Minnesota Office of the Legislative Auditor
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Report Summary
Department of Administration

Statewide Audit - Selected Audit Areas
For the Year Ended June 30, 1998

 

Public Release Date: January 8, 1999 No. 99-1

Background Information

The Department of Administration provides a variety of business management and administrative services to state and local government agencies. Its major programmatic areas include the InterTechnologies Group, the Operations Management Bureau, the Facilities Management Bureau, and the Technology Management Bureau. The department's funding sources include user fees, legislative appropriations, gifts, and federal grants. Ms. Elaine Hansen was the commissioner of the department during the audit period.

Selected Audit Areas 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, 1998. Our primary audit objective was to render an opinion on the State of Minnesota's financial statements. Our scope within the Department of Administration included InterTechnologies Fund sales revenues, purchased services expenditures, and fixed assets; Central Stores Fund sales revenues and cost of goods sold; PrintComm Fund sales revenue and cost of goods sold; Travel Management vehicle rental revenue and motor vehicles; Plant Management Fund lease revenue and purchased services expenditures; Risk Management Fund insurance revenue; and selected Building Construction Division project expenditures.

We qualified our report, dated December 1, 1998, on the State of Minnesota's Comprehensive Annual Financial Report because insufficient audit evidence exists to support the State of Minnesota's disclosures with respect to the year 2000. Similarly, we do not provide assurance that the Department of Administration is or will be year 2000 ready, that its year 2000 remediation efforts will be successful in whole or in part, or that parties with which the Department of Administration does business will be year 2000 ready.

For the areas audited, the Department of Administration's financial activities were fairly presented in the State of Minnesota's Comprehensive Annual Financial Report for the year ended June 30, 1998. As a result of our audit procedures, we identified one weakness in internal control and one instance of noncompliance with federal requirements, as follows:

  • The department made duplicate payments for certain printing jobs.

  • The department did not require federal certifications from vendors receiving awards for more than $100,000.
More Information

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