Minnesota Office of the Legislative Auditor
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Report Summary


Management Letter

Department of Transportation

Fiscal Year Ended June 30, 2001


Key Findings:

As a result of audit procedures performed by our office and the Department of Transportation (MnDOT) Office of Audit, we identified various weaknesses in internal control and instances of noncompliance. For each finding, we recommended that MnDOT establish appropriate procedures or improve its oversight to ensure compliance with federal and state regulations. In addition, we recommended that the department eliminate charges to federal funds for project activities that do not comply with federal regulations. Areas of concern raised in MnDOT's internal audit report include:

  • MnDOT did not ensure compliance with federal and state reporting requirements for the removal and disposition of hazardous building materials.
  • MnDOT and Hennepin County engineers did not properly control lead paint residue removed from bridges.
  • MnDOT did not ensure an independent appraisal of quality assurance and quality control requirements for bituminous production for one of its projects.
  • MnDOT did not ensure contracts were properly executed prior to payment.
  • MnDOT did not follow or ensure compliance with certain contract permit requirements.
  • MnDOT should improve certain project oversight procedures. We identified various areas where departmental procedures were inadequate or ineffective.

Management Letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally funded programs. The scope of work in individual agencies is limited. During the fiscal year 2001 audit, our work at the Department of Transportation focused on state highway construction expenditures, grants for airport improvement, and grants to local governments for road construction and maintenance. We also reviewed local bridge and transit project disbursements, rail service improvement loan balances, and highway user tax transfers. Finally, we reviewed two federally funded programs administered by the department to determine whether the department complied with certain federal requirements. Our work on the federal programs was performed in conjunction with the MnDOT Office of Audit.

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