The financial condition of the Department of Rehabilitation's Business Enterprise Program for the Blind (program) is sound. Specifically, during fiscal year 1993-94, the program's revenues exceeded its expenses by approximately $1 million. In addition, at June 30, 1994, the program had approximately $4 million in cash and pooled investments, and its total assets exceeded its total liabilities by approximately $14 million. The principal source of funding for the program is state and federal grants, which accounted for approximately 58 percent of revenues during fiscal year 1993-94. The remaining revenue came principally from vending stand fees, vendor contributions, and vending machine commissions.
Although the financial condition of the program is sound, we noted certain weaknesses in its internal control structure. Specifically, we noted the following:
These issues are described further in the Appendix. We will follow up on these issues during fiscal year 1995-96 when we conduct a programmatic review of the program in accordance with the California Welfare and Institutions Code, Section 19640.5.
In its response, the department generally agrees with the findings and recommendations and discusses the actions it has taken or plans to take to address the deficiencies.