RD78 - Secretary of Finance Report on Audit for the Year Ended June 30, 2016

Executive Summary:
This report summarizes our fiscal year 2016 audit results for the five agencies under the Secretary of Finance and arises from our work on the Comprehensive Annual Financial Report (CAFR). Overall, our audit for the year ended June 30, 2016, found the following:

• proper recording and reporting of transactions, in all material respects, in the Commonwealth Accounting and Reporting System, Cardinal, and in the agencies’ accounting systems;

• five internal control and compliance findings requiring management’s attention;

• one risk alert, which represents an issue that is beyond the corrective action of one individual agency and requires the cooperation of others to address the risk; and

• adequate corrective action with respect to audit findings reported in the prior year that are not referenced in this report as “REPEAT.”

This report also includes information on several significant initiatives for agencies under the Secretary of Finance, including the status of system development projects, modernization of the financial reporting processes, and reporting changes of other postemployment benefits.