Office of the Legislative Auditor - Financial Audit Division

Report Summary
Council on Black Minnesotans
Internal Control and Compliance Audit

 

Financial Audit Division Report 08-30

Released October 30, 2008

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Conclusions

The Council on Black Minnesotans did not have adequate internal controls over its payroll process to ensure that it paid employees accurately, recorded payroll transactions properly, and complied with certain payroll policies and procedures.

Except for payroll, the council’s internal controls generally were adequate to ensure that it safeguarded receipts and other assets, accurately paid vendors in accordance with management’s authorization, produced reliable financial information, and complied with finance-related legal requirements.

For the items tested, the council generally complied with finance-related legal requirements over its financial activities, except for payroll.

Findings

• The council staff did not consistently review a key payroll report. In addition, staff did not review another key payroll report and did not control who had backup authorization to approve hours worked and leave taken.
• The council did not conduct performance reviews of the executive director, as required by statute.
• The council incurred expenses without adequate documentation to justify the public purpose of the expenses.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Compliance	July 1, 2005, through June 30, 2008
Programs Audited
Payroll and Other Administrative Expenditures Grant Activity

Background

The Council on Black Minnesotans exists to provide all individuals of African descent with equal access to state services and programs and to relate the needs of these individuals to the Legislature. The council receives General Fund appropriations for its operations. In fiscal year 2008, the council’s appropriations totaled $325,000. Additionally, the council has acted as a fiscal agent for the African American Tobacco Network, receiving two grants for tobacco cessation efforts since 2002; one grant totaled about $250,000, and another one received in 2006 and amended in 2008 totaled about $481,000.