Office of the Legislative Auditor - Financial Audit Division

Except for computer systems security, the Minnesota Department of Corrections’ correctional facilities at Oak Park Heights, Red Wing, and Stillwater generally had internal controls that ensured assets were safeguarded and transactions were properly recorded in the state’s accounting records. Also, the facilities generally complied with material finance-related legal requirements.

The audit report contains eight findings relating to internal control and legal compliance.

• The department’s overall computer security strategy for some systems lacked important components, such as documentation and monitoring for basic security procedures and standards for its three major computer systems.
• The department inconsistently charged expenses to the offender benefit account.
• The department inappropriately charged sales commissions and other administrative expenses to the canteen operations.
• The department did not prepare canteen profit and loss statements by facility and did not transfer canteen profits to each facility’s Social Welfare Fund.

Oak Park Heights, Red Wing, and Stillwater facilities

• Computer Systems Security Controls
• Payroll Expenditures
• Professional/Technical Services
• Offender Accounts
• Canteen Operations

Agency Background:

The Department of Corrections is a service and regulatory agency focused on holding offenders accountable and offering opportunities for change while restoring justice for victims and contributing to a safer Minnesota. The department operates ten correctional facilities for adults and juveniles. It has consolidated its facilities’ financial operations by creating regional business offices. Oak Park Heights, Red Wing, and Stillwater facilities have a combined regional business office located at the Stillwater facility.