|Public Release Date: February 27, 1998||No. 98-09|
The State Treasurer is a constitutional officer elected by the citizens of the state to a four-year term. Michael A. McGrath has served as State Treasurer since January 1987. The Office of the State Treasurer provides banking services for most state agencies. This function includes cash control, receipt processing, and warrant redemption. In addition, the office makes debt service payments on outstanding general obligation bonds and collects various fees and assessments transmitted from county units of government. The State Treasurer also serves as a member of the State Board of Investment, the Minnesota State Retirement System Board, and the Executive Council.
Our work in the Office of the State Treasurer is completed as part of our annual Statewide Audit. Our audit scope focused on those areas material to the state of Minnesota's financial statements, including state depository cash control and debt service expenditures. In addition, we expanded our audit scope beyond Statewide Audit objectives to review Office of the State Treasurer revenue collections and administrative expenditures for fiscal year 1997.
We concluded that internal controls over the areas reviewed provide reasonable assurance that assets were adequately safeguarded and that transactions were authorized and properly reported in the accounting records. We also concluded that the office complied with material legal provisions related to the areas reviewed. However, the Office of the State Treasurer needs to provide for the appropriate disposition of unused frequent flyer benefits.
The State Treasurer's response to the audit report is included in the report.