Minnesota Office of the Legislative Auditor
Financial Audit Division

Menu

Minnesota Office of the Legislative Auditor Menu

Report Summary
State Agricultural Society

Financial Audit For the
Year Ended October 31, 1996

 

Public Release Date: March 27, 1997 No. 97-16

Agency Background

The State Agricultural Society operates under Minn. Stat. Chapter 37. The Minnesota State Agricultural Society Board of Managers administers the operation of the annual State Fair exposition and the maintenance of the fairgrounds. Mr. Mike Heffron served as the executive vice president of the society until his retirement in January 1997. The board appointed Mr. Jerry Hammer as the new executive vice president on January 19, 1997.

Financial Highlights

At October 31, 1996, the State Agricultural Society reported net income of $603,666. The society generated $20,065,202 in revenues during the fiscal year, including both fair-time and non-fair event revenues. The society had total assets of $21,405,878 as of October 31, 1996.

Objectives

The audit objectives were to:

  • issue an audit opinion on the society's financial statements
  • evaluate internal control structure of the society
  • test compliance with significant finance-related legal provisions

Conclusions

We issued an unqualified opinion on the society's financial statements. We concluded that the financial statements were fairly stated in compliance with generally accepted accounting principles.

We found two issues affecting the society's internal control structure and its compliance with finance-related legal provisions:

  • The society should improve controls over the revenue collected from the state fair's carnival ticket sales.
  • The society did not account for the required match of foregone sales tax for capital improvements during fiscal year 1996.

 

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