Senate
A Special Report on the Senate's Annual Financial Report and the Uniform Statewide Accounting System
February 1997
Report Number 97-034
Overall Conclusion
Opportunities exist to improve the accuracy of financial information included in the Senate's Annual Financial Report (AFR) and the Uniform Statewide Accounting System (USAS). Cash and consumable inventory balances in the fiscal year 1995 AFR were materially accurate. However, accounts payable, fund balance, fixed asset, revenue, and expenditure accounts in the AFR and USAS contained errors. The errors appeared to be unintentional mistakes by Senate accounting staff, rather than deliberate misrepresentations. Additionally, some improvements to internal controls would help identify travel expenses that have already been reimbursed and provide more detailed information about spending and slow-moving inventory items. Senate staff members have already taken steps to address the errors and control weaknesses noted in this report.
Key Facts and Findings
Fiscal year 1995 cash and consumable inventory balances (approximately $6.3 million and $389,000, respectively) in the AFR were materially accurate according to generally accepted accounting principles and Reporting Requirements for Annual Financial Reports of State Agencies (Comptroller Reporting Requirements).
Errors in the fiscal year 1995 AFR significantly affected amounts reported for accounts payable, fund balance, fixed assets, and some revenues and expenditures. Errors were considered significant if they totaled 15 percent or more of the reported amount. Fiscal year 1995 expenditures and revenues for the Senate in the Uniform Statewide Accounting System also contained significant errors. The Senate Auditor adjusted the fiscal year 1996 AFR to correct the effects of the prior year's errors.
An agency fund should be included in future AFRs to report activity in an employee service account. The amount disbursed from this account during fiscal year 1995 was approximately $67,000.
During fiscal year 1995, procedures for processing travel vouchers did not ensure identification of expenses that had already been paid. Three vouchers out of 224 tested included costs that had already been reimbursed to employees. Additionally, the accounting records did not provide detailed travel expenditure and furniture purchase information, nor did they identify slow-moving or obsolete inventory items. The Senate Auditor is developing procedures to address these issues.
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