Audit Division

Audit Summary

Department of Conservation and

Natural Resources

Division of Water Planning

Report LA96-26

Results in Brief

Although the Division complied with laws and regulations significant to grant payments for capital improvements to public water systems, it did not always comply with laws and regulations significant to the financial administration of state agencies. The Division charged the wrong budget account for the purchase of furniture, failed to perform employee evaluations, and lacks controls to ensure all fees are deposited and accounted for.

Principal Findings

1. Contrary to law, the Division charged furniture purchased for the benefit of the entire Division to the Capital Improvements Account. As a result, the Division used grant administration fees totaling $2,700 to support General Fund expenditures. (page 9)

2. The Division did not always prepare performance evaluations for its 4 classified employees in accordance with state law. Two employees have not received annual evaluations, one employee did not receive any probationary evaluations or timely annual evaluations, and one employee did not receive timely probationary evaluations. (page 10)

3. The Division lacks several critical controls over the revenue collection process. Cash receipting and depositing duties have not been separated to provide effective checks and balances. In addition, the Agency has no assurance that all payments have been deposited and accounted for since key documents are not reconciled to deposits. (page 12)