Minnesota Office of the Legislative Auditor
Financial Audit Division


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Report Summary
Department of Corrections

Selected Scope Financial Audit

For the Year Ended June 30, 1993;


Public Release Date: September 9, 1994 No. 94-46

Agency Background

The Department of Corrections is a service and regulatory agency which oversees the correctional facilities and community programs for adjudicated delinquent and adult felons. The primary purpose of the department is public protection. Frank W. Wood was appointed commissioner effective September 9, 1993.

Selected Audit Areas

Appropriation Control - Correctional Facilities

The Department of Corrections complied with fiscal year 1993 appropriation laws when distributing General Fund appropriations to the correctional facilities. However, the level of General Fund support of the correctional industries program has been consistently higher than budgeted. The department also made a loan from the General Fund without proper approval and did not repay the interest due.

Minnesota Correctional Industries Program

The Minnesota Correctional Industries (MCI) Program has reported losses every year since inception. Financial operation improvements would achieve greater cost efficiency and reduce state subsidies. Controls over raw material purchases also need strengthening.

Sex Offender Program Conflict of Interest

Our review focused on a potential conflict of interest for employees of the sex offender program. We did not review the financial activity of the sex offender program as a part of this audit. Conflicts of interest occurred and the department resolved them in some instances. However, other situations require further action.


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