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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Management Letter

Department of Transportation

Fiscal Year Ended June 30, 2002

Key Findings and Recommendations:

As a result of audit procedures performed by our office and the Department of Transportation (MnDOT) Office of Audit, we identified various weaknesses in internal control and instances of noncompliance. For each finding, we recommended that the department establish appropriate procedures or improve its oversight to ensure compliance with federal and state regulations. Areas of concern raised include:

  • MnDOT did not adequately segregate duties in its right of way division.
  • MnDOT did not ensure that certain transportation financial activity was accurately presented on the state's financial statements.
  • MnDOT did not ensure compliance with federal and state reporting requirements for the removal and disposition of hazardous building materials or bridge lead paint residue.
  • MnDOT did not follow or ensure compliance with certain contract permit requirements.
  • MnDOT should improve certain project oversight procedures. MnDOT Office of Audit repeated several issues from its previous audit and identified several new areas where departmental procedures were inadequate or ineffective.

Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally funded programs. The scope of work in individual agencies is limited. During the fiscal year 2002 audit, our work at the Department of Transportation focused on state highway construction expenditures, grants for airport improvement, and grants to local governments for road construction and maintenance. We also reviewed local bridge and transit project disbursements, rail service improvement loan balances, and highway user tax transfers. Finally, we reviewed two federally funded programs administered by the department to determine whether the department complied with certain federal requirements. Our work on the federal programs was performed in conjunction with the MnDOT Office of Audit.

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