Information Technology Audit
Overall Audit Conclusions
The Minnesota Department of Revenue developed multiple layers of security to protect the integrity and confidentiality of individual income tax data. However, we found shortcomings in this security infrastructure that exposed tax data to an unnecessary risk of loss or misuse. The department needs to remedy the specific security weaknesses that we brought to its attention and strengthen its policies, procedures, and standards to reduce the possibility of additional weaknesses surfacing in the future.
This information technology audit assessed the adequacy of selected individual income tax processing controls. We designed our work to determine if the department had adequate controls to protect the integrity and confidentiality of individual income tax data. We also assessed the adequacy of controls over the depositing and recording of individual income tax revenues. Individual income taxes are the largest revenue source for the State of Minnesota. During fiscal year 2003, the $5.5 billion of individual income tax accounted for approximately 43 percent of all revenue in the State of Minnesota’s General Fund.