Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Arts Board

Selected Scope Financial Audit

For the Three Years Ended June 30, 1993

Objectives

Evaluate internal control structure: Grants and aids, administrative expenses, federal grant revenue and other revenue.

Test compliance with certain finance-related legal provisions.

Conclusions

We found one area where the internal control structure needed improvement:

• The board made errors in paying some invoices, did not properly document some payments, and did not adequately segregate purchasing functions.

We found four areas of noncompliance with finance-related legal provisions:

• The board incurred expenses to influence legislative action.
• The board's relationship with the Minnesota Arts Communicators, a professional organization, is unclear. It is unclear whether Minnesota Arts Communicators is a separate organization or a board project.
• The board incorrectly deposits mail receipts, refunds, and reimbursements to its gift account.
• Prior finding not resolved: the board maintains excessive cash balances in its federal accounts.