Office of the Legislative Auditor - Financial Audit Division

The Minnesota Department of Natural Resources had adequate internal controls over payroll, personnel transactions, and governmental grants and subsidies.  However, the department did not establish adequate controls over its revenues and computer systems. 

The department generally complied, with material finance-related legal provisions.  However, the department did not always deposit receipts promptly, as required by statute.  This report contains six findings relating to internal control and legal compliance.  Findings 2 and 6 contain issues from the prior audit that were not implemented. 

• The department did not promptly deposit receipts nor provide adequate safeguards to protect undeposited funds.
• The department did not document the review and authorization of adjustments recorded on its integrated revenue accounting system.
• The department did not establish adequate controls over revenue coding and fees charged.
• The department did not adequately limit employee access to the integrated revenue accounting system or establish good password control policies.
• The department did not adequately limit and monitor access to the state’s accounting system or its electronic licensing system.

Period Audited:
July 1, 2002, to June 30, 2007

• Personnel and Payroll Controls
• Revenue
• Governmental Grants and Subsidies
• Security Systems Access Controls

Agency Background:

The Minnesota Department of Natural Resources is a service and regulatory agency, responsible for protecting and managing the state's natural resources.  The department oversees both outdoor recreation opportunities and commercial uses of natural resources.  It has a broad range of activities and responsibilities, with over 3,400 employees located throughout the state.  The department organized its operations into eight operating divisions and four support bureaus and maintains regional offices throughout the state.