Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Office of the Secretary of State

Financial Audit

For theTwo Calendar Years Ended December 31, 1994;

 

Public Release Date: June 23, 1995 No. 95-28

Agency Background

Article V of the state constitution established the Office of the Secretary of State which operates under Minnesota Statute Chapter 5. The Secretary of State is elected for a four-year term. Joan Anderson Growe has served successive terms as the Secretary since January 1975. The Secretary serves as the chief election official of the state. In addition, the Secretary is the custodian of the state seal. The Office of the Secretary of State serves as the official repository for public documents of the state.

Audit Areas and Conclusions

Our audit scope included a review of fee and surcharge revenues, refunds, payroll, and capital equipment lease payments for the period from January 1, 1993 through December 31, 1994.

We audited fee and surcharge revenue collected by the Office of the Secretary of State. We concluded the office appropriately accounted for and deposited fee and surcharge revenues. However, we found that the office questionably retained approximately $184,000 in its direct access dedicated account based on its interpretation of state law. In addition, we found that the office did not require reinstated foreign corporations to pay an annual license fee. We also found a programming error in the county surcharge billing process.

We also audited refund payments made by the Office of the Secretary of State. We found that the office does not have an adequate separation of duties over refunds. In addition, we found that the office does not have a sufficient tracking system to determine whether it issued refunds to the appropriate customers.

Finally, we audited payroll and capital equipment lease payments made by the Office of the Secretary of State. We concluded that the office accurately authorized, paid, and accounted for payroll and capital equipment lease payments.

 

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