Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Finance

 

Financial Audit Division Report 05-19 Released March 17, 2005

Key Audit Conclusions:

  • We issued an unqualified audit opinion on the State of Minnesota's basic financial statements for the year ended June 30, 2004.
  • We also prepared reports on the state's internal control and compliance over financial reporting and its administration of federal programs. These reports will be included in the Department of Finance’s Financial and Compliance Report on Federally Assisted Programs to be issued in March 2005.
  • As part of our audit, we gained an understanding of the internal controls and organizational structure of the Treasury Division and its integration into the Department of Finance. We did not have any findings or recommendations pertaining to the Treasury Division.

Key Findings:

  • The Department of Finance had some weaknesses in its process for reporting capital equipment amounts in the financial statements. As a result of an error in its process, the department made adjustments of $3.7 million to correct initial equipment balances. The department needs to improve its coordination with other state agencies to ensure it reports correct capital equipment amounts.
  
  • The Department of Finance did not provide complete and accurate preliminary budgetary information for the state's financial statements.
  • The Department of Finance did not accurately measure and report the state’s compensated absences liability for state workers.
The audit report contained three findings concerning controls over the financial reporting process. The department resolved the three findings contained in our last audit report.


Background Information:

The Department of Finance is responsible for preparing the state's basic financial statements. The department also has certain statewide financial management responsibilities relating to cash and debt management, payroll, and administration of the state's accounting system.

More Information

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