NEWS RELEASE OFFICE OF CITY CONTROLLER CITY OF HOUSTON
FOR IMMEDIATE RELEASE
Tuesday, March 7, 2000
Contact: Sharon Adams, 713-247-3152 or pager: 713-7274147
Lorie Arnett, 713-437-6163 or pager: 713-618-3024
CITY CONTROLLER'S ALARM FEE AUDIT RAISES CONCERNS
A recent audit of burglar and panic alarm fees collected
by the Houston Police Department reveals a lack of
internal controls over cash handling. This lack of
controls was found both within the police department
and within the company hired by HPD to provide billing
and cash collection services.
The Alarm Fee Audit was conducted by the City Controller's
office as part of its annual audit plan.
"There are obvious control issues here that could
result in the theft or loss of funds," City Controller
Sylvia Garcia said. "We are pleased that the police
department agrees with our findings and is taking
immediate action to correct these problems."
Some examples of the Controller's office findings
that are in violation of city policy are:
- Checks are not endorsed when they are received.
- Checks are not locked up overnight.
- Checks are not transported in locked moneybags.
- There are no log-in procedures currently in place
for checks and cash received fro new alarm permits.
- Approximately a million dollars worth of checks
were held for up to a month before being deposited.
"There are many more examples of what could lead
to a major breakdown in cash handling procedures.
For example, the courier who picks up the alarm fee
payments is currently the same person responsible
for entering those deposits into the computer system.
Good accounting dictates that these duties be separate,"
Controller Garcia said.
"It is clear that internal controls are not adequate
to provide reasonable assurance that cash is properly
accounted for and safeguarded. My office will continue
to work with HPD to improve all cash handling controls."
