment A — Page 2 of 6
CITY OF LANSING
Internal Audit
CASH COUNT SPREADSHEET
(Attach signed original)
Department: Police
Location: Special Operations Section
Drawer: 273 drawer
Date: Thursday, January 29, 2015
Currency
Qty Plus banded Total
$1.00 0 0 $0.00
$2.00 0 0 $0.00
$5.00 15 4 $100 ea $475.00
$10.00 51 0 $510.00
$20.00 94 2 $2,000 ea $5,880.00
$50.00 3 0 $150.00
$100.00 25 0 $2,500.00
Total Currency $9,515.00
Coins
Qty Plus rolled Total
$0.01 0 0 $0.50 ea $0.00
$0.05 0 0 $2.00 ea $0.00
$0.10 0 0 $5.00 ea $0.00
$0.25 0 0 $10.00 ea $0.00
$0.50 0 0 $20.00 ea $0.00
$1.00 0 0 $0.00
Total Coins $0.00
Checks (attach tape) $0.00
Paid outs (attach tape) ($5,400.00)
Receipts (attach tape) $15,885.00
Total Cash Box Today $20,000.00
Total Cash Box Per Finance $20,000.00
Over (Short) $0.00
Attachment A - Page 3 of 6
CITY OF LANSING
Internal Audit
C/A�SH COUNT SHEET
Department: C/
LoLocation: �D '---
Date: M 120 Time: L AM/ M
Currency Quanity Total
$1.00 X ��
$2.00 X La— _
$5.00 X tlou
$10.00 X = 6 oo G
$20.00 X = 2r cXJf1 = zOQU
$50.00 X
$100.00 X _ - _
r—
Sub total currency-------------------------------------------- _ u-
Coins
$0.01 X + rolls $0.50/Roll =
$0.05 X i + _ rolls $2.00/Roll =
$0.10 X + — a rolls $5.00/Roll = v
$0.25 X + rolls $10.00/Roll =
$0.50 X + rolls $20.00/Roll
$1.00 X 71 + rolls = 00
Sub total Coins ----------------------------------------------------VLI ----
Checks--------- ----------------------------------------------------------------------------------------------------
Paidouts------------------------------ ---- ----------- -------------- ------------------------------------------------
l
Recipts --------------------------------- -------------------------------------------------------------
Summary: �{ I
Currency ----� !- � ?J----------------
Coins-----------------------LI-1
-------------------------------------------------
Paidouts----------------------------------------------
Total----------------�- ---- -- ----- ---------------------------------
. -J -- -------Less: Receipts--- -
--------------------
Sub tot '
------------------------------
Less: P tty ash Fun - --- --------------------------------------------------
Ove ( ort) ------------------------------------------------------------- ---- --------------------
Auditor Department Rep.
Side 1 of 2
Attachment A — Page 4 of 6
V 0P �
Recap of axperdit FF§. from Imprest Cash that have not been Reimbursed
Date Pa ye Item Amount
c
1
Side 2 of 2
Attachment A — Page 5 of 6
CITY OF LANSING
Internal Audit
CASH COUNT SPREADSHEET
(Attach signed original)
Department: Police
Location: Special Operations Section
Drawer: 101 drawer
Date: Thursday, January 29, 2015
Currency
Qty Plus banded Total
$1.00 0 0 $0.00
$2.00 0 0 $0.00
$5.00 1 0 $100 ea $5.00
$10.00 3 0 $30.00
$20.00 34 1 $2,000 ea $2,680.00
$50.00 0 0 $0.00
$100.00 0 0 $0.00
Total Currency $2,715.00
Coins
Qty Plus rolled Total
$0.01 43 0 $0.50 ea $0.43
$0.05 13 0 $2.00 ea $0.65
$0.10 21 0 $5.00 ea $2.10
$0.25 27 0 $10.00 ea $6.75
$0.50 0 0 $20.00 ea $0.00
$1.00 2 0 $2.00
Total Coins $11.93
Checks (attach tape) $0.00
Paid outs (attach tape) $0.00
Receipts (attach tape) $273.07
Total Cash Box Today $3,000.00
Total Cash Box Per Finance $3,000.00
Over (Short) $0.00
Attachment A - Page 6 of 6
DeLine, Jim
From: DeLine,Jim
Sent: Thursday, February 12, 2015 9:15 AM
To: Prisk, Denis
Cc: Fabus, Thomas (Thomas.Fabus@lansingmi.gov)
Subject: Special Ops General Fund Cash Expenditures
Denis: As I think you know, on January 29 1 visited the Special Operations Section and conducted a
cash audit of two cash boxes which they keep in a safe there. One is dedicated to forfeiture fund
expenses and the other to general fund expenses. According to their Secretary, Randy Davis, all
general fund expenses are charged to 101.343240.741820, an evidence account. Some of the
receipts were for miscellaneous items like car washes. Are you reviewing the expenses from this
box? If not, I recommend you do so. I believe Randy may need more clear instructions as to what
account numbers are for what purpose. Why can't everything out there be charged to a forfeiture
account?
Thanks,
Jim
1
C11
Jim DeLine
Jim.DeLine(olansingmi.gov
Internal Auditor
Voice: (517) 483-4159
Fax: (517) 483-7630
Attachment B — Page 1 of 1
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