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Galloway releases annual report examining state’s financial reporting processes

  

JEFFERSON CITY, Mo. — State Auditor Nicole Galloway today released an annual report on the state’s financial reporting processes. Each year, the Missouri State Auditor’s Office examines Missouri’s annual statewide financial statements and makes recommendations to ensure accurate financial reporting. 

 For state fiscal year 2020, the state’s Comprehensive Annual Financial Report covered approximately $47 billion in assets and $31 billion in expenses. The State Auditor’s Office released a report on the Comprehensive Annual Financial Report in February, which included work to ensure state agencies have effective processes to ensure accurate financial reporting. Today’s report details the findings and makes recommendations to state agencies to prevent future errors.

 Auditors identified incorrect financial data submitted to the Office of Administration by Department of Revenue. The Department of Revenue’s system for tracking delinquent motor vehicle sales tax does not include complete and accurate information in some cases.

 Additionally, procedures used by personnel to calculate accounts receivable amounts were inadequate. As a result, the Department of Revenue misstated $292 million related to delinquent motor vehicle sales tax. This affects financial reporting for several funds throughout state government.

 The errors were identified by auditors and corrected before the 2020 financial statements were finalized. The misstatements also affect the state’s 2019 financial statements, which the Office of Administration corrected. The report recommended that the department improve its processes to ensure reports related to motor vehicle sales tax accounts are accurate.

Additional audit work related to the state’s management and spending of federal dollars administered by state agencies is ongoing. The annual Statewide Single Audit will be released this spring.

 The complete report detailing the findings in the Comprehensive Annual Financial Report is available online here.