RD104 - Agencies of the Secretary of Finance Report on Audit for the Year Ended June 30, 2019

Executive Summary:

This report summarizes our fiscal year 2019 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;

• four prior year findings discussed in the Status of Prior Year Recommendations and Internal Control and Compliance Risk Alert sections, where corrective action is ongoing;

• nine findings involving internal control and its operation, necessary to bring to management’s attention. Of these findings, six are considered to be instances of noncompliance with applicable laws and regulations that are required to be reported.

These are included in the Internal Control and Compliance Recommendations section;

• 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 significant initiatives for the Secretary and Department of Accounts, including the status of the Commonwealth’s Human Capital Management System development project and upcoming reporting changes for leases.