|Public Release Date: May 19, 1999||No. 99-29|
The Board of Accountancy is established pursuant to Minn. Stat. Chapter 326. The board also operates under Minn. Stat. Chapter 214 which governs boards and commissions generally. By statute, the board is responsible for protecting the public by ensuring that individuals practicing public accounting meet and maintain the qualifications, standards, and professionalism required to competently practice public accounting in Minnesota. Statutes mandate that the board certify, license, and regulate certified public accountant (CPA) and licensed public accountant (LPA) individuals and firms. The board consists of five CPAs, two LPAs, and two public members. The board appoints an executive secretary who is its chief administrative officer. The board appointed Dennis Poppenhagen as executive secretary in January 1996.
The board finances its operations through General Fund appropriations. It received annual appropriations ranging from $474,000 to $572,000 during the audit period. The board sets the fees it charges to recover its direct and indirect costs. The board deposits the receipts into the state's General Fund as non-dedicated revenue.
Our audit scope included examination, license, and disciplinary fine revenues, employee payroll, and other administrative expenditures for the period July 1, 1994, through June 30, 1998.
We concluded that the board appropriately accounted for license, examination, and disciplinary fine revenues. The board charged the fees established in Chapter 1100 of the Minnesota Rules for licenses, fees, and examinations. The board did not, however, implement a prior audit recommendation to deposit receipts in a timely manner. However, the board implemented a new licensing system for the board's most recent renewal period which should improve the timeliness of deposits.
We also found that the board spent its state appropriations within appropriation limits and statutory authority. Payroll and other administrative expenditures, including rent and travel, were reasonable and complied with laws and regulations for the items tested.
The board agreed with the audit finding and believes its new licensing system will enable it to deposit receipts timely.