A Performance Audit
An Audit Report on Financial Processes at the State Law Library
June 2022
Summary Analysis
The State Law Library (Library) did not have adequate processes and controls for financial transactions related to vendor payments, revenue management, or capital assets. It did manage payroll expenditures in compliance with applicable requirements.
Vendor Payments and Revenue Management. The Library’s processes for managing revenue and paying vendors had significant weaknesses, primarily related to a lack of segregation of duties. In addition, the Library did not adequately document its invoices or control user access to its invoice application, and it did not properly secure the cash and checks it collected as revenue.
Capital Assets. The Library did not have adequate processes and controls to ensure that capital assets were properly recorded, tracked, and safeguarded as required by the Office of the Comptroller of Public Accounts. In addition, the Library should strengthen processes and controls to ensure the security of the information recorded in Koha, the system it uses to manage its books and reference materials.
Payroll Expenditures. The Library had effective processes and controls in place to ensure that its payroll expenditures were allowable, properly approved and supported, and accurately recorded, all in accordance with applicable requirements.
The State Law Library (Library) had significant weaknesses related to segregation of duties for its revenue management and vendor payment processes. Specifically, one staff member was able to perform nearly all functions associated with collecting, depositing, and recording revenue, without oversight; that same staff member was able to perform all functions associated with making payments to vendors, with limited oversight.
In addition, the Library did not (1) properly document its invoices, (2) adequately control user access to its invoice application, or (3) maintain physical security over the cash and checks it collected as revenue. Though a small agency, the Library is still responsible for implementing processes and controls for financial transactions to ensure oversight and accountability.
The Library had effective processes and controls in place to ensure that its payroll expenditures were allowable, properly approved and supported, and accurately recorded, all in accordance with applicable requirements.
The Library did not have adequate processes and controls to ensure that capital assets were properly recorded, tracked, and safeguarded as required by the Office of the Comptroller of Public Accounts. In addition, the Library should strengthen processes and controls to ensure the security of the information recorded in Koha, the system it uses to manage its books and reference materials.
Graphics, Media, Supporting documents