Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Military Affairs

Financial Audit

For theYear Ended June 30, 1994;

 

Public Release Date: June 28, 1995 No. 95-27

Objectives

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.

Conclusions

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.

 

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