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$600,000 In Deposits Discovered Under City Worker's Desk
Report Finds Mishandling Of Cash At Denver Offices
POSTED: 5:23 pm MDT May 19, 2010
UPDATED: 12:54 pm MDT May 20, 2010
DENVER -- A study of 10 city of Denver agencies found troubling gaps in cash-handling and security practices that created “an environment conducive to theft,” according to city auditor Dennis Gallagher.The audit examined practices at Denver International Airport, the Denver Treasury, the Office of the Clerk and Recorder, Community Planning and Development, the Denver Public Library, the Denver County Courts and the Department of Public Works’ Parking Management.The report, conducted between January 2009 and December 2009, revealed that one of the agencies “had over $600,000 in deposits … in an open bin underneath a cashier’s desk which was easily accessible by other employees and potentially to the public.”
Denis Berckefeldt, a spokesman for the Denver auditor’s office, said a clerk failed to deposit the cash, checks and credit card receipts into a vault in a timely manner.“The minute that we saw that we told them, ‘You need to resolve this issue and you need to resolve it now,’” said Berckefeldt.The audit also showed lax security in cash-handling areas. Some areas had no security cameras. A few agencies that did have cameras, had them poorly positioned to monitor cash-handling.Two agencies did not have locks on doors where cash was kept.City Councilman Charlie Brown called the findings “embarrassing.”“This is not a lemonade stand we’re running,” he said. “This is big business.”Denver Mayor John Hickenlooper would not comment on the report, instead citing a Department of Finance response, which detailed the changes each agency has made since the audit was released in March.The department’s response said the agency that left deposits under a desk had been “counseled” and now “all deposits are immediately secured in a locked safe.”The response also showed that a number of new security cameras had been installed and locks added to doors that lacked them.Additionally, Steve Ellington, acting treasurer, said the Finance Department has implemented a system of periodic surprise cash counts to ensure that agency change funds are accurate.7News found out at least one agency, which handles small amounts of cash, still does not have a security camera, and financial restrictions may prevent the agency from installing one anytime soon.Berckefeldt said he understands the reality of budget restrictions, but added that security should be a priority.“They should get those cameras in place as soon as they can,” he said.Despite the cash-handling problems, Berckefeldt said the auditor’s office has no indication that theft or any other improprieties occurred as a result of the oversights.
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