Office of the Legislative Auditor - Financial Audit Division

Conclusion:

The Office of Environmental Assistance’s (OEA) accounting procedures helped ensure that its financial transactions were accurately recorded in the accounting records and complied with management’s authorization. However, we identified the following concerns.

Key Findings:

• OEA did not consistently comply with state and internal purchasing guidelines.
• OEA administers an employee recognition program that does not comply with state guidelines and may have resulted in unreported income to employees.
• OEA did not document important monitoring activities for some competitive grants.
• OEA has not yet billed companies for certain pollution prevention fees due in fiscal year 2005 because the Department of Public Safety did not provide required billing information.

Audit Scope:

Audit Period:
July 1, 2001, to June 30, 2004

• Grants and Loans
• Payroll and Administrative Expenditures
• Pollution Prevention Fees

Agency Background:

OEA’s mission is to protect Minnesota’s environment through waste prevention and resource conservation. OEA is a nonregulatory agency that works to improve the environment through partnerships, technology transfer, technical assistance, education, research, and matching grants.

OEA received an appropriation of about $23.4 million in fiscal year 2004. It spent about $5.3 million on payroll and administrative expenditures and about $17.7 million on environmental assistance grants.