| Public Release Date: June 25, 1999 | No. 99-31 |
The Minnesota Amateur Sports Commission was created in 1987, pursuant to Minn. Stat. Chapter 240A. According to its mission statement, the purpose of the Minnesota Amateur Sports Commission is to "evaluate the social and economic benefits of sports to enrich the lives of all Minnesotans." The commission consists of twelve voting members and four nonvoting members. The commission membership must have four members experienced in promoting amateur sports. Paul Erickson was appointed as the commission's first executive director in September 1987 and continues to serve in that capacity.
We have conducted a financial related audit of the Minnesota Amateur Sports Commission for the period from July 1, 1995, through June 30, 1998. Our audit scope included general financial management, grant expenditures, payroll, and other administrative expenditures.
We have concerns with how well the commission documented its relationships with affiliated organizations. The commission's agreement with the National Sports Center Foundation did not define the commission's responsibility to pay the foundation for utilities and other indirect costs. In addition, the commission did not have contracts with two of its affiliated organizations.
The commission's largest area of financial activity is grant expenditures. We found that the commission properly recorded its grant activity in the state's accounting system and complied with the applicable finance-related legal provisions. In payroll and other administrative expenditures, we noted some weaknesses. The commission did not have adequate separation of duties over these key financial functions. It also did not maintain documentation for certain of its financial transactions. The commission did not consistently comply with the provisions of its bargaining agreements. The commission made three payroll errors, resulting in over and underpayments. In addition, the commission did not record compensatory time earned and taken on the payroll system. The commission did not properly code certain information on the accounting system and did not adequately account for its fixed assets. Finally, the commission did not consistently comply with the state policy when it reimbursed employees for mileage costs.
In its response, the commission indicated that it plans to implement the recommendations in the report in a timely manner.
