Office of the Governor-Examination of Annual Internal Control Questionnaire

This is a limited audit checking whether the Governor’s Office accurately answered selected questions on its annual internal controls questionnaire for fiscal year 2015.

“The objective of our audit was to determine whether certain responses provided by OG to OSC on its fiscal year 2015 ICQ were accurate.”

The Auditor reviewed the office because state agencies report on their internal controls each year, and the Auditor wanted to verify whether key answers were accurate.

“The overall objective of our audit was to determine whether OG accurately reported certain information about its overall internal control system to OSC on its 2015 ICQ.”

If the office’s answers are wrong, state officials cannot reliably judge whether the office has good safeguards over money, records, and property.

“Further, inaccurate information on the ICQ prevents OSC from effectively assessing the adequacy of OG’s internal control system for the purposes of financial reporting.”

For residents, this matters because weak or poorly documented controls can make it harder to protect public assets from loss, theft, or misuse.

“In addition, without properly recording its capital assets, performing and documenting an annual physical inventory, or establishing procedures encompassing all phases of the inventory process, OG is not ensuring that its capital assets are properly safeguarded against loss, theft, and misuse and that its inventory records are complete and accurate.”

The Governor’s Office said it had controls and procedures in place, but the audit found several answers were not true or were not supported by records.

“Some of the information that the Office of the Governor (OG) reported on its Internal Control Questionnaire (ICQ) to the Office of the State Comptroller (OSC) for fiscal year 2015 was inaccurate or not supported by documentation.”

The Auditor recommended that the Governor’s Office fix the identified problems, follow Comptroller requirements, and ask for guidance if needed.

“OG should take the measures necessary to address the issues we identified during our audit and should ensure that it adheres to all of OSC’s requirements for developing an ICP and accurately reporting information about its ICP, risk assessment, and capital-asset inventory on its ICQ.”

The report is significant because it found problems in basic accountability systems at the Governor’s Office, including risk assessment, inventory tracking, and accurate reporting to the Comptroller.

“Without establishing an ICP in accordance with OSC guidelines, OG may not be able to achieve its mission and objectives effectively; efficiently; and in compliance with applicable laws, rules, and regulations.”

An ICQ is the yearly questionnaire agencies use to report on their internal controls; an ICP is the agency’s internal control plan; and ERM is a structured way to identify and manage risks.

“The ICQ is a document designed by OSC that is sent to departments each year requesting information and department representations on their internal controls over 12 areas: management oversight, accounting system controls, budget controls, revenue, procurement and contract management, invoices and payments, payroll and personnel, investments held by the Commonwealth, material and supply inventory, capital-asset inventory, federal funds, and information-technology security and personal data.”