Legislative auditors outline backlog of uncorrected findings, cite IT and documentation gaps

April Renfro, legislative auditor with the Legislative Services Office, told the Joint Finance and Appropriation Committee on Jan. 7 that her team is tracking a mix of recent and longstanding uncorrected audit findings and that most outstanding items come from the current reporting period.

"We currently have 30 financial and IT auditor positions," Renfro said, adding that the office also has "one administrative assistant" and several openings. She told members the division performs the annual audit of the state's Annual Comprehensive Financial Report (ACFR) and the state's single-audit work that covers federal awards reporting.

The auditors are required to issue an annual report of uncorrected findings. Renfro said 70% of the uncorrected findings are from the current reporting period — meaning the agency has not yet had the committee's standard follow-up testing — and roughly 30% reflect items agencies have been unable to correct within a reasonable time.

Renfro described three recurring categories of findings: internal-control weaknesses, noncompliance with statutes or policies, and substantive errors in financial or federal reporting. She said pandemic-era federal funding increased single-audit findings in 2023 because agencies that do not normally receive federal awards lacked familiarity with federal compliance requirements.

The audit team flagged…