Skip to main content Skip to office menu Skip to footer
3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Administration
Arts and Cultural Heritage Fund Grant Expenditures

 

Financial Audit Division Report 15-15 Released November 20, 2015

Background

The Office of the Legislative Auditor conducted this audit to determine whether the Department of Administration had adequate internal controls to monitor its grant programs and complied with applicable legal requirements when spending money from the Arts and Cultural Heritage Fund. We audited the department’s grant expenditures from the Arts and Cultural Heritage Fund from July 1, 2012, through February 28, 2015.

The Arts and Cultural Heritage Fund is one of the four funds created when voters approved the “Legacy Amendment” to the Minnesota Constitution in 2008. The amendment increased the state’s sales tax by three-eighths of 1 percent for 25 years and dedicated 19.75 percent of the additional revenue to the Arts and Cultural Heritage Fund.

For fiscal years 2013, 2014, and 2015, the Legislature appropriated over $27 million from the Arts and Cultural Heritage Fund to the Department of Administration. As of February 28, 2015, the department had spent about $24.3 million from these appropriations.

Conclusion

The Department of Administration had generally adequate internal controls to monitor its Arts and Cultural Heritage Fund grants. However, the department did not adequately ensure its grant recipients complied with the Arts and Cultural Heritage Fund appropriation laws.

The department partially resolved the prior audit finding by conducting monitoring visits for grants over $50,000; however, for one grant recipient, the department did not conduct an effective financial reconciliation by the end of the grant period, as required by the state grants management policy.1

Findings

  • The Department of Administration did not adequately monitor its Arts and Cultural Heritage Fund grant recipients.

1 Office of the Legislative Auditor, Financial Audit Division Report 12-21, Minnesota Department of Administration (St. Paul, MN, October 25, 2012).

More Information

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : legislative.auditor@state.mn.us or 651‑296‑4708