Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Health

 

Financial Audit Division Report 04-26 Released June 17, 2004

Key Findings:

  • The department charged salaries to some state and federal programs without documenting that the employees were actually working on those programs. The department also moved payroll costs between programs after the fact, without sufficient support.
  • The department did not keep incoming license fees safe until they were deposited and did not make sure that all license receipts got deposited.

Other Findings:

  • Several department employees can change both personnel and payroll data, which does not provide for an adequate separation of these duties.
  • The department did not make grant applicants send in documents showing that they used competitive bidding to select hospital improvement contractors. State law requires the department to ask for this documentation.

The report contained a total of 4 findings relating to internal control and legal compliance. None of the findings were prior issues.
   Audit Scope:

Audit Period:
The three years ended June 30, 2003

Programs Audited:
  • Grant Expenditures
  • Payroll Expenditures
  • Selected Licensing Receipts:
    - Healthcare-Related Facilities
    - Service Agencies

Agency Background:

The Department of Health administers several large state and federal programs for health promotion, disease prevention and control, and facility and provider compliance. During the audit period, the department spent over $1 billion, with about 42 percent ($414 million) for grants and about 22 percent ($236 million) for payroll costs.

More Information

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