The audit of Police Special Revenues evaluated management controls over sources and uses of special revenues. These accounts included RICO, donations, court surcharges for crime labs and safety equipment, a service agreement for crime lab services, and revenues from the Pawn and 30-Day Tow Programs. In FY 2018/19, the Police Department’s special programs had approximately $1.2 million in revenue and $1.4 million in expenditures.
The audit found that RICO community grants appear to be donations due to a lack of standard grant processes, such as applications, grant agreements and monitoring. As well, other program aspects could be better managed. For example, the annual RICO budget does not include available monies held by a county and a state agency and a special enforcement account balance may be higher than necessary. Additionally, RICO program controls can be improved, such as separation of duties and redirecting reimbursement checks to the city’s centralized remittance processing group.
The department’s Cadet program bank account existed outside the City treasury. These monies were not budgeted, and internal controls over receipts, expenses and records retention need improvement.
Management controls over donations, cash handling and expenditure approvals can be improved. The department does not have transparent, public procedures for donations, did not consistently retain signed copies of donation acknowledgement letters and retained unredacted donor check copies. Also, program staff did not immediately account for 30-Day Tow receipts in the City’s cashiering system, and they were unable to account for 6 manual receipts. The audit also noted that the 30-Day Tow program has limited service hours, and some Police special program expenditures did not have documented operational approval – that is, a sign off by the supervisor of the particular program or unit.
The department agreed with the audit recommendations.