Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Explore Minnesota Tourism

 

Financial Audit Division Report 07-28 Released  November 1, 2007

Conclusion:

Financial controls at Explore Minnesota Tourism were generally adequate, and the office complied with most of the legal requirements we tested.  However, our report contains six findings related to inadequate controls or noncompliance.


Findings:

  • The director of Explore Minnesota Tourism is not required to file an economic interest statement like appointed commissioners or directors of similar agencies in state government.
  • Explore Minnesota Tourism did not effectively safeguard receipts and did not comply with statutory prompt deposit requirements.
  • Explore Minnesota Tourism staff had incompatible access to the accounting system, and too many staff from another state department had unnecessary access to the office’s personnel and payroll information.
  • Explore Minnesota Tourism did not apply contract retainage requirements to two large professional/technical contracts.
  • Explore Minnesota Tourism inappropriately reimbursed grantees for expenses that were not promptly submitted, and Film Jobs Production Program grants were not promptly processed.
   Audit Scope:

Period Audited:
Fiscal Years 2005, 2006, and 2007

Activities Audited:
  • Statutory Appropriation Match
  • Promotions and Other Receipts
  • Payroll and Administrative Expenditures
  • Grants
  • Film Jobs Production Program

Agency Background:

Effective July 1, 2004, the Legislature created Explore Minnesota Tourism as an executive branch office to promote and facilitate increased tourist travel to and within Minnesota. The office was previously a division of the Department of Employment and Economic Development. Besides its General Fund appropriations of $11.4 million, Explore Minnesota Tourism collected receipts of $1.1 million and incurred expenditures of $10.5 million for fiscal year 2007.

More Information

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