Date: 01/19/2012
Final
Unimplemented DHS Audit Items
COMMITTEE ON JOINT HEALTH AND HUMAN SERVICES
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01:41 PM -- Unimplemented DHS Audit Items
Kerri Hunter, Deputy State Auditor, introduced herself and Cindi Radke, audit manager with the State Auditor's Office. Ms. Hunter stated that they would be discussing the outstanding audit recommendation contained in the report provided to the committee (Attachment A).
Ms. Radke presented the outstanding audit recommendations made to the Department of Human Services (DHS) that have not yet been fully implemented. She described the three finding classifications used by the Auditor's Office, which are material weakness, significant deficiency, and deficiency in internal control. She stated that the report presented to the committee contains 38 recommendations. She stated that there are no material weaknesses contained in the report, which is the most severe of the findings classifications. There are 20 items that carry a significant deficiency and 18 items that carry a deficiency in internal control. Ms. Radke reviewed the 20 items that carry a significant deficiency classification.
The committee, Ms. Hunter, and Ms. Radke dialogued about the outstanding audit recommendations, including the relationship they have with federal audits, the process used for testing controls, the relationship between the Colorado Financial Reporting System (COFRS) and the County Financial Management System (CFMS), and the severity of the issues contained in the audit report.
02:10 PM
The committee, Ms. Hunter, and Ms Radke continued to dialogue about the impact the outstanding audit recommendations have on people on public assistance, the risk of federal sanctions, and what recourse the legislature has to make sure these recommendations are implemented. The committee discussed what should be done with the information presented by the State Auditor's staff, including creating more awareness of the issues, eliminating redundancies with federal audits, and conversing with the executive director of DHS about why the audit recommendations have not been implemented.