|Financial Audit Division||Released October 10, 2018|
The Department of Management and Budget (MMB) is responsible for several business systems that all state agencies use to manage day-to-day activities, such as accounting, budgeting, procurement, and human resources.
The Office of the Legislative Auditor (OLA) conducted this audit in response to questions about fiscal oversight of the state’s shared business systems. Shared business systems are extremely expensive, with long-term costs that often exceed the cost of government buildings.
OLA conducted this selected scope audit to determine whether MMB had adequate fiscal oversight controls over shared business systems. This audit also assessed compliance with significant finance-related legal requirements. OLA examined business system cost data going back to 1996. OLA also examined the funding model for shared business systems and tested expenditures incurred between July 2015 and February 2018.
MMB’s fiscal oversight controls over shared business systems were generally not adequate. For the period included in our audit scope, MMB complied with all significant legal requirements, including Minnesota statutes.
Finding 1. The Department of Management and Budget does not have a comprehensive funding plan for its shared business systems.