Report Summary
Financial-Related Audit
Council on Black Minnesotans
July 1, 1998, through December 31, 2001
Overall Conclusions:
The Council on Black Minnesotans did not appropriately administer its financial activities, properly safeguard public funds and assets, comply with material finance-related legal provisions, or properly record its financial activities in its accounting systems. We noted the following internal control and legal compliance areas where the council needs improvement.
Key Findings:
- The council did not record certain transactions properly in the accounting or make payments in a timely manner.
- The council did not formally delegate authority for certain council staff to sign documents in the executive director's absence. Also, a non-council employee incurred printing costs for the council.
- One employee may have received overpayments totaling $5,500 by submitting fraudulent claims for hours not worked. After the employee's supervisor signed the original timesheet, the employee altered the hours on the timesheet.
- The council did not review the payroll register report to ensure that payroll transactions were accurately entered on the State Employment Management System (SEMA4).
- The council inappropriately paid per diems totaling $1,430 to four board members and did not diligently pursue collection of the overpayments.
- The council did not administer its grants and contracts in compliance with applicable legal requirements or grant agreements.
- The council did not comply with the state's special expense policies and procedures.
Financial-Related Audits address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our work at the Council on Black Minnesotans included employee payroll and per diems, space rental, grants revenues and expenditures, contractual services, other operating costs, and selected administrative expenditures for the period July 1, 1998, through December 31, 2001.
