State Agricultural Society
Financial Statement Audit
Financial Audit Division Report 09-21
Released June 4, 2009
- The State Agricultural Society’s (society) financial statements for the two years ended October 31, 2008, were presented fairly in accordance with generally accepted accounting principles in all material respects.
- Generally, the society’s internal controls for selected financial operations were adequate, and the society complied with finance-related legal requirements. However, the fair had one control weakness that resulted in noncompliance with a bond covenant.
- The society implemented the prior audit recommendation by improving its monitoring of receipts from the Minnesota State Fair Foundation.
- The State Agricultural Society did not comply with a requirement in the bond covenant for its 2003 revenue bonds; it under-funded its debt service account by $107,161.
Audit Objectives and Scope
- To give an opinion on the society’s financial statements.
- To review internal control and compliance with financial-related legal requirements over material financial operations.
- To determine the status of a prior audit recommendation.
Audit Period: The two years ended October 31, 2008.
- Cash and Cash Equivalents
- Revenue Bond and Note Liabilities
- Entertainer Payouts and Other Expenses
- Capital Assets
- Ticket Sales
- Payroll Expense
The State Agricultural Society operates Minnesota’s annual state fair and maintains the state fairgrounds. The society had a profit of about $900,000 for the year ended October 31, 2008 and had total assets of nearly $55 million at year-end.