State auditor flags several unimplemented high‑priority recommendations at DPA and CDLE

The Office of the State Auditor (OSA) presented its annual report on audit recommendations that remain outstanding across state agencies for fiscal years 2020–2024. Deputy State Auditor Marissa Edwards and audit manager Ms. Aber told the committee that agencies have reduced the share of outstanding items (now about 6% of recommendations), but that 69 recommendations still require action.

High‑priority findings: OSA highlighted several high‑priority (orange) recommendations in its published tables. For the Department of Labor and Employment, a high‑priority recommendation concerns contract management and vendor oversight: the agency has not required a vendor to produce a SOC 1 Type II report and revised its implementation date to December 2026, a 29‑month delay from the department’s original proposed implementation. The deficiency level for that item is a material weakness.

For the Department of Personnel and Administration (DPA), OSA identified material weaknesses and significant deficiencies related to financial reporting and the state controller’s internal controls over IT systems used to produce statewide financial statements; some implementation dates were revised multiple years out.

Why it matters: Material weaknesses in financial controls and delayed implementation of audit recommendations can affect the reliability of state financial statements and the state’s ability to manage federal funds. OSA encouraged committee members to use the report as a basis for questioning agencies and to follow up during SMART Act hearings.

What OSA recommended: The auditors urged agencies to provide clear implementation plans and updated timelines and suggested legislative staff request the OSA issue brief that explains statutory definitions and the evidence‑designation process.

Sources: Office of the State Auditor annual report and presentation to the Joint Business Committee; OSA presenters Marissa Edwards and Ms. Aber.