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MONTANA - DEPARTMENT OF JUSTICE - CRIME CONTROL DIVISION REPORT ON EXAMINATION OF FINANCIAL STATEMENTS FOR THE TWO FISCAL YEARS ENDED JUNE 30, 1978

NCJ Number
57263
Author(s)
ANON
Date Published
1978
Length
46 pages
Annotation
AN AUDIT OF FINANCIAL STATEMENTS OF MONTANA'S CRIME CONTROL DIVISION OF THE JUSTICE DEPARTMENT FOR THE PERIOD JULY 1976 TO JUNE 1978 FINDS THAT CURRENT ACCOUNTING PRACTICES DO NOT REFLECT ASSETS AND COSTS.
Abstract
THIS IS A FOLLOWUP TO A REPORT BASED ON AN AUDIT OF MONTANA'S CRIME CONTROL DIVISION FOR A PERIOD ENDING JUNE 30, 1976. AT THAT TIME NUMEROUS IMPROVED ACCOUNTING AND INVENTORY CONTROL PROCEDURES WERE RECOMMENDED. THIS REPORT FINDS THAT INVENTORY CONTROL HAS BEEN IMPROVED VASTLY AND THAT MANY OF THE OTHER RECOMMENDATIONS ARE IN THE PROCESS OF BEING IMPLEMENTED. HOWEVER, THE OFFICIAL STATE ACCOUNTING SYSTEM HAS NO PROVISION FOR HANDLING LOCAL MATCH DOLLARS AND THE DIVISION'S FINANCIAL STATEMENTS STILL DO NOT REFLECT SUBSTANTIAL GRANTS RECEIVABLE, DEFERRED REVENUE, AND LIABILITIES. THE REPORT RECOMMENDS EITHER MODIFYING THE STATE SYSTEM TO MEET THE NEEDS OF LEAA GRANT ACCOUNTING OR ESTABLISHING AN IMPROVED INHOUSE SYSTEM. THE DIVISION STILL HAS PROBLEMS WITH THE ACCOUNTING OF SUBGRANTEES. ALTHOUGH EACH SUBGRANTEE IS GIVEN FINANCIAL GUIDANCE AT THE TIME THE GRANT IS AWARDED AND TELEPHONE FOLLOWUP IS USED WHEN REPORTS ARE LATE, THIS ACTION HAS BEEN INSUFFICIENT TO ENSURE GOOD ACCOUNTING COMPLIANCE. MORE FORMAL REVIEW PROCEDURES ARE BEING ESTABLISHED. SUBGRANTEES ALSO NEED BETTER INVENTORY CONTROLS. OTHER RECOMMENDATIONS COVER TIME SHEETS, W-2 FORMS, REQUESTS FOR LEAVE TIME, TRAVEL CLAIM DOCUMENTATION, AND OTHER MANAGEMENT DETAILS. THE AGENCY RESPONSE, GENERALLY FAVORABLE, IS GIVEN FOR EACH RECOMMENDATION. (GLR)