STATE OF CONNECTICUT - Connecticut General - Departmental...  STATE OF CONNECTICUT AUDITORS OF PUBLIC

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  • STATE OF CONNECTICUT

    AUDITORS OF PUBLIC ACCOUNTSJOHN C. GERAGOSIAN ROBERT M. WARD

    AUDITORS' REPORTOFFICE OF THE STATE COMPTROLLER

    DEPARTMENTAL OPERATIONS FOR THE FISCAL YEARS ENDED JUNE 30, 2008, 2009 AND 2010

  • Table Of Contents

    INTRODUCTION.....................................................................................................................1

    COMMENTS ............................................................................................................................2

    FOREWORD .........................................................................................................................2Officers...............................................................................................................................4

    RSUM OF OPERATIONS ...............................................................................................5Departmental Operations General Fund Revenues .........................................................5Departmental Operations General Fund Expenditures ...................................................6Special Appropriations Administered by the State Comptroller........................................6

    Refunds of Payments .....................................................................................................7Adjudicated Claims .......................................................................................................7Maintenance of Fire Radio Networks............................................................................8Police Association of Connecticut.................................................................................8Connecticut State Firefighters Association ...................................................................8Interstate Environmental Commission ..........................................................................8Reimbursement to Towns for Loss of Taxes on State Property....................................9Reimbursement to Towns for Loss of Taxes on Private Tax-Exempt Property............9Unemployment Compensation ....................................................................................10Group Life Insurance...................................................................................................11Tuition Reimbursements - Training and Travel ..........................................................11Employers Social Security Tax ...................................................................................11State Employees and Retired State Employees Retirement and Health Care Costs ...12Capital Project Outlays................................................................................................12Grants to Towns - Conservation Special Revenue Fund.............................................12Grants to Towns - Mashantucket Pequot and Mohegan Fund.....................................13Funds Awaiting Distribution .......................................................................................13

    STATE AUDITORS FINDINGS AND RECOMMENDATIONS .......................................14

    Funds Awaiting Distribution Fund Accounts Unreconciled Account ..........................14Pre-Audits of Purchase Orders.........................................................................................15Segregation of Duties in Core-CT Financial Roles..........................................................16Property Inventory Records and Annual Report ..............................................................17Petty Cash Fund ...............................................................................................................20GAAP Reporting Package................................................................................................22Business Continuity Plan .................................................................................................23Payroll and Personnel.......................................................................................................25

    Compensatory Time Procedures and Records..........................................................25Leave in Lieu of Accrual - Procedures and Records ...................................................27Overtime - Procedures and Records ............................................................................29Monitoring Use of Sick Leave.....................................................................................30Personnel Procedures and Records...........................................................................31Monitoring Personnel Actions History........................................................................34

    RECOMMENDATIONS ........................................................................................................35

    CONCLUSION .......................................................................................................................39

  • STATE OF CONNECTICUT

    AUDITORS OF PUBLIC ACCOUNTSState Capitol

    JOHN C. GERAGOSIAN 210 Capitol Avenue ROBERT M. WARDHartford, Connecticut 06106-1559

    November 20, 2014

    1Department and Fiscal Years

    INTRODUCTION

    AUDITORS REPORTSTATE COMPTROLLER - DEPARTMENTAL OPERATIONS

    FOR THE FISCAL YEARS ENDED JUNE 30, 2008, 2009 AND 2010

    We have audited certain operations of the State of Connecticut, Office of the State Comptroller Departmental Operations in fulfillment of our duties under Section 2-90 of the Connecticut General Statutes. The scope of our audit included, but was not necessarily limited to, the years ended June 30, 2008, 2009 and 2010. The objectives of our audit were to:

    1. Evaluate the departments internal controls over significant management and financial functions;

    2. Evaluate the department's compliance with policies and procedures internal to the department or promulgated by other state agencies, as well as certain legal provisions; and

    3. Evaluate the economy and efficiency of certain management practices and operations, including certain financial transactions.

    Our methodology included reviewing written policies and procedures, financial records, minutes of meetings, and other pertinent documents; interviewing various personnel of the department; and testing selected transactions. We obtained an understanding of internal controls that we deemed significant within the context of the audit objectives and assessed whether such controls have been properly designed and placed in operation. We tested certain of those controls to obtain evidence regarding the effectiveness of their design and operation. We also obtained an understanding of legal provisions that are significant within the context of the audit objectives, and we assessed the risk that illegal acts, including fraud, and violations of contracts, grant agreements, or other legal provisions could occur. Based on that risk assessment, we designed and performed procedures to provide reasonable assurance of detecting instances of noncompliance significant to those provisions.

  • Auditors of Public Accounts

    2Office of the State Comptroller Departmental Operations 2008, 2009 and 2010

    We conducted our audit in accordance with the standards applicable to performance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform our audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides such a basis.

    The accompanying Rsum of Operations is presented for informational purposes. This information was obtained from the department's management and was not subjected to the procedures applied in our audit of the department. For the areas audited, we identified:

    1. Deficiencies in internal controls;

    2. Apparent noncompliance with legal provisions; and

    3. Need for improvement in management practices and procedures that we deemed to be reportable.

    The State Auditors Findings and Recommendations in the accompanying report presents any findings arising from our audit of the Office of the State Comptroller.

    COMMENTS

    FOREWORD

    The Office of the State Comptroller operates primarily under the provisions of Article Fourth, Section 24, of the State Constitution and Title 3, Chapter 34 of the General Statutes. During the audited period, the Office of the State Comptroller was organized into seven divisions, as described below:

    Accounts Payable Division

    Initiates and monitors the pay cycle process for the generation of payments in settlement of the states obligations and conducts post transactional examinations of encumbrances and expenditures to determine the validity, propriety and legality of the states submitted claims in accordance with the General Statutes and regulations established by the states expending authorities.

    Budget and Financial Analysis Division

    Performs the states accounting and cost accounting functions, and analyzes and reports state receipts and expenditures. Also responsible for the states financial reporting function that includes the preparation of the annual and monthly financial reports, such as the Comprehensive Annual Financial Report (CAFR) that analyzes the states overall fiscal position. This division also computes and reports direct and indirect costs associated with major state programs. In addition, this division develops and promulgates

  • Auditors of Public Accounts

    3Office of the State Comptroller Departmental Operations 2008, 2009 and 2010

    accounting systems and procedures for use by state agencies and monitors agency compliance with these systems an