Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Military Affairs

Financial Audit

For the Year Ended June 30, 1993;

 

Public Release Date: June 17, 1994 No. 94-27

Objectives

  • Evaluate Internal Control Structure: Military construction, Amy and Air National Guard reimbursements (CFDA #12.00), payroll, state and federal administrative expenditures, and Minnesota State Armory Building Commission revenue and expenditures.

  • Test Compliance with certain Finance-Related Legal Provisions.

Conclusions

We found four weaknesses in the internal control structure:

  • The Armory Building Commission's bank account is not collateralized for balances exceeding $100,000.

  • The Armory Building Commission is not monitoring for compliance with the federal arbitrage restriction and rebate requirements.

  • The department overcompensated three National Guard members under the re-enlistment and tuition reimbursement programs.

  • The department overpaid the Department of Natural Resources under an interagency agreement.

We found one departure from finance-related legal provisions:

  • The department has entered into an employment relationship with a former employee contrary to Minn. Stat. Section 16B. 17.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155