Audit Division
Audit Summary
Although the Office of Lieutenant Governor generally complied with applicable laws, regulations, and policies and procedures, we found some instances of non-compliance. Because the Office has not documented a system of internal control, expenditures were not always in compliance with laws and regulations and assets were not properly safeguarded. Furthermore, the lack of a documented system prohibits the Office from reporting whether its system is in compliance with the state’s uniform system of internal control. NRS 353A requires state agencies to document, review, and report on their system of internal accounting and administrative control. Internal controls include policies and procedures to ensure resource use is consistent with laws and regulations and resources are safeguarded against waste, loss, and misuse.
· The Office does not have written travel policies to ensure
compliance with applicable laws and regulations. As a result, the Office inappropriately paid for meals, lodging
allowances, and personal phone calls. (page 4)
· The Office does not have adequate controls to ensure assets
are safeguarded. Internal control
standards require procedures for authorizations and recordkeeping to
effectively control accounting of assets and expenditures. However, the Office’s furniture and
equipment inventory list was not accurate and complete and controls have not
been established to prevent duplicate payment of invoices. (page 5)
·
The Office did not
review its system of internal control as required by NRS 353A. As a result, the Office did not report whether
its system was in compliance with the state’s uniform system. Without periodic reviews, the Office has no
assurance it is in compliance with applicable laws, regulations, and policies,
and that controls are cost effective.
(page 6)
· Although the Administrative Services Division pro-vides
administrative and accounting functions for the Office, there is no written
agreement defining the Division’s scope of responsibilities. Without clearly defined responsibilities,
the Office of Lieutenant Governor has no assurance assets and expenditures are
properly accounted for and effectively controlled. (page 6)
Agency Response
to Audit Recommendations
|
Recommendation Number |
|
Accepted |
Rejected |
|
1 |
Develop written
procedures to carry out the system of internal accounting and administrative
control as required by NRS 353A.020 |
x |
|
|
2 |
Periodically review the system of
internal accounting and administrative control and report to the Department
of Administration whether the system is in compliance with the state’s
uniform system as required by NRS 353A.025 |
x |
|
|
3 |
Develop a
clear understanding of what duties the Administration Services Division will
provide and formalize the duties in a written agreement |
x |
|
|
TOTALS |
|
3 |
0 |