Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit

Minnesota Pollution Control Agency

Three Years Ended June 30, 2000

Key Findings and Conclusions:

In general, the Minnesota Pollution Control Agency (MPCA) designed and implemented internal controls that provided reasonable assurance that it properly collected and recorded the appropriate fee and restitution revenues in the accounting system. In addition, except for the miscoding of professional and technical services expenditures in 1998, the agency designed and implemented internal controls that provided reasonable assurance that operating expenditures were properly authorized, adequately supported, and accurately recorded on the state's accounting system. However, we noted the following internal control or compliance areas where the MPCA could improve its overall fee receipt and depositing procedures:

• Certain receipts were not adequately safeguarded and promptly deposited. The MPCA should log in and restrictively endorse checks when they are received. In addition, the agency should develop procedures to ensure that receipts in excess of $250 are deposited daily by the Fiscal Services Division in accordance with Minn. Stat. Section 16A.275.
• Duties relating to processing of restitution fees were not adequately segregated. The MPCA should develop procedures to ensure there is an independent reconciliation between the bank deposit and the amount posted to the accounts receivable records.
• The hazardous waste fee billing database was not reconciled to deposits in the state's accounting system. The MPCA should reconcile receipts posted to the hazardous waste billing database to deposits posted into the state's accounting system.

The mission of the Minnesota Pollution Control Agency is to help Minnesotans protect their environment. The agency assesses the state's environmental status, provides regulatory approvals, acts on complaint and enforcement resolutions, and implements strategies that will protect and enhance public health and the state's environment. Our audit scope included fee and restitution revenues, payroll expenditures, contractual services, travel, claims, and other operating expenditures.