ucso inmate account review final

7/27/2019 UCSO Inmate Account Review Final

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ULSTERCO

UNTYCOMPTROLLERSOFFICE

ElliottAuer

bach,

Comp

tro

ller

Ul

ster C

Inmat

ounty

e Acc

Sheri

unts

Date

f

d: October 3,

2013


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OFFICE OF THE

ULSTER COUNTY COMPTROLLER

P.O. BOX 1800

KINGSTON, NEW YORK 12402

______________________________________________________________________________

October 3, 2013

Dear County Officials:

One of the County Comptrollers Office top priorities is to identify areas where Ulster Countydepartments and agencies can improve their operations and services in order to assist UlsterCounty officials in performing their functions. This includes the development and promotion ofshort-term and long-term strategies to achieve reduced costs, improved service delivery, and toaccount for and protect the Countys assets.

The reports issued by this Office are an important component in accomplishing these objectives.These reports are expected to be a resource and are designed to identify current emerging fiscallyrelated problems and provide recommendations for improvement.

The following Report reviews the Ulster County Inmate Accounts managed by the Ulster CountySheriffs Office. Inmate trust accounts are funds held in trust for individuals who areincarcerated, with any remaining balances returned upon release. The inmate trust accountconsists of cash carried by inmates at time of book-in, cash or money orders received fromrelatives on behalf of the inmates, and checks received from other inmate holding facilities attime of transfer. These monies can be used by inmates for commissary purchases duringconfinement. This review focused largely on the processes for managing cash flows into and outof the Inmate Trust Account.

A copy of this report was provided to UCSO in advance of its release and their comments taken into

consideration in the final draft.

If we can be of assistance to you, or if you have any questions concerning this Report, please feelfree to contact us.

Respectfully submitted,

Ulster County Comptroller

Elliott Auerbach

Comptroller

Joseph Eriole, Esq.

Deputy Comptroller

Ronald E. Clum, CPA

Dir. of Internal

Audit &Control


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ULSTER COUNTY SHERIFF INMATE ACCOUNTS

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I. AUTHORITY___________________________________________________________

The Office of the County Comptroller conducted this review and produced this Report inaccordance with the Comptrollers authority as set forth in Article IX, Section 57, firstparagraph, and Sections 57(A) and (G) of the Ulster County Charter, as well as applicable State

laws, rules and regulations.

II. BACKGROUND _______________________________________________________

At time of incarceration persons in custody are stripped of all personal belongings which arestored until release. If at this time the inmate is in possession of any monetary items, which mayconsist of cash, payroll checks, and any government issued checks, the funds are deposited intothe Ulster County Sheriff Inmate Account, a bank account, in which subsidiary accounts trackeach individuals activity. The Ulster County Sheriffs Office (UCSO) implements a softwareprogram, CORE, supplied by Aramark, which aids in the tracking of the individual inmateaccount activity.

During incarceration, an inmate may charge their account to purchase items not normallyprovided by the jail, including additional food, toiletries, and services such as haircuts. Fundsmay be added to an inmates account by third parties through the mail or deposited via the web,phone, or a KIOSK dedicated to this purpose located at the jail. Once released, an inmate isrefunded their remaining balance by means of a debit card. As of December 31, 2012, UlsterCounty had 1,346 inmate accounts totaling $25,485.

III. OBJECTIVES AND SCOPE______________________________________________

The general objectives for this review were to provide reasonable assurance that:

1) Inmate account collections are appropriately safeguarded and deposited in an accurateand timely manner

2) Inmate transactions are properly recorded to the inmates subsidiary accountaccurately and timely

3) Expenditures were accurate according to the inmates request4) Adequate controls are in place to fully account for all activity through the inmate

accounts5) Inactive inmate accounts are monitored and transferred to the New York State

Comptrollers Office as unclaimed funds6) Bank reconciliations are being performed, reviewed, and tied to the subsidiary

accounts on a monthly basis

The scope of this review included transactions for the year ended December 31, 2012.


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IV. THE PROCESS Cash In ________________________________________________

When persons held in custody are brought to the jail they go through processing and booking. Atthis time, if the person in custody is in possession of cash, payroll checks, or a governmentissued check they are confiscated and recorded in a log, known as the Inmate Money

Accountability Sheet. This documents the date, amount, inmate name, and is initialed by theintake supervisor and a witness. During this process the inmates cash deposit is registered intothe CORE software system detailing: inmates name, number, date of birth, date of intake,transaction description, and amount deposited. Any cash confiscated are then placed in anenvelope with the corresponding information identifying the inmate and is then placed into adrop safe until deposited. Inmates are provided a receipt at time of booking.

The following morning, staff from the Civil Division, who are the sole custodians of the key forthe safe, retrieves the money from the drop safe, verifies the cash, signs the Inmate MoneyAccountability Sheet, and prepares the deposit which is placed in a secured numbered bank bag.These funds are then deposited into the bank account by a deputy officer.

Once the trust account is established for the inmate, funds can be added by means of: (i) depositsinto a centrally located KIOSK, (ii) via a secure website or phone system, or (iii) mailed inmoney orders (on rare occasion cash is mailed and accepted according to Civil staff). Inmatescan also earn income while incarcerated by performing duties which include: laundry, sewing,floor maintenance and working in the kitchen or barber shop. However, no cash exchangeshands when the inmates are compensated, the time is tracked by the correction officer in charge,and the inmate accounts are credited for their time and services accordingly.

During the year ended December 31, 2012 deposits into the bank account totaled $461,075, orapproximately $38,000 per month.

V. THE PROCESS Cash Out

Funds can be released from an inmates trust account for reasons such as commissary purchases,inmate purchases, third party release requests, correctional facility transfers, and inmate releases.Inmates can also be charged for various fines, penalties, and court order judgments.

While confined, inmates have access to a store within the jail, called the Commissary.Inmates may purchase products including hygiene items, snacks, writing instruments, etc., fromthe Commissary if funds are available in their accounts. When an inmate makes a purchase, theCommissary Assistant checks them out with a scanning gun by way of a bar code on their wrist

bands. If the purchase is permitted (i.e., the inmate has sufficient funds and no dietaryrestrictions), a receipt is printed directly from the scanning gun and provided to the inmate. Otherexpenses that are the inmates responsibility and may be charged to their account includepostage, photocopies, haircuts, and property damages.

Inmates may request funds to be sent elsewhere as athird party request. These requests must bein writing on a form called a blue sheet. These blue sheets contain information that should becompleted by the inmate detailing where the money is to be sent, to whom the check is payable,


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a brief description of the reasons for disbursement, and a signature authorizing the check. Once arequest is completed, the Corrections Assistant processes the transaction and delivers therequested check to the inmate to verify the details prior to sealing the envelope and mailing.

Inmates released from incarceration or transferred to another correctional facility, are disbursed

all funds belonging to them. If they are transferred to another correctional facility, a check isissued for the remaining funds in the transferred inmates trust account and delivered with theinmate to the new facility. At the time an inmate is released from serving their sentence they areprovided with a debit card for access to their remaining balance.

In reconciling the subsidiary accounts with the inmate log, as of December 31, 2012, it appearedmore inmate accounts existed than there were inmates held at the facility. This results frominmates leaving the facility without waiting to receive their payouts. Inmate accounts with abalance which have been inactive for more than two years are turned over to the New York StateComptrollers Office as unclaimed funds.

During the year ended December 31, 2012, disbursements out of the bank account totaled$474,581, or approximately $40,000 per month.

VI. THE ACCOUNT

The inmate account is currently maintained through a trust fund software system implemented byAramark, called CORE. Prior to COREs implementation, which started in September 2012,UCSO used another Aramark software, ACTFAST. Hereafter, both will be referred to as thesoftware system.

The current software system is a vital part of the entire Commissary structure and interfaces with

several different components, such as the KIOSK and web-based transaction system(TouchPay), UCSOs Bank of America account, and the Commissary account from whichpurchases are made. On a daily basis, Civil Staff prints TouchPay cash drawer reports andcompares them to the deposits in the Bank of America account to ensure all monies transferredproperly. For the intake drawer, Civil Staff prints the activities to ensure that all monies arereceived and placed into the drop safe during the previous 24-hour period.

VII. SCOPE AND METHODOLOGY __________________________________________

This review evaluated the internal controls and processes over the administration and use of theInmate Trust Fund for the period of January 1, 2012 through December 31, 2012. The

methodology included inquiry, observation and testing of relevant documents over the following:

1) Evaluated controls and processes over cash receipts (mail and inmate credits andelectronic Touchpay deposits) and tested a random sample of transactions

2) Evaluated controls and processes over cash disbursements (3rd party releases, inmatereleases, and vendor payments) and tested a random sample of transactions

3) Analyzed the Bank of America Inmate Trust Fund Statements for the year 2012 to tie theabove samples to the bank statement


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4) Evaluated cash receipting, disbursing, and reconciliation processes for inmate accountsVIII. FINDINGS AND RECOMMENDATIONS ___________________________

Below is a summary of findings made during this review followed by recommendations which

should be considered by UCSO administration. The majority of the findings relate to internalcontrol issues; mainly separation of duties and improved account oversight, and the need toimplement or update certain documenting procedures.

Finding #1: Bank Reconciliations not Prepared

Bank reconciliations are a report which compares the bank balance, per the bank statement to theaccounting records kept in the subsidiary ledger of an account. Preparation of a bankreconciliation helps in identifying errors in the accounting records at any given point in time. Theliquidity of cash increases the inherent risk. Due to its vulnerable nature, all necessary internalcontrols should be implemented to reduce the risk and help uncover any irregularities. The

reconciliation of bank account balances with accounting records is a necessary element of aneffective internal control system for cash. This check should be done as a routine procedure atthe end of every month, and signed by management, in order to ensure accuracy andaccountability for all cash transactions.

Our review identified that bank reconciliations were not being prepared due to conversion to thenewer software system.

Our review further identified outstanding checks dating back to 2010. These outstanding checksare an indication that disbursements were not properly issued or received and may result in a lossor claim. Having stale dated checks on the account erroneously reduces the cash, as these checks

are no longer negotiable at this point in time.

Recommendation #1: Since our initial visit, UCSO staff reached out to the software companyand has been working closely with them in order to prepare bank reconciliations that agree to thesoftware system. As of June 2013 the account appears to be off approximately $300 and may beattributed to inaccuracies during the transition to the newer software as well as timing issues. Werecommend that UCSO continue its efforts to complete and forward these bank reconciliations toour Office along with the preparer and supervisors signature. They should also identify andcorrect old balances so that the total of the inmate accounts tie into the reconciled cash balance atthe end of each month. The requirement for dual signature and reviews on the bankreconciliation will act as an additional safe guard over the cash handling process

To ensure that the account is current we recommend that UCSO staff routinely reconcileoutstanding checks and either void and reissue to the payee or turn the funds over to the NYSComptrollers Office as unclaimed funds.


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Finding #2: Third Party Inmate Release Request

When inmates request money to be disbursed from their account they must submit the request inwriting on a blue sheet. This form documents the purpose, the payee, the amount, and has anarea for the inmates signature. This blue sheet is also used for non-cash disbursement related

requests such as visitation and legal material requests. The form is provided to the CommissaryAssistant responsible for preparing and delivering the check with an envelope to the inmate fortheir review and to seal it for postage, handled by jail staff. This sheet is an important aspect ofthe disbursement of monies as it documents the requested payee and dollar amount.

During our cash disbursement testing, we selected and reviewed a number of third party inmaterequests along with other disbursement types. We attempted to trace the inmate disbursementsback to the blue sheets to verify the request made by the inmate and the accurate disbursementout of their accounts. Of our sample, only 38% had blue sheets which supplemented the inmaterequested disbursements. This may be a consequence of not having a sufficient filing system inplace. Blue sheets were provided in a box with a number of years mixed together and in no

apparent order.

When we organized the blue sheets in month and year order, we examined the months ofJanuary, April, September, and November of 2012, to determine if these blue sheets were signedby the inmates. This test revealed that 13 of the 60 were not signed, or a 22% error rate.

Recommendation #2: The finding above concerns us in two areas: (i) lack of supportingauthorization for the inmate disbursements and (ii) lack of a well-maintained filing system.

Authorization - As discussed above the blue sheet documents the inmates request to have fundsremoved from his/her trust account. Without this documentation the UCSO is susceptible to

accusations from inmates as to the authorization for disbursement and/or the dollar amountdisbursed. We recommend that these blue sheets be filled out in their entirety and include allrequired signatures which appear on the form, which would include a space for the officersacknowledgment of receipt of the request. It is also advised that the blue sheets contain the checkstubs produced as it is the sole source of justification for the disbursement.

We also recommend that a certifying signature section be added to the form where the inmateacknowledges their review of the check for discrepancies and certifies that it was enclosed in anenvelope for postage to the requested payee. The certifying signature would be sufficientdocumentation to supplement a dispute from an inmate against improper payment.

Filing System - As noted, our Office was not able to review many of the requested blue sheetseither because these forms were not properly filed, or the forms were never completed by theinmate. We were, however, informed that during 2013 a new filing system was implementeddue to staffing changes, and currently, the blue sheets are filed in a folder by the month thetransaction takes place.


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It was also discussed that in the future, blue sheets may be scanned into a computer generatedfile and placed within the inmates folder. These folders contain all pertinent information aboutthe inmate while incarcerated at the Ulster County Jail.

We recommend that either system employed by the Sheriffs Office be capable of retrieving the

blue sheets upon request and are filed in accordance to protocols in place for the implementedsystem. We also recommend that the procedures for filing under the new system are incorporatedinto the Sheriffs General Orders (UCSOs procedure manual) to act as a guide for new hires oractive personnel responsible for this job duty.

Finding #3: Concerns with Cash Disbursement

Cash disbursements usually have the highest risk for error and opportunity for themisappropriation of funds. Sufficient internal controls over the accounts payable function includematching authorized purchases to receipt of goods or services and vendor invoices. Theobjectives of internal controls over cash disbursements are to ensure cash is disbursed only after

proper authorization, and that money is released for valid authorized purposes, and thetransactions are properly recorded.

During the course of this review, we uncovered many disbursements as to which documentationwas missing to support the claims. This was most prevalent with the blue sheets required toinitiate disbursement on the inmates behalf. As mentioned previously, the forms available forour review were significantly lacking essential information as well as authorizing signatures. Themissing information and lack of supervisory approvals for non-inmate purchases was concerningas well, as it made validating those charges difficult. We recognize that the checks had beensigned by authorized signors but it cannot be assumed that the backup was provided at the timeto support the claim. This approval process should be initiated immediately to document the

backup was present and agrees to the amount to be paid.

Another area of concern in regards to cash disbursement function was the use of two separatecheck stocks. In order to guarantee accountability, checks should be written in sequential orderallowing for easy detection of fraudulent or incorrect payments clearing the account.

In testing transactions and reviewing inmates trust accounts, one of the sampled accountsshowed a negative balance due to a timing difference with the system. The individual whom wasreleased from jail had made a purchase the prior day with funds available to them, the next day(prior to a system update) all funds in the individuals account were disbursed, causing theaccount to go negative once the purchase was posted.

Recommendation #3: Review and approval of invoices should be performed by someone whocan verify services rendered, or goods received, so that they can be confirmed to be consistentwith the invoice for payment. In addition, records of the inmates approved transactions shouldbe documented and maintained to support payments. It is further recommended, that the requiredblue sheets be maintained and completed in their entirety with the inmate signature to ensurepayment issuance was authorized. Also, the check stock that is currently in use needs to be inone central location so that employees who need access must sign the stock out and that the


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check sequence remains in order. Furthermore, all transactions (posted and non-posted) must beverified to have cleared the account before funds are released to the inmate before departure.

Finding #4: Concerns with Cash Receipts

A well-designed set of control procedures can provide reasonable assurance misappropriation offunds will be uncovered. Strong internal controls over cash include segregating cash handlingfunctions amongst the three stages of cash management: receiving, depositing and reconciling,amongst separate individuals for each stage of the cash handling process. This internal controlreduces the risk for an employee to misappropriate funds and for those misappropriations to goundetected. For departments that do not have the staffing to implement this control, it may benecessary to rely on compensating controls to mitigate the risk instead, such as increasedmonitoring by management.

While reviewing the cash receipt process, three areas were of concern, summarized below:

1) Inconsistency in maintaining a mail log,2) Untimely deposits, and3) Inconsistencies with the daily deposit

Mail Log - During our review we identified inconsistent maintenance of documenting the itemsan inmate receives through mail. Currently two individuals are responsible for the oversight ofinmate receipts that come through the mail. We examined an Inmate Mail Roster whichdocuments what items an inmate received such as personal letters, photos, legal documents,and/or money (Money Orders, or Cash). Only one of the employees responsible for the cashreceipt function was maintaining this Mail Roster.

The absence of adequate documentation and oversight of the cash receipts via mail interfereswith the capability for an independent verification over the funds received. The documentationinto the mail log is even more critical for the unlikely event cash is received, which we wereinformed does happen on occasion even though it is strongly discouraged. Sufficientdocumentation of cash receipts would allow an independent source to verify that the fundsreceived through the mail reconcile to the mail credits recorded in the software system.

Untimely Deposits - Strong internal controls over cash receipts instruct they be handled in atimely manner and therefore should be deposited within a reasonable timeframe. The risk for lossor theft of cash increases the longer it remains un-deposited.

Our review of the controls over cash receipts identified instances where deposits were madeapproximately 5 business days after the initial posting to the inmates account in the system. Thistiming difference may provide difficulty in reconciling the bank accounts in the future asindicated in finding #1.

Inconsistencies with the Daily Deposit- Our review of the controls over daily deposits identifiedone employee incorrectly processing cash receipts collected from inmates processed throughbooking the prior day. This employee was not preparing the deposit under dual control with the


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intake officer. Instead, the employee was documenting the cash receipts on the CORE systemprintout, maintained control over the cash and later prepared the deposit slip. There were manyinconsistencies with the cash receipts and bank deposits and although the inconsistencies werecorrected, they could have been avoided had the employee carried out the proper controlprocedures and prepared the deposit with the oversight of the intake officer.

The inaccuracies in the reconciliation of cash receipts to deposits, and the risks associated withhandling cash, caused us to expand our scope to include a review of the accountability log. Thislog consisted of an estimated 1,000 intake credits from which we compared the results to thesoftware systems deposit record. This expanded documentation and reconciliation is recapped inTable 1. The reconciliation identified the following:

1) Items had erroneously been entered as mail deposits when they were funds taken atintake processing

2) Items not being entered into the software system, therefore had not been posted to thecorrect inmate account

3) Items being entered directly into the software system, while never being entered inthe accountability logTable #1: Reconciliation of Accountability Sheet to Computerized System

Balances per Computerized Systems:

1st System (ACTFAST) 80,295$

Voided transactions (1,862)

78,433$

2nd System (CORE) 26,033

Voided transactions (352)

25,681

Sub-Total: 104,114

Items entered as mail credits (should have been intake credits) 2,176

Items never entered into the computer system 70

106,360$

Balances per Accountability Sheets:

Total of acccountability sheets 98,808$

Plus: Items entered into systems and not onto sheets 7,552

106,360$


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Recommendation #4: We recommend that a mail log be maintained by all employees who arein charge of receiving and opening the daily mail. This new procedure will monitor and verifythe amounts received through the mail to the software system. During the intake deposit process,we recommend that the civil employee responsible for the cash receipts during booking recordthe amounts received immediately into the accounting system and directly onto the deposit slip,

with the intake officers oversight, to ensure the monies collected agree to the accountabilitysheets, uncovering any variances immediately.

UCSO should document and implement new procedures over the cash receipt process andincorporate the procedures into the Sheriffs General Orders. These procedures should includeguidelines for: cash receipts via mail, emphasizing the use and maintenance of the mail log; anacceptable time frame for the daily deposits to be transacted, strong internal controls wouldsuggest the deposit be transacted within 2-3 business day of the cash receipts; and guidance forthe requirement of dual controls over the cash handling process. Furthermore, UCSO shouldconsider separating accountability logs in relation to intake, bail, and any other form of cashcoming through processing. These logs could be reconciled monthly to tie into the software

systems and errors and/or mistakes could easily be detected.

Finding #5: Lack of Adequate Internal Controls

Internal controls are procedures implemented to ensure the integrity of financial reporting,operations, and compliance within an organization. The use of controls helps prevent errors anddetect fraudulent activity. Internal controls do not guarantee freedom of errors and waste,however, they do provide reasonable assurance that individuals are in compliance with internaland external procedures and regulations.

Our review of the controls in place as they relate to the inmate account identified numerous

internal control weaknesses. It is important to note, however, that at the outset of this review, wewere informed that the procedures concerning the inmate account were in the process of revision,and the findings below may have been addressed since our review.

The primary concerning weaknesses identified during our review are discussed below:

Lack of separation of duties Currently the employee charged with preparing bankreconciliations is also receipting cash and disbursing checks as well as having access tojournal entry capabilities on the account. Additionally, although we have been told thishas been updated, this same individual had signatory authority on the account and hadsigned off on multiple disbursements during the review period.

Lack of authorization or supervision As the procedures appear to stand now,transactions are processed without oversight. There appeared to be no officialdocumentation for journal entries or voided transactions and therefore no authoritativeoversight to process these transactions. Several individuals have access to two separatecheck supplies, and these same individuals also have signing authority. As previouslymentioned, bank reconciliations also have not been reviewed or signed off on.


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Inconsistencies in receipt of mail The mail processing is shared between twoindividuals who engage different methodologies when performing this task. Oneemployee incorporates a log which documents the category of mail (i.e. Personal, Photos,Legal, or Money Order). This log is to protect against disputes that an inmate might bringupon UCSO in accordance to the mail. The other employee, who is an Officer, upon

information and belief, does not prepare such a log. These two individuals are alsoresponsible for entering any funds received into the inmates trust account.

Gaps exist in transaction numbering The computer generated transaction identificationnumbers have many gaps according to the information that was provided. This weaknessin the software leaves it difficult to reconcile a batch of transactions at the end ofprocessing. The system should be able to detect any gaps in a series so that it might alertmanagement to the possibility of missing or misplaced transactions.

Recommendation #5: Separation of duties is significant in establishing adequate internalcontrols as well as documenting the acceptable procedures and policies for employee reference.

We recommend that UCSO continue their development of the control procedures over the inmatetrust account and in doing so address the concerns discussed above. The most essential relatingto security controls that can be built into the software program granting and restricting access toindividuals and their duties, implementing adequate oversights on transactions in the account,employing a mail log that is consistent among employees, and investigating any irregularities intransaction numbering within the computer system.

IX. SUMMARY OF RECOMMENDATIONS

Bank Reconciliations:

Bank reconciliations should be signed and dated by the preparer Bank reconciliations and the supporting documentation should be reviewed and signed

off by a supervisor who has a general understanding of the account reconciled

The supervisor should review the bank statement to identify any unusual transactions orvendors/payees

The UCSO should assign an individual to prepare the bank reconciliation who does nothave any responsibilities over the other cash functions of the office (i.e. receiving cash,depositing cash, entering transaction, voiding transactions, and making journal entries)

Items Dealing with the Blue Sheets

The UCSO should establish an official filing system for the blue sheets in order toretrieve them when required. When it is finalized it should be added to the Sheriffs

General Orders. All blue sheets should be filled out in their entirety and signed by the inmate upon the

initial request

There should be a section added to the blue sheet for the inmates acknowledgment of thepayee and amount to discourage any questioning later on

A section should also be added allowing the overseeing Corrections Officer to sign offverifying acknowledgement of the request.


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All blue sheets should contain the documentation and check stubs attached to justifydisbursements.

Cash Receipt Issues

The Inmate Mail Roster should be completed by the employees responsible for openingthe incoming mail at the Ulster County Law Enforcement Center.

The monetary funds logged on the mail roster should be reconciled every month end withthe accounting system by an independent party.

UCSO should standardize an acceptable time frame for deposits of cash receipts at amaximum of 2-3 business days.

UCSO should implement a procedure that requires deposit slips to be filled out andrecorded into the accounting system for monies received at intake to reduce thediscrepancies over cash receipts and deposits.

UCSO should also consider keeping separate logs for bail and fines paid at the intakedivision so as to be able to tie the Inmate Accountability Sheet directly to the COREsystem by any given date in time.

Other Items

UCSO should contact Aramark to inquire if the current system limitations over assigningtransaction ID numbers could be altered to a sequential numbering system.

UCSO maintain one central location for check stock to ensure adequate control overthese monetary instruments and requested check stocks should be inventoried on a logand signed by the requesting personnel.

All check stubs should have the relevant backup attached to it and managements initialthat authorized it to be paid. They should all be filled in one location in order to maintainsuitable accounting records.

X. CONCLUSION__________________________________________________________

Our primary objective was to ascertain that the cash collected from inmates agreed to theaccounting records kept at UCSO. We further wanted to ensure that proper oversight andadequate controls are in place to prevent UCSO from any unforeseen weaknesses. We arepleased to report that the cash collected di reconcile o the UCSOs accounting.

Our recommendations predominantly deal with strengthening internal controls andmanagements oversight to continue the development of safeguards of the Sheriffs Office andtheir personnel. A copy of this report was provided to UCSO in advance of its release and theircomments have been taken into consideration with the final Report and are attached as

Appendix A.

We wish to thank the officers and staff of UCSO for their cooperation and assistance during thepreparation of this report.


Ulster County Comptroller


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Appendix A:Written Comments of UCSO


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Paul J. VanBlarcum

Sheriff

September 16, 2013

To: Ronald E. Clum

Re: Inmate Accounts Audit

Ron:

The Ulster County Comptroller conducted an audit concerning accountability andcontrols of the Ulster County Sheriffs Office Inmate Accounts. A review of the draft

report issued by the Comptrollers Office did not indicate any misappropriation of inmate

funds by any member of the Sheriffs Office; but did cite some deficiencies concerninginternal controls and offered recommendations for enhancement.

As I have previously stated we have only one Junior Accountant to monitor all inmatefinancial transactions.

Since the issuance of this draft report, I directed Captain Lou Russo to meet with

Corrections Assistant Officer Linda Sloane and Junior Accountant Ms. Laura Romano to

discuss the recommendations offered in this report. I have summarized their discussionsand action taken in response to these recommendations

Summary of Recommendations Section IX pages 10 and 11

Bank Reconciliations page 10

1. Bank reconciliations will be signed and dated by the preparer moving forward2. Sheriff will designate the appropriate level of management to review and sign

bank reconciliations

3. Currently, the Undersheriff reviews all bank statements for the inmate accounts4. Currently, the Junior Account only prepares the bank reconciliation and journal

entries for the inmate accounts; other cash functions are only completed by the

Office of the

SHERIFFUlster County

Fr ank P. Faluotico Jr.

Undersheriff

M ichael O. Freer

Captain / Criminal Division

James R. Hanstein

Superintendent / Corrections Divisi

Area Code 845

Administration 340-380

Criminal Division 338-364

Corrections Division 340-364Civil Division 340-364

Pistol Permits 340-363

Crime Tips Hotline 340-359

Fax (Administration) 331-281Fax (Criminal Division) 340-371

Fax (Corrections/Records) 340-346

Fax (Corrections/Booking) 340-343

Fax (Civil Division) 334-812

Fax (Detectives) 340-358

An Accredited Law Enforcement agency since 1990

Ulster County Law Enforcement Center

380 Boulevard, Kingston, NY 12401

wwwwww..ccoo..uullsstteerr..nnyy..uuss//sshheerriiffff


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Junior Accountant in exigent circumstances. We will continue to establish levels

of accountability.

Items dealing with the Blue Sheets page 10 and 11

1. A bi- monthly filing system has been established. The file will include the signedcarbon receipt by the inmate, the check stub indicating the signatures of the

inmate/Corrections Assistant and the Blue Sheets Inmate Request Form(UCJ-26). The procedure for this filing system will be added to the appropriate

section of the Sheriffs Office Policy and Procedures.

2. When the Corrections Assistant receives a request from an inmate to disbursemoney to a payee, the Corrections Assistant will ensure the UCJ-26 is completedin its entirety and signed by the inmate.

3. Due to the current stock of the UCJ-26, the acknowledgement language will beadded in the future. In the interim, the inmate will initial the section concerning

the amount of money being disbursed to a payee as requested.

4. Signature area for the Corrections Assistant will be added as stated above inresponse to item 3 for the purpose of verifying the inmates acknowledgement offunds to be disbursed to a payee. In the interim, the Corrections assistant will

initial in the area of the payee and sign below the inmates signature.

5. All documents concerning the disbursement of inmate funds to a payee will bearchived together as stated in response to item 1.

Cash Receipts Issues page11

1. Clarification-the inmate mail roster was created by the previous CorrectionsAssistant to track all items received by inmates through the mail (e.g.,

photographs, money etc.) for only mere convenience. In the case of the inmate

funds received through the mail, the Corrections Assistant will electronicallyrecord all monetary deposits on an excel spreadsheet on a daily basis and archive

this information on the Corrections Division server. This information will be

readily available upon request. A signed final transaction report will beforwarded to junior account each day for review.

2. As stated in item 1, the reconciliation is being done daily.3. The Sheriffs Office will strive to ensure cash deposits are done within 2-3

business days


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4. Currently, this recommendation is being implemented.5. Currently, the corrections division is in the process of change the bail procedure;

once these changes are completed a separate log if necessary will be

implemented.Other items page 11

1. The Ulster County Sheriffs Office to work with ARAMARK in theupgrade and correcting software.

2. Currently, this recommendation is being implemented.3. Currently all check stubs have the relevant supporting information and

required authorizing signatures. Due to the nature of the disbursements,filing is done according to the type of disbursement and archived during

the year conducive to work locations; however, at the close of the yeardisbursements are archived at the Ulster County Hall of Records under the

title of Corrections.

As always, the Ulster Sheriffs Office will strive to maintain and to enhance safeguards

for financial records. I would like to thank members of the audit team for their

recommendations and professionalism.


Paul J. VanBlarcumUlster County Sheriff

ucso inmate account review final

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