Minnesota Judicial Branch – Second Judicial District
Internal Controls and Compliance Audit
Financial Audit Division Report 11-23
Released October 20, 2011
The Second Judicial District, located in Ramsey County, did not have adequate internal controls to ensure that it safeguarded receipts and other assets, accurately paid employees and vendors in accordance with management’s authorizations, produced reliable financial information, and complied with finance-related legal requirements.
For the items tested, the Second Judicial District generally complied with finance-related legal requirements over its financial activities. However, the district had some instances of noncompliance related to receipts, payroll, and other administrative expenditures.
- The Second Judicial District did not adequately manage its financial risks or monitor the effectiveness of its internal controls.
- The Second Judicial District did not adequately restrict employees’ access to its business and data systems.
- The Second Judicial District did not review or document its review of some high-risk receipt transactions.
- The Second Judicial District did not review key payroll reports.
- The Second Judicial District did not have adequate controls over some of its administrative expenditures.
- The Second Judicial District did not have adequate controls over gift cards it purchased as incentives for drug and mental health treatment.
- The Second Judicial District did not adequately control its capital assets and sensitive items.
Audit Objectives and Scope
- Internal controls
|July 1, 2009, through March 31, 2011
- Payroll expenditures
- Other administrative expenditures
- Computer system access