RD132 - Agencies of the Secretary of Finance Report on Audit for the Year Ended June 30, 2021

Executive Summary:

This report summarizes our fiscal year 2021 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 for the year ended June 30, 2021, found:

• proper recording and reporting of transactions, in all material respects, in the Commonwealth’s accounting and financial reporting system, each agency’s financial systems, and in supplemental information and attachments submitted to the Department of Accounts;

• four prior year findings involving internal control and its operations discussed in the Status of Prior Year Findings and Recommendations section, where corrective action is ongoing;

• three new findings involving internal control and its operations discussed in the Internal Control and Compliance Findings and Recommendations section, necessary to bring to management’s attention;

• four of the seven findings are considered to be instances of non-compliance with applicable laws and regulations that are required to be reported; and

• adequate corrective action with respect to prior audit findings identified as resolved in the Findings Summary included in the Appendix.

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 financial reporting changes for leases. In addition, it includes Risk Alerts, which are applicable to the Department of Accounts and Department of Taxation.