AUDIT SUMM - CAP ASSETS 04

State Of Rhode Island

Description

S TATE OF R HODE I SLAND-GENERAL A SSEMBLY OFFICE of the AUDITOR GENERAL AUDIT SUMMARYERNEST A. ALMONTE, CPA, CFE AUDITOR GENERAL INTEGRITY ♦ RELIABILITY ♦ INDEPENDENCE ♦ ACCOUNTABILITY [e-mail] JANUARY 2004 were recorded at $373 million at June 30, 2002. The State owns (or has STATE OF RHODE ISLAND acquired rights to) nearly 97,000 acres, which represents approximately 14% of CAPITAL ASSETS – SUMMARY DATA AND the State’s total land area. Buildings RECOMMENDATIONS TO IMPROVE and related improvements were $576 CONTROLS AND REPORTING million before accumulated AS OF JUNE 30, 2002 depreciation of $214 million. Other categories of capital assets include We completed a summary report Substantial effort was required to infrastructure, computer systems, highlighting key facts and inventory and value (at historical cost) all vehicles and furniture and equipment. recommendations to improve controls and capital assets owned by the state at June The report highlights certain of the reporting for the State’s significant 30, 2002 regardless of the year acquired. State’s largest capital assets in each investment in capital assets. This report This represented a significant challenge for category. emanates from our audit work performed the Office of Accounts and Control in during our Single Audit of the State for the accumulating these amounts due to the time We could not ...

Informations

• Publié par: Uste
• Nombre de lectures: 26
• Langue: English

Extrait

S T A T EO F R H O D E I S L A N D  G E N E R A L A S S E M B L Y O F F I C Eo ft h eG E N E R A LA U D I T O R A UDITOR G ENERAL USMMIDTURA E RNEST A. A LMONTE , CPA, CFE [e-mail] I  NT E G R I T Y ♦ R E L I A B I L I T Y ♦ I N D E P E N D E N C E ♦ A C C O U N T A B I L I T Y JANUARY 2004 were recorded at $373 million at June 30, 2002.The State owns (or has STATE OF RHODE ISLAND acquired rights to) nearly 97,000 acres, which represents approximately 14% of CAPITAL ASSETS – SUMMARY DATA A N D the State’s total land area.Buildings RECOMMENDATIONS T O IMPROVE and related improvements were $576 CONTROLS A N D REPORTING million before accumulated S OF UN E  22 depreciation of $214 million.Other categories of capital assets include  Wecompleted a summary report Substantial effort was required toinfrastructure, computer systems, highlighting key facts and inventory and value (at historical cost) allvehicles and furniture and equipment. recommendations to improve controls and capital assets owned by the state at JuneThe report highlights certain of the reporting for the State’s significant 30, 2002 regardless of the year acquired.State’s largest capital assets in each investment in capital assets.This report This represented a significant challenge forcategory. emanates from our audit work performed the Office of Accounts and Control in during our Single Audit of the State for the accumulating these amounts due to the timeWe could not satisfy ourselves as to fiscal year ended June 30, 2002. span involved and the lack of records andthe completeness of certain categories documentation in many instances.of capital assets – furniture and  TheState reported its investment in Significant audit effort was also required toequipment (including computer capital assets at more than $1.2 billion at report on the amounts recorded for capitalsystems) and building improvements  June 30, 2002.While the State has assets and related depreciation at June 30,due to an insufficient number of improved its financial reporting through 2002. physicalinventories and weaknesses inclusion of capital assets, which had  inaccounting controls over the never before been reported, the  Landand land rights owned by the Stateaccumulation of such data. information for certain categories of capital assets is still incomplete.Physical and accounting controls over capital assets are lacking and need to be improved. A UDIT H IGHLIGHTS Significant resources must still be Ca werereported at $1.2 billion at June 30, 2002 before committed to complete the recording of all pital assets capital assets on the State’s financial accumulated depreciation of $319 million. statements. The State owns or controls 97,000 acres of land, which represents 14% of the State’s total land area.Historical cost of the State’s land is $373  Priorto fiscal 2002, the State was million. unable to report its investment in capital Buildings and related improvements were reported at $576 million before assets since the necessary accounting accumulated depreciation of $214 million. information had not been accumulated We could not satisfy ourselves as to the completeness of certain and maintained over the years.This categories of capital assets because inventories of capital assets are omission resulted in the repeated incomplete and accounting controls are lacking. qualification of the Independent Auditor’s Report issued at the conclusion of the The initial recording of capital assets must be completed to ensure all annual audit of the State’s financial capital assets are reported on the State’s financial statements. statements. Various steps need to be taken to improve accounting controls over capital assets, reduce duplication of effort, and make information available to su ortca italasset manaement efforts.

A UDIT S UMMARY – P AGE 2 S TATE OF R HODE I SLAND C APITAL A SSETS  Theinitial recording of capital assets must be completed to ensure that all capital assets have been reported on the State’s financial statements.Physical and accounting controls over capital assets need to be improved to ensure accurate and reliable reporting of the State’s capital asset activity.A temporary solution is needed to capture and report data until a more permanent integrated component to the State’s RISAIL accounting system can be implemented.Controls must be improved to meet federal requirements regarding tracking and controlling assets acquired with federal funds.Infrastructure assets acquired or constructed in prior years must be inventoried and valued at actual or estimated historical cost. Extensive duplication of effort exists among state agencies and capital asset information is not centrally organized or available to support capital asset management efforts. The report includes 14 recommendations to improve controls over the State’s capital asset activity. Copies of this report can be obtained by calling 2222435 or by visiting our website at www.oag.ri.gov.