Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
State Agricultural Society
Financial Statement Audit

 

Financial Audit Division Report 09-21 Released June 4, 2009

Conclusion

  • The State Agricultural Society’s (society) financial statements for the two years ended October 31, 2008, were presented fairly in accordance with generally accepted accounting principles in all material respects.
  • Generally, the society’s internal controls for selected financial operations were adequate, and the society complied with finance-related legal requirements. However, the fair had one control weakness that resulted in noncompliance with a bond covenant.
  • The society implemented the prior audit recommendation by improving its monitoring of receipts from the Minnesota State Fair Foundation.

Finding

  • The State Agricultural Society did not comply with a requirement in the bond covenant for its 2003 revenue bonds; it under-funded its debt service account by $107,161.

Audit Objectives and Scope

Audit Objectives:

  • To give an opinion on the society’s financial statements.
  • To review internal control and compliance with financial-related legal requirements over material financial operations.
  • To determine the status of a prior audit recommendation.

Audit Period: The two years ended October 31, 2008.

Programs Audited:
  • Cash and Cash Equivalents
  • Revenue Bond and Note Liabilities
  • Entertainer Payouts and Other Expenses
  • Capital Assets
  • Ticket Sales
  • Payroll Expense

Background

The State Agricultural Society operates Minnesota’s annual state fair and maintains the state fairgrounds. The society had a profit of about $900,000 for the year ended October 31, 2008 and had total assets of nearly $55 million at year-end.

More Information

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