Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Trade and Economic Development

Programs Selected for

Fiscal Year 1995 Statewide Audit;

 

Public Release Date: March 1, 1996 No. 96-09

Agency Background

The Department of Trade and Economic Development (DTED) is Minnesota's principal economic development agency. The department's mission is to facilitate an economic environment that produces new job growth in excess of the national average, and to increase nonresident tourism revenues. DTED's primary goal is to promote the state's economic climate in both metropolitan and outstate economies.

Audit Objectives and Scope

The primary objective of the Statewide Audit is to render an opinion on the State of Minnesota's financial statements. These financial statements are included in Minnesota's Comprehensive Annual Financial Report for fiscal year 1995. Our objectives included determining whether the state's financial statements present fairly its financial position, results of operations, and changes in cash flows in conformity with generally accepted accounting principles. As part of our work we were required to gain an understanding of the internal control structure and ascertain whether the state complied with laws and regulations that may have a material effect on its financial statements.

The Statewide Audit is also designed to meet the requirements of the Single Audit Act of 1984, relating to federal financial assistance programs. The Single Audit Act requires us to determine whether the state has internal accounting and control systems to provide reasonable assurance that it is managing federal financial assistance programs in compliance with applicable laws and regulations, and to determine that the state complied with material rules and regulations.

The financial activities administered by the Department of Trade and Economic Development that we included in our audit scope were: Community Development Block Grant (CFDA #14.228) revenues and expenditures; cash, investments, loans receivable, and bonds payable of the Agriculture and Economic Resources Development Board; and Building Fund expenditures representing state match for the Water Pollution Control Revolving Account (CFDA #66.458).

Conclusions

The State of Minnesota's Comprehensive Annual Financial Report for the year ended June 30, 1995 includes our audit opinion dated December 1, 1995. In addition, the compliance section of the Minnesota Financial and Compliance Report on Federally Assisted Programs for the year ended June 30, 1995 will include our reports on the supplementary information schedule of federal financial assistance, the internal control structure, and compliance with laws and regulations. We anticipate issuing that report in June 1996.

 

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