Department of Administration financial-compliance audit for the two fiscal years ended ... PDF
Preview Department of Administration financial-compliance audit for the two fiscal years ended ...
s 352.3 L72a 1999 Legislative Audit Division StateofMontana Reportto the Legislature November 1999 Financial-CompUance Audit For the Two Fiscal Years Ended June 30, 1999 Department of Administration SrnF RftPUMENTS COLLECTION Thisreportcontains 18recommendationstothedepartment. Opportunities FFB 8 2000 toimprovedepartmentoperationsinclude: MONTANA STATE LIBRARY HELTN1"5.15MEO.N6TtAhNAAVE5.9620 • Revisingbidsolicitationandvendorselectionprocedures. > - Enforcingvendorcontractrequirements. »- Obtainingassignmentagreementsforcertiflcatesofdeposit. >- EnsuringrateschargedforservicesinInternalServiceFundsare commensuratewithcosts. * Properlyrecordingactivityontheaccountingrecords. Directcomments/inquiriesto: LegislativeAuditDivision Room 135, StateCapitol POBox201705 99-14 HelenaMT59620-1705 Helpeliminatefraud,waste,andabuseinstategovernment. CalltheFraudHotlineat1-800-222-4446 statewideor444-4446inHelena. U ima,^ 'tf\*lI-..-a :? i i i 11 ^ 3 0864 0014 7335 7 FINANCIAL-COMPLIANCEAUDITS Financial-complianceauditsareconductedbytheLegislativeAuditDivisiontodetermineifan agency'sfinancialoperationsareproperlyconducted,thefinancialreportsarepresentedfairly, andtheagencyhascompliedwithapplicablelawsandregulations. Inperformingtheaudit work,theauditstaffusesstandardssetforthbytheAmericanInstituteofCertifiedPublic AccountantsandtheUnitedStatesGeneralAccountingOffice. Financial-complianceauditstaff membersholddegreeswithanemphasisinaccounting. MoststaffmembersholdCertified PublicAccountant(CPA)certificates. GovernmentAuditingStandards,theSingleAuditActAmendmentsof1996and0MBCircular A-133requiretheauditorto issuecertainfinancial, internalcontrol, andcompliancereports. Thisindividualagencyauditreportisnotintendedtocomplywiththesereportingrequirements andisthereforenotintendedfordistributiontofederalgrantoragencies. TheLegislativeAudit DivisionissuesastatewidebiennialSingleAuditReportwhichcomplieswiththeabove reportingrequirements. TheSingleAuditReportforthetwofiscalyearsendedJune30, 1999, willbeissuedbyMarch31,2000. CopiesoftheSingleAuditReport, whenavailable, canbe obtainedbycontacting: SingleAuditCoordinator LegislativeAuditDivision OfficeofBudgetandProgramPlanning Room 135, StateCapitol StateCapitol POBox201705 HelenaMT59620 HelenaMT59620-1705 Phone(406)444-3616 MEMBERS OFTHE LEGISLATIVEAUDITCOMMITTEE LEGISLATIVE AUDIT DIVISION Scott A. Seacat, Legislative AuJilor Deputy Legislative Auditors: John W. Northey. Legal Counsel Jim Pellegrini, Pertormance Audit Tori Hunthausen, IT& Operations Manager James Gillett, Financial-Compliance Audit November 1999 TheLegislativeAuditCommittee oftheMontanaStateLegislature: Thisisourfinancial-complianceauditreportontheDepartmentofAdministrationforfiscal years 1997-98and 1998-99. Thisreportcontains 18recommendationsrelatedtocontractingprocedures, internal servicefundrates, andcompliancewith statelawsgoverning investmentandfundaccounting. Thedepartment'swrittenresponsetotheauditrecommendationsisincludedinthebackoftheaudit report. Wethankthedirectorandherstafffortheircooperationandassistancethroughouttheaudit. Respectftillysubmitted. 7 ScottA. Seacat LegislativeAuditor Room 135,StaleCapitolBuilding. POBox201705 HelenaMT59620-1705 Phone(406)444-3122 FAX(406)444-9784 E-Maillad@state,mt.us Legislative Audit Division Financial-Compliance Audit For the Two Fiscal Years Ended June 30, 1999 Department of Administration MembersoftheauditstaffinvolvedinthisauditwereLaurieBarrett, Jeane Carstensen-Garrett, JohnFine, Geri Hoffman, ScottHoversland, LauraL. Norris, PaulJ. O'Loughlin, andJulieM. Ripley. 11 Table ofContents ListofTables Pageiii AppointedandAdministrativeOfficials Pageiv ReportSummary Pagev Introduction Introduction Page 1 DepartmentOrganizationandFunctions Page 1 PriorAudit Recommendations PriorAuditRecommendations Page5 Findingsand Recommendations GeneralServicesandProcurementFunctions Page7 ContractMonitoring Page7 BidSubmissionDeadlines Page9 BidandPerformanceSecurity Page 10 AgreementswithAgencies Page 10 StateCompliance Page1 911 TelecommunicationsProgram Page 1 InvestingFunds Page 12 AdministrativeCosts Page 12 Stale-datedWarrants Page 13 SRSBuildingDebtService Page 14 InactiveAccounts Page 15 SurplusPropertyAccoimt Page 15 CertificationofExemptEmployees Page 16 InternalServiceFunds Page 17 DataProcessingFundingCaps Page 19 RentandMaintenance Page20 Page! 11 Table ofContents EnergyProcurementandStatewideFuelingProgram Page2 Inter-GovernmentalTraining Page22 CashManagementhnprovementAct Page22 UntimelyandInaccurateReportingofRetirement Contributions Page25 EmployerReports Page25 EmployeeandEmployerContributions Page26 AccountingIssues Page27 UnrecordedRevenue Page27 MisstatementofEstimatedClaimsLiability Page28 IndependentAuditor's IndependentAuditorsReport A-3 Report&Departmentof AdministrationFinancial ScheduleofChangesinFundBalances&Property Schedules HeldinTrustfortheFiscalYearEndedJune30, 1999 A-5 ScheduleofChangesinFundBalances&Property HeldinTrustfortheFiscalYearEndedJune30, 1998 A-6 ScheduleofTotalRevenues&Transfers-InfortheFiscal YearEndedJune30, 1999 A-7 ScheduleofTotalRevenues&Transfers-InfortheFiscal YearEndedJune30, 1998 A-8 ScheduleofTotalExpenditure&Transfers-OutfortheFiscal YearEndedJune30, 1999 A-9 ScheduleofTotalExpenditure&Transfers-OutfortheFiscal YearEndedJune30, 1998 A-10 NotestoFinancialSchedules A-1 DepartmentResponse DepartmentofAdministration B-3 Pageii List ofTables Table 1 DescriptionofInternalServiceFundsandSummaryof Conclusions Page 18 Pageiii Appointed and Administrative Officials Departmentof LoisMenzies, Director Administration DaveAshley, DeputyDirector CathyMuri, Administrator, AccountingandManagementSupport Division ThomasB. O'Connell, Administrator, ArchitectureandEngineering Division BillBayless, Administrator, General ServicesDivision TonyHerbert, Administrator, InformationServicesDivision MarvinEicholtz, Administrator, ProcurementandPrintingDivision BrettDahl, Administrator, RiskManagementandTortDefense Division JohnMcEwen, Administrator, StatePersonnel Division GregThomquist, Chairman, StateTaxAppealBoard* WilliamHooks, Attorney, AppellateDefender'sOffice *Officialsofentitiesattachedtothedepartmentforadministrative purposesarelistedaboveiftheentities' financialactivitiesare includedinthedepartment'sfinancial schedules. ThePublic Employees' RetirementBoard, theTeachers' RetirementSystemand theStateCompensationInsuranceFundissueseparateannual financialstatementssoofficialsoftheseentitiesarenotlisted. Pageiv
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