Office of the Legislative Auditor - Financial Audit Division

Overall Conclusion:

In general, the commission accurately recorded its revenues and expenditures in the state’s accounting system and adequately safeguarded its fine and assessment revenues. However, we identified several concerns that need to be addressed by the commission.

Key Findings:

• The commission did not resolve a prior audit finding regarding the excess accumulation of funds in the Telephone Assistance Plan.  The program’s fund balance has grown to over $4 million.
• The commission needs to improve oversight of Telephone Assistance Plan eligibility determinations and ensure the accuracy of related revenues and expenditures.
• Three commission employees violated the state’s frequent flyer statutory provisions. 

Audit Scope:

Audit Period:
July 1, 2002, through June 30, 2005

• Fines and Assessments
• Administrative Expenditures
• Telephone Assistance Plan Revenues and Expenditures

The Public Utilities Commission is a regulatory agency with jurisdiction over electric, natural gas, and telecommunications utilities in Minnesota. Revenues and expenditures totaled $6.1 million and $5.6 million, respectively, for fiscal year 2005.