Division of the Budget

State Agency Internal Audit Units: Compliance with Internal Control Act

A total of 34 State agencies are required to have an internal audit function that complies with various requirements contained in the New York State Governmental Accountability, Audit and Internal Control Act. We examined each of these agencies’ compliance with these requirements and found that significant improvements are needed. For example, 21 of the internal audit units are not sufficiently independent of other agency activities, and the audit processes of 13 agencies have serious deficiencies. Only 4 of the 34 agencies fully complied with all the requirements we tested, and 19 of the 34 agencies failed to comply with two or more requirements. Two agencies (the Department of Health and the Division of Military and Naval Affairs) had not even established an internal audit function. We recommended that the Division of the Budget work with the agencies to bring about the needed improvements in their internal audit functions.

For a complete copy of Report 2003-S-14 click here.
For a copy of the 90-day response click here.