Minnesota Veterans Home - Minneapolis
Internal Control and Compliance Audit
Financial Audit Division Report 08-32
Released November 26, 2008
The Minnesota Veterans Home - Minneapolis (home) did not adequately manage its financial responsibilities. The home did not have adequate internal controls over resident cost of care, resident trust accounts, gifts and donations, and payroll and administrative expenditures. As a result, the home did not ensure it safeguarded assets, accurately paid employees or vendors in accordance with management's authorizations, produced reliable financial information, and complied with finance-related legal requirements.
For the items we tested, the home did not consistently comply with finance-related legal requirements for depositing cash receipts and soliciting vendor bids. The home did not resolve six of eight prior audit findings related to resident cost of care, resident accounts, and payroll and administrative expenditures.
- Minnesota Veterans Home - Minneapolis did not fulfill its financial management responsibilities to control its financial activities and ensure that transactions complied with state requirements and internal policies.
- Prior Finding Not Resolved: The home did not adequately safeguard its receipts.
- Prior Finding Not Resolved: The home did not reconcile its internal accounting systems to the state's accounting system or to bank statements.
- Prior Finding Not Resolved: The home did not adequately restrict employees' access to the accounting systems.
- Prior Finding Not Resolved: The home did not adequately manage its employee overtime costs.
- The home did not adequately manage its personnel function.
- The home did not adequately manage its fixed assets.
- The home's pharmacy did not adequately manage its noncontrolled prescription drugs and other pharmaceutical supplies.
- The home did not require employees to account for cash advanced from the gift and donation account for resident recreational activities.
Audit Objectives and Scope
- Internal Controls
Fiscal Years 2005 through 2007
(July 1, 2004, through June 30, 2007)
- Resident Cost of Care
- Resident Accounts
- Gifts and Donations
- Payroll Expenditures
- Administrative Expenditures