HD48 - Interim Report on the Review of the Financial Accounting and Control Operations of the State Comptroller by the Auditor of Public Accounts

Executive Summary:
We have completed our interim review of the operations of the State Comptroller as they relate to the Commonwealth's financial accounting and control operations practices as required by Section 1-2.2.B. of Chapter 4 of the 2004 Virginia Acts of Assembly, Special Session I. For this interim report, we are not making final recommendations for changes in the operations of the Comptroller's Office; those will be included in our final report, which we will issue in November 2005. However, we have several proposals based on our interim review, which we have summarized below and have detailed further in Chapter 4.

New Systems and Information Planning:

The Comptroller and the Chief Information Officer should develop a working group to begin a strategic planning effort to support the information system needs of the Commonwealth. They should pursue a strategy towards a statewide financial management information systems solution that addresses agency needs and results in operational efficiencies and effectiveness for the Commonwealth. They need to go beyond addressing current needs or new systems and address how the Commonwealth can take advantage of new technologies, meet its on-going financial management and information needs and maintain accountability.

Training and Communication:

The Comptroller should look for ways to ensure agency heads and managers understand their responsibility for establishing and maintaining accountability. This may include training, increased use of technology to provide more on-line guidance and tutorials, and better use of the CAPP Manual to prescribe and communicate minimum internal control practices for state agencies.

Potential Legislative Changes:

The General Assembly should consider legislative changes in the following areas:

• Line of Duty health benefits;

• Requirements for Comptroller's August 15th report;

• Comptroller's duties related to unclaimed property; and

• Comptroller's operation of a fiscal service center.

[Final Report -- see House Document No. 94, 2005 (HD94)]