Los Angeles City Harbor Department Compliance Review
DATE: April 12, 2018
TO: Frank Liu, Director of Accounting, Harbor Department
FROM: Georgia Mattera, Chief Deputy Controller, Office of the Controller
SUBJECT: BANK ACCOUNTS NOT CONTROLLED BY THE OFFICE OF FINANCE
The Controller’s Office conducted a compliance review of the Los Angeles Harbor Department’s bank accounts not controlled by the Office of Finance. Our objective was to ensure expenditures are authorized, supported, and comply with the purposes for which these accounts were established.
Several Los Angeles City (City) departments have bank accounts not controlled by the Office of Finance/Treasurer, and detailed transactions in these accounts are not generally recorded in the City’s Financial Management System (FMS). Periodic compliance reviews of these bank accounts are necessary to assess whether departments are using them in accordance with authorized purposes and whether there are adequate internal controls and oversight.
Compliance Review Results
Harbor Department’s (Harbor) recordkeeping and controls over its one checking account not controlled by the Office of Finance are in proper order. Harbor reconciles book and bank balances regularly and divides custody, recordkeeping, and authorized signer duties among different staff. Moreover, the transactions reviewed were in accordance with the fund’s authorized purpose. We also completed a surprise petty cash count and found all monies properly accounted for.
FACT #1: Harbor operates the Port of Los Angeles, one of the highest volume ports in the world and a vital national resource, that facilitates U.S. trade with countries around the Pacific Rim, and supports 1.6 million jobs throughout the U.S.