Office of the Legislative Auditor - Financial Audit Division

Report Summary
Office of the State Auditor
Internal Control and Compliance Audit

 

Financial Audit Division Report 09-20

Released May 29, 2009

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Conclusion

The Office of the State Auditor’s internal controls were generally adequate to ensure that it safeguarded assets, produced reliable financial information, and complied with finance-related legal requirements. For the items tested, the office complied with finance-related legal requirements over its financial activities. The office had one weakness in internal control, as noted below.

Finding

• The Office of the State Auditor did not establish sufficient internal controls to mitigate the risk created when it gave employees incompatible access to the state’s accounting system.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Legal Compliance	January 1, 2007, through January 31, 2009
Programs Audited
Appropriation Control Audit Practice Revenue Payroll and Travel Expenditures Selected Administrative Expenditures

 

Background

The Office of the State Auditor was established by Article V of the Minnesota Constitution and operates under Minnesota Statutes 2008, Chapter 6. The Office of the State Auditor is charged with overseeing funds spent by local governments in Minnesota. It performs audits of local governments’ financial statements and reviews documents, data, reports, and complaints reported to the office. The office is primarily funded through General Fund appropriations. The office deposits audit practice revenue to the General Fund; this revenue is not available to the office to fund its operations. Rebecca Otto was elected the State Auditor in November 2006 and took office on January 2, 2007.