Ongoing errors in generally accepted accounting practices (GAAP) reporting are prompting the state auditors to call for better financial training for state agencies. Liabilities and revenues were being inaccurately reported by millions of dollars, a recent audit found.
In its recommendations, the auditors said, its review of statewide financial reporting identified internal control weaknesses as defined by auditing standards generally accepted in the United States. The comptroller’s office did not contest the findings of the report.
Some of the more significant errors found and corrected by the auditors:
- The Department of Correction understated contractual obligations by $84.2 million.
- The Teachers’ Retirement Board included health care fund revenues in its report for the retirement fund, overstating the retirement fund contributions by $50.2 million. It also reported year to date unrealized investment gains overstating investment income by $83.9 million. In its report for the health care fund it overstated revenues by $1.7 million and understated benefit payments by $2.9 million.
- The Department of Administrative Services failed to report $30.4 million in contractual obligations for one entity and made other errors that overstated contractual obligations by $12.1 million.
- The Office of State Comptroller understated the liability of the SEBAC vs. Rowland settlement by $13.2 million.
- The Department of Energy and Environmental Protection understated contractual obligations by $7.4 million. It also overstated pollution remediation obligations and liabilities for landfill post closures by $12.5 million.
- The Department of Revenue Services erroneously included $7.9 million in tax refunds for the research and development credit exchange in its report of tax refunds paid. It also overstated tax refunds by $2.7 million due to a separate error.
- The Department of Developmental Services failed to report a total of $8.1 million in bank balances associated with fiscal intermediaries.
- The Department of Administrative Services – Bureau of Construction Services overstated its contractual retainages by $1.9 million and its ending balance of construction in progress by $36.1 million.
- The Department of Transportation understated infrastructure assets by $49.8 million, and overstated construction in progress by $26.2 million.
