Audit Division Audit Summary Department of Business and Industry Nevada Attorney for Injured Workers Report LA98-23

Results in Brief

Although the Nevada Attorney for Injured Workers has implemented some management controls, it has not fully developed comprehensive policies and procedures to ensure compliance with laws and regulations significant to its financial administration. As a result, the NAIW did not transfer all approved revenues and inadvertently spent $45,000 earmarked for a specific program. Also, improvements to the management information system are necessary to ensure accurate performance reports. In addition, there are weaknesses in controls over expenditure, personnel, and payroll processes.

Principal Findings

The following are selected findings from our audit of the Nevada Attorney for Injured Workers:

For two fiscal years the agency did not transfer $141,000 approved by the Interim Finance Committee into its budget account. As a result, the NAIW inadvertently spent $45,000 earmarked for expected additional personnel costs related to Senate Bill 458. Senate Bill 458 of the 1995 session made various changes to provisions relating to industrial insurance. (page 7)

The agency's management information system is cumbersome, time-consuming, and problematic. This resulted in inaccurate management reports. We found 20 percent of the Appeals Officers' decisions and 16 percent of the date of those decisions in our sample were either omitted or incorrectly recorded in the information system. (page 9)

There are weaknesses in controls over expenditures, personnel, and payroll, resulting in late payments to vendors, duplicate payments to vendors, late submission of travel claims, untimely personnel evaluations, and late submission of time sheets. (page 12)

Department of Business and Industry Nevada Attorney for Injured Workers Agency Response to Audit Recommendations Recommendation
Number Accepted Rejected

1 Monitor revenues to ensure all transfers are made
timely...................................................................... X

2 Ensure employees are provided training in the
state's accounting system....................................... X

3 Ensure data are recorded in a consistent, accurate,
and prompt manner................................................ X

4 Continue working to improve the management
information system................................................ X

5 Pay invoices timely..................................................... X

6 Submit all travel claims within one month of com-
pletion of travel....................................................... X

7 Cancel encumbrances when goods are received........ X

8 Prepare employee evaluations as required by statute. X

9 Reconcile batch cover sheets to the pay register........ X

10 Ensure BTAs are submitted timely............................ X

11 Develop comprehensive written policies and pro-
cedures to ensure management controls are in
accordance with NRS 353A..................................... X

TOTALS 11 0