Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Historical Society
Internal Controls and Compliance Audit

 

Financial Audit Division Report 12-20

Released October 4, 2012

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Conclusion

The Minnesota Historical Society’s internal controls were generally adequate to ensure that it safeguarded its state appropriated financial resources, accurately paid employees and vendors in accordance with management’s authorization, created reliable financial data, and complied with significant finance-related legal requirements, including requirements relevant to the Arts and Cultural Heritage Fund. However, the society had some control weaknesses related to contract awards for certain technical services and its outsourced payroll and human resources services.

For the items tested, the society generally complied with finance-related legal requirements, including requirements relevant to the Arts and Cultural Heritage Fund. However, the society had some instances of noncompliance in its grant activity and contract awards for certain technical services.

The society resolved the prior audit finding related to timely depositing and recording of state-owned historic sites’ admission receipts.¹

Audit Findings

• Some Minnesota Historical Society grants did not comply with all of the society’s grant policies.
• The Minnesota Historical Society did not have documentation to show how it considered technical criteria when awarding some contracts to vendors.
• The Minnesota Historical Society did not have a current contract for services related to its outsourced payroll and human resources service provider; the society also had not reviewed this service provider’s most recent internal control audit.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Legal Compliance	July 1, 2009, through December 31, 2011
Programs Audited
Selected Admission Fee Receipts Grant Expenditures Legacy Fund Expenditures	Payroll Expenditures Selected Administrative Expenditures

 

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¹ Office of the Legislative Auditor’s Financial Audit Division Report 02-25, Minnesota Historical Society, issued May 2, 2002.