Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Management and Budget
Federal Compliance Audit

 

Financial Audit Division Report 11-14

Released May 6, 2011

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Conclusion

The Department of Management and Budget generally complied with and had controls to ensure compliance with certain provisions of laws, regulations, contracts, and grants applicable to the state’s administration of federal programs and the preparation of the Financial and Compliance Report on Federally Assisted Programs for fiscal year 2010. However, the department did not prepare the Schedule of Expenditures of Federal Awards in a timely manner and had a deficiency in the operation of a control to ensure accurate reporting of American Recovery and Reinvestment Act expenditures, as noted in the following Findings and Recommendations section.

Findings

• Prior Finding Partially Resolved: The Department of Management and Budget did not prepare the Schedule of Expenditures of Federal Awards in a timely manner.
• The Department of Management and Budget’s internal controls to ensure the complete and accurate reporting of funds related to the American Recovery and Reinvestment Act did not identify an error in one Section 1512 report submitted by the Minnesota Department of Health.

Audit Objective and Scope

The objective of our audit was to determine whether the Department of Management and Budget complied with federal program requirements in its oversight and administration of the state’s federal programs, including the general compliance requirements related to federal assistance and preparation of the Schedule of Expenditures of Federal Awards for fiscal year 2010. This audit is part of our broader federal Single Audit objective to obtain reasonable assurance about whether the State of Minnesota complied with the types of compliance requirements that are applicable to each of its federal programs.