Department of Fish, Wildlife & Parks

The Department of Fish, Wildlife & Parks’ (department’s) primary revenue source comes from licenses and permits for activities such as hunting, fishing, and conservation. The department generated about $78 million and $84 million from these licenses and permits in fiscal years 2022 and 2023. The department received approximately $51 million and $47 million in federal revenue during the same period. A significant portion of these funds came from the Fish and Wildlife Cluster federal programs, which focus on restoring, conserving, and enhancing sport fish and wildlife populations, as well as supporting public use and enjoyment of these resources.

An unmodified opinion means the reader can rely on the information contained in the financial statements for decision-making purposes.

We focused our audit efforts on revenues from licenses and permits and federal revenues. We also reviewed expenditures related to operating expenditures, capital outlays, and personal services. This included reviewing the department’s internal control procedures, performing analytical procedures, and reviewing accounting transactions. We also performed work to determine if the department complied with federal regulations over the Fish and Wildlife Cluster federal programs.

Licenses and permits revenue have increased over the last five years. During the COVID-19 pandemic, the department’s revenue rose slightly due to increased outdoor activity. Reasons for increased revenues in other years includes population increases, interest in hunting and fishing, and statutorily required increases to licenses and permits fees.

Our prior audit recommended that the department allocate the internal auditor’s time to the Wildlife Restoration and Basic Hunter Education grants based on the benefits received and charge salary costs accordingly. In fiscal year 2022, the internal audit position was eliminated, effectively addressing the recommendation we now consider fully implemented.

Another recommendation was to enforce control procedures by ensuring a program supervisor reviews all expenditures. We tested a sample of expenditures and found that all were approved by the appropriate supervisor or manager, confirming that this recommendation has been fully implemented.

The prior audit recommended the department comply with state law and policy governing its internal service funds by charging fees commensurate with costs and maintaining its working capital within 60 days. We reviewed the fees, charges, and fund equity of the department’s internal service funds, which had activity in fiscal years 2022 and 2023, to determine compliance with §17-8-101(6), MCA. These funds include the aircraft fleet, vehicle fleet, and the department’s warehouse.

The Legislative Audit Division’s financial audit model reform efforts currently include an evaluation of more effective methods for reporting the results of internal service fund analyses to the legislature. We make no further recommendation to the department as part of this audit report because the results of our analysis will be included in the new reporting approach.