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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit Report

Office of the State Treasurer

January 1, 2001, through December 31, 2002

Overall Audit Conclusion:

The Office of the State Treasurer properly safeguarded assets and accurately recorded receipts and expenditures in the state's accounting and payroll systems. The office was in compliance with applicable finance-related legal provisions with the exception of department head expense limits. We concluded that the office exceeded its department head expense limit by $1,655 from July 1, 2000, to January 6, 2003. We recommended that the Treasury Division of the Department of Finance (the division that assumed the Treasurer's duties as of January 6, 2003) follow executive branch policies and procedures when determining the appropriateness of similar expenditures in the future.

Agency Background:

The Office of the State Treasurer was abolished on January 6, 2003 as result of a constitutional amendment that was approved by the voters during the November 1998 election. Carol Johnson served as the last State Treasurer beginning in January 1999 and ending on January 6, 2003. An administrative order signed by the Governor and the Commissioner of Administration in December 2002 transferred the duties and responsibilities of the State Treasurer to the Department of Finance. The new Treasury Division will continue to provide banking services for most state agencies. These services include cash control, receipt processing, and warrant redemption. In addition, the division will continue to make debt service payments on outstanding general obligation bonds and collect various fees and assessments transmitted from the 87 counties.

Auditee Responses:

In her response to our audit report, former State Treasurer Carol Johnson disagreed with our audit finding. She believes providing coffee to staff should have been considered part of the Treasurer's Office operating budget. We also requested a response from the Department of Finance since the department has assumed responsibility for the treasury functions. The department agreed with our recommendation.

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