We have audited the statewide budget and appropriation processing controls at the Department of Planning and Budget (Planning and Budget) for the year ended June 30, 2025.  Our audit found:

 

• • proper recording and reporting of financial and budget transactions, in all material respects and in accordance with the budget approved by the General Assembly, in the Commonwealth’s accounting and reporting system and in the Commonwealth’s budgeting system;

 

• • two matters involving internal control and its operation requiring management’s attention, that also represent instances of noncompliance with applicable laws and regulations that are required to be reported under Government Auditing Standards.

 

This report includes two risk alerts that require the action and cooperation of management at Planning and Budget and the Virginia Information Technologies Agency (VITA) regarding risks related to access to centralized audit log information and timely security audits.

 

In the section titled “Internal Control and Compliance Findings and Recommendations,” we have included our assessment of the conditions and causes resulting in the internal control and compliance findings identified through our audit as well as recommendations for addressing those findings.  Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the findings and develop and appropriately implement adequate corrective actions to resolve the findings as required by the Department of Accounts in Topic 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures Manual.  Those corrective actions may include additional items beyond our recommendation.