Report Summary
Department of Military Affairs
Financial Audit
For the Year Ended June 30, 1994
| Public Release Date: June 28, 1995 |
No. 95-27 |
Objectives
Evaluate internal control structure: Military construction, Army and
Air National Guard reimbursements (CFDA #12.000), payroll, and state
and federal administrative expenditures.
Test compliance with certain finance-related legal provisions.
Conclusions
We found one weakness in the internal control structure over
contracts:
-
The department needs to have all contracts approved by the
Attorney General or a delegate, fully obligate funds prior to
executing contracts, and keep copies of executed contracts on file
in the department.
We found two departures from finance-related legal provisions:
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The department inappropriately borrowed money from the Minnesota
State Armory Building Commission to purchase land to accommodate
an operations and maintenance shop.
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The department provides administrative services to STARBASE
Minnesota, Inc., a private non-profit corporation and grantee. The
department disbursed grant money in excess of the grantee's
immediate need. Also, STARBASE Minnesota, Inc. failed to obtain an
audit under the OMB Circular A-133.
