Report 2013-107 Recommendations

When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below, is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor's assessment of auditee's response based on our review of the supporting documentation.

Recommendations in Report 2013-107: Accounts Outside the State's Centralized Treasury System: Processes Exist to Safeguard Money, but Controls for These Accounts Need Strengthening (Release Date: October 2013)

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Recommendations to Controller's Office, State
Number Recommendation Status
1

Within the next 60 days, the state controller should implement the policies and procedures it developed to ensure the receipt of outside account reports in each reporting period and to enhance monitoring efforts.

Fully Implemented
2

Within the next six months, the state controller should develop policies and procedures to maintain a list of all outside accounts and reconcile its list annually with the state treasurer's list.

Fully Implemented
Recommendations to Finance, Department of
Number Recommendation Status
5

Within the next 60 days, the Department of Finance should implement the policies and procedures it developed to ensure the receipt of outside account reports in each reporting period and to enhance monitoring efforts.

Fully Implemented
6

To ensure that all outside accounts have proper authority, over the next six months, Finance should continue to pursue and resolve the 35 identified unresolved cases in which adequate authority could not be confirmed.

Fully Implemented
Recommendations to Forestry and Fire Protection, Department of
Number Recommendation Status
8

To safeguard cost recovery program revenue, Cal Fire should, within the next six months, implement adequate segregation of duties for its cost recovery program revenues. For example, it should require that cost recovery payments be mailed to its accounting office, as are other payments.

Fully Implemented
9

To safeguard cost recovery program revenue, Cal Fire should, within the next six months, develop policies and procedures requiring personnel not affiliated with the cost recovery program to reconcile expected cost recovery payments to deposits.

Fully Implemented
10

To safeguard cost recovery program revenue, Cal Fire should, within the next six months, develop a process to track civil cost recovery cases statewide to monitor compliance with policies as well as monitor collection status.

Fully Implemented
11

Cal Fire should continue its efforts to determine what happened to the $13,470 check that was not deposited in the Wildland Fire Fund.

Resolved
12

To ensure that it possesses all equipment purchased with Wildland Fire Fund money, Cal Fire should compile a complete list of equipment purchased with these funds and reconcile it to the attorneys association's accounting records.

Fully Implemented
13

To ensure that it possesses all equipment purchased with Wildland Fire Fund money, Cal Fire should tag all equipment purchased through the Wildland Fire Fund.

Fully Implemented
14

To ensure that it possesses all equipment purchased with Wildland Fire Fund money, Cal Fire should perform a periodic inventory of equipment.

Fully Implemented
Recommendations to Legislature
Number Recommendation Status
15

For the State to better monitor outside accounts, the Legislature should consider requiring the state controller to expand its reporting on outside accounts to include information on accounts opened during the last fiscal year. Reported details should include the authority, name, and balance of the new outside accounts.

Legislation Enacted
16

To ensure that state agencies do not misdirect cost recovery revenues in the future, the Legislature should specify that these revenues include any money received as a result of cost recovery efforts, and should require that these revenues be deposited in the state treasury.

Partially Implemented
Recommendations to Treasurer, State
Number Recommendation Status
3

Within the next 60 days, the state treasurer should implement the policies and procedures it developed to ensure the receipt of outside account reports in each reporting period and to enhance monitoring efforts.

Fully Implemented
4

Within the next six months, the state treasurer should develop policies and procedures to maintain a list of all outside accounts and reconcile its list annually with the state controller's list.

Fully Implemented
Recommendations to University, California State
Number Recommendation Status
7

To ensure accurate reporting on its outside accounts in the future, within the next six months, CSU should develop procedures for excluding investments held by the treasury system from reported outside account balances.

Fully Implemented


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