Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Accounts Receivable and Debt Collection Processes
Internal Controls and Compliance Audit

 

Financial Audit Division Report 11-25 Released November 10, 2011

Conclusion

The internal controls at the Department of Management and Budget were generally adequate to ensure that state agencies reported complete, prompt, and accurate accounts receivable information; however, the department did not always comply with its policies.

The internal controls at the Department of Revenue’s Collection Division were adequate to ensure it properly recorded, pursued, and deposited the collection of debt and remitted the correct amount of debt collected to the applicable funds and referring agencies.

Except for the Pollution Control Agency and the State Court Administrator’s Office, the internal controls at the state agencies we reviewed were generally adequate to ensure that they reported complete, prompt, and accurate accounts receivable information to the Department of Management and Budget.

Except for the Pollution Control Agency, all of the agencies we tested generally had adequate internal controls to ensure they pursued the collection of accounts receivable and submitted past due accounts receivable to the Department of Revenue’s Collection Division, as required by state policy.

For the items tested, except for the Pollution Control Agency, the agencies we tested generally complied with significant finance-related legal requirements. The Pollution Control Agency did not comply with significant finance-related legal requirements for the items tested.

The findings in our report further explain the exceptions noted above.

Key Findings

  • The Department of Management and Budget did not provide sufficient oversight and guidance to state agencies for their accounts receivables.
  • The Pollution Control Agency did not design, implement, and monitor fundamental internal controls over its receipts process.
  • The Pollution Control Agency did not properly record, document, and monitor its accounts receivables.

Audit Objectives and Scope

Objectives Scope
  • Internal controls
  • Legal Compliance
  • Accounts receivable and collection
    functions for several state agencies from
    July 1, 2008, through December 31, 2010
More Information

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