Wednesday, June 6, 2012

Schweich Releases Year-End Spending Audit of Five State Agencies

State Auditor Tom Schweich released an audit of the year-end spending practices of five state agencies today.  Because of the compound nature of this report, no overall rating is provided.

Schweich's audit focused on five state agencies:  The Department of Corrections (DOC), the Office of Administration (OA), the Department of Mental Health (DMH), the Department of Revenue (DOR), the Office of State Courts Administrator (OSCA).

The scope of the audit included, but was not limited to, the two years ended June 30, 2011.  State agencies are granted the authority to spend tax dollars through appropriations, but regular appropriations not spent by the end of the fiscal year lapse on June 30 and are no longer available to be spent.  Schweich's audit was conducted to determine if the state follows sound financial and management practices with respect to year-end spending.

Schweich's audit found that state agencies purchase goods and services toward the end of the year for a wide variety of reasons, with some reasons appearing more legitimate than others.  Some state employees that contacted the auditor's office said unnecessary year-end spending occurs, and that lapsing funds could result in future funding cuts.

Schweich's office recommends that the Office of Administration start providing state agencies with guidance on the appropriate use of remaining appropriations at the end of a fiscal year, similar to the federal rule which requires that appropriations only be used to meet legitimate needs arising during the appropriation's fiscal year.

To view the reports on the five state agencies and the Citizens Summary, visit: :

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