Minnesota Office of the Legislative Auditor
Financial Audit Division

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Minnesota Veterans Home Board
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-33 Released November 26, 2008

Conclusions

Generally, the Minnesota Veterans Home Board (the board) accurately recorded its financial activities in the state’s accounting systems and accurately paid employees and vendors in accordance with management’s authorizations. However, the board did not sufficiently review certain payroll and travel expense reimbursements and did not actively monitor its fixed assets.

For the items we tested, the board generally complied with finance-related legal requirements over its financial activities. However, the board did not comply with certain requirements related to some travel and overtime payments.

Key Findings

  • The board reimbursed the interim executive director for ineligible travel expenditures and provided inappropriate compensation for personal time related to an out-of-state conference that resulted in an overpayment of $161.
  • The board did not adequately manage one employee’s overtime pay, resulting in an overpayment of $129.
  • The board did not have accurate fixed asset inventory records to ensure a complete transfer of assets to the Department of Veterans Affairs.

Audit Objectives and Scope

ObjectivesPeriod Audited
  • Recording Financial Activity
  • Safeguarding Assets
  • Compliance
Fiscal Years 2005 through 2008
(July 1, 2004, through June 30, 2008)
 
Programs Audited
  • Payroll Expenditures
  • Administrative Expenditures

Background

The Minnesota Veterans Home Board provided management oversight for the operations of the five veterans homes in Minnesota. The board consisted of nine members appointed by the Governor and included representatives from the health care field and veterans organizations. In November 2007, the Governor abolished the board and transferred its responsibilities to the Minnesota Department of Veterans Affairs. In fiscal year 2007, the last complete fiscal year the board operated, it spent about $950,000 for payroll costs and $460,000 for other administrative costs.

More Information

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