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Customer Order and Account Management Business Processes
Describe in the existing system, and recommend improvements for each of the weaknesses to strengthen the internal control over the parking lot cash receipts.
The town of Bellevue operates a private parking lot near the railroad station for the benefit of town residents. The guard on duty issues annual pre-numbered parking stickers to residents who submit an application form and show evidence of residency. The sticker is affixed to the auto and allows the resident to park anywhere in the lot for12 hours if four quarters are placed in the parking meter. Applications are maintained in the guard office at the lot. The guard checks to see that only residents are using the lot and that no resident has parked without paying the required meter fee.
Once a week the guard on duty, who has a master key for all meters, takes the coins from the meters and places them in a locked steel box. The guard delivers the box to the town storage building, where it is opened and the coins manually counted by the storage department clerk who records the total cash counted on a weekly cash report. This report is sent to the town accounting department. The storage department clerk puts the cash in a safe, and on the following day the cash si picked up by the town's treasurer, who manually recounts the cash, prepares the bank deposit slip, and delivers the deposit to the bank. The deposit slip, authenticated by the bank teller, is sent to the accounting department, where it is filed with the weekly cash report.
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