Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Peace Officer Standards and Training (POST) Board

Three Fiscal Years Ending June 30, 2000

Conclusions:

We found that the Peace Officer Standards and Training (POST) Board operated within its appropriated legal spending authority. The board's internal controls provided reasonable assurance that assets were safeguarded, revenues and expenditures were accurately recorded in the state's accounting and payroll systems, and financial transactions were in compliance with applicable finance-related legal requirements and management's authorization. However, we noted the following compliance issue and internal control weakness during our review.

Key Findings:

• The POST Board was not set up in the state's accounting system similar to other state boards or executive branch agencies. As a result, unexpended appropriations have continued to carry forward and did not cancel. At the end of fiscal year 1999, the board had accumulated and carried forward $262,567 into fiscal year 2000. This included $41,028 of unused grant appropriations from 1998 and 1999. While the POST Board has never increased its spending authority above that set by the Legislature for each fiscal year, the availability of this money could permit it to occur. We recommended that the board work with the Department of Finance to establish an appropriation account providing for carry forward of funds between fiscal years and cancellation of unexpended balances at the end of the biennium. We also recommended that the POST Board cancel its unexpended appropriations and transfer the money to the state's General Fund.
• The board also needs to improve control over license revenues and access to its licensing system. We recommended a comparison of licenses issued to revenues collected and restricted security access to its licensing system.

The Peace Officer Standards and Training (POST) Board is responsible for licensing and training peace officers in Minnesota. The board is funded by appropriations from the peace officer training account in the Special Revenue Fund. The account receives its revenues from surcharges on all moving traffic fines. The board received appropriations of $3,581,000, $3,801,000, and $4,339,000 for fiscal years 1998, 1999, and 2000, respectively. It also received General Fund appropriations of $148,000 in fiscal year 1998 and $300,000 in fiscal year 2000. The board's money is primarily used to provide grants to local law enforcement offices for peace officer training and education.

Financial-Related Audit Reports address internal control weaknesses and noncompliance issues noted during our audits of state departments and agencies. The scope of our audit work at the Peace Officer Standards and Training Board included financial management, grants, payroll and board per diems, and licensing and exam receipts.