A material weakness exists in the control environment over the Department's accounting function. Both the type and number of problems identified emphasize the lack of adequate controls. Supervision of the federal and related internal reporting processes is inadequate.
Reconciliations related to federal reports include unsupported adjusting entries.
Payments to subrecipients are maintained on a subsidiary ledger which cannot be reconciled to the Department's internal accounting system. 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.