Section 2-90 of the Connecticut General Statutes authorizes the State Auditors to examine the books and records of state departments, commissions and boards as well as certain quasi-public agencies. Generally, these audits will cover two fiscal years and will focus on state, rather than federal, funds. These audits will be in addition to whatever audit work may have been done to satisfy the requirements for the CAFR audit and the Statewide Single Audit. A departmental audit is a financial and compliance audit that focuses on the auditee’s internal control structure and compliance with certain laws, regulations, contracts and grant agreements. A departmental audit is considered to be an "Other Financial” audit as defined in the GAO Yellow Book. The financial statement audit is done as part of our work on the CAFR.
The transaction testing performed as part of a departmental audit at individual state agencies is directed at evaluating the internal control systems and compliance issues relative to the individual agencies. Where the internal control structure or compliance issue is material or significant to issuing an opinion on the CAFR or to satisfy the requirements of the federal Single Audit Act, the internal control structure or compliance issue has been included under the scope of our CAFR and/or Single Audit work. Thus, problems with internal control systems or compliance issues identified through transaction testing under our departmental audit procedures will normally not be material or significant to conclusions reached on a statewide basis relative to either the CAFR or the federal Single Audit.