AUDIT SUMM - SINGLE AUDIT FY02

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] NOVEMBER 2003 incomplete recording of the liability for compensated absences, and (3) the SINGLE AUDIT REPORT omission of certain fines and penalties FISCAL YEAR ENDED JUNE 30, 2002 revenue and receivable as assessed by the Judicial branch. We also We completed our Single Audit of the concluded that, except for the omission Convention Center, Employment Security) State for the fiscal year ended June 30, of encumbrances outstanding as a and Discretely Presented Component Units reserved component of fund balances 2002. This audit is required by both State (entities that are legally separate but for and Federal law. The Single Audit Report and the effects of not reporting certain which the State is financially accountable). includes the State’s basic financial fines and penalties revenue and Financial statements are also presented for statements, a schedule of federal program receivable within the general fund, the major funds of the State which focus on the expenditures, and findings and State’s major governmental funds are individual parts of State government and recommendations pertaining to the fairly presented. provide more detail than the government-financial statements and federal programs. ...

Informations

• Publié par: Udru
• Nombre de lectures: 15
• 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 eA U D I T O RG E N E R A L A UDITOR G ENERAL USMMIDTURA E RNEST A. A LMONTE , CPA, CFE  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 [e-mail] I NOVEMBER 2003 incomplete recording of the liability for compensated absences, and (3) the SINGLE AUDIT REPORT omission of certain fines and penalties F I S C A L Y E A R E N D E D J U N E 3 0 ,2 0 0 2 revenue and receivable as assessed by the Judicial branch.We also We completed our Single Audit of the Convention Center, Employment Security) concluded that, except for the omission State for the fiscal year ended June 30, and Discretely Presented Component Units of encumbrances outstanding as a 2002. Thisaudit is required by both State (entities that are legally separate but for reserved component of fund balances and Federal law.TheSingle Audit Report the State is financially accountable). and the effects of not reporting certain  which includes the State’s basic financial Financial statements are also presented for fines and penalties revenue and statements, a schedule of federal program major funds of the State which focus on the receivable within the general fund, the expenditures, and findings and individual parts of State government and State’s major governmental funds are recommendations pertaining to the provide more detail than the government fairly presented. financial statements and federal programs. wide financial statements. It also includes a corrective action plan  Wereported numerous deficiencies prepared by the State’s management to We concluded that the State’sin the State’s accounting and control address each finding and provide a governmentwide financial statementsprocedures. TheState implemented a timetable for implementation. present fairly the State’s net assets and the new accounting system during fiscal results of its operations for the fiscal year2002 which resulted in significant  TheSingle Audit Report ended June 30, 2002 except for the effects weaknesses in controls over the is provided to federal funding agencies as a condition of of (1) such adjustments, if any, as mightgeneral ledger, interfund transactions, continued federal assistance. have been required had we been providedaccounting adjustments, investment  sufficientevidence regarding the transactions and classification of completeness of the furniture andbankexpenditures. Additionally, Financial Statements reconciliations were not performed equipment, and building improvement  categoriesof capital assets, (2) theduring the fiscal year which  TheState’s financial statements for fiscal 2002 are presented in a new format mandated by the Governmental A UDIT H IGHLIGHTS Accounting Standards Board – the body which establishes accounting and financial reporting guidelines for governmental We expressed a qualified opinion on the State’s governmentwide financial entities. Significantchanges include the statements and major governmental fund statements. presentation of Management’s Discussion General fund expenditures and other uses exceeded revenues and other and Analysis and government–wide sources by $104 million. financial statements which provide a broad We reported significant deficiencies in the State’s controls over financial view of the State’s finances including reporting. capital assets and longterm liabilities.  The governmentwide financial statements Total expenditures of federal awards were more than $2 billion in fiscal are presented in sections – Governmental 2002. Activities (includes most of the State’s The State generally complied, in all material respects, with requirements basic services supported by taxes and applicable to federal programs; however, we did report instances of material grants), BusinessType Activities (Lottery, noncompliance and other findings where controls can be improved to enhance comliance.

A UDIT S UMMARY – PAGE 2 S INGLE A UDIT R EPORT F ISCAL 2002 represented a serious weakness in controlpassedthrough to subrecipients must beadversely impacts its own cash over cash receipts and disbursements.monitored by the State to ensure compliancemanagement.  withapplicable federal program  Priorto fiscal 2002, the State had notrequirements. Wefound that, for several Other findings reported include the accumulated information regarding itsprograms, the State needs to improve its need to strengthen controls to ensure investment in capital assets.Through ansubrecipient monitoring procedures,the allowability of program intensive effort, the historical cost of mostincluding cash advanced to subrecipients forexpenditures, eligibility for certain of the State’s capital assets wasprogram expenditures.federal programs and reporting of accumulated (and estimated in certainprogram expenditures. instances). Approximately$1.2 billionWe found other instances where controls (before accumulated depreciation) wasshould be improved to ensure compliance The audit report includes 15 recorded as the historical cost of thewith federal requirements.For example, findings related to controls over State’s capital assets at June 30, 2002.controls need to be strengthened over financial reporting and 51 findings We could not completely satisfy ourselvesaccess to the computer systems which arerelated to the administration of federal as to the completeness of certainused to authorize and deliver benefitsprograms. Acorrective action plan, categories of capital assets (furniture andthrough the electronic benefit deliveryprepared by the State’s management, equipment, building improvements andsystem for Food Stamp and Temporaryis also included which addresses each computer systems) because an insufficientAssistance For Needy Families programs.finding and provides a timetable for number of physical inventories were summary scheduleimplementation. A performed and because efforts toData used to determine eligibility for the of prior audit findings is also included accumulate costs for these categoriesTemporary Assistance For Needy Families which reports the status of findings were incomplete.We also reported that(TANF) program is matched to datafrom prior audits. controls need to be improved to ensurecontained in other federal and state proper identification and recording ofcomputer systems.We found thatof the Single Audit Report Copies capital assets within the accountingdiscrepancies resulting from data matches can be obtained by calling 2222435 or system. werenot always investigated or resolved by visiting our website at  promptlywhich weakens controls over thewww.oag.ri.gov. Federal Awards determination of eligibility and benefit levels  forthe TANF program.  Federalassistance is provided to the State under approximately 400 programsWe reported that the State needs to each with specific objectives andimprove oversight of its fiscal agent that requirements. Federalassistance isprocesses claims for the Medicaid program. mostly cash awards that are used to fullyAdditional financial monitoring procedures or partially fund federal programs.For arenecessary to ensure that effective example, the federal government fundscontrols are in place over program approximately 54% of Medical Assistancedisbursements and that financial data is program costs with the State funding thebeing accurately reported for presentation in remaining share.The Medicaid program,the State’s financial statements. which pays for medical care for needy individuals is the single largest federal Child Support Enforcement needs to program administered by the State. Total enhancecontrol procedures to ensure that program costs were more than $1.3 billion medical coverage information is obtained for fiscal 2002 with the federaland recorded within its computer system on government’s share totaling $736 million.a timely basis when the Court has ordered  anabsent parent to provide medical support.  Formany of the programs tested, we found that the State complied in allThe State also needs to implement material respects with applicablecentralized monitoring controls to ensure it compliance requirements.We did reportdraws federal funds in reimbursement of instances where the State should improveprogram costs at theappropriate time.We controls to ensure compliance with federalfound that, in most instances, the State does requirements.not draw cash quickly enough, whichFor example, federal funds