Key Finding and Recommendation
The Department of Public Safety did not have an appropriate process to determine year-end accrued liabilities for inclusion in the state’s financial statements. As a result, it overstated the June 30, 2003, liability for its Federal Fund activities by as much as $25 million. We recommended that the Department of Public Safety work with the Department of Finance to ensure that it properly calculates year-end accrued liabilities.
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 2003 audit, our work at the Department of Public Safety included motor vehicle registration and excise tax revenues, which totaled approximately $606 million, and Federal Emergency Management Assistance (FEMA) Public Assistance Grants (CFDA # 83.544), which totaled approximately $26 million.