Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Pollution Control Agency
Internal Control and Compliance Audit

 

Financial Audit Division Report 09-24

Released July 23, 2009

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Conclusions

Except for receipts, the Minnesota Pollution Control Agency generally had adequate internal controls to ensure that it safeguarded its financial assets, complied with finance-related legal requirements, and produced reliable financial data. The agency’s internal controls over certain receipts were not adequate due to several weaknesses.

The agency did not fully resolve four of ten prior audit findings.

For the items tested, except for the issues noted in this report, the agency complied with finance-related legal requirements over its financial activities.

Key Findings

• The Pollution Control Agency did not adequately monitor the effectiveness of its internal controls, as required by state policy.
• The Pollution Control Agency did not adequately safeguard certain receipts or manage related accounts receivable.
• Prior Finding Not Resolved: The Pollution Control Agency did not consistently reconcile receipts on its billing system to the state’s accounting system.
• Prior Finding Not Resolved: The Pollution Control Agency did not verify the accuracy of its payroll transactions.

Audit Objectives and Scope

Objectives	Period Audited
Internal controls and compliance Prior agency findings	July 1, 2006, through February 28, 2009
Audit Scope
Air emission, hazardous waste, and water quality receipts Payroll expenditures Equipment/fixed assets	Selected grant expenditures, including grants for county feedlot, clean water partnership, metro landfill, and recycling and waste reduction Allocation of operating costs to agency programs Landfill cleanup construction, operations and maintenance, and Superfund cleanup expenditures

 

Background

The Minnesota Pollution Control Agency operates under Minnesota Statutes 2008, Chapter 116. It establishes rules, issues permits, conducts inspections, and engages in other regulatory and educational activities to help protect human health and the environment. The agency manages accounts in the environmental, remediation, federal, miscellaneous special revenue, general, and other funds. During fiscal year 2008, the agency received $141 million in appropriations, collected receipts totaling $79 million, and disbursed $161 million for its operations and grants.