Office of the Legislative Auditor - Financial Audit Division

Department of Corrections
Region 1 Correctional Facilities

 

Financial Audit Division Report 18-03

Released March 26, 2018

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Background

During fiscal years 2015, 2016, and 2017, the Department of Corrections paid approximately $226 million to operate its Region 1 correctional facilities, which included facilities in Stillwater, Oak Park Heights, and Red Wing.

The Office of the Legislative Auditor conducted this audit to determine whether the Department of Corrections’ Region 1 correctional facilities had adequate internal controls over its financial activities and complied with finance-related legal provisions.

Conclusion

The Department of Corrections’ Region 1 correctional facilities had generally adequate internal controls to ensure that it safeguarded revenues and other assets, accurately paid employees and vendors, created reliable financial information, and complied with finance-related legal requirements. For the items tested, the region complied with most finance-related legal requirements. However, we identified one legal compliance issue and one internal control deficiency.

Audit Findings

• The Department of Corrections did not properly charge counties for the cost of juveniles housed at the Red Wing facility.
• The Department of Corrections’ Region 1 business office did not accurately reconcile inmate trust account balances.