Office of the Legislative Auditor - Financial Audit Division
Department of Finance
Financial Audit Division Report 05-19
Released March 17, 2005
Key Audit Conclusions:
We issued an unqualified audit opinion on the State of Minnesota's
basic financial statements for the year ended June 30, 2004.
We also prepared reports on the state's internal control and
compliance over financial reporting and its administration of
federal programs. These reports will be included in the Department
of Finance’s Financial and Compliance Report on Federally
Assisted Programs to be issued in March 2005.
As part of our audit, we gained an understanding of the internal controls
and organizational structure of the Treasury Division and its integration
into the Department of Finance. We
did not have any findings or recommendations pertaining to the Treasury Division.
The Department of Finance had some weaknesses in its process
for reporting capital equipment amounts in the financial statements.
As a result of an error in its process, the department made
adjustments of $3.7 million to correct initial equipment balances.
The department needs to improve its coordination with other
state agencies to ensure it reports correct capital equipment
The Department of Finance did not provide complete
and accurate preliminary budgetary information for the state's
The Department of Finance did not accurately measure and report
the state’s compensated absences liability for state workers.
The audit report contained three findings concerning controls over the financial
reporting process. The department resolved the three findings contained in our
last audit report.
The Department of Finance is responsible for preparing the state's basic financial
statements. The department also has certain statewide financial
management responsibilities relating to cash and debt management,
payroll, and administration of the state's accounting system.