In 1998, the Financial Audit Division conducted 37 audits of departments or agencies not included in the Statewide Audit. Among the 37 entities were three metropolitan agencies and various state agencies, boards and commissions. The agency audits focused on overall financial management, and on internal control and legal compliance. The audit reports contained 81 findings and recommendations for improved financial practices. The audits of some of the entities identified significant financial management concerns, while other audits noted fewer problem areas.
Audits always require a lot of staff collaboration.
The office, which was created by Executive Order in 1996, relied on funding and staff from a number of state agencies to carry out its mission. The audit found that these funding arrangements created awkward situations in which the officials designated by the Legislature as responsible for appropriations could not effectively exercise control over the use of the money. The audit report said the state should avoid such funding arrangements in the future. In addition, the audit found that the office showed a lack of fiscal responsibility in many of its early spending decisions. The office erroneously paid some employee expenses, resulting in some duplicate payments.