Report Summary
Metropolitan Sports Facilities Commission
Financial Audit
For the Year Ended December 31, 1993
| Public Release Date: September 14, 1994 |
No. 94-49 |
Objectives
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Assess Internal Control Structure: Cash and investments, operating
revenue, operating expenses, payroll, and fixed assets.
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Test Compliance with certain Finance-Related Legal Provisions.
Conclusions
We found that the internal control structure provided commission
management with reasonable assurance regarding the safeguarding of
assets and the proper execution and recording of transactions.
We found four issues that affected compliance with finance-related
legal provisions:
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The commission did not comply with the requirements of Minn. Stat.
Section 118.01, subd. 2 for having sufficient collateral for its
bank deposits on 37 days during the year.
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The commission improperly allowed a former employee to accrue sick
and holiday pay, resulting in an overpayment of $1,288 to the
employee.
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The commission did not publish its audited financial statements by
April 30, 1994, as required by the covenants of its Indenture of
Trust. The trustee approved a short-term extension of this
deadline, and the commission published its audited financial
statements on May 16, 1994.
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In the course of studying its investment practices, the commission
learned that two of its investments potentially did not meet the
standards for legally permitted investments. The commission has
since liquidated those two investments, with a negligible effect
on net income.
Finally, during the course of our audit fieldwork, it was discovered
that a commission employee had filed fraudulent payment documents
totaling approximately $11,000. The commission has terminated the
employee and referred the matter to the Minneapolis City Attorney's
Office for possible criminal prosecution.
