Department of Economic
Development
Quality of Internal Control Certification
Issued: December 6, 2012
Link to full audit report 2012-S-48
Purpose
To determine whether the Department of Economic Development (DED) submitted timely a
quality Internal Control Certification to the Division of Budget (DOB) by April 30, 2012.
Background
In 1987, the Legislature passed the New York State Governmental Accountability, Audit and
Internal Control Act (Act) requiring State agencies and public authorities to each institute a
comprehensive system of internal controls over their operations. DOB requires the head of each
covered State agency and public authority to certify compliance with the Internal Control Act
by April 30 of each year by submitting a certification and internal control summary detailing the
internal control activities undertaken during the previous year. On April 24, 2012, DED submitted
its annual Internal Control Certification and reported full compliance with all provisions of the
Act.
Key Findings
- DED's Internal Control Certification was submitted timely. However, we identified several areas where the quality of the certification could be improved.
- In three instances, DED's certification did not provide the required level of detail to explain the actual steps taken to implement certain provisions, including describing its internal control testing and monitoring processes and the results of its reviews of high risk activities.
- Although DED certified full compliance with all provisions of the Act, its internal audit function has not had an external quality control assessment completed as required by professional auditing standards.
Key Recommendations
- Provide appropriately detailed responses to questions as requested in the annual Internal Control Certification.
- Ensure that the internal audit function undergoes periodic external quality control assessments as required by professional audit standards.
Other Related Audits/Reports of Interest
Office for the Prevention of Domestic Violence: Quality of Internal Control Certification (2012-S-41)
Office of the Medicaid Inspector General: Quality of Internal Control Certification (2012-S-46)
Department of State: Quality of Internal Control Certification (2012-S-50)
State Government Accountability Contact Information:
Audit Director: John Buyce
Phone: (518) 474-3271; Email: StateGovernmentAccountability@osc.state.ny.us
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236
