Alaska Division of Legislative Audit
Audit Digest #25-10001-00

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PURPOSE OF THE REPORT

In accordance with Title 24 of the Alaska Statutes, we performed a review of the Department of Transportation and Public Facilities, Alaska Marine Highway System (AMHS) Fund FY00 unrestricted revenue activity. As part of this review, we express an opinion on the related financial schedule.

In our opinion, the financial schedule presented in this report is fairly presented. However, internal control weaknesses were detected during our review. Accordingly, we make the following recommendations.

We make five recommendations concerning the internal control structure of AMHS operations. Specifically, we believe the following corrective action is necessary:

1. The director for AMHS in coordination with the director of the Division of Administrative Services should implement procedures to periodically review tariff overrides for trends in excessive or unauthorized use.
2. The AMHS director should enforce the policy requiring pursers’ safes to be locked. This policy should be expanded to include safes at ferry terminals.
3. The AMHS director should enforce the requirement that bank deposits be made timely.
4. The AMHS director should collaborate with the regional director of the Inland Boatman’s Union to modify its collective bargaining agreement to include nepotism guidelines.
5. The AMHS director should implement procedures to ensure that reservation system users have limited security access to the reservation system.

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