Minnesota Office of the Legislative Auditor
Financial Audit Division

Menu

Minnesota Office of the Legislative Auditor Menu

Report Summary
Minnesota State Academies
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-31 Released November 26, 2008

Conclusions

The Minnesota State Academies’ internal controls were not adequate for payroll, receipts, and administrative expenditures. As a result, the academies were not able to ensure assets were safeguarded, employees and vendors were accurately paid in accordance with management’s authorizations, reliable financial information was produced, and activities complied with finance-related legal requirements.

For the items tested, the academies did not comply with finance-related legal requirements applicable to its financial activities.

Key Findings

  • The academies did not adequately fulfill financial management responsibilities to control certain activities and ensure compliance with state and agency policies.
  • The academies did not properly monitor grant revenue.
  • The academies did not accurately bill independent school districts for services provided to students.
  • The academies did not adequately control approximately $1 million of receipts.
  • The academies did not review payroll reports or properly calculate some payroll transactions to ensure that it accurately paid its employees.

Audit Objectives and Scope

ObjectivesPeriod Audited
  • Internal Controls
  • Compliance
Fiscal Years 2005, 2006, and 2007
 
Programs Audited
  • Payroll and Related Expenditures
  • Selected Administrative Expenditures
  • Bank Account and Imprest Cash Activity
  • Selected Receipts
  • Student Account Activity
  • Grant Revenue Activity

Background

The Minnesota State Academies are public schools that provide and support education and services to students from birth to age 21 who are deaf, hard of hearing, blind, or visually impaired, including those with multiple disabilities. The academies (the Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind) are located in Faribault, Minnesota.

More Information

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