Office of the Legislative Auditor - Financial Audit Division

Report Summary

Minnesota State Arts Board

July 1, 1998, through June 30, 2001

Key Findings and Recommendations:

The Minnesota State Arts Board's internal controls provided reasonable assurance that it properly recorded financial activities in the payroll and accounting systems. For the items tested, the board complied with finance-related legal provisions. However, we found that the board has not resolved three financial concerns raised in prior audits.

• The board continued to incorrectly deposit certain refunds, reimbursements, and miscellaneous receipts in the Gift Fund rather than a General Fund or Special Revenue Fund account. We recommended adjustments totaling $27,056 to correct misdirected financial activity. It was also recommended that the board establish a separate account to track money and financial activity for a new grant it began receiving in fiscal year 2001.
• The board does not request federal moneys in compliance with federal cash management directives. Some money was drawn too early and some too late. We recommended that the board request federal money on a monthly basis.
• The board did not comply with state policies for purchases exceeding $2,500.

Additional concerns identified the need for improved controls over incoming receipts and cash management practices and grant oversight controls.

Agency Background:

The Minnesota State Arts Board is composed of 11 private citizens appointed by the Governor to serve four-year terms. One member is appointed from each congressional district, with remaining members appointed at large. The board employs 20 staff under the supervision of the executive director, Mr. Robert C. Booker, who has served since August 1996.

Financial-Related Audit Reports address internal control weaknesses and noncompliance issues noted during our audits of state departments and agencies. The scope or our work at the Minnesota State Arts Board included overall financial management, grants, payroll, and capital expenditures for the Percent for Art in Public Places Program for the period from July 1, 1998, through June 30, 2001.