Summary: GAO reviewed the processing and depositing of receipts in the District of Columbia Treasury by several District agencies.
GAO found that some District agencies are processing and depositing receipts promptly while other agencies are slower in handling collected funds, resulting in lost interest income, mishandling, theft, and delays. In its review of seven agencies, GAO found that the Department of Environmental Services and the D.C. General Hospital were more prompt in making deposits than the Departments of Housing and Community Development (DHCD); Licenses, Investigations, and Inspections (DLII); Insurance; and the Recorder of Deeds. Sufficient data were not available for the Department of Transportation' s Miscellaneous Trust Fund deposits. GAO learned that the District has not promulgated citywide standards concerning the timeliness and frequency of agency receipts processing, although standards are common elsewhere. GAO noted that: (1) U.S. Treasury requirements state that Federal agencies deposit receipts with the Treasury on a timely basis and design their processing system to separate payments received from accompanying documents at initial processing; (2) GAO standards for Federal agencies suggest prompt deposit of receipts; and (3) the Municipal Finance Officers Association's Guide states that cash managers should establish written procedures for all deposits. GAO stated that these concepts are applicable to local governments. Although District agencies have developed their own procedures for handling receipts in the absence of citywide standards, GAO stated that these procedures do not ensure prompt deposit.
