State Auditor Nicole Galloway released her office’s annual report on the state’s financial reporting processes. The report examines Missouri’s annual statewide financial statements and makes recommendations to ensure accurate financial reporting, which better protects and accounts for taxpayer resources.
Auditors found that the Department of Labor and Industrial Relations needs to improve controls in the system it uses for determining eligibility and making payments for the Unemployment Insurance program. Those controls were not sufficient to prevent or detect improper payments totaling approximately $123,000 in fiscal years 2020 and 2021. The report provided recommendations for improving those system controls.
The audit also identified errors by the Department of Revenue – Administration Division in calculations used to estimate the percentage of accounts receivable considered uncollectible. After auditors brought the errors to the attention of DOR staff, the Administration Division recalculated the uncollectible percentage and submitted revised reports to the Office of Administration.
The report issued also found errors by the Department of Natural Resources in reporting several state park assets. Those errors led to the assets being fully depreciated by the statewide accounting system during the year each asset was acquired instead of over the longer periods recommended. Those errors were corrected after an inquiry by auditors.
Additionally, auditors found that some reports from the Department of Social Services – Division of Finance and Administrative Services to the Office of Administration did not include certain federal grant financial information. The reports were revised after auditors discussed them with department officials.
In January, the State Auditor’s Office issued an audit of the state’s Annual Comprehensive Financial Report (ACFR) for the fiscal year 2021. The state’s financial statements in the ACFR covered approximately $50 billion in assets and $35 billion in expenses. In connection with that audit, auditors tested internal controls, as well as compliance with laws and regulations; those results are included in the report.
Additional annual audit work related to the state’s management and spending of federal dollars administered by state agencies (Statewide Single Audit) is ongoing and will be released later this year.
The complete report detailing the findings in the Annual Comprehensive Financial Report is available online here.