Office of the Legislative Auditor - Financial Audit Division
Financial Audit Report
Office of Environmental Assistance
Three Years Ended June 30, 1999
Key Findings and Conclusions:
The Office of Environmental Assistance (OEA) did not have adequate internal controls over Pollution Prevention fees collected by the Department of Public Safety's Emergency Response Commission. The duties related to the invoicing, collecting, and recording of these fees were not properly segregated. The OEA should ensure that alternate controls are in place to ensure the proper collection of its fees. Except for this issue, we concluded that the OEA properly collected, deposited, and recorded pollution prevention fees and loan principal and interest repayments.
We found that procedures for awarding and monitoring grants and loans were adequate, and the transactions were accurately recorded on the state's accounting system. Finally, we found the OEA had established policies and procedures to ensure that administrative expenditures were properly authorized, adequately supported, and accurately processed on the state's accounting system.
The mission of the Office of Environmental Assistance (OEA) is to protect Minnesota's environment and assure a sustainable economy through waste prevention and resource conservation. The Minnesota Waste Management Act (Minn. Stat. Chapter 115A) governs the agency's activities. The OEA provides technical and financial assistance to local governments, businesses, non-profits, and citizens to reduce pollution and manage waste. The activities of the OEA are financed mainly by legislative appropriations.
During the period of this audit, our work at the Office of Environmental Assistance focused on revenues, grants and loans, and administrative expenditures. The agency's response to our finding and recommendation is included in the report.