Develop an internal control process to ensure that each field division properly documents, tracks, safeguards, and promptly deposits all checks received into Water Resources' accounts.
Water Resources reported in December 2015 that it relied on previously established procedures for processing cash and checks in its Enterprise Process Guide, Department Administrative Manual, and the State Administrative Manual. After we reviewed the applicable procedures, we requested that Water Resources revise its Department Administrative Manual to include language found in the State Administrative Manual that prohibits checks to remain undeposited for more than five working days. Water Resources reported in February 2016 that it had made the suggested changes.
Water Resources issued a new instruction in October 2015, which aims to establish procedures for properly disposing state-owned surplus property. However, the instruction lacks internal controls to ensure the tracking, safeguarding, and prompt depositing of all checks received by its field divisions.