Report Summary
Management Letter
Department of Public Safety
Fiscal Year Ended June 30, 1999
Key Findings and Recommendations:
- The Department of Public Safety did not ensure that deposits of motor vehicle taxes were entered accurately and timely into the state's accounting system. We calculated that the state lost the opportunity to earn at least $2 million in interest for fiscal years 1996 through 1999 as a result of delayed posting of receipts collected for motor vehicle taxes. We have included this issue is several prior audit reports and the department has made some improvements over the years. However, we recommended that the department analyze the deposit delays and work with the largest deputies to reduce the delay in recording receipts. The department should develop a cost/benefit analysis to determine the most cost-effective approach for processing and recording transactions. In addition, the department should ensure that receipts are recorded accurately. (Finding 1,
page 2)
- The department did not deposit interstate registration tax receipts daily, as required by Minnesota Statutes. The department received a large volume of payments in the month of February for taxes due in March. The department did not process and deposit these receipts promptly. We recommended that the department deposit funds within the statutory time frames or request an exemption from the requirements. (Finding 2, page 4)
Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally-funded programs. The scope of work in individual agencies is limited. During the fiscal year 1999 audit, our work at the Department of Public Safety focused on motor vehicle registration and excise taxes and three federal programs administered by the department. The department's response to our recommendations is included in the report.
