Office of the Legislative Auditor - Financial Audit Division

Except for the concerns discussed in our findings, we concluded the Department of Veterans Affairs had adequate internal controls over the activities we examined and complied with the legal requirements we tested.

• The department did not have sufficient procedures in place over employee access to the accounting system.
• The department did not complete annual performance evaluations for some employees as required by statute and other personnel policies and procedures.
• The department did not fully dispose of funds in its terminated guardian program.

• July 1, 2003, through June 30, 2007.

• Payroll and administrative expenditures
• Guardianship receipts and disbursements
• Grants administration

Agency Background:

The Department of Veterans Affairs was created in 1943 to serve the veterans of the armed forces of the United States, residing in Minnesota, and their dependents and survivors. The department acts as an advocate for state veterans to obtain benefits under the laws of the United States, the state of Minnesota, or any other state or governmental agency.

From fiscal years 2004 through 2006, the department’s annual appropriations ranged from $4.2 to $4.7 million. In fiscal year 2007, the appropriations increased by about $3 million to provide additional benefits, including the establishment of a higher education office and an online support center, to more veterans.