Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Management and Budget
Federal Compliance Audit

 

Financial Audit Division Report 10-12 Released March 25, 2010

Conclusion

The Department of Management and Budget generally complied with and had controls to ensure compliance with certain provisions of laws, regulations, contracts, and grants applicable to the state’s administration of federal programs and the preparation of the Financial and Compliance Report on Federally Assisted Programs for fiscal year 2009. However, the state had deficiencies in its internal controls over the preparation of the Schedule of Expenditures of Federal Awards, in calculating and reporting general support service costs, and in protecting not public data within the state’s accounting system, as noted below.

Findings

  • Prior Finding Partially Resolved: The state’s procedures for preparing the Schedule of Expenditures of Federal Awards resulted in some significant misclassifications and other errors to the draft schedules.
  • The Department of Management and Budget did not always use correct projected costs when it calculated the statewide indirect cost charges and misreported certain cost information to the federal government.
  • The Department of Management and Budget did not adequately protect not public data on individuals maintained within the state’s information data warehouse.

Audit Objective and Scope

The objective of our audit was to determine whether the Department of Management and Budget complied with federal program requirements in its oversight and administration of the state’s federal programs, including the general compliance requirements related to federal assistance and preparation of the Schedule of Expenditures of Federal Awards for fiscal year 2009. This audit is part of our broader federal Single Audit objective to obtain reasonable assurance about whether the State of Minnesota complied with the types of compliance requirements that are applicable to each of its federal programs.

More Information

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