03-008 Property Unit - Miami Police Dept. Audit Report Ado…

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• Publié par: Phewyig
• Nombre de lectures: 22
• Langue: English

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AUDIT OF THE PROPERTY UNIT OF THE MIAMI POLICE DEPARTMENT
FOR THE PERIOD OCTOBER 1, 2001, THROUGH SEPTEMBER 30, 2002


TABLE OF CONTENTS

INTRODUCTION............................................................................................................. 1
SCOPE AND OBJECTIVES ........................................................................................... 3
METHODOLOGY ........................................................................................................... 5
AUDIT FINDINGS IN BRIEF ........................................................................................ 6
PROPERTY UNIT, CITY OF MIAMI POLICE DEPARTMENT......................... 6
COMPLIANCE WITH CERTAIN SECTIONS OF THE STANDARD
OPERATING PROCEDURES.................................................................................. 6
SIGNIFICANT DEFICIENCIES RELATING TO THE ACCOUNTING AND
SAFEGUARDING OF CONFISCATED EVIDENCE/PERSONAL PROPERTY.7
PHYSICAL INVENTORY COUNTS OF INVENTORIED ITEMS WERE NOT
PERFORMED, AS REQUIRED............................................................................. 12
CERTAIN CONFISCATED EVIDENCE ARE NOT PROPERLY
SAFEGUARDED..................................................................................................... 14
INADEQUATE OF INTERNAL CONTROLS. ..................................................... 18
LACK OF COMPUTER CONTROLS. ................................................................... 21
FINANCE DEPARTMENT....................................................................................... 23
BANK DEPOSIT SHORTAGES WERE NOT INVESTIGATED AND
RESOLVED. ............................................................................................................ 23
FINDINGS AND RECOMMENDATIONS ................................................................. 25
PROPERTY UNIT, CITY OF MIAMI POLICE DEPARTMENT....................... 25
COMPLIANCE WITH CERTAIN SECTIONS OF THE STANDARD
OPERATING PROCEDURES................................................................................ 25
SIGNIFICANT DEFICIENCIES RELATING TO THE ACCOUNTING AND
SAFEGUARDING OF CONFISCATED EVIDENCE/PERSONAL PROPERTY.
................................................................................................................................... 26
PHYSICAL INVENTORY COUNTS OF INENTORIED ITEMS WERE NOT
PERFORMED, AS REQUIRED............................................................................. 30
CERTAIN CONFISCATED EVIDENCE ARE NOT PROPERLY
SAFEGUARDED..................................................................................................... 33
INADEQUATE INTERNAL CONTROLS............................................................. 38
LACK OF COMPUTER CONTROLS. ................................................................... 55
FINANCE DEPARTMENT....................................................................................... 57
BANK DEPOSIT SHORTAGES WERE NOT INVESTIGATED AND
RESOLVED. ............................................................................................................ 57
INTRODUCTION

The Property Unit (PU) of the Police department maintains an inventory system, which
accounts for various types of confiscated evidence/personal properties, or lost and found
items. The types of evidence/personal properties maintained in the inventory system
includes United States currencies/coins, foreign currencies/coins, guns, ammunitions,
narcotics/drugs, jewelries, automobiles/bicycles, tools, human body parts, and other
valuables. A portion of the first floor of the Police department building is used to
maintain some of the items in the PU’s inventory. Additionally, an auto (automobile)
thpound is located at 300 NW 7 Street, directly under the I-95 expressway. The PU also
thoperates a warehouse (at 300 NW 6 Street) adjacent to the auto pound. A locked gated
fence separates the auto pound and the warehouse. The warehouse is used to store
bicycles, bulk warehouse items, electronics, flammable material, and homicide-related
evidence.

The two major sections within the PU are:

• The Evidence Management Detail Section: This Section is responsible for the
Counter, Vault, Warehouse, and Auto Pound functions.

• The Operations Support Detail Section: This Section is responsible for the
Administration/Audit, Confiscation, Police Uniform, Police Equipment, Mail
Room, and Office Supply functions.

The records maintained by the PU disclosed that approximately $1.35 million were
processed and deposited into the City’s bank account during the fiscal year ended
September 30, 2002, from the following two revenue sources:

• Confiscated monies relating to fully adjudicated cases, unclaimed monies, and
unclaimed lost and found monies, are periodically sent from the Vault Detail
section to the Confiscation Detail section to be deposited into the City’s bank
1 account. The Confiscation Detail section deposited approximately $768,000 into
the City’s bank account during the fiscal year ended September 30, 2002.

• The Auto (automobile) Pound is used to maintain inventory of confiscated and
unclaimed personal properties. The fees/revenues collected by this section
include a storage fee of $20.00 for each day a car is stored in this section, a flat
administration fee of $25.00, cash receipts for vehicle auctions and metal sold
from crushed cars. Additionally, the towing companies for a charge of up to
$1,000 that includes storage and administrative fees store vehicles that are
impounded under the Vehicle Impoundment Program (VIP). The Auto Pound
deposited approximately $584,000 into the City’s bank account during the fiscal
year ended September 30, 2002.

The nature of Police activities/functions involves the confiscation of various valuable
items, which serve as evidence in court proceedings. Therefore, to enhance the
successful prosecution of those who violate the laws, all confiscated evidence must be
properly safeguarded and preserved. The attributes of an effective inventory system
includes limited access only to authorized personnel, safeguards against shrinkage,
obsolesce, theft, unauthorized use, damage, and spoilage. If not kept in good conditions
and maintained in the right room temperature and ventilation, certain items could shrink
and/or ferment, and consequently pose health hazards/environmental safety and/or
jeopardize the integrity of the evidence. Therefore, the purpose of the audit was to
determine whether an effective inventory system was maintained.
2 SCOPE AND OBJECTIVES

An effective inventory system limits access only to authorized personnel, safeguards
against shrinkage, obsolesces, theft, unauthorized use, damage, and spoilage. As part of
our oversight responsibility, the Office of Internal Audits performs financial/performance
audits to determine the extent to which internal control procedures enhanced, compliance
with City Code provisions, policies, procedures, State Statutes, and other guidelines;
economic and efficient operation of the City; safeguarding of assets; and reliability of
financial records.

The audit covered the period October 1, 2001, through September 30, 2002, and selected
transactions/controls through November 30, 2002. In general, the audit focused on the
following broad objectives:

• To evaluate the effectiveness of internal control as it relates to the processing,
storing, and safeguarding of the inventoried items maintained by the Property
Unit (PU).

• To determine whether selected transactions (confiscated monies/other evidence)
were properly accounted for, deposited into the City’s bank account and/or
properly disposed.

• To determine whether inventory items were maintained in accordance with
departmental Standard Operating Procedures (SOP), and also in accordance with
the Standard Manual of the Law Enforcement Agency Accreditation Program,
issued by the Commission on Accreditation of Law Enforcement Agencies, Inc.
(CALEA).

• To review, assess, and evaluate the physical layout of the PU and determine
whether it is conducive to the preservation of inventory (evidence) items.
• To review the computer application used to maintain the inventory system and
3 determine its adequacy and effectiveness.

• To physically identify and verify the existence of selected inventoried items.

• To determine the status of significant findings reported during the previous audit
of the Property Unit.

• Other procedures as deemed necessary.



4 METHODOLOGY

We conducted our audit in accordance with generally accepted governmental auditing
standards and Standards for the Professional Practice of Internal Auditing, issued by the
Institute of Internal Auditors. To obtain an understanding of the internal controls, we
interviewed appropriate personnel, reviewed applicable written policies and procedures,
and made observations to determine whether the prescribed controls had been placed in
operation.

The audit methodology included the following:

• Obtained sufficient understanding of