Office of the Legislative Auditor - Financial Audit Division

Report Summary

Office of the Attorney General

January 1, 2001, through December 31, 2002

Overall Conclusions:

The Attorney General's Office (AGO) properly collected, deposited, and recorded revenue for AGO services, fines, restitutions, and settlements in the state's accounting system. The Attorney General's Office also properly authorized payroll transactions and payments for goods and services. The AGO accurately recorded those transactions in the state's accounting records. In addition, for the items tested, the AGO complied with material finance-related legal provisions and the bargaining unit agreements. However, as noted in prior audit reports, the AGO has not complied with the legal provision requiring the AGO to bill the full cost of providing legal services to nongeneral funded activities. The AGO has excluded rent when determining its billing rates. The AGO, Department of Finance, and other parties involved believe a reevaluation of the office's funding mechanism must occur first, since compliance with statute may have far-reaching effects on the budgets of numerous state agencies. The AGO may want to seek a change to the statute directing it to bill for the full cost of providing legal services to nongeneral funded activities.

Key Finding and Recommendation:

• The Attorney General's Office did not adequately separate duties over the recording and reconciling of select third-party receipts, namely, checks received from nongovernmental entities. The Attorney General's Office should separate duties and have someone independent of the check receipting and depositing process reconcile the receipt logs.

Financial-Related Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our work at the Office of the Attorney General included funding sources and other revenue, payroll expenditures, and purchased goods and services.