AUDIT SUMMARY

Our audit of the Department of Human Resource Management (Human Resource Management) for the year ended June 30, 2025, found:

 

• • proper recording and reporting of all transactions, in all material respects, related to the State Health Plans Program for Pre-Medicare Retirees, the Health Insurance Fund, the Local Choice Health Care Fund, the Line of Duty Act Fund, and the Workers’ Compensation Fund, in the Commonwealth’s accounting and financial reporting system, in Human Resource Management’s accounting records, and in supplemental information and attachments submitted to the Department of Accounts (Accounts) after adjustment for the misstatements noted in the finding “Strengthen Internal Controls Over Financial Reporting;”

 

• • one deficiency related to financial reporting that we consider to be a material weakness in internal control;

 

• • two additional matters involving internal control and its operation requiring management’s attention; however, we do not consider them to be material weaknesses; and

 

• • no instances of noncompliance with applicable laws and regulations or other matters required to be reported under Government Auditing Standards.

 

In the section titled “Internal Control Findings and Recommendations,” we have included our assessment of the conditions and causes resulting in the internal control 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 Accounts in Topic 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures (CAPP) Manual.  Those corrective actions may include additional items beyond our recommendation.