NCJ Number
68066
Date Published
1979
Length
14 pages
Annotation
AUDIT OF NEVADA DEPARTMENT OF PRISONS, PRISON WAREHOUSE FUND, FOUND THE FINANCIAL STATEMENTS PROVIDED DID NOT REPRESENT THE FUND'S POSITION FAIRLY OR CONFORM TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
Abstract
THE REVIEW OF THE FUND'S BOOKS THROUGH JUNE 30, 1978, SHOWED $28,000 IN BEDDING AND CLOTHING WERE INCLUDED IN THE WAREHOUSE INVENTORY BUT IN THE POSSESSION OF A SPECIFIC CORRECTIONAL CENTER. ALSO, THE FUND INVENTORY, IN EXCESS OF $175,000, HAD NOT BEEN RECORDED (NOR HAD EQUIPMENT AND ACCUMULATED DEPRECIATION) WITH THE STATE CONTROLLER, UNDERSTATING BY A MATERIAL AMOUNT BOTH ASSETS AND FUND BALANCE. THE PRISON WAREHOUSE FUND DID NOT RECORD SALARY AND SALARY-RELATED EXPENSES. THE AUDITOR RECOMMENDED (1) THAT ACCOUNTS BE RECORDED AND ADJUSTED TO ACCURATELY REFLECT THE FUND'S FINANCIAL POSITION; (2) THAT ALL COUNTING TEAMS (NOW MADE UP OF PRISONERS) INCLUDE A STAFF PERSON AND THAT A STAFF PERSON RECORD INVENTORY ON COUNT SHEETS; (3) THAT THE DEPARTMENT OF PRISONS DOCUMENT AND INFORM ALL PERSONS OF INVENTORY PROCEDURES; (4) THAT ITEMS USED BY THE INSTITUTIONS BE ENTERED IN THE PROPER ACCOUNTING CATEGORY. IT WAS ALSO RECOMMENDED THAT THE DEPARTMENT OF PRISONS DOCUMENT AN ANALYSIS SUPPORTING THE CALCULATION OF THE PERCENTAGE MARKUP ON SALES, CONDUCT PERIODIC REVIEWS AND UPDATE THE MARKUP ANALYSIS, AND SEGREGATE DUTIES FOR ORDERING, RECEIVING, AND APPROVING VOUCHERS FOR PROCESSING AND PREPARING SALES DOCUMENTATION. THE IMPLEMENTATION STATUS, AGENCY RESPONSE, AND FINANCIAL STATEMENTS ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED--KHM)