Financial-Compliance Audit For the Two Fiscal Years Ended June 30, 2002 Audit Number 02-15 Report Summary
This report documents the results of our financial-compliance audit of the Department of Natural Resources and Conservation (department) for the two fiscal years ended June 30, 2002. The previous report contained seven recommendations to the department. The department implemented five recommendations and partially implemented two recommendations.
This report contains eight recommendations directed to the department. The first section in the report concerns accounting issues and discusses ways the department can improve compliance with state accounting policy and reduce errors on the department's accounting records. There are four recommendations related to accounting issues.
The second section discusses compliance with state laws and how the department could improve compliance with state laws. There are two recommendations related to compliance with state laws.
The last two report issues relate to federal compliance items. There are two recommendations regarding preparation of the Schedule of Expenditures of Federal Awards and the Timing of State Revolving Fund Audits.
This report also contains a disclosure issue relating to the distribution and use of Public School Fund mineral royalty receipts.
We issued a qualified opinion on the financial schedules contained in the report for each of the two years under audit. This means the reader should use caution when using the presented financial information and the supporting data on the state's accounting records.
The departments written response to the audit begins on page B-3.
The listing below serves as a means of summarizing the recommendations contained in the report, the department's response thereto, and a reference to the supporting comments.
Recommendation #1 We recommend the department:
A. Record nonbudgeted expenditures activity in the proper subclass.
Department Response: Concur.
B. Work with the Department of Administration to establish SABHRS controls to prevent transactions with invalid department subclasses from posting to the accounting system.
Department Response: Concur.
Recommendation #2 We recommend the department:
A. Record accounting transactions in accordance with state law and policy
Department Response: Concur.
B. Implement an oversight control procedure to detect and correct accounting errors.
Department Response: Concur.
Recommendation #3 We recommend the department continue to work with the Department of Administration to develop accounting procedures for recording easements.
Department Response: Concur.
Recommendation #4 We recommend the department properly record revenue in the accounting records by fiscal year-end to properly match revenue and expenditures in its federal funds.
Department Response: Concur.
Recommendation #5 We recommend the department:
A. Establish a Board of Adjustment for each conservation district that has adopted an ordinance.
Department Response: Concur.
B. If necessary, seek legislation to eliminate or modify the board of adjustment requirement.
Department Response: Concur.
Recommendation #6 We recommend the department ensure payments received at field offices are deposited in accordance with state law and policy.
Department Response: Concur.
Recommendation #7 We recommend the department accurately and completely prepare its Schedule of Expenditures of Federal Awards.
Department Response: Concur.
Recommendation #8 We recommend the department establish procedures to complete the State Revolving Fund financial statements to ensure the audit report can be completed within one year as required by federal regulations.
