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Internal audits find generally effective controls; PFIA report flags reporting discrepancies
Summary
Two required audits presented to the board found generally effective controls for procurement and public-funds investment reporting but identified opportunities to improve digital tracking and QA/QC of investment statements.
Staff presented two required audits at the Feb. 21 meeting: a fiscal-year 2025 internal procurement competitive solicitation audit and a Public Funds Investment Act (PFIA) audit.
Auditor Miss Williams reported that the procurement audit (report 25-0001; scope Sept. 1, 2022'May 31, 2024) found the agency generally effective in solicitation, evaluation and compliance with state procurement rules. The auditors recommended two opportunities for improvement: use of a reporting dashboard to track procurement metrics and enhancement of the procurement contract and compliance checklist for better digital workflow tracking. Staff said both items had already been implemented in SharePoint.
The PFIA audit (report 25-0002; scope Sept. 1, 2022'Aug. 31, 2024) likewise rated internal controls "generally effective" but identified one finding and two opportunities for improvement. The primary finding concerned a repeated discrepancy in the investment holdings report for "Treck Fund 3058," where an incorrect purchase price carried forward for 12 months; another discrepancy arose because a standard purchase memo used the 15th of a month as a purchase date even when the actual purchase occurred on the 16th because the 15th fell on a Sunday. Auditors recommended improved QA/QC procedures and clearer reporting of the sources that make up the beginning cash balance on investment reports.
Board members discussed transparency and historic reports. Staff said older financial statements affected by the audit were no longer posted on the public website and that, when corrections are made, the agency will indicate revisions rather than silently replace older reports. Members requested a workshop in the future to review how investment reports are prepared and what the figures mean.
Why it matters: The audits affirm generally effective controls while identifying procedural gaps in investment reporting and procurement documentation that the board's staff is addressing to improve accuracy and transparency.
On the record: The audit firm provided follow-up materials to the audit committee; staff will continue corrective steps and report progress to the board.
