Report Summary
Financial-Related Audit
Minnesota Center for Crime Victim Services
July 1, 1998, through December 31, 2000
Current Findings and Recommendations:
- The center reimbursed grantees for costs incurred before encumbering the funds. Some grantees incurred costs for various grant programs prior to signing the grant agreement.
- The center did not use good business practices in managing state and federal cash disbursements to its grantees. The center did not minimize the time elapsing between the advancing of funds to its grantees and the disbursement of the funds. The center advanced up to 25 percent to its grantees for some programs. We also found instances where the center exceeded the maximum payment amounts stipulated in its grant agreements.
- Grantees did not comply with certain reporting requirements contained in the grant agreement. We found that some grantees did not submit their Financial Status Reports in a timely manner. Also, some grantees did not submit budget amendments within the required time period. Finally, some grantees did not submit their grant close out reports in a timely manner.
- The center did not properly monitor the grantees' financial activities. The center did not conduct timely site visits of the grantees or verify financial information. Also, the center did not receive required audit reports of the grantee's operations.
- Finally, the center did not properly track the time spent by its staff on various grant programs. In order to receive federal reimbursements for payroll costs charged to federal programs, staff must document the time spent on each program. The center did not monitor the actual hours staff worked on each program; instead, the center estimated the time spent and received reimbursements based on these estimates.
Background:
The Minnesota Center for Crime Victim Services coordinates and delivers services to crime victims and crime victim programs throughout the state. The center has undergone several reorganizations in recent years through various executive orders. The center is currently a division of the Department of Public Safety. This audit focused on the two and one-half years ending December 31, 2000.
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 Minnesota Center for Crime Victim Services included payroll, grants, and claims.
