LEGISLATIVE A UDITOR LO UISIA NA SYSTEM IC INITIATIVES PRO G RA M C O U NC IL STATE O F LO UISIA NA M anagem entletter,dated February 19,1997 Page 2 M anagem entattributes the noncom pliance to insta lation delays w ith the equipm entand staf shortages. Failure to update the m ovable property records and tag the item s on a timely basis increases the risk ofloss arising from unauthorized use and subjects the councilto noncom pliance w ith state law s and regulations. The Leuisiana System ic Initiatives Program Councilshould ensure that a lproperty is tagged and thatthe required inform ation is transm itted to LPAA tim ely. In a letterdated February 3,1997,Dr.Kerry Davidson,ProjectDirector,concurred with the finding and recom m endation and outlined steps forcorrective action. The,recommendation in this report represents,in ourjudgment,thatmostlikely to bring about beneficialim provem entto the operations ofthe program. The nature ofthe recom m endation, its im plem entation costs, and its potentialim pact on operations of the program should be considered in reaching decisions on courses of action. The finding relating to the council's com 1~ia~ e w ~th applicable ~aw s arid regulations sho~ d be addressed im m ediately by m anagem ent. By provisions of state law,this report is a public docum ent, and it has been distributed to appropriate public officials. ly subm itted TSS:BJJ:d DanielG.Kyle,CPA,CFE Legislative A uditor
Finan cialan d C om p fian ce A udit D ivision D anielg.k yle,p h.d., C PA,C FE L egislative A uditor
LEG ISLATIVE A UDIT A DVISO RY CO UNCIL M EM B ERS Representative Francis C.Thom pson,c hairm an SenatorR onald C.Bean,V ice C hairm an SenatorR obert J.Barham SenatorW ilson E.Fields SenatorThom as A.G reene Senator C raig F.Rom ero Representative F.C harles M cm ains,jr Representative Edw in R.M urray Representative W arren J.Triche,Jr. Representative David V itter DanielG.Kyle,Ph.D.,CPA,C FE A lbert J.Robinson,Jr.,C PA
I)AN II'L G.KY LE,PH I),CPA,CFE I,EG ISI,ATIVE AUI)I'I~)t( OFFICE OF LEG ISLA TIV E A U D ITO R STA TE O F LO U ISIAN A BA TON RO U G E,LO U ISIAN A 70804-9397 February 19,1997 1600 NO RTI[TIIIRI)S'IRill PO S 10I:FICI~HOX 94397 TEI,EPIIONE:(504)339-3800 FACSIM ILE: (504)339-3870 LO UISIA NA SYSTEM IC INITIATIVES PRO G RA M C O U NC IL STA TE O F LO UISIA NA Baton Rouge,Louisiana As partofouraudilofthe State oflouisiana's financialstatem ents forthe yearending June 30, 1997,w e conducted certain procedures atthe Louisiana System ic Initiatives Program C ouncil. Ourprocedures included (1)a review ofthe council's internalcontrolstructure;(2)tests of financialtransactions forthe years ending June 30,1997,and June 30,1996;and (3)tests of adherence to applicable law s, regulations, policies, and procedures governing financial activities forthe years ending June 30,1997,and June 30,1996. The AnnualFiscalReports ofthe Louisiana System ic Initiatives Program Councilare notw ithin the scope ofourw ork,and,accordingly,w e oferno form ofassurance en those reports. The council's accounts are an integralpart ofthe State of Louisiana's financialstatem ents,upon w hil;h the Louisiana Legislative A uditorexpresses an opinion. O ur procedures included interview s w ith m anagem ent personnel and selected council personnel. W e also evaluated selected docum ents,files,reports,system s,procedures,and policies as w e considered necessary. After analyzing the data,w e developed a recom m endation forim provem ent. W e then discussed ourfinding and recom m endation w ith appropriate m anagem entpersonnelbefore subm itting this w ritten report. Based upon the application ofthe procedures referred to previously,atlsignificantfindings are included in this report form anagem ent's consideration. M ovable Property N oncom pliance The Louisiana System ic Initiatives Program Councildid notcom ply w ith state m ovable property regulations. Louisiana Adm inistrative C ode 34:V 11.307 requires that a l acquisitions ofqualified m ovable properly item s be tagged and a lpertinent inventory information be sentto the Louisiana Property Assistance Agency (LPAA)within 45 days afterreceiptofthe property. In ourtestof28 acquisitions, we found that21 items (75 percent)totaling $19,467 were tagged and reported to LPAA anywhere from 49 to 98 days afterreceiptofthe property. In addition,w e found thattw o item s acquired in fiscal years 1993 and 1995 w ere notreported to LPAA untila pril1996. The 1993 item did not have a tag affixed to the property.
LO U ISIA NA SY STEM IC IN ITIA TIV ES PRO G RA M STA TE O F /.O U ISIA NA Baton Rouge,Louisiana M anagem entletter Dated February 19,1997 Underthe provisions ofstate law,this reportis a public docum ent. A copy ofthis report has been subm itted to the Governor,to the Attorney G eneral,and to other public officials as required by state law. A copy ofthis report has been m ade available forpublic inspection atthe Baton Rouge ofi ce ofthe Legislative Auditor. A pril30,1997