Report Summary
Management Letter
Department of Public Safety
Fiscal Year Ended June 30, 2002
Key Finding and Recommendations
- The Department of Public Safety did not obtain audit reports from some subrecipients receiving over $300,000 of federal funds annually. The seven subrecipients for whom audit reports were missing received over $10 million of federal funds. The department's follow up with the subrecipients to obtain a copy of the audit report consisted of one letter to remind them that an audit report was due. Federal regulations require that the state obtain and review subrecipient audit reports for entities receiving at least $300,000 of federal funds, and ensure that subrecipients take appropriate corrective action when noncompliance with federal laws and regulations occurs. We recommended that the department ensure that it obtains audit reports for all subrecipients.
Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally funded programs. The scope of our work in individual agencies is limited. During the fiscal year 2002 audit, our scope at the Department of Public Safety included motor vehicle registration and excise tax revenues, which totaled approximately $617 million, and federal public assistance grants, which totaled approximately $32 million.
