Audit Division

Audit Summary

Department of Museums, Library and Arts

Division of Museums and History

Nevada Historical Society

Report LA98-2

Results in Brief

The Nevada Historical Society complied with laws and regulations significant to its financial and administrative activities except it is unclear if admission fees have been established according to law. The Society also has not documented clear methods for allocating the cost of operations between its private and state budget accounts. In addition, the Society's internal controls over revenue do not ensure admission fees are properly accounted for and adequately safeguarded.

Principal Findings

1. Despite a 1989 law change, the Society did not start charging an admission fee until July 1994. We found a lack of evidence the Board established an admission fee for the Society pursuant to statute. By not charging a fee for fiscal years 1990 to 1994, the Society gave up the opportunity to collect additional revenues that could have been used to off-set or supplement general fund appropriations. (page 7)

2. The Society can improve its accountability over costs by documenting how costs are allocated between its state and private accounts. Clearly documented allocation methods are critical to ensure the consistent recording of transactions in accordance with legislative and management directives, objectives, and legal requirements. (page 8)

3. Internal controls over museum admission fee revenues do not ensure cash receipts are safeguarded and properly recorded. Our assessment of the cash receipt control system identified lack of supervisory review, reconciliation procedures, and separation of duties. (page 9)