Office of the Legislative Auditor - Financial Audit Division

Key Conclusions:

• The department processed transactions in accordance with state guidelines and its cooperative agreement with the federal government. In addition, it properly controlled the financing related to state emergency executive orders. However, we identified a concern regarding compliance with travel guidelines.

Key Finding:

• The department reimbursed one employee at an improper rate resulting in the employee receiving $856 more than allowed for mileage reimbursement.

Audit Period:
Fiscal Years 2001 – 2003

• Financial Management
• Employee Payroll
• Travel
• Rent and Utilities
• Repair and Maintenance
• Supplies and Equipment
• Tuition Reimbursement

The Department of Military Affairs consists of the military forces of the state of Minnesota, the Office of the Adjutant General, civilians employed for administrative and maintenance services, and state owned military installations. The department’s total state budget is about $36 million. The state budget is funded primarily through cooperative agreements with the federal government, which reimburses the state between 60 and 75 percent of allowable charges. The federal government provides additional direct funding for other military operations in the state, such as Camp Ripley operations.