Audit Division Audit Summary Lost City Museum L98-4

Results in Brief

The Lost City Museum did not always comply with laws and regulations significant to its financial administration. The Lost City Museum recorded June admission fees received from bus tour operators into the wrong fiscal year. The museum did not comply with regulations for accrual and payment of overtime, prompt submission of employee travel claims, and written justification in advance for lodging less than 50 miles from the principal station of work. Also, the Lost City Museum has not sufficiently documented its internal control procedures over the collection and deposit of admission fees.

Principal Findings

The following are selected findings from our audit of the Lost City Museum. We found the Lost City Museum:

Has not documented the terms and conditions with bus tour operators in a written agreement. (page 9)

Deposited June bus tour admission fees into the wrong fiscal year in 1993, 1994, 1995, and 1996. (page 10)

Has not developed management controls to ensure that overtime is accrued and paid in accordance with NAC 284.250. We noted 4 employees who accrued more than 120 hours of overtime. As of June 30, 1996, the Lost City Museum was liable for 1,183 hours of overtime totaling $16,944, which is approximately 7% of the Lost City Museum's state budget of $252,859. (page 11)

Did not submit travel claims promptly after the completion of travel. One travel claim was submitted 140 days after travel. Three other travel claims were submitted 47, 55, and 62 days after the completion of travel. (page 11)

Agency Response to Audit Recommendations

Recommendation
Number Accepted Rejected

1     Document the significant terms of charging and
        collecting admission fees from bus tour operators
        in a formal agreement............................................                 X

2 Develop procedures to ensure revenue is deposited
and recorded to the proper fiscal year.................... X

3 Compensate employees for overtime in accordance
with NAC 284.250.................................................. X

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

5 Require written justification in advance for lodging
less than 50 miles from principal station of work... X

6 Develop and document written procedures for the
collection and deposit of admission fees............... X

TOTALS 6 0