All year-end accounting adjustments the Department made during its annual financial reporting process were appropriate.
However, the Department’s fiscal year 2015 annual financial report contained errors in the balances presented for capital assets and long-term liabilities.
Specifically, capital assets was understated by $63,766, and the beginning balance of employees’ compensable leave (a long-term liability) was understated by $3,875,978.
In addition, the Department did not meet certain Office of the Comptroller of Public Accounts reporting due dates for annual financial report certifications.
Specifically, the Department submitted 5 (28 percent) of 18 required annual financial report certifications from 10 to 38 days late, and it did not formally document
its review and approval of 16 of those certifications. The Department also should (1) maintain documentation to support its required year-end reconciliation of balances
in CAPPS and in the Uniform Statewide Accounting System (USAS) and (2) perform a year-end reconciliation of its capital asset balances in CAPPS, the State Property Accounting system, and USAS.
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