Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit Report

Board of Water and Soil Resources

Three Fiscal Years Ended June 30, 2000

Overall Conclusion:

The Board of Water and Soil Resources properly safeguarded assets and accurately recorded receipts and expenditures in the state's accounting and payroll systems. Except for the per diem issue noted below, the Board of Water and Soil Resources was in compliance with applicable finance-related legal provisions and policies.

Key Findings:

• The board did not adequately segregate duties over the recording of easements in the accounting system. One individual is responsible for requesting vendor numbers, recording easement payments in MAPS, and adjusting amounts in the internal easement database.
• The board needs to improve controls over the cost-share grant to ensure an independent review of grant expenditures, that unencumbered grant funds are timely returned, develop a written policy for award calculations, and determine necessity of any adjustments to incorrectly calculated awards made during fiscal years 1998-2000.
• The board did not submit reimbursement requests to organizations requesting federal funds in a timely manner.
• The board inappropriately paid per diems totaling $1,595 to an ineligible board member.

The Board of Water and Soil Resources operates pursuant to Minn. Stat. Section 103B. The board's primary purpose is to assist local units of government in managing water and soil resources. The board provides technical, administrative, and financial assistance to these local units of government.

Agency Response:

The Board of Water and Soil Resources' response to the findings and recommendations is included with the report.

Financial Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our audit work at the Board of Water and Soil Resources included payroll, travel, other administrative expenditures, easements, grants expenditures, and grants revenues for the period from July 1, 1997, through June 30, 2000.