EP 1130-2-550
Change 3
15 Aug 02
APPENDIX O
PROGRAM INTEGRITY: HONOR VAULTS
O-1. Honor vaults are very susceptible to fraud and embezzlement. Consequently, honor system
programs require diligent audit and quality assurance attention. Controls and methods can be
used to better ensure the integrity of honor system collections. Failure to follow physical and
operational control methods may cause an auditor to question program integrity and could even
open the program to fraud.
O-2. The following controls are suggested to strengthen the integrity of the honor vault fee
collection program:
a. Physical Controls: Physical controls can enhance the integrity and quality assurance of
the honor vault method of fee collection. It is recommended that honor vaults feature a
removable double locked container that would allow for only one designated fee collector to
remove the full container and replace it with an empty one. Examples of physical controls
include the following:
(1) Double Box System: The fee collector unlocks the honor vault and removes the
double-locked fee collection box.
(2) Single Box System with Removable Vault: An alternative to the double box is a
system where the entire safe is removable and essentially serves the same purpose as the inner
double locked collecting box. The fee collector unlocks the safe from the mounting bracket and
replaces it with an empty safe.
(3) Double Locking Honor Vaults: If a removable fee collection container is not provided,
accountability can be strengthened by having two individually keyed locks so that two keys from
two different persons are needed to open the vault.
(4) Dual Locking Containers: All of the above methods of physical control make use of
dual locking containers.
b. Operational Controls.
(1) Dual Control: Having two persons present at all times when fee revenues are accessed
is a basic quality assurance method.
(2) Rotating Duties: Dual control can be improved by ensuring that the same two
employees are not routinely paired for fee collection activities.
(3) Separation of Duties: A single person should not have complete and individual control
of funds and related paperwork from collection through deposit.
O-1
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