Audit and Assurance Services
Statewide Financial/Compliance Auditing
The State Government Division (SGD), in conjunction with the Education Audit Division, serves as the principal auditor of the CAFR and the Single Audit Report. Division personnel perform a combination of financial statement audits, agreed-upon procedures engagements, and financial and compliance management reviews for statewide budgetary compliance [i.e. Budgetary Compliance Report (BCR)] at state agencies, pension funds, and other organizational units. Division personnel also conduct special financial audits and reviews as requested by the Governor, the House of Representatives, or the Senate.
The Education Audit Division (EAD) conducts audit work at the state’s colleges and universities sufficient to render an opinion on the higher education component of the CAFR and the Single Audit Report. The Division performs a combination of financial statement audits, agreed-upon procedures engagements, and financial and compliance management reviews for statewide budgetary compliance [i.e. Budgetary Compliance Report (BCR)] at the state’s colleges, universities, and technical colleges.
The Performance Audit Division
(PAD) conducts performance audits and special examinations of state programs. The audits may be internally generated or may be conducted in response to requests received from the Governor or the House and Senate Appropriations Committees. The Division also conducts follow-up reviews to determine what actions have been taken in response to previous reports.
Audits of Medicaid Providers
The Healthcare Audit Division (HAD) conducts cost report audits of nursing homes for use by the Department of Community Health (DCH) in setting the nursing home reimbursement rates. The Division also conducts audits of provider claims to determine if they were appropriate. The Division also conducts quarterly access monitoring to help ensure Medicaid recipients have adequate access to care through the Medicaid program's Care Management Organizations (CMOs).
Information Systems Audits
The Technology Risk & Assurance Division (TRA) assesses IT risk and the effectiveness of the information technology control environment for the state. Division personnel evaluate IT general and application controls to support financial auditors in planning and determining the nature, timing and extent of audit procedures to be performed in support of the CAFR, as well as providing timely recommendations to management for needed improvements in IT-related controls. Other activities include performing risk-based information systems reviews to evaluate IT governance related to IT processes and IT strategic alignment, and performing vulnerability assessments for significant state businesses to determine weaknesses within the IT environment.
Audits of Local Education Agencies
The Education Audit Division conducts audit work at the local county and municipal school systems. The Division performs annual financial statement audits and federal and state compliance work.
Reviews of Local Government Audit Reports
The Nonprofit and Local Government Audits Division (NALGAD) reviews financial audit reports and agreed-upon procedures reports of county and municipal governments for compliance with generally accepted accounting principles (GAAP) and ensures that they have prepared corrective action plans to address the reports’ findings and recommendations. The Division reviews the actuarial investigations/ reports submitted by local retirement systems and prepares a biennial report on the financial soundness of the systems.
Reviews of Nonprofit Organization Financial Statements
The Nonprofit and Local Government Audits Division (NALGAD) reviews financial audit reports/financial statements for Nonprofit organizations that contract with the state.