A Performance Audit
An Audit Report on the Funeral Service Commission
The Funeral Service Commission (Commission) had significant weaknesses over its processes for revenue management and user access to confidential enforcement records. Further, the Commission lacked processes to regulate staff activities across the entire Commission—including licensing, enforcement, and financial operations—that could affect its ability to effectively function in these areas.
SIGNIFICANT FINANCIAL AND OPERATIONAL WEAKNESSES
The Commission had weaknesses in its processes and safeguards including:
- The process for handling revenue received left cash, checks, and money orders unsecured and at a high risk of loss or theft.
- Inadequate safeguards over licensing, enforcement, and financial records that may contain agency-critical or otherwise confidential information, which allowed four former employees to access the Commission’s systems after leaving the agency.
- Insufficient documented guidance, operational policies and procedures, and training.
- Inaccurate coding of revenues in its accounting system, resulting in large discrepancies between its financial and licensing/enforcement systems, limiting the Commission’s ability to reconcile recorded revenue with deposits in the State Treasury.
- Missing or incomplete licensing and enforcement documentation, including licensing applications, records demonstrating that licensees met requirements, and documentation for penalty assessments.