FCA-2012-4800

The results of our audit disclosed deficiencies in internal control and/or instances of noncompliance or other matters that are considered reportable under Government Auditing Standards. These items included: The Department has not effectively managed and reported its capital assets. As a result, the State's financial statements may not be accurate and assets may not be properly insured. The Department has not properly maintained insurance on its assets. As a result, the State has an increased risk of financial loss. The Department did not deposit receipted funds in accordance with state requirements or the Department's cash management plan. As a result, there is an increased risk that monies could be lost or misappropriated. We identified deficiencies in the Department's monitoring procedures for the Aid to Public Libraries and North Carolina Arts Council grants. These deficiencies result in an increased risk that noncompliance at the grantee level could occur and not be detected timely. The Department's monitoring of admission fees at historic sites can be improved. Insufficient monitoring may result in fees not being charged and collected in accordance with state regulations and departmental policies. The Department did not consistently ensure that travel reimbursements were valid, properly recorded, and in compliance with state travel rules. As a result, there was an increased risk of improper payments and erroneous accounting entries. Details about each item are provided in the Audit Findings and Responses section of the report.