Audit Division

Audit Summary

 

Office of Governor

Report LA00-17

 

Results in Brief

††††††††††† Although the Office of Governor generally complied with applicable laws, regulations, and policies and procedures, we found a few instances of noncompliance.† Two bank accounts did not have proper approval and controls, Governor-elect costs were not accounted for properly, and procedures had not been established to effectively control certain purchases for the Mansion.† Additional controls are needed to ensure assets are properly safeguarded and goods are purchased at the most economical cost and in compliance with applicable laws and regulations.

 


Principal Finding

                    Since the 1980ís, the Office has maintained a bank account for furnishings and improvements to the Mansion.† In addition, the Office established an account in 1996 to fund an event for the stateís firefighters.† However, these accounts were not approved by the State Board of Finance or reported to the Office of State Controller as required by NRS 356.011.† ( page 6)

 


                    Controls have not been established to safeguard the Officeís bank accounts.† The elements of an effective control system to safeguard assets include procedures for segregating duties, limiting access to assets, and authorizing and recording transactions.† The lack of controls increases the risk of theft, loss, or misuse of this money.† (page 7)

 

                    NRS 223.025 requires the Department of Administration include $5,000 in its budget in each fiscal year in which a new Governor is to be elected.† These funds are authorized to pay transitional expenditures for the Governor-elect.† In addition to charging about $4,800 to the Department of Administration, Governor-elect expenditures totaling approximately $10,000 were charged to the Office of Governorís budget account.† (page 8)

 

                    The State Administrative Manual requires agencies to obtain the Budget and Purchasing Divisionsí approval before buying furniture and equipment valued at $500 or more.† Although the Office usually complied with this requirement, we noted a few purchases did not have approval since the Office used a reimbursable procurement process.† The lack of proper approval could result in expenditures that have not been authorized in the budget.† In addition, goods might not be purchased at the lowest possible cost.† (page 9)


Office of Governor


Agency Response

to Audit Recommendations

 

Recommendation

Number

 

 

Accepted

 

Rejected

1

Obtain State Board of Finance approval for the Mansion bank account and submit fiscal year-end account information to the Office of State Controller as required by NRS 356.011

 

 

 

X

 

2

Develop procedures to ensure the Mansion bank account is properly safeguarded

 

X

 

3

Record Governor-elect expenditures in the Department of Administrationís budget as required by NRS 223.025

 

X

 

4

Develop procedures to ensure Mansion expenditures are in compliance with applicable laws and regulations and at the most economical cost

 

 

X

 

TOTALS

 

4

0