Federal funds have requirements that govern how these funds may be spent. State agencies and universities generally have effective policies and procedures in place to ensure the State complies with federal grant requirements. Contract administration continues to be a concern. The problems observed during this audit have to do with the administration of contracts, particularly monitoring of contractors. These problems ranged from signing contracts after the starting date to not identifying monitoring needs for high risk contracts.
Efforts improve accountability to the State.
This utilization of USAS ensures that the information is more accurate and in a consistent format for the users of the financial statements. Our review of this process indicates that it is working well. The State is in compliance with bond covenants. Compliance with bond covenants was audited by other auditors under the SAO's direction. These auditors found that all of the 29 agencies and universities they audited complied with all significant bond covenant requirements.