Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Metropolitan Sports Facilities Commission

Financial Audit

For the Year Ended December 31, 1993;

 

Public Release Date: September 14, 1994 No. 94-49

Objectives

  • Assess Internal Control Structure: Cash and investments, operating revenue, operating expenses, payroll, and fixed assets.

  • Test Compliance with certain Finance-Related Legal Provisions.

Conclusions

We found that the internal control structure provided commission management with reasonable assurance regarding the safeguarding of assets and the proper execution and recording of transactions.

We found four issues that affected compliance with finance-related legal provisions:

  • The commission did not comply with the requirements of Minn. Stat. Section 118.01, subd. 2 for having sufficient collateral for its bank deposits on 37 days during the year.

  • The commission improperly allowed a former employee to accrue sick and holiday pay, resulting in an overpayment of $1,288 to the employee.

  • The commission did not publish its audited financial statements by April 30, 1994, as required by the covenants of its Indenture of Trust. The trustee approved a short-term extension of this deadline, and the commission published its audited financial statements on May 16, 1994.

  • In the course of studying its investment practices, the commission learned that two of its investments potentially did not meet the standards for legally permitted investments. The commission has since liquidated those two investments, with a negligible effect on net income.

Finally, during the course of our audit fieldwork, it was discovered that a commission employee had filed fraudulent payment documents totaling approximately $11,000. The commission has terminated the employee and referred the matter to the Minneapolis City Attorney's Office for possible criminal prosecution.

 

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