Seven state departments are holding millions in revenue from fees in violation of allowed statutory reserves, according to the Colorado Office of the State Auditor’s annual Cash Funds Uncommitted Reserves audit.
The audit found that, as of June 30, 2020, the seven departments had a total of $9.1 million in excess uncommitted cash reserves.
“Paying attention to excess revenue in cash funds is important because it can affect whether the state owes refunds under the Taxpayer’s Bill of Rights,” said Crystal Dorsey, legislative audit manager.
The seven departments were the Department of Agriculture, Department of Law, Department of Personnel and Administration, Department of Public Health and Environment, Department of Public Safety, Department of Regulatory Agencies and Department of State.
Under state law, the departments are now required to reduce fees or increase spending to eliminate the excess funds.
Since this is the fourth consecutive year that the Department of Law has been found to have excess uncommitted funds, the Office of the State Controller will be restricting the department’s spending authority until the excess is eliminated.
The remaining six departments have agreed to take action to eliminate their excess funds, according to the audit report.
The full report is available online at leg.colorado.gov.