Minnesota Office of the Legislative Auditor
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Report Summary
Minnesota Veterans Home - Minneapolis

Full Scope Financial Audit

For the Two Years Ended June 30, 1994;

 

Public Release Date: August 25, 1995 No. 95-35

Agency Background

The Minnesota Veterans Home-Minneapolis (MVH) was founded in 1887 and is one of four veterans homes currently operating in the state. The mission of the MVH is to provide high-quality skilled nursing and/or domiciliary care to residents. Minn. Stat. Section 198.01 requires the veterans homes to provide nursing care and related health and social services to veterans and their spouses who meet eligibility and admission requirements. The home is under the direct management of the Veterans Home Board. Mr. Donald Mills is the current administrator of the MVH.

The MVH receives financial support from state appropriations, federal per diem reimbursements, and resident maintenance fees. Total receipts for federal per diem reimbursement and resident maintenance fees amounts to $9,050,000 and $9,378,000 in fiscal years 1993 and 1994, respectively. The largest expenditure for the MVH is payroll. Additional large expenditures include drugs, medicine, and food.

Audit Areas and Conclusions

MVH properly processes resident maintenance fees and federal per diem reimbursements. Resident maintenance fees, federal per diem reimbursements, and cost of care calculations are accurate. MVH eligibility determination procedures and the methodology used in calculating resident maintenance fees are in compliance with Minn. Stat. Sections 198.022 and 198.03 and related rules within Minnesota Rules 9050.

MVH processes resident deposits and withdrawals correctly. The account balances in the individual resident accounts and the statewide accounting (SWA) system are accurate. However, the MVH did not reconcile the imprest cash checking account correctly for fiscal years 1994 and 1995. MVH is in compliance with Minn. Stat. Section 198.265.

The Minnesota Veterans Home-Minneapolis (MVH) follows the payroll processing procedures outlined in the Department of Finance payroll manual. Time sheets are adequately documented and approved, and the correct pay rate is used in determining payments to employees. We did note one employee was underpaid during fiscal years 1993 and 1994. The MVH completed a retroactive adjustment of $428 to correct the pay rate of that individual. The MVH has allowed several employees to accumulate alternative holiday leave balances. One such individual, upon retirement, had accumulated 11 uncompensated holidays.

The MVH purchases drugs and medicine based upon the available contracts.

 

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