Office of the Legislative Auditor - Financial Audit Division

On June 7, 2007, we separately issued an unqualified opinion on the State Agricultural Society’s financial statements for the two years ended October 31, 2006.

This is a related report on internal control over financial reporting and compliance with certain legal requirements. It contains one finding as described below.

• The State Agricultural Society did not adequately separate duties to ensure that $2.5 million in coliseum and grandstand ticket sales remitted by a contract vendor were adequately safeguarded.

Audit Period: The two years ended
October 31, 2006

Programs Audited:

• Cash and Cash Equivalents
• Capital Assets
• Revenue Bond Liabilities
• Ticket Sales
• Payroll Expense
• Entertainer Payouts and Other Expenses

Agency Background:

The State Agricultural Society operates Minnesota’s annual state fair and maintains the state fairgrounds.  It earned about $32 million in operating revenues during fiscal year 2006 and had total assets of nearly $47 million on October 31, 2006.