Office of the Legislative Auditor - Financial Audit Division

Report Summary
State Agricultural Society
Financial Statement Audit

 

Financial Audit Division Report 10-19

Released June 10, 2010

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Conclusion

The State Agricultural Society’s financial statements for the two years ended October 31, 2009, were fairly presented in all material respects. However, the society had some weaknesses in internal control over financial reporting and business operations, as noted below.

The society resolved a prior audit finding by fully funding its debt service reserve account, as required by a bond covenant.

Findings

• The State Agricultural Society’s staff did not consistently perform an independent review of payroll transactions to mitigate the risk associated with incompatible payroll duties.
• The State Agricultural Society did not have a written contract for towing services and had not established formal policies and procedures for service contracts.

Audit Scope and Objectives

We audited the State Agricultural Society’s basic financial statements for the two years ended October 31, 2009, and reviewed controls over financial operations and compliance with finance-related legal provisions. We also determined the status of a prior audit finding that the society had under-funded its debt service account in fiscal year 2008, which resulted in noncompliance with a bond covenant.