Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Minnesota Veterans Home in Minneapolis

Special Review

 

Financial Audit Division Report 11-28 Released December 1, 2011

Conclusion

The resident accounting records at the Minnesota Veterans Home in Minneapolis showed evidence of possible financial wrongdoing. For the period from January 2010 through June 2011, approximately $6,800 of documented receipts from 20 residents did not trace to bank deposits or resident accounting records. In addition, the home’s resident accounting records showed delays in recording approximately $16,500 of resident receipts, which could be an indication of fraud.

The Minnesota Veterans Home in Minneapolis did not have adequate internal controls to ensure that it safeguarded resident funds and accurately recorded resident account financial activity in its accounting records.

Key Findings

  • The Minnesota Veterans Home in Minneapolis did not deposit and record in its residents’ accounts approximately $6,800 received from residents by the business office. In addition, there were delays in depositing and recording $16,500 of other receipts, possibly indicating fraud.
  • The Minnesota Veterans Home in Minneapolis did not establish effective controls to mitigate the increased risk that error or fraud could occur without detection because of the cashier’s incompatible duties.

Audit Objective and Scope

Our special review of the cashiering function and resident receipt activity at the Minnesota Veterans Home in Minneapolis covered the period from January 2010 through June 2011 and included internal controls over receipts for residents’ accounts. During the period from January 2010 through June 2011, the home recorded approximately $10.5 million as received on behalf of its residents. This was not a complete review of all financial activities at the Minnesota Veterans Home in Minneapolis.

More Information

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