Here is the auditors’ finding and the agency response. The audit released this morning also found that employees used the state mailing system to send out personal items.
Improper Accounting of Expenditures:
Criteria:
Section 3-117 of the General Statutes provides that each claim against the state shall be supported by vouchers or receipts for the payment of any money exceeding twenty-five dollars at any one time.
Section 4-98 of the General Statutes provides that no budgeted agency shall incur any obligation without the issuance of a purchase order or any other necessary documentation approved by the Comptroller to process the transaction. Upon the receipt of a purchase order or any other documentation, the Comptroller shall immediately charge the same to the specific appropriation of the budgeted agency. Condition:
The Commission received a 1981 fire truck from a local fire company as payment for course fees totaling $9,927 charged for training services. The purchase of the truck was never charged against the Commission’s appropriations and the revenue for the training services was never recorded in the state’s accounting records. In addition, there was no voucher or receipt on hand to support the purchase. Further, sufficient documentation was not available to substantiate the actual value of the truck. Effect:
Exchanging goods for services bypasses the state’s accounting process for recording expenditures. In addition, revenue and expenditure amounts reported on the state’s fiscal records were understated. Further, without properly assessing the value of the truck, the Commission does not know Auditors of Public Accounts 11 whether the local fire company paid all the course fees that were charged for the training services provided.
Cause:
The Commission did not consider the need to properly record the purchase of the truck and the revenue earned in the state’s accounting records or to sufficiently document the actual value of the truck. Recommendation:
The Commission on Fire Prevention and Control should ensure that it complies with state regulations concerning the accounting for the procurement of goods. Agency Response:
“Improper accounting of expenditures is acknowledged. While the unique barter arrangement was evaluated internally and deemed to mutually benefit both the state and municipality, documentation and record keeping was inadequate. We will ensure compliance with state regulations concerning the accounting for the procurement of goods in the future. In addition, we will evaluate our current policy of providing tuition-free seats to fire departments that host classes and provide facilities.”