An Audit Report on Financial Processes at the Parks and Wildlife Department
March 2007
Report Number 07-021
Overall Conclusion
The Parks and Wildlife Department (Department) should improve its overall management and operation of the state park system. The Department overstated state park visitation data by approximately 43 percent in fiscal years 2005 and 2006. It also does not maximize park entrance fee revenue or systematically analyze opportunities to identify additional revenue sources, such as concessions.
Auditors analyzed the Department's reported entrance fee revenue and park visitation data. Auditors estimated that the loss of potential entrance fee revenue--due to not collecting entrance fees from most after-hours visitors and visitors receiving largely undocumented discounts--was $16 million in fiscal years 2005 and 2006. It is important to note that this amount could be offset by the costs incurred to collect this revenue and customers' willingness to pay to enter state parks after regular park hours. The accuracy of park visitation data is crucial because it is a reflection of the demands for park services; however, the Department does not effectively use this data in its strategic planning, decision-making, and budgeting processes.
The Department also needs to develop a reliable method to produce consistent cost estimates for park repairs. Historically, there have been significant variances between estimated and actual repair costs. Although the Department has improved its cost estimating process, it has not clearly defined its criteria for prioritizing park repair needs effectively. Auditors visited five state parks and one historic site and verified that repairs were needed, but we could not verify the accuracy of the Department's cost estimates for those repairs.
Significant financial control weaknesses exist in park revenue collection and reporting processes, which has resulted in lost revenue. The State Auditor's Office, the Department's internal auditor, and an outside consultant have previously cited some of these weaknesses and risks in reports issued since 1998. The delay in addressing these weaknesses is not attributed to particular individuals but, rather, is a reflection of the State Parks Division's limited expertise in business and fiscal management.
Contact the SAO about this report.
Download the Acrobat version of this report. (.pdf)
If you prefer an HTML version, follow this link to an Adobe site which converts PDF files to HTML.