RD119 - Agencies of the Secretary of Finance - Report on Audit for the Year Ended June 30, 2018

Executive Summary:

This report summarizes our fiscal year 2018 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;

• six prior year findings discussed in the Status of Prior Year Findings and Recommendations section, where progress has been made in correcting the findings, but there continue to be areas that require management’s attention;

• six findings involving internal control and its operation, necessary to bring to management’s attention. Of these findings, five are considered to be instances of non-compliance with applicable laws and regulations that are required to be reported. These are included in the Internal Control and Compliance Findings and Recommendations section;

• 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 a significant initiative for the Secretary and Department of Accounts, regarding the status of the Commonwealth’s Human Capital Management System development project.