Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Department of Transportation
Internal Control and Compliance Audit

 

Financial Audit Division Report 10-30

Released September 16, 2010

---

Conclusion

The Minnesota Department of Transportation’s (MnDOT) central office did not have adequate internal controls to ensure that it safeguarded certain receipts, accurately recorded receipts in the accounting records, or properly managed employee use of state cell phones. The central office’s internal controls were generally adequate to ensure it reimbursed employees for travel expenses in accordance with finance-related legal requirements and management’s authorizations, and properly recorded those transactions in the accounting records; however, the department had some weaknesses in its controls to ensure that employees minimized some travel-related costs.

MnDOT’s Duluth district generally had adequate internal controls for the selected administrative expenditures to ensure that it accurately paid employees and vendors in accordance with management’s authorizations, complied with finance-related legal provisions, and created reliable financial data. However, the district had some weaknesses in these areas.

MnDOT’s central office and Duluth district generally complied with significant finance-related legal requirements; however, there were some specific instances of noncompliance related to protection of not public data, prompt deposits of receipts, and management of state-issued cell phones.

MnDOT partially implemented a prior audit recommendation – it improved its oversight of employee expense reimbursements but did not implement sufficient controls to adequately monitor employee cell phone use to ensure compliance with federal law and state and department policies.

Key Findings

• MnDOT’s central office did not assess the risks related to receipts and failed to implement fundamental internal controls in its receipt process.
• MnDOT’s central office did not adequately protect some not public data
• Prior Finding Partially Resolved: MnDOT’s central office did not have documentation to support evidence of employee and supervisory review of some of its cell phone expenses.

Audit Objectives and Scope

Objectives		Period Audited
Internal Controls and Compliance		July 1, 2008, through March 31, 2010
Audited Areas
Central Office: Selected Revenues		Cell Phone and Employee Expense Reimbursements
Duluth District: Supplies and Equipment		Payroll, Cell Phone, and Employee Expense Reimbursements