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Report Summary
Minnesota Indian Affairs Council


Financial Related Audit

For the Four Years Ended June 30, 1995;

 

Public Release Date: October 27, 1995 No. 95-48

Council Background

The Minnesota Indian Affairs Council was created by the Legislature in 1963. The Council membership consists of the elected tribal chair of the eleven reservations throughout the state, two at large members and several ex officio members representing state agencies. The Council advises the Legislature on the nature of tribal governments, the relationship of tribal governments to the Indian people of Minnesota, and on other Indian affairs issues. The Council administers the Indian Business Loan Program, which offers Minnesota-based Indians the opportunity to establish or expand a business enterprise in Minnesota by providing low-interest loan capital.

The current Minnesota Indian Affairs Council chair is Robert Peacock. The Council appointed Joseph Day as the new executive director on October 12, 1994. The Council maintains staff and office space in Bemidji and St. Paul.

Audit Areas and Conclusions

Our audit scope included payroll, consultant and professional/technical services disbursements, and the Indian Business Loan Program for the period July 1, 1991 through June 30, 1995.

The Minnesota Indian Affairs Council has established policies and procedures to ensure that payroll is properly authorized, adequately supported, and accurately recorded. The Council is adequately documenting and approving its time sheets and leave requests.

The Council has established policies and procedures to ensure that consultant and professional/ technical service contracts are properly authorized and that payments are adequately supported and accurately recorded. However, we noted that the Council did not establish a contract with a soil scientist. The Council encumbers its funds prior to incurring an obligation.

The Council has established policies and procedures to ensure that loans are properly authorized, processed, and recorded. The Council has properly recorded loan repayments and severed minerals taxes into the Indian Business Loan Fund. However, the Council does not promptly deposit receipts to the state treasury in accordance with Minn. Stat. Section 16A.275. The Council has not written off any delinquent loans.

 

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