Selected-Scope Financial Audit Report
Department of Corrections
Three Fiscal Years Ended June 30, 1999
The Department of Corrections' internal controls provided reasonable assurance that assets were safeguarded, expenditures were accurately recorded in the state's accounting and payroll systems, and financial transactions complied with applicable finance-related legal requirements and management's authorization.
The audit report contained four findings with recommendations for improvement.
- The department did not promptly cancel accounting system access for six staff who terminated employment or transferred to other facilities. We recommended their access rights be immediately cancelled. (Finding 1, page 7)
- Three facilities did not independently verify payroll transactions entered into the payroll system. Separation of duties was recommended to provide for independent scrutiny. (Finding 2, page 11)
- The Minnesota Correctional Facility-Lino Lakes overpaid one employee $9,873 due to incorrect input of a special payment transaction. We recommended the department seek reimbursement of the overpayment and work with the Attorney General's Office to ensure recovery of funds. (Finding 3, page 12)
- Finally, we found the department lacked documentation to support its decision to renegotiate a central contract for inmate medical services. The department anticipated costs savings under a managed care contract; however, a renegotiated contract required a 10 percent price increase per inmate. Improved documentation was recommended to support its decision making and selection of contractors. (Finding 4, page 16)
Financial Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our audit work at the Department of Corrections' central office and facilities included financial management and budget controls, payroll, and administrative and operating expenditures. This has not been a comprehensive audit of the Department of Corrections. The department's response is included in the report.