Recommended
Recommended
More Related Content
Similar to FY2021 GAO Findings Report Highlights
Similar to FY2021 GAO Findings Report Highlights (20)
More from John Donahue
More from John Donahue (20)
Recently uploaded
Recently uploaded (20)
FY2021 GAO Findings Report Highlights
- 1. FY2021 FINDINGS REPORT OVERVIEW* ACCOUNTABILITY, TRANSPARENCY, AND EXCELLENCE Elena Tercero, CPA, CGFM, CGMA Audit Manager Laura Wade, CPA, CFE Audit Manager Monique Hurtado, MBA Staff Auditor *FY2021 Report Not Final. The information presented is subject to change
- 2. FY2021 GAO Findings Report Highlights The objective of the report is to serve as a source of information and instrument of transparency concerning the audit findings of statewide agencies, subject to the audit act, for FY2021. *Data presented is subject to change upon release of the final FY2021 Findings Report
- 3. 3 *As April 12, 2022: 500 agencies received full financial audits for FY2021; substantially all of which were conducted by IPAs FY2021 Governmental Agency Audit Snapshot 11 11 17 29 30 44 79 84 95 100 0 20 40 60 80 100 120 REGIONAL EDUCATIONAL COOPERATIVES HOSPITALS AND SPECIAL DISTRICTS INDEPENDENT HOUSING AUTHORITIES COURTS AND DISTRICT ATTORNEYS COUNTIES HIGHER EDUCATION INSTITUTIONS MUNICIPALITIES OTHER STATE AGENCIES SCHOOLS FY2021 Audited Agencies by Agency Type*
- 4. 4 Statistically, New Mexico audited agencies’ financial reporting health is strong. 96 percent of agencies in scope of the report received unmodified opinions, suggestive of conformity in maintaining financial statements free from material error and may be relied upon. Strong Financial Health
- 5. 5 Findings help organizations identify what changes are needed to make the operation of an agency more effective, efficient, equitable, transparent, and as accountable. Fy2021TopTen Findings 19 20 32 36 39 46 59 67 75 81 0 10 20 30 40 50 60 70 80 90 PROCUREMENT REVENUES AND RECEIVABLES FINANCIAL REPORTING CAPITAL ASSETS CASH AND INVESTMENTS BUDGETARY COMPLIANCE PAYROLL AND RELATED LIABILITIES GRANT COMPLIANCE STATE LAW COMPLIANCE - OTHER LACK OF POLICIES, PROCEDURES OR INTERNAL CONTROLS FY2021 Top Ten Findings*
- 6. 6 Fy2021TopTen Findings - Lack of Policies, procedures or internal controls Agency Finding Count Counties 4 Higher Education Institutions 5 Municipalities 15 Other 4 Schools 25 State Agencies 28 Grand Total 81
- 7. 7 Fy2021TopTen Findings State Law Compliance - Other Agency Finding Count Counties 3 Courts 6 Higher Education Institutions 2 Municipalities 15 Regional Educational Cooperatives 1 Schools 33 Special Districts 2 State Agencies 13 Grand Total 75
- 8. 8 Fy2021TopTen Findings Grant Compliance Agency Finding Type Counties 2 Higher Education Institutions 13 Hospitals or Special Hospital Districts 1 Independent Housing Authorities 1 Municipalities 15 Other 2 Regional Educational Cooperatives 1 Schools 11 State Agencies 21 Grand Total 67
- 9. 9 Three –Year Comparative Special Investigations Division (SID) reviews hundreds of complaints annually. In some instances, a single examination may incorporate numerous complaints/reports of waste, fraud, and abuse. FY2020 Special Investigations Referral Snapshot
- 10. 10 SID Cases Referred and Resulting Findings In 2020, 44% of SID cases were referred to IPAs. As a result of the SID referrals to the IPA 50 findings were identified. FY2020 Special Investigations Referral Snapshot
- 11. Reports may be made anonymously by submitting a compliant through our online portal at www.osafraud.org or by calling 1-866-OSA-FRAUD (1-866-672-3728). You may also speak to an investigator by calling 505-476-3800. You may write to the office at: New Mexico Office of the State Auditor 2540 Camino Edward Ortiz, Suite A Santa Fe, NM 87505 Submitting A Report Or Complaint Allegations Of GovernmentalWaste, Fraud, And Abuse
- 12. THANKYOU! BRIAN.COLON@OSA.STATE.NM.US WWW.SAONM.ORG BRIAN S. COLÓN, ESQ. CFE NEW MEXICO STATE AUDITOR 505-476-3800 2540 CAMINO EDWARD ORTIZ, SUITE A SANTA FE, NM 87507
Editor's Notes
- Disclaimer: *Data presented may be subject to change upon release of the final FY2021 Findings Report later this year. The intent of this report is to provide high-level data and statistical evidence on the outcomes of the audits performed for FY2021 in accordance with the vision and purpose of the OSA and the Government Accountability Office (GAO) to bring accountability, transparency, and excellence to state government. The material used to compile this report was primarily derived from the outcomes of the most current audit reports of New Mexico state agencies and local public bodies available as of April 2022 for Fiscal Year 2021. In total, for FY2021, this report evaluated 500 complete and released audit reports. The scope of this report is focused on the state and local agencies that received full financial audits and is not inclusive of reports from special audits, or other engagements contemplated by the Audit Rule, AUPs or financial certifications from local public bodies under the tiered-system of reporting, or the New Mexico ACFR.
- Information compiled within this report is based exclusively on the 500 agencies that received full financial audits for FY2021; substantially all of which were conducted by Independent Public Accountants (IPAs) under the direct oversight authority of the OSA. The chart in Figure 1 details the count of agencies who received a full financial audit for FY2021 categorized by agency type. IPAs conduct substantially all of audits under the oversight of the OSA due to finite resources. The OSA maintains its regulatory role to ensure the work performed by the IPA is done according to professional standards. The OSA reviews reports issued by IPAs for quality prior to release. Opinions and findings expressed by the IPA are based on their professional judgement and are not deemed correct or incorrect by the OSA. Agency reference of Other represent: Councils of Government, Mutual Domestic Water Associations, Special Districts, Workforce Boards, Water and Natural Gas Associations, Soil and Water Conservation Districts, Public Improvement Districts, Irrigation Districts and Tax Increment Development Districts.
- The concluding opinion issued by an auditor is determined following test work of an agency’s financial statements. The issuance of an unmodified opinion suggests the financial statements materially represent the financial condition of the agency in accordance with applicable financial reporting framework whereas the issuance of a modified opinion suggests the financial statements were not prepared or presented fairly in all material aspects and typically reflected as a qualified opinion, an adverse opinion, and/or a disclaimer of opinion. Auditors may also express multiple opinions, meaning different opinions on varied aspects of the financial statements exist. Modified opinions as described may suggest misstatements are material, but not pervasive; are both material and pervasive; or financial information provided is insufficient and therefore an opinion cannot be appropriately rendered, respectively.
- While we all strive for an audit with zero findings, it’s important to remember that they are not meant to serve as a means for ridicule or to discredit an agency. Rather, their purpose is to review past events with a vision toward improvement. Findings are often the most accessible tool an organization has they can use to highlight and advocate for changes to policies, procedures, internal controls, or organizational structures. Important to note: Top ten findings are listed in categories developed by the OSA for this report and account solely for findings originating in FY2021 and do not include repeat findings from prior years. In some instances, an agency receiving an unmodified opinion may also receive an evaluation that delivers no findings. This is the best-case scenario for an agency signifying a clean bill of health. A clean bill of health is what agencies should strive toward. It suggests the agency presented its financial statements fairly and it accurately characterizes the financial condition of the agency while contemporaneously indicating no identifiable deficiencies or issues were noted.
- For State agencies a common theme is related to small equipment under $5,000. These items aren’t tracked as assets from an Audit Rule perspective, however State issued laptops, cell phones, iPads, etc still need to have a tracking mechanism in place for the agency to account for the small equipment, especially in times of telework. In order to properly track and account for these items, a policy should be put in place so that the item is checked out to the employee and periodic confirmation is done to ensure that the employee maintains control of the small equipment. Employee turnover can be one of the most missed opportunities to update the master tracking sheet. For School’s a common theme was not conducting an inventory count of assets with a cost greater than $5,000.
- This SID Data is from the FY2020 Findings Report which is Final and publicly available on the OSA Website. A new addition to the findings report is data collected from the Special Investigations Division. The SID handles hundreds of complaints each year related to allegations of governmental fraud, waste and abuse. The complaints received are instrumental the OSA’s overall impact. Fact-finding procedures are often broad, complaints received resulting in open examinations allow us to narrow our focus to specifics for more in-depth test work as part of the annual audit. An example of the benefit is: if the OSA receives two complaints on internal control concerns and upon the IPA’s additional test work a larger issue is confirmed the IPA can note the issue as pervasive. This provides management more information on gaps that must be filled within the organization, allowing for implementation of greater risk mitigation practices.
- This data is really neat, and in 2020 it was the first time the OSA collected this data. In 2020, 44% of SID cases were referred to IPAs. An example of the benefit is as follows: an IPA can perform additional test work as part of the annual audit, or a separately designated engagement related to a complaint or transaction to determine if there is a more pervasive underlying issue. This provides management more information on gaps that must be filled within the organization, allowing for implementation of greater risk mitigation practices. As a result of the SID referrals to the IPA 50 findings were identified.
- One of the most tried and true methods of combating waste, fraud, and abuse is by taking a more proactive approach to accountability and shift away from a reactive approach as much as possible. You can help the OSA by submitting complaints of governmental waste, fraud, and abuse to our office. You can submit a complaint by calling, writing, or visiting us online.