Department of Information Resources
Management Letter
Report Number 95-048
OVERALL CONCLUSION
While there were no significant control weaknesses that came to our attention, opportunities exist for the Department of Information Resources to improve the cash receipts and disbursement processes, human resource management, and cost recovery operations.
KEY FINDINGS
Controls over cash receipts need to be developed and implemented to ensure the timely collection and deposit of funds entering the agency's accounting system. Delinquent accounts in the 61-90 day category increased over 531 percent in the six-week period between July 1 and August 17, 1994.
Controls over cash disbursements are not adequate to ensure timely and accurate payment of vendors nor do they allow for appropriate analysis of available cash on hand. An incorrect payment of $338,188 was made to a vendor, and 30 percent of those cash disbursements tested were not paid within the 30-day payment period required for governmental entities.
Human resource controls in the Accounting and Purchasing department need to ensure that employees meet the agency's minimum requirements for education and experience or that evaluations are completed within established time frames. The Department needs a staffing plan to determine the number and type of employees needed for each department and function at the agency.
The method for preparing the cost savings estimate used by the Cooperative Contracts program has not been approved by the board or agency management. The assumptions used in this methodology are not regularly and systematically updated.
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