Purpose

To determine whether the Department of Motor Vehicles has adequate controls over the cash advance accounts it oversees to ensure the money is properly accounted for and used for appropriate business expenses. The audit covers the period April 1, 2011 to June 12, 2014.

Background

Under Section 115 of the State Finance Law, cash advances are issued to State agencies for purposes such as petty cash, travel, and other funding needs (e.g., confidential, patient, and resident allowances). Advances are issued from agency appropriations and the cash is transferred from the State Treasury to a local bank account for use by the agency. As of December 31, 2014, the Department was authorized to have three advance accounts for Travel Advance, Confidential and Petty Cash with a total value of $346,750.

Key Findings

We found the Department has designed effective internal controls over these accounts to ensure that funds are properly accounted for and payments are only made for appropriate business purposes. Our tests showed these controls have generally operated as intended. However, we also found that each of the Department’s three cash advance accounts is overfunded in comparison to its apparent business needs.

Key Recommendation

Reduce the amount of funds held in each advance account to more appropriate levels based on analysis of historical usage, current business practices and anticipated future needs. Return excess funds to the State Treasury.

Other Related Audits/Reports of Interest

Office of Child and Family Services: Controls Over Cash Advance Accounts (2013-S-52)
Workers' Compensation Board: Controls Over Cash Advance Accounts (2014-S-12)