Report 2005-123 Recommendations

When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below, is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor's assessment of auditee's response based on our review of the supporting documentation.

Recommendations in Report 2005-123: Department of Corporations: It Needs Stronger Oversight of Its Operations and More Efficient Processing of License Applications and Complaints (Release Date: January 2007)

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Recommendations to Corporations, Department of
Number Recommendation Status
1

To strengthen its operational oversight, Corporations should seek legislative authority allowing it to set fees by regulation. This legislative authority should require that Corporations annually assess its fee rates and establish fees that are reasonably related to its cost of providing the services supported by its fees. Corporations should also factor in the amount of any excess reserves when conducting its annual assessment.

Fully Implemented
2

To improve the efficiency and effectiveness of its system for collecting actual performance measure information, Corporations should consider assessing the need for new automated data systems or determining whether its current systems are capable of collecting the necessary information.

Fully Implemented
3

To improve the efficiency and effectiveness of its system for collecting actual performance measure information, Corporations should ensure the accuracy and completeness of the information in its automated systems by requiring staff to enter the information and requiring supervisors to review it periodically. For data not currently available in automated format, Corporations should develop stronger procedures to ensure that staff accurately report and supervisors review the information. To make better use of staff time, Corporations should consider calculating and reporting performance measures quarterly, rather than monthly, until it has a more efficient data collection system.

Fully Implemented
4

To ensure that it has identified all necessary performance measures and appropriately focused its current performance measures, Corporations should continue to assess the reasons for performance deficiencies and add or adjust performance measures as needed. For example, inefficiencies in the call center apparently caused the enforcement division to appear slow in responding to complaints. Adding a performance measure of the call center's timeliness in reporting complaints to the enforcement division would immediately pinpoint the cause for delays.

Fully Implemented
5

To ensure that the outreach unit can effectively measure its success, Corporations should ensure that it collects all of the necessary data and establishes reasonable benchmarks.

Fully Implemented
6

To ensure that all applications are reviewed promptly and sufficiently, Corporations should continue to monitor the progress of applications through the review and approval process to identify any that have stalled, and investigate the reason for the delay.

Fully Implemented
7

To ensure that all applications are reviewed promptly and sufficiently, Corporations should follow the law in notifying applicants once their applications are complete.

Fully Implemented
8

To ensure that all applications are reviewed promptly and sufficiently, Corporations should follow up with applicants that do not promptly respond to deficiency notices.

Fully Implemented
9

To ensure that all applications are reviewed promptly and sufficiently, Corporations should assess whether it needs additional staff to process applications.

Fully Implemented
10

To ensure that all applications are reviewed promptly and sufficiently, Corporations should maintain all necessary data in its information management systems so that it can effectively calculate the number of days it takes to process applications.

Fully Implemented
11

To improve the efficiency of its complaint-handling process, Corporations should develop procedures to track the progress of complaints to ensure that they continue to move through the process without unnecessary delay.

Fully Implemented
12

To improve the efficiency of its complaint-handling process, Corporations should monitor its newly established complaint-referral process and develop procedures, if necessary, to decrease the length of time it takes to refer cases to the appropriate division.

Fully Implemented
13

To improve the efficiency of its complaint-handling process, Corporations should review its existing complaint records and eliminate duplicates and correct any inaccurate fields. Further, Corporations should maintain accurate and complete data to ensure that the information systems can be used more effectively as management tools.

Fully Implemented
14

Corporations should develop a plan to conduct examinations of licensees in accordance with state law and its own internal policy. Further, Corporations should establish clear guidance and response time frames for following up on deficiencies identified in examinations.

Fully Implemented


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