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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Board of Accountancy

Financial Audit

For the Three Years Ended June 30, 1994


Public Release Date: June 23, 1995 No. 95-30

Agnecy Background

The Board of Accountancy (board) exists to protect the public by ensuring that individuals practicing public accounting meet and maintain the qualifications, standards, and professionalism required to competently practice public accounting in Minnesota. The board of directors consists of five certified public accountants (CPA), two licensed public accountants (LPA), and two public members. The board meets about eight times a year. Statutes mandate that the board certify, license, and regulate CPA and LPA individuals and firms. The board appoints an executive secretary who is its chief administrative officer. The executive secretary directs the board's professional staff in accordance with its policies. Ms. Pam Smith was the executive assistant through August 1992. The board appointed David O'Connell, who is the current executive secretary of the board, in September 1992.

The board finances its operations through appropriations from the State of Minnesota. It received annual General Fund appropriations ranging from $451,000 - $466,000 during the audit period. The board sets the fees it charges to recover its direct and indirect costs. The board deposits its receipts into the state's General Fund as nondedicated revenue.

Audited Areas and Conclusions

Our audit scope included employee payroll, administrative expenditures, and license and examination revenues for the period July 1, 1991, through June 30, 1994.

We audited the board's license and examination revenues. We concluded that the board charged the approved fees for examinations and licenses and set the fees to recover its direct and indirect operating expenses. However, the board needs to improve its control structure over receipts. Receipts were not adequately safeguarded until deposited and deposits were not made timely. In addition, the board did not retain documentation for out of state proctor fee receipts.

We also audited the board's expenditures for compliance with appropriations. The board spent its state appropriations within its appropriation limits and statutory authority. However, the board did not comply with certain employee reimbursement regulations. The board paid its employees at the proper amounts according to the respective bargaining unit agreements and/or board authorization. However, the board could improve its control over payroll and administrative expenditures by verifying detailed transaction reports.


Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708