Report Summary
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:
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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, page
6)
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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)
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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:
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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.
Agency Response:
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In its response, the board agreed with the audit findings and
recommendations and has developed an action plan to address the
issues.
