Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Veterans Home at Hastings
Internal Control and Compliance Audit

 

Financial Audit Division Report 09-32

Released September 24, 2009

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Conclusion

The Minnesota Veterans Home at Hastings (home) generally had adequate internal controls to 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. However, the home had some internal control and noncompliance deficiencies.

For the items we tested, the home generally complied with finance-related legal requirements for depositing cash receipts, calculating cost of care, processing certain payroll transactions, and executing contracts. However, the home did not consistently comply with certain finance-related legal requirements.

The home resolved three prior findings related to payroll, resident trust accounts, and gifts and donations.

Key Findings

• The home did not identify, analyze, and document its internal controls related to its business operations.
• The home did not accurately calculate the daily cost of care rate for fiscal years 2007 and 2008.
• The home did not have adequate controls to ensure that it maintained accurate records of amounts owed by residents.

Audit Objectives and Scope

Objectives	Period Audited
Internal controls Compliance	July 1, 2006, through March 31, 2009
Audited Areas
Resident Cost of Care Resident Accounts Gifts and Donations Lease Revenue	Payroll Expenditures Administrative Expenditures Canteen and Woodshop Revenue