Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Administration

Financial Audit For the
Fiscal Year Ended June 30, 1996

 

Public Release Date: February 21, 1997 No. 97-11

Background

The Department of Administration provides a variety of business management and administrative services to state and local government agencies. The department consists of 5 bureaus and 22 divisions. Its programmatic areas include the InterTechnologies Group, the Operations Management Bureau, the Facilities Management Bureau, the Information Policy Office, the Administrative Services Bureau, and the Management Analysis Division. Ms. Elaine Hansen serves as the commissioner of the department.

Audit Scope and Conclusions

Our audit scope was limited to those activities material to the state of Minnesota's Comprehensive Annual Financial Report for the year ended June 30, 1996.

We concluded that InterTechnologies Group's computer services fee revenue, telecommunications fee revenue, fixed assets, professional and technical services expenses, computer and system services expenses, and network services expenses, as reported in the state's financial statements, are fairly stated in compliance with generally accepted accounting principles. However, we found that the InterTechnologies Group did not account for capital leases properly and did not pay all its invoices promptly.

In the Operations Management Bureau, we concluded that Central Stores net sales and cost of goods sold, PrintComm printing revenue, Risk Management insurance premium revenue, and Central Motor Pool fixed asset and vehicle rental revenue, as reported on the state's financial statements, are fairly stated in compliance with generally accepted accounting principles. However, we did identify one problem with the way Central Motor Pool recognizes new vehicle purchases on its financial statements.

Finally, in the Facilities Management Bureau, we concluded that Building Construction Division construction expenditures and Plant Management lease rental revenue, operating transfers, and utility expenses, as reported in the state's financial statements, are fairly stated in compliance with generally accepted accounting principles.

 

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