Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Minnesota Partnership for Action Against Tobacco

For the Period September 21, 1998, through December 31, 2000

Overall Conclusions:

The Minnesota Partnership for Action Against Tobacco (MPAAT) established policies and procedures consistent with the intent of the court-approved plan of administration, its articles of incorporation, and its bylaws. It also operated within available resources and in compliance with its authorized budget. MPAAT properly recorded its financial activities on the accounting system.

Key Findings and Recommendations:

• MPAAT did not adequately secure the balance in its checking account. MPAAT should manage the cash flow in its checking account or establish additional collateral pledges with its bank.
• MPAAT did not retain reviewer scoring sheets to support recommendations to the board for funding grant proposals. Individual reviewer's scoring sheets should be kept to support the funding decisions made.
• MPAAT needs to improve controls over reviewer honorariums and expenses. Program managers should approve honorarium payments. Expense reports should only be approved for payment if required receipts are attached.
• MPAAT did not properly authorize or document some of its administrative expenditures. MPAAT should authorize all invoices for payment and ensure there is adequate supporting documentation on file.

The Minnesota Partnership for Action Against Tobacco was incorporated as a Minnesota non-profit corporation on September 21, 1998, under Minn. Stat. Chapter 317A. MPAAT was created with a limited 25-year life. Its mission is to reduce the harm that tobacco causes the people of Minnesota. MPAAT is under the direction of a 21-member board of directors. MPAAT's operations are funded through the tobacco settlement and associated investment earnings. MPAAT's goal within its 25-year life is to transform the social environment through intervention and research to reduce tobacco use in Minnesota to less than ten percent by the year 2023.

Financial Related Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments, agencies, and other entities for which we have audit jurisdiction. The scope of our audit work at the Minnesota Partnership for Action Against Tobacco included financial management, investments, grants, payroll, and other administrative expenditures.