Audit Division

Audit Summary

 

Office of Attorney General

Report LA00-24

 

Results in Brief

            Our review of the Office of Attorney General (OAG) found some control weaknesses that did not always make it possible for the agency to comply with laws and regulations significant to its financial administration.  For example, OAG did not fully comply with laws and regulations governing the handling and deposit of cash receipts, the recording of financial transactions, and the control of telephone cards issued to employees.

            In addition, sufficient documentation was not always available to support OAG’s financial transactions. Also, policies and procedures did not adequately address OAG’s financial and administrative responsibilities.

 

Principal Finding

·                   
OAG processed more than $3 million in cash and checks during fiscal year 1999, logging in $2.3 million of that amount.  We found 43% of the cash receipts logged in during fiscal year 1999 did not meet the timely deposit requirements of NRS 353.250.  In addition, we found 13 instances where cash receipts of $10,000 or more accumulated beyond the one working day allowed before a deposit must be made.  (page 7)

·                    Tort claims expense of $343,000 that should have been recorded in fiscal year 1998, was actually recorded in fiscal year 1999.  Similarly, $1 million in tort claims expense that should have been recorded in fiscal year 1999, was actually recorded in fiscal year 2000.  In both instances, sufficient reserves existed to pay these claims in the appropriate fiscal year.  (page 11)

·                    Credit entries totaling $16,000 reduced expenditures in eight budget accounts.  The proper recording of these credit entries would result in authorized expenditure levels being exceeded in four expenditure categories for three of these budget accounts.    (page 13)

·                    We identified 41 telephone cards listed on the Department of Information Technology’s master list as assigned to OAG that could not be traced to specific individuals at OAG.  (page 13)

 

 

Office of Attorney General

Agency Response

to Audit Recommendations

 

Recommendation Number		Accepted	Rejected
1	Deposit money timely in accordance with NRS 353.250	X
2	Establish standards that clearly state what is acceptable deposit evidence, and ensure cash receipts are recorded correctly	X
3	Require the use of cash receipt logs at all offices, restrictively endorse checks as soon as practicable, and ensure cash receipts are adequately safeguarded	X
4	Transfer reserve funds within the tort claims budget account, as needed, to pay tort claim expense	X
5	Record financial transactions properly	X
6	Establish accountability over the use of telephone cards issued to employees	X
7	Review all policies and procedures, establishing or revising policies and procedures where needed	X
8	Review internal controls, establishing or revising controls where needed	X
9	Regularly monitor policies and procedures, and the system of internal control to ensure they are operating as prescribed	X
TOTALS		9	0