Office of the Governor and Lieutenant Governor financial-compliance audit for the two fiscal years ended ..

40 Pages·1996·0.82 MB·English

by  Montana. Legislature. Legislative Audit Division

352.23213
L72G
1998
Legislative Audit Division
StateofMontana
ReporttotheLegislature
December1998 Financial-Compliaiice Audit
FortheTwoFiscalYearsEndedJune30, 1998
Office ofthe Governor and
Lieutenant Governor
Weissuedaqualifiedopinionontheoffice'sfinancialschedules. The
quaUficationpertainstotheoffice'sSpecialRevenueFundactivity. Our
reportcontainsfiverecommendationsrelatingto:
Recordingactivityinaccordancewithstateaccountingpolicy.
• ReimbursingtheGeneralFund$13,857.
»• Improvingcompliancewithstatelaws.
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Directcomments/inquiriesto:
LegislativeAuditDivision
Room135,StateCapitol
POBox201705
98-24 HelenaMT59620-1705
Helpeliminatefraud,waste,andabuseinstategovernment. CalltheFraudHotlineat1-800-222-4446
statewideor444-4446inHelena.
^'''*'''^LIBRARY
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3 0864 0014 3485 4
FINANCIAL-COMPLIANCEAUDITS
Financial-complianceauditsareconductedbytheLegislativeAuditDivisiontodetermineifan
agency'sfinancialoperationsareproperlyconducted,thefinancialreportsarepresentedfairly,and
theagencyhascompliedwithapplicablelawsandregulations. Inperformingtheauditwork,the
auditstaffusesstandardssetforthbytheAmericanInstituteofCertifiedPublicAccountantsandthe
UnitedStatesGeneralAccountingOffice. Financial-complianceauditstaffmembersholddegrees
withanemphasisinaccounting. MoststaffmembersholdCertifiedPublicAccountant(CPA)cer-
tificates.
GovernmentAuditingStandards,theSingleAuditActAmendmentsof1996and0MBCircularA-
133requiretheauditortoissuecertainfinancial,internalcontrol,andcompliancereports. This
individualagencyauditreportisnotintendedtocomplywiththesereportingrequirementsandis
thereforenotintendedfordistributiontofederalgrantoragencies. TheLegislativeAuditDivision
issuesastatewidebiennialSingleAuditReportwhichcomplieswiththeabovereporting
requirements. TheSingleAuditReportforthetwofiscalyearsendedJune30,1999,willbeissued
byMarch31,2000. CopiesoftheSingleAuditReport,whenavailable,canbeobtainedby
contacting:
SingleAuditCoordinator LegislativeAuditDivision
OfficeofBudgetandProgramPlanning Room135,StateCapitol
StateCapitol POBox201705
HelenaMT59620 HelenaMT59^20-1705
Phone[phone]
MEMBERSOFTHELEGISLATIVEAUDITCOMMITTEE
LEGISLATIVE AUDIT DIVISION
ScottA.Seacat,LegislativeAuditor /&^^^^^\ DeputyLegislativeAuditors:
JohnW.Northey,LegalCounsel wl^S^IlSv ''"^Pellegrini,PerformanceAudit
ToriHunthausen,IT&OperationsManager vl^^^^^J JamesGillett,Financial-ComplianceAudit
December1998
TheLegislativeAuditCommittee
oftheMontanaStateLegislature:
Thisisourfmancial-complianceauditreportontheOfficeoftheGovernorandLieutenant
GovernorforthetwofiscalyearsendedJune30,1998. Weissuedaqualifiedopiniononthe
fmancialschedulesoftheoffice. Ourreportcontainsfiverecommendationsregarding
recordingactivityinaccordancewithgenerallyacceptedaccountingprinciplesand
improvingcompliancewithstatelaws. Theoffice'sresponseiscontainedattheendofthe
report.
WethanktheGovernor,LieutenantGovernor,andtheirstaffsfortheirassistanceand
cooperation.
Respectfullysubmitted.
A
scottA.Seacat
LegislativeAuditor
Room135.StateCapitolBuilding,POBox201705 HelenaMT59620-1705
Phone[phone] FAX[phone] [email protected]

Legislative Audit Division
Financial-ComplianceAudit
FortheTwoFiscalYearsEndedJune30, 1998
Office ofthe Governor and
Lieutenant Governor
MembersoftheauditstaffinvolvedinthisauditwereVictoriaMurphy,Laura
L.Norris,VickieRauser,andJennySolem.

1
TableofContents
ElectedandAdministrativeOfficials Pageii
ReportSummary Pageiii
Introduction Introduction Page1
Background Page1
PriorAudit PriorAuditRecommendations Page3
Recommendations
Findingsand CompliancewithAccountingPrinciples Page5
Recommendations Non-GeneralFundMoneyFirst Page5
MontanaConsensusCouncil Page6
StateCompliance Page7
FlatheadBasinCommission Page7
CashManagement Page8
LongRangeBuildingProgramBudgetAmendments Page9
IndependentAuditor's IndependentAuditor'sReport PageA-3
Report&AgencyFinancial
Schedules ScheduleofChangesinFundBalances&Property
HeldinTrustfortheFiscalYearEndedJune30,1998 PageA-5
ScheduleofChangesinFimdBalances&Property
HeldinTrustfortheFiscalYearEndedJune30,1997 PageA-6
ScheduleofTotalRevenues&Transfers-In
fortheFiscalYearEndedJune30,1998 PageA-7
ScheduleofTotalRevenues&Transfers-In
fortheFiscalYearEndedJune30,1997 PageA-8
ScheduleofTotalExpenditures&Transfers-Out
fortheFiscalYearEndedJune30,1998 PageA-9
ScheduleofTotalExpenditures&Transfers-Out
fortheFiscalYearEndedJune30,1997 PageA-10
NotestotheFinancialSchedules PageA-1
AgencyResponse OfficeoftheGovernorandLieutenantGovernor PageB-3
Pagei
ElectedandAdministrativeOfficials
OfficeoftheGovernorand Governor MarcRacicot
LieutenantGovernor
LieutenantGovernor JudyMartz
ChiefofStaff JudyBrowning
CentralizedServicesAdministrator MaryJoMurray
ForadditionalinformationconcerningtheOfficeoftheGovernor<
LieutenantGovernorcontact:
AnastasiaBurton,PressSecretary
Governor'sOffice
POBox200801
HelenaMT59620-0801
[phone]
Pageii
ReportSummary
Governor'sOffice Thisreportcontainstheresultsofourfuiancial-comphanceauditofthe
OfficeoftheGovernorandLieutenantGovernor(office)forthetwo
fiscalyearsendedJune30,1998. Thepreviousauditreportcontained
threerecommendationstotheoffice. Theofficeimplementedtwoand
partiallyimplementedonerecommendation.
Thisreportcontainsfiverecommendations. Thefirsttwo
recommendationsaddressareaswheretheofficecanimprove
comphancewithstateaccountingpolicy. Theotherthreeissuesare
areaswheretheofficecanimprovecomphancewithstatelaw.
Weissuedaqualifiedopiniononthefinancialschedulescontainedin
thisreport. Thismeansthereadershouldusecautionwhenrelyingon
thepresentedfmancialinformationandthesupportingdataonthe
StatewideBudgetingandAccountingSystem. Thequalifiedopinion
resultedfi-omunrecordedactivityrelatedtotheMontanaConsensus
Councilduringfiscalyear1997-98.
Thelistingbelowservesasameansofsummarizingthe
recommendationscontainedinthereport,theoffice'sresponsethereto,
andareferencetothesupportingcomments.
Recommendation#1 Werecommendtheoffice:
A. Spendnon-generalfundmoneyfirstinaccordance
withstatelaw.
AgencyResponse:Concur. SeepageB-3.
B. ReimbursetheGeneralFund$13,857fi-omthe
SpecialRevenueFund Page6
AgencyResponse:Concur. SeepageB-3.
Recommendation#2 WerecommendtheofficeaccountforMontanaConsensus
Council,Inc.fmancialactivityasrequiredbystatelaw Page7
AgencyResponse:Concur. SeepageB-3
Pageiii
ReportSummary
Recommgndatign#3 WerecommendtheofficeestablishtheFlatheadBasin
Commissionaccountrequiredbystatelaw Page8
AgencyResponse:Donotconcur. SeepageB-4.
Recommendation#4 Werecommendtheofficedepositmoneyinaccordance
withstatelaw Page9
AgencyResponse:Concur. SeepageB-4.
Recommendation#5 WerecommendtheofficesubmitLong-RangeBuildingProgram
budgetamendmentstotheLegislativeFinanceCommitteepriorto
approvalinaccordancewithsection5-12-401,MCA Page10
AggncyRgsppngg:Concur. SeepageB-4.
Pageiv