This report summarizes our fiscal year 2023 audit results for the following four agencies under the Secretary of Finance (Secretary):

 

•Department of Accounts

•Department of Planning and Budget

•Department of Taxation

•Department of the Treasury and the Treasury Board

 

Our audits of these agencies for the year ended June 30, 2023, found:

•proper recording and reporting of transactions, in all material respects, in the Commonwealth’s accounting and financial reporting system, each agency’s financial systems, and in supplemental information and attachments submitted to the Department of Accounts;

•ten findings involving internal control and its operations discussed in the Internal Control and Compliance Findings and Recommendations section, necessary to bring to management’s attention;

•nine of the ten findings are considered to be instances of non-compliance with applicable laws and regulations that are required to be reported; and

•adequate corrective action with respect to prior audit findings identified as complete in the Findings Summary included in the Appendix.

 

In the section titled “Internal Control and Compliance Findings and Recommendations,” we have included our assessment of the conditions and causes resulting in the internal control and compliance findings identified through our audits as well as recommendations for addressing those findings. Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the findings and develop and appropriately implement adequate corrective actions to resolve the findings as required by the Department of Accounts in Section 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures Manual. Those corrective actions may include additional items beyond our recommendations.

 

This report also includes information on significant initiatives for the Secretary and Department of Accounts, including the status of the Commonwealth’s Human Capital Management System development project and financial reporting changes for subscription-based information technology arrangements. In addition, it includes Risk Alerts, which are applicable to the Department of Accounts, Department of Planning and Budget, and Department of Taxation.