Department of Military Affairs
For theYear Ended June 30, 1994;
|Public Release Date: June 28, 1995
Evaluate internal control structure: Military construction, Army and Air National Guard reimbursements (CFDA #12.000), payroll, and state and federal administrative expenditures.
Test compliance with certain finance-related legal provisions.
We found one weakness in the internal control structure over contracts:
- The department needs to have all contracts approved by the Attorney General or a delegate, fully obligate funds prior to executing contracts, and keep copies of executed contracts on file in the department.
We found two departures from finance-related legal provisions:
- The department inappropriately borrowed money from the Minnesota State Armory Building Commission to purchase land to accommodate an operations and maintenance shop.
- The department provides administrative services to STARBASE Minnesota, Inc., a private non-profit corporation and grantee. The department disbursed grant money in excess of the grantee's immediate need. Also, STARBASE Minnesota, Inc. failed to obtain an audit under the OMB Circular A-133.