The State Auditor of Public Accounts is flagging record keeping at the Attorney General’s office in their latest audit report.
Among multiple findings in the report was a concern over the method by which the office tracks settlement amounts due to the state and its agencies. According to the audit, the AG’s office is supposed to log any judgments or settlement amounts in a master log of accounts receivable. This log is then submitted to the State Comptroller’s office, which acts as an accountant for the state’s government.
The audit found that the system set up to monitor various phases of a settlement did not operate properly, leaving managers at the agency unable to properly monitor and collect outstanding funds.
Among 25 accounts reviewed by the auditors, it was unclear whether there were outstanding balances due on 17 different cases. They also determined that “the Office of the Attorney General did not review or reconcile settlement accounts receivables to the Master Accounts Receivable Log including $10,169,556 in delinquent receivables.”
Additionally, they found that the office maintained records of more than $7 million in outstanding balances older than 10 years and that “it is unlikely that the office will collect these older receivables.”
This, however, is not a new finding for the AG’s office. In fact, according to the audit report, it has been repeated in seven different audits conducted since 2004. In its response, the agency stated that it is aware of the issues in uniformly reporting accounts receivable and that it is taking steps to train employees properly.
“The Office is also presently working with the Office of Policy Management to develop additional policies for the proper processing of accounts receivable, including the policies and procedures for submitting uncollectible debts for write- off in a timely manner,” it continued.
In addition to the accounting issues, the audit also found issues in personnel and payroll practices. It found that understaffing of the AG’s Human Resources department has led to delays in shifting to a statewide electronic payroll system, forcing employees to use paper timesheets which, according to auditors, causes delays in monitoring hours and labor.
Additionally, that understaffing caused roles and responsibilities in the HR department to lack proper segregation. This allowed one person to have control over both hiring and payroll functions which runs the risk “that fraudulent transactions can be processed and not detected.” Fraudulent payroll transactions were not noted as a result of this issue, only its potential.
The auditors also found that the office lacks proper annual performance reviews for employees, did not receive proper documentation for medical leave from three employees, and lacks proper systems for approving and documenting compensatory time.
To respond to these issues, the AG’s office says they are working to secure additional HR staffing, which should alleviate the problems.
Republish our articles for free, online or in print, under a Creative Commons license.
Thank you for reporting what most likely will go unreported in our local news venues. To read what has been apparent if you have ever had to work with a state run arm of government only verifies what has been assumed..We get to pay for their lack of care or concern.
Four years ago I wrote AG Tong about a settlement that I was a victim and the AG’s office had received the funds. I wanted to know about the disbursement to victims of those funds and I never got a straight answer. On October 31, 2019 I filed a claim with the State of Connecticut – Office of the Claims Commissioner. Claim (25803) still pending after 4 years? I then filed a Freedom of Information Act request, and the AG’s office (Sandra Arenas & Antoria Howard) have refused to submit information in the FOIA to me. I’ve submitted another FOIA request (23 August 2023) directly to AG Tong. Reading your article and Audit report, this LEGAL office of Connecticut is I believe fits in the fraud department. Attorneys get paid while victims do not get paid. How can this office lose(?) such money?