Report Summary
Department of Administration
Fiscal Year Ended June 30, 1999
Key Findings and Recommendations:
- Certain divisions did not adequately maintain their accounts receivable balances. Plant Management and the Financial Management and Reporting Division should reconcile the accounts receivable balances recorded on MAPS and on its manual general ledger. Also, PrintComm should pursue its old accounts receivable and write off accounts when it exhausts all collection efforts. (Finding 1, page 2)
- The Building Construction Division did not ensure that the state's accounting system assigned accurate object codes to new building construction expenditures. The department should correctly code building construction expenditures in the state's accounting system and accurately report building construction financial activity to the Department of Finance. (Finding 2, page 3)
- The Risk Management Division did not obtain an actuarial evaluation of its contributions to reserves for the past two years. The Risk Management Division should have an actuary ensure that its annual calculation of reserves is based on sound actuarial principles. Actuarial reviews should occur at least biennially as required by the federal government. (Finding 3, page 3)
- Some scheduled batch jobs run from outside the InterTechnologies Group's secured computer environment. InterTech should secure all scheduled batch jobs to prevent unauthorized modifications. (Finding 4, page 4)
- InterTech does not have formal procedures to control changes to production batch streams. InterTech should document specific agency liaisons that must approve changes to each production batch stream. (Finding 5, page 5)
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 work in individual agencies is limited. During the fiscal year 1999 audit, our work at the Department of Administration focused on selected components of the state's Internal Services Fund, selected building construction projects, and certain controls over the scheduled batch processing computer environment. The department's response to our recommendations is included in the report.
