Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Minnesota Veterans Home - Minneapolis

Full Scope Financial-Related Audit
For the Three Years Ended June 30, 1998

 

Public Release Date: July 2, 1999 No. 99-33

Background Information

The Minneapolis Veterans Home was founded in 1887 and is one of five veterans homes under the general direction of the Minnesota Veterans Home Board. The Minneapolis Veterans Home provides domiciliary care and skilled nursing care for veterans and their spouses who meet eligibility and admission requirements. Mr. Thomas Mullon, the home's administrator since November 1996, is responsible for the daily management of the home.

Audit Areas and Conclusions

Our audit scope included resident maintenance fees, federal per diem reimbursements, payroll, resident trust accounts, selected operational expenditures, and designated contribution receipts and disbursements. We designed our audit to provide reasonable assurance that the home complied with the provisions of laws and rules.

We noted that the home inaccurately calculated its cost of care for fiscal years 1997 and 1998, resulting in undercharges for a limited number of residents. The home properly determined, collected, safeguarded, deposited, and recorded resident maintenance fees and federal per diem reimbursements. However, the home did not reconcile deposits in the state depository account to transactions recorded on the state's accounting system. The home also adequately monitored and pursued its accounts receivable.

The home adequately supported, approved, and reported employee and resident payroll expenditures and operational expenditures for supplies, materials, equipment, and services. In addition, the home accurately recorded resident account financial activity and designated contribution receipts and disbursements in the accounting records. However, the home did not always receive designated contribution receipts in the cashier's office or deposit those receipts in a timely manner. Finally, the home has not conducted a complete physical inventory of its fixed assets for at least five years.

For the transactions tested, the home complied with bargaining unit agreements, applicable finance-related legal provisions, and resident authorizations.

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