Financial Audit Report
Key Findings and Recommendations:
The Office of the State Treasurer did not promptly detect that its allocation of certain court surcharge receipts did not comply with statutory provisions. As a result, the office recorded surcharge receipts in error from January 1999 through December 1999, and the Peace Officers Standards and Training Board did not receive its proper share of receipts until the problem was corrected in February 2000. We recommended that the Office of the State Treasurer periodically review its allocation of county level receipts to ensure compliance with statutes.
The State Treasurer is a constitutional officer elected by the citizens of the state to a four-year term. Carol Johnson has served as State Treasurer since January 1999. During the November 1998 election, the voters of the state of Minnesota approved a constitutional amendment abolishing the Office of the State Treasurer effective at the conclusion of Carol Johnson's current four-year term. 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 the 87 counties. The State Treasurer also serves as a member of the State Board of Investment, the Minnesota State Retirement System Board, and the Executive Council.
The Office of the State Treasurer agreed with the report's finding and is taking corrective action to resolve the issue.