Pa. Auditor General's Report On Capitol Police Ticket Office

ATTESTATION ENGAGEMENT
____________
Department of General
Services, Bureau of Police and
Safety, Capitol Police
Department 12-00-99
Dauphin County, Pennsylvania
For the Period
January 1, 2010 to April 22, 2016
____________
March 2017
Independent Auditors Report
The Honorable Eileen H. McNulty

Secretary
Pennsylvania Department of Revenue
Harrisburg, PA 17128
We attempted to examine the accompanying statement of receipts and disbursements (Statement)

of the Department of General Services, Bureau of Police and Safety, Capitol Police Department,
Dauphin County, Pennsylvania (Department), for the period January 1, 2010 to April 22, 2016,
pursuant to the requirements of Section 401(c) of The Fiscal Code, 72 P.S. 401(c). The Capitol
Police Departments management is responsible for this Statement.
As discussed in the findings and recommendations section of the report, there was a severe lack of
internal controls over the issuance of blank parking tickets issued to officers. The Department also
did not reconcile parking ticket books assigned to Capitol Police Officers to tickets returned to the
ticket office. As a result, we were unable to determine the number of tickets ultimately issued to
violators. Additionally, parking ticket fines were not always recorded into the computer system
and parking ticket fines were not always deposited. Furthermore, we noted a severe lack of internal
controls over receipts, missing receipt records, and that the ticket clerk was responsible for nearly
all functions of the entire parking ticket operation without management oversight. Because of
these material weaknesses, we could not determine whether or not the Department properly
collected, recorded, and remitted all monies due to the Commonwealth. We were unable to satisfy
ourselves by other examination procedures; therefore, these deficiencies restricted the scope of our
examination on the Statement. In addition, these deficiencies increased the possibility that funds
may have been lost or misappropriated and went undetected by the Capitol Police Department.
Because of the restriction on the scope of our examination discussed in the preceding paragraph,
the scope of our work was not sufficient to enable us to express, and we do not express, an opinion
on whether the Statement referred to above presents, in all material respects, the receipts made on
behalf of the Commonwealth for the period January 1, 2010 to April 22, 2016 in conformity with
the criteria set forth in Note 1.
Independent Auditors Report (Continued)
In accordance with Government Auditing Standards, we are required to report all deficiencies that
are considered to be significant deficiencies or material weaknesses in internal control; fraud and
noncompliance with provisions of laws or regulations that have a material effect on the Statement;
and any other instances that warrant the attention of those charged with governance;
noncompliance with provisions of contracts or grant agreements, and abuse that has a material
effect on the Statement. We are also required to obtain and report the views of responsible officials
concerning the findings, conclusions, and recommendations, as well as any planned corrective
actions. We attempted to express an opinion on whether the Statement is presented in accordance
with the criteria described above and not for the purpose of expressing an opinion on internal
control over reporting on the Statement or on compliance and other matters; accordingly, we
express no such opinions.
Our consideration of internal control over reporting on the Statement was for the limited purpose
of attempting to express an opinion on whether the Statement is presented in accordance with the
criteria described above and was not designed to identify all deficiencies in internal control over
reporting on the Statement that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified.
However, as described below, we identified certain deficiencies in internal control that we consider
to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the Statement will not be prevented, or detected and corrected on a timely
basis. We consider the deficiencies listed below to be material weaknesses:
Severe Lack Of Internal Control Over The Issuance of Blank Parking Tickets To
Officers And The Number Of Tickets Ultimately Issued To Violators.
Severe Lack Of Internal Control Over Receipts.
Missing Records.
A Ticket Clerk Was Responsible For Performing Nearly All Functions Of The Parking
Ticket Operation Without Management Oversight.
Independent Auditors Report (Continued)
In connection with our engagement to examine the Statement, we attempted to perform tests of the
Departments compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the
determination of Statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our engagement, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards. However, if the scope of our work
had been sufficient to enable us to express an opinion on the Statement, instances of
noncompliance or other matters may have been identified or reported herein.
We are concerned that there was a severe lack of internal controls over the issuance of blank
parking tickets issued to officers and the number of tickets ultimately issued to violators. We are
also concerned that there was a severe lack of control over receipts, numerous missing receipt
records, and that the ticket clerk was responsible for nearly all functions over the parking ticket
operation. We also noted that the Department failed to correct a previously reported finding
regarding receipts not always being deposited the same day as collected. The lack of management
oversight and these deficiencies resulted in the possibility that funds may have been lost, stolen or
misappropriated and went undetected by the Capitol Police Department. It is imperative that the
Capitol Police Department strive to implement the recommendations and corrective actions noted
in this report.
This report is intended solely for the information and use of the Pennsylvania Department of
Revenue, the Administrative Office of Pennsylvania Courts, and the Capitol Police Department
and is not intended to be and should not be used by anyone other than these specified parties.
We appreciate the courtesy extended by the Capitol Police Department 12-00-99, Dauphin County,
to us during the course of our examination. If you have any questions, please feel free to contact
Michael B. Kashishian, CPA, CGAP, CFE, Director, Bureau of County Audits, at 717-787-1363.
February 21, 2017 Eugene A. DePasquale

Auditor General
CONTENTS
Page
Financial Section:
Statement Of Receipts And Disbursements..................................................................................1
Notes To The Statement Of Receipts And Disbursements...........................................................2
Findings And Recommendations:
Finding No. 1 - Severe Lack Of Internal Control Over The Issuance Of Blank Parking Tickets
To Officers And The Number Of Tickets Ultimately Issued To Violators .........4
Finding No. 2 - Severe Lack Of Internal Control Over Receipts ...............................................10
Finding No. 3 - Missing Records................................................................................................13
Finding No. 4 - A Ticket Clerk Was Responsible For Perfoming Nearly All Functions Of
The Parking Ticket Operation Without Management Oversight .....................15
Summary Of Prior Examination Recommendation .......................................................................19
Summary Of Examination Findings Discussion Regarding Procedures Implemented

Subsequent To Examination Period ...............................................................................................20
Report Distribution ........................................................................................................................22

DEPARTMENT OF GENERAL SERVICES, BUREAU OF POLICE AND SAFETY,
CAPITOL POLICE DEPARTMENT 12-00-99
DAUPHIN COUNTY
STATEMENT OF RECEIPTS AND DISBURSEMENTS
FOR THE PERIOD
JANUARY 1, 2010 TO APRIL 22, 2016
Collections:
January 1, 2010 to December 31, 2010 $ 4,371

January 1, 2011 to December 31, 2011 4,071
January 1, 2012 to December 31, 2012 2,105
January 1, 2013 to December 31, 2013 -
January 1, 2016 to April 22, 2016 3,789
Total Parking Fines Collected (Note 2) $ 14,336
Disbursements to Commonwealth (Note 3) (14,336)
Balance Due Commonwealth (Department) (Note 4) -
Examination Adjustments (Note 5) 1,429
Adjusted Balance due Commonwealth (Department)

for the period of January 1, 2010 to April 22, 2016 $ 1,429
Notes to the Statement of Receipts and Disbursements are an integral part of this report.
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DAUPHIN COUNTY
NOTES TO THE STATEMENT OF RECEIPTS AND DISBURSEMENTS
FOR THE PERIOD
1. Criteria
The Statement of Receipts and Disbursements provides a summary of receipts and

disbursements by category. The categories and the amounts of fines assessed are based on
Pennsylvania laws and regulations.
The Statement was prepared in accordance with reporting requirements prescribed by the
Pennsylvania Department of Revenue. Under this method, only the Commonwealth portion
of cash receipts and disbursements are presented, revenues are recognized when received,
and expenditures are recognized when paid.
2. Receipts
Receipts are comprised of parking fines collected on behalf of the Commonwealth.
3. Disbursements
Total disbursements are comprised as follows:
Department checks issued to:
Deposits into the Department of General Services'

cash management account $ 14,336
4. Balance Due Commonwealth (Department of General Services, Bureau of Police And

Safety, Capitol Police Department) For The Period January 1, 2010 To April 22, 2016
This balance reflects the summary of monthly transmittal reports as settled by the
Department of Revenue. It does not reflect adjustments disclosed by our examination.
5. Examination Adjustment
The examination adjustment represents $1,429 in checks dated from 2011 through 2014
that were found in the ticket office that were stale dated and could not be deposited. These
monies are lost and will not be recovered unless the Department follows up with each payor
on the checks to have new checks issued. Please see Finding No. 1 for further information.
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DAUPHIN COUNTY
NOTES TO THE STATEMENT OF RECEIPTS AND DISBURSEMENTS
FOR THE PERIOD
6. Officials Serving During Examination Period
Richard S. Shaffer served as Superintendent at the Department of General Services, Bureau

of Police and Safety, Capitol Police Department, for the period January 1, 2010 to
June 1, 2013.
Joseph Jacob served as Superintendent at the Department of General Services, Bureau of

Police and Safety, Capitol Police Department, for the period June 1, 2013 to April 22, 2016.
3
DAUPHIN COUNTY
FINDINGS AND RECOMMENDATIONS
FOR THE PERIOD
Finding No. 1 - Severe Lack Of Internal Control Over The Issuance Of Blank Parking
Tickets To Officers And The Number Of Tickets Ultimately Issued To
Violators
Our examination disclosed that there was a severe lack of internal controls over the issuance of
parking tickets. We found that the Department did not reconcile parking ticket books assigned to
Capitol Police Officers to tickets returned to the ticket office, ticket fines were not always recorded
into the computer system, and parking ticket fines were not always deposited. Therefore, we could
not account for or attest to the number of tickets issued during the examination period.
Auditors examined the Departments parking tickets provided to us that were issued for the
examination period. We found that the tickets issued by police were not always issued in numerical
order and we also noted that the tickets were disorganized, with copies of the same tickets in the
bundles. Please see Finding No. 2 for further discussion.
The Capitol Police Department Duty Manual states:
The Capitol Police Ticket Office is responsible for the collection of fines associated
with tickets and citations issued by the Capitol Police for parking violations.
Payments for the tickets are in the form of cash, check or money order. The ticket
clerk enters and maintains records for the collection process in an automated
records management application that provides for the control, accountability and
tracking of tickets and citations according to ticket office procedures and
accounting principles. The system generates balance sheets for monies collected
and also generates receipts to customers. The policy also requires:
The Ticket Clerk shall maintain a balance log or ledger that identifies balance,
money collected from parking ticket.
The Ticket Clerk shall maintain a copy of all receipts for parking tickets
received.
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DAUPHIN COUNTY
FOR THE PERIOD
Violators (Continued)
In addition, the Capitol Police Department Duty Manual 1 states:
Ticket Books procured by the bureau for the enforcement of parking violations
by Capitol Police Officers contain a series of twenty-five sequentially numbered
tickets. Ticket books must be issued in sequential order and each ticket contained
within the ticket book is to be accounted for.
The Capitol Police Department Duty Manual 2 further states:
The following procedure will be used for the assignment of ticket books to Capitol
Police Officers in the Capitol Complex for the accountability and tracking of
tickets/ticket books in accordance with Ticket Office procedures:
The ticket clerk makes assignment of ticket books to Capitol Police Officers.
When the Capitol Police Officer is assigned a ticket book, this assignment is made
via the Ticket Book Control Log Sheet. This sheet attests to the ticket number
sequence and the issue date of the ticket book. The Officer is required to sign the
Ticket Book Control Log Sheet attesting to acceptance of the ticket book. The
Officer provides the Ticket Clerk with the original sheet. This sheet is utilized by
the Ticket Clerk for the accountability and tracking of tickets contained within the
issued book.
It is the responsibility of the officer assigned a ticket book to judiciously account

for all tickets in his/her assigned book. This policy will be strongly enforced and
must be adhered to. The Ticket Clerk will return any ticket that is not properly
accounted for or improperly filled out to the Officers supervisor for corrective
measure.
1
The Capitol Police Department Duty Manual; General Order 6.4 Parking Enforcement; Section 6.4.9 Ticket
Office
2
The Capitol Police Department Duty Manual; General Order 6.4 Parking Enforcement; Section 6.4.10
Assignment of Ticket Books.
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DAUPHIN COUNTY
FOR THE PERIOD
Because the Department did not have any internal controls over the issuance of blank tickets to
officers, which was in direct violation of the Capitol Police Department Duty Manual, we were
unable to obtain a population of parking tickets issued during the examination period. Therefore,
we were unable to perform a reconciliation with any certainty as to the number of tickets issued,
returned, and paid. We performed the following reconciliation to determine the number of tickets
on hand that were issued during the examination period. Our reconciliation revealed a variance of
approximately 307 tickets that could not be accounted for by the Department as shown in the
following table. However, because we could not determine the number of tickets issued, the
numbers listed in the Number of Issued Tickets column below may be understated, which would
affect the calculated variance of 307 tickets.
Auditor Capitol
Number Number General Police
of Issued of Voided Unissued Ticket Ticket
Year Tickets Tickets Tickets Totals Totals Variance
2010 780 78 - 858 858 -

2011 1,026 115 - 1,141 1,156 (15)
2012 897 116 - 1,013 1,279 (266)
2013 867 146 - 1,013 1,013 -
2014 536 59 2 597 597 -
2015 449 14 - 463 475 (12)
2016* 82 9 - 91 105 (14)
Total 4,637 537 2 5,176 5,483 (307)
* The 2016 data is through April 22, 2016. The Department stopped issuing tickets on May 5, 2016 due
to the discovery of the severe problems noted during the audit and described in this report. The
Department resumed issuing tickets on November 7, 2016.
Since the Department did not have control over the issuance of blank parking tickets to officers, it
is possible that fines were collected for the 537 voided tickets and the additional 307 tickets that
the Department stated were issued and did not remit the funds to the Department of Revenue.
Additional fines could have also been collected for additional tickets that may have been issued
and not included in the chart above due to the failure of the Department to implement internal
controls over the issuance of parking tickets to officers. The Department did not properly
implement the internal control procedures related to the issuance of parking tickets required by the
Capitol Police Department Duty Manual.
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DAUPHIN COUNTY
FOR THE PERIOD
We performed an additional reconciliation to determine the amount of money that was to be

collected by the Department during the examination period. Our reconciliation found that
approximately 4,637 parking tickets were issued during the examination period (see chart on page
6). Based on the approximate number of tickets issued, we determined that there was a balance
due to the Department of $23,185 (4,637 tickets multiplied by $5 fine) for the examination period.
Our examination found that the Department only deposited $14,336 in parking fines and there was
an additional $1,429 in checks dated from 2011 through 2014 that were found in the ticket office
that were stale dated and could not be deposited. Therefore, our reconciliation revealed a variance
of $7,420 between the amount due to the Department and the collections for the examination
period. This difference could not be accounted for by the Department as shown in the following
table:
Auditor General Capitol Total

Number Fine Calculated Police Amount
of Issued Per Amount Due Deposit Stale**
Year Tickets Ticket* Capitol Police Amount Checks Variance
2010 780 $ 5.00 $ 3,900 $ 4,371 $ - $ (471)
2011 1,026 $ 5.00 5,130 4,071 5 1,054
2012 897 $ 5.00 4,485 2,105 528 1,852
2013 867 $ 5.00 4,335 - 807 3,528
2014 536 $ 5.00 2,680 - 89 2,591
2015 449 $ 5.00 2,245 - - 2,245
2016 82 $ 5.00 410 3,789 - (3,379)
Total 4,637 $23,185 $14,336 $1,429 $ 7,420

* Fines not paid within 48 hours are increased to $6. However, we could not determine the number of tickets
that were not paid within 48 hours, and we used $5 for these calculations. If the parking ticket remains
unpaid after 30 days, a citiation is to be issued and sent to the local magisterial district judges office for
collection; however, collections made by the local magisterial district judges office would not be recorded
by the Capitol Police Department.
** A check is considered to be stale when it is outstanding for a period of six months or more. A bank is not
obligated to pay a stale check.
7
DAUPHIN COUNTY
FOR THE PERIOD
We could not determine if the variance of $7,420 calculated above as due the Department was
actually collected by a member or members of the Department and this amount is based solely on
available records. As noted above, it is also possible that there were more tickets issued and more
parking fines collected during the examination period which similarly could not be accounted for
by the Department. The large decrease in the annual number of tickets issued from 2011 through
2015, and particularly after 2013, is an indicator that the likelihood that additional tickets and
collections remain unaccounted for by the Department is increased.
A good system of internal controls ensures that:
All blank tickets assigned to Capitol Police Officers are properly accounted for and
reconciled to tickets issued and returned to the office. Any discrepancies should be
immediately investigated and resolved.
All tickets and collections are recorded in the computer system the same day they
are received.
All tickets within an assigned ticket book are issued in sequential order and each
ticket contained within the ticket book is to be accounted for by the Department.
Without a good system of internal control over tickets issued by the office, the possibility of funds
being lost or misappropriated increases significantly. The deficiencies described above contributed
to an environment that is conducive to fraud.
Recommendation
We strongly recommend that the department establish and implement an adequate system of
internal controls over parking ticket procedures, including fully complying with Capitol Police
Department Duty Manual, as noted above. It is imperative that the Department maintain adequate
control over parking tickets in order to minimize the possibility of the loss or theft of funds.
8
DAUPHIN COUNTY
FOR THE PERIOD
Managements Response
The Department of General Serices and Capitol Police Department Management responded as
follows:
Management agrees with this finding. Management has addressed this finding
through the implementation of a new ticket book issuance process. The new ticket
book issuance process is as follows All officers responsible for issuance of
parking tickets must report to the Security Administration Office to sign out a ticket
book. Officers must fill out a ticket log which includes the ticket numbers within
the ticket book, the officers name, badge number, signature, and date issued. The
ticket clerk then adds this information to an Excel spreadsheet, where each ticket
number is tracked. When a ticket is issued, the white copy is left on the violators
car, and the yellow copy is turned in to a shift supervisor. The supervisor must
ensure the ticket has been properly recorded in the Capitol Police information
technology solution, In-Synch, before returning the ticket to the Security
Administration Office at the end of each shift. Once the ticket is received in
Security Administration, the ticket clerk inputs the ticket information into the Excel
spreadsheet and also into the ticket module of In-Synch. If a ticket is received by
the Security Administration Office out of sequential order, the ticket clerk contacts
the shift supervisors to investigate the misordered ticket. All unissued ticket books
are maintained in the Security Administration Office in a secure location.
All prior ticket books were collected and have been stored in a secure location until
they can be destroyed in accordance with records retention policy. Brand new ticket
books and receipt books were purchased and have been used since tickets started to
be issued again on November 7, 2016.
Auditors Conclusion
During our next examination, we will determine if the office complied with our recommendation.
9
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 2 - Severe Lack Of Internal Control Over Receipts
The Capitol Police (Department) issues parking tickets to parking ticket offenders in and around
the Capitol Complex. A parking offender is fined $5 for a parking violation. If the offender fails
to pay the ticket fine within 48 hours, the fine increases to $6. If the parking ticket remains unpaid
after 30 days, a citiation is to be issued and sent to the local magisterial district judges office for
collection. The Department had a ticket clerk that was responsible for all aspects of collecting,
recording, and remitting of all parking ticket fees.
Our examination revealed that the ticket clerk failed to perform her job duties appropriately. We
made numerous attempts to schedule a meeting with the ticket clerk to commence our examination,
with our first attempt being made in October 2015. However, the ticket clerk continually postponed
the start of the examination by providing either a professional or personal reason for postponement
a few days before the agreed upon meeting date. The ticket clerk retired suddenly just prior to the
eventual commencement of our examination on May 5, 2016.
Our examination disclosed the following deficiencies in the internal control over receipts:
Cash receipts were not recorded and deposited on the same day as received. We
cited the issue of receipts not always being deposited on the same day as collected
in the prior examination for the period January 1, 2006 to December 31, 2009. The
current examination found that this issue was not corrected. As stated in Finding
No. 3, the office could not locate receipts and deposit slips. Department staff found
boxes of tickets, some having cash and checks attached from 2011 to 2016 without
corresponding computer-generated receipts. The Department was able to deposit
$2,640 in cash and $97 in checks that were found in the boxes in May 2016. In
addition, the boxes contained $1,429 in checks dated between 2011 and 2014 that
could not be deposited because they were stale. A review of the offices records
found that no parking ticket collections had been recorded since
September 11, 2012.
The ticket clerk was the only person who had the combination to the safe during
her employment and Department staff had to break into the safe after her retirement.
The office found $1,052 in cash from the 2011 to 2014 time period in the safe. The
$1,052 in cash was deposited into the bank on May 16, 2016.
The Department could not provide us with accurate records of receipts and deposits.
All summaries, reports, and documents provided by the Department were either
inaccurate, contained incomplete information, or were contradictory to what we
found. Therefore, we could not rely on the information provided to complete our
testing. Refer to Finding No. 3 for additional details.
10
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 2 - Severe Lack Of Internal Control Over Receipts (Continued)
The ticket clerk did not maintain a record of citations issued. As a result, we could
not determine if citations for unpaid tickets were submitted to the local magisterial
district judges office for collection.
Because of these issues, we were unable to determine if the Department properly collected,
recorded, and remitted all monies due to the Commonwealth.
A good system of internal controls ensures that:
All monies collected are receipted and deposited intact on the same day as
collected.
Access to the Departments safe in the ticket office should be secured. More than
one Department staff member should have the combination to the safe. A log of
entry to the safe should be kept for anyone entering the safe including the time and
signature of the person accessing the safe. Contents of the safe should be reviewed
weekly to ensure that all funds are deposited timely. Additionally, a security camera
that records all activity in the area where the safe is located, with the video footage
accessible by Department officials other than those with access to the safe and not
accessible by those with access to the safe, would be an additional internal control
that could be considered.
All records are complete, accurate, and properly maintained and made available for
examination. Receipt ledgers should be footed for mathematical accuracy and
reconciled to collections at the end of each day. The validated deposit slip should
be reconciled to the receipts by someone other than the person preparing or making
the deposit.
All unpaid parking tickets are properly monitored and citations are issued as needed
to ensure that all fines are collected.
Without a good system of internal controls over funds received by the Department, the possibility
of funds being lost or misappropriated increases significantly. These deficiencies contributed to an
environment that is conducive to fraud.
These conditions existed because the office failed to establish adequate internal controls over its
receipts.
11
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 2 - Severe Lack Of Internal Control Over Receipts (Continued)
Recommendation
We strongly recommend that the Department establish and implement an adequate system of
internal controls over receipts, as noted above. It is imperative that the Department maintain
adequate control over receipts in order to minimize the possibility of loss or theft of funds.
follows:
Management agrees with this finding. Management has addressed this finding by
relocating the ticket office into the Security Administration Office, where there was
already a financial management structure in place and by developing new business
processes related to the deposit and accounting of ticket fees. To ensure the ticket
operation was appropriately staffed and to create greater segregation of duties, the
DGS Executive Team relocated the ticket collection functions to the Security
Administration Office where there was already an established management
structure in place to handle secure badging. Co-locating these functions allows for
the badging clerk to serve as a full-time back up to the ticketing clerk (and vice
versa) and both to be managed by a third employee. New financial control processes
require written receipts for every payment received. All Cash is deposited weekly
and checks are being deposited bi-weekly. Monthly audits are completed by
separate staff from the DGS Bureau of Financial Management. All tickets, receipts,
deposit documentation, and internal audit documentation will be maintained in
accordance with records retention policies. Citations are now issued by the officers.
Auditors Conclusion
During our next examination, we will determine if the office complied with our recommendation.
12
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 3 - Missing Records
Our examination disclosed that the following records could not be located and were unavailable
for review:
All daily and monthly financial reports for the period June 1, 2012 to
April 22, 2016.
All computer generated receipts for the period June 1, 2012 to April 22, 2016.
All manual ticket receipts and manual ticket receipt logs for the period
January 1, 2010 to April 22, 2016.
All deposit slips for the period August 16, 2011 to April 22, 2016.
Because of the missing records, we could not determine if the Department properly collected,
recorded, and remitted all monies due to the Commonwealth.
Good internal accounting controls ensure that all records are properly accounted for and
maintained. In addition, all documentation should be retained until audited by the Department of
the Auditor General.
Without a good system of internal controls over record retention, the possibility of funds being
lost or misappropriated increases significantly.
This condition existed because the office failed to establish and implement an adequate system of
internal controls over records. These deficiencies allowed records to be unavailable for extended
periods of time without detection by Department management, which significantly increases the
risk of fraud.
Recommendations
We recommend that the office establish and implement procedures to ensure that all records are
properly accounted for and maintained. In addition, all documentation should be kept until audited
by the Department of the Auditor General.
13
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 3 - Missing Records (Continued)
follows:
Management agrees with this finding. Management has addressed this finding as
noted above in response to Finding 1 and Finding 2: through the implementation of
new business processes requiring specific ticket book and ticket recording
procedures as well as accurate and detailed financial records for each ticket
transaction. All related records will be retained, managed, and secured. In addition
to the controls referenced above, if the violator does not take the written receipt,
the receipt will be maintained with the ticket copies. Each receipt includes the
receipt number, method of payment (i.e. cash, check, or money order), amount
received, date ticket was paid, ticket number, and check or money order number if
applicable. The receipt number is also written on the top right corner of the ticket
to easily link the receipt to the paid ticket. Transmittal and deposit information are
maintained in Excel and reviewed by ticket office staff and the DGS Bureau of
Financial Management during monthly audits. Bi-weekly reviews are also
scheduled with the Deputy Superintendent.
Auditors Conclusion
During our next examination, we will determine if the office complied with our recommendations.
14
DAUPHIN COUNTY
FOR THE PERIOD
Finding No. 4 - A Ticket Clerk Was Responsible For Performing Nearly All Functions Of
The Parking Ticket Operation Without Management Oversight
Our examination found that the former ticket clerk in the Capitol Police Department, who retired
just prior to the commencement of this examination, was solely responsible for accounting for
ticket operations without any oversight. The former ticket clerk was solely responsible for
performing the following functions:
Issuing blank parking ticket books to Capitol Police Officers and maintaining
the ticket book control log sheet to ensure accountability over all tickets.
Reconciling all issued tickets returned to the ticket office with the individual
officers ticket control log sheet to ensure that all tickets are accounted for and
maintained.
Preparing citations to be submitted to the local magisterial district judges office

for any unpaid partking tickets after 30 days.
Collecting cash, entering collection information into the computer system, and
issuing and retaining receipts.
Preparing deposit slips.
Making the deposit.
Reconciling the validated deposit slips to the accounting records.
Summarizing accounting records including the ledger of parking ticket

collections and balance sheet.
As noted in the prior findings, the ticket clerk was not adequately performing these duties.
A good system of internal control requires adequate segregation of duties.
15
DAUPHIN COUNTY
FOR THE PERIOD
The Parking Ticket Operation Without Management Oversight (Continued)
In order to achieve adequate segregation of duties, one employee should not have custody of cash
and at the same time maintain the accounting records for the cash, make deposits, and reconcile
the validated deposit slips to the accounting records. These duties should be segregated and rotated
daily. As an alternative control, someone independent from maintaining the accounting records
and handling cash should review the employees work on a daily basis. The reviewer should sign
and date the records and documents reviewed.
Without adequate segregation of duties, the possibility of funds being lost or misappropriated
increases significantly. Also, these deficiencies contributed to an environment that is conducive to
fraud.
This condition existed because the ticket clerk was not supervised and the clerks work was not
reviewed as required in the Capitol Police Department Duty Manual 3 which states:
Ticket Office responsibilities are managed by the Ticket Office clerk and
supervised by the Deputy Superintendent. Ticket office clerk reports directly to the
Deputy Superintendent. Monies for deposit are reviewed and verified by the
Deputy Superintendent.
The Deputy Superintendent shall conduct a quarterly accounting audit of Ticket

Office cash activities.
We requested copies of the 25 required quarterly accounting audit reports, but the Department only
provided us with two reports from 2012, four reports from 2013, three reports from 2014 and four
reports from 2015. The reports state that The audit revealed that all funds are properly accounted
for and a daily transfer balance of twenty dollars ($20.00) exists. However, as shown in the table
on page 7, the Capitol Police Department did not record or deposit any ticket office funds for
several years, including the entire 2013, 2014 and 2015 years. Therefore, we consider it reasonable
to question the validity of these quarterly accounting audits provided by the Department and
whether any audit procedures were actually performed at all.
3
The Capitol Police Department Duty Manual; General Order 5.7 Fiscal Management; Section 5.7.3- Procedure;
Part C Collection of Capitol Police Parking Fines.
16
DAUPHIN COUNTY
FOR THE PERIOD
Recommendations
We recommend that the department provide for greater segregation of duties within the office.
This can be done by cross-training personnel and rotating job functions that include the handling
of cash and maintaining the accounting records for the cash. As an alternative and/or additional
control, someone independent from the handling of cash and the accounting records should review
the employees work at the end of each day. The reviewer should sign and date the records and
documents reviewed.
follows:
Management agrees with this finding. Management has addressed this finding
through relocation of the ticket office to the Security Administration Office as
described on page 21.
All ticket office functions are no longer under control of a single employee. In
August, 2016, the Department of General Services executive team, in collaboration
with Capitol Police Department management, began reviewing the issues found in
the parking ticket operations. They ultimately decided to move the Capitol Police
Parking Ticket Operation from the Capitol Police Department to the Department
of General Services (DGS), Security Administration Office. The decision to move
the ticket operation to the Security Administration Office was made, in part,
because there was an existing financial transaction process with controls already
established within the Security Administration office for the collection of fees
associated with the distribution of Commonwealth ID and Access badges. Because
there was already a management structure in place, DGS opted to update and
reclassify the staff person responsible for the distribution of ID badges to ticket
officers. This staff person is now responsible for parking ticket and badge
operations. The reclassification for this position was effective December 23, 2016.
To ensure the ticket operation was appropriately staffed, and to aid in the
segregation of duties, the DGS Executive Team decided to hire a full-time back up
to the ticketing officer and have both staff managed by a third employee. DGS is
currently working to put this into place. As an interim step, as needed, the manager
for the Property Administration Office provides back-up when needed.
17
DAUPHIN COUNTY
FOR THE PERIOD
Managements Response (Continued)
The DGS Executive Team believes that an adequate segregation of duties can be
achieved by ensuring that both employees are cross trained and split duties
appropriately. The functions of the ticket office will be checked monthly during the
Department of General Services Bureau of Financial Managements reconciliation
as well as the Departments Deputy Superintendents bi-weekly inspections. The
review will be documented with the persons initials and date of review. The Deputy
Superintendent intends on performing bi-weekly reviews of the office in addition to
his supervisory role during day-to-day business.
Auditors Conclusion
During our next examination, we will determine if the office complied with our recommendations.
18
DAUPHIN COUNTY
SUMMARY OF PRIOR EXAMINATION RECOMMENDATION
FOR THE PERIOD
Summary Of Prior Examination Recommendation
During our prior examination, we recommended that the department:
Deposit all receipts at the end of each day as required by good internal
accounting controls.
Our current examination found that the office did not comply with our recommendation. Please
see the current year Finding No. 2 for additional information.
19
DAUPHIN COUNTY
SUMMARY OF EXAMINATION FINDINGS DISCUSSION REGARDING PROCEDURES
IMPLEMENTED SUBSEQUENT TO EXAMINATION PERIOD
FOR THE PERIOD
In December 2016, we held discussions with parking ticket office staff to obtain information
regarding the revised procedures implemented by the ticket office. Below is a summary of the
information provided.
Violators
The ticket office has developed a ticket book log that identifies each specific ticket book assigned
to a specific officer. The Office staff stated that they now enter all tickets into an Excel spreadsheet
and the offices computer system and all tickets will be retained until audited. All paid tickets will
be issued a receipt which includes the parking ticket number and other information in order to
identify the specific parking ticket that is being paid.
Finding No. 2 - Severe Lack Of Internal Control Over Receipts
The ticket office has developed procedures to deposit cash collections weekly and check
collections every two weeks due to the very low daily collections from parking tickets. The ticket
office will generate and maintain accounting reports that correctly reflect all deposits and ensure
an adequate accounting trail. Issued tickets along with their corresponding receipt will be
reconciled, organized, and maintained until audited. Validated deposit slips and revenue
transmittals will be retained until they are audited. Additional oversight by Department of General
Services, Bureau of Financial Management performing monthly reconciliations will help ensure
deposits are being performed as required. Officers are now responsible for issuing citations for any
unpaid parking tickets.
Finding No. 3 - Missing Records
The ticket office has developed a ticket book log that identifies the specific ticket book assigned
to each specific officer. The ticket office staff stated that they now enter all tickets into an Excel
spreadsheet. All paid tickets will be issued a receipt that includes the parking ticket number and
other information in order to identify the specific parking ticket that is being paid. Data entered
into Excel will be reviewed by ticket office staff and will be further validated by DGS Bureau of
Financial Management during their monthly reconciliations as well as their Deputy Superintendent
during weekly inspections. All accounting records will be retained until audited.
20
DAUPHIN COUNTY
SUMMARY OF EXAMINATION FINDINGS DISCUSSION REGARDING PROCEDURES
IMPLEMENTED SUBSEQUENT TO EXAMINATION PERIOD
FOR THE PERIOD
The Parking Ticket Operation Without Management Oversight
All ticket office functions are no longer under control of a single employee. In August, 2016, the
Department of General Services executive team, in collaboration with Capitol Police Department
management, began reviewing the issues found in the parking ticket operations. They ultimately
decided to move the Capitol Police Parking Ticket Operation from the Capitol Police Department
to the Department of General Services (DGS), Security Administration Office. The decision to
move the ticket operation to the Security Adminstration Office was made, in part, because there
was an existing financial transaction process with controls already established within the Security
Administration Office for the collection of fees associated with the distribution of Commonwealth
ID and Access badges. Because there was already a management structure in place, DGS opted to
update and reclassify the staff person responsible for the distribution of ID badges to ticket officers.
This staff person is now responsible for parking ticket and badge operations. The reclassification
for this position was effective December 23, 2016.
To ensure the ticket operation was appropriately staffed, and to aid in the segregation of duties,
the DGS Executive Team decided to hire a full-time back up to the ticketing officer and have both
staff managed by a third employee. DGS is currently working to put this into place. As an interim
step, as needed, the manager for the Property Administration Office provides back-up when
needed.
The DGS Executive Team believes that an adequate segregation of duties can be achieved by
ensuring that both employees are cross trained and split duties appropriately. The functions of the
ticket office will be checked monthly during the Department of General Services Bureau of
Financial Managements reconciliation as well as the Departments Deputy Superintendents bi-
weekly inspections. The review will be documented with the persons intials and date of review.
The Deputy Superintendent intends on performing bi-weekly reviews of the office in addition to
his supervisory role during day-to-day business.
21
DAUPHIN COUNTY
REPORT DISTRIBUTION
FOR THE PERIOD
This report was initially distributed to:
The Honorable Eileen H. McNulty

Secretary
Pennsylvania Department of Revenue
The Honorable Thomas B. Darr

Court Administrator of Pennsylvania
Supreme Court of Pennsylvania
Administrative Office of Pennsylvania Courts
The Honorable Curtis Topper

Secretary
Department of General Services
Superintendent Joseph Jacob

Capitol Police Department
The Honorable Jeff Haste

Chairperson of the Board of Commissioners
The Honorable Timothy L. DeFoor

Controller
Deborah S. Freeman, Esquire

District Court Administrator
This report is a matter of public record and is available online at www.PaAuditor.gov. Media
questions about the report can be directed to the Pennsylvania Department of the Auditor General,
Office of Communications, 229 Finance Building, Harrisburg, PA 17120; via email to:
news@PaAuditor.
22

Pa. Auditor General's Report On Capitol Police Ticket Office

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ATTESTATION ENGAGEMENT

The Honorable Eileen H. McNulty

We attempted to examine the accompanying statement of receipts and disbursements (Statement)

Severe Lack Of Internal Control Over Receipts.

February 21, 2017 Eugene A. DePasquale

Statement Of Receipts And Disbursements..................................................................................1

Notes To The Statement Of Receipts And Disbursements...........................................................2

Findings And Recommendations:

Finding No. 2 - Severe Lack Of Internal Control Over Receipts ...............................................10

Finding No. 3 - Missing Records................................................................................................13

Summary Of Prior Examination Recommendation .......................................................................19

Summary Of Examination Findings Discussion Regarding Procedures Implemented

Report Distribution ........................................................................................................................22

January 1, 2010 to December 31, 2010 $ 4,371

Total Parking Fines Collected (Note 2) $ 14,336

Disbursements to Commonwealth (Note 3) (14,336)

Balance Due Commonwealth (Department) (Note 4) -

Examination Adjustments (Note 5) 1,429

Adjusted Balance due Commonwealth (Department)

The Statement of Receipts and Disbursements provides a summary of receipts and

Receipts are comprised of parking fines collected on behalf of the Commonwealth.

Total disbursements are comprised as follows:

Department checks issued to:

Deposits into the Department of General Services'

4. Balance Due Commonwealth (Department of General Services, Bureau of Police And

6. Officials Serving During Examination Period

Richard S. Shaffer served as Superintendent at the Department of General Services, Bureau

Joseph Jacob served as Superintendent at the Department of General Services, Bureau of

The Capitol Police Department Duty Manual states:

In addition, the Capitol Police Department Duty Manual 1 states:

The Capitol Police Department Duty Manual 2 further states:

It is the responsibility of the officer assigned a ticket book to judiciously account

2010 780 78 - 858 858 -

We performed an additional reconciliation to determine the amount of money that was to be

Auditor General Capitol Total

Total 4,637 $23,185 $14,336 $1,429 $ 7,420

A good system of internal controls ensures that:

Finding No. 2 - Severe Lack Of Internal Control Over Receipts

Finding No. 2 - Severe Lack Of Internal Control Over Receipts (Continued)

A good system of internal controls ensures that:

Finding No. 2 - Severe Lack Of Internal Control Over Receipts (Continued)

Finding No. 3 - Missing Records

Finding No. 3 - Missing Records (Continued)

Preparing citations to be submitted to the local magisterial district judges office

Preparing deposit slips.

Making the deposit.

Reconciling the validated deposit slips to the accounting records.

Summarizing accounting records including the ledger of parking ticket

A good system of internal control requires adequate segregation of duties.

The Deputy Superintendent shall conduct a quarterly accounting audit of Ticket

Managements Response (Continued)

Summary Of Prior Examination Recommendation

During our prior examination, we recommended that the department:

Finding No. 2 - Severe Lack Of Internal Control Over Receipts

Finding No. 3 - Missing Records

This report was initially distributed to:

The Honorable Eileen H. McNulty

The Honorable Thomas B. Darr

The Honorable Curtis Topper

Superintendent Joseph Jacob

The Honorable Jeff Haste

The Honorable Timothy L. DeFoor

Deborah S. Freeman, Esquire