Office of the Legislative Auditor - Financial Audit Division

Report Summary
Board of Examiners for Nursing Home Administrators and the
Health Licensing Boards – Administrative Services Unit
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-26

Released October 23, 2008

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Conclusions

The Board of Examiners for Nursing Home Administrators generally had adequate internal controls to ensure that it safeguarded receipts and other assets, accurately paid employees and vendors in accordance with management’s authorization, produced reliable financial information, and complied with finance-related legal requirements.  For the items tested, the board complied with finance-related legal requirements over its financial activities.

The Health Licensing Boards – Administrative Services Unit (services unit) generally had adequate internal controls to ensure that it safeguarded receipts and other assets, accurately recorded financial transactions in accordance with managements’ authorization, produced reliable financial information, and complied with finance-related legal provisions on behalf of the health-related licensing boards and for its own operations.  For the items tested, the services unit complied with finance-related legal requirements regarding its financial management responsibilities.

Findings

• The Board of Examiners for Nursing Home Administrators did not have adequate inventory controls for its fixed assets and sensitive items. (Finding 1, page 9)
• The Health Licensing Boards – Administrative Services Unit did not properly identify the liability date for most of the expenditure transactions it recorded on behalf of the health-related licensing boards. (Finding 2, page 9)

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Compliance	July 1, 2004, through June 30, 2008
Programs Audited
Payroll License and Fee Revenue	Other Administrative Expenditure

Background

The Board of Examiners for Nursing Home Administrators licenses and regulates over 800 nursing home administrators in Minnesota. The board’s main responsibilities include setting qualifications for licensure, reviewing and acting on complaints against licensed administrators, and assisting consumers needing to solve problems about care provided in Minnesota nursing homes.

The board also served as fiscal agent for the Health Licensing Boards – Administrative Services Unit (services unit). The services unit provided centralized administrative and budget management support for all 17 health-related licensing boards.