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range of the State’s fiscal activities subjected to review by the General Assembly during
this period.
Whenever the State implements the recommendations of compliance examinations and
other types of audits, budget savings can occur, accountability will increase, and the
authority of the appropriations process is returned to the Legislature.
• The Department of Revenue paid almost $1.6 million out of FY06 appropriations
towards FY07 CMS Internal Service Fund billings, and $2.8 million out of FY07
appropriations towards FY08 Internal Service Fund billings. In FY07 DOR created
or falsified six invoices with CMS headings as supporting documentation in order to
make the prepayments.
The Commission continues to be concerned with the timely review of compliance, financial
and performance audits. As a post-facto examination, there is, of necessity, a certain
delay in the completion and review of audits. However, it is important that the process be
concluded in a timely fashion to maximize the benefits of the audit program.
The Commission attempts to reach a satisfactory agreement regarding each of audit
recommendations. In some instances, the agency reports acceptance of the
recommendation, but subsequent audits reveal the recommendation was not implemented
or corrective procedures have fallen into disuse. The Commission places special
importance upon the continuing obligation of State agencies to implement and maintain
corrective procedures recommended by the Auditor General.
The use of computer technology is widespread in State government and much of the
responsibility for all aspects of information technology within most departments lies with
the Department of Central Management Services. With improved technology, however,
comes the need for comprehensive planning in the design and development of computer
systems and subsequent changes, adequate training and documentation, system-wide
security, and a tested plan for continued record keeping and service if the system should
fail.
• In FY07, CMS did not maintain, complete, accurate, or detailed records to
substantiate its current midrange computer systems and equipment for the eleven
agencies whose IT functions were consolidated into CMS. CMS did not develop or
test a disaster contingency plan for the agencies, or have an effective mechanism to
track, control, and monitor end-user software use.
The Commission has observed a trend in State government toward more outsourcing of
State services. The Commission has an elevated concern over how those contracts are
bid and procured. Additionally, State agencies should better plan and monitor contracts to
ensure that all State funds are used to properly offer and provide services to all eligible
individuals. Finally State agencies must follow the rules and the law when awarding
contracts.
• Billings, payments or purchases were not always made or reported in compliance
with the Procurement Code, SAMS procedures, or other approved procurement
