Office of the Legislative Auditor - Financial Audit Division

Report Summary
Emergency Medical Services Regulatory Board
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-29

Released October 23, 2008

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Conclusions

The Emergency Medical Services Regulatory Board (board) did not have adequate internal controls to safeguard receipts and sensitive assets. The board generally had adequate internal controls to ensure that it accurately paid employees and vendors in accordance with management’s authorization, properly oversaw and authorized financial transactions, produced reliable financial information, and complied with finance-related legal requirements. However, it did not adequately review certain transactions related to grants, travel expenses, and cell phone usage.

For the items tested, the board generally complied with finance-related legal requirements over its financial activities. However, it did not always deposit receipts daily, as required by statute, or ensure compliance with statutory provisions for paying the volunteer ambulance awards.

Key Findings

• The board did not adequately safeguard receipts, deposit them daily, as required by statute, or reconcile receipts recorded on its licensing system to deposits recorded in the state’s accounting system.
• The board provided grant funds to an organization without requiring sufficient documentation to satisfy the terms of the grant contract or determine whether the grant expenditures were eligible for reimbursement.
• The board paid longevity awards to recipients who did not submit applications before the statutory deadline.
• The board reimbursed some travel expenditures that did not comply with applicable policies.
• The board did not have adequate inventory control for its fixed assets and sensitive items.

Audit Objectives and Scope

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

Background

The Emergency Medical Services Regulatory Board provides direction for emergency medical care for the people of Minnesota through policy development, regulation, and education. The board accomplishes this objective through licensing of ambulance services and emergency medical technicians, approving and funding certain emergency medical services training, and funding eight regional organizations that provide emergency medical services. The board operates under Minnesota Statutes 2007, 144E.