Office of the Legislative Auditor - Financial Audit Division

Report Summary
Board of Behavioral Health and Therapy
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-28

Released October 23, 2008

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Conclusions

The Board of Behavioral Health and Therapy (board) did not have adequate internal controls to safeguard receipts and sensitive assets. However, the board generally had adequate internal controls to ensure that it accurately paid employees and vendors in accordance with management’s authorization, properly oversaw and authorized financial transactions, produced reliable financial information, and complied with finance-related legal requirements. It did not, however, review some key payroll reports.

For the items tested, the board generally complied with finance-related legal requirements over its financial activities. However, it did not always deposit receipts daily, as required by statute, or ensure compliance with statutory per diem provisions.

Key Findings

• The board did not adequately safeguard or promptly deposit its receipts and did not reconcile receipts to licenses issued.
• The board did not review key payroll output reports.
• The board did not have adequate inventory control for its fixed assets and sensitive items.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Compliance	July 1, 2004, through June 30, 2008
Programs Audited
Payroll Expenditure License Revenue	Other Administrative Expenditures

Background

The Board of Behavioral Health and Therapy was formed by 2003 legislation and began operations on December 4, 2003. In fiscal year 2006, the board was expanded to include the licensing of alcohol and drug counselors, which had previously been handled by the Department of Health. The board operates to promote quality and effective counseling services by ensuring that licensed counselors are qualified to perform their duties. The board operates under Minnesota Statutes 2007, chapters 148B, 148C, and 214 and Minnesota Administrative Rules 2007, chapters 2150 and 4747. It is classified as a health-related licensing board pursuant to Minnesota Statutes 2007, chapter 214.01. The board collects fees for applications, licenses, and other miscellaneous charges that it uses for operations.