Staff at the various colleges and universities have had to deal with organizational and structural changes, new policies and procedures, as well as several new computerized business systems. These changes have contributed to the difficulty in establishing an appropriate and stable internal control structure. Another large agency, the Department of Human Services, also developed a new computerized business system when it began collecting child support enforcement payments on a statewide basis in 1997. Our audit of the Child Support Enforcement Program found that for most routine collections, the department properly distributed and disbursed child support payments. However, we found that for a smaller number of the more complicated child support cases, payments were improperly allocated.
Smaller agencies face other problems in administering their financial activities.
Often the agencies have a limited number of administrative personnel. Staff turnover and unfamiliarity with established policies and procedures can lead to problems. For example, our report on the Chicano-Latino Affairs Council identified numerous violations of state laws and financial policies. Significant turnover in management and administrative staffing contributed to the council's problems. Our audit report helped the council identify appropriate financial management practices.