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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Board of Government Innovation and Cooperation

July 1, 1997, through June 30, 2002

Overall Conclusion

The Board of Government Innovation and Cooperation properly authorized and accurately recorded grants and administrative expenditures in the state's accounting and payroll systems. For the items tested, the board complied with applicable finance-related legal provisions and policies governing its grants and administrative costs.

Due to state budget reductions, the Legislature repealed the board's statutory authority in the 2002 legislative session and eliminated the board's appropriation funding for fiscal year 2003 beginning July 1, 2002. As a result, we extended our audit work to include the close out of operations through June 30, 2002. The board was dissolved pursuant to Minn. Stat. Section 16B.38. The Commissioner of Administration entered into an agreement with the Department of Finance for the administration and closeout of the existing board grants. As of July 1, 2002, 20 grants totaling $114,275 were encumbered but not yet expended.

Agency Background

The Legislature created the Board of Government Innovation and Cooperation in 1993. The board's mission was to facilitate improved quality and delivery of services by local units of government. This was accomplished by providing grant incentives and removing state imposed barriers in providing effective service delivery. The board was composed of 11 members, including the State Auditor, the commissioners of Finance and Administration, two administrative law judges, and six legislators. Mr. Gary Pagel was the board's executive director through June 30, 2002.

Financial-Related Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our audit work at the Board of Government Innovation and Cooperation included grant and administrative expenditures for the period from July 1, 1997, through June 30, 2002.

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708