Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Human Services
State Operated Services Division

 

Financial Audit Division Report 14-12 Released April 4, 2014

Conclusion

Internal controls over the financial activities at the Department of Human Services’ State Operated Services Division were generally adequate to ensure that it safeguarded its financial resources, accurately paid employees and vendors in accordance with management’s authorizations, and created reliable financial data. The Department of Human Services’ State Operated Services Division generally complied with significant finance-related legal requirements. However, they had some control weaknesses and compliance issues. The division resolved the prior audit findings related to this audit.

Audit Findings

  • The Department of Human Services’ State Operated Services Division did not adequately manage its business risks or monitor the effectiveness of its internal controls.
  • The Department of Human Services’ State Operated Services Division did not adequately document some high-risk payroll transactions.
  • The Department of Human Services’ State Operated Services Division did not complete physical inventories of fixed assets and sensitive items at the state operated facilities or update its inventory records for some purchases.
  • The Department of Human Services’ State Operated Services Division did not have documentation to support the authorization of two nonroutine transactions.
  • The Department of Human Services’ State Operated Services Division did not adequately separate incompatible duties in several key financial areas of its operations and had some other internal control weaknesses.
  • The Department of Human Services’ State Operated Services Division did not have policies and procedures to ensure it consistently verified client financial information it relied on to determine the client’s ability to pay for the cost of care received.
  • The Anoka-Metro Regional Treatment Center did not have a written contract with the organization that operated the canteen and had not monitored the canteen’s financial operations.

Audit Objectives and Scope

Objectives Period Audited
  • Internal controls
  • Legal compliance
July 1, 2010, through December 31, 2012
 
Programs Audited  
  • Payroll expenditures
  • Administrative expenditures
  • System security
  • Cost of care receipts
  • Resident accounts
More Information

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