OPA released its semi-annual Audit Recommendations Tracking Report for the period ending June 30, 2004. Audit recommendations tracked for the first six months of 2004 totaled 67. Of the 67 audit recommendations, 9 were closed and 58 remained either open or resolved. Of the 58 open or resolved recommendations, 36 were considered delinquent.

OPA’s follow-up on outstanding audit recommendations and the response letters received from various government agencies resulted in the closure of 9 audit recommendations and encouraged agency action on delinquent recommendations. OPA closed 9 or 13% of the 67 recommendations it tracked in the first six months of 2004. The number of delinquent recommendations, however, slightly increased by 12% as of June 30, 2004.

An analysis of the 9 closed recommendations for the first six months of 2004 showed that most were closed because agencies acted by implementing OPA recommendations, establishing policies and procedures, and by issuing memoranda and directives to reemphasize the need to comply with existing laws and regulations. OPA also closed two recommendations due to jurisdictional, Statute of Limitations and other reasons and closed one recommendation due to full recovery of funds.

Recommendations issued by private CPA firms are also included in OPA’s audit recommendations tracking report. OPA is not responsible for tracking the implementation of these recommendations, however, they are included in the audit tracking report for information purposes. Based on th e classification followed by private CPA firms, a recommendation is described as either resolved or unresolved. OPA has
included in the tracking report a total of 83 recommendations in 8 recent audit reports issued by private CPA firms under contract by OPA.

As of June 30, 2004, recommendations in 9 audit reports were referred to the Attorney General’s Office for legal action to recover monies improperly expended. According to OPA’s audit reports, approximately $1,354,610 is potentially recoverable. In addition to this, potential recovery of another $4.6 million also hinges on agencies’ actions.

Recommendations in 12 audit reports identified potential recoveries due to unpaid rentals of land leases, overpayments in professional services contracts and retirement benefits and improper expenditure of public funds. As of June 30, 2004, initial actions by agencies resulted in partial recovery of $997,243 and one claim of $6,503 in accrued interest on public funds advanced for the Commonwealth Development Authority’s parking lot improvements fully recovered (Report No. AR-00-02) leaving a balance of $4,644,235 still to be recovered.

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