Accounting system policies and procedures are not documented. Although known weaknesses in the accounting system were not corrected during fiscal year 1994, the Department has indicated a commitment to correcting the situation. Key Findings Known control weaknesses in the accounting system were not corrected during fiscal year 1994. Although the Department took action to address problems within the accounting system in early 1994, significant weaknesses continued at the end of the fiscal year. Supervision of the reporting process is inadequate.
Reconciliations related to federal reports include unsupported adjusting entries.
The Department does not ensure that subrecipients comply with federal cash management requirements. Subrecipients' cash balances are not monitored as their requests for advances are processed. As a result, subrecipients may be holding cash in excess of immediate needs. Contact the SAO about this report.