Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Veteran's Home - Hastings

Financial Audit

For the Three Years Ended June 30, 1993

Objectives

• Assess Internal Control Structure: Maintenance charge revenue, employee payroll, designated contribution revenue and expenditures, dedicated resource revenue and expenditures, and resident account revenues and expenditures.

• Test Compliance with certain Finance-Related Legal Provisions.

Conclusions

We found three areas where the internal control structure needed improvement:

• Recordkeeping for designated contributions need improvement, particularly to track donations designated for a specific purpose.

• An inadequate separation of duties exists for payroll processing.

• Internal procedures for assessing interest on delinquent maintenance accounts need improvement.

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

• The home inappropriately accumulated excess funds in its dedicated resources account and expended $228,000 on questionable projects. We have referred this issue to the Attorney General for resolution.

• The home improperly allowed private organizations to maintain funds in the state treasury.

• The home did not assess interest on delinquent maintenance accounts as provided by Minnesota Agency Rules.