This report summarizes our fiscal year 2017 audit results for the following four agencies under the Secretary of Finance (Secretary):

• Department of Accounts

• Department of Planning and Budget

• Department of Taxation

• Department of the Treasury and the Treasury Board

Our audits of these agencies arise from our work on the Commonwealth’s Comprehensive Annual Financial Report (CAFR). Overall, we found the following:

• proper recording and reporting of transactions, in all material respects, in the Commonwealth’s accounting and financial reporting system, each agency’s accounting records, and other financial information reported to the Department of Accounts;

• twelve internal control or compliance findings that require management’s attention. Of these, one is considered to be a material weakness at the Department of the Treasury;

• one risk alert, which represents an issue that is beyond the corrective action of the affected agency and requires the cooperation of other involved agencies 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.

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