Overview
For our audit period, we could not ensure the completeness and accuracy of the tax identification number (TIN) list that OST provided or the completeness of the population of New Account Request Forms. We identified seven bank accounts that were opened before our audit period but were not on the fiscal year 2018 or fiscal year 2019 TIN list and one account that was opened before our audit period but was not on the fiscal year 2019 TIN list. All eight accounts were on the fiscal year 2020 and fiscal year 2021 TIN lists.
During our testing for Objective 1, for the bank accounts we were able to identify, we did not find any instances where state agencies did not use qualified approved banks when maintaining bank accounts. However, if a bank doing business with the Commonwealth loses its qualified status and an accurate list of Commonwealth bank accounts is not available, there is a risk that a state agency could unwittingly do business with an unqualified bank, putting Commonwealth funds at risk of loss.
Authoritative Guidance
The “Bank Account List Maintenance” section of OST’s “Bank Account Maintenance Policy” states,
- [OST’s] Cash Management Department is responsible for managing banking activities which include . . .
- Maintaining and publishing the list of approved banks that Commonwealth agencies can use for deposits and the list of banks that are currently holding deposits from Commonwealth agencies.
Maintaining this list should entail ensuring that the list is accurate.
Reason for Issue
OST management told us that because the process for maintaining the TIN list was manual, the list was subject to errors. However, OST had not implemented any internal controls to detect such errors.
Recommendation
OST should implement internal controls to detect any errors on the TIN list.
Auditee’s Response
The OST agrees that the TIN list needs to be more accurate. . . . OST will review its current procedures and develop a solution to address this issue.
Auditor’s Reply
Based on its response, OST is taking measures to address our concerns on this matter.
| Date published: | February 28, 2022 |
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