Audit Division Audit Summary Department of Conservation and Natural Resources Commission for the Preservation of Wild Horses Report LA98-27

Results of Briefs

The Commission has generally complied with laws, regulations, and policies significant to its financial administration. However, the Commission did not always follow procedures for collecting, recording, and monitoring of miscellaneous revenues designed to safeguard these monies according to state laws and policies. Furthermore, the Commission did not have written internal control policies and procedures. The lack of adequate policies and procedures increases the risk the system of internal control may not safeguard assets, ensure compliance with laws, and meet management goals.

Principals Findings

The following are selected findings from our audit of the Commission for the Preservation of Wild Horses:

The procedures used to collect, record, and monitor miscellaneous revenues did not ensure the agency safeguarded and processed this money according to state laws and policies. The Commission did not write receipts or maintain a check log for miscellaneous revenues. Further, the Commission did not date stamp all orders received, restrictively endorse checks when received, or require checks be made payable to the Commission or the State. (page 8)

Since the Commission did not maintain sufficient documentation identifying when cash and checks were received, we could not determine if all the money received was deposited timely in accordance with state laws. (page 8)

Audit Division Audit Summary Department of Conservation and Natural Resources Commission for the Preservation of Wild Horses (continued)

The magazine subscription listings contained duplicate names, did not clearly indicate complimentary subscriptions, and did not clearly indicate subscription periods. Further, the subscription files were disorganized and incomplete. As a result, we could not reconcile magazine revenues to a list of subscribers. (page 8)

The Commission did not have written policies and procedures to carry out the system of internal and administrative controls. Furthermore, the agency did not periodically review its system. After the Commission moved to the DCNR, new policies and procedures were written. Although we did not test these new controls, they address some of the problems noted in this report. (page 9)

Department of Conservation and Natural Resources

Commission for the Preservation of Wild Horses

Agency Response to Audit Recommendation Recommendation
Number Accepted Rejected

1 Maintain a check log for miscellaneous revenue.......... X

2 Restrictively endorse checks when received................ X

3 Ensure checks are made payable to the State
or Commission........................................................ X

4 Develop an effective filing system for magazine
subscriptions........................................................... X

5 Maintain subscription listings that clearly identify
effective dates and complimentary subscriptions..... X

6     Review and update the written policies and
       procedures to carry out an internal control
       system for the Commission...................................                   X

7     Perform periodic reviews of the internal control
       system..................................................................                  X

                                                                TOTAL                         X                   0