DC Courts: Improvements Needed in Accounting for Escrow and Other Funds
AIMD/OGC-00-6
Published: Oct 29, 1999. Publicly Released: Oct 29, 1999.
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Highlights
Pursuant to a congressional request, GAO reviewed the District of Columbia (DC) Courts' management of its escrow and other bank accounts, focusing on whether DC Courts: (1) properly reconciled its bank accounts; (2) had adequate controls over fines and fees collected; and (3) had authority to retain amounts deposited into the Crime Victims Fund account.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Joint Committee on Judicial Administration | To improve DC Courts' accounting for and controls over funds it maintains in accounts, the Joint Committee on Judicial Administration should direct the Fiscal Officer to adhere to existing procedures that require that every account be reconciled to the bank statement and supporting detail or subledgers each month. These reconciliations should be completed promptly, such as within 30 days of the receipt of the bank statement. In regard to the Child Support account, DC Courts should review all collections and disbursements and perform a manual reconciliation each month, until the automated reconciliation function of the new child support system can be used. |
Closed – Implemented
DC Courts Internal Auditor stated that the Civil Escrow and Jury Fee accounts are now properly reconciled. On August 2, 2001, DC Courts Chief, Accounting and Finance Branch, stated that the Child Support account was now properly reconciled. He stated that the Courts had taken numerous steps to get the child support account to reconcile. For example, they had revamped their internal control procedures over the issuing of checks, hired a full time specialist to do child support bank reconciliations and gotten their bank to enforce the 60 day time limit on child support checks. All of the Courts reconciliations were reviewed by its external auditor as part of FY 2000 financial audit and no material findings were found.
|
| Joint Committee on Judicial Administration | To improve DC Courts' accounting for and controls over funds it maintains in accounts, the Joint Committee on Judicial Administration should direct the Fiscal Officer to request reimbursement of all unreimbursed Juror Fee payments. Once all amounts are reimbursed, DC Courts should immediately transfer to the Civil Escrow account all amounts that were temporarily borrowed and terminate the overdraft protection relationship between the Civil Escrow and Juror Fees accounts. |
Closed – Implemented
DC Courts Internal Auditor stated that the Civil Escrow and Jury Fee accounts are now properly reconciled.
|
| Joint Committee on Judicial Administration | To improve DC Courts' accounting for and controls over funds it maintains in accounts, the Joint Committee on Judicial Administration should direct the Fiscal Officer to determine the appropriate level to reestablish the Juror Fees account as an imprest fund and the appropriate time intervals to request reimbursement of Juror Fee payments to replenish the fund. The established fund level combined with the reimbursement interval should ensure that there are sufficient funds for the Juror Fees account to operate independently. |
Closed – Implemented
DC Courts Internal Auditor stated that the Civil Escrow and Jury Fee accounts are now properly reconciled.
|
| Joint Committee on Judicial Administration | To improve DC Courts' accounting for and controls over funds it maintains in accounts, the Joint Committee on Judicial Administration should direct the Fiscal Officer to transfer all bank reconciliation responsibilities and related accounting functions from the Internal Audit Branch to other branches within the Financial Operations Division in order to appropriately segregate duties. |
Closed – Implemented
DC Courts Internal Auditor stated that the Civil Escrow and Jury Fee accounts are now properly reconciled.
|
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Topics
Accounting proceduresCourts (law)Escrow accountsFinancial management systemsFinancial recordsFunds managementImprest fundsInternal controlsChild supportLaw courts