REPORT DIGEST

FINANCIAL AUDIT
For the One Year Ended:
June 30, 1998
and
COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

SYNOPSIS

• The Capital Development Board (CDB) was stringing purchases of computer equipment totaling $65,207 to avoid authorization and procurement processes and filing requirements.

{Expenditures and Activity Measures are summarized on the reverse page.}

FY 1998

FY 1997

FY 1996

• Total Revenues
• Total Expenditures
• Other sources (Uses) of Financial Resources
  Appropriations, Net of Amount
    Reappropriated for Future Year
    and Net of Amounts Lapsed
  Operating Transfers Out, Net
  Other

• ASSETS
  Cash and Cash Equivalents
  Receivables, Net
  Property, Plant, and Equipment
• LIABILITIES
  Payables
  Amounts Retained from Payments to Contractors
  Liability for Employee Compensated Absences

$14,793
$162,427



$215,882
$(54,127)
$1,192


$16,462
$2,561
$58,287

$34,751
$11,299
$1,415

$21,277
$216,759



$340,124
$(67,519)
$(18,530)


$22,540
$3,427
$96,178

$39,451
$18,812
$1,464

$23,806
$252,129



$359,318
$(111,238)
$(19,645)


$25,669
$6,406
$82,517

$46,640
$22,858
$1,286

1998

1997

1996

• Construction Costs Administered
• Total Number of Projects
• Number of Project Managers
• Average Number of Employees

$354,188
2,243
60
161

$320,623
2,225
57
163

$354,188
2,343
41
162

Fourteen separate orders in amounts less than $5,000 were placed with the same manufacturer

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CIRCUMVENTION OF AUTHORIZATION/PROCUREMENT PROCESS AND FILING REQUIREMENTS

 

The Capital Development Board (CDB) was stringing purchases of computer equipment totaling $65,207 to avoid authorization and procurement processes and filing requirements.

 

CDB placed a series of 14 separate orders for computer equipment in amounts less than $5,000 to avoid having to solicit competitive bids, to avoid requirements to obtain approval from and file documents with the Department of Central Management Services (DCMS), and to avoid requirements to file documents with the Comptroller's Office. All the purchases were placed directly with the same manufacturer.

 

The auditors recommended the Agency implement adequate controls to ensure it is aware of all applicable procurement guidelines and requirements and that it discontinue the practice of stringing computer equipment purchases to circumvent procurement rules. (Finding 98-1, pages 10-11)

 

CDB representatives indicated they were unaware of authorization and procurement requirements of the 1995 revision to DCMS' Microcomputer Program Procurement Guidelines. They also stated however, they would work with DCMS representatives to ensure proper procurement procedures are followed in the future.

 

OTHER FINDINGS

 

The remaining findings and recommendations were less significant and are being given appropriate attention by Agency management. We will review progress toward implementation of our recommendations during our next audit. Agency responses were provided by Ms. Sharon Stapleton, Chief Internal Auditor.

AUDITORS' OPINION

Our auditors stated the financial statements of the Capital Development Board for the year ended June 30, 1998 are fairly presented.

 

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

 

SPECIAL ASSISTANT AUDITORS

Sikich Gardner & Co, LLP were our special assistant auditors for this engagement.