Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Board of Barber Examiners

July 1, 1995, through June 30, 2000

Key Finding and Recommendation:

• The Board of Barber Examiners overspent its fiscal year 2000 appropriation by approximately $7,000 and is experiencing budget difficulties in fiscal year 2001. To remedy this, the board should institute a more formal process to monitor its financial operations. The board's fiscal oversight should include formal approval of the operating budget and specific approval of financial decisions the board considers material to its operations. The board should receive periodic updates on the financial status of the board's financial operations, including comparisons of budgeted and actual revenues and expenditures. Board minutes should document key financial decisions made by the board.

Other Key Audit Conclusions:

• The board did not recover its costs for the 1998-99 biennium as required by statute. During this period, costs exceeded revenues by approximately $50,000. A fee increase that took effect in October 1999 alleviated the cost concern for fiscal year 2000.
• The board collected and deposited the appropriate license and examination fees and fines and penalty receipts. Board expenditures were consistent with the board's purpose. The board's financial activities were properly recorded in the accounting system, and except for the cited finding and conclusion, complied with legal requirements.

The state Board of Barber Examiners regulates the licensing of barbers and barber schools. The board consists of three registered barbers and one public member appointed by the Governor. The board employs an executive secretary and an inspector. The executive secretary is responsible for all administrative functions of the board.

Duties performed by the board include: examining applicants for original licensure, renewing licenses for registered barbers, apprentices, and instructors in barber schools and colleges, and registering and inspecting barber shops and barber schools. The board finances its operations through General Fund appropriations that ranged from $128,000 - $149,300 during the audit period. The board deposits its receipts into the state's General Fund as non-dedicated revenue.