ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, September 1, 1996 TAG: 9609030081
SECTION: VIRGINIA PAGE: B-4 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
The agency responsible for overseeing state parks could cost Virginia millions of dollars in federal grants because it has trouble keeping track of the taxpayer dollars it takes in and spends, auditors say.
Walter J. Kucharski, the state auditor of public accounts, said financial management at the Department of Conservation and Recreation is the worst in Virginia, but does not involve fraud.
``I don't know anybody else who has been this bad for this long,'' he said.
``A lack of leadership and technical competence is the cause of numerous internal [financial] control weaknesses,'' said the latest report from Kucharski's office, which covers the fiscal year ending June 30, 1995.
The conservation department has a $23 million general-fund budget, and gets millions more from grants, park fees and other sources. It oversees 26 state parks, some anti-pollution programs, dam safety and a program to protect rare species.
The agency received $5.1 million in federal grants in 1994-95.
Under federal law, the agency must track the grants closely to ensure the money is spent the way the grants require. Because of its poor performance in that pursuit, the department could lose future grants, or even be forced to return some of the money it already has received, the report said.
The latest report also concluded that the department does not adequately control its petty cash fund; does not ensure that payments from private contractors are correct; and does not have adequate controls to keep it from making duplicate payments to vendors contracted to provide park services.
``These errors reduce efficiency by requiring extra time and resources to make corrections, and if not detected, duplicate payments could cause economic loss to the department,'' the report said.
Kathleen W. Lawrence, who took over as the department's director May 6, said she is creating a new financial office to end the problems.
LENGTH: Short : 44 linesby CNB