Results in Brief

The Division needs to improve its financial management practices to ensure proper accountability of state resources. For instance, poor controls over assets have contributed to thousands of dollars in missing equipment. In addition, most overtime worked by Division employees was not properly approved and employee overtime balances were not monitored. These problems occurred because the Division did not follow state laws and regulations and its policies and procedures for controlling these areas. Furthermore, the Division has not developed and adopted regulations for administering the state’s Emergency Assistance Account.

Principal Findings

· Poor controls over the Division’s assets contributed to lost or misplaced equipment. The Division was not able to locate 5 of 25 assets we selected to review. These missing items cost more than $7,000. In addition, the Division reported 23 other assets, costing almost $33,000, have been missing for several years. Inventory problems occurred because the Division did not follow its policies and procedures and state laws for safeguarding assets. (page 6)

· The Division did not follow its overtime approval policy for most overtime it paid during fiscal year 2001. Division policy requires overtime be requested in writing and approved prior to being worked. However, the Division could not provide documentation showing the approval for $24,288 of $28,060 in overtime paid. One employee accounted for most overtime worked and received overtime pay of $23,400. (page 9)

· The Division allowed two employees to accumulate and maintain compensatory time balances over 120 hours without an agreement required by personnel regulations. In May 2001, compensatory time balances for these employees were 206 and 141 hours. Allowing employees to accrue excess compensatory time creates a liability to the State that must be resolved by payment or time off. (page 10)

· Since 1999, Nevada law has required the Division to establish regulations for the state’s Emergency Assistance Account. However, the Division has yet to develop and adopt regulations. This account provides money to help local governments pay for disaster related expenses. These expenses totaled about $647,000 during fiscal years 2000 and 2001. Regulations are needed to help the Division carry out statutory requirements, ensure local governments are treated consistently regarding financial assistance and reporting, and provide assurance that activities meet the Legislature’s intent. (page 11)

Department of Public Safety

Division of Emergency Management

Agency Response

to Audit Recommendations

Recommendation Number		Accepted	Rejected

1	Conduct an annual inventory of assets and reconcile inventory records to those maintained by the Purchasing Division.	X

2	Update equipment use agreements periodically.	X

3	Approve overtime in writing for all employees in accordance with Division policy.	X

4	Monitor compensatory time balances to ensure employees do not exceed the limits established by personnel regulations.	X

5	Develop and adopt regulations for the Emergency Assis-tance Account.	X

	TOTALS	5	0