|Public Release Date: July 29, 1999||No. 99-40|
The Office of the State Auditor (OSA) was established by Article V of the State Constitution and operates under Minn. Stat. Chapter 6. Minnesota voters elect the State Auditor to a four-year term. Judith Dutcher, the current State Auditor, began her second term in January 1999. The State Auditor serves on the State's Executive Council, State Board of Investment, Land Exchange Board, Minnesota State Housing Finance Agency Board, Rural Finance Authority Board, Public Employees Retirement Association Board, and the Board of Government Innovation and Cooperation.
The OSA receives support for its operations in the form of state appropriations. Minn. Stat. Section 6.58 requires the OSA to bill audit clients for the costs of audits and examinations at a rate sufficient to cover the cost of its audits. The audit practice receipts collected from clients are deposited as nondedicated receipts in a special revenue fund account.
Our audit scope included a review of the Office of the State Auditor's appropriation, audit practice revenue, personnel services, and other administrative expenditures for the period from January 1, 1997, through December 31, 1998.
We concluded that the OSA appropriately managed its financial operations and ensured that its revenues and expenditures were accurately accounted for. The OSA spent its state appropriation within its appropriation authority.
We also audited the OSA's audit practice revenue obtained through reimbursements of OSA client audit costs. We concluded that the OSA properly billed for audit costs and properly processed and collected audit practice receipts. The State Auditor generated sufficient revenues to recover reimbursable audit costs.
In addition, we audited OSA expenditures including personnel services and other administrative expenditures. The OSA properly processed and recorded payroll transactions, and the transactions we tested complied with applicable legal requirements.
Other administrative expenditures we reviewed included rent, travel, and supplies and equipment. We verified the reliability of accounting procedures and accurate processing of these transactions. For the transactions tested, the OSA properly and accurately processed and recorded the expenditures.