Office of the Legislative Auditor - Financial Audit Division
Financial Audit Report
Board of Architecture, Engineering, Land Surveying, Landscape Architecture,
Geoscience, and Interior Design
July 1, 1996, through December 31, 1999
Key Findings and Recommendations:
The board did not set its fees to recover costs as required by statute, although it has received approval to increase its fees effective June 2000. The board also needs to improve controls in order to safeguard receipts and ensure that receipts are properly accounted for. The board collected about $645,000 in fiscal year 1999. We recommended that the board restrictively endorse checks "for deposit only" immediately upon receipt, summarize daily receipts for comparison to the amount deposited by the Department of Commerce, and periodically reconcile deposits to the number of licenses issued and examinations given. (Finding 1,
The board exceeded its appropriation authority for fiscal years 1998 and 1999. As a result, the board received administrative transfers from the General Fund contingent account totaling $76,000 to cover operating deficits. The board incurred the deficits because of cost overruns incurred in implementing a new licensing system. The board did not have a comprehensive spending plan for the new licensing system and did not effectively monitor the status of the computer project. The board also needs to address certain weaknesses associated with the new licensing system, including the lack of adequate security over access to the system, and lack of system documentation and disaster recovery procedures. (Findings 2 and 3, pages 9 and 10)
The board did not comply with several state laws and policies when incurring expenditures. The board did not always ensure that sufficient funds were available prior to incurring obligations. The board also exceeded its purchasing authority limits. In addition, the board did not execute professional/ technical services contracts with its primary vendors and did not comply with other requirements. We recommended that board staff obtain training in state laws and policies and procedures governing expenditure of state funds. (Finding 4, page 11)
Other Key Audit Conclusions:
The board's payroll expenditures were properly authorized and recorded in the state's accounting system. For the payroll transactions tested, the board paid its employees in accordance with applicable legal provisions.
In its response, the board agreed with the audit findings and recommendations and has developed an action plan to address the issues.