Office of the Legislative Auditor - Financial Audit Division
Governor's Residence Council
January 1, 1999, through December 31, 2002
The residence manager did not maintain a complete log of incoming gift receipts collected at the residence for the Governor's Residence Council. A log allows the Department of Administration's Financial Management and Reporting Division to verify that all gifts were promptly deposited and accurately recorded in the state's accounting system. In addition, the residence manager did not promptly forward donations, accumulating to $250 or more, to minimize the risk of loss or theft by holding the receipts. We recommended that the residence manager maintain a receipt log and forward receipts, accumulating to $250 or more, to the Financial Management and Reporting Division for deposit.
The Department of Administration did not follow state purchasing policies for the procurement of services in excess of $2,500 on behalf of the Governor's Residence Council. In one case, the department awarded a $4,425 project to a council member without evidence of competitively bidding the work, as required by the council's procedures. We recommended that the department follow the prescribed state competitive procurement process and the state's organizational conflicts of interest policy when obtaining goods or services on behalf of the council.
The Department of Administration's Plant Management Division did not maintain a complete inventory record of state assets located at the Governor's residence. Donated and purchased assets were not updated in the inventory records. Without an accurate record, periodic physical verification is ineffective and missing assets may go undetected. In fact, the department could not locate seven assets valued at $16,599, and the inventory records required adjustment. We recommended that the Plant Management Division improve internal control by maintaining complete and accurate inventory records and by tracking the movement and trade-in of assets.
The Governor's Residence Council was created in 1980 to develop and implement an overall restoration plan for the Governor's residence and surrounding grounds and to accept contributions. The council operates under the provisions of Minn. Stat. Section 16B.27 and consists of 19 members. The Department of Administration provides administrative support for the council while the Governor's Office provides for the staffing and resources for operating the residence.
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 Governor's Residence Council included gift revenues, expenditures, and assets from 1999 to 2002.