Office of the Legislative Auditor - Financial Audit Division

Report Summary

Department of Corrections

July 1, 1999, through June 30, 2002

This selected scope audit of the Department of Corrections focused on employee payroll, health and food service contracts, cell phone use and reimbursement, special expenses, and correctional industries' accounts receivable. We selected our scope based on materiality and an assessment of those transaction types more susceptible to error.

Key Findings:

• The Department of Corrections did not enforce contractual requirements for retainage and billing documentation.
• The department did not adequately control cell phone costs.
• The department did not ensure it complied with special expense requirements.

Agency Background:

The Minnesota Department of Corrections is a service and regulatory agency. It has a broad range of activities and responsibilities, including the operation of ten correctional facilities for adults and juveniles. The department has organized its operations into three divisions: adult facilities, community and juvenile services, and management services. The department also has units for investigations, correctional industries, and medical services. Additionally, volunteer citizen advisory groups assist the department in the areas of community corrections, women offender programs, and correctional industries. The department has over 3,900 employees.